T H E TARIFF.
S P E E C EI
OF *
HON FRANK HISCOCK,
OF NEW YORIK,
IN THE
HOUSE OF REPRESENTATIVES,
TUESDAY, APRIL 29, 1884.
WASHINGTON.
1884.
º
º.; :---:-
S P E E C H
OF
H O N. F. R A N K HIS CO C. K.
The House being in Committee of the Whole House on the state of the Union
and having under consideration the bill (H.R. 5893) to reduce import duties and
war-tariff taxes—
Mr. HISCOCK Said: -
Mr. CHAIRMAN: The present customs laid upon imported goods have
been characterized by the so-called revenue reformers as a system of
legalized robbery of their consumers, and theiringenuity has been taxed
to the utmost to invent fitting phrase by which to describe the crim-
inal extortions they have exacted from the poor for the benefit of the
rich manufacturing monopolies, as they have been pleased to style those
industries of our country wherein are invested near three billions of
capital and which afford labor to 4,000,000 workers and support to
nearly one-third of the population of the United States. The charge is
made that these 4,000,000 workers, with their wives and children,
amounting to 8,000,000 more, are supported by a taxation imposed
upon that other great industrial class, those engaged in agriculture. In
all the States and in all the communities where manufactures and ag-
riculture both thrive the two classes are intermixed and alike in race,
religion, language, social habits, and are entirely ignorant, the one that
it is robbed by the other, the one that it robs the other; ignorant of
that, as is asserted by political charlatans, a great System of Spolia-
tion is now maintained of the one class for the benefit of the other;
and we find it, sir, the purpose of a great political party, that has failed
after an ineffectual struggle of twenty-three years to gain public con-
fidence and political power, now organizing upon this platform and mak-
ing the effort to antagonize these two great industrial classes and force
a division of parties upon a line between them, to arouse political strife
where none now exists; for I am not aware they so far have divided
against each other upon a political line, and whenever they shall, evil
consequences only can result.
I shall not devote any portion of my time to demonstrating that the
protective system of the last twenty-two years has been of great benefit
to the capital invested in manufacture, and of great benefit to the labor
engaged in the industries; that it has given a remunerative profit upon
the capital, and more constant and remunerative employment to the
workers, has not been disputed. I am aware instances have been cited
where some new industries have yielded capital an excessive profit, but
it has now become a recognized fact that through the labor organizations
the wages of the operatives are so adjusted to the profits of the business
that labor and capital each receive their equitable proportion, and no
longer can the capitalist be charged with robbing the consumer; if there
4
is any robbery it is alike the capitalist and the craftsman. And I shall
not attempt to discuss those questions of political economy upon which
so much has been said and written by political demagogues and States-
men; they are only bewildering and unsatisfactory.
We have so long maintained the protective system that it can be
fairly judged by its results to all classes, both to the mechanic and to
the agriculturist, both to the American producer and the American con-
sumer; and if Ifail of demonstrating the policy has been of equal advan-
tage to the agriculturists and to capitalinvested in and workers engaged
in the manufacturing industries I will gladly join with my free-
trade friends. I do not believe any more than they that one industry
should be supported at the expense of another. The argument is con-
stantly made, in fact it is the only one upon which the “revenue re-
formers” rely, that the tax collected upon all those articles in common
use among the farmers to that extent enhances their price, and is a di-
rect tax upon the farmers and for which the farmer receives no corre-
sponding benefit. And, sir, I shall undertake to establish that those
taxes do not so increase the price, but that they do increase the value of
every known agricultural product, and that while they increase the
wages of labor of the farmworker they more than compensate the
farmer in the increased value of his products. ... •
We have passed out of the period for speculation upon this great
question, or for assertion. The year 1860 substantially closed, as com-
pared with our present system, the period of free trade or of a tariff for
revenue only; and soon thereafter commenced our present protective
policy, and we have tested it for more than twenty years and can now
fairly compare the present condition as its results with what we find
existed in 1860—the close, as I have said, of the free-trade era. Ithink,
sir, I have heard some one here in this discussion assert it was impracti-
cable to make such a comparison; others I have heard maintain that such
a comparison demonstrated that agriculture was not as flourishing or
profitable now as then. To all these gentlemen I reply, you have gone
to the discussion of this matter without investigation; you have de-
pended, like the gentleman from Texas, who asserted the agricultural
products of 1860 were greater in value than those of 1880, upon second-
ary evidence when a little more labor, a little research, would have shown
you all such assertions are untrue.
Census returns have been appealed to and their tabulations paraded.
Well, sir, I propose to examine them for a little while and draw some
comparisons between what they exhibit for 1860 and 1880, the close of
the two periods. I propose to contrast
PRODUCTION of 1860 witH 1880.
Statistics, sir, are edged-tools in the hands of the inexpert or the in-
dolent, and these absurd Statements have been made on the authority
of census tabulations, from no fault of the census results, but from
ignorance of what they are intended to mean. In the first place, the
main tables include only the productions of farms, without any reference
to ranches on public lands or the products of lots in towns or villages.
Further, they exclude all pasturage and the dry forage of all the
cereals, which now aggregate 127,000,000 acres. They exclude a variety
of minor products of agriculture, which have never been embraced in
the schedules. They therefore exclude all that goes into the produc-
tion of meat excert about half the corn crop and a small portion of the
hay. None of the cereals except corn are to be considered in meat
production.
5
In 1860 the “value of animalsslaughtered or sold for slaughter” ap-
pears in the census as $213,618,692. In 1880 the value of meats of all
kinds is excluded from the tabulations of farm returns, because they are
obtained by special expert investigation and not by the regular enu-
merators. As the actual value of meats in 1880 was three to four
times as much, 800,000,000, the absence of this item makes a wide dif-
ference in the comparison. The poultry product in 1860 was $50,000,-
000; in 1880 it was $150,000,000. -
PRODUCTION IN 1860 and 1880 COMPARED.
The enlargement of production since 1860, from the increase-of agri-
cultural machinery, from the stimulus to home consumption by ex-
tension of manufactures and greater ability to consume largely
through high wages of labor, is a wonder to Americans as well as to
the world at large, and from some of the statements made on this floor
it would seem to be unknown to several participants in this discussion.
The increase in farms and farm areas from 1860 to 1880 is as follows:

1860. 1880,
Number.... ë e s is $ tº º is ºn 9 - 2,044,077 4,008,907
Acres improved...... 163, 110,720 284,771,042
Total acres................................................................. 407, 212,538 536,081,835
Production was increased in far greater ratio than farms or acreage.
Corn advanced from a product of 838,792,742 to 1,754,591,676, or 109
per cent.; wheat, from 173,104,924 to 459,483,137 bushels, or 165 per
cent.; all cereals taken together, from 1,239,039,439 to 2,697,580,229
bushels, or 118 per cent. Cotton, in 1860, had reached an unprece-
dented production with a rapidity that had been phenomenal. The
crop of 1859 amounted to 4,669,770 bales. Though its cultivation
almost ceased for four years, it had risen to 5,761,252 bales in 1879, and
to 6,949,756 in 1882. .
Fifty years ago 60 per cent. of our agricultural exports was cotton.
Now, while it is nine times as much in value, it constitutes only a
third of the values of agricultural exports. In the same time the in-
crease in value of meat and breadstuffs has been thirty-fold. The ex-
ports of cotton were very heavy in 1859–60, amounting to $191,806,555
in value, but in 1883 the value was $247,328,721, though the consump-
tion of cotton in American manufactories was enlarged in still greater
proportion, from 422,704,975 to 750,343,981 pounds, with very rapid
increase since 1880. In the same period the increase of exports of agri-
cultural products was from $256,560,972 to $619,269,449.
The product of wool is four times as much as in 1860 (it was 241,-
000,000 pounds in 1880), of improved quality, making the strongest
and most durable cloth of any manufacturing country in the world, and
needing no admixture of foreign wools. In 1860 we imported half the
woolen goods consumed, in cloth and in wool. Now we preduce about
four-fifths of the consumption, and the Small proportion imported is
largely carpet wools of too low a grade for civilized agriculture to pro-
duce. It is true that there is a small quantity of Superfine wool intro-
duced, ours being principally of medium fineness. tº
The production of meat has been enlarged beyond the increase of
numbers of cattle, or the increment of population to be fed. Recent
6
investigation in the Department of Agriculture has made the increase
of value of cattle, by improvements in breeding upon the original stock,
the sum of $287,000,000. The cattle exported from New York in
1881 averaged $93.65 and those from Boston $99.68, being mostly high-
grade shorthorns, while the unimproved Spanish cattle exported from
Florida averaged but $14.09 and those from Texas but $16.84. The
cattle exported in 1860 averaged only $38.26 per head, while the ex-
portation of 1881 averaged $77.93 per head. -
The price also indicates the great improvement in quality, as well as
the stimulus of increased home consumption Supplemented by the en-
larged foreign demand. The Chicago prices of beeves in 1860 ranged
from $1.90 to $3.75 per hundred; in 1882 extra beeves reached $6.85
per hundred. -
The exports of animals in their products was in 1860 but $20,402,812.
In 1881 it was $175,584,760. And now, Sir, I propose to make a com-
parison of values and prices. In comparing the values of products of
1860 with those of 1880 the influence of railway extension and indus-
trial prosperity are shown in their effect on prices. It is seen that
prices of many products were high in 1860 on the seaboard and low in
the interior. In December of 1860 oats in New York were 37 cents per
bushel; in Chicago 17 cents. Corn was 68 cents in New York; in Chi-
cago 27 cents. Wheat was $1.35 in New York; in Chicago 75 cents.
In 1880 the aggregate value of the products of agriculture was more
than double the aggregate for 1860. The comparative values of some of
the principal products are as follows:

Products. 1860. 1880. 1882.
Cereals............................................ $558,345,836 || $1,329,930,517 | $1,468,693,393
Cotton................................. 211,516,625 271,636,121 309, 696,500
Hay................................................ 152,671,168 410, 146, 545 869,958, 158
Potatoes.......................................... 44, 459,547 81,848,474 95,304,844
Tobacco.......................................... 21,710,473 38,758,215 43,189,951
Total................. .................... 988,703,649 2,132,319,872 2,286,842, 846
I invite the attention of the gentleman from Texas [Mr. MILLs] to
these figures. I doubt if he will be content to let his statements stand;
and Isay to the gentleman he has but to investigate the census returns,
examine them, to Verify my statement—give to the investigation some
labor and that honesty of purpose that distinguishes him, and he will
verify my figures. And this is a matter over, which there should be no
dispute and in which there should certainly be no dishonesty. I am
sure none is intended. And now, sir, I want to call attention to farm
prices in 1860, 1880, and 1882. I think, sir, I have heard it said we
could not obtain them; and now bear in mind it is not the seaboard
price which is to control—it includes transportation from the farm——
but the price at the market point to the producer must be taken. I
have worked this out at the cost of considerable labor, and Ichallenge
its examination. If any one will take the prices current, at the nearest
market in the various producing sections, of the various products, he
will reach the same results; and while my averageis lower than at some
favored points he will find the prices for the different years will at the
same points bear usually the same comparative relations to each other,
7
and this must be remembered in the comparison of prices which I shall
make:
Average farm values of agricultural products in 1860, 1880, and 1882,
respectively.
Cereals. 1860 1880. 1882.
Wheat, per bushel..................................................... $0 72.0 $0 95.1 $0 88.2
Corn, per bushel........................................................ 43.0 39.6 48.4
Oats, per bushel 25.0 36. 0 37.5
Rye, per bushel - tº $ tº £ tº dº tº gº tº G & & © tº e º e º 'º º ſº tº g g g º º e º e 52.0 75. 6 61.5
Buckwheat, per bushel.............................................. 58. 0 59.4 72.9
Barley, per bushel..................................................... 55.0 66.6 62.8
Potatoes, per bushel................................................... 40.0 48. 3 55.7
Tobacco, per pound.................................................... 05.0 08. 2 08.4
Cotton, per pound............. - 09. 3 09. 8 09.9
Hay, perton..................................... • * * * * * * * * * * * * * * * * * * * * * * * * * 8 00.0 | 11 65.0 9 70.0

And sir, I want to call the special attention of my friend, Mr. Mills,
to a production which I fear he has left out of his calculation. Per-
haps he thought it inconsequential, but it is too large an interest, has
become so, not to have attention. I refer to the
BUTTEE AND CHIEESE PRODUCTION.
The butter production of farms, as reported by the Census of 1860,
was 459,681,372 pounds. Inclusive of that, not entering into the farm
enumeration, the entire product of the United States was about 500,-
000,000 pounds. In 1880 the amount returned from farms and factories
was806,672,071. The total product of the country was about 900,000,000
pounds. 't
The average price of butterexported in 1860 was 15 cents. As only the
poorer qualities were exported the average farm price is a little higher
than the seaboard price of export butter, and I estimate it at 16 cents.
The range of recent pricesis from 9 to 40 on the farm, with much higher
rates for a small quantity of “gilt-edged ” samples, yet the average is
still low, but is not less than 21 cents for 1880 and 22 cents for 1882.
The export price in these years respectively was 17.1 and 18.5 cents
per pound. r -
The production of cheese advanced from 103,663,927 pounds in 1860
to 243,157,850 in 1880. Including a little unenumerated, the actual
production would be about 130,000,000 and 300,000,000 respectively.
The average prices were about 93 cents in 1860, 93 in 1880, and 10.5
in 1882. There was a partial glut in 1880, which reduced the price.
The export prices of cheese are a little higher than farm prices—10 cents
in 1860, 93 cents in 1880, and 11.2 in 1882.
As a rule prices of butter are much higher in recent years than
twenty-five years ago. Cheese is now about 10 per cent. higher, as an
average.
The value of all productions of agriculture for 1879, exclusive of
about $400,000,000 of corn and hay consumed in the production of meat,
was, approximately, $3,600,000,000. This includes all meat products,
milk consumed, fruit, and various minor products not included in the
census tabulation of 1880. Of this about $400,000,000 (farm value)
was exported, leaving $3,200,000,000 for domestic consumption. This
gives about 11 per cent. for exportation, which is more than usual, the
range of recent years being 8 to 10 per cent. *
In 1859 the production aggregated a value of about $1,600,000,000,
8
of which nearly $200,000,000, was exported, leaving for home con-
sumption a value of $1,400,000,000. The per capita value of this con-
sumption is nearly $45 in 1860 against $65 in 1880.
Again, Mr. Chairman, I invite the closest examination of the figures
I have presented, and they prove, sir, an enormous increase in our farm
production and an advancement of price. And this brings meto the ques-
tion, Who consumes them? Who pays for them? Whose demand makes
these prices 2 And it will be borne in mind only 89 per cent. of them
are consumed here, and there are some very pertinent facts to which I
invite attention in this connection.
CONSUMPTION BY CLASSES OF OCCUPATIONS.
A statement of occupations of the American people by classes of in-
dustries shows that the proportion in agriculture is declining, the
number engaged in rural industries being 47.35 per cent. in 1870 and
44.1 per cent. in 1880. The other classes have increased accordingly.
This is a favorable indication, as not more than 30 per cent. of the
workers of a nation as rich in resources of production as Ours are neces-
sary to produce a supply for home consumption.

1870. 1880,
Occupation.
Number. Per ct. Number. Per ct
Agriculture.....................;................. 5,922,471 47.55 7,670,493 44. 1
Professional and personal....... • *-- - - - - - - 2,684,793 21.47 4,074,238 23.4
Trade and transportation................. 1, 191,238 9.53 | 1,810, 256 10.4
Manufactures © º 0 tº 2,707,421 21.65 3,837, 112 22. 1
Total occupations.................... 12,505,923 |............... 17,892,099 |...............
Total population 38,925,598 |............... 50, 155,783 |...............
As the numbers reported in occupations do not include the female
head of the family or children or infirm persons, each individual repre-
sents nearly three persons, the whole number being 17,392,099 in a pop-
ulation of 50,155,783, the persons represented in each class may there-
fore be stated as follows:
In agriculture -------------------------------------- 22, 118,700
In manufactures and mining ------------------------- 11,084,428
In trade and transportation -------------------------- 5, 216, 202
In professional and personal Services ------------------ 11, 736,453
Two-thirds of all are engaged in productive material industries.
About one-tenth, those in trade and transportation, are employed in
exchanges and distribution. The remainder, in domestic service, in
unskilled labor, and also those included in the professions, are con-
nected with or dependent upon manufactures, mining, and commerce,
and only to a limited extent on agriculture, as farm laborers are in-
cluded in the principal class of occupations. Distributing this class,
therefore, among the others, and allowing for the transportation service
caused by the presence of manufactures, the proportion of the popula-
tion dependent on manufactures and mining may fairly be considered
one-third of all; but to come within very conservative bounds we will
only claim three-tenths. With a probable consumption at present values
of three and a third billions of dollars, the consumption due to manufact-
9
ures and mining are not less than $1,000,000,000 in the primitive values
of the farm, which are materially increased by the profits of the mer-
chants and compensation of the carriers before reaching the consumers.
This is a sum equivalent to more than half the agricultural production
of the country in 1860.
A transfer of a small proportion of the labor which this industrial
population represents—a population now of not less than 17,000,000–
to the cultivation of the Soil would cause a disastrous glut in the agri-
cultural supply, a ruinous fall in prices, and a commercial revulsion
and general depression of values frightful to contemplate.
Already have we reached a point where greater diversity in agricult-
ural production is a vital necessity of American agriculture. Already
are we verging constantly on an unprofitable degree of overproduction.
Need I say more to demonstrate the dependence of the farmer upon
the other great industry fostered by our laws? It gives them a mar-
Ket practically at their farms, certainly greatly lessens the cost of trans-
portation, for that is shortened to the near village or not far distant
city where manufacture thrives; and that near market enables them to
diversify agriculture, produce its more varied and valuable fruits.
Lands nearest those markets are the more valuable because products of
greater value can be sold, and which the cost of a long transportation
with its delays and the cost and delays in Sale at a distant market ren-
der unremunerative. Without it where are they to market the fruits
of their labor and capital? An overproduction, every one knows, lowers
the prices, and now they produce 11 per cent. more than the country can
consume. In Europe; abroad—is that the answer? Well, I will come
to that by and by; but first let me a little further illustrate by compar-
ison the effect of our tariff upon the farmers. And I say, sir, with great
pleasure, I belong to them by ancestry, by birth, and breeding, and my
sympathy, yes, my prejudices, would not allow of a word or a vote on
my part against their interests.

