JAPAN'S FUTURE IS
TEN-STORY BLOCK UNDER CONSTRUCTION FOR MEIER & FRANK COMPANY
Merchants
Savings 6 Trust
Company
247 WASHINGTON STREET
Paid-upCapital$150,000
.-sc.- -
FAR F
Nation Staggers Under Enor
mous War Debt and Busi
ness Is Stagnant.
r
TASK FOR NEW CABINET
OM
BRIGHT
Influential Public Men Demand Re
trenchment and Economy Any
Foreign War Utter Impossibil
ity Talk of Protection.
TOKIO. "August 15. (Special.) lor
some time It has been evident to all
who have closely watched the course of
events in Japan that the economic out
look In this country is far from bright.
It was Inevitable that Japans deadly
struggle with Russia should result in
onerous financial burdens being placed
upon the Japanese people, and that to
make these burdels tolerable sagacity
of no mean order would have to be dis
played by the statesmen entrusted with
the administration of affairs. But
while It is matter of common knowl
edge that Japan's indebtedness was
enormously increased owing to the war,
few. perhaps, are acquainted with the
fact that in the budget for 1907-8 the
provision made for the service of the
debt was nearly twice as large in
amount as the total national expendi
ture for iS9i-. Thf figures Issued by
the Department of Finance show that
In 1895-6 the expenditure, ordinary and
extraordinary, reached a total of 85.
317.179 yen. the debt charge being
24.180,S..S yi-n. In the budget for 1907
8 the debt charge was placed at 166,
102.641 yen. and the total expenditure
at 616.441.047 yen. The official pub
lication further shows that the amount
of debt per head ?f the population rose
from S.795 yen In 1SS5-6 to 45.012 yen
In 1906-7.
Task Made Difficult.
The task with which Japanese states
manship is faced is rendered all the
more difficult by circumstances beyond
the control of governments. A period
of wild speculation followed the war,
and the inevitable reaction had a disr
astro'is effect on commerce. Another
factor In the situation was the disturb
ance caused by the monetary crisis in
the I'nlted t-tates; the efforts of which
were universal. The fall In silver,
moreover, enabled the producers of Chi
nese silk to compete more favorably with
the Japanese product, and enhanced the
price from 'the purchaser's point of view
of articles which China has been in the
habit of importing from Japan. How far
the Chinese boycott of Japanese goods
and shipping will prove injurious It is
impossible to say, but there appears to
be little doubt of its gravity. The Tatsu
Maru incident appears to have seriously
wounded the amour propre of the Chi
nese; who have shown their resentment
by boycotting Japanese shipping as well
as Japanese goods.
Can She Bear Burden?
. Putting aside all temporary factors,
however, the broad question is. will
Japan be able to bear the burden im
posed on her as the result of her struggle
wtth Russia? The answer depends on
the financial policy which will be in
augurated by the new Cabinet. Promi
nent business men are entering the po
litical arena n order to combat increas
ing expenditure, and the effects of en
hanced taxation are regarded with wide
spread alarm. The military party is for
increased armaments: on the other sme
Is ranged an influential body of public
opinion which demands retrenchment and
economy. Apostles of protection urge
that when the conventional treaties lapse
In 1911 Japan will be able to increase her
import duties and thus stimulate her
home industries. The view was recently
advanc?d by the director of the govern
ment steel foundry at Wakamatsu be
fore the Burget committee. Great expec
tations were raised when the Wakamatsu
foundry was established. Rails, bars, an
gles and plates were being turned out in
large quantities from the foundry several
years ago. and it was predicted that im
porters of steel manufactures would find
a serious competitor in this establish
ment. Foundry Dismal Failure.
So far, however, the foundry has been
a financial failure, though It has cost
the country nearly $30,000,000 It has
been contended by some authorities that
the enterprise has not been conducted on
efficient commercial lines, and they sug
gest that the foreign advisers employed
by the government were not retained for
an adequate period. In any event the
foundry is regarded as a "white ele
phant" in this country, and its director
cart only propose as a remedial measure
the adoption of a high protective tariff.
Commenting on the Protectionist theory
the Japan Chronicle remarks:
"'While the government advocates urge
on the one hand that high tariffs will
diminish imports and protect the homa
Industry, they assume on the other that
a larger revenue will be obtained from
these increased tariffs. How then can
the home trade be protected if the same
quantity of goods is to come into the
country even at higher prices? Clearly
Japan cannot have both protection for
her manufactures and increased revenue
from her tariff: and it is also evident that
Just as she checks imports by high du
ties, so she will raise the freights on her
exports and damage her mercantile ma
rine. One of the great ambitions of Japan
Is the development of a great shipping
Industry, but the ' experience of other
countries' shows that this will be impos
sible so long as she remains wedded to
her policy of protection."
