Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1921-05-06
ASKSFEDERAL
BACKINCFOR
EXPORT TRADE
Speaker Says American Firms
Are Handicapped In
+. Efforts Abroad
(Ry The Associated Press,

CLEVELAND. o.. May Il. The rr
gument presented some fifteen years ago
in support Of federal incorporation for
companies doing business entirely inside
pr the United States. also apply today
p support of federal interpretations doin;
usincss entirely outside II the Iuited
tates and between foreign countries and
e United States. j. Il. Powell Honorary
fmber Of the American Chamber of
mmercc told the National Foreign
sde Council today.
Since China is great undevelored
ntry". he said. land probably eur
htest potential trade field il is natural
At the attention Of Congress should ia
Puirected toward legislation calculated to
place our merchants in that field upon
an equal footing with our competitors.
Other nations which have preceded us in
China have already taken this action
wears ago and have obtained strong font
hold there.
IF Congress does not come to our as
sistance and enact legislation ~ place ~
on an even footing with our strong com
petitors. our trade out there i almost
certain To return 10 its urimportant po-
stion If before the war.
Our trade with China has not been
healthy for the reason that we buy more
from China than we sell ~ China. Chiaa
Is great market for machinery and for
practically all lines IF manufactured ar
ticles produce1 in America hut we can't
sell enough out there Ia even balance our
purchases Of Chipese raw products Wha:
further argument do we need for le=iS
lation that win erahle our manufacturers
TO 20 to Chia. and sell their products IN
nm even basis with the manufacturers ~
other nations:
AT present If an American manufac
turer desires 10 operate in China the onl,
method open To him at the present tim.
would be TO Incorporate under one II the
f4s states or under some territorial law
The point Is. he u bound down 10 state
sor territorial charter and none If d en-
are adapted to foreign trade purposes AMI
when enacted were not intended for that
purpose. He would probably end ~ Nv
selecting some state where the regulations
are lax. or liberal to say the least. and
as a result his company viii have no pres.
tige or standing because Of abuses which
charter selected In his business devel-
opment abroad he would b. forced to
compete with British. French. japanese
ana German companies. companies with
known regulations. known especially Nv
bankers and companies that have been
surrounded by all the Importance aud
prestige which these various foreign gov.
ernments have been able 10 bestow.
"All state interpretations are subject "a
the national income and excess profits
taxation measures II the national gov
ernment. The first handicap that this
brings is naturally in competing with Bri
tish. French. japanese ard German com.
panies which have been released bv their
home governments from the operation ~
home income tax and excess profits tax
alton. II you are raying heavy taxes M
all YOU are going a. have hard time
meeting the competition.
Chinese business men are friendly to-
ward Americans. But their friendship
naturally does not extend t. the length
that they desire a. pay taxes a. the 4
merican government at Washington Eri-
tish. japanese. French and German husi-
ness IN China was built az largely ~ firms
of these various natienalities through
the nse of local Chinese capital and ma
tive business skill The British Govern
mcnt IN itS far sighted trade plans has
felt that the hig thing was the trad,
that would keep her biz home Industries
running; not the small amount ~ revcru.
that might BE- ohttinrd W taxing her FOR
9 gn firms to death. America 80 the ~ ~
hand believes il is more important tu
obtain a few thousand of dollars by draw.
ing taxes from her companies away nut
in China. than IL would H. a. give them
certain advantages that would make nm
in hundreds II ways in the resulting
markets for our goods. It, penny
wise. pound foolish policy.
The China Trade Act as II PASSED
the House during the last session of
Congress and a. II still stands IN the
4 present Congress provides relief in thr
1.-TWO essential particulars.
I'm the larger field of the world poll
: ties. believe there II more than mere
. ~ trade IN this matter. ! believe II ~
intimately asso'iatcd with the future
general peace and pr"speritv if IN" rar
East-yes, and tie whole world too