VALUE PER. F.A.R.M.E.R.
The average value of production of each farmer was much greater
in 1880 than in 1860, notwithstanding the fact that the average size of
farms had decreased from 199 acres to 134, and the number of farmers
had increased from 2,509,456 to 4,225,945. Including values of farm
products which are not duplicated in meat production, the proportion
of each farmer was $638 in 1860 and $852 in 1880.
The value of farms, live-stock, and implements representing the per-
manent investment in agriculture made an aggregate of $7,980,493,063
in 1860, and in 1880 a total of $12,104,001,538. -
So far, what I have said has been more directly addressed to the in-
terest of the farmer, and I do not wish to lose sight of the fact that
while the farmer, the proprietor, has had these benefits from our pres-
ent system, is so dependent upon it, his laborers have shared propor-
tionately with him. There are 3,323,876 of them. And now a word
as to the
WAGES OF FARM LABOR.
The wages of farm labor fifty years ago were estimated by experts to
average $9 per month with board. The rise was slow until 1860. With
the development of other industries competition for labor increased the
rate of wages. The rate of wages paid wholly in cash twenty-five years
ago averaged about $14 per month. The rise was rapid during the war,
and in 1867 reached an average of $26, but declined with the apprecia-
10
tion of the currency to gold values, and still more from the effect of the
period of monetary depression, and reached its minimum in 1879. The
last investigation made by the Department of Agriculture in 1882, when
labor was in a normal condition and currency equal in value to gold,
was $18.58. An increase of fully 40 per cent. has been made since the
rise of the manufacturing system. “,
The differences in local rates illustrate the influence of an industrial
population in the midst of an agricultural district in a very striking
manner. In Northern Ohio, where Cleveland and Toledo and other
cities compete for labor in various industries, the average value in 1882
was $25.96 per month; in the western counties, with Cincinnati and
Columbus, Dayton and Springfield, agricultural wages average $24.75.
In the more exclusively agricultural counties of Eastern Ohio the
average is $22.65. By such a sliding scale is the rate diminished as a
penalty for lack of industrial variety.
Comparing the State of Ohio with Kentucky the decline is more
abrupt, from $24.55 to $18.20.
Illinois, like Ohio, has a sliding scale just in proportion to the num-
bers of workers outside of rival industry in northern, central, and
southern districts, from $27.52 to $24.65, and $19.87.
It was found in these investigations that in the period of manufact-
uring depression the wages of agricultural labor declined most in the
manufacturing States, and ultimately reduced the wages of farm labor-
ers in agricultural States. The assertion has often been recklessly made
that operatives and artisans thrown out of employment do not seek
agricultural labor, but these official investigations prove incontestibly
the contrary, and show that the effect is serious and far-reaching. The
average rate of wages in Massachusetts in 1879 was $25, and $30.66 in
1882. In New Hampshire the increase was from $19.75 to $25.25. So
with other manufacturing States.
And in this connection I will call attention to the decrease in price
and yet improvement in actual value in those implements of husbandry
in use among agricultural workers, grass-mowers and grain-reapers,
Wagons, and others. And, sir, I believe I can confidently appeal to the
recollection of the farmer that, taking into account quality, the prices
will average 25 per cent. iess now than in 1860. And this has been
the result of a system of protection which, guaranteeing a home market,
invited capital, organized labor, and educated it to the highest excel-
lence, stimulated invention, and produced competition in these produc-
tions and these labor-saving machines, enabling the farmer while he
pays higher Wages for labor to employ far less to accomplish far greater
results. And thence it is that we are able to show a larger production
at the same cost now than we were 1860.
I have promised to again refer to the great question of what the
American farmer shall do with his surplus, and whether he can safely
depend upon a foreign market for it. And I propose to present a few
facts in regard to the wheat production of the world and the possibili-
ties, yes, probabilities of that production, and leave it to those who
bear or read what I say to judge if a foreign market can be depended
upon.
The United States now stands at the head of the wheat-producing
nations of the world. Until 1874 France held the first rank. The
wheat area has nearly doubled since the ninth decennial census was
taken. The product of the last seven years has averaged 436,000,000
bushels. The production has increased from 100,000,000 bushels in
11
1849 to 504,000,000 bushels, and the per capita supply from four and a
third to nine and a half bushels. One-third of the production has for
six years been exported.
This was very wellin years of failure and threatened famine in West-
ern Europe. But in 1882 the usual average of 1,143,826,044 bushels
was increased to 1,270,000,000. The surplus of this country was esti-
mated at 48,000,000 bushels. India produced an excessive crop. Aus-
tralasia had an enlarged product, and Egypt, Algiers, the Argentine
Republic, and Chili helped to swell the supply of the world. During
the entire year past the visible stocks have everywhere been increasing.
What are we doing? Simply co-operating with Great Britain in her
extraordinary endeavors to feduce the price of wheat, to sustain free
trade by giving cheap bread for the sustenance of low-priced labor. To
this end she is building railroads in India and promoting railroad ex-
tension through the Dominion of Canada to the Pacific, and seeking to
control the destinies of Egypt and other nationalities.
The effect of this overproduction is seen in a disastrous fall in the
price of wheat below a remunerative basis.
The average product of wheatin British India, as given by Sir Evelyn
Baring, the finance minister, was 700 pounds, or 113 bushels per acre;
and the acreage 21,000,000, making a product of 245,000,000 bushels.
A recent officialestimate makes the product of 1883 (harvested in March)
190,000,000 bushels for British India and 50,000,000 bushels for the
product of native territory.
The unoccupied cultivable land in the principal provinces is officially
estimated at 182,069 square miles, of which 83,600 square miles are in
provinces where 25 per cent. of cultivated area is in wheat. It is there-
fore possible that the area might be increased 12,000,000 to 15,000,000
acres, and with increase in native districts it is not impossible to double
the present area.
Increase of railroad facilities would render available at once a larger
proportion of the present production and stimulate somewhat the ex-
tension of area. The mileage in March, 1883, was 10,251, and an in-
crease of 7 per cent. is calculated for the present year. -
The exports of India in the fiscal year ended March, 1873, amounted
to 3,277,781, and in 1882, 37,148,543 bushels. In seven months of the
past year the shipments had reached 31,027,074 bushels, fully 50 per
cent. more than had ever been shipped in the same period of any pre-
vious year. The exports of five years, from 1879 to 1883, averaged
16,786,265 bushels. So the increase of ten years has been in rapidly
accelerating ratio.
In Australia the present wheat crop is more than double that of 1883.
The increase in South Australia, according to recent estimates, is from
7,356,117 bushels to 20,900,000, and in Victoria from 8,751,454 to 17,-
400,000 bushels. The value of wheat in Australia is from 3s. to 3s.6d.
per bushel, or 80 cents per bushel. In New Zealand the farmers are dis-
carding primitive and exhaustive wheat growing, importing fertilizers
and agricultural machinery. The average yield in 1882 was nearly
twenty-three bushels per acre. -
The progress of agriculture in the Argentine Republic is at present
very rapid. Much of the soil is a deep, black mold, very productive.
There is a strong movement from pastoral to general agriculture, to-
ward inclosure of pastoral areas and the practice of mixed husbandry.
The average export value of Russian wheat from 1873 to 1880 was $1.01
per bushel. The quantity exported was 475,000,000 bushels, or an aver-
12
age of 59,375,000 per annum. And confronting these startling facts,
are we to be told Western Europe will take our surplus and that we
can safely destroy our manufacturing industries and change their op-
eratives to producers from being consumers?
I have shown you that 30 per cent. engaged in agriculture will sup-
ply themselves and the balance of the population, and that we now
have 44 per cent.—14 per cent. above the required number now—and
we have a large overproduction. Take but 10 per cent. from manu-
factures, 270,742—the present production per capita in agriculture is
about $400—and the result is an increase of our present surplus of
$108,296,800.
Seriously, I ask gentlemen on the other side, would you make this
an agricultural country? Then please give us some of the results from
your standpoint. If we were all farmers, all producers of farm
products; if we had been, say, for the last twenty-five years, and both
the emigration to this country and the natural increase of the popula-
tion had gone to the land for support, what price would these products
now bring, and where would they market them?
And, Mr. Chairman, now I come to the humorous, ridiculous, or de-
ceptive illustrations, depending upon the talent of the inventor, to con-
Vince the farmer that he is being robbed in the high price he is com-
pelled to pay for the articles he consumes, and Mr. Sidney Smith's (I
think he was the author) story of taxation has been dished up in a hun-
dred different forms, and with countless variations, to illustrate the
exactions and robberies of our present tariff system.
Gentlemen have forgotten that while agriculture has made the ad-
vance I have described so have the other industries, and with this
prosperity knowledge has been disseminated, education has been ex-
tended, the press has prospered, books have been written, the census
has been taken, statistics published, and thought quickened, deepened,
and broadened with all the people—at least, sir, with all the people I
have much knowledge of in this country; certainly in all those com-
munities where the twin and dependent industries farming and manu-
facturing both thrive without jealousies, and where thrift is the rule
they have grown rich. The people have grown rich—not the few, as I
will soon show, but all the people—and property has brought knowledge
and education, dispelled prejudice and ignorance, and you face an audi-
ence that will trip you if you make a single mistake.
I propose to make a comparison of prices for 1860 with those of 1880
of those goods farmers consume, and you will bearin mind I have taken
my prices from an Eastern market, to which for other sections trans-
portation should be added, and, unless I made the exception, the re-
tailer’s profit, and I assume this profit and transportation to be the
same for both years.
In 1860 John and James Dobson, of Philadelphia, and for several
years prior and Subsequent to that year, were among the largest manu-
facturers of blankets and woolen goods in the United States. From
their books of original entry I am furnished the following list of aver-
age prices for blankets during the years 1858, 1859, and 1860 compared
with the average prices prevailing in 1882 and 1883 for like quality:
1860...... $2.00, $2.50, $2.25, $3.50, $3.75, $5.00, $7.50, $8.00, $10.00, $13.00
1883.............................. $1.25, $1.80, $1.62}, $2.35, $3.20, $3.75, $5.50, $5.60, $7.25, $8.50
The above includes the entire line of white blankets from the lowest
to the best grades per pair, standard make of what are known as plain
Norway blankets. The figures show a decline of 30 per cent, to 60 per
13
cent. in favor of the present protective system over the “for-revenue-
only ” or free-trade system that prevailed prior to 1861.
The wool used in the manufacture of these blankets is about 6 per
cent. below the average price in 1860. All wools are based in valuation
on Ohio fine fleece, which in 1860 was worth 45 cents per pound, and which
is worth now 42 cents per pound. Blanket wools are of lower quality,
but have the same relative value. Their books show “coarse woolen
fabrics carry out the same relative rates as blankets, particularly goods
used for overcoats. These were worth in 1860 $1.50 per yard. The same
goods are sold to-day for 80 cents to $1 per yard. In the entire Tange of
Woolens used for wear of men and women the same relative difference ex-
ists, the present prices being from 30 to 60 per cent. below those prevail-
ing in 1860.”
How is it in reference to carpets? From 1857 to 1860, both years
inclusive, the average price per yard of five-frame English body Brus-
sels carpet in England was 4S. 10d., equivalent to $1.10 of our money.
The same class and quality of carpets of American manufacture are
to-day selling for $1.07 cash. Tapestry Brussels carpets sold in 1860 at
75 cents per yard, and are sold here to-day at 67 cents for like quality.
Standard make of American ingrain carpets sold in 1857–1860 at 75 to
80 cents per yard, and are now sold at 60 to 67 cents.
And I here give another list of comparative prices of 1860 with 1884,
which will be very instructive to those who claim our protective policy
has not cheapened woolen goods. The prices are taken from an account
of goods of like quality actually sold:

Articles. 1860. 1884.
Pair Middlesex bed-blankets, net wholesale price...................... $2 75 $2 55.
Pair Norway plain all-wool bed-blankets, net wholesale price... 4 00 3 75
Made-up horse-blanket, burlap lined, wholesale price.............., 2 00 I 20
Samples of Fitchburg cassimeres, all wool, 27 inches wide,
wholesale price ........................................................................ I 05 92.
Samples of Haile & Frost cashmeretts, 27 inches wide, average .
Wholesale price ........................................................................ +51 42
Samples of fancy cassimeres, 27 inches wide, wholesale price ... 65 50
Let us examine the prices of cotton goods under the revenue tariff
of 1857 and the protective tariff of 1861 and subsequent years. I have
here a table of prices for sheetings and shirtings, prepared by the firm
of Richardson, Smith & Co., and taken from their books of original en-
try, and which show a difference of from 20 to 30 per cent, in favor of
present prices. Here are the figures, those for 1860 being the average
prices per yard for that year and those for 1884 being the average prices.
per yard for March, 1884: - -

* Articles. 1860. 1884.
Standard sheetings................................................. & $0 08.73 || $0 06.75.
Standard drillings.................................................................... 08. 92 06.75
New York Mills bleached shirtings....................................... I5. 50 10. 00.
Cocheco and Merrimack prints............................................... 09, 31 05. 43
64x64 print cloth .......................................................... 05. 44 03. 50-
14
I have a statement made from the books of other firms.
Wholesale prices, per yard, of leading Standard Staple goods bought by country
dealers, January, 1860, with prices of January, 1884, anmeaſed.
Articles. 1860. 1884.
4–4 heavy brown sheeting........................................................... $0 08; $0 074
4–4 fine brown sheeting.......... tº ſe e º 'º e º g g g g g g tº & e º G & º ºs e < e g g g g º ºs e º $ tº s e º & tº g º 'º tº & © tº e º 'º tº t tº 08; 07
4–4 fine bleached sheeting .......................... • * * * * * * * * * * * * * * * * * * * * * 12# 10
4–4 common bleached sheeting.......... • * * * * * * * * * * * * * * * * * * * * * * * * * 09; 06}
Best ticking........................... tº e º 'º º $ tº e º te e s e º tº e º is s tº e º 'º e tº e º tº º º tº dº e º 'º tº º t e º 9 tº e º is e º º e º 'º tº e 17 14}
Best denim. 15; 14}
Lining, colored cambrics........................................................... - 06# 05
Corsetjeans........................................................................• . . . . . . . 09; 07;
Ginghams 10} 08
Standard prints..............................................'............................ 08} 06
Hublet's cotton flannel .............................................................. 13 11
Good twilled flannels (wool) ......................................... ........... 36 86
Good Kentucky jeans........ • --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 27# 27+
Under the tariff of 1857 the duty on ordinary white crockery-ware
was 24 per cent. ad valorem. Prior to March last the duty was 40 per
Cent. In 1860 a crate of crockery-ware was sold, including duty, for
$95.30. In 1882 a crate of this same ware, including the increased duty
of 16 per cent., was sold for $57,89; a difference of $37.41, which differ-
ence is owing to the establishment and successful prosecution of this
industry in this country.
How is it with boots and shoes? These necessary articles of wear are
not only better now in quality and more varied in variety than in 1860,
but prices are lower than during the period from 1857 to 1860. Here
is a table showing the prices prevailing in January, 1860, and January,
1884.

1860. 1884.
Per pr. | Per pr.
Men’s rubber boots § tº $ tº tº tº º a s e e º 'º º & g º & tº e º 'º º e º e e g º ºs e º 'º & e e º e s e $3 00
Boys' rubber boots..... tº £ tº e º ſº & © º e º ſº tº º e º 'º e º e e s tº ſº a tº e º $ tº dº & © tº e º & & © tº e º tº t e º tº dº tº e s e º e º º g º º e º 'º º tº 2 40 2 18
Women's rubber boots........ tº s e º e s s e º e º e s tº e s tº e º ºs e a < e < * g e a e º 'º e º 'º e º e ‘e e s e e s a e s = < e s s e s a 1 75 I 56
Misses' rubber boots.................................................... * * * e s e s e º e s e o a L 50 I 33
Men's overshoes......................................................................... 80 55
Women's overshoes.............................................. * * * * * * * * * * * * * * * * * * * * * * 60 38
Children's overshoes.................................................................. 40 30
Men's best calf machine-Sewed boots.......................................... 4 00 3 00
Men's best calf pegged boots..................................................... 3 00 2 75
Men's good common calf pegged boots...................................... 2 50 2 17
Men's best thick boots, farmers' wear ........ 3. * * * * tº e º º $ tº e º e º 'º e º & tº e º 'º e º e º e º e e 2 75 2 50
Men's good common boots, farmers' wear ................................ 2 25 2 00
Boys' good common boots, farmers' Wear.................................. 1 62 I 50
Men's good double-sole kip brogan............................................ 1 37+ L 25
Men's good double-sole split brogan 1 15 L 10
Men's good common split brogan..... * * .........] 1 00 85
Men's best calf machine-sewed Congress and Balmoral.............] 3 50 3 00
Men's good common machine-sewed Congress and Balmoral ..] 3 00 2 75
Men's good common buff Congress and Balmoral .................... 2 00 I 65
Men's good common pegged Congress and Balmoral............... I 60 L 25
Men's good common low-cut shoes............................................ L 17 1 00
Men's carpet slippers................................................................... 50 37%
Men's goat slippers ... tº ſº e º ſº tº gº tº e º gº º ſº e º ſº tº $ tº e º 'º & & © tº e º & e e º e º e º g º e I 00 85
Men's grain slippers ..................................... 65 55
Wrmen’s best kid and goat boots............................................... 2 00 1 75
W men's good kid and goat boots............................................. 1 50 1 25
•
15
1860 1884.
Women's best serge Congress. .............................. I 25 L 05
Women's good serge Congress................................................... 92 80
Women's grain-pegged Polish boots.......................................... 87# | 85
Women's goat gored Benker's boots.... ë º e º º º e º 'º e º ſº tº e º e º º e º 'º 92 80
Women's serge slippers.............................................................. 50 37+
Women's web slippers............................................................... 37+ 25
Boys' good kip brogans.............................................................. 80 75
Boys' good Congress............ 1 10 1 00
Boys' good split pegged Balmorals............................................ 1 10 1 00
Youths' good split pegged Balmorals....................................... 95 85
Misses' best kid or goat Polish ge e º e º ſº e º ºs e e s e º º 'º 6 tº e º & # * * * * * g e º 'º e º s sº e & I 50 I 25
Misses' good common button....... tº e s e º e º e º e º e º e s is e e s ∈ is a tº e s tº e º e º is e e º e º e º e º e s a e º º 75 75
Children's best kid and goat ...................................................... L 25 1 05
Children's good common goat................................................... 1 00 85
Children's cheap shoes... tº & $ º & º e º 'º º º º 'º e º 'º e º ºs º º º Aº ‘º & E * * * * * * * * * * * * * * 25 20
Idesireto dwella little longer upon woolen goods, they enter so largely
into consumption and are in so general use. In no department of manu-
facture, I concede, is there such a difficulty of making a comparison of
prices at different periods as in the woolen manufacture, on account of the
differences of style, finish, andraw material of the fabrics from year to
year. I have confronted all this in my investigations. The only arti-
cle forming a proper standard of comparison is flannel, which is the
basis of all card-wool cloths. In a report made to the Syracuse conven-
tion in 1871 the following statement was made by the secretary of the
National Association of Wool Manufacturers:
Reliable returns from the two leading agencies in the country, representing
more than twenty different establishments manufacturing ſlannels, show that the
selling prices of flannels in September, 1869, two years after the passage of the
tariff of 1867, were in one house 21 per cent., and in another 16 per cent. less in
gold than in 1860. On the other hand the books of a mill producing cloths more
and of greater variety than any other establishment in the country, and em-
ploying 2,500 operatives, show an advance in wages in gold from September,
1860, to September, 1869, of 37 per cent. for female operatives and 50 per cent. for
male operatives. The secretary of the Wool Manufacturers' Association in his
annual report in October, 1880, says: -
“The present year affords us the first opportunity for many years of making
an exact comparison with the prices of 1860, since our currency is of the same
value as at that period.
“Those most familiar with the markets estimate that ordinary woolen goods,
constituting the great bulk of consumption, are now obtained by consumers
from 12# to 25 per cent. less than goods of the same quality could be purchased
* before the war. To be more specific, ingrain carpets, the principal article of
consumption in this class, was sold at 12# per cent. more in April, 1860, than in
April, 1879, with wool about the same, but an increased cost of labor in the same
period. I am authorized to state that dress goods selling in 1860 for 20 cents per
yard are now, in 1880, selling for 15 cents per yard, a saving of 25 per cent.; that
the saving to American consumers in the product of five mills in New England
making dress goods of an annual value of $10,000,000 is $2,500,000, and this too
with higher prices of wool to the farmer and better wages to the operatives.”
Since 1880 the reduction of cost in dress goods to consumers has
gone on with accelerated ratio. I have in my hands a return from the
Pacific Mills, the largest mill for producing this style of goods in this
country, which is as follows:
“I give you below the average net prices obtained for our worsted goods for
the period of six months, ending—
Cents per yard.
0.06
May 31, 1877 .................................................................................................. 16.82
May 31, 1880 .................................................................................................. 15.43
May 31, 1881 .................................................................................................. 14.52
May 31, 1882 .................................................................................................. 11. 22
16
Since 1882 the goods made have been of higher quality than the above, and
the prices obtained have averaged a little more, though really a little lower in
proportion to cost.
A statement from another mill manufacturing woolen fabrics proper,
the oldest and one of the most extensive establishments, shows the
greatest reduction of prices to consumers under the operation of a pro-
tective tariff. This statement, be it remembered, was not prepared for
the use to which I apply it in this debate.
Memorandum of market values of the leading fabrics of the Middlesex Company, Low-
ell, Mass., for the years 1870, 1880, amd 1884.

Fabrics. - 1870, 1880 1884
6–4 repellant sacking ........ © tº e º & © tº e º e º 'º º ſº tº e º e s tº $ tº s º e º tº º ſº w & 6 tº dº s & e º & & 8 e º $ tº º $1 16 || $104 |............
6–4 blue Super cassimere.................................... tº $ tº at e º & e º sº tº € $ 4 00 3 75 $3 50.
6–4 blue prime cassimere................................................. 3 75 3 50 3 25
6–4 indigo standard flannel............................................. 2 07 I 82% 1 75
6–4 indigo yacht cloth...................................................... | 2 50 2 25 2.25
6–4 blue railroad overcoating.......................................... 3 50 3 25 3 25
6–4 indigo cadet cloth...................................................... 3 00 2 75 2 75
6–4 blue police cloth................................... .................... 3 00 2 75 2 79
6–4 fancy shawls, 144x72 inches each.................... * * * * * * * * * * 6 15 5 56 |............
The difficulty of comparing the prices of 1860 and 1880 is enhanced
by the circumstance that the records of many of the mills in New Eng-
land for 1860 were destroyed by the great fire in Boston in 1872. Mr.
Horace Greeley’s work on political economy, however, contains a state-
ment of the prices of the most important woolen fabrics of 1859.
At my request, a gentleman skilled in Woolen manufacture has added
to Mr. Greeley’s list of prices for 1859 the prices, obtained from manu-
facturers or selling agents, of the identical goods named, the prices at the
present time. The prices for 1884 were furnished by the well-known
houses and individuals, Parker, Wilder & Co., Faulkner, Page & Co.,
J. B. Bradlie, J. D. Sturtevant, Wendell, Fay & Co., of Boston. In
respect to a portion of the goods described in Mr. Greeley’s list it may
be observed that no corresponding goods of the manufacture of the
present year could be found.
“The prices of the most important woolen fabrics ten years ago, 1859 (when
we had comparative free trade in wool and woolens), and now,” says Mr. Gree-
ley, “are as follows, namely.” I add to his column the prices in 1884:
Comparative prices of woolen fabrics in 1859 and 1884.

