That every titleman should have a lively and loyal interest in all that relates to the civic welfare of his community and should join and support the local, civic and commercial bodies. From the Code of the Wholesale Growers of the United States: To assist in the enactment, maintenance and enforcement of uniform Pure Food Laws which in operation deal justly and equitably with the rights and interests of the consumer, retailer, jobber and manufacturer. From the Code of the Associated General Contractors of America: It is improper practice to engage in any movement which is obviously contrary to law or public welfare. From the Code of the National Association of Electrical Contractors and Dealers: Every member of this Association should be mindful of the public welfare and should participate in those movements for public betterment in which his special training and experience qualify him to act. Every member of this Association should support all public officials and others who have charge of enforcing safe regulations in the rightful performance of their duty; He should carefully comply with all the laws and regulations touching his vocation, and if any such appear to him unwise or unfair, he should endeavor to have them altered. G Rules of conduct governing the making and executing of contracts, with special reference to specifications. (This is included as a special heading not only because of its importance, but to avoid splitting the topic in its phases under four or five headings.) In general, the rules to be written here should have as their object the regulation of contracts between all of the parties mentioned in the code: to wit, the employer and employe, buyer and seller, the craftsman and the purchasing public, to the end that all the parties to the contract are mutually benefited. The standards under this topic should clearly state correct methods of framing specifications, definitions of the terms used, and concise expression of various trade customs and usage which constitute a large part of such specifications. In both the writing of contracts and specifications, it is necessary to devise rules of conduct to eliminate much useless legal verbiage, and particularly the avoidance of the so-called "joker clause." The latter is inserted apparently as a minor provision, but ofttimes in legal value, it outweighs in importance many of the more emphasized sections of the contract. As an illustration the following is given from the Code of the New York Building Congress: It is unethical for the architect and engineer to cover possible oversights and errors by indefinite clauses in contract or specifications. A noteworthy contribution to standards of practice is supplied by the American Society for Testing Materials, which presents complete standards of practice in the making of specifications for paving brick, and rules governing their interpretation and performance. Their proposed code contains the following two paragraphs, worthy of consideration: The contract and specifications should be drawn in plain, simple language by one who has had experience both in drawing and interpreting them. All provisions should be fair, open and understandable without concealment, without ambiguity, without hidden meanings. Nothing should be left to inference or assumption. This will be promoted by adopting standard forms, which have been tested and proven by prior use. H A statement of certain well-known violations of the code of correct practices, with strong discouragement of such practices. In brief-a statement of the "Don'ts" of business conduct. There are very few illustrations of Don'ts shown in existing or proposed codes. The "Don'ts" might be misunderstood to be the opposite rules to the "Do's" contained under all the other topics. It was not the desire or intention to have negatives developed in this way. The Don'ts were to be of a general character, or of a very broad principle. In fact, the rules to be covered could not logically be included elsewhere. The Don'ts should be ascertained by examining the three cardinal principles which have recently arisen in the business world, namely: "Let the buyer beware," "Treat the keen and confiding buyer alike," and "Truth and service the handmaidens of business prosperity." The National Association of Ice Cream Manufacturers includes this paragraph in its code, under the heading, "Unfair practices of sellers": Bribery of buyers or other employes by the seller, by the payment of percentages of the purchase price of goods bought, or with gifts of money, presents, treats and so on, to obtain business or to induce continuance of business. From the proposed Code of Ethics for Contractors (Lancaster, Pa.), may be quoted: That a contractor cannot honorably accept a remuneration, financial or otherwise, from more than one interested party. "No man can serve two masters. Financial or other arrangements as part of the purchase, commonly designated as graft, shall not be made. As regards the "Don'ts" covering the elimination of the corrupt and growing practice of commercial bribery, fifteen large national associations have formed commercial standards of practice. They propose to devote a vigorous attention to this topic and support national legislation for the suppression of this form of business graft. The secret giving of commissions, money, or other things of value to employes of customers, for the purpose of influencing their buying powers, is a dangerous evil more wide-spread than is acknowledged and one which is unquestionably growing. During the month of March an intensive study was conducted by Rotary into each one of the eight suga model code. gested topics for Twenty-five district conferences were held throughout the Rotary world. Each conference was asked to discuss a single topic, in much detail. The results of this discussion will be passed to a committee for standardization and generalizing. The campaign, furthermore, was carried through the month of April in the Rotary Clubs by having Rotarians present the need for codes of standards of practice; the advantages which come to a craft through the adoption of such a code; brief experience talks by members who have been instrumental in having codes written or revised by their crafts; and talks by Rotarians before the clubs and their craft associations on the relations of employers and employes. As regards the results of the campaign, to this point, we may summarize as follows: 1. Many men who were not members of their craft association realizing for the first time, the vital importance of such an association, in establishing higher business standards, have joined their craft associations. One national association secretary states that his association has almost doubled its membership. 2. There are over one hundred committees at work drafting proposed codes of standards of practice. Hart Seeley, one of the district governors of Rotary, is chairman of a committee framing a code for the Glove Manufacturers' Association. The other Rotarians who are chairmen of national committees are too numerous to mention. One national secretary writes, "My office has been swamped with letters asking for our code of standards of correct practice. If the Rotary Committee will call off its Rotarians, we will immediately set about to write a code." Still another association writes, "It took us five years to frame our present code of standards of practice, which was made up mainly through compromises of men who did not wish the standards to be too exacting. Now, Rotarians urge us to go to the limit in making a stringent code. They are so insistent our President has appointed a re-drafting committee.” 