Another Warning Given.
A similar warning Is contained in a
less direct form in a report on the trade
of Japan from 1907 by Mr. Crowe, com
mercial attache to the British Embassy
at Tokio. which has just been issued.
Mr. Crowe's report is comprehensive and
suggestive. It is recognized by most peo
ple, says the report, that Japan must in
crease her exports very considerably If
she wishes to fulfill her aspirations;
otherwise It is not clear how she is to
keep up her heavy expenditure on her
army and navy and pay the interest on
her foreign debt. Last year, however,
the expansion In her exports was no more
than J4.419.l75. equivalent to 2.4 per cent;
and. as Mr. Crowe points out. an analysis
of the figures Is disappointing, since most
of the manufactured articles on which It
was hoped Japan would continue the
progress she had made in 1906, show
either small increases or actual de
creases. For the first four months of the
current year, moreover, exports from
Japan exhibit a decline of J2.85O.00O. as
compared with the corresponding period
of 1907.
Labor May Go Higher.
The facilities which Japan offers for
manufacturing have frequently been
described. "Labor Is cheap, and coal
and water plentiful. Mr. Crowe em
phatically maintains that any great ad-
k
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II4VDSOM1 BISI.ESS BL1LDIXU, AT SIXTH AND Al.DER STREETS, ' WIL1 BE HI SHED TO COM
PLETION. '
Illustrated ahove is the architects' drawing of the new Meier & Frank building, now bping erected at
the southeast corner of Sixth and Alder streets, the construction of which will now go rapidly forward to
completion. The firm gave out yesterday, for the first time, many of the details and new features to be
Inaugurated In the construction of the building. As has been reported heretofore, it will be ten stories in
height and he of steel construction, absolutely fireproof throughout.
The firm announces that no expense is to be spared to make this structure the, finest of its kind on
the Pacific Coast. The exterior will be of white, dull-glazed terra cotta. which is now being extensively
used in the construction of high-class bunaings inrougnuui ine uxU..tr.. t-nc. ..
will be possible to keep the appearance of the building like new for many yeers to come, in
first building in Portland to use this type of exterior, and probably will be followed by oth
template erecting office buildings, or large business structures, to use tnia style oi
preference to brick and standard terra cotta. '
Workmen are now engaged in underpinning the walls of the present Meier & Frank store building as well
as the Stearns building, preparatory to digging out. 12 feet more of the basement, which will go to a
depth of 21 feet, giving two floors below the street level. The firm has the assurance of the contractors
that this sub-basement will be absolutely waterproof. ' 1
Every innovation that has been used with success In the modern department - store building will be
used In this new building of the Meier & Frank store. Rest rooms, waiting rooms, nursery, elaborate toilets
and every new convenience for patrons will be inaugurated. The store equipment will Include seven passen
ger elevators four In the new structure and three new elevators In the present building: pneumatic cash
service system: vacuum compressed air for cleaning purposes.
Various hew departments are to be added. Lines to be added will be announced later. The details re
garding which departments are to occupy the new building have not as yet been worked out. The new
building is to have three entrances a magnificent double entrance at Sixth and Alder, and another at the
extreme northerly end of the building on Sixth street. The new building, when completed. Is expected
to rank with the best In America. Doyle & Patterson are the architect, and the Starret-Thompson Com
pany, of New York, the contractors.
vance In the productive capacity of the
country must come In manufactured
goods, mainly from the large enter
prises that have arisen during the past
two years. But will labor continue to
be cheap In Japan? Two years ago the
British Consular representative at Yok
ohama directed -attention to the in
crease in the cost of living, and Mr.
Crowe now suggests that the advan
tage of cheap labor Is one which may
soon disappear. During the last year
rice reached a record price, and the
cost of other articles of every-day con
sumption has been affected by enhanced
taxation.
Demands for higher wages have nat
urally followed the rise in the cost of
living. Some have been granted and
others refused. An ominous feature
of the labor movement in 3 907 was an
epidemic of strikes, accompanied by
serious acts of violence. Mr. Crowe
attributes the rioting which took place
to lack of proper combination among
the workers. Be this as It may. the
damage resulting from the riots at the
Ashlo and Besshl copper mines was
estimated at nearly $2,500,000, and the
services of the military had to be In
voked for the restoration of order.
