FORMOSAN SUGAR.
AN INTERESTING CONTROVERSY.
Two interesting letters have appeared in recent issues of the Economist dealing with the position of foreign sugar interests in Formosa The frat letter from Mr. H. W. Arthur was published in the Economist of the 25th March,
and is as follows :-
Bir-My attention has been called to the letter by Mr. Robert Young (Editor of the Japan Chronicle), under the heading "The Japanese Government and Foreign Enterprise," in your columns of Jazzy 28th, in which he deal with my defence of the attitude of the Japanese Government towards foreigners engaged in the sugar and tea industries in FOCLADSE
It ia sery ovident that Mr. Young he never visited the island of Formosa, and has relied ou second-hand and undependable information for his writings on the subject
and tea factory, upon which the Government is reported to havo spent Y.150,000, and which is now granted to this Tapauses company on a frie louse, it is difficult to see how this could be done. Without dwelling on this point, however, a word may be said regarding the two sugar undertakings in foreign hands adduced by Mr. Arthne as showing that the Government extends the same privileges to foreigners as to Japanese in the matter of graale, bonnites, monopolies and subsidies. In my last letter I remarked that while the Formosa Sugar and Development Company was unknown to me by that nato, Messrs. Bain & Co.'s sugar mill at Hozan was a well-known undertaking, which, as the firm was established in the Chinese era, could not well have been refeed
AL
the
grant of nonopoly district without
directly exposing the Japanese to a obargo of diseriniuntion. In reply, Mr. Arthur says that the Formu Sagur and Development Company, Limital, was rus
ogistored on July 18,
and that its frat annual report was issued hefore Bain & Co.'s Hogan Mill was in existence.
He also says that in order to
to put the compans on a footing of
Japancas equality with the Diet in Japan pissed a
Go
of
In referring to the two British-owned agar milis, namely, The Formosa Sugar and De. Yelopment Company, Limited, and Messrs. Buin wirich the company a scripted by the &Co.'s Hozan 31üls, he say: "I must con- fess that I have never heard of the former coa pany, but the latter is a well-known undertaking, and though it has fallen in with the Japanese methods, and been granted on monopoly
abort tab as Ba district, it nart bo romen was established in the Chinese wra, ast the Japanese could not well refusean application toy a monopoly district in this case without exposing themselves ton charge of discrimination. What is very certain is that ir later years no sucli application would have been entertained by the Gerornment-General unless it was porteelly clear that the capital was mainly Japanese or under Japanese control."
I may interest Mr. Young and your readers to learn that the Fornos Sugar and Development Company, Limited, was register ed on January 18th, 1908, and that its first annual report and account for the year ended June 30th, 1909, were issold before ever Bain. A Co.'s Hozan Mill yos in existence. The latter will was, in fact, only completed in Jaanary, 1910.
In refutation of Mr. Young's ill-advisa
THE HONGKONG DAILY PRESS, MONDAY, JUNG 5TH, 1911.
BY ROYAL WARRANT
· PURVEYORS TO.
H.M. KING GEORGE V.
JOHN BEGG'S SCOTCH
FAMOUS
WHISKY.
VISITORS AT HOTELS.
Mr H. Ada
HONGKONG HOTEL.
factories law, by
Government ne scourity for the
payment the sagar-consumption tax in Formosa. By h plies that as another British company uncounseled plication, therefors, Mr. Arthur's argumout is with Messrs. Bain & Co. has bónn granted the some privileges as Japanese companies in the island, no charge of disgrimination can be valid.
fend that in employing this argument Mr. Arthur is somewhat ingenuous. Since writing my previous letter I have usila inquiries concerning tho Formosa sugor and Development Compay, Limited. Ass result, I find that the capital of this company is principally held by Bain & Company's mill, so-called, at Hezas, and that the two quills are, to all intents and purpose, an- dertakings carried on by Bain & Company, Thus the distinction between these two compar fan,
, upon which dir, a thar lays so much stres, is ne distinction at all. Furthermore, I learn that Mr. If. W. Arthur was, and presumably still is, a partner in Bain & Company, so that thess facts must have been perfectly well known to him. As to this special law to which he refr W. C. Drew
Mr N. H. Davidson fors, I find that two OF three FORT
2
uuneeessary.
