The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1917-07-03
GERMANY CONTROLLED TRADE
AT HONG KONG, CHINA
Despite Heavy Turnover There Was
Ncant Profit.

| Lonuon, June t4-tSoflespOnuencel-
When the war began Kearly thirty per
cent OF the trade OF Hong Kong ex.
cluding Chinese native trade, was In
the hands Of Germans whose business
methods were considered by many to
be most progressive and worthy OF en-.
ulation. 1t now appears from the in
vestigation Of enemy firms that the
methods employed by the Teutons were,
despite the great volume OF trade, un-
sound and Improbable. according to
the periodical Truth. which publishes
an article based on a book just written
by Dennis X. Moss, a man OF long ex.
perience in Chinese trade and one OF
the liquidators enemy firms in Hong
Kong.
How Not 20 DO Business.
"The knowledge gained from the liz.
uidations is summed up by Mr.. Moss as
being, mainly, "a more complete knowl.
edge OF how not to do business" says
Truth. Instead Of the valuable les.
sons In trading methods which some
people expected. the merchants and &c.
countants In charge OF the windings.up
discovered practically nothing but evi.
dence-- --unmistakabe conclusive evi-
dence--of the unsoundness and unprof-
itableness of the lines on which the Ger
mans did business. Nearly thirty per
cent OF the trade of Hong Kong Tex.
cluding Chinese native trade) was in
their hands, but they did not make one.
twentieth OF the profits OF the British
indeed, more than one British firm there
makes for itself net profits equal TO
those OF all the German firms Jumped
together The great aim OF the latter
was TO have big turnover. no matter
whether there was any profit or not.
Millions But No Profits.
AS an instance OF this on the export
side, one firm had built up turnover
OF $4,O0O.O0O year in silk. but only
covered the cost of running the depart
ment All engaged In cut.throat com.
petition. not merely against British ri.
walls. but against one another. and even
in the handling of their own German
and Austrian manufactures. In the
main. however, the goods they sold to
the Chlnese-giving dangerously long
credits--oonsisted of Manchester and
Bradford goods. for. though the plums
0f that trade in Hong Kong We're retain
ed by British firms. the Germans had
captured a substantial portion OF II by
taking business-as their books showed
lon miserably inadequate terms, some.
times even at loss This had TEN.
porarily benefited Manchester and
Bradford merchants. but many of the
enemy firms were getting deeper and
deeper into state Of such chronic over
trading that very little would have been
needed TO upset the whole fabric and
bring about a crash which would have
seriously injured British mercantile
and banking interests
Add Dishonesty.
1t Is not at all surprising TO learn
that German firms at Hong Kong added
dishonesty to their recklessness In trad
ing The winding.up inquiries disclosed
the fact that the bulk OF their business
was actually done on capital borrowed
on what were virtually false pretenses
from London finance houses. Nor is Il
surprising to learn that merchants who
treated their own letters OF lien as so
many scarps OF paper deliberately vio-
lated the conditions under which they
were allowed to continue business in
Hong Kong for two or three months al.
ter the outbreak OF war"
The periodical says that Mr.. Moss
certainly shows that the methods Of
German traders ARE for the most part
methods 10 be avoided" and adds in
conclusions
"And Hong Kong is not the first place
from which we have had proofs that
German commerce. about the growth OF
which we used 20 hear so much. rested