Fabrics. 1859. | 1884.
Flannels per yard:
A and T white (none made in 1884) ............. & & e º ºs tº $0.18%|........... º
A. A. F. Scarlet..................................................................... tº gº e s e º s 26 $0 24+
J. R. F. twilled Scarlet ** * * * - 39 28}
B. twilled scarlet............................................................ 26 25}
Double-weight Scarlet tWilled..................................................... 27; *323
F. and O...... & sº s e º 'º º & 4 & 8 tº º tº tº tº º e º 'º e º 'º ºn tº $ tº tº e g º $ tº $ tº e s e tº $ tº $ $ ſº tº º ſº tº t t t e º 'º e e s e º e º tº e º e e º gº e º 36 33#
Talbot, R., 3–4, plain and Scarlet................................................. 26 25
Ballard, bale, 4–4, white No. 1...... tº sº º ſº tº ſº e º tº s $ tº e º e º º ſº tº s e º e º gº tº $ $ tº 75 674
Ballard, bale, 4–4, White No. 2..................................................... 60 40+
Ballard, bale, 4–4, white No. 3..................................................... 45 7}
Ballard, bale, 4–4, White No. 4..................................................... #40 42%
17
Comparative prices of woolen fabrics, &c.—Continued.
*

Fabrics. 1859. 1883.
Blankets per pair.
Holland, 10–4, all wool................................................................. $3 50 $3 OC
Holland, 11-4, all Wool................................................................. 5 00 4 25
Cocheco, 11–4, extra Super ............. • - - - - - - - - - - - - - - - a ſe e 6 00 6 00
Cocheco, 12–4, extra super ......... ‘................................................. | 7 50 6 00
Cumberland, 10–4........................................................................ 3 00 2 00
Rochdale, 10-4, Super ex. Super.................................................... 3 50 3 00
|Rochdale, 11-4.............................................................................. 4 50 4 00
Rochdale, 12-4.............................................................................. 5 50 5 00
JRochdale, 10-4.............................................................................. 4 50 4 00
12ochdale, 11–4............‘.… 5 50 5 00
Rochdale, 10-4, premium ............................................................. 4 50 4 00
Rochdale, 11–4................................................................................ 5 50 5 00
Rochdale, 12-4.............................................................................. 6 50 6 00
Shawls, Middlesex County................................. & a tº s e s ſº e s e g = e is e e e e s s a º a s 7 00 5 56
*These goods are improved in quality.
fThe Ballard Vale flannels are exceptionally fine goods, the chief cost of which
is labor, and are slightly advanced because of the advance in wages of labor.
The above statement is entitled to more consideration because it was
not prepared by manufacturers to suit a purpose. It is all the more
reliable because of the moderate reduction it shows, and because an in-
crease in price in Some cases is stated. It shows upon the whole a sub-
stantial reduction, and this in face of the fact that the wages of labor
have increased, as is declared, 15 to 20 per cent. Upon the whole there
bas been considerable reduction to the consumer, although the duties
upon all the articles have been more than doubled by the successive
tariffs of 1861, 1863, and 1867; so that this table furnishes a complete
refutation of the free-trade assertion that the prices of goods are en-
hanced to consumers in proportion to the increase of the duties.
As to finished cloths not included in the above list, such as fancy cas-
simeres, of which the great bulk of clothing goods is composed, it should
be observed that only a few of the old mills continue to make cloths
identical with those made before 1860. I have, however, samples from
two such mills which illustrate the general reduction of prices in this
class of goods. They are:
Articles. 1860. 1884.
& * Per yd. | Per yd.
Fitchburg all-wool cassimeres, 27 inches wide, wholesale price..] $105 $0 92
Hall & Frost cassinneres, 27 inches wide, average wholesale price. 51 42
Rancy cassimeres, 27 inches wide, wholesale price......... tº e a g e º e º 'º e s tº g 65 50
Enthusiasts for protection may be disappointed that its friends can
adduce no more startling illustrations of the effect of protective duties
in reducing prices; but it must be remembered that the manufacture of
the fabrics last referred to was firmly established years before 1860, and
after the first effects of the introduction of a new fabric in reducing
prices the further reduction is slow and gradual. The most striking
effect of protective duties is seen in the introduction of new fabrics.
The invariable effect of such an introduction by domestic manufacture
df an article formerly obtained only abroad is invariably to reduce prices.
HI—2
\ 18
Thus, delaines at their first introduction in about 1840 cost from 30 to 40
cents. They soon fell to 20 cents. Lawns, introduced in 1846, cost 27
cents. In a few years they fell to 9 and 10 cents. Kerseys, introduced in
1851, cost $2. In twelve months afterward they fell to $1.25. The in-
troduction of lastings diminished the price one-third; that of buntings
more than one-half. French moquette carpets cost, when first introduced
here about fifteen years ago, from $2.50 to $3.50 per yard according to
quality. The American manufacture, commenced shortly after, reduced
the price to $1.45 per yard, while American machinery, stimulated by
ourtariffs, introduced abroad, has diminished the price in all manufactur-
ing countries of the world.
Refined bar-iron is used to make wagon-ties, horseshoes, agricultural
implements, and many other articles in which the farmer has direct
interest. I insert a table showing a lower value for the last five years
than for the five years ending with 1860. [See table on page 19.]
I shall not present comparative tables of the values of all the iron
and steel goods for the two periods—these metals are largely used in the
machines and implements which have been largely reduced in price since
1860, the fashions have not changed in iron and steel goods so as to make
comparison difficult—but I will take for comparison the material of
which they are made, and upon which the duties are alike imposed.
[See table on page 19.] An examination of the prices of . No. 1
anthracite foundery pig-iron shows that it is lower now than from 1855
to 1860 inclusive. [See table on page 20.]
It will be sufficient now if I make comparison of prices of a few ar-
ticles in such universal use, and unchangeable in character, that will
be recognized by every farmer. I invite attention to them. I give the
wholesale prices in an Eastern market, to which transportation to suit
other points and the retailer’s profits must be added. A reduction is the
rule, and without an exception. Nails, in 1860, sold at $3.10 to $3.50
per hundred pounds, to-day at $2.40 per hundred pounds; Yankee axes,
in 1860, at $10.75 per dozen, to-day the same goods sell at $7.25 per
dozen, manufacturers' prices at both periods.
The prices of cable chains in use among farmers (per one hundred
pounds) were:
Size. 1860. 1884.
Five-sixteenths inch............................................................... $5 63–6 25 $5 50
Three-eighths inch & ſº e ........................ 5 06—5 50 4 50
One-quarter inch.................................................................... 6 56 6 50
After an exhausted examination, I assert that the iron and steel used
by farmers, in whatever form used, into whatever machine, tool, or im-
plement fashioned, costs from 10 to 20 per cent. less now than in 1860.
For like quality of goods the average reductionis more than 12 percent. ;
in many of the prominent articles it is 20 per cent.
There is one more article of consumption I must mention, glass. The
taxation of the poor man's window-glass that gave him heaven’s light
has been So often glowingly dwelt upon that it deserves a passing no-
tice. I have time to take but one quality or grade, but that illustrates
the whole list.
According to the best data attainable, plate-glass cost the consumers
of the United States, prior to the Morrill tariff of 1861, about $1.50 per
19

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21
Square foot; from passage of this bill to establishment of factories in the
United States the price was about $2.50 per square foot. The price
at presentis about 80 cents per square foot. And you will please remem-
ber that no part of this large reduction is due eitherto improved meth-
9ds or improved machinery, but solely to sharp competition of Amer-
ican factories. º
In 1882 there were in round figures 3,050,000 square feet of polished
plate-glass imported into this country. This glass, at prices ruling be-
fore the Morrill bill, would cost $4,575,000; before the competition of
American factories, $7,625,000; now, $2,440,000. ar
The difference is very large; and bearin mind that the difference above
shown is but for one year, and to multiply it by 10 will give a fair idea of
the amount Saved to the consumers of our country by home competition
in plate glass. To go more into details, the treasurer of one of the Amer-
ican factories has in his possession the books of a firm of glass dealers
doing business from 1863 to 1870. I compare herewith prices per square
foot then and now:
1868-70........................................... $3 05 $2 26 $1 66 33 39 $3 26 $2 09 $2 07
Wow............................................... 93 95 76 1 04 97 73 92
1863-'70........................................., 1 68 I 98 2 11 367 2 62. 1 74 l 88
Now............................................... 93 97 S8 1 07 97 94 - 69
Please also bear in mind that prices named from 1863–70 were the
prices the firm of glass dealers paid for its goods. The prices named for
the present are present prices to consumers, and for comparison from 20
per cent. to 30 per cent. should be added to the prices of 1863–270 to
cover freights, insurance, profits, &c.
The reduction in the price of certain lines of goods can not better be
illustrated than by the statement of facts appearing in the report of
our foreign commerce. In the fiscal year ending June, 1883, we exported
and Sold abroad:
Wood and manufactures of wood........................................................ $20,996,304
Iron and steel, manufactures of.......................... & e º e s tº s tº e º e º e º e º e º º 19,240,894
Manufactures of cotton........................................................................ 12,951,145
Leather, and manufactures of............................................................. 7,923,662
Agricultural implements..................................................................... 3,883,919
An aggregate of.......................................................................... 64,995,924
Without my going into detail, all who hear me and who read what I
may say will understand the above exportations include and are made
up substantially of those articles of which farmers and farm laborers are
the great consumers and of a large portion the only consumers. How,
then, does the tariff advance the price to them, since by American com-
petition, American thrift, energy, and ingenuity, our people undersell
their foreign competitors outside of the jurisdiction of our tariff laws
in foreign markets? -
It is a well-known fact that as to very many lines of goods, and es-
pecially in those consumed by the agricultural and laboring classes, we
do not need protection, and the articles might properly be placed upon
the free-list; and except for the great difficulty in drawing statutes
which will describe and observe the distinctions, and for the further
reason the present laws do no actual harm, would be. I have said the
laws imposing customs upon goods we export do no harm. A tariff
debate does not justify that remark, since participants in it will attempt
to prove that burdens are imposed by our system of protection by as-
serting the price of certain goods are increased thereby, when they
22
must know we manufacture those goods for the markets of the World
and successfully compete with the foreign manufactures; and thus they
furnish another illustration of the dishonesty that will be resorted to
in gråer to gain a political advantage.
But the question is suggested: why these great reductions in price?
And I will answer: for the five years ending with 1860 we bought
goods largely abroad and paid for them froun our agricultural products,
but we did not export enough to pay for what we bought; the bal-
ance was against us in amount $133,616,201. The accumulated prop-
erty of the country was going out of the country at the rate of from
$20,000,000 to $50,000,000 each year. We did not raise enough annually
to pay our annual cost of living. As a people we were growing poorer
and poorer every day; and we had no home competition in goods we
bought. We paid the price the foreign market put upon them, interest
was high, and we did not have a competitive home market.
Mr. HERBERT. Permit me to ask the gentleman a question.
Mr. HISCOCK. Certainly.
Mr. HERBERT. If goods, say crockery, have not fallen more rap-
idly there than here, why is it that in the last revision it was necessary
to raise the duty on crockery-ware?
Mr. HISCOCK. I will come to that in a moment and completely
answer the question.
Mr. HERBERT. I hope you will not forget it.
Mr. HISCOCK. I will not; and I hope the gentleman will not for-
get to study the suggestive schedules I will publish with my remarks.
The Republican party came into power and enacted our present protec-
tion laws commencing with 1861, and subsequently those laws insured a
home market for American goods, and we bought at home; the money
ceased to flow out of the country to pay our debts abroad, and in the last
eight years of this protective policy we have accumulated $1,307,229,276
of yearly balances in our favor. Europe has contributed this great
volume of wealth to us. To this for the eight years add the gold and
silver product of the country, amounting to $80,000,000 annually, and
which we have not been compelled to export to settle yearly balances
in trade against us; the money is in the country; we have had it as
a people for use. The rate of interest grew lower year by year; the
average reduction throughout the country has been 25 per cent. of the
rate in 1860. This capital sought investment, was employed in manu-
factures, it organized labor; home competition educated men in new
and more economical methods and processes of manufacture; it ex-
tended railroads, discovered and developed new coal-fields and copper
and iron ore beds; caused sharp competition in what my colleague
would call raw material, and cheapened it all. It was a sturdy con-
test among our own people for support, property, and the life of their
industries, respectively, and prices slowly but surely fell, and yet the
industries were fairly prosperous. The saving in the cost was what low-
ered the prices.
We are told in this connection that the rich have grown richer and
we have created monopolies. I assert that all have grown richer, and
that competition as a result has been extended. I have already ex-
hibited the increase to the farmer; the laborers have grown richer, and
I mention to you that in 1883 the savings-bank deposits were $1,024,-
856,787; and these deposits are in States or localities where manufact-
ure is side by side with agriculture. The Savings-bank deposits of New
York are $500,000,000; and this immense volume of capital is seeking
23
investment at 5 per cent. upon the dollar per annum, or less. It is a
fact that the young farmer usually starts out with a mortgage upon his
farm, and in the savings-bank centers he pays this low rate of interest,
and in 1860 he paid 7 per cent. or more. I am now speaking of the
East. The rates for both periods are higher West, but there is this
corresponding difference between the two years.
But I am asked, why maintain the tariff if prices of goods are lower
than in 1860, and if I claim if we reduced it there would not be a re-
duction in price? I do not claim there would not be a reduction in
price temporarily. If we made a reduction in price the surplus goods
of other countries would be thrown upon us, and their manufacturing
industries would be stimulated and our own industries would struggle
for a while against it and the market would grow lower here. Our
manufacturers in the end would be ruined, would yield to inevitable
bankruptcy, our home market for our agricultural products would be
impaired, the foreign producers would take the field and in time adjust
their production and exportation to our market to the consumption and
control it, and prices would advance above the present rates.
Such has been the history of the past. I for one believe that an ab-
solutely protective tariff upon all goods in which there can not be a
monopoly in the long run would be for the advantage of our people;
for we accumulate wealth here very fast in the production of the fruits
of the earth and the products of our mines, and that wealth would be
poured into manufacture and we would have that competition here
which would make very low prices; but the theory upon which we im-
pose customs is to protect the American producer, and yet constantly
force from him the lowest living prices, lest he be undersold with
foreign goods and thus make a competition between the two. I am
content with it. But the avowed purpose of the impending bill is to dis-
turb this policy, break it down; and that the majority of the commit-
tee did not go further is due, as I understand it, to the fact they thought
they could not accomplish more now.
And it is said the revenues must be reduced. Who can tell us this
bill will reduce the revenues 2 That is all a pretext, and gentlemen
know it. There is a sure and certain way to reduce revenues. You
can remove the internal-revenue tax from tobacco, and thus reduce the
revenues $25,000,000; and I assert this tax is levied directly upon the
poor, the article is consumed by them—it is the men of wealth who
buy the imported article—and they will have it, and there is no pre-
tense that the tax limits the consumption, or that the consumption
should be limited by it more than of tea and coffee and many other
articles in constant, universal use.
You may pass a law removing the tax from all distilled spirits used
in manufacturing or in chemical combination that will not permit of its
use as a beverage. I think I understood my colleague the other day to
admit I had pressed the consideration of this question upon the Com-
mittee on Ways and Means. While you can not get at it very accu-
rately, I believe this would reduce the revenue $30,000,000 a year, and
by reducing the cost of the distilled spirits thus used would promote a
still further consumption in those ways and extend the consumption
of grain from which they are made, extend the market, and in the
uses I have indicated the tax adds to the cost of useful and necessary
articles of consumption by all classes. The tax is a tax upon the con-
Sumer. I would not remove the tax so far as it is imposed upon dis-
tilled spirits or the products of them consumed as a beverage; but there
24
is no difficulty in formulating a law that will observe the distinction,
and continue the tax upon the beverage in every form.
But, sir, the authors of this measure do not care to reduce taxes.
They want an issue for the next Presidential campaign which is so near.
I doubt if they want this bill passed before then in both Houses of Con-
gress; they want it pending.
The product of our manufactures is annually five and one-half bill-
ions of dollars, the annual production of the non-precious minerals.
entering into manufacture is nearly one hundred and fifty millions. The
chairman of the Committee on Ways and Means and his party associates
have declared War upon and propose to destroy this property, bankrupt
its possessors, and pauperize the millions that it now pays the wages of
laborto, wages of labor that support families, that educate the young, and
give homes and the comforts and pleasures of life to more than twelve
millions of our people. Thesegentlemen would impoverish those homes
pauperize the families, rear the childreninignorance—and poverty andig'.
norance are the parents of crime and vice; thrifty, intelligent communi-
ties they would convert into the vicious, beggarly, ignorant, brutal, and
criminal classes of the manufacturing and mining districts of the Old
World. And can they convince an intelligent man they can accomplish
this result, and that other classes will remain uninjured, will not share
the bankruptcy, the poverty, the ignorance, and the degradation? The
American people are homogeneous, and the degradation of a family in-
jures its neighbors, however diverse their occupations. And if you
degrade nearly one-third of all our people the others will share it. Mo-
rality, Christianity, and patriotism protest against the inhumanity. I
have shown you that the interest of the other classes and of the coun-
try is opposed to this war of destruction. Sir, if successful, it will
change our social system, introduce class distinctions into the country,
and in the end will revolutionize our Government practically, if not
in form. Gentlemen on the other side are constantly mourning over
our tendency to centralization of power and to a strong government.
Whenever the wages of labor shall be so regulated as to give but an
animal support to the worker, then you must have a strong government,
with its army of police; and if you would force the country upon that
period you have but to impoverish the craftsman and the workingman.
by reducing their wages of labor by this 20 per cent. reduction.
Our country has a climate as varied and power of production as di-
versified, and I do not know but as great, as that of all Europe. It in-
cludes thirty-eight States, and vast Territories, each as rich in resources
as a powerful state in Europe, all connected by abundant water or rail-
road communication. Our internal commerce exceeds that of any other
continent. This they would impair, if not destroy; would neglect our
own resources, destroy our home market, bankrupt our capitalists, and
impoverish our people to add to the wealth of the foreign manufacturer;
it may be to the advantage also of their workmen. I will concede
that, but self-preservation is the first law to be observed by nations as
well as by individuals, and that law is involved in your policy and
OSe.
I have stated the issue fairly.
This issue has been tendered to us by the other side. With a una-
nimity which is certainly gratifying to me, we have accepted it upon this.
side of the House. You propose to tender it to the people in November
next. The Republican party, I doubt not, proposes to accept the issue.
You must remember that in all your localities where the hum of ma-
25
chinery is heard it will drown your eloquence, and where the light of
the forge and of the blast furnace is seen it will let light in upon your
reasoning. I am willing for one to submit it to an audience of agri-
cultural people, as we shall be compelled to do; and, sir, I for one shall
rest content with their verdict. [Loud applause.]
I will print with my remarks a table of the products of agriculture
for 1859 and 1879, the two census years that afford the basis of my
comparisons, with the letter of Professor Dodge, the Statistician of the
Bureau of Agriculture, who prepared the table at my request. His
eminent ability, perfect fairness, and complete knowledge of the subject
no one will question. I have but this to add: the same elements and
calculations enter into the results for both years, and for any increase or
diminution of product for one year there must be a corresponding in-
crease or diminution for the other, and the comparative difference be-
tween the two years will remain, and remain also in the comparisons I
have made:
UNITED STATES DEPARTMENT OF AGRICULTURE,
DIVISION OF STATISTICS,
Washimaton, D. C., April 28, 1884.
SIR. In response to your inquiry for the values of the products of agriculture
of the years 1859 and 1879, respectively, including what is reported by the cen-
sus and also estimates of farm production unreported and products of public
lands and village lots as well, I respectfully submit the following statement:
[See table on pages 26 and 27.]
This tabulation includes the items returned by the farm enumerators of the
eighth and tenth censuses. It also adds, for both periods, the estimated pro-
duction of poultry and eggs, the milk consumed, and butter and cheese made
on ranches and in villages, and towns as well as on farms. It gives the esti-
mated production of meats in 1880 to correspond with the returns of such prod-
ucts in 1860.
In addition to all these products the list is still incomplete, and should include
the annual increase ér “betterment' of farm stock, exclusive of animals slaugh-
tered, and a great variety of minor products, such as cotton-seed, the castor
bean, broom-corn, various millets used as grains, volatile oils, &c.
Pasturage is not mentioned in the census, because it enters into the meat
product. Nor is the stover and straw of more than a hundred million acres of
grain. Of the products named above less than half the corn and a small part
of the hay is duplicated in the meats, and a portion of that is offset by the un-
enumerated rough fodder which goes to the support of horses, mules, and
working oxen, which should properly be counted in the values of products.
In brief, taking everything into consideration, I make the net value of all
agricultural production on farms, ranches, and in town and village lots, in
round numbers, $1,600,000,000 for the crop-year 1859, returned by the census in
1860, and $3,600,000,000 for the year 1879. As to the items, though not quite com-
plete or absolutely beyond any necessary revision, no possible review could
materially change essentially the comparison of the two periods.
I may be permitted to say that I had charge of the collection of the agricult-
ural statistics of the tenth census and of the annual crop returns of the Depart-
ment of Agriculture for a large portion of the period between 1860 and 1880, and
that I know of no one else who has ever made special study of this subject. It
should be remembered that no census has ever yet included all production in
its schedules, and that no two agree in their list of products reported. As to
values, the returns were notoriously incomplete, and from the difficulty and
complexity of the subject must necessarily have been, the true results being
only obtainable by tests of quantities returned and their values in average farm
T]CeS.
p Respectfully,
To Hon. FRANK HISCOCK.
Mr. Chairman, I shall print also with my remarks matter not new to
the committee, and I shall not trouble it with it—extracts from reports
made by Professor Dodge, which so fully illustrate the views I have
expressed that I am constrained to give them such circulation as these
remarks of mine shall have. They are as follows:
It was shown conclusively, by figures of the census of 1880, that increase of
non-agricultural population enhances prices of lands and farm products. There
J. R. DODGE, Statistician.
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Butterf...................................................................... pounds 500,000,000 I6 80,000,000 900,000,000 21 189,000,000
Cheesef.......................................................................... do...... 130,000,000 9.5 12,350,000 300,000,000 9.5 28,500,000
Milk consumedf gallons 1,000,000,000 6 60,000,000 | 1,800,000,000, 7.5, 135,000,000
Poultry productsf 75,000,000 |........................l.......... 180,000,000
Aggregate values 1,675,724,972 |........................l............ 3,726,331,422
*As reported in the census, not including an immense home consumption.
f Census returns of farms, supplemented by estimates of ranch and town production.
§

