Ca. represents the largest foreign investment in the tobacco industry in China, so the Nanyang Brothers Tobacco Ca. represents the largest Chinese investment. This company was the product of one of the most capable business men and organizers China has yet produced, Mr. Kan Chin-nam, who died two years ago. Mr. Kan was a Cantonese, who had gone overseas for u livelihood, as is ual with Cantonese, He did business in Japan and ai nad ship Kan and his Ca., which was unable to survive be-of insufficient capital. Two year Mr. Kan and his brothers bought out their partners, and organized the Nanyang Brothers Tobacco Ca. which also was unable to get a start. By 1911, however, the company had begun to show profits which have continued ever since. The company was registered 1918 with the Ministry of Agriculture and Commerce as a limited company, capitalized at $5,000,000, Factories have been established at Shanghai, Hongkong, Canton and Pootung and other places.
Following upon the success of these two companies, many others have entered the field, the Tobacco Products Ca., Liggett & Meyers, and the Toa Tobacco Ca. being among' the principal foreign firms. During the political troubles after the May 30 affair, a boycott was organized against the products of the British-American Tobacco Ca., which had the effect of disorganizing the market and of bringing many small and poorly capitalized companies into the field. A list of new companies organi ed between May 30 and July 8 in Shanghai alone gives 28 names, some of which at the moment of compiling the list did not even have offices. It is impossible to say how many of these companies have survived the return to normal conditions, but as such things go in China, it is safe to believe that very few of them are doing business today.
One of the principal results of the development of the tobuceo industry in China has been the increase in the growth of tobacco expecially for use in Chinese pipes. Tobacco such as is town in Hunan, Kiangsi and Szechuan not referred to in this article, but rather to the tobacco grown of Virginia seeds in Shantung. an agricultural development of the first importance to China, The Heavy taxation The tobacco particularly suffered from illegal taxation, According, to the treaties between China and the countries whose nationals. import or manufacture cigarettes and tobacco pro-duets there should be an ad valorem tax upon entrance into the usual transit (ax, Now, throughout China, an illegal tax of 20 cent, additional to customs duties beings levied, most of it by local milliary commanders without regard to the Central Government. To obviate difficulties arising from taxation and to help the Chinese government, agree: ments have been entered into between the tobacco companies and the Chinese government covering the whole question, As late as 1925, the Chinese Government and the British-American Tobacco Go. entered into an agreement which stipulates the mount and the method of pay-taxes, Nevertheless, even in illescal levies on cigarettes are being made, which has the effect of making it difficult for the trade to conduct its business with any assurance of secitrity to its property
Text read from the printed page and cleaned; old type leaves the occasional error.