The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-05-08
PLACE AMERICANS
ON EQUAL FOOTING
Legislation Needed to Give Merchants
Of This Country Chance With
Competitors.

Il CLEVELAND, Ohio, May THE
argument presented some fifteen years
ago In support of federal incorporation
for companies doing business entirely
inside of the United States, also apply
today in support of federal incorpora-
tlon for companies doing business
entirely outside of the United States
and between foreign counties and the
United States, j. b. Powell, honorary
member Of the American Chamber OF
Commerce told the national foreign
trade council yesterday.
Since China is a great undeveloped
country" he said. land probably our
greatest potential trade field. it is nat
ural that the attention of congress
should be directed toward Legislation
calculated to place our merchants in
that field upon an equal footing with
our competitors. other nations which
taken this action years ago and have
obtained strong fqpthold there.
IF congress does not come to our
assistance and enact legislation to
place us on an even footing without
strong competitors our trade out there
Is almost certain to return to it's un-
our trade with China has not been
healthy for the reason that we buy
more from China than we sell to
China. China is n great market for
machinery and for practically all lines
OF manufactured articles produced in
America, but we can't sell enough out
there to even balance our purchases
of Chinese raw products. What fur
ther argument do we need for legisla
tlon that will enable our manufactur-
ers TO go to China, and sell their pro-
ducts on an even basis with the manu-
facturers of other nations?
at present IL an American manu-
facturer desires to operate in China
the only method open to him at the
present time would be to incorporate
under one OF the forty-eight states or
under some territorial law The point
Is, ho Is bound down to a state or ter
ritorlal charter and none OF them are
adapted TO foreign trade purposes and
when enacted were not intended for
That purpose. He would probably end
up by selecting some state where the
regulations are lax, liberal to say the
leest. and as a result his company
VIII have no prestige or standing be-
cause of abuses which have been per-
petrated under the state charter Sc
tectcd. In his business development
abroad he would be forced 10 compete
with British, French, Japanese and
German companies. companies with
known regulations known especially
BY bankers and companies that have
been surrounded by all the Importance
and prestige which these various for
eisn governments have been able to
bestom.
"Ail state interpretations are sub
6ect 10 the national income and excess
profi's taxation measures of the ma
upnal government The first handi-
cap that this brings is naturally in
competing with British. French Jap
snesc and German companies which
hive been released by their home gov
ernuents from the opera don of home
.sscome and excess profits taxation If
you are paying heavy taxes and your
fnur big competitors across the street
do not pay any taxes at all YOU are
roing TO have hard time meeting the
competition.
Chinese business men are friendly
toward Americans. But their friend
length that they desire to pay taxes 20
the American government at Washing
ton. British, Japanese French and Ger
man business In China was built up
largely by firms OF various nationali-
ties through use of local Chinese capt.
tnl and native business skill. The
British government i'm it's far sighted
trade plans has felt that the big thing
was the trade that would keep her big
home industries running: not the
email amount OF revenue that might be
obtained by taxing her foreign firms
10 death. America on the other hand
believes 1t is more important to OBJ
tain few thousand dollars by draw
Ing taxes from her companies away
out In China, than 1t would be~ to give
them certain advantages that would
make up In hundreds OF ways in the
resulting markets for our goods. It's
n penny wise. pound foolish policy:
The China trade act as 1t passed
the house during the last session of
congress and as 1t still stands in the
present congress provides relief in the
two essentian particulars
I'm the larger field Of world poll
tics, I believe there is more than mere
trade In this matter. / believe 1t is
Intimately associated with the future
general peace and prosperity of the
Far East-yes, and the whole world
tool"