Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-29
RY JAY HAYDEN.

~ SAKA. Japan.--The man OF
all others who embodies In
in his personality the free
~ and self-dependent indus
trial spirit of Osaka, upon
which rests the future of Japan, is
Santi Muto, president of the Kama
eafuchi Spinning Co, the largest and
most prosperous purely private en-
terprise in Japan. he also is a mem
her of Parliament and leader of a
newly organized Business Mems
Party that promises to play an i'm.
portant role in the political recon
struction that is expected to follow
tho first election under universal
manhood suffrage.
Mr.. Muto was educated in the
United States in the sos and he has
made many trips to America and
Europe, the latest of which was AS
delegate to the First International
Labor Conference at WaShington.- in
1919. The kanagafuchi mills, which
he operates, We're the first in Japan
to recognize the rights of labor by
establishing beautiful working con
" ditionS, limiting hours of work and
Increasing wages. The company also
was a pioneer among japanese tex
tile manufacturers in establishing
bra nch mills in Shanghai, to he OPP
Grated with Chinese labor. Certainly
there is no man better qualified by
experience than the directing genius
of the Kama gafuchi to discuss the pc
Clliar problems that Japan now
faces, and in the two hours that he
granted mo he answered every ques-
ton with perfect flankneSS.
ITO understand the purpose of tho
Business Mems Party" he Saif lit is
necessary to consider that Japan is
Of AT If Ia |
ism in which commercial and indus
trial enterprise was a very Subordi-
nate factor. II is a firmly fixed tradi-
ton of Japanese business to keep out
Of politics. Business mon of OSa ka gen
orally have regarded government AS
something to he feared and avoided.
In the old days they knew the feudal
war lords only as collectors of tribute,
who forced the merchants to pay
taxes. hut gave little if any service
in return. To take the side of one
feudal baron against another meant
only trouble. The lord favored was
ungrateful and the lord opposed at
tho first opportunity eXaCted ven
Rc3nCe.
Turning TO Politics.
Japanese business mon in recent
years have regarded the politicians
rs tho Successors of the feudal
hsronS. They have proceeded on the
theory that. by taking a hand i'll
politics they only would add to their
troubles. They have paid their taxes
snd for the most part have said
nothing.
THE business Mems Party is the
product of n growing realization that
the government is vital factor in
business and so far as Japan is
concerned. it is bound to become
more 60 AS time goes ON. We have.
for example. now pending in Parlia
ment. and certain to loo passed in
some form at the next session. a
bill designed to give labor unions a
legal status.
This bill provides specifically that
labor funds may be used for pc
ltical purposes. It's passage certain
~ will he followed by the creation
of Labor Party. numerically weak
at first. but which will increase in
Importance as time goes on. The
political interests of employer and
emplONe in Japan are not an
tagoniStic. In many respects I look
on the movement for leGalization of
labor unions with favor. | only
point TO it here as indicative of the
growing importance of government to
private industry
the cost of government entirely from
taxes, as you do in America. Some
thing like so per cent of government
expenditures are derived from other
SourceS-Such. for example. as the
tobacco and salt monopolieS. The
government runs the railroads. tele-
phones and telegraphs and many
other enterprises.
Would End MonopOlies.
TO my mind one of the things that
would do most to improve'the Japa-
nese government and to help private
industry is to remove the government
as busine IS competitor. The rail
roads of Japan never have shown
profit, principally because the bu-
reauCracy which runs them sees to
il that every cent that comes in is
spent. Government operation of rail
roads and like Industries inevitably
makes for extravaganza and it also
limits the range of private invest
ments. 1t reduces the strength of the
private financial structure Of the ma
ton.
The government of Japan has
been run almost exclusively by pro
fessional politicians. Their associa-
ton with business has been princi
pally by way of granting subsidies
and other favors If they needed the
support of a wealthy man and it could
be secured in no easier way, they gave
him title Of nobility.
My point Is that what Japanese
business men want is not special IA
Nors in the way Of subsidies. rebates
and empty honors. What we want is
a government run strictly on business
lines, as economically as possible:
government that does not invade the
field of private business. but which
gives us intelligent cooperation in de-
Veloping our enterprises both at home
and abroad
What is the greatest international
danger today" l asked of Mr. Muto.
Tariff walls and other obstacles in
the way of free trade" he said. I'VE
forget sometimes that other people
OF the world must eat and the effect
of tariff walls very often is to doom
other peoples to StarVe. Take for
example. the situation in the textile
industry with which l am connected
Japan cannot compete With China in
producing cotton cloth for, the
Chinese market. nor can we hope to
supply the American or European
trade. Our natural markets are to
the southward-the Philippine Is
lands, India, South Africa and the
Malay States. all of them dominions
OF some other country which engages
In the manufacture of cotton cloth.
I'VE always are faced with the
threat that these markets will be
closed against us for preferential
tariffs in favor of the mother coun.
tries. Such contingency not yet
has arisen. but 1t illustrates the way
IN which tariff laws may make much
IL q MI
the textile mills in Osaka should be
sl,,,. Gn.,.,, Lnca Of he GroCt ia,, nf