June 24, 1899.1

ultimate cost of the oil laid down at the con- sumer's door constitutes a most tempting in. dacement to the traders. Very little oil is burnt in Hoihow, where the population is small; | it is in the interior districts that most of the oil is consumed. When the lekin was only three cents per case the burden was little filt, but when suddenly the people are called upon to pay seventeen cents extra per case it becomes unbearable.

I hope that as the Consuls at Canton have taken the matter in hand as regards that port, this Island being under the jurisdiction of the Viceroy of the two Kwang, whatever may be the result obtained there may be extended also to this port-Yours, &c.,

Hoihow, 12th June, 1899.

E. P. S.

The following is a rough translation of the documents enclosed by our correspondent :- PETITION for permission to farm the lekin taxes on kerosine oil, cotton, and cotton yarn in Hoihow to defray the expeuses of forts and guns.

The humble petition of San Tak-tong, Fan Yeung-tong Ya Taung-tong, and Ku Tsang Ming-tong, Sheweth :-

Your petitioners beg to be allowed to farm the lekin taxes. The late farmers of lekin taxes levied or kerosine oil, cotton, and cotton yarn- Man Shai-loong. King Cheung-chau, Lam Shing-tung, and Lau Wing-hing-have resigned, on the ground that foreigners not only refused to pay any tekin taxes on kerosine oil, etc, imported by them, but also prevented the collection of any lekin tax from the purchasers of their goods, and they (the foreigners) also accused the farmers of squeezing the purchasers, who, being protected by them, paid no lekin taxes, so that the late farmers have lost much of their capital. As the late farmers, who paid a sum of $7,500 per annum to the Governin: at, have lost their capital. your petitioners beg to be allowed to pay to the Government a smaller rent, and that they may be allowed to levy lekin taxes under modified regulations, which have been framed in accordance with the trea- ties made between China and foreign Powers.

Your petitioners bag to enclose a copy of the new regulations, which they beg that you will communicate to the Commissioner of Customs

and the different Consals, with a request that they will inform the foreign merchants of the

same.

If an foreign merchant should interfere with the collection of lekin taxes from the purchasers of their goods your petitioners beg that they may be allowed to ask the protection of the Government.

Your petitioners beg that you will issue a notification informing the public of the arrange. ment and will give instructions to the Sub- Prefects and local Magistrates to enforce com- pliance with the new regulations.

Your petitioners ask that they may be allowed to pay the rent of the farm quarterly, like the late farmers, and that the period of the grant may be six years, during which no one shall be allowed to interfere with the interests of your petitioners, and that if your petitioners should lose their capital they may be allowed to tender. their resignation; also that upon the expiration of the said term, the rent having been duly paid, your petitioners may be granted the farm for a further period.

REPLY TO THE ABOVE.

As the collection of lekin taxes to defray the expenses of forts and guus is very important the revenue can hardly be diminished, but as the late farmers have lost their capital, the new farmers may as a special favour be allowed a deduction of $500 from the

amount paid annually to the Government by the late farmers. The new farmers will therefore have to pay $7,000 annually to the Government. The collection is to be granted to them for a term of six years, as re- quested, during which no one is to be allowed to interfere with their interests. They will not be allowed to collect taxes in excess of the scale and they are to pay the full amount agreed upon and are forbidden ́to tender

CHINA OVERLAND TRADE REPORT.

their resignation without reasonable ` cause They must commence their duties at onc and the Sub-Prefects and local Magistrates have all been instructed to issue notifications for the information of the public concerning the said lokin taxes They are to be allowed to effect the arrest of smugglers of the articles cevered by the farm and to confiscate the goods These lekin taxes are customarily levied, so that it is unnecessary to notify the Consuls. Of the ten regulations framed by the now farmers the 8th, 9th, and 10th require some modification, but the remainder are approved.

515

THE OPIUM FARM, THE NEW TERRITORY, AND THE

CUSTOMS...

TO THE EDITOR OF THE DAILY PRESS.

DEAR Sir,-If the information re farming of opium is true, then the most colossal job ever. perpetrated in, the history of Hongkong bas been committed. This state secret bogey has done so much harm in the past that it is was tackled. The Opium Farmer high time it has never done so well since the establishment of the Farm, for it is a well known fact that the Customs guards have been withdrawn for 1-Kerosine, cotton, and cotton yarn must

months and Kowloon frontier has been wide. be reported to the Lekin Office on importation, open. Competition is good for trade and an and after being examined, taxed, and marked they will be allowed to proceed to their destina-method of raising the revenue on opium. Per-,

excellent chance has been lost of trying another

tion,

REGULATIONS.

2. Any person failing to pay the lekin tax will be prosecuted.

3.--Though oihow is the principal seaport of Hainan cunning merchants may secretly import their goods through other channels, to prevent which the farmers are authorised to employ cruisers.