The fact secluded
Mr. 1. 1. Andrew Air F. Barendt Mr. Bechingalo Mr F. Baunet Mr S, M. Brown Mr A. C. Brunt Mr P. F. Chilvers Mr D E. Clark Mr. W. E. Clarke br. H. L. Condon
in Camdha Mrs. Delgeish
ME. J. W. Eanies
Me. andre. 11.
Ehrenfels
E. S. Elverson Mir F. Eurom Mea Farham
Mr. II. G. Fisher
statement as is the antagonism of the Formosan ago Bill was passed, or an amendment in Mr W. A. Edgar Governmen) General towards foreign enterprise wiel in an already existing law, anthorising in the island, and as illustrating the perfectly the deposit of scrip of foreign companies correct and friendly attitude towards the Fer-security for payment of consumption - mesa Sagarand Development Company, Limited, contre which could scarcely have been avoided I may na wall tention the following facts -
ones pormission had been giren for tho forma When the Formon Sugar and Busdüpment tion of the two companies of Moses. Bain & Company, Limited, was about to his fated, Company, letter was obtained from the then Civil-Admin-
Further commeat is istrator of Permess to the effect that the com.
that Form was specifically would receive the same treatment as any from the operation of the Foreign Land pany Japanese company in Forriosa.
Ownership Bill, passed in the last session of the Japanese Diet, notwithstanding that this messure was itself bodged by so many restric. Camilto tions and conditions as to pake it practically str. G. Harrison
J. C. by which the company's sorip is accepted by the worthless as a concessiou, showerment. F. Hessen
clearly Mir Harrison Government as security for the payout of the the policy adopted by the Japanese sugar-consumption tax in Formosa,
2. In order to put the company on a footing of equality with the Japastesto factories in the island, the Diet in Japan pussed a special law.
3. No foreign scrip whatsoever with the exception of Cloverement heads have ever betu so accepted.
•
4. The company's revip was originally accept ed by the Governount at 80 per cent of taco value.
5. It has this year been pazotted that they are now taken at 90 per cent. of the value.
6. That the company has never in any way been discriminated against by the Jupunem Government, but has received just treatment as promised by the Civil Admisistrator.
Is better proof wanted that British enterprise
|
Mr J. Forrester Denman Faller Me H. Garrow Mr. V. Goulbourn air M, Gonzales Gonzaley
in its endeavour to check foreign enterprise in Miss A. U. Herrin the territory under its control It is, I regret.
to say, not the only indication that the sense of reciprocity is as yet very imperfectly devoloped in Japanese national policy.—I rouait, Yours faithfully,
ROBERT YOUNG,
Editor, Japan Chronicle. National Liboral Club, March 30, 1911.
WEATHER REPORT.
fallon considerably in E. Japan and risen moto- On the 4th at 12.05 p.-The barometer has In the face of the facts just mentioned, it isrately orer W. Japan and China.
is waliomed in Formo
ridiculous to charge the Japanese Government
with discrimination,
As to thestens being taken by the Japanese
in the tea industry, I need only say that they aro on a par with those applied to the develop ment of the
sugar
industry. The British and Aruericans interested in tho ted trade caunot claim to have a monopoly of it, nor to the way in which should it be condnated, and there is certainly nothing in the treaties to prevent the Japanese from adopting progres sire methods in the industry, nor to look for now markets,
If the British and American merchants fest that the trade, us at present eonineted, canact prevail againt modern methods (which, by the way, are practised by our own planters in Indin, it is for them to fall in with the Japaness matheds, as has been successfally done in the and apply to the Formosan sugar industry Government General for suitable allotments of land to be applied to the cultivation of the tea plant, and such other assistance as has been
Japanous tea company. given to the J This has been asked for, and been refur. d. it is premature to compisis of discrimination.
Until
H. W. ARTION.
part
of.