28
was found a relation, other things being equal, of such prices to relative num-
bers of agriculturists and other workers. The larger the proportion of farmers,
the smaller were found values in agriculture. Now, in view of the above con-
siderations of nearness of producers to consumers, it is important to know
whether, within the States, the proximity of different classes of workers in-
creases locally such prices. It would be reasonable to suppose it would.
To test the supposition, by the figures of the census which show the value of
the products of manufacture, which represent usually the largest element in non-
agricultural industry, let us take the principal manufacturing counties, average
the value of their farm lands, and compare the result with the average value of
all the remaining farm lands within the State.
There is a great difference in the aggregate value of manufactures of the dif-
ferent States. Mississippi and Nevada have no county with $1,000,000 worth of
manufactured products. Massachusetts has only two with less than $10,000,000,
and has one with $134,567,625. Therefore it is necessary, in a comparison between
the principal manufacturing counties and those of less importance, to take a dif-
ferent minimum of value in Alabama, as a line of separation, from the minimum
taken in Massachusetts. The minimum proposed for each of the States south of
Pennsylvania and the Ohio River is $1,000,000. Each county having not less
than that amount of value in manufacturing production is placed in a group,
and the average value of their lands compared with the average value of all the
remaining lands in the State. -
Then the agricultural States, in which other industries are more important,
are allowed a minimum of $2,000,000 per county. In this group come the thriv-
ing Northwestern States, new and largely agricultural, yet progressive, and al-
ready diversifying their industries, rural and manufacturing, quite rapidly.
They are Wisconsin, Minnesota, and Iowa, and California is classed with them.
Then come the four States of the Ohio Basin, which lie between the river and
the great lakes, which are already prominent in industrial development. It is
necessary to make $5,000,000 the minimum, so general is the distribution of the
industries. With Ohio, Michigan, Indiana, and Illinois are placed the States of .
Northern New England, namely Maine, New Hampshire, and Vermont.
In a fourth group, comprising each of the Middle States, having a larger in-
dustrial development, $10,000,000 per county will make a fair exhibit of the more
advanced industrial counties.
These for groups gomprise all the States, except those in Southern New Eng-
land, which have a very exceptional degree of industrial advancement. In
these Connecticut has three of her eight counties with more than $25,000,000
each. In Massachusetts and Rhode Island the minimum is fixed at $50,000,000.
The result of this comparison shows in every State, without exception, a
higher average value of farm land in that portion of each State which makes
the largest value of the products of manufacturing industry. These two sec-
tions of each State are contrasted in the following statement, which also gives
the totals for each State, as follows:
Statement showing the local variation of prices in each State.

É º: * .E. 5 §
# 3 : rt: cº :
Cl & &-
p *4– 8 § ;: On *—t 3 *
States, 3 8's 5 º : o E 3.
‘s # # # Tº: & 3 3. g
O c3 5 tº $5 Tº: "c.
Z. 2- 8- :- 2-
Alabama : Acres.
Manufacturing counties...... 2 $2,785,685 481,484 $3,152,789 || $6 55
Other counties..................... 64 10,779,819 18, 373,850 75, 801, 869 4 13
Total 66 13,565,504 18, 855,334 78,954, 648 4 19 .
Arkansas :
Manufacturing counties...... 1 1,859,198 173,395 2,058,079 II. 87
Other counties.......... e e º dº º e < e º 'º º 73 4,896,961 || 11,888,152 | 72,191, 576 || 6 07
Total…. ........... 74 6,756,159 12,061,547 | 74,249,655 || 6 16
California:
Manufacturing counties....... 6 96,217,320 2,116,416 76,972,137 || 36 37
Other counties....... ..............] 46 20,001,653 14,477, 326 185,079,145 || 12 7
Total.................... .......] 52 116,218,973 16,593,742 262,051,282 1579
29
Statement showing the local variation of prices in each State—Continued.

tº, 8, t *
# 3 : .3 : §
5- † cº
5 3.3 3 g o, * * d;
$4
States. 3 3's 3 3 : 33 , -8.
3 | #3 gº #* | *
9 o; 3 ºf O d d
24 P- É- P- P-
Colorado : Acres.
Manufacturing counties....... 2 $10,383,397 78,317 $3,460,553 $44 19
Other counties..................... 29 3,876,762 1,087,056 21,648, 670 1991
Total........................... 31 14, 260, 159 1, 165,373 25, 109,223 21 55
tº Connecticut :
Manufacturing counties....... 3 | 122,572,296 967,946 69, 537, 959 || 7L 84
Other counties..................... 5 63, 124,915 1,485,595 51,525,951 34 68
Total........................... 8 185,697, 211 2,453, 541 121,063,910 || 49 34
Delaware : -
Manufacturing counties...... I 17,805,608 253,939 18,757,836 | 73 87
Other counties..................... 2 2,708,830 836,306 18,031,836 21 56
Total ........................... 3 20, 514,438 1,090, 245 36,789, 672 33 7
Florida, ; -
Manufacturing counties ...... I 1,366,785 5,759 83, 200 || 14 45
Other counties................... . . . . 3 4, 179,663 3, 291,565 20, 208, 635 6 14
Total ........................... 39 5, 546,448 3,297, 324 20,291,835 6 15
Georgia : - -
Manufacturing counties ...... 7 19, 331,604 995,971 9, 181,254 9 22
Other counties..................... 130 17, 109,344 25,047, 311 102,729, 2S6 4 10
Total........................... 137 36,440,948 26,043,282 111,910, 540 4 30
Illinois: *
Manufacturing counties...... 10 || 340,527,740 4,470, 503 || 196, 518, 392 || 43 96
Other counties..................... 92 74, 336,933 27, 203, 142 813,076, 188 29 89
Total........................... 102 || 414,864, 673 31,673, 645 1,009, 594,580 31 87
Indiana :
Manufacturing counties...... 7 73,226,591 1, 508, 599 74,233,562 49 21
Other counties...................... 85 74,779, 820 18,912,384 561,002,549 29 66
Total................ tº e º s º º e º 'º e tº 92 148,006,411 20, 420,983 635,236,111 || 31 11
Iowa : t
Manufacturing counties...... 9 37,355,066 3,018, 517 97,434, 304 || 32 28
Other counties..................... 90 33,690,860 21,734, 183 || 469,995,923 21 62
Total 99 71,045,926 24,752,700 567,430,227 22 92
Kansas:
Manufacturing counties...... 5 16,050,363 1,006,965 24,699, 803 24 53
Other counties..................... 99 14, 793, 414 20,410, 503 || 210,479, 133 || 10 31
Total........................... 104 30,843,777 21,417,468 || 235, 178,936 | 10 98
ECentucky: e
Manufacturing counties...... 10 56,659, 426 1,571,585 7,335,970 # 36 48
Other counties..................... 107 18,823,951 19,923,655 241,962,661 | 12 14
Total.......... tº º tº $ & e º 'º e e º e º ſº e is ..]117 75,483, 377 21,495,240 299,298,631 13 92
Statement showing thelocal variation of prices in each State—Continued.
30

t I * we
# | 3 = -- ă §
B ää º . tº: C
States. § o's 9 * à ° à 3.
d p={ g-
: ### 3” # #
dº O c3 cº
: g == {{ > P-
Louisiana : Acres.
Manufacturing counties...... .2 $20,456,396 49,075 $1,010,663 $20 59
Other counties..................... 56 3,748,787 8, 224,431 57,978,454 || 7 05
Total........................... 58 24, 205, 183 8,273,506 || 58,989, 117 | 7 13
Maine : gº
Manufacturing counties...... 5 58,246,405 2,288,037 50, 607, 054 22 12
Other counties..................... 11 21,583,388 4, 264, 541 51,750, 561 12 14
Total........................... 16 79,829,793 6,552,578 || 102,357,615 || 15 62
Maryland: s
Manufacturing counties....... 8 || 101, 635, 101 1,904,199 93, 199,562 || 48 94
Other counties........ • * * * * * * * * * * * 16 5,145,462 3,215,632 72,303,779 22 49
Total.......... tº e º e º & e º ºs e e º ſº tº ee e 24 106,780,563 5, 119,831 | 165, 503,341 || 32 33
Massachusetts:
Manufacturing counties....... 4 453,360,766 1,292,876 74,819, 191 || 57 87
Other counties...................... 10 || 177,774,518 2,066,203 71, 378,224 || 34 55
Total....... e e º 'º e s tº a tº º § & a e º e º tº ... 14 631, 135,284 3,359,079 146, 197,415 || 43 52
Michigan:
Manufacturing counties...... 6 74,928,516 1,500,690 60,373,468 40 23
Other counties..................... 72 75, 786,509 12,306,550 || 438,729,713 || 35’ 65
Total................. * * * * * * * * * * 78 150,715,025 13,807, 240 || 499, 103,181 || 36 15
Minnesota. :
Manufacturing counties...... 6 55,507,084 1,508,251 39,581,999 || 26 24
Other counties * 72 | 20,558,114 | 11,894,768 || 154,142,261 | 12 96
Total........ o e e i s s is e e º e e s is a e s is a 78 76,065, 198 13,403,019 || 193,724, 260 || 14 45
Missouri: *
Manufacturing counties....... 9 $139,598, 517 2,309, 339 $49,433,922 [$21 41
Other counties..................... 106 25,787, 688 25,569,937 || 326, 199,385 | 12 76
* Total........................... 115 165,386,205 27, 879,276 375,633, 307 || 13 47
, Nebraska:
Manufacturing counties....... 2 5, 866,751 495,434 9,456,461 | 1909
Other counties..................... 68 6,760,585 9,449,392 96,476,080 | 10 21.
Total...... .............. § e º 'º e & 70 12,627,336 9,944, 826 105,932, 541 10 65
New Hampshire:
Manufacturing counties....... 5 60,258,153 1,880, 602 47,725,874 25 38
Other counties..................... 5 13,719,875 1,840, 57.1 28, 108,515 15 27
Total...........................! 10 73,978,028 3,721, 173 75,834, 389 || 20 38
New Jersey: †
Manufacturing counties....... 6 208, 670,151 368,675 35,562,438 96 46
Other counties...................... I5 45,710,085 2,561,098 || 155,333,395 60 65
Total ................ tº t t e g º e º s º tº 21 || 254, 380,236 2,929,773 || 190, S95,833 || 65 16
31
Statemewt showing the loeal variation of prices in eaeh State—Continued.

| , , C &
Tº 3 ** : g
*—t tº e cº ©
a, a 3 'g a; * g. ;
States. |É ‘s’s 5 3 = º: 3.
<--> cº
O O
O P- E- P- P-
New York: Acres.
Manufacturing counties....... 13 || $896,651,665 4,981,545 $310,699,132 [$62 37
Other counties...... tº G tº º e & e º ºs e º & tº º te e 47 | 184,044,931 18, 799, 209 || 745,477,609 || 39 65
Total........................... 60 1,080,696, 596 23,780,754 1,056, 176,741 44 41
North Carolina :
Manufacturing counties....... 3 4, 141,335 542, 488 3,550,625 | 6 55
Other counties 91 15,953,702 21,821,070 | 132,242,977 || 6 06
Total........ tº se e º e º e º 'º e e º ſº e º is e e 94 20,095,037 22,363, 558 || 135,793,602 || 6 07
Ohio :
Manufacturing counties...... |12 || 249,632, 186 3,388,305 229,903,034 || 67 85
Other counties..................... 76 98,666,204 || 21, 140,921 | 897, 594, 319 42 46
Total........................... 88 || 348,298,390 24,529, 226 |1, 127,497,353 45 97
Oregon:
Manufacturing counties...... 3 5,543,941 678,769 13,123,679 || 1933
Other counties..................... 20 5,387,291 3,535,943 43,784,896 || 12 38
Total............... & ſº gº tº gº tº gº è e º 'º e 23 10,931,232 4, 214,712 56,90S, 575 | 13 50
Pennsylvania :
Manufacturing counties...... 13 596,122,801 3,930,549 || 340,912,032 86 73
Other counties..................... 54 148, 695, 644 15,860,792 || 634,777, 378 | 40 02
Total.............. * * * * * * * * * e e º s 67 || 744, 818, 445 19,791, 341 || 975,689,410 49 30
Rhode Island :
Manufacturing counties...... l 82,083, 318 193, 544 11, 180,683 57 77
Other counties..................... 4 22,080, 303 321,269 14,701,396 || 45 76
Total........................... 5 || 104,163,621 514, 813 25,882,079 50 27
South Carolina :
Manufacturing counties...... 3 8,384,219 1,471,846 8,387, 900 || 5 70
Other counties..................... 30 8,353,789 11,985,767 60,289, 5S2 5 03
Total........................... 33 16,738,008 13,457,613 68,677,482 || 5 10
Tennessee : {j
Manufacturing counties...... 4 19,003, 353 1,119,004 19,955, 465 17 83
Other counties..................... 90 18,071, 533 19,547,911 | 156,794,372 | 9 56
Total................ * * * * * * * * * g e 94 37,074, 886 20, 666,915 206,749,837 | 10 00
Texas :
Manufacturing counties...... 3 5,139,720 554,512 5,671,879 10 23
Other counties..................... 207 15,580,208 35,737,707 | 164,797,007 || 4 61
Total.............. tº e º e º º te e º ſe e s e 210 20,719,928 36,292, 219 170, 468,886 4 70
Utah :
Manufacturing counties...... I 1,933,221 51,320 1,932,585 || 37 66
Other counties........ {e tº e º 'º $ tº tº t e º º e 22 2, 391,771 604, 204 12,082,593 20 00
Total...... © e º e º e º e e º is e º e º e s tº e e 23 4, 324,992 655, 524 14,015, 178 21 38
32.
Statement showing the local variation of prices in each State—Continued.

## .8 É §
§§ . rd º: §
Qº **t 8 g; g º *—t # *-
States. § 83 : 3 : o: §.
‘E o ºn 3 – 3 o,g: Q)
5 | ### 3. E E
O dº E tº: O d dº
O P- H P- P-
Vermont: Acres.
Manufacturing counties....... I $6,244,391 344,860 $10,368,736 $30 07
Other counties................... ..] 18 25, 109,975 4, 537,728 98,977,274 21 81
Total tº e º a s is e g tº e g º º e º e º s tº e º 'º e º 'º º 14 31, 354, 366 4, 882, 588 109, 346, 010. 22 40.
Virginia:
Manufacturing counties....... 6 33,731,492 1,624, 304 19,429,261 | 11 96
Other counties..................... 93 18,049,500 | 18,211,481 196,598,846 | 10 80
Total........................... 99 || 51,780,992 || 19,835,785 216,028, 107 || 10 89
West Virginia:
Manufacturing counties....... 2 11,207,436 244,624 11,955,131 || 48 87
Other counties..................... 52 | 11,659,690 9,949,155 121, 192,044 | 12 18
Total...........................] 54 22,867,126 10,193,779 || 133,147, 175 13 06
Wisconsin: -
Manufacturing counties....... 15 96,101,406 4,720,777 159,941,426 33 88
Qther counties..................... 48 32,154,074 || 10,632, 341 197,768,081 18 60
Total........................... 63 | 128,255,480 15, 353, 118 357,709,507 23 30
The reader will observe that in every State there is a difference in value of
lands in favor of the manufacturing counties, and that where there is little man-
ufacturing there is small difference, and where the products of manufacture are
of large value lands bear a high price.
seen the following classification is made :
Statement showing higher land values in manufacturing counties.
FIEST GROUP.
That this differentiation may be easily

Manufacturing counties. Other counties.
States.
* Value per Value per
Acres. 8,Cre. Acres. 8,Ol'C.
Massachusetts................. 1,292,876 $57 87 2,066,203 $34 55
Rhode Island................... 193, 544 57 77 321,269 45 76
Connecticut..................... 967,946 71 84 1,485,595 34 68
New York....................... 4,981,545 62 87 18, 799, 209 . 39 65
New Jersey..................... - 368,675 96 46 2,561,098 60 65
Pennsylvania...... • * * * * * * * * * * * 3,930, 549 86 73 15,860,792 40 O2
Delaware......... * * g g º e º ſº e s e º e º e 253,939 73 87 836,306 21 56
Total...................... 11,989,074 71 85 41,930,472 40 33
SECOND GROUP.
Maine tº e º e º e º º te tº º º a 2,288,037 22 12 4,264,541 12 14
New Hampshire.............. 1,880,602 25 38 1,840,571 15 27
Vermont. ....................... 344,860 30 07 4,537,728 21 81
Ohio 3,388,305 67 85 21, 140,921 42 46
Michigan........................ 1,500,690 40 23 | 12, 306,550 35 65
Indiana............. tº ſº º is is g º & e & ſº e º e 1,508,599 49 21 18,912,384 29 66
Illinois............... tº ſº it tº tº e º ſº tº e º e tº 4,470,503 43 96 ,203, 29 89
Total...... tº e º g = g º e º e e º º ºs e 15,381,596 43 54 90,205,837 32 03

,
TEilia.l.) G.I.O.U. P.
7.
Manufacturing counties. Other counties.
States. Val Val
* alue per alue per
Acres. a Cre. A Cres. 2,CTG’.
Wisconsin....................... 4,720,777 233 88 10,632, 341 18 60
Minnesota....................... 1,508,251 26 24 II. 894, 768 I2 96
OWłł... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,018, 517 32 28 21, 734, 183 2] (52
California........................ 2,116,416 36 37 14,477, 326 12 78
Total...................... 11,363,961 32 90 58,738,618 1714
--- - --------------------- - - - IFOURTEI GROUP.
Maryland............ 1,904,199 48 94 3,215,632 22 49
Virginia........... .............. 1,624, 304 11 96 18,211,481 1() S0
North Carolina .............. 542, 488 6 55 21,821,070 6 06
South Carolina............... 1,471,846 5 70 11,985,767 5 03
Georgia........................... 995,971 9 22 25,047, 311 4 10
Florida ........................... 5,759 14 45 3, 291, 565 6 14
Alabama........................ g 481,484 6 55 18, 373, 850 4 13
Louisiana........................ 49,075 20 59 8, 224,431 7 05
Texas.............................. 554,512 10 23 35,737, 707 4 6l.
Arkansas........................ 173,395 11. 87 II, 888, 152 6 07
Tennessee........ .... ......... 1,119,004 17 83 19,547, 911 9 56
West Virginia................. 244, 624 48 87 9,949, 155 I2 18
Kentucky....................... 1,571, 585 36 48 19,923, 655 12 14
Missouri.......................... 2,309, 339 21 41 25, 569,937 I2 76
Ransas........................... 1,006,965 24 53 20,410,503 10 31
Nebraska........................ 495, 434 19 09 9,449,392 10 21
Colorado......................... 78,317 44 19 1,087,056 19 91
Oregon ...................... * * * * * 678,769 19 33 3,535,943 12 38
Utah................................ 51, 320 37 66 604, 204 20 00
Total...................... 15,358,390 21 95 267,874,722 8 27


VARIATION BY
STATES AND GROUPS.
These States aggregate the value of $5,336,465,954 in products of manufactures,
the grand aggregate in 1880 being $5,369,579,191 for all the States and Territories
of the United States. Now, the eighteen States and one Territory in the group
which has the least manufactures produce a value of $676,427,860, or 12.6 per
cent. of the total for the United States, a fraction of 1 per cent. for each State.
These may well be considered agricultural States. -
The third group includes four States, also essentially agricultural—Wisconsin,
Minnesota, Iowa, and California—in which there is a quite general determina-
tion not to remain in the category of one-idea communities in industrial devel-
opment. They have $391,585,577 in manufacturing production, or 7.3 per cent. of
the grand aggregate for the whole country. -
The second group is rounding into Symmetry in industry and realizing the ben-
efits of such a status in high prices of lands and farm products, and rapid increase
in wealth and culture. This class includes the States north of the Ohio River—
Ohio, Michigan, Indiana, and Illinois—and also Northern New England. These
seven States return a production of $1,247,046,686, which is 23.2 per cent. of the
whole. These may be deemed industrial as well as agricultural.
But there are seven other States in which the industries are more equally
balanced than any other, which make more than half the industrial production
of the United States, worth $3,021,405,831, or 56.8 of all. These are found in South-
ern New England and the Middle States, and Imay properly be grouped together.
HI—3
Sciuttered through two States and nine Territories.
as follows:
34
hey its clºt.de all manufacturing production except six-tenths of 1 per cent.,
The tabulation by States is
Aggregale value of products of agricullwre by States, acres of land in farms, and value
of farm lands, by States and growps of States.
IFIRST GROUP.

