THE CAMPHOR MONOPOLY

Otago Daily Times, Issue 16276, 8 January 1915, Page 8

THE CAMPHOR MONOPOLY

(By Romney, in Chambers's Journal.)

Industrial history contains few more interesting studies than that of tho failure of the Japanese attempt to corner camphor. Its history is little known except to the chemist and to the industrialist, and of these it is probable that not many understand the international importance of the rapid rise in the price of camphor after the Russo-Japanese war; yet few events caused the Governments of the world more serious anxiety —a fact to which the large expenditure upon jecretservice work and chemical investigation in this connection bears witness.

Ten years ago the world enjoyed two varieties of camphor. There was Borneo camphor, the purer quality, of which comparatively small quantities were produced, and which was used mainly for medicinal purposes. In addition to this there was the coarser, common, camphor of commerce, whose use had increased enormously since the discovery of its employment in making celluloid by the Englishman Parkes in 1858, and since it had been employed as an indispensable ingredient in the manufacture of smokeless explosives. Camphor is extracted by distillation from the camphor laurel (Cinnamonram camphora), a tree which flourishes in Japan, Formosa, parts of Southern China, Cochin-China, and Java, but whose preference for Japan and Formosa is shown by the fact that in 1905 over 90 per cent. of the world's supply came from those islands. In that year the total export of the Japanese Empire (the most of which came from Formosa) amounted to over 6,C00,0001b. The Japanese, who annexed the island after the Chinese war, made the sale of camphor a Government monopoly in 1898. They seem to have done so at "first without any clear intention of making a "corner." Rather would their action appear to have been determined by the increasing deforestation of the island, a problem which had troubled the Chinese before them, for we find that in 1720 no less than 200 persons were decapitated for disobeying an edict against felling trees, as the traditional Chinese method of distilling camphor from the wood of the trunk necessitated felling the whole tree, with the result that the island was becoming rapidly denuded. The laurels, still flourished in the interior; but this was owing to the presence of the aborigines, who were in constant rebellion against both Chinese and Japanese rule, and who in 1898, the year of the establishment of the monopoly, killed no fewer than 635 persons in their raids. Such was the constant interference of these barbarians with the industry that in 1885, when one of the fiercest rebellions occurred, tho quantity of camphor exported fell to the nominal figure of 4001b. This the Japanese proceeded to remedy. The commercial side of the industry was regulated by entrusting the selling agency to an English firm. Producers, on the other hand, were compelled to sell to the Government under the direst penalties, and a large police force was organised to prevent illicit dealing. This force was composed of 1500 armed Formosans, under about 50 Japanese, and the methods of dealing with tho subject population were not more gentle than the ways of such forces usually are. The plantations of camphor laurels were encircled by live wires, upon which the innocent perished with the guilty, in common ignorance of the danger. At the same time military expeditions were sent into the interior to punish the aborigines for their contumely, and to tap regions which had hitherto been rendered inaccessible. Many of these measures were doubtless unavoidable in the interests of }>eace and commerce; but, over and above this, there are tales of atrocities which equal anything reported from the Congo. Fifty years of superficial civilisation have not altered the Japanese nature, except when it is necessary to conciliate European opinion; and the" exploitation of Korea is a very good clue to what goes on behind the veil in Formosa. In the words of a Japanese author, " a certain writer does not exaggerate when he says that a few pounds of camphor, which looks so much like snow, represent so many drops of human blood."

It appears to have been after the Russian war that the Japanese Government first awoke to the possibilities of their practical monopoly. "As the production of camphor is practically limited to Formosa and Japan, we now control the supply of the world," wrote Yosabcro Takekoshi in 1905. Synthetic camphor had already made its appearance in 1903, but at a prohibitive price. The formula discovered bv the German Komppa required tho oil of turpentine, which in itself is scarce, and becoming scarcer. It ■was accordingly hoped by the Japanese that they would be able to force up the price to a figure limited, of course, by the possibilities of synthetic camphor, but still high enough. "We cannot," said Takekoshi, " permanently monopolise the industry" ; but it was hoped to derive sufficient profit from a. transient monopoly to finance some of Japan's naval schemes, and to relieve the very heavy taxation which oppressed the country after the war. It was realised that the camphor laurel would flourish elsewhere than in Japan and Formosa. But the Japanese seem to have been inspired with unjustified confidenco in the security of the moment by the traditional methods of the Chinese distillers; for it was a dogma among the Chinese that trees could not be felled with profit for distillation until they had stood for 50 years, and it apparently did not occur to the Japanese to question this belief, which, if correct, would have meant a 50 years' monopoly to themselves, even if the laurels could be cultivated elsewhere. They ?eem accordingly to have been confident of their power to squeeze the world for a considerable period, and to retain in their hands the monopoly of an ingredient indispensable in the manufacture of explosives. They did not, therefore, hesitate to raise the "price of the article some 70 per cent., and to ensure their own supplies by stimulating reafforestation. In 190*6 they planted 546,000 trees; in 1907, 1,300,000, in 1908, 4,830,000; in 1909, 5,060,000. The word of harrying the aborigines was redoubled. Unfortunately for the Japanese, their energy only served to call attention to their monopoly, and to nerve the world to efforts to nullify it—efforts which were verv soon to be successful.

