Evening Republican, Volume 19, Number 12, Rensselaer, Jasper County, 14 January 1915 — Poor Chinese Business Rule. [ARTICLE]

Poor Chinese Business Rule.

It Is an ''established custom in China that a new company must pay dividends to its shareholders^ from the first year of Its existence, and this forms invariably a clause of the articles of association. Some concerns which fail to realize a profit have to contract a high interest loan in order to pay dividends in full. It is this practice that compels companies to contract loan after loan until they are plunged into a helpless state. Furthermore, when a new company is established, it is from the start tied down to a system of commission paying. In every purchase as well as in every sale of the company a commission goes with it. which is therefore counted into every payment and receipt, thus occas'c-ning the need of an unnecessarily large amount of capital.