Decision to Shut Down if Nanking's Taxation is Levied Aug, 10.
The Japanese Cotton Mill Owners Association has determined to close down all Japanese cotton mills in Shanghai on September 1, in the event that the excise instituted by the Nanking Government is collect here. A' commission of Japanese cotton mill managers, headed by formerly Consul-General here and now Managing Director of the Association, leaves for Japan to-day, to give full publicity to the steps which have been taken to force them to close low It is understood that the excise will place a burden on the cotton mills of approximately Tls. 10,000,000 which comes at a time that cotton yarns have a bad market and cotton loth cannot be shipped to interior ports. It is also explained that the coal tax will eventually cost the Japanese cotton mills approximately $200,000 a year, placing w further borden upon them. Faced with such conditions, the operators feel that they cannot continue to keep their nills open, The Japanese cotton mills employ approximately 70,000 Chinese Inbourers, being as a group thy largest employers of labour in this jccuntry. It is estimated that about 360,000 Chinese are dependent upon the mills for their living directly for indirectly. The decision to close the mills was therefore taken after the greatest consideration for the welfare of the Jabourers, but the management feels that they had no alternative in view of current Jeconomic conditions.
The Chinese owned cotton fam even in a worwe condition, They have been constantly losing take some protective steps rehabilitate them, The, excise absolutely wipes "them out They have petitioned te Nanking Government to assist them but without any definite results. The Nanking Government has promised them a subsidy for the en. couragement of native industry but no funds have been forthcoming.
The tobacco industry is working on a skeleton organization, none of the tobacco companies beinse able Lo operate successfully under present conditions. The closing of the B.A.T. fact only one of the many steps which have been taken by tobuceo companies to prevent themselves from becoming, bankrupted by taxation,
Text read from the printed page and cleaned; old type leaves the occasional error.