July 29, 1897.
THE HONGKONG CHAMBER OF COMMERCE AND THE KWANGSI KEROSINE AND MÁTCH FARM,
Mr. R. Chatterton Wilcox, Secretary of the Hongkong General Chamber of Commerce, for wards us a copy of the following correspondence on the subject of the erection of a farm or syn- dicate to collect lekin on kerosina and matches in Kwangsi:
MESSRS, ARNHOLD, KARBERG & CO. TO THE CHAMBER.
CHINA OVERLAND TRADE REPORT.
89
and Tam-Kwok-Yan expectant Prefect, and | been directed to a notice issued by the Provin- Director of the Chief Likin Station, stating cial Authorities of Kwangsi announcing the that a merchant named Leung-Kwong-un and concession to a Chinese merchant (one Leung others have farmed out the Cho Likin Tax-i.e., Kwang Yan) and others the privilege of im- oil imported into the whole Province of Kwang named province for a period of twelve years on retained duty levied on matches and kerosine porting matches and kerosine oil into the above. si. The farmer is to pay to the Government of terms which constitute it a virtual monopoly Wuchow $10,000 per annum, which is to be paid and render the transit pass privilege to a large at four instaliments according to the four sea extent useless, while it cannot fail to severely sona The farmer is to be excepted from all hamper foreign trade on the West River. other charges whatever from the Government. The farmer will found a Company with a capi: yal of $300,000 to purchase korosine oil, and Hongkong, 16th July, 1897. misches from foreign countries and import Sir,-We herewith beg to draw, the atten- them into the Province of Kwangsi. With the tion of the Chamber to a notice which the exception of the import duty of five per cent. Chief Director of likin Offices of the province fad valorem levied by the Custom House, he is Kwangsi has issued conjointly with there free from all the local taxes and likin taxes surer. Judge, and Salt Commissioner of the same when the said articles are imported by him into province in the course of the 4th me of the any district or prefecture of the Province of Current Chinese year, granting to Chiese Kwangsi. If the officers in charge of all the merchant Leung Kuang Yuan and others the likin stations of Kwangsi have proved that the privilege of the importation of matches and said articles imported bear genuine trade marks kerosine oil into the province of Kwangsi on of the said Company, they will let the goods the following terms:-
pass without further charge of likin duty.
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1. The collection of the Cho Likin tax on all matches and kerosine oil imported into the province of Kwangsi is farmed out to the said Leung Kuang Yuan for a period of 12 years against the yearly payment of a sum of $10,000 to the Government of Wuchau. 2.--A Company with a capital of $300,000 is to be formed by the farmer to purchase kerosine oil and matches from foreigu merchants for importation into the pro- vince. These goods shall be marked with the Company's trade mark and are to be exempt from any other charges whatever, except the customary import duty of 5 per cent, ad valoren levied by the Chinese Im- perial Maritime Customs. 3. All other merchants who desire to import matches or kerosine oil into any district belonging to the province of Kwangsi shall have to pay to the said farmer or to his Company a tax of 30 cents for every two tons of kerosine oil, and $2 for every box of matches.
-After the payment of this tax the Com- pany's trade mark will be affixed to the goods and they will then be exempt from any other taxation.
The said articles are to be imported by the farmer into all the places belonging to Kwang- si for sale at low prices for the convenience of the people. Any other merchants who want to import. matches and kerosine oil into any district belonging to the Province of Kwang- si, are to pay to the farmer thirty cents as Cho lekin tax for every two tins of kerosine oil, according to the rules of Chap- Yik-Tong, farmer of Cho likin tax in the Province of Kwang-Tung, and two dollars for every box of matches according to the rule of the Custom House of Kwang-Tung. The farmer will give to the merchant a receipt and trade marks on receiving the Cho likin tax. Matches and kerosine oil will bear the
same trade mark.
If matches and kerosine oil bear no trade marks of the farmer they are said to be smuggled. Any person is allowed to seize the smuggled goods and take them to the farmer. The smuggled goods are to be confiscated. Seventy per cent of the proceeds of the sale of the smuggled goods is to be awarded to the person who seizes it and thirty per cent. to de- fray the public expenses of the local district. As to show justice the farmer will accept nothing of the proceeds of the sale of the smuggled goods. The said Company is to be established after the regulations of Chap-Yik- tong, Cho likin tax farmer in Kwang-Tung, for a term of twelve years. After the term has expired, arrangements will be made. farmer has sent in the regulations which they beg to inform the local officers of all the dis- tricts of Kwangsi. They further beg to ap point officers to look after the affairs of sung- gling and if persons evade the likin taxes on the aforesaid articles, they will be brought before the local officers to be severely dealt The notice issued consists of a renewed viola- with. As the prefect of Wuchow has taken tion against the treaties. It is highly detrimen- this thing into consideration and reported to the tal to the free development of trade on the Likin Office and it has met with the ap- West River, and grants advantages to a privi-proval of the Governor; we therefore issue this leged commercial society which almost amount to a monopoly.