Most Governments, and particularly those of Germany, Great Britain, and the United States devoted themselves resolutely, if unostentatiously, to experiments in producing camphor. Tho Americans, in particular, feared a monopoly of their Asiatic rivals in an article of military necessity, and their Department of Agriculture, by every means in its power, fostered experiments in growing camphoi trees. Seeds were procured from Formosa by secret agents—not without trouble, for the Japanese were watchful, —and efforts at culture were made by tho British in Ceylon, by the French "in the Midi and in* Madagascar, by the Germane at Anani in German East Africa, and by the United States in Texas and Florida. In 1907 tho camphor acreage in Ceylon increased from 142 acres to 1106. It was also found that tthe laurel flourished in Italy,, and,

lastly, but most important of all, in Jamaica. .Jamaica has always lx?en renowned for its production of essential oils. It now lias another advantage over Formosa in the <.heapness of its labour supply. Xngrm's can Iks obtained at Is a day. The Japanese aro reported to lie paying as much as 4s a day in Formosa- — why, it is hard to say, unless it has been found that \vil,li a lower rate of wages the monopoly is not secure against betrayal. The difference .speaks for itself. But since, own in the most favourable circumstances, some 10 years are required for trees to attain their m-aiurity, all this would not of itsolf luivo procured imtnediato relief if tho world had been content to {jo on believing with the Crhincse and Kormosans that the precious drug could not ho extracted with profit from trees that have stood for less than half a century. However, it was soon discovered that the Celestials had as little reason for this .superstition as for many others. In Florida and Texas excellent results wero obtained from trees of five years' growth. Some. enterprising individuals went further, and reaped tho young shrubs when 3ft high by means of a machine similar to that used in reaping corn. The experiment was successful. Finally, an astonishing discovery was made which gave the coup de grace to tho moribund monopoly. The story runs as follows; it is impossiblo to verify it, but it is highly probable, and there is no doubt of. tho solid msults. It illustrates what is going on daily in the industrial world. A German chemist analysed the wood of the camphor laurel, and discovered that it yielded .61 per cent, of camphor. With this many men would have remained content; the Chinese, for example, had remained content with far less for many thousands of years. But the German, being patient and methodical, went on to analyse the twigs. He found that these yielded 1.05 per cent. He then proceeded to the gTeen leaves, which gave 2.37 per cent., and to the dried leaves, which yielded 2.52 per cent. The dead leaves showed a fall to 1.39 per cent. It was .also discovered that the leaves can be gathered without injury to th© tree. The commercial moral is obvious. It is easier to harvest leaves than to fell and chop up trees. Even if the yield was not greater, it wonld still bo more profitable, for tho tree which is stripped will bear again in a year's time, while for tho tree that is felled another requires to be planted and allowed to grow. Add to this the fact that, as we have already seen, the price of labour in Jamaica is only a quarter of what is paid in Formosa, and it will become obvious that the days of the Japanese monopoly were numbered. So far, the German chemist had been most successful; but a certain impracticability prevented him from putting hi 3 discovery to immediate commercial use In addition, he registered it in America. Now there exist in America quite a number of persons who make a steady income by adapting impracticable German patents to American requirements—a> fact ■whicn speaks volumes a.s to the character of the two peoples. One of these, noticing the German's patent, lost no time in travelling to Jamaica, where he put the discovery to practical -u9e, with the assistance of an old-established planter. Since the Japanese have remained unable to introduce the improved methods into Formosa —probably because of the native obstinacy of the inhabitants, who adhere blindly to traditional methods —the corner is broken. It only remains to be seen whether the camphor laurel will permanently flourish in Jamaica, or whether, like Cannabis indica, it ■will alter its characteristics after a prolonged sojourn in the new soil. It may be mentioned that military students have remarked a similar minute attention to detail, accompanied by a want of breadth of intellect and inability to depart from recognised models, in the Japanese conduct of the recent war. The history of the camphor monopoly is comforting to those Europeans who are disposed to exaggerate the Asiatic revival at the cost of their own just and long-estab-lished reputation.