The system of taxation as intro duced and practised by the Chinese is greatly disturbing the normal conditions of economical life, trade and industry in the railway zone.
Grain, for instance is charged in the Heilungkiang province 2.2 per cent. of its value every time it changes hands. 5 cents per dollar are levied when the grain leaves Tsitsihar station, ete.
The taxes on_ cattle are most exorbitant. At Hailar, Djalantun, Horhonte, Tsitsihar, and especially at Manchuria station the Chinese authorities are introducing an endless list of taxes to be paid every time cattle are taken to pasture or to the slaughter house. Before the cattle reach the Manchuria slaughter house $8 per head have to be paid to the Lubenfu barrier, after arrival from Mongolia; 5 per cent. ad valorem per head Chinese excise dues; import. duties by the Chinese customs, and a_ special Chinese tax for entering the slaughter house. Thus every ox representing a value from $40 to $60 ig taxed by the Chinese $13-14 which makes $1.50 per each pood (36 Engl. pounds) of meat.
These conditions make it quite evident that the Manchurian cattle trade with the Maritime Province—i.e., the exportation of beef by, the C.E-R. into Vladivostok cannot compete with a cheaper supply by sea from Korea and Tsingtao in spite of the reduction of the tariff by the C.E.R.
It seems a curious coincidence, but whenever the. C-E.R. finds it necessary to lower a tariff in order to facilitate transportation, the Chinese authorities respond immediately by introducing new taxes or raising old ones so that the tariff policy of the Railway toward¢ encouragement of transportation proves in vain.
The Chinese seem to be inexhaustible in inventing new taxes. They are levied on furs, fish, eggs, hay, minerals; and the trouble is, that they are levied on different grounds and by different authorities, both military and civil.
In Harbin a spirit. factory had to pay a tax on its first plant of 400 taels and 200 taels on each successive plant. Up to 25 per cent. of the value of the spirit is collected besides, for different dues and taxes. This same concern is already paying about 50,000 gold roubles original taxes to the Railway administration. Naturally the factory will have to close.
To quote the annual Report submitted to the last shareholders Meeting: "The most lamentable consequences are to be feared from such a policy pursued by the Chinese. Their taxes are excessive
Text read from the printed page and cleaned; old type leaves the occasional error.