DECEMlitk 1, 1912.J 



THE INDIA RUBBER WORLD 



155 



THE SETTLEMENT AND TAXATION OF AMERICAN 

 FIRMS IN GERMANY. 



IN dealing with the above subject in the Bulletin of the 

 •^ American Association of Commerce and Trade, Berlin, Dr. 

 Paul Marcuse of that city points out that foreign persons 

 over a year resident in Germany, or engaged in doing business 

 there are subject to the same taxes as German subjects. These 

 taxes come under four heads — income tax; tax on personal 

 property and capital; real estate tax; and tax levied on all 

 persons personally engaged in business (Gevverbe Steuer). 



The chief point at issue being that of "doing business," it is 

 of interest to note that, in Dr. Marcuse's opinion, if an Amer- 

 ican tirm sells to or buys in Germany; orders being taken by 

 mail, wire, traveling salesman and canvassers, it is not there- 

 by "doing business" in the sense of the law. Apparently the 

 running by the American firm of a place in Germany, where 

 any business forming part of the home trade is done, brings 

 it within the law. 



At the same time, the appointment of an agent or repre- 

 sentation by a commission merchant, does not necessarily con- 

 stitute doing business. 



Two typical cases are referred to. In the one a big import- 

 ing house, which represents many foreign firms, in various 

 trades is an independent business. In the other, the salaried 

 representative of a single firm is to be considered as an em- 

 ploye who runs the foreign firm's establishment. While these 

 two cases are in themselves perfectly clear, it will often be 

 rather doubtful whether the office is that of a German com- 

 mission merchant or of a foreign firm ; for the reason that, as 

 a rule, business men choose the most convenient form of rep- 

 resentation, without worrying about the legal side of the ques- 

 tion. So it is often very hard to decide whether the foreign 

 firm or its representative is doing business. 



The keeping of a large sample room does not constitute 

 doing business. On the other hand a firm was considered as 

 doing business in Germany, which sold its goods through 

 traveling salesmen, which were forwarded from stock held in 

 Berlin. 



In conclusion. Dr. Marcuse remarks that there is one way 

 of evading all the above difficulties, by forming an independent 

 corporation, either a stock company or an association with 

 limited liability; the latter form being more appropriate for 

 the representation of foreign firms. Such association can be 

 formed by two persons with a capital of $5,000, and may have 

 for its object the representation of a certain foreign firm. The 

 income tax on such associations is higher than that levied on 

 individuals, but as it will never have to show a profit, it will 

 be consequently practically exempt from that tax, with which 

 the business tax is small in comparison. 



The authorities have attempted to claim that such associa- 

 tions should be disregarded, as being in bad faith. The courts 

 have, however, decided that a corporation, duly organized under 

 German laws, cannot be simply overruled by tax officers, for the 

 reason that they were formed to evade taxes. 



MR. YAMAHA GOES TO THE "GOMU SEKAI." 



Our enterprising correspondent in Japan, Mr. S. Yamada, 

 who has been associated for some time with the Japanese rubber 

 paper called the "Gomu Shimpo Sha," has left that publication 

 to take the position of editor and manager of the Tokyo and 

 foreign office of the "Gomu Sekai," a monthly publication printed 

 in Osaka, which is an organ of the rubber and celluloid trades. 

 Mr. Yamada is a very painstaking and reliable newspaper man 

 and is widely familiar with the rubber trade of Japan, as well 

 as with the trade generally all over the world. He goes to his 

 new position with a fine equipment for his work. 



RUBBER TRADE IN JAPAN. 



By Our Regular Correspoudoil. 

 JAP.\NESE RUBBER PLANTING IN MALAY PENINSULA. 

 A CCORDING to the details which appeared in the April, 

 •** 1912, issue, Japanese investors to the number of 77 had, up 

 to the previous August, acquired in Malaya about 83,750 acres, 

 of which the area of 15,800 acres had been planted. More de- 

 tailed particulars, since available, show the distribution to be 

 as follows : 



Number 



of planta- Acreage Acreage 

 States. tions. rented, cultivated 



Johore 44 77,730 12,785 



Negri Sembilan 15 2,845 1,768 



Sclangor 21 1,420 880 



Perak 6 1,055 480 



Kcdah 1 450 220 



(Singapore) 2 250 120 



Revised particulars to end of 1911.. 89 83,7S0- ' ! 16,453 



The State- of Johore fhtis contains 50 per cent', of the' number 

 of Japanese plantations iri the Malay Peninsula, as well as 93 

 per cent, of their total acreage and 75 per cent, of the cultivated 

 area of its plantations. Eighty per cent, of the whole Johore 

 acreage and 60 per cent, of the cultivated portion belongs to 

 eight plantations. Johore is consequently the most important 

 Malay State for Japanese rubber cultivation. 



LATEST EXTENSIONS. 



In October, 1912, Mr. Chiijun Osada, who had owned 500 

 acres along the river Johore (not cultivated), established the 

 Malay Planting Co. w^ith $150,000 capital for cultivating 1,000 

 acres. 



The Okura Rubber Co. has been lately established with $50,000 

 capital to cultivate 1,300 acres along the Central Railway of 

 Johore, in part of which the late Mr. Okura had been interested. 



RUBBER PLANTING COMPANIES IN CHINA. 



During the rubber boom of 1909-1910 no less than thirty-nine 

 companies were started in China for the purpose of acquiring 

 rights to rubber lands selling them, rather than with the idea of 

 planting trees. When the reaction came these companies were 

 seriously aflfected, some of them only retaining their name, with- 

 out any assets. 



Si.K of the companies, however, paid a dividend to the stock- 

 holders for a time. These were: (1) Alma Estates; capital, 

 $350,000; paid 3 per cent, in 1910, when they made $18,000, but 

 lost $19,000 in 1911. (2) Chaupedack Rubber and Gambier Co.; 

 capital, $190,000; paid 10 per cent, in 1910, when they made 

 $12,000. In 1911 they made only $5,500 and paid no dividend. 

 (3) Anglo-Java Estate; capital, $1,250,000; paid 75^ per cent, 

 in 1910. when they made $8,500; paying 4 per cent, when profits 

 were reduced in the year 1911. (4) Denkaranturian; capital, 

 $150,000; profits in 1911, $2,000. and $24,000 in 1912, when 12 

 per cent, was paid. (5) Padang Rubber; capital, $150,000; 

 made $10,000 in 1911, but paid no dividend; made $23,000 in 

 1912, when paid 6 per cent. (6) Senaivan Rubber Estates ; cap- 

 ital, $250,000. In 1911 paid 38 per cent., when they made $75,000. 



Most of the investors are Englishmen and the rules of the 

 companies are in accordance with British law. 



BRITISH CAPITAL IN SUMATRA. 



.-\ccording to a British Consular Report on the trade of 

 Sumatra, the cultivation of rubber is one of the most important 

 industries of that island, representing about' $40,000,000, five- 

 eighths of which is estimated to be British capital, divided among 

 50 companies. Some 30 companies are said to be producing, but 

 the majority only on a small scale. Returns are quoted which 

 showed that at the end of 1911 there were 130,000 acres planted 

 in Hevea BrasUiensis. 



