Mr. Denby to Mr. Gresham.

No. 1784.]

Sir: I have the honor to inclose herewith a copy of a communication sent by me to the Tsung-li-Yamên, asking that a proclamation be issued reprobating the practice of counterfeiting or fraudulently imitating trade-marks on American piece goods, and directing all officials to arrest and punish all persons who are found guilty of this offense.

I have etc.,

Charles Denby.
[Page 135]
[Inclosure 1 in No. 1784.]

Mr. Denby to the Tsung-li-Yamên.

Your Highness and Your Excellencies: I have the honor to address you on the subject of the counterfeiting or fraudulent imitation in China of trade-marks on American piece goods.

It is plain that to place on goods manufactured in China a foreign trade-mark is injurious both to the purchaser of such goods and to the manufacturer thereof. The purchaser is deceived into buying an inferior article and one different from what he intended to buy, and the manufacturer loses the sale of his own honest goods.

In western countries it is competent for any manufacturer to adopt and register any trade-mark and appropriate it to his own use, and thereafter it is both a crime and a civil injury to counterfeit or fraudulently imitate such device. It is believed that no such law exists in China, but that such practices are, nevertheless, reprobated by Chinese officials and are inhibited and punished when brought to their attention.

As an example of such action I call your attention to the copy of a proclamation recently issued by the Tientsin customs taotai which is inclosed herewith. I am informed that the practice of counterfeiting trade-marks exists in other places besides Tientsin. My object in addressing your highness and your excellencies on the subject is to request that you will instruct the officials of the various provinces to issue proclamations reprobating this injurious practice and directing them generally to arrest and punish all persons who are found guilty of engaging therein.

I have, etc.,

Charles Denby.
[Inclosure 2 in No. 1784.—Translation.]

Proclamation of the Tientsin customs Taotai.

Acting United States Consul C. D. Tenney has sent a dispatch to the Tientsin customs Taotai, in which he states that Mr. W. R. Eastlack, of the China and Japan Trading Company, of Shanghai, has complained that the business of the said company has been injured by the fraudulent practices of the Tientsin piece-goods dealers in counterfeiting the “Indian Head” trade-mark. On receipt of this information the acting consul sent a man to purchase cloth at various native hongs in Tientsin, and thus succeeded in obtaining from “Ch’un Hua Fai,” “Heng Fai Ho,” “Yung Hsung Ch’eng,” and “Yung Shun Ho” sheetings which on comparison with the genuine “Indian Head” sheeting furnished by Mr. Eastlack proved to be, as charged, fraudulent imitations. The acting consul therefore requests the customs Taotai to take action accordingly.

In response to the foregoing dispatch the customs Taotai summoned the managers of the four hongs above mentioned and warned them to discontinue the sale of the falsely marked “Indian Head” sheetings, and commanded them to dye all such goods as might be in stock before they offered them for sale, at the same time threatening them with severe punishment if they failed to comply with the order.

The said hongs agreed to obey and filed a bond as security.

This proclamation is now issued to warn all the wholesale and retail piece-goods dealers of Tientsin not to change the trade-marks on cotton [Page 136] piece goods and not to deal in falsely marked goods. In future if anyone is discovered breaking this regulation his goods will be confiscated and in addition the offender will be severely dealt with. Let everyone concerned take notice.