º
Value of prod-
~! * ºf Total land Value of farm | Value
States. §:* in farms. lands. per acre.
- Dollars. Acres, IXollars. Pollan's.
Massachusetts................. 631, 125,284 3,359,079 146, 197, 415 43 52
Rhode Island.................. 104, 103,621 514, 813 25,8S2,079 50 27
Connecticut..................... 185,697, 211 2, 453, 541 121,063,910 49 34
New York....................... 1,080, 696, 596 23,780, 754 1,056, 176, 7.11 44 41
New Jersey..................... 254, 380, 236 2,929,773 190, 895, 833 65 16
Pennsylvania. ................. 744, 818, 445 19,791, 341 975, 689, 410 49 30
Delaware........................ 20, 514,438 1,090, 245 36,789, 672 33 7
Total...................... 3,021, 405,831 53,919,546 2,552, 695,060 47 34
SECONID GROUP.
Maine.............................. 79,829,793 6,552,578 102,357, 615 I5 62
New Hampshire............. 73,978,028 3,721, 173 75,834, 380 20 3
Vermont......................... 31, 354, 366 4, 882, 5SS 109,346,010 22 40
Ohio....... ........................ 348, 298,390 24,529, 226 1, 127,497, 353 45 97
Michigan........................ 150,715,025 13,807, 240 499, 103, 181 36 15
Indiana........................... 148,006, 411 20, 420,983 635, 236, 111 31 11
Illinois............................ 414,864, 673 31,673, 645 | 1,009, 594,580 3.1. 87
Total ..................... 1,247,046,686 105,587,433 3,558,969,239 33 71
TEIIRD GROUP.
Wisconsin...................... 128, 255,480 15, 353, 118 357,709,507 23 30
Minnesota.......................! 76,065, 198 13,403,019 193, 724, 260 14 45
Iowa............................... 71,045,926 24,752,700 567,430, 227 22 92
California........... & 8 e º 'º e º s & e s ∈ e 116,218,973 16, 593,742 262,051, 282 15 79
Total...................... 391,585,577 70, 102,579 1,380, 915, 276 19 70
FOURTEI GROUP. tº
Maryland........................ 106,780,563 5, 119,831 165, 503, 341 32 33
Virginia.......................... 51, 780, 992 19,835,785 216,028, 107 10 S9
North Carolina............... 20,095,037 22,363, 55S 135,793, 602 6 ()7
South Carolina............... 16, 738,008 || 13,457,613 68, 677,482 5 1()
Georgia........................... 36,440,948 26,043,282 111,910, 540 4 3(
Florida ........................... 5,546,448 3,297, 324 20, 291, S35 6 15
Alabama........ º e º is sº º is e a s is & 4 & © & * 13, 565, 504 18, 855, 334 78,954. 648 4. 19
Louisiana........................ 24, 205, 183 8,273,506 58,989, 117 7 13
Texas.................. ........... 20,719,928 36,292, 219 170. 468. SS6 4 70
Arkansas..................... e s is 6.756, 159 12,061, 547 74, 249, 655 6 I6
Tennessee..... .... tº ſº e s tº e º e < * * * * * 37,074,886 20,666,915 206, 749, 837 10 00
West Virginia....... tº e e s e º e º e e 22,867, 126 10, 193,779 133, 147, 175 I3 06
Kentucky...................... & 75, 483, 377 21,495,240 299,298,631 13 92
Missouri.......................... 165,386,205 27,879,276 375, 633, 307 13 47
Kansas........................... 30, 843,777 21,417,468 235, 178,936 1() 98
Nebraska........... tº º e g º ſº tº 4 º e º e º 12,627,336 9,944,826 105,932, 541 1() 65
Colorado......................... 14, 260, 159 1, 165,373 25, 109, 22. 21, 55
Oregon ........ * * * * * * * * e tº a e º e º s e º 'º 10,931, 232 4, 214, 712 56,908,575 13 50
Utah................................ 4,324,992 655, 524 14,015, 178 21 38
Total...................... 676, 427, 860 283, 233, 112 || 2,552, 840, 616 9 O1




35
TEIE FARMER'S INCOME.
The fact that the group of States where industry is most diversified (those
having only 18 per cent. of all workers engaged in agriculture) afford $457 per
annum to each one, while the agricultural States, having 77 per cent. in agricult-
ure, allow an annual income of only $160, is too significant to be explained away,
too convincing for pretense of cavil. It stands as proof of the necessity of sym-
netry and completeness of the productive system, and as a forceful illustration
of the solidarity of the industries.
Full acceptance of the truth that increase of non-agricultural workers enhances
yº in agriculture, as proven by this grouping of facts. has been nearly uni-
V Cl’Sa.I. *
2. It increases the value of production. In the early days of the infancy of our
manufactures, within the recollection of persons of middle age, wheat has bcen
sold for less than 40 cents per bushel. There was a surplus for which there was
little demand, because nearly every head of a family produced his own supply.
Sixty years ago the price of our wheat exports at the place of shipment was but
70 cents per bushel, and it required eighty-eight bushels of that wheat to pay for
a tom of pig-iron imported the same year. Last year twenty-five busheks o
wheat would pºly for a toll of pig-iron of our own manufacture, and yet we are
told that farmers are ruined by the tariff on iron. The reason of this great differ-
ence is found in the fact that between four and five million tons of pig-iron are
now made annually in the United States, or more than ten times as much as was
produced in Great Britain sixty years ago, and more than was made there in any
year prior to 1863.
Take a notable example of the crushing weight of overproduction upon price.
Not many years ago, when cotton was worth 23 cents per pound, the planting
returns disclosed the fact, in June, that one-third increase in area had been made.
I at once predicted that with a season favoring an average yield per acre the
price of middling cotton would in six months fall to 15 cents. The increase was
more than a million bales and the average price of the crop was a fraction less
than 15 cents, and brought to the growers $45,000,000 less than the smaller pre-
vious crop. They realized, too, that all of their extra labor had been thrown
away, besides a heavy loss in addition, . With no money-producing crop but
Cotton and no employment for idle labor in other productive industry, it is not
strange that discouragement was disheartening and poverty inn minent.
Again recurring to unpublished results of the Census of 1880, a striking illus-
tration of the influences of manufactures on the profits of agriculture is pre-
sented. The census returns the value of the products of agriculture reported
on its schedules. Comparing the average value of production for each person
(farm or farm laborer) engaged in rural industry, we have $431 for Pennsylva-
nia, and $180 for Virginia; $394 for Ohio, and $199 for Kentucky; $467 in Illinois,
and $376 in Minnesota. Dividing again the States and Territories into four sec-
tions, the first comprising the manufacturing and mining areas, and includ-
ing all having a smaller proportion than 30 per cent. of the occupied popu-
lation, the working class, engaged in agricultural employments; the second
section comprising all States having more than 30 and under 50 per c>nt. ; thae :
third including all States having 50 and not exceeding 70 per cent., and the
fourth including all States having more than 70 per cent. engaged in agriculture,
we have the following perfectly natural, not to say inevitable, results, namely:

# # # | #
3 : §§ # # 3
~ : In 3 : º, 5
Classes. 3: E E Q) #: E
Sſ -: E : Q. § 2.
3.3 rº.3 G) º;.3
$f # 2- 2 - É o H
ſº 24 3 | P:
.. Nunn her. Value. | Per ct.
First class......... • e º ses e º 'º e s e e s a e s e e < e < * * * * * * * * * * * * * * * * * 1,060, 681 || 484, 770,797 || $457 16. 59
Second class...........................‘. . . . . . . . . . . . . . . . . 1,566,875 | 616, 850 959 || 394 40. 12
Third class....................... a s : * * * * * * * * * * * * * s º e º e º & 3,017,971 786, 681, 420 261 58. 85
Fourth class............................................ 2,024,966 || 325,099.388 161 77. 46
IHere again we see the product perman go down as the percentage of agricult-
ural workers goes up. We see that in the manufacturing States 1,060, 681 agri-
culturists get $484,770,797 per annum for their labor, while in the agricultural
States 2,024,966 receive only $325,099,38S. New Jersey has but 14.92 per cent. in
agriculture, and each iman earns $501, while Mississippi has 81.81 per cent., the
largest proportion of any State, and each person earns but $187, the lowest aver-
age in the United States.
* 36
As with the price of land so with the value of the products of the soil. As the
proportion of agricultural to other labor goes up, falls the value of a farm labor-
er's production by a regular, steep, inevitable gradation. The States with less
than 30 per cent. in farm labor realize nearly three times as much per man as
those which have over 70 per cent. in farm work. In other words, one man in
the first class realizes as much as the three men who are competing with each
other, having little outlet for surplus production. Three brothers in Alabama,
laboring through the year, get as much for their aggregate produce as one
farmer receives in Pennsylvania, simply because that farmer has a brother en-
gaged in manufacture and another in mining. It is because in one case there
is a market for one product only, thousands of miles away; in the other, there
are markets at every door. *
The same state of facts was shown in 1870, and similar differeuces will illus-
trate the value of diversified labor in 1890.
Q
* * * *
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MILLs BILL–TARIFF LEGISLATION.
S P E E C EI
HON, WILLIAM McKINLEY, JR.,
IN TELE
HOUSE OF REPRESENTATIVES,
M. A. Y 18, 1888.
“Absolute freedom of exchange within our own borders and among/our
own people is the law of the Republic.
“Reasonable taxation and restraint upon those without is the dictate of
enlightened patriotism, and the doctrine of the Republican party.”
WASHINGTON.