The significance of these statements
lies in the fact that they emanate not
from opposition newspapers, but from a
British official source. In another part
of Mr. Crowe's report he dwells on
"the Inability of Japan's manufacturers
to maintain a high standard of qual
ity," and Intimates that this Is likely
to militate against any great success
on their part. Government monopolies
and government Inspection have been
proposed as remedies, but where the
latter has been adopted the govern
ment stamps have, it is alleged, been
tampered with after having been af
fixed to the goods Inspected.
Evidences or Oppression. '
The evidence of depression in Japan
Is overwhelming. The British Con
sul at Kobe recently reported to the
British Foreign Office that from the
middle of last year to December there
was not a merchant or broker at that
port who could record anything but
utter stagnation or loss. The lottery
scheme devised by the Japan Cotton
Spinners' Association, with the object
of inducing Chinese consumers to pur?
chase Japanese yarn Instead of Indian
yarn, afforded an eloquent proof of the
condition of the cotton trade. The idea
of placing tickets in bales of yarn en
titling the finders to prizes was in
genious enough, but the originators of
the scheme were hardly prepared for
the chorus of condemnation with which
their project was received at Shanghai
and Hongkong.
But while the general outlook is
overclouded there Is reason to hope that
the Indomitable spirit displayed by the
Japanese people during their struggle
triumphant from their difficulties. It
is essential to this end that the na
tional policy should proceed on sound
financial lines, and that every effort
consistent with the honor and safety
of the empire should be made to cur
lal expenditure and reduce taxation. In
1907. It may be noted, the average ad
valorem rate of duty on dutiable goods
Imported amounted to 15.28 per cent,
which compared with 14.66 per cent in
1906, 11.66 pen cent in 1905. 9.84 per
cent in 1904 and 9.71 per cent in 1903.
The effect of the new tariff has thus
been very marked, and if the Protec
tionist party have their way the Im
port duties levied will be greatly in
creased when the conventional tariffs
lapse.
Foreign War Impossible.
From the point of view of the hold
ers of Japanese bonds the prosperity of
the country is a matter of great im
portance. At the end of last year the
foreign debt amounted to J590. 000.000,
and the ability to meet the Interest on
this huge amount is closely bound up
with the welfare of Japans manufac
turing Industries. This is one cogent
reason why the developments of the
fiscal policy of Japan should be fol
lowed with keen Interest throughout
the world. Any idea of war with a
foreign power, and particularly with a
power having the wealth and resources
of the United States. Is unthinkable.
The new Cabinet certainly has a task
before It which will tax. the ability and
ingenuity of the greatest minds In the
empire.
WOMAN MUST LEAVE CITY
Mrs.
Cruzane Is Found Guilty of
Disorderly Conduct.
The trial of Mrs. Allie Crtizane,
mother of Guy Cruzane. now facing a
statutory charge, who was arrested on
complaint of residents of Kern Park
for disorderly conduct,, took place be
fore Justice of the Peace Olson yester
day afternoon. The testimony In the
case was sufficient to prove the guilt
of the prisoner, but the court decided
to withhold sentence providing the
woman left the city immediately, which
she promised to do.
Florence Mayfield. the young girl
who was arrested with Cruzane. be
came angry when the court ordered
that she be returned to the Home of
the Good Shepherd, where she has
been placed since her arrest in the
company of Cruzane. The girl, who is
16 years of age. fought the officials
fiercely and absolutely refused to leave
the place without Mrs. Cruzane. She
was finally carried to the automobile
of Deputy District Attorney Vreeland
WILL EXPLORE JHTMCTIC
CHARCOT EXPEDITION SAILS
TO FIXD XEAV COXTIXEXT.
Amid Plaudits Frenchmen Start on
Quest Will Traverse Ice
With Autos.
HAVRE. Aug. 15. Acclaimed by a
great crowd, including representatives
of the government, the steamer Pour
quol Pas left here yesterday on a voy
age of discovery to the South Pole.
The expedition Is a private one, and
is headed by Dr. Jean Charcot, who
led a similar voyage in 190G. In addi
tion to a number of young scientists,
there is a crew of 28 on board.
After reaching Alexanders Land, M.
Charcot plans to continue his cruise in
a southwesterly direction to explore
Makes a special feature of
Trust Business.
Holds titles pending sale or
other disposition of properties.
Cares for estates under will,
or for executor, administrator,
or guardian.