The depression lying over the Yellow Sea yesterday morning, has reached the Eastern
the Sea of Japan. Pressure romains high over the Pacific to the Eastwards of the Roning, and in slight excess of the normal over the Chias Seo.
Light to moderate S. monsoon may be expect ed over the Chinu Sea.
Hongkong rainfall for the 24 hours ending at 10a.m. to-day, 0.01 inches.
P
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The forecast for the 54 hours ending at noon MT. Hood to-day is as follows →→ Hongkong & Neigkhonthood.......(*) Formosa Channel
Same as No. 1. South coast of China between game as No. 1.
Hongkong and Lamocks, South coast of Chinn between Sanie as No. 1,
Hongkong and Hainan...
*S.D, winds, light to moderate'; showory,
fino intervals.
BRITAIN'S BUDGET.
CHANCELLOR FORESHADOWS A YEAR OF EXCEPTIONAL EXPENDIIVRE,
Mir E. 9. Kabol afr. John Lennox" Mina Loprito
Mr H. Linuell Mr G. W. McEwen
Mr McHenry
Capt. & Mrs. Merleev
Miss Morrison
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Capt. and Mrs. C
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Air J. N. Varela Miss M. S. Wilson
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Me P. W. L. Nanniaga
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Steward and child
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Kirasolaaz Private Hotku,
Most of the British and American tea firma How doing business in Formosa worn establisind in the Chise or, and, to quote Mr. Yeang's own words, the Japanese could not well refuse an application for a mobopoly district in this case without exposing themselves to à charge of discrimination."Yours faithfully,
SS. Kamo Maru, Port Said. February 16th, 1911, The following reply by Mr Young appeared in the Booremtal of April 1st-
Sir-Some weeks ago the Economist in mertol a letter from Mr. H. W. Artear, of Formosa, traversing certain statements made by you Yokohama errespondent in eri- ticism of the attitude taken up by the
Mr&Mrs F.M. Crawford Japanese Government towards foreign en terprise in Formoss. Mr. Arthur
The Chancellor estimated the total expandir.MD. B. Donnelly not only
ture
Mr C. L. Goskam £181,284.000 and the revenis at defended the extraordinary methods by which the sugar industry in Fermon has been force £181,716,000, leaving a surplus of £432,000. Mr J. Grabara into an nehealthy activity, and whieh ny had while some twelve millions sterling had teen Mr. & Mrs. C.E. Harvey the effect of more than doubling the cost devoted to refluction of debt. The budget of Dr. Hobenu
Mr. H. Hoffman enormous revenue,r. H. Koch of to Japanese consumers, and decreas- 1909-10 had produced an
soger
10 which
growing. ing its consumption from 13 kin to 10
from Mr & Mrs 7.P. Lambert
had kin per houd, int he expressed approval injuring tho copatry this budget
giren renewed hope and cor.fidence.
The Budget was introduced in the House of Commous on the 16th it. No fresh taxuilo is imposed. In bis Kudget statement, Mr. Lloyd Georgo said the comblued surpluses from the years 1909-90 and 1910-11 amounted to £5,607 7,000. The revenue from sugar and im. alone was below the estimate. This was dos to poor harvests and increased prices affecting consumption. He proposed to take from the surplas one and a half millions for Baratoria, a Comdr. F. Acton, B.N. similar amount for the development fund, a ra F. Acton & Blaid quarter of a million for the Uganda Railer. E. Arndt harbour, and water supply loan, and spply Mr & Mrs Aucolt the remainder to the redemption of debt, Mr. Mr. H. Bennett Lloyd George utaonuced that Members of Mr. F. Eevingtos Parliament would be paid salaries of £400 a Dr. & Mrs RW. Brown year. Ministers would be excluded, The in Mr. Cocker novation would eat aquarter of million
at
was
Far
of the application of such methods to the The trade larometer was sot fair. The pro- tea industry. He furthermore adduced two cases in which sagar mills had been estab-posed alteration in the cocoa and chocolate Kishod by foreigners, and granted the same duties removing their profestive character, suid privileges us to bounties and protection enjoyed Mr. Lloyd by Japanese, as evidence that foreigners canidge would involve a loss of
enjoy the benefits of the protective system. One of these undertakinge, according to Mr. Arthur, was the Formes Sugar and Develop ment Company, Limited, and the other Messrs. Bein & Co.'s Hozan Mill
I ventured to intercens in the discussion,
In
other small alterations, the surplus would be £337,000. He eati mated this venue from tea at £6,300,000, an increase of £371,000. It was a
2 year of excep. The Chancellor farther. tional exponditure. anticipated a substantiul reduction in 1913.