1888.
>Ş.
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}
{
-:
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it.
!
Free foreign trade gives our money, our manufactures, and our markets to
other nations to the injury of our labor, our trades-people, and our farmers.
Protection keeps money, markets, and manufactures at home for the bnnefit of
our own people.
A S P E E CH
HON, WILLIAM McKINLEY, Jr.,
*
The House being in Committee of the Whole House on the state of the Union,
nºnd having under consideration the bill (H.R. 9051) to reduce taxation and sim-
plify the laws in relation to the collection of the revenue—
Mr. McKINLEY said:
Mr. CHAIRMAN: Our country is in an anomalous situation. There is
nothing resembling it anywhere else in the world. While we are seek-
ing to find objects to relieve from taxation, in order that we may re-
lieve an overflowing Treasury, other nations are engaged in exploring
the field of human production to find new objects of taxation to supply
their insufficient revenues. In considering the situation that thus con-
fronts us, and the bill that is presented here as intended to relieve it,
it is well that we should understand at the beginning the things upon
which all are agreed. *
They are, first, that we are collecting more money than is required for
the current needs of the Government; and second, that the excess,
whatever it may be, beyond the wants of the Government should be
left with the people. Our contention, therefore, is upon the manner of
the reduction and not upon the reduction itself; not that no reduction
shall or ought to be made, but how and upon what principle can it
best be accomplished. We agree, further, that the tax upon tobacco
shall be removed and thus leave with the people $30,000,000 which they
annually pay upon this domestic product. Were we men of business,
governed by the principles which guide practical men of affairs, this
burden would have been and could have been removed any time within
the past two years, and if removed two years ago no surplus would now
vex the Administration or alarm the business of the country. In
passing, it is suitable that I should say that within the period named
no hinderance from this side of the House would have been interposed
to the abolition of this tax. e
It is also suitable that I should say, for the sake of the truth of his-
tory, that gentlemen on this side, and gentlemen on the other side of
the House repeatedly made efforts during the last Congress to secure
recognition for the purpose of offering a bill to abolish this tax, which
request was refused by the presiding officer of the House, and refused,
too, Mr. Chairman, when every intelligent representative on this floor
knew that if an opportunity was given to vote upon a bill for the aboli-
tion of that tax it would have received not simply a majority, but the
vote of fully two-thirds of the House. I repeat that if that had been
3
4.
done, if the House as then organized had given to the representatives
of the people an opportunity to vote upon a simple proposition to re-
duce taxation, no immediate surplus would be now in the Treasury to
interrupt and disturb the business of the country. [Applause on the
Republican side.]
But this tax was not abolished, and if done now still leaves about forty
millions of revenue collected in excess of the public necessity. How
can this amount be remitted with the least disturbance to the busineSS
and employments of the people?
This, Mr. Chairman, is the real, the practical question. At this point
parties and individuals differ, and herein the two lines of politicalthought
which have prevailed from the formation of the Government are clearly
manifested, and present for consideration and the ultimate judgment of
the people the division between the Republican and Democratic parties
upon a purely economic question. I can not forbear, in this connec-
tion, to congratulate the country that upon this question our fellow-
citizens of all sections and all nationalities, without regard to past party
affiliations, unbiased by prejudice, and uninfluenced by passion, can
divide. Here is presented an issue which leaves the past behind and
looks only to the present and the future, an issue without a tinge or
touch of sectionalism, which awakens none of the bitter memories of
former discord or divisions, which appeals neither to racenor geograph-
icallines, which knows no North, or South, or East, or West, but brings
all within its sweep and contemplation, each dividing upon what each
may honestly regard for the best interests and highest welfare of all;
an issue which we can consider and discuss calmly and deliberately,
having only in view the future of the individual citizen and the high-
est and best destiny of the Republic. In this spirit I welcome the is-
sue so sharply, and I may say boldly, made by the President in his
annual message and now further made by the bill under debate, and
approach its consideration with the single purpose to reach if possible a
conclusion which shall bring to the country and the whole country, with
whose interests we are temporarily intrusted, the widest benefits and
the most lasting good. [Applause.] m
It will be freely confessed by our political opponents that this bill is
but the beginning of a tariff policy marked out by the President, and
is a partial response only to his message, to be followed up with addi-
tional legislation until our system of taxation shall be brought back to
the ancientlandmarks of the Democratic party, to a purely revenue basis;
that is, that the tariff or duty put upon foreign importations shall here-
after look to revenue and revenue only, and discard all other consider-
ations. -
WHAT IS REVENUE TARIFF 2
This brings us face to face, therefore, with the two opposing systems,
that of a revenue as distinguished from a protective tariff, and upon
their respective merits they must stand or fall. Now, what are they 2
First, what is a revenue tariff?. Upon what principle does it rest? It
is a tariff or tax placed upon such articles of foreign production im-
ported here as will produce the largest revenue with the smallest tax;
or, as Robert J. Walker, late Secretary of the Treasury and author of
the tariff of 1846, from whom the advocates of the measure draw their
inspiration, put it:
The only true maxim is that which experience demonstrates will bring in
each case the largest revenue at the lowest rate of duty, and that no duty be im-
posed upon any article above the lowest rate which will yield the largest amount
of revenue. The revenue (said Mr. Wallcer), from ad valorem duties last year
(1845) exceeded that realized from specific duties, although the average of the
5
ad valorem duties was only 23.57 per cent. and the average of the specific du-
ties 41.30 per cer it., presenting another strong proof that the lower duties in-
crease the revenue.
To secure larger revenue from lower duties necessitates largely in-
creased in portations, and if these compete with domestic products the
latter must be diminished or find other and distant and I may say im-
possible markets or get out of the way altogether. A genuine revenue
tariff imposes no tax upon foreign importations the like of which are
produced at home, or, iſ produced at home, in quantities not capable of
supplying the home consumption, in which case it may be truthfully
Said the tax is added to the foreign cost and is paid by the consumer.
A revenue tariff seeks out those articles which domestic production
can not supply, or only inadequately supply, and which the Wants of
our people detland, and imposes the duty upon them, and permits as
far as possible the competing foreign product to be imported free of
duty. This principle is made conspicuous in the bill under considera-
tion; for example, wool, a competing foreign product, which our own
ſłock-Inasters cau fully supply for domestic wants, is put upon the free-
list, while sugar, with a houne product of only one-eleventh of the home
consumption, is left dutiable.
Any tax levied upon a foreign product which is a necessity to our
people, and which we can not fully supply, will produce revenue in
amount only measured by our necessities and ability to buy. In a
word, foreign productions not competing with home productions are
the proper subjects for taxation under a revenue tariff, and in case these
do not furnish the requisite revenue a low duty is put upon the foreign
product competing with the domestic one—low enough to encourage
and stimulate importations, and low enough to break down eventually
domestic competition. For example, the duty proposed under this bill
upon cotton bagging will extinguish the industry here, and under its
provisions we would import all of that product from Calcutta and Dun-
dee. A large revenue would come from this source, because the for-
eign would take the place of the domestic production. This duty is a
revenue one, and gives no protection whatever to the home producer.
If it did it would not be a revenue tariff. As the Cobden school of po-
litical science puts it, “The moment it is made clear that a tax is a
benefit to home producers then the free-trade dogma condemns it. The
test is simple and easy of application. Free-trade or a revenue tariff
does not allow any import duties being imposed on Such articles as are
likewise produced at home.” Or if produced at home a revenue tariff
would soon destroy their production.
- WHAT IS A PROTEBTIVE TARIFF 2
What is a protective tariff? It is a tariff upon foreign imports so ad-
justed as to secure the necessary revenue, and judiciously imposed upon
those foreign products the like of which are produced at home or the
like of which we are capable of producing at home. [Applause..] It
imposes the duty upon the competing foreign product; it makes it bear
the burden or duty, and, as far as possible, luxuries only excepted, per-
mits the non-competing foreign product to come in free of duty. Ar-
ticles of common use, comfort, and necessity which we can not produce
here it sends to the people untaxed and free from custom-house exac-
tions. [Applause.] Tea, coffee, spices, and drugs are such articles,
and under our system are upon the free-list. It says to our foreign
competitor, if you want to bring your merchandise here, your farm
products here, your coal and iron ore, your wool, your salt, your pottery,
your glass, your cottons and woolens, and sell alongside of our producers
6
in our markets, we will make your product bear a duty; in effect, pay
for the privilege of doing it. [Applause on the Republican side..] Our
kind of a tariff makes the competing foreign article carry the burden,
draw the load, supply the revenue; and in performing this essential
office it encourages at the same time our own industries and protects
our own people in their chosen employments. [Applause.] That is
the mission and purpose of a protective tariff. That is what we mean
to maintain, and any measure which will destroy it we shall firmly re-
sist, and if beaten on this floor we will appeal from your decision to the
people, before whom parties and policies must at last be tried. [Ap-
plause..] We have free trade among ourselves throughout thirty-eight
States and the Territories and among sixty millions of people. Abso-
lute freedom of exchange within our own borders and among our own
citizens is the law of the Republic. Reasonable taxation and restraint
upon those without is the dictate of enlightened patriotism and the
doctrine of the Republican party. [Applause on the Republican side.]
Free trade in the United States is founded upon a community of
equalities and reciprocities. It is like the unrestrained freedom and
reciprocal relations and obligations of a family. Here we are one country,
one language, one allegiance, one standard of citizenship, one flag, one
Constitution, one nation, one destiny. It is otherwise with foreign nations,
each a separate organism, a distinct and independent political Society
organized for its own, to protect its own, and work out its own destiny.
We deny to those foreign nations free trade with us upon equal terms
with our own producers. [Applause.] The foreign producer has no
right or claim to equality with our own. He is not amenable to our
laws. There are resting upon him none of the obligations of citizen-
ship. He pays no taxes. He performs no civil duties; is subject to no
demands for military service. He is exempt from State, county, and
municipal obligations. He contributes nothing to the support, the prog-
ress, and glory of the nation. Why should he enjoy unrestrained
equal privileges and profits in our markets with our producers, our
labor, and our tax-payers? Let the gentleman who follows me an-
swer. [Applause..] We put a burden upon his productions, we dis-
criminate against his merchandise, because he is alien to us and our
interests, and we do it to protect our own, defend our own, preserve
our own, who are always with us in adversity and prosperity, in sym-
pathy and purpose, and, iſ necessary, in Sacrifice. [Applause.] That
is the principle which governs us. I submit it is a patriotic and right-
eous one. In our own country, each citizen competing with the other
in free and unresentful rivalry, while with the rest of the world all
are united and together in resisting outside competition as we would
foreign interference.
Free foreign trade admits the foreigner to equal privileges with our
own citizens. It invites the product of foreign cheap labor to this market
in competition with the domestic product, representing higher and better
paid labor. It results in giving our money, our manufactures, and our
markets to other nations, to the injury of our labor, our tradespeople,
and our farmers. Protection keeps'money, markets, and manufactures
at home for the benefit of our own people. [Applause on the Repub-
lican side.] -
It is scarcely worth while to more than state the proposition that
taxation upon a foreign competing product is more easily paid amid less
burdensome than taxation upon the non-competing product. In the
latter it is always added to the foreign cost, and therefore paid by the
consumer, while in the former, where the duty is upon the competing .
7
product, it is largely paid in the form of diminished profits to the for-
eign producer. [Applause..] It would be burdensome beyond endur-
ance to Collect our taxes from the products; profession3, and labor of our
own people. -
- TEIE BILL WILL NOT IREDUCE TEIAE REVENUE.
Now, Mr. Chairman, this is a bill ostensibly to reduce the revenue.
It will not do it. Take from this bill its internal-revenue features, its
reduction of twenty-four and a half million dollars from tobacco and
from special licenses to dealers in spirits and tobacco, eliuminate these.
from the bill and you will not secure a dollar of reduction to the Treas-
ury under its operation. Your $27,000,000 of proposed reduction by
the free-list will be more than offset by the increased revenues which
shall come from your lower duties; and I venture the prediction here
to-day that if this bill should become a law, at the end of the fiscal year
1889 the dutiable list under it will carry more money into the Treasury
than is carried into the Treasury under the present law, because with
every reduction of duties upon foreign imports you stimulate and in-.
crease foreign importations; and to the extent that you increase foreign
importations, to that extent you increase the revenue.
TEIE IN CONSISTENCIES OF TEIE BILL.
There is another singular thing in connection with this bill, and I have
nowhere seen attention called to it. Now I do not intend to examine the
bill item by item. The minority of the Committee on Ways and Means
(whose views, on behalf of my political associates I presented) went suf-
ficiently over the bill in detail. But there are a few striking things in
the bill which the country ought to understand. No one would have
supposed from hearing this discussion but that the bill reduced duties
all along the line. You never would have suspected, had you listened
to the gentleman from Texas [Mr. MILLS], or the gentleman from
Pennsylvania [Mr. SCOTT), or the gentleman from Indiana [Mr. BY-
NUM), or other gentlemen of the Ways and Means Committee, that
this bill increased duties, would you? How many men on the other
side of the House know what is in this bill to-day? I would like to
poll them. [Laughter].
Now, here is a single item, steel billets. The present duty on steel
billets is 45 per cent. ad valorem. In this bill it is increased to $11 per
ton, which is equivalent to 68.33 per cent.—an advance of 45 per cent.
Do you know what is made out of these steel billets? Wire fencing,
which incloses the great fields of the West; and the raw material is
increased 45 per cent. by this bill; and if the principle of the gentlemen
who advocate the bill be true, that the duty is added to the cost, every
pound of wire fencing that goes to the West will be increased from one-
quarter to one-half a cent a pound; all this under a Democratic bill.
What else is made out of steel billets? Nails, which everybody uses,
which enter into the every-day uses of the people. The duty upon nails
is reduced 25 per cent, , and the raw material is increased 45 per cent.
[Laughter.] As a friend near me suggests, when one end goes up the
other goes down; and the latter, I trust, will be the fate of this bill.
[Laughter.]
Why, sir, the duty on wire fencing is only 45 per cent. ad valorem;
yet the billet from which wire fencing is made must pay in this bill
63 per cent. Here [illustrating] is a piece of wire rod drawn from
these steel billets, and which finally goes into fencing. That is duti-
able at 45 per cent, under this bill; and the steel from which it is
made is dutiable at 63 per cent. What do you think of “raw material
8
for manufactures? [Laughter.] No account is here taken of the labor
required to draw the rods.
But, Mr. Chairman, that is not all which is remarkable about this
bill, this great bill which is based upon principle, it is said, which the
President stands behind and beneath, and which he insists shall be
passed, whether or no, in this House, and for the passage of which he
is dispensing official favors; for, as the Post, of this city, says, “there
is an Allentown for every SowDEN.” [Laughter and applause.]
What else? Here, for example, are cotton-ties; which present an-
other queer freak in this bill. Everybody knows what cotton-ties are;
they are hoop-iron cut into lengths just large enough to go round a
bale of cotton. Now, if the Southern cotton-planter wants some of this
hoop-iron with which to bale his cotton, he goes to the custom-house
at New York or Charleston and cuts off all he wants; and he does not
have to pay a cent of duty; but if the farmer-constituent of my friend
whosits beforeme [Mr. NELSON], or your farmer-constituent, want some
hoop-iron of precisely the same width and thickness, and goes to the
custom-house to get it, the Government makes it pay one cent and a half
of duty upon every pound he takes, while it lets the cotton-planter take
his for nothing. If the Western farmer wants it for his bucket or his bar-
rel or to go on his wagon-bed, or if the washerwoman wants it for her
washtub, every one of these must pay a cent and a half a pound, un-
der the philosophy of the gentlemen who framed this bill, while the
cotton-planter gets his absolutely free of duty. -
Gentlemen, is that fair 2 I appeal to Southern men who sit before
me; I appeal to Northern Democrats who sit around me; is that fair
upon any principle of justice or fair play ? Talk about sectionalism
You raise the question in your bill; you make a sectional issue which
I deeply regret, and I am sure you must upon serious reflection.
There are some other features in this bill which are a little singular.
The proposed duty on white lead is 2 cents a pound, while Orange min-
eral, which is made from white lead, is reduced to one cent and a half
a pound. [Laughter.] That is another case of high duty upon raw
material and low duty upon the finished product.
Why, what in the world, Mr. Chairman, has this bill done for the
people anyhow 2 What has it done for the farmer? It has taken the
duty practically off of everything he grows; I will not stop to give the
items. It makes free practically every product of the farm, the forest,
and mine. -
It takes the duty off of wool. What does it give the grower in re-
turn? Does it give him anything free? Everything he buys is duti-
able. The coat he wears, the hat that covers his head, his shoes, his
stockings, his sugar, his rice, everything bears a duty and substan-
tially everything he raises put on the free-list. -
The duty on wool must go. What has this Democratic party given
the agriculturists in return for this slaughter of their interests? I
have looked this bill up and down, and I will tell you what they have
done for the farmer. They have given him free sheep-dip. [Laughter
and applause.] . Sheep-dip is made free and the duty is released. My
distinguished friend from Virginia [Mr. LEE|, who honors me with his
presence here, knows what this article is. It is a preparation which is
used on sheep. It is made up largely of the stems of tobacco. It has
got a little Sulphur in it, I believe; it has got a little lime in it. They
9
put that on the free-list, and that is all they do for the farme)
[Laughter.]
Mr. HOPKINS. of Illinois. What good is that to the farmer aftem
they have destroyed his flocks?
Mr. McKINLEY. None. They leave the shears he clips his wool
with at 45 per cent. ad valorem. They make his wool free and make
the farmer pay 45 per cent. for the shears with which he clips his wool.
[Laughter.] | -
But that is not all. The bell, the sheep bell—if my friend from
Massachusetts [Mr. RUSSELL] is here, if that golden-shod shepherd
from Worcester is here [laughter and applause], he will understand.
It is the bell that is put around the neck of the sheep to admonish the
shepherd of the whereabouts of the wandering flock under his charge.
I am told the gentleman has got on the outside. I learn now he is
here in his seat; I am glad to see him. He knows what I am talking
about. [Laughter.]
They have left them dutiable at 45 per cent. ad valorem. Why, the .
sheep even will be ashamed of you, gentlemen. [Laughter.]
Tin plates are made free. What are tin plates made of? Ninety-
seven and a half per cent. are sheet-iron or sheet-steel: 23 per cent.
tin. Tin plates are made free. Sheet-iron, sheet-steel are dutiable
at 2 cents a pound. Now, I shall not tax you further with the details
of the bill. I might spend hours in pointing out like inconsistencies.
I will leave their further discussion for the five-minute debate. I only
give these samples so that my honorable and learned friend from Ken-
tucky [Mr. BRECKINRIDGE] who replies to me, shall take them up
and explain the principle on which these rates are fixed and these
duties levied.
Mr. Chairman, there is another thing which I wish to call attention
to in connection with this bill, and that is the internal-revenue part
of it. It seems to have escaped attention. Now, so far as the aboli-
tion of the tax on tobacco is concerned we are all in accord; but this
new feature of the bill provides for the repeal of the law which au-
thorizes the destruction of illicit stills when found in unlawful use. Un-
der the present law if you find a man engaged in unlawful distilling,
not having paid the tax or secured the license, the officer is authorized
to go and destroy the whole outfit. This bill repeals that section of
the law and provides that the still shall neither be mutilated nor de-
stroyed, but preserved presumably for future violations of the law.
[Laughter and applause.]
And in this bill further provision is made that in case a man is ar-
rested for illicit distilling, the judge is charged especially with the
duty of looking well to his comfort and to his well-being while he is
in the custody of the officials of the law. [Laughter on the Repub-
lican side.]
That provision does not apply to any other class of criminals under
any of our statutes; but if a man is engaged in violating the revenue
laws he must be tenderly looked after by the judge, who is directed to
see that he is in every way made comfortable while serving out his
sentence in prison." [Renewed laughter on the Republican side.]
TELE VICIOUS AD VALOREMI SYSTEM INTRODUCED IN BILL.
Now, Mr. Chairman, there is one leading feature of this bill, which
is not by any means the most objectionable feature, but which, if it
stood alone, ought to defeat this entire measure; and that is the intro-
duction of the advalorem system of assessment to take the place of the
10
specific system nów generally in force. You all know the difference be-
tween the ad valorem system and the Specific mode of levying duties.
One is based upon value, the other upon quantity. One is based upon
... the foreign value, difficult of ascertainments, resting in the judgment of
experts, all the time offering a bribe to undervaluation; the other rests
upon quantity, fixed and well known the world over, always determina-
ble and always uniform. The one is assessed by the yard-stick, the ton,
and the pound-weight of commerce, and the other is assessed by the for-
eign value, fixed by the foreign importer or his agent in New York or
elsewhere; fixed by the producer, fixed by anybody at any price to escape
the payment of full duties. Why, the valuation under the ad valorem
system is not even uniform thronghout the United States.
My friend from Massachusetts [Mr. MORSE], who listens to me now,
knows that the valuations fixed upon imported goods at the port of
Boston are often different from the valuations fixed on the same class
of goods, costing the same, arriving in New York, Philadelphia, San
Francisco, or Charleston.
So we do not have and can not have a uniform Value, for the value
is subject always to the cupidity or dishonesty of the foreign importer or
producer. It is a system, sir, that has been condemned by all the lead-
ing nations of the world. There is not a leading nation that adheres
to any considerable extent to the ad Valorem rates of duty upon articles
imported into its borders; and England has abandoned all ad valorem
duties exceptone, for the very reason that there can be no honest adminis-
tration of the revenue laws so long as the value is fixed thousands of
miles away from the point of production and impossible of verification
at home. Henry Clay said fifty years ago:
Let me fix the value of the foreign merchandise, and I do not care what your
duty is. -- -
Mr. Secretary Manning, in his very able report made to the last Con-
gress, has gone over the entire question, and he publishes in a volume
the opinions of the experts of the Treasury, the collectors, the naval
officers, the special agents of the Department, all of them declaring
that there is nothing left for the American Government to do but to
abolish the ad valorem system and adopt the specific in the interest
of the honest collection of the revenue and for the Safety and security
of reputable merchants. And the Secretary himself says in language
too strong and plain to be misunderstood that it is the duty of Congress
to abandon the ad valorem and establish Specific duties.
I give below these opinions.
Naval officer Burt, of New York, says:
I have long been convinced that a change from ad valorem to spacific rates
would not only be a benefit to the revenues, but would go ſar to relieve their
administration from the friction and inevitable injustice that have made it in a
measure odious. I might give here a réswmé of my reasons for this opinion, as fre-
quently expressed officially hitherto, but I presume the Department is fully ap-
prised of all the arguments adduced on either side. I will thereſore simply say
that the ad valorem system is theoretically the perfect system, and that this bas
engaged its support by those who have only had opportunity to view it as an ab-
stract proposition. This prejudice in its ſavor must surely give way before the
overwhelming evidences that in practice, particularly with high rates, it breeds
injustice, contention, and commercial obstructions that afe almost intolerable.
James D. Power, a special agent of the Treasury, in a report to the
same Secretary, says: .
Ad valorem rates of duty afford temptations and opportunities for fraud
which can not be guarded against, even by the most rigid rules and vigilant
watchfulness. The assessment of values under this system is based upon expert
lºnowledge of values, the most uncertain and arbitrary method that could be
devised. Under the ad valored). System fraud lias prospered and demoralized
11
the importing trade, which has passed from the hands of American citizens
into the control of men who have taken advantage of our high import duties
to enrich themselves at the expense of the revenue and the ruined trade of
American wholesale firms. Fraud of this nature is difficult to detect and more
difficult still to establish. In the absence of documentary proof it resolves it-
self into a mere difference of opinion between experts; and the owner of the
suspected goods can at all times procure experts who will maintain the correct-
ness of his invoice prices, or he may select an easier and more convincing and
efficacious' line of defense by procuring affidavits from his buyer or partner
abroad to the effect that the invoice cost was the actual price paid for the goods
Messrs. L. G. Martin and A. K. Tingle, special agents, make the
following statement to the Secretary: f
There can be no doubt that a change from ad valorem to specific rates would
help to diminish the tendency to corrupt action and loss to the revenue by the in-
competency or indifference of appraisers. The application of specific rates to
all textile fabrics would undoubtedly be a work of great difficulty, particularly
as to woolen goods, but it is believed that a schedule can be prepared by the
skilled officers in the appraiser’s department, with the aid of manufacturers and
merchants, which would be satisfactory to all interested, except those who are
profiting by the present system of undervaluation. - -
The late Secretary Manning sums up the objections to ad valorem
rates, and I beg to quote his language. He exposes the vice of the sys-
tem which this bill seeks to engraft upon our legislation:
Whatever successful contrivances are in operation to-day to evade the rev-
enue by false invoices, or by undervaluations, or by any other means, under an
ad valorem system, will not cease even if the ad valorem rates shall have been
largely reduced. They are incontestably, they are even notoriously inherent
in that system.
One advantage, and perhaps the chief advantage of a specific over an ad valo-
rem system is in the ſact that, under the fortner, duties are levied by a positive
test, which can be applied by our officers while the merchandise is in possession
of the Government, and according to a standard which is altogether national and
domestic. * That would be partially true of an ad valorem system levied upon
“home value; ” but there are constitutional impediments in the way of such a
system which appear to be insuperable. But under an ad valoren) system, the
facts to which the ad valorenn rate is to be applied must be gathered in places
many thousand uniles away, and under circumstances most unfavorable to the
administration of justice. One hears it often said that if our ad valorena rates
did not exceed 25 or 30 per cent. undervaluation and temptation to under valua- "
tion would disappear; but the records of this Department for the years 1817,
1840, and 1857 do not uphold that conclusion. *
This one feature of the bill ought to be enough to insure its defeat,
and if the party associates of the late Secretary had given heed to his
Sound utterances this vicious mode of assessment would have no place
in the bill. Instead of simplifying the collection of the revenues as
the title of the bill declares, it will increase the difficulties now ex-
perienced, encourage fraudulent invoices, promote undervaluation, im-
pair the revenue, and do incalculable injury to honest importers and
merchants.
THE GENERAL EFFECT OF PROTECTION.
I now come to consider the general effect of the protective system
upon our people and their employments. There is no conflict of in-
terests and should be mone between the several classes of producers and
the consumers in the United States. Their interests are one, interre-
lated and interdependent. That which benefits one benefits all; one
man's work has relation with every other man’s work in the same
community; each is an essential part of the grand result to be attained,
and that statesmanship which would seek to array the one against the
other for any purpose is narrow, unworthy, and unpatriotic. The Presi-
dent’s message is unhappily in that direction. The discussion had on
this floor has taken that turn. Both have becn calculated to create
antagonisms where none existed. -
The farmer, the manufacturer, the laborer, the tradesman, and the
producer and the consumer all have a common interest in the mainte-
12
nance of a protective tariff. All are alike and equally favored by the
system which you seek to overthrow. It is a national system, broad
and universal in its application; if otherwise it should be abandoned.
It can not beinvoked for one section or one interest to the exclusion of
others. It must be general in its application within the contemplation
of the principle upon which the system is founded. We have been liv-
ing under it for twenty-seven continuous years, and it can be asserted
with confidence that no country in the World has achieved such indus-
trial advancement, and such marvelous progress in acts, Science, and
civilization as ours. Tested by its results, it has surpassed all other
revenue systems. r
From 1789 to 1888, a period of ninety-nine years, there have been
forty-seven years when a Democratic revenue-tariff policy has prevailed,
and fifty-two years under the protective policy, and it is a noteworthy
fact that the most progressive and prosperous periods of our history in
every department of human effort and material development were dur-
ing the fifty-two years when the protective party was in control and pro-
tective tariffs were maintained; and the most disastrous years—years of
want and wretchedness, ruin and retrogression, eventuating in insuffi-
cient revenues and shattered credits, individual and national—were
during the free-trade or revenue-tariff eras of our history. No man liv-
ing who passed through any of the latter periods but would dread their
return, and would flee from them as he would escape from fire and pesti-
lence; and I believe the party which promotes their return will merit and
receive popular condemnation. What is the trouble with our present
condition? No country can point to greater prosperity or more enduring
evidences of substantial progress among all the people. Too much money
is being collected, it is said. We say stop it; not by indiscriminate and
vicious legislation, but by simple business methods. Do it on simple,
practical lines and we will help you. Buy up the bonds, objectionable
as it may be, and pay the nation’s debts, if you can not reduce tax-
ation. You could have done this long ago. Nobody is chargeable for
the failure and delay but your own Administration.
Who is objecting to our protective system? From what quarter does
the complaint come? Not from the enterprising American citizen;
not from the manufacturer; not from the laborer, whose wages it im-
proves; not from the consumer, for he is fully satisfied, because under
it he buys a cheaper and a better product than he did under the other
system; not from the farmer, for he finds annong the employés of the
protected industries his best and most reliable customers; not from the
merchant or the tradesman, for every hive of industry increases the
number of his customers and enlarges the volume of his trade. Few,
indeed, have been the petitions presented to this House asking for any
reduction of duties upon imports. None, that I have seen or heard of,
and I have watched with the deepest interest the number and charac-
'ter of these petitions that I might gather from them the drift of public
sentiment—I say I have seen none asking for the passage of this bill,
or for any such departure from the fiscal policy of the Government so
long recognized and followed, while against this legislation there has
been no limit to petitions, memorials, prayers, and protests, from pro-
ducer and consumer alike.
- NO PUBLIC DEMAND FOR sucDI A MEASURE. 4.
This measure is not called for by the people; it is not an American
measure it is inspired by importers and foreign producers, most of them
aliens, who want to diminish our trade and increase their own; who
want to decrease our prosperity and augment theirs, and who have
13
no interest in this country except what they can make out of it,
To this is added the influence of the professors in some of our institu-
tions of learning, who teach the Science contained in books and not that
of practical business. I would rather have my political economy
founded upon the every-day experience of the puddler or the potter
than the learning of the professor, the farmer and factory hand than
the college faculty. Then there is another class who want protective
tariffs overthrown. They are the men of independent wealth, with
settled and steady incomes, who want everything cheap but currency;
the value of everything clipped but coin—cheap labor but dear money.
These are the elements which are arrayed against us. * *
Men whose capitalis invested in productive enterprises, who take the
risks of business, men who expend their capital and energy in the de-
velopment of our resources, they are in favor of the maintenance of the
protective system. The farmer, the rice-grower, the miner, the vast
army of wage-earners from one end of the country to the other, the
chief producers of wealth, men whose capital is their brain and mus-
cle, who aspire to better their condition and elevate themselves and
their fellows; the young man whose future is yet before him, and
which he must carve out with his hand and head, who is without the
aid of fortune or of a long ancestral line, these are our steadfast allies
in this great contest for the preservation of the American system.
Experience and results in our own country are our best adoisers, and
they windicate beyond the possibility of dispute the worth and wisdom
of the system.
What country can show such a trade as ours, such commerce, such
immense transportation lines, such a volume of exchanges, and such
marvelous production from the raw material to the finished product.
Its balance-sheet is without a parallel in the world’s history—richest
in agriculture, greatest in its domestic trade and traffic, and leading in
manufactures any nation in Europe. Why abandon a policy which can
point to such achievements and whose trophies are to be seen on every
hand? The internal commerce of the United States is greater than the
entire foreign commerce of Great Britain, France, Germany, Russia,
Holland, Belgium, and Austria-Hungary. Why, a single railroad sys-
tem in this country (that of the Pennsylvania Railroad Company) car-
ries more tonnage and traffic in a single year than all the merchant
ships of Great Britain. The whole of Europe has not built as many
miles of railroad as this country has during some recent years, and in
1880 the whole known world did not lay as many miles of track as
were laid across this country. Great Britain’s foreign commerce equals
about one-sixth of our domestic commerce. Can we do better under
any other fiscal policy? We say not. Wise statesmanship commands
us, therefore, to let well enough alone.
Sir Edward Sullivan, in a recent article in the London Post, makes
these suggestive comparisons, which I beg every gentleman to hear:
TJnder free trade the masses must get poorer, because they get less employ-
ment. A well-known statistical work gives a comparison of the material prog-
ress of France under protection and England under free trade. If there is any
truth in figures it ought to startle us from our free-trade dream. -
The comparison is based on the returns of legacy duty:
In 1826 England was 10s. a head richer than France.
In 1850 England was 19s. a head richer than France.
In 1877 England was 5s. a head poorer than France.
France has 57 per cent. of her land under tillage, and it is increasing every
year. -
The United Kingdom has 30 per cent. of land under tillage, and it is diminish-
ing every year, but the population of England increases much more rapidly
than the population of France. - t
The commerce of England has increased 21 per cent. in ten years.
9.
14
The commerce of France has increased 39 per cent. in ten years.
The commerce of the United States has increased 68 per cent. in ten years.
The commerce of the world has increased 26 per cent. in ten years.
So much for the blasting effect of free tracie.
In Germany, so long-ago as the 14th of May, 1882, Bismarck, in a
speech before the German Reichstag, paid to the Republican tariff
high eulogy. He said:
The success of the United States in material development is the most illustri-
ous of modern time. The American nation has not only successfully borne and
suppressed the most gigantic and expensive war of all history, but immediately
afterward disbanded its Army, found employment for all its soldiers and ma-
rines, paid off most of its debt, given labor and homes to all the unemployed
of Europe as fast as they could arrive within its territory, and still by a system
of taxation so indirect as not to be perceived, much Jess felt. Because it is my
deliberate judgment that the prosperity of America is unainly due to its system
of protective laws, I urge that Germany has now reached that point where it is
necessary to imitate the tariff system of the United States.
You may try protection by any test you will. , You may try it not only
by the condition of the individual citizen and his happiness and pros-
perity and the aggregate prosperity of the nation, but try it by the pro-
gress which has been made in invention and scientific development; try
it by any standard you may raise, the protective system shows by its
results that it surpasses any other. You can match it with no other.
Go to the Patent Office and examine the evidences furnished from
that great register of the products of American genius. , Take the States
which have stood by the protective system, which have believed in it,
which have been built up under it, and contrast them with the States
whose Representatives have stood in unyielding opposition to the sys-
tem on this floor. See what result you get. Take Connecticut, a little
State, but a manufacturing one. In the year 1887 there were 788 pat-
ents granted to the inhabitants of that State, 1 for every 790 of its in-
habitants, while for Arkansas the number of patents granted was 65,
1 for every 12,346. Take Massachusetts: In 1887 there were 1,875 pat-
ents granted to the people of that State, 1 to every 950 of her popula-
tion, while to Kentucky there were 245 patents granted, or 1 to every
6,729 of her population. Take Illinois: 1,595 patents were granted to
her people, 1 to every 1,929 of her population, while for Georgia there
were 130, or 1 in every 11,862 of her population. Here is the list:

