Evening star., 1932-02-09
BY ]. O. IRWIN.

! method Of racketeering employed by
gangsters against merchants in this
country except that 1t is being carried
| out on a mob scale, according to the
opinion expressed here today by high
United States Government official we'll
versed on conditions prevailing in that
Strife-torn city.
He said further that although the
invasion Of Shanghai by the japanese
troops surprised him. it was not done
until the so-called racketeers had goad-
ed the japanese government to ex-
| tremeS
| While Japan is a heavy loser from
an economic standpoint, this official
pointed out that Chinese merchants,
who sell Japanese goods as result
o. the boycott movement not only have
| suffered from the seizure of their goods
and paid heavy fines, but have endured
physical hardships after being captured
| and held for ransom for weeks in the
| Temple of Heaven. the headquarters
| Of the leading anti-Japanese society.
Thousands Lose Jobs.
| He declared further that the rack
eteers had operated without regard for
their fellowmen. causing thousands OF
Chinese to be thrown out of work in
: textile and shipping industries by their
| alleged illegal methods.
| Chinese students were the origi-
! majors of tie boycott, he said. but it
soon got beyond their control and into
the hands of the racketeerS. who oper-
ated without being molested by the
Chinese government. japanese goods
paid for by Chinese merchants, were
seized and then resold as British and
American made goods to other mer-
chants No financial accounts were
kept by the societies and he estimated
that thousands and thousands of dollars
were purloined by the racketeers in this
manner.
! AS far back as October. leading Chi
rese merchants in Shanghai sensed Sc
we're Japanese reprisalS, should the
racketeering be continued. he asserted
They held conferences with municipal
authorities in hope Of preventing fur
| ther inflammatory agitation and actlvl-
ties likely to lead to breach OF the
| peace
Reluctant to enlarge upon this state
ment, the government official referred
newspaper men to English language
newspapers published in Shanghai ano
arriving here yesterday for corrobora-
| tion of his views.
COTTODOTatlOn Dy dpciS.
From the October 81 issue OF the
! North China Herald. British news
paper, the following account of the in
| cident referred to is carried, in part
as follows:
| Eight Chinese merchants, who have
been held in the Temple OF Heaven pJ
| the anti-Japanese and National saliva.
ton Societies on charges OF buying ano
selling Japanese goods. are TO-DAY Tree
They were released yesterday afternoon
on shop security (bond) on the inter
vention of the authorities OF the
| Chinese municipality and the settle
| ment.
lone of the eight released yesterday
had been held prisoner since OCTOBER
| 6 and the news of release came te
him with such great surprise that ne
| being urgently desirouS OF freedom
picked up a cigarette packet, on Whlcf
was written an appeal to his family te
secure Immediately shop security
This was duly delivered and he was
released in the evening.
1.-The eight people formed the las'
| hatch released from the association
prison in the temple. According to a
responsible officer. altogether 26 people
| have been detained. One was hnec
with $4,000, one $4,000 and another
$4,000. He intimated that the release
! does mean that the association has
| changed it's attitude-merchants who
! smuggled japanese goods will be ar
rested as before. he said,
"Mr. Ii Lun-pu, manager OF piece
goods shop, was the first one locked uI
| in the Temple of Heaven. He was sale
to have imported japanese cotton yarn
and the purchase was discovered by the
local Cotton Yarn Business Association
Brought to the headquarters OF the
! Anti-Japanese and National SalVatior
| Association, he was asked to pay hne
of $4,000. AS the money was moi
forthcoming, he had been held in prison
since October g."
Dock Workers Quit.
Although the situation was becoming
| yery grave it was not until four Japa-
nese destroyers arrived in Shanghai
that rumors became current that tn:
japanese intended to invade Chapel
Both japanese and Chinese residents o
that district began moving out in zeal
of clashing of forces, which did moi
materialize until 80 days later.
Sighting the destroyers steaming tt
their berths caused thousands of Chi
nese wharf coolies to quit work on Jap
the anti-Japanese movement and came
after the men had been approached by
representatives of the Anti-JapaneSt
and National Salvation Society.
A short time later, according to the
, North China Herald. the first invasion
of International Settlement territory by
a search and seizure party of the Anti
japanese Association resulted.
large shipment of Japanese-owned pa
per was confiscated. The shipment was
later recovered at the Anti-Japanese
Association offices, located short dis
tance from the central police station
force being necessary as the peaceful
return of the paper was refused.
THE seizure occurred while Mr.. K
Mural, Japanese consul general In
| Chang Chun, mayor of Greater Shang-
hal, registering decided and emphatic
protest against anti-Japanese activitie.
and demanding better protection fol
the lives and property of his nationals,
the British newspaper said.
Dangerous Situation.
Detailing other incidents, in connec-
tion with the Settlement invasion, the
newspaper stated:
| while this affair was taking place
similar incidents in Chinese territory
were being placed before Gen. Chang
Chun by Mr.. Mural Pointing Out
that state of peace still prevailed be-
tween Japan and China, and that the
League at Geneva had requested botf
powers especially to refrain from over
acts while the Manchurian case is un.
der consideration, Mr.. Mural declared
that the attempted severance of eco
nomic relations was precipitating 6
dangerous situation.
"Intimidated by the Anti-Japanes'