Trustee in bond issues, es
crows, etc.
Nearly four millions trusts
now in charge.
. Consult us upon any phase of
our service.
STYIOGRAPHIC PENS
(INK PENCILS)
Just Received a New Stock
From $1. SO
To $4.50
See Our New
"TEDDY PEN"
STATIONERS, PRINTERS
ENGRAVERS
Fifth and Oak Streets
and define the southern limits of the
Pacific Ocean and to determine accu
rately whether or not there Is a vast
continent extending as far south as the
pole Itself. . The expedition is fitted out
for three years, but the members ex
pect to depend largely on the resources
of their hunting and fishing in the
Antarctic. A feature is several . ice
automobiles.' with whirh the explorers
hope to push south over the Ice fields.
SUDDEN DEATH OF CHEF
Charles Michel Belonged to . Well
Known New York Family.
Charles Michel. 46 years of age, a
French chef, who has been employed
at several well-known ' restaurants In
this city, the last being the Hofbrau,
at Sixth and Alder streets, died yester
day afternoon at his lodgings, 375
North Sixteenth street, from heart fail
ure. Michel had been in apparent good
health. He was of enormous size,
weighing more than 300 pounds, and
it is believed that his obesity contrib
uted to the conditions culminating in
his death. He was stricken suddenly
In his room.
Michel came from an old and well
known French family in Kew Tork
City. He was unmarried, and at one
time was the proprietor of a cafe in
the Eastern metropolis. His father
died, leaving him a small fortune,
which he lost In restaurant ventures.
His brother-in-law Is John Clancy, a
well-known Democratic politician of
New York- City. He was a relative of
ex-Fire Commissioner Michel, of New
York, and his father, it is said, was in
terested in the conduct of the Hotel
Brunswick, which, 40 years ago, was
one of the fashionable Fifth-avenue
hostelrles of Manhattan.
Having died without a physician In
attendance. Michel's body was turned
over to Deputy Coroner Dunning, who
last night telegraphed to Tammany
Hall. New York. In an effort to locate
Mr. Michel's relatives.
SALESWOMEN WANTED
To fill positions of those wishing vaca
tions. Positions may be permanent.
Apply to McAHen & McDonnell. '
FREE
Music Lessons
with Russia will enable them to emerge nd ramvuvoi to the Refuge Home.
Others are Joining; the Piano w
, Club co-operatlna; In wholesale buying 9 I
f and participating In aubstantlar savins;. Why 1
W not you f " ' 1
In addition to savings of $133 and Free Life Insurance to I
I Club members, we sire during; this month to readers of
this paper Twenty Music Lessons Free no matter
where you are located. Write for C'rub Booklet- men- I
tlon Free Music Lessons and The Oregonlan.
Fall particulars will be sent you by next mall. M
Wholesale Dent.
EILERS PIANO HOUSE S
Portlsnd, Or.
-w 353 Waahinrton St. -
.1 4... w
THE LAURISTON
LIVING -ROOM
AND
LIBRARY FURNITURE
Davenports
Settees
Lounging Chairs
Of Every Description
Tables, Desks,
Bookcases
In Oak and Mahogany
Imported and Domestic
Rugs
Wall Coverings and
Hangings
J. a MACK 8 GO.
FIFTH AND STARK STREETS
NEWPORT
YAQUINA BAY .
Oregon's Matchless Beach Resort
The Place to Go for Perfect Rest and All
Sorts of Healthful and Delightful Recreation.
ITS FACILITIES ARE COMPLETE Best of food
and an abundance of it. Fresh water from springs.
All modern necessities, such as telegraph, telephone,
markets freshly provided every day. Fuel in abund
ance. Cottages partly furnished or unfurnished to
be had cheaply. Strict municipal sanitary regula
tions. SUMMER EXCURSION RATES
From All Points in the Northwest
NEWPORT is reached by way of the Southern Pacific to Albany or
Corvallis, thence Corvallis & Eastern R. R. Train service daily and
the trip a pleasure throughout. Leave P.-.rtland 8:15 A. M., main line
via Albany, or 7 A. M. via "West Side line.
RATES FROM PORTLAND
Season Tickets, on sals daily $6.00
Stturday-to-Monday Tickets ...-$3.00
Call at the city ticket office of the Southern- Pacific, Third and
"Washington streets, in Portland, or at any S. P. agency elsewhere, for
complete information.
WM. McMURRAY,
General Passenger Agent, Southern Pacific Co. Lines in Oregon,
Portland, Or.