* [From the Commissioner's report, 1887.] .
One to
States. Patents. every in-
\ | habitant.
Connecticut........................................................................... 788 790
Arkansas “............................................................................ 65 12, 346
Massachusetts “.................................................................... 1,875
Illinois................................................................................... 1,595 1,929
*entucky ............................................................................. 245 6, 729
Georgia “............................................................................... 130 11,862
New Jersey........................................................................... 988 1, 144
Touisiana y 112 8,392
New York........ 4,047 1,255
Mississippi 45 25, 146
Oblio 1,477 2, 165
North Carolina 66 21, 208
Pennsylvania 2,109 | 2,030
South Carolina & 52 19, 145
Rhode Island 224 1,234
Tennessee 121 12, 746
Vermont, - 112 2,966
Virginia... 132 11,458
California º 505 1,712
Texas 265 6,006
\
15
These figures need no comment; they point their own moral; they en-
force their own lesson. They demonstrate better than any argument
that I can make that invention and progress and the general diffusion
of knowledge follow manufacturing and industrial enterprises. [Ap-
plause.]
• . h A EIO:IE MARIKET. *
Why, Mr. Chairman, the establishment of a furnace or factory or mill
in any neighborhood has the effect at once to enhance the value of all
property and all values for miles Surrounding it. They produce in-
creased activity. The ‘farmer has a better and a nearer market for
his products. The merchant, the butcher, the grocer, have an increased
trade. The carpenter is in greater demand; he is called upon to build
more houses. Every branch of trade, every avenue of labor, will foºl .
almost immediately the emergizing influence of a new industry. The
truck farm is in demand; the perishable products, the fruits, the vege-
tables, which in many cases will not bear exportation and which a for-
eign market is too distant to be available, find a constant and ready
demand at good paying prices. -
What the agriculturist of this country wants more than anything
else, after he has gathered his crop, are consumers, consumers at home,
men who do not produce what they eat, who must purchase all they con-
sume; men who are engaged in manufacturing, in mining, in cotton-
spinning, in the potteries, and in the thousands of productive indus-
tries which command all their time and energy, and whose employ-
ments do not admit of their producing their own food.
The American agriculturist further wants these consumers near and
convenient to his field of supply. Cheap as inland transportation is,
every mile Saved is money made. Every manufacturing establishment
in the United States, wherever situated, is of priceless value to the
farmers of the country. The six manufacturing States of New Eugland
aptly illustrate the great value of a home market to the Western farmer.
These States have reached the highest perfection in skill and manu-
factures. They do not raise from their own soil, with the exceptions
of hay and potatoes, but a Small fraction of what their inhabitants
require and consume; they could not from their own fields and gran-
aries feed the population which they had in 1830, much less their
present population. The most intense revenue-reformer, the most up-
enlightened Democrat, will have to confess that New England is in-
debted in large part ſor her splendid development to the protective
system. Now, has her prosperity and progress been secured at the sac-
rifice of otherinterests and othersections? Ianswer no, but has brought,
as I believe I shall be able to show, a positive blessing to all of our
60,000,000 of people.
In 1880 the population of these six States was over 4,000,000. The food
products required by their people, the very necessities of their daily life in
a large measure, came from other States and remote Sections of the Union.
They raised in 1880 but one-quarter of 1 per cent. of the total wheat pro-
duction of the United States. They raised in the same year but one-half of
1 per cent. of the total crop of Indian corn, 2} per cent. of the oats, 12
per cent. of the hay, and 13 per cent. of the pºtatoes which were pro-
duced in the United States. What did they consume? What did they
buy of the Western farmer? Fifty millions of dollars’ worth of meat
were consumed by their industrial people in a single year. The extent of
their needs is strikingly shown by the fact (obtained from the accounts of
Commissioner Fink, that during the year 1884 “the trunk lines” brought
into New England no less than 470,000 tons of flour and 950,000 tons of
16
grain. At 200 pounds to the barrel of flour, this is an importation of
4,700,000 barrels, or one and one-fifth, nearly, for each inhabitant.
During the same year there were exported from Boston and Portland,
the only points in New England from which breadstuffs are sent abroad,
2,100,000 barrels of flour, leaving for consumption within these States
2,600,000 barrels. These figures take no account of the large trade by
water from New York. I am informed that a large part of the flour
consumed in Connecticut, Rhode Island, and Southern Massachusetts
is received in this way, but no reliable statistics are available. It is
reasonable, however, to suppose, and this comes to me from what I
deem good authority, that the amount thus received and consumed
offsets a large portion of the foreign exports to which I have referred.
Qf the grain received during the same year rather less than 400,000
tons were exported, leaving for New England consumption 550,000 tons,
for all of which these States were the customers of the West in addition
to the amount grown upon their own Soil. In addition to this, New
England consumed, in 1886-'87 in her ſactories nearly one-fourth of
the entire cotton crop of the country. More than this, she used in her
woolen millsin 1880 fully one-half of the entire wool clip of the United
States, and during the year 1886 she consumed more than one-sixth of
the entire anthracite-coal production of the country and 5% per cent. of
the bituminous-coal production, and every pound of both came from
the Middle and Southern States. i -
Is not New England (I appeal to the gentlemen of the other side, I
appeal to the farmers of the country) worth preserving? Is not the
industrial system which makes such a community of consumers for
agricultural products possible worth maintaining? Does not she fur-
nish you a market worth fostering? Does not she give you a trade
and an exchange of products worth your while to guard with the most
considerate care? And does not her condition indicate the wisdom of
the policy we advocate? Is not her market better for you than a for-
eign one? Is not New England a better customer for you, more reli-
able, more easily reached, more stable, than Old England? [Applause
on the Republican side.] Ismot Boston a better consumer for the people
of the United States than London, New York than Liverpool, Pitts-
burgh than Manchester, Cincinnati than Birmingham 2 [Applause on
the Republican side.] .
New England buys of you for all her wants; Old England takes not
a pound or a bushel from you except what she must have and can not get
elsewhere. -
Now, let us contrast this home market of New England with the
foreign market of Old England. In 1880 New England consumed 540,-
000,000 pounds of cotton, at 11.61 a pound, which in value then
amounted to $62,695,000, 20 per cent. greater than the per capita value
of all our domestic exports to the United Kingdom, and this was only
New England’s contribution to the Southern producers of cotton. She
sends at least $70,000,000 to the West and Northwest for her food sup-
plies. She sends to the wool-growers of the Middle, Western, and Pa-
cific States $40,000,000 annually for their fleeces. I repeat, is not this
market worth preserving, ay, cherishing, and does it not make us long
to have New England thrift, New England enterprise, and New Eng-
land politics more generally distributed throughout all sections of the
country? [Applause on the Republican side.]
You can destroy this valuable home market by such legislation is as
proposed in this bill; you can diminish this demand for food, for cotton,
for wool, for flax, and hemp produced in other sections of the country
17
by following the delusive theories of our friends on the other side of
the House; you can diminish the capacity of the operatives to buy of
you by diminishing their Wages; you can drive them from the cotton
and woolen factories to the farms; they will then drift to the West and
Northwest, not to engage in manufacture, but in a great measure to be-
come tillers of the Soil, and instead of being as they are now, and as
they will be under a propertariff system, your consumers, they become
your competitors. They go from the ranks of consumers to the ranks
of producers; diminish the consumers and increase the producers. The
foreign market for agricultural products is one of the delusions of free
trade. If it ever had any real Substance as against a good home marke
that has long since disappeared. - -
The chairman of the Ways and Means Committee says to the Western
farmer, “Let New England go. Pass her by and go to Old England.”
Well, that is about as practical as the Democratic party ordinarily is.
[Laughter on the Republican side.] -
Mr. DUNN, a prominent member of this House and chairman of one
of its leading committees, and I remember to have heard him say what
I now read from the RECORD:
The wheat, producer of the Northwest is standing face to face with the wheat
producer of India. A few years ago India shipped 40,000 bushels of wheat. Last
year (1885) she put into the market,40,000,000 bushels. . Can you protect the North-
west farmer against that labor? India can put wheat down in the markets of con-
sumption in Europe cheaper than we can transport it from the fields of produc-
tion to the markets of consumption; that is to say, India can produce and market
her wheat in Europe for what it costs the farmer of the Northwest to trans-
port his to the market of consumption, without allowing him for the cost of pro-
duction. In other words, the transportation of wheat costs the American farmer
as much as both transportation and production cost the India farmer.
In the face of a statement like this, from such high Democratic au-
thority, how, I ask, is the wheat of the American farmer to reach the
IEuropean market with any profit to our producers? And yet it is to
this kind of competition the chairman of the Ways and Means Com-
mittee invites the American farmer. Do the farmers want such a mar-
ket with such a competition? What their answer will be no man can
doubt. They reject with indignation and scorn the chairman’s moria-
tion. [Applause.] The home market is the best, besides being the
safest. It has got the most money to spend, and spends the most. It
consumes the most; it is therefore the most profitable.
The masses of our people live better than any people in the world
Great Britain only buys our food products when she has not enough of
her own and can reach no other supply. This market, therefore, is fit-
ful and fluctuating, and can not be relied upon as we can rely upon our
own consumers. The foreign market under a revenue tariff for agri-
cultural products has not been encouraging in our own experience in
the past. It promises less under such a system in the future.
b INCREASED IMPORTATIONS THIS PURPOSE OF TEIE BILL.
The chairman of the committee in opening this debate boldly an-
nounced that we must increase foreign importations to Secure mational
prosperity. How much does the gentleman and the party with which
he is associated desire to increase importations? Are they not large
enough already? Are they not now crowding our producers and di-
minishing their annual productions? Are they not already making
labor restless, filling it with apprehension and uncertainty as to the
future? Is this country to be the dumping ground of foreigh prod-
ucts? During the last fiscal year over $233,000,000 in value of for-
M’KIN.—2
18
eign merchandise was imported into the United States free of duty,
and over $450,000,000 additional was imported which paid a duty.
Is this not enough? Do the iron and steel workers want further im-
portations in their line, representing cheap labor, to compete with the
product of their labor? Over $50,000,000 in value of iron and steel
manufactures was imported last year, every dollar of which repre-
sented foreign capital and foreign labor, which might well have been
produced at home. Everyton could have been made here, and American
hands were waiting to make it. A
How much labor do you suppose was represented by the $50,000,000
worth of iron and steel that came into this country last year? It would
have taken 1,740 puddlers and helpers, working every day for 300 days
in the year, to have produced the scrap-iron that came from Europe last
year. It would have taken 2,500 men 300 days to have produced the bar
and structuraliron, and steel billets, and slabs, and ingots which were im-
ported into the United States last year. It would have taken 300 men
300 days, besides those engaged in preparing the raw material, to have
produced the plates and sheets, the corrugated iron, and the steel in
various forms imported last year. It would have taken 3,700 men 300
days to have made the wire rods and the nails and the screws and
wire in various shapes which were imported into the United States last
year. It would have taken 800 men 300 days to have made the washers,
and the bolts, and the fish-plates, and railway-plates, the steel tire,
hinge-iron, and tubes of steel which were imported into this country
last year. It would have taken 500 men 300 days to have made the iron
and steel rails which were brought into the United States from abroad
last year. It would have taken 24,000 men to manufacture the tin-
plate imported last year. Summing up these figures 33,540 men, work-
ing for 300 days, would have been required to produce the $50,000,-
000 worth of iron and steel which we imported last year. Do you want
that volume increased? Ten million sixty-two thousand is the aggre-
gate number of days’ work that were taken from American working-
men, every day’s work of which they could have performed, and were
waiting ready to perform. [Applause..] Including all branches of
labor required to manufacture the fifty millions of imported iron and
steel and the manufacture thereof, taking into account the labor em-
ployed in the mining, transportation, and manipulation of the raw ma-
*ērials, and it would employ nearly, if not quite, one hundred thou-
Sand men. A
I do not know what you think about it; but I would not permit a
single ton of steel to come into the United States if our own labor
could make it. [Applause.J Let American labor, as far as practi.
cable, manufacture American products. [Applause..] And if you do
not like it, you know what you can do. [Laughter.] This Govern-
ment is made for Americans, native-born and naturalized; and every
pound, every bushel, every ton, every yard of foreign product that
comes into this country to compete with ours deprives American labor
of what justly belongs to it. *
Do the farmers want increased importations of agricultural products?
Of barley alone there were $6,152,000 of value imported last year, and
of vegetables a value of $2,276,000. The total imports of the products
of agriculture for the year 1887 free and dutiable were in value $197,-
308,240. Of this sum $46,678,443 was admitted free of duty and the
remainder paid a duty. Do the agriculturists want the duties all re-
moved and their products driven from this market. Seven million
three hundred thousand dollars’ worth of foreign glass came into this
19
Country last year. Do the glass-blowers want this volume increased ?
Five million five hundred and forty-five thousand dollars’ worth of
pottery of foreign make entered our market last year. Do the potters
want this vast sum augmented? Will the wool-growers who were com-
pelled to compete with $16,000,000 worth of foreign wool last year
relish the prospect of having their product further displaced next year;
and the labor engaged in woolen manufactories in this country, are they
anxious that the $44,000,000 worth of woolen goods imported in 1887
in competition with the products of their labor shall be multiplied in
1889? All these importations will be greatly increased if this bill shall
become a law. Every invoice of foreign goods which comes here the
like of which we can make crowds out just so much American labor.
Is there to be no limit to this foreign invasion ?
I answer, only to the extent that our people shall make importations
impossible by reducing the cost of the home product. This will be the
only restraint upon foreign merchandise glutting this market to the dis-
placement of our own. If our present labor conditions are maintained—
and this bill gets upon our statute-book—there will be no barrier in
the way of a perfect, inundation of foreign goods in the United States.
It should not be forgotten that low-duties or no duties substitute for-
eign imports for home-made and home-grown products, and to the ex-
tent of Such substitution take work and wages from American labor.
The effect of this bill, and there can be no other, is to increase importa-
tions, displace our own products by foreign ones, diminish the output
of our factories and mills, curtail the demand ſor labor, and reduce the
wages of those who may be able to get work. This result is as clear
and manifest to me as the simplest mathematical problem, and we have
only to look at the wage scale of competing nations to know what our
labor will come to with free trade or its equivalent. We can not com-
pete with foreign nations without the restraint of a tariff unless we
have equal conditions and equal labor cost. To do this we must intro-
duce European conditions and European methods in the United States,
and that is what this bill and all similar legislation mean.
“The trammels of trade must be removed” is the language employed
by the friends of this bill. How and in what way? Tirst, by removing
the duty from raw materials used in manufacture, which of necessity
Will be at the expense and loss of those engaged in preparing them.
But to a tariff reformer that is of little account. This trammel must
go, to enable the domestic manufacturer to compete with the foreign
manufacturer at home and abroad. After this, and next in order, the
trammel of high wages must be removed. This is the most important
and essential of all. This is the chief obstruction. Free raw material
will not equalize the condition of manufacturers at home with those
abroad, Cheap labor, underpaid labor, underfed labor will be the next
demand of the advocates% of this bill. Some of them have been frank
enough to avow it already. This is the inexorable logic of the situa-
tion. If we are to control the whole of our own market and send our
manufactures across the sea, it can be accomplished in One way only, by
reducing the cost of the home product to the same or below the cost of
the foreign product. To do this every intelligent man knows involves
an enormous reduction of the wages of American workingmen. To
this a revenue tariff comes at last and from which there is no escape
and against it every true American interest cries out in an emphatic
and earnest protest.
I propose a wiser and more patriotic solution of the difficulties of our
financial situation. If we will buy more American goods and less foreign,
20
we will reduce the income of the Government and leave and increase
the surplus among the people. If we will buy more American mer-
chandise and less of foreign make, manufactures at home will run the
year round and labor will be suitably rewarded and steadily employed.
If we had some of that lofty patriotism evinced by the fathers, if we
were more American in feeling, sentiment, and purpose, there would
be fewer advocates of this bill.
AMERICAN WAGES AGAINST EUROPEAN WAGES.
There has been much effort made in this debate to show that, after all,
American workingmen get no better pay than the workingmen of other
countries. Tetus consider this branch of the discussion for a little while,
for if it be true that labor here is no better rewarded than elsewhere, then
the strength of protection is much weakened. I beg to cite, against.
the unsupported statements of the gentlemen who have already spoken
upon the other side, the testimony of American workingmen whose op-
portunity for information from experience in both countries, and other-
wise, makes their evidence incontrovertible. From the statements made
March 10, 1886, before the Committee on Ways and Means, I read.
Some of this testimony is two years old, but the only reason it is so is
|
because laboring men were not permitted to testify this year. [Laugh-
ter and applause.]
Mr. Roger Evans, workingman, speaking upon this subject, said:
Of course you must not gauge the American workingman by the amount of
coarse bread and meat which will be necessary for him to subsist upon. It can
not be. The American workingman must have other things than those. He
must be fed and clothed and be able to maintain his family as becomes the dig-
nity of an American citizen. -
Another, Mr. Philip Hagan, spoke as follows:
Mr. Chairman and gentlemen, I was born under a free-trade government, and
I believe that that free-trade government deprived me of an education. The
reason of that was that I had to go to work when] I was eight years of age; and
I remember also my little brother going to work under that free-trade govern-
ment when he was eight years of age. I remember well when there was a fam-
ily of nine of us (including phy father and mother), and when my wages for work-
ing in a mill were 10 cents per day. That was under a free-trade government.
Subsequently I went up higher there to 5 shillings a day, or $1.25. That was
about the limit I could reach—six and sixpence a day—and having to pay 60
cents out of that to my helper. - -
Many members of this committee know all this just as well as I am stating it,
and I am not going to detain you any longer; but I will state that as soon as
my limited knowledge informed me that labor was protected in the United
States I came here. I declared my intentions and [became a citizen of the United
States. And now I have a family, and now I make regularly 14 shillings a day.
The produce on which I lived in England came mostly from the United States,
and certainly I ought to get it as cheap here as in England. I worked for 5
shillings a day in England, and I get 14 shillings a day here. Consequently I
am able to send my children to school, and they are getting an education, which
their father did not get under a free-trade government. I want to see these
children raised up and educated as citizens.
[Applause.] -