and obiktren
Mr. & Mrs. a. C. Logan
Dr. & Mrs Macfarlano
Mr. J. F. MaegTSZOS Mr. & Mrs. L.D. Mardel Master Mandel Mr E, J. MeNalty Mr. K. S.
S. Morrison
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Mr Ottoioainger
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Williams Mr. J. W. Wilson
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ANGRIN, German str., 1.005. Chr. Kumpel, 21st May Bougitok 14th Rica and Teak- Butterfiol & Swire
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Kemerio. British str., 4,006. G. B. McGill, 30th Maynila 26th May, ------ The Bauk Lino,
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May 9th-Denvorlich Buronga. 12th- Mr. Austen Chamberlain opposed the payment Ernest Simons, Ghaze, Jescrie, Prinz Editel particularly with reference to the tea industry, of members absolutely and said that Parlia Friedrich, Teeskai, Arcadiz. 16th-- Glenlogan. and gave some details of the policy adopted by mast's unpaid service to the people had been the Miyazaki Maru, Soys Haru, Alenia. 19th the Japanese Government in granting lands making of the country. It members were paid, Borneo, Hellae, Menelaus, Nippon, Sikh, Silvio, and subsidies and guaranteeing payment of he added, why not county and district cap interest on capital to a new Japanese company, cillors and every other local body Mr. Cham-Siora, Wakast Muru, Yangter. 23rd - Boslarig berlain heartily approved of the Chancellor's Attano Marui, Palermo, Pembrokeshire, Tydens, Brisgavia, Rheinfels. 26th-Calchas, Dambea, The result of which would inevitably be to drive out the British and American merchants cocoa proposals,
Yorck, Warrior, 30th-Homorganshire, Hele from the trude they had built
ne, Rickmers, Indien, Reigate, Senegambia rejoinder which appears in the concret of LATEST STEAMER MOVEMENTS. Spezia, Baron Minto. June 2nd-Bellerophon March 25th. I okserve that Mr. Arthar makes
Bencleuch, Bentary, Deaculion, Babinga, Pal- no attempt to controvert the facts stated The 11-A. Lánis str. „Arcadis left. Shaughní ma, Patroctus, Sezonia, Syria, Tourans, In- with regard to the cisvrimination against on the 2nd instant p.m., and may be expected drasco. foreigners in the Formose, tea industry which hero to-morrow sm have recently been made thesabjoot of diplomatic protest, though he seems to believe that it would be possible for foreigners to obtain, for the stking, a free lease of Government plantation, here on the 7th Instant, at about 9 am, just as in the case of the Japanese, company and will leave probably for Shanghai on the Bih Jentioned. As there is only one such plantation in stant, at daylight.
Co
The P. & O. 6. N. Co.
str. Arcadia left
Singapore for this port on the 3rd instant, at 7, with the onward English Mails, and is
ARHIVALS AT HOME.
June 2nd→ Kisluck, Prins Ludwige
LANGO LAW, British str., 3,774, R. E. Holleit, 1st June-Gunymas 1st May-Eng Hok Feng 9.8. Co.
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Co. PHDUMPENH, British 1.065, Jas. H. Scott, 27th May-Saigon 23rd May, Rice and General-Chinese,
PITBANULOK, German str., 1.254, D. Reimers, 29th May Bongkick 20th and Swatów 20th General Melckers & Co. PETCHABTEI, German str.. 1.373, O. Gowowjob, 31st May-Bangkok 24th May, Rice and Meal Order,
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KUMERIC
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G. B, M&GIU.
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