3. Many associations have had so many requests for their present code so that their membership might study it and ascertain if it was worthy, that they have been compelled to get out an entirely new edition to supply the requests. This feature of the campaign, in interesting many who heretofore had no knowledge of their craft code or no knowledge of the business standards sought, will accomplish great good for the general business world. Rotary appreciates the opportunity of presenting this campaign to the American Academy of Political and Social Science, and trusts that its members who are more skilled in matters of this sort, will aid the businessman wherever opportunity offers. Wit China, Our Chief Far East Problem By W. W. WILLOUGHBY, PH.D. E all know that the Conference at Washington1 was called primarily to reduce the building of armaments, but that our President thought it also necessary, in that connection, to bring about, if possible, an adjustment of the political conditions in the Far East which, if not corrected, might lead to war in the future. Therefore he invited not simply the first five powers that were to participate in the Arms Conference, but the four additional powers, that had political or economic interests in the Pacific and Far East. I wish to say a word or two as to the political situation in the Far East. The political equation there is one of three terms: First, there is China with its vast stretches of territory, and its great population, numbering a quarter of the human race; second, there is Japan with its eager, aggressive, ambitious and increasing people; and third, there are the interests of the Western powers. CHINA UNDER FOREIGN CONTACT First, of China. The Chinese people, as has often been said, have an authentic history of four thousand years. They are one of the greatest peoples that have lived on the globe. They have created for themselves a civilization that has been the admiration of all those who have studied it. They built up for themselves a culture, an art, a social life and a polity that was admirably adapted to their dominant agricultural needs, and which har 1 Conference on Limitation of Armament, Washington, November 11, 1921. This paper was written before the Conference had completed its work.-Editor. monized with their social life, a system of government which proved defective only when brought into contact with the Western industrial life. Thus it has been said that China maintained herself unaided for four thousand years, but began to fall when she began to get aid from the Western World. There is much truth in this for, from the time she was brought into contact with the West and forced to accept Western ideas and to meet the military competition of the Western nations, her own system of political rule proved weak and defective. That system relied more on reason than on force. It had not the appliances of Western mechanical life. Thus the Western nations were able, one after another, to tie bonds about China until she became almost helpless. Thus it has come about that nearly all the foreigners in China live under their own laws and are responsible to their own officials. In many of the so-called treaty ports foreigners have municipal areas termed concessions or settlements where they have their own local governments, practically free from Chinese administrative control. What is perhaps most serious of all, the nations have deprived China of the control of her own customs revenues. They have made it impossible for China to levy more than a five per cent tax on any of the commodities imported into or exported from China. She must get the unanimous consent of the treatypowers before she can increase her tariff. The treaty allows her five per cent, but she has been able to collect, because of undervaluation of commodi ties, only three to three and a half per cent ad valorem. Not content with rights wrung from China by means of treaties which she has felt herself constrained to sign, some of the powers have exercised rights and powers in China without even the semblance of treaty permission. They have stationed troops at various points in China. Japan now has 1,200 to 1,500 men at Hankow, in the center of China, one thousand miles up the river. She has had them there for ten years. There are many other foreigners there, but none of the other nations have thought it necessary to protect their nationals by stationing troops. Some of the nations have established wireless stations without treaty right. In Peking I could put a letter in a foreign post office and send it anywhere. All those post offices are there without any treaty right. THE NEW REPUBLIC In 1911 China started upon the great experiment of a republic to replace the forty-centuries-old monarchy. The result of such a transition necessarily brought about a certain amount of discontent and a temporary weakening of authority. But a republic requires for its support the loyal, active obedience and sympathy of its own people and it is impossible for them to have that respect for a government which is treated as the Chinese government has been treated by other nations. This, the Western powers have now recognized. They now see that one of the problems of the Far East is to rehabilitate China, to aid her to establish an orderly government. This is what the Conference at Washington is trying to do. It has made provision for getting rid of all the foreign post offices. They will be removed by the end of this year. China has got very little with reference to tariff legislation. She is allowed to levy an effective five per cent, but that is only what the treaties have allowed her, and that she will not get for some time. The question of the right which all foreigners now have to live under their own laws and be responsible only to their own officials, is also important. The Conference has provided that there shall be a committee appointed to investigate conditions in China with a view to determining how soon and by what steps this condition of affairs can be relieved, and China thus made the mistress of her own affairs. While I am speaking of foreigners, I should say there is no country in the world where foreigners are so safe, both as to life and property, as they are in China. THE JAPANESE MENACE Not only are China's autonomous powers limited in the manner in which I have been speaking, but her very political existence is threatened. Russia was certainly a threatening menace to her at one time. But, since 1905, the menace has been from Japan-a small but aggressive power, militaristic, bureaucratic and imperialistic. You all know the history of Japan and Korea-how Japan took Korea under her protection and in five years annexed her. I do not need to speak to you of how she took the place of Russia in Manchuria; how, through the control of the South Manchurian Railroad, she has claimed the right to maintain police, to maintain troops, who exercise political jurisdiction, and in other ways to exercise a dominating influence in the great Manchurian provinces with twenty millions of population. I do not need to mention to you the now famous or infamous "Twenty-one Demands" which Japan put forward |