Mr. Thomas Williams said:
As American citizens we can not be compelled to subsist upon what the work-
ing people of England, France, or other European countries subsist upon. The
people of this country have made it just what it is, and in a very great measure
the working men have made it what it is. Some of us have come across the At-
lantic, leaving the land of our birth, and have come here with the expectations
that we were going to better our condition. We have bettered it in a great
measure. We will get along if you will let us alone. The manufacturers and
ourselves will fight our own battles. º *
Mr. Thomas P. Jones said:
I came to this country to better my condition, and I am happy to say that I
have bettered my condition. I have made more wages than I ever made in the
old country. -
It has been shown here to-day, and, as I think, very clearly, that this tinkering
* 21
with the tariff is not for the best interests of the country; is not for the best in-
terests of the wealth-producers, of the men who built up this country. Then,
gentlemen, I take it that it is your duty to throw this bill to the dogs. I cer-
tainly do not stand to dictate to you altogether in this matter, but I will assure
you this far: that there is a 'school of education among the working people in
this country, and that if this tinkering of the tariff is allowed to proceed; if
you will, in spite of our remonstrailces, go on destroying our interests and shut-
ting up the industries of the country, our working people will be ere long suffi-
ciently educated to step forth and say, “Gentlemen, thus far shall you go, and
no farther.” We will clect men and send them here to legislate for our interests
if you will not do so. We have the power, gentlemen, and you know it.
Laborers in this country were never so cemented as they are to-day. One of
the principal things which has helped us to that is this very bill which the hon-
orable chairman has brought before this committee. Where I live, in Chicago,
you would be surprised to see the feeling that exists among the working classes.
And why? Because some of the people there worked in this country in free-
trade times. I have a brother-in-law who, in free-trade times, traveled to his
work 6 miles in the morning, getting there at Sun-up, worked all day, and
walked home at sundown, and all for a paltry 50 cents a day. I also have
worked for 50 cents a day, but not in this country, thank God. I have worked
for 25 cents a day, but I do not want to have to do it again. I have seen in the
city of Glasgow, in Scotland, men working for 12 cents a day and a bowl of
soup. That does not become an American citizen. We can not have such a
state of affairs here, and we will not have it.
I have a letter from Mr. William Barbour, of the Barbour Flax Spin-
ning Company, of Paterson, N. J., under date of 31st of March, in
which occurs the following:
DEAR SIR : As a stockholder and director of Barbour Flax-Spinning Company,
of Paterson, N. J., I wish to make a statement to you regarding the flax-thread
industry, and to call your attention to the effect which the proposed Mills bill
would have upon it.
:: $: sº :: : ::: $:
While I am an American born, and the industry Irepresent in Paterson, N.J.,
is thoroughly American, I am also a large stockholder in a flax-spinning com-
pany in Ireland; and that you may judge of the relative wages paid in the two
cc untries, I would state that the pay-rolls of the two mills, as recently compared,
differed only about $500, the number of hands in the Irish mill being 2,900 against
1,400 in the New Jersey mill.
*
* * * * Yºr ir
Yours, truly,
Hon. W. McKINLEY, Jr.,
Washington, D. C.
That is, 1,400 American laborers are paid the exact sum which 2,900
laborers are paid for the same labor in Ireland, and yet gentlemen
would have us believe there is no difference in favor of the American
workingman. [Applause.] . * -
The Singer Sewing-Machine Company maintains a factory in Glasgow,
Scotland, as well as its works in New Jersey. It employs one-third
more hands in its Scotch establishment, yet the pay-roll there is only
half that of its American works, the actual figures being $18,000 and
$35,000.
Mr. HERBERT. Will the gentleman allow me to ask him a ques-
tion ?
Mr. McKINLEY. Certainly.
Mr. HERBERT. Can the gentleman tell me the price a sewing-
woman in Scotland pays for a sewing-machine and the price a Sewing-
woman in New Jersey pays for the same kind of a sewing-machine?
Mr. McKINLEY. Yes, sir; I am told the prices are about the same
except a sewing-machine in Scotland costs more than a Sewing-machine
in America. [Laughter and applause.] g
John H. Ross, superintendent Boston Thread and Twine Company,
under date of April 23, 1888, says: -
We are paying three times the average wººes ºaid for similar labor through-
out Europe. !
WM. BARBOUR.
22
Here is a letter under date of April 26, 1888, from the representatives
of at least a half million workingmen of the United States:
* WASIIINGTON, D.C., April 26, 1888.
DEAR SIR : Having seen by the papers that Mr. MILLS and others, in their
speeches in the House of Representatives upon the tariff bill, have asserted the
wages paid to labor were no higher in the United States than in Europe, we,
the undersigned, desire to state, through you, to the members of Congress that
such statements are misleading and false. Wages are higher in this coun-
try than in any other in the world. Notwithstanding the fact that the state-
ments have been made by members on the floor of the House of Representatives
that the tariff only benefits the manuſacturer, and that they receive all the ad-
vantages from the protection given by the Government, we know that we re-
ceive our share of the benefits of protection on the industries we represent.
We therefore emphatically protest against any reduction of the duties that
will bring us on a level with the low price paid for labor in Europe. We insist
upon the maintenance of a strong protective tariff, in order to maintain an
American standard of wages for American workingmen. -
Respectfully yours, .
WILLIAM WEIHE, President of LOUIS ARRINGTON, Master Work-
Amalgamated Association of Iron mºn Glass Blowers’ Assembly 143.
and Steel Workers. JAMES CAMPBELL, President of
WM. MARTIN, Secretary of Amal- Local Assembly 300, Iºnights of
gamated Association of Iron and Labor, Window Glass Workers of
Steel Workers. America.
JOHN CONRLING, Master Work- W.M. J. SMITH, President American
mam National Assembly Iron and I'limit Glass Workers’ Union.
Steel Workers’ Knights of Labor. WM. J. DILLON, Secretary.
JOHN COFFEY, Master Workman
Glass Blowers' Assembly 149.
Hon. WILLIAM MCICINLEY,
Washington, D. C.
This bill proposes to equalize American production with European
production by bringing down American wages to the level of European
wages, and, Mr. Chairman, I give you notice here to-day that you can
not do it. [Applause.]
AGRICULTURAL WAGES.
Now as to farm wages here as contrasted with other countries. I
have a letter from Mr. Dodge, the Statistician of the Agricultural De-
partment: *
UNITED STATES DEPARTMENT OF AGRICULTURE,
BUREAU of STATISTICS,
Washington, D. C., March 29, 1888.
The wages of white labor in agriculture in this country is about $24 per month.
In England, the average wages paid for agricultural labor, according to J. S.
Jeans, in the Royal Agricultural Society’s Journal, was about $12.65 per month.
It has been reduced since 1880. -
In the Argentine Republic the common farm hands get $10 to $12 per month.
In India agricultural wages are about $20 to $25 per year.
Wages here in the wool-growing industry are two or three times as much as
in competing countries.
Consul Wamer, at Cologne, in his official report of May 21, 1886, to
the State Department, gives a statement of the increase of exports from
Germany to the United States, also the wages paid. The laborer,
whether he works in iron orsteelworks, factories, stone-quarries, or rail-
roads, earns as a rule from 47 to 70 cents per day, and for skilled labor
he may get from 80 to 92 cents per day. Women, when employed, earn
from 24 to 30 cents per day. Boys under sixteen receive 19 to 24 cents
a day, and an extra strong boy may earn 30 cents. Working hours are
from 6 to 6 in summer, and 7 to 7 in winter, with one hour for dinner.
The consul-general at Vienna, in speaking of the Austrian laborer,
Says a home of his own, though ever so modest, is beyond his reach.
Consul Tanner, at Chemnitz, Saxony, says:
The customary wages to hired servants on a farm are $57.19 per year, with
23
board and lodging, for men, and $28.50 for females. Field hands are paid at the
rate of 53 cents per hour. Women receive 2# cents per hour.
Speaking of their food, he says:
Sugar or sirup are never allowed, and but very little milk. Tea, is never
used. For dinner they bave meat and vegetables three times a week, and al-
ways on Sundays. wº
This effectually disposes of the claim that wages in England and
other countries are as high as here.
$ WAGES IN TEIE SOUTEI AND PROTEIBTION TO RICE.
The wage question in the South is interesting, and I have seen it no
better stated, and the reason for maintaining protection nowhere more
strongly presented than in the report made this year on the American
rice industry, prepared by the Rice Association and addressed to the
association of Savannah. I read:
During this period [from 1840 to 1860] the duty on foreign rice was 20 per cent.
ad valorem. In all the rice-producing divisions of the country slave labor was
then employed, and mo foreign rice was innported.
It will be noted that slave labor operates as a positive prohibition to
foreign imports. It takes the place of a protective tariff, and presents
to labor a choice between the one and the other.
Cheap labor can successfully compete with cheap labor on equal terms
and with equal chance of profits in the markets of the world without the
aid of legislative protection, and what I have read shows the character of
labor best adapted to free trade. This report says the conditions sur-
rounding the American producer have entirely changed. Let me read:
Since the emancipation of the slaves the cost of agricultural labor in the South
has been greatly increased. In the rice districts of the Carolinas and Georgia,
field labor fanges from 40 to 60 cents, and the best expert (not mechanical) labor
to $1 per diem.
So that no time since 1865 could rice have been cultivated as a staple product
without the protection afforded by import duties upon foreign grain.
Now, with what labor does the Southern rice-grower compete? I
will read from this report a quotation from the report of the United
States minister at Pekin:
Coming now to the field-hand whom the farmer hires, we arrive at the sub-
stratum of labor. The average wages of an able-bodied young man is $12 per
annum, food, straw, shoes, and free shaving. Deducting $4 for his clothing, he
Saves $8 annually—or may do so.
Ten years' saving will enable him to buy one-third of an acre of land (value
er acre, $150) and necessary implements by which he can attain by his own
º: a subsistence. * * * In ten years he can become possessor of two-thirds
OI all a Cre. “
The report goes on further:
In Japan, the field-hands receive their food and lodging with wages from $8.60
to $12.96 per annum. The wages of females are about $6 per annum.
In British India, the per diem is 6 cents for males and 1% cents for females.
In Kurnel the highest permanent wages are 50 cents per Imonth.
In Borat men employed by the year get from 80 to 100 pounds of grain per
month, and from 44% cents to $1.98 per annum. '. *
In Bombay and Madras laborers are paid from 6 to 12 cents per diem.
Hence the wages paid at the South in the rice-fields are many fold greater
than those paid to laborers in the rice-fields of Asia. Two-thirds of the cost of
production is disbursed in wages in the former.
The report then concludes:
The contrast in this element of cost should render unnecessary any further
comment than that without the intervention of the existing import tax on Asi-
atic rice competition would seem impossible.
This argument I commend for its force and fairness, and it makes
out a strong case for the rice-grower, who in my judgment deserves
protection and which we cheerfully accord; but the same argument ap-
plies with equal force to domestic wool, flax, and hemp, and other prod-
24
ucts of agriculture and manufacture. They are all within the same
principle; all of them cultivated and produced with wage-labor greatly
in excess of that paid abroad. Yet these American products are to be
severely crippled, if not wholly destroyed:
This statement of the rice-growers is a most striking demonstration of
the wisdom and necessity of protection. It shows what is true in the
Northis true in the South. The chief and controlling question is one of
labor, and so long as the labor costherein any department of employment
exceeds the labor cost in Europe so long we must have a protective
tariff which shall compensate for this difference. And whether the
labor is in the rice-fields of Georgia, and of the Carolinas, or in the
wheat-fields of the Northwest, in the factories of New England, the
mines of Maryland and Virginia, or the furnaces of Pennsylvania, Ohio,
and New Jersey, it must be protected against the less rewarded labor
whose products come in competition with theirs. Either this tariff
must be maintained to maintain the difference of wages or one of two
things must inevitably occur: we must abandon production in many
of the most valuable fields of industry here or our labor must come
down to the standard of the competing labor; and we may discuss our
theories until the frosts of December and we can not alter the fact.
This is the issue and it can not be evaded.
- LABOR NOT ASTRING FOR IT-CEIEAP CLOTHING.
It is a fact worthy to call to the attention of the House that a labor
organization representing a million working men, with its representa-
tives in this city whose sole duty is to look after the interests of labor,
have given no sign of approval of this bill. Not a petition has come
through this source asking for its passage, or anything like it. What-
ever utterance has been made has been in opposition and protest.
Every member on this floor has observed the activity of this committee
of Knights of Labor in regard to legislation affecting the interests of
labor, but in all their vast constituency, found in every State of the
|Union, found in the fields, in the factories, workshops, and mines, no
word or sign but of disapproval and condemnation has come.
The expectations of cheaper clothes is not sufficient to justify the
action of the majority. This is too narrow for a nationalissue. No-
body, So far as I have learned, has expressed dissatisfaction with the
present price of clothing. It is a political objection; it is a party slo-
gan. Certainly nobody is unhappy over the cost of clothing except
those who are amply able to pay even a higher price than is now ex-
acted. And besides, if this bill should pass, and the effect would be
(as it inevitably must be) to destroy our domestic manufacturies, the
era. of low prices would vanish, and the foreign manufacturer would
compel the American consumer to pay higher prices than he has been .
accustomed to pay under “the robber tariff,” so called.
Mr. Chairman, I represent a district comprising some 200,000 people,
a large majority of the voters in the district being workingmen.
bave represented them for a good many years, and I have never had
a complaint from one of them, that their clothes were too high. Have
you? [Applause on the Republican side..] Has any gentleman on
this floor met with such complaint in his district 2
Mr. MORSE. They did not buy them of me.
Mr. MCRINLEY: No! Let us see; if they had bought of the gen-
tleman from Massachusetts it would have made no difference, and there
could have been no complaint. Let us examine the matter.
[Mr. MCKINLEY here produced a bundle containing a suit of clothes,
which he opened and displayed amidst great laughter and applause.]
25
Come now, will the gentleman from Massachusetts know his own
goods? [Renewed laughter.]. We recalſ, Mr. Chairman, that the chair-
man of the Committee on Ways and Means talked about the laboring
man who worked for ten days at a dollar a day, and then went with
his ten dollars wages to buy a suit of clothes. It is the old story. It
is found in the works of Adam Smith. [Laughter and applause on the
Republican side.] I have heard it in this House for ten years past. It
has served many a free-trader. It is the old story, I repeat, of the man
who gets a dollar a day for his wages, and having worked for the ten
days goes to buy his suit of clothes. He believes he can buy it for just
$10; but “the robber manufacturers” have been to Congress, and have.
got 100 per cent. put upon the goods in the shape of a tariff, and the suit
of clothes he finds can not be bought for $10, but he is asked $20 for it,
and so he has got to go back to ten days more of sweat; ten days more of
toil; ten days more of wear and tear of muscle and brain to earn the
$10 to purchase the suit of clothes. Then the chairman gravely asks
is not ten days entirely annihilated?
Now, a gentleman who read that speech orheard it was so touched by
the pathetic story that he looked into it and sent me a suit of clothes
identical with that described by the gentleman from Texas, and he
sends me also the bill for it, and here is the entire suit, “robber tariffs
and taxes and all” have been added, and the retail cost is what ? Just
$10. [Laughter and applause on the Republican side..] So the poor
fellow does not have to go back to work ten days more to get that suit
of clothes. He takes the suit with him and pays for it just $10. [Ap-
plause.] - -
But in order that there might be no mistake about it, knowing the
honor and honesty of the gentleman from Massachusetts [Mr. MORSE],
he went to his store and bought the suit. [Laughter and cheers on
the Republican side..] I hold in my hand the bill.
Mr. STRUBLE. Read it.
Mr. McKINLEY (reading):
BosTon, May 4, 1888.
J. D. Williams, bought of LEoPold MoRSE & Co.; men's youth's, and boys'
clothing; 131 to 137 Washington street, corner of Brattle— 4.
I believe it is.
Mr. MORSE. Yes, Brattle.
Mr. McKINLEY (reading):
To one suit of woolen clothes, $10. Paid.
[Renewed laughter and applause.]
And now, Mr. Chairman, I never knew of a gentleman engaged in
this business who sold his clothes without a profit. [Laughter.] And
there is the same $10 suit described by the gentleman from Texas that
can be bought in the city of Boston, can be bought in Philadelphia, in
New York, in Chicago, in Pittsburgh, anywhere throughout the coun-
try at $10 retail the whole suit, coat, pants, and west, and 40 per cent.
less thanit could have been bought in 1860 under yourlow tariff and low
wages of that period. [Great applause..] It is a pity to destroy the
sad picture of the gentleman from Texas which was to be used in the
campaign, but the truth must be told. But do you know that if it was
not for protection you would pay a great deal more for these clothes? I
do not intend to go into that branch of the question, but I want to give
one brief illustration of how the absence of American competition im-
mediately sends up the foreign prices, and it is an illustration that every
man will remember. My friend from Missouri [Mr. CLARDY], who
sits in front of me, will remember it. The Missouri Glass Company was
26
organized several years ago for the manufacture of coarse fluted glass
and cathedral glass. Last November the factory was destroyed by fire.
Cathedral glass was their specialty. Within ten days from the time that
splendid property was reduced to ashes the foreign price of cathedral
glass advanced 28 per cent. to the American consumer. [Applause on
the Republican side..] Showing that whether you destroy the Amer-
ican production by free trade or by fire it is the same thing; the price
goes up to the American consumer, and all you can do is to pay the
the price the foreigner chooses to ask. [Renewed applause.]
- THE Poor MAN's BLANKETs.
Now, the gentleman had a lot of blankets here the other day. The
very climax of the gentleman’s speech was reached When he came to a
description of the American blankets, and the enormous burdens that
the tariff laid upon the poor man’s bed and covering. Why, you would
have supposed that he was enunciating the national issue for 1888, and
I think really that is about all they have left now that civil-service re-
form is gone. [Laughter.]
Now what is the fact? He told you that for one pair of 5-pound
blankets, which he exhibited, the price was $2.51, the labor cost 35 cents,
the tariff $1.90, and the difference between the labor and the duty
$1.55. Then the gentleman from Texas turned to this House and to
his admiring associates and listening audience and said: “Why does
not the manufacturer give the laborer that $1.55, the difference be-,
tween the labor cost and the duty ?” which inquiry was followed by
deafening applause. - -
Did he not leave the impression upon the mind of everyone that the
manufacturer got the duty 2 He asked why did he not give it to the
laborer? and turning he said: “Of course he would not do that; he
put it into his pocket.” I will tell you the reason, or at least a suffi-
cient reason why the manufacturer did not give it to the laborer. It
was because he did not get it himself.
I do not know where the gentleman got his figures, but I have a
Careful statement from one of the leading blanket manufacturers of
this country, and I intend to give the facts fully. / .
Blankets are numbered according to grade and according to weight.
There are several grades of five-pound blankets numbered 1, 2, 3, 4,
and 5. A No. 1 five-pound blanket made in the city of Philadelphia
sells for $1.72. The labor represented in the blanket is 87% cents; the
duty is $1.02. Of a scarlet blanket, five pounds, the price is $2.27;
the labor is 873 cents; the duty is $3.17. Of the white all-wool Falls
of Schuylkillblanket the price is $3.62; the labor $1.05; the duty $2.60.
Of the Gold-Medal blanket the price is $4.53; the labor $1.05; the
duty $3.50.
Now, Mr. Chairman, if the duty was added to the cost, what would
the American manufacturers get for these blankets? They should get
for the first blanket $2.74. How much do they get? They get only
$1.72. They should get for the second blanket, duty added, $3.77.
How much do they get? They get $2.27. They should get for the
third $5.12. How much do they get? They get $3.17. They should
get, duty added, for the fourth class $6.22. How much do they get?
They get $4.35. They should get, duty added, for the highest grade,
$8.03. How much do they get? They get $4.05.
Now, Mr. Chairman, what did these same blankets cost in 1860 under
a revenue tariff, under the free-trade domination of this country by the
Democratic party? What did we pay for the same blankets that year
as contrasted with what we pay now 2 The blanket that sells to-day
f
27
for