5.The right is granted to the farmer or his Company to confiscate any matches or kerosine oil imported into the province of Kwangsi on which the forementioned taxes have not been paid by the owner, and which do not bear the trade mark of the Company, The above are the principal points of this notice of which we enclose a copy and we ven- ture to hope that your Committee will consider the procedure of the Provincial Authorities of Kwangsi and protest against the sume at the proper quarter.
The action of these authorities is inconsistent with their proclamation issued last January, granting the general use of transit passes in the province of Kwangsi. The opening of the West River to foreign trade and the transit pass question have only been settled for a short period and after a long and desperate struggle, in which your Chamber took such a prominent part, and we trust that your Committee will Tse strong pressure to prevent Chinese pro. vincial authorities from impairing the advan tages obtained after such large difficulties.-~ We have the honour, Sir, to be your obedient servants,
pp. ABNHOLD KARBERG & Co., (Signed) E. GOETZ. R. Chatterton Wilcox, Esq., Secretary, Hong-
kong Chamber of Commerce.
LIKIN TAX NOTICE.
The Chief Director of the Likin Office of the Province of Kwangsi, the Provincial Treasurer. the Provincial Judge, and the Salt Commissioner bare jointly issued a notice to the effect as follows:-
This is to notify that a despatch has been re- ceived from Isu-Ping-Man, Prefect of Wachow,
The
joint notification. You, people, must understand that the said Company is to pay to the Govern- ment $10,000 per annum to farm out the likin duties levied on imported matches and kerosine oil from foreign countries to be imported into all the districts of Kwangsi for sale. The aforesaid articles bearing the trade mark of the said Company pass every barrier without further payment of any lekin tax.
If other people want to import matches and kerosine oil into the Province of Kwangsi, they are to pay to the farmer thirty cents for every two tins of Kerosine oil and two dollars for every box of matches as the lokin tax, and the Company is to give them receipts and trade marks before they can import them into the in- terior for sale. If the aforesaid articles bear no trade marks of the farmer, they are said to be smuggled goods. The farmer is allowed to bring the offenders before the local officers for punishment. The farmer is not allowed to ex- er ise his power as to impose any tax other than the said Cho lekin tax. Obuy this fourth moon's notification.
THE CHAMBER TO H.B M. CONSUL, CANTON, Hongkong General Chamber of Commerce, Hongkong, 20th July. Sir, The attention of this Chamber has
Chinese Moon, has doubtless ere this come to The notice, issued in the course of the fourth
protested against this fresh violation of the your knowledge, and you will, probably, have
Treaties.
My Committee propose addressing Sir Claude MacDonald on the subject, probably by wire, but before doing so they would be glad to have your opinion on the case. Will you kindly favour the Chamber with an early reply, since, if action is to be taken, the Committee are of opinion that no time should be lost. I bave the honor to be, sir, your most obedient servant,
R. CHATTERTON WILCOX, Secretary.
Byron Brenan, Esq., U.M.G., H.B.M's Consul,
Canton.
THE CONSUL TO THE CHAMBER.
H. B. M's Consulate, Canton, 21st July, 1897. Sir, I beg to acknowledge the receipt of your letter of yesterday on the subject of the new tax on kerosine and matches in the province of Kwangsi. A Chinese syndicate farms the lax and pays for the privilege $10,000 a year.
As you point out, the terms of the concession virtually give the syndicate a-monopoly of the trade in these articles and to this extent it is undoubtedly a violation of the treaties. But apart from this, the tax itself is illegal: it is called a destination or terminal tax, but it is in reality an additional import duty, and the in- tention is that it should be collected from Chi- nese importers as soon as the oil is brought into the province, whatever its ultimate destination
may be.
their oil or matches by taking out transit No Chinese, of course, will venture to protect passes; and it is doubtful whether foreign mer- chants will attempt to nso transit passes, be- cause the only effect of doing so would be that the oil might escape the payment of the tax while on the journey, but the tax would never- the less be exacted from the Chinese purchaser as it passed into Chinese hands. Chinese would- be purchasers are so firmly convinced of this that they are deterred from entering into con- tracts to buy oil on these conditions and the labelled oil will be confiscated will probably threat contained in the proclamation that un-
never be put to a test for the simple reason that no Chinese will be found bold enough to make the experiment. The Chinese dealer knows from sad experience that confiscation and punishment are sure to follow; and that eventual reparation is extremely doubtful, so he wisely keeps to the safe side.
I have brought this matter to the notice of Her Majesty's Minister, so that, should your Chamber deem it necessary to address him on the subject, your communication will find His Excellency fully posted. As a question of tactics I would venture to doubt the expediency of attacking the procedure in Kwangsi when the same thing on a much larger scale is going on in Kwangtung. A similar tax is farmed by a syndicate in this province; and within the treaty port of Canton itself, where according to the tariff kerosine should reach the consumer after paying a duty of about nine cents per case, a further tax of 30 cents is imposed, and has been imposed for years, without any complaint having been made from any quarter.
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I judge from conversations I have had with the Canton officials that the Governor of Kwangsi is likely to withdraw the privileges granted to the syndicate; in fact, I have to-day received positive assurances on this subject. As soon as the notice cancelling the privilege isub icly proclaimed, I shall again communi- case with you.--I am, sir, your obedient sorvant,
(Signed) BYRON BRENAN.
Consul.