4-Merchants who purchase kerosine oil, etc., from foreign firms are also required to pay lekin according to the scale.

5-Merchants who secretly join foreigners for the purpose of smuggling will be prosecuted and severely dealt with.

6.-Goods subject to lekin, when sold, must be reported to the Lekin Office before they are forwarded to their destination.

7-Merchants purchasing kerosine, cotton, and cotton yarn from foreigu firms must pro. seed to the Lekin Office to pay the taxes and have the goods marked, failing which they will be prosecuted.

8. Should kerosine, cotton, or cotton yaru having paid the tax the owners of the goods be discovered in any place unmarked and not are to be arrested and prosecuted. Goods imported by foreign firms and having paid transit duty at the Custom House are exempted from this provision.

9.-Goods imported by foreign firms and sent to the interior under transit piss must be re- ported to the Laskin Office and their destination declared, so that the tax can be collected from the purchasers.

10. Vessels bringing kerosine, cotton. or cotton yarn to Kiungohow may be searched by the farmers, and the owners of goods who en deavour to evade payment of the lekin tax will be prosecuted and severely dealt with,

THE REMOVAL OF THE CUSTOM - STATIONS AND ITS EFFECTS.

TO THE EDITOR OF THE DAILY PR 488,"

27

Sir,-An abler pen than mine perhaps would put the question better. Mortals, however, we are told in the proverb, rush in where angels fear to tread, and I would like to ask "Old China Hand," in the event of the annexation of the whole of Bunon District and the Customs stations being removed from their present or projected positions, how much better would it be for the legitimate commerce of Hougkong? It seems to me fairly reasonable to suppose that the stations would be moved to the next advantageons position a few miles further on. If Hongkong held the mountain passes on one side the probability is that the "minions" of the Customs would be stationed near by to intercept trade and collect dues, as they have a perfect and indubitable right to do. China has, I suppose, still authority to collect revenue, in would Hongkong be benefited? To the ordin common with every other nation. How, then, ary man in the street you would be just where you were, only more so. With regard to au- bering fresh territory, is it quite established perly administer territory already that Hongkong has sufficient resources to pro- "leased p" Out of about 200 square miles it is an open question whether more than two thirds of it is'nt sterile. With the usual apologies.—I re- main. 20., đỏ,

OPEN DOOR.

Hongkong, 19th June, 1899.

sonally I am not in favour of farming Govern. ment taxes, believing as I do that the Govern- ment shirk their duty in not undertaking the collection of this tax themselves. A rival farmer in the New Territory, however, would have been the best thing from a public point of view.

By the way, I have been told on good authority that the establishment in Queen's Road, the Kowloon Customs Head Offloe, still collects taxes од opium bound. between points in British territory. It would be very interesting to know if these illegal taxes will figure as Customs revenue, sud also how much longer is the Government going to tolerate this so called head office. In no other place in the world would such proceed. ings be allowed for a moment.

While on this subject I would draw attention to the fact that so little attention is paid by the Hongkong Government to the concern mentioned above that they are still in possession of Laichikok, which 1 understand is a sort of

Why is this permitted P-I remain, yours Customs arsenal and storehouse for explosives. truly,

Hongkong, 19th June, 1899.

OBSERVER.

THE KEROSINE OIL MONOPOLY:

TO THE EDITOR OF THE DAILY PRES8.”

Sir, I have read with much interest your able article re the Chinse and their love for monopolies. Granting that monopolies in any shape or form are nothing but conspiracies to rob the many in the interests of the few. still, it does seem passing strange that one should cry out so loadly against the Chinese when our whole commercial system is based upon a gigantic system of monopolies. Not to mention the recent corner in wheat, which was the cause of the Milan riots, and of untold ́ -suffering to thousands, take the kerosine oil. industry itself. The Standard Oil Trust is pro.... bably the largest single business monopoly in the world. the value of its included interests being estimated at £29,600,000. Its influence is felt all over the world. The germ of this huge monopoly was a small petroleum refinery near Cleveland bought by one Rockfeller, a book- The concorn grew, and keeper in a store.

Standard Oil Com Was incorporated as the special legislation by judicions expenditure in pany. It is charged with having secured

various states. After a time the Company:oon- trolled every avenue of transportation, it was - able to shut off every competitor from either receiving supplies or shipping its products. the control of the same men, were incorporated New companies, nominally distinot, but under in other states of the Union. In 1882, the

Oil Trast, and the separate concerns were Companies were consolidated into the Standard merged into one gigantic business controlled by nine men, owning a majority of the stock,

having a monopoly of nearly all the oil lands in America, controlling legislative votes, forming a solid alliance with the railway and shipping interests, and determining to a gallon how much oil shall be produced and refined, and to a trao- tion of a cent what shall be its price. Such is the brief history of the kerosine oil industry, and there are many others like it, as for example the anthracite coal land of Pennsylvania, occupying an area of 270,000 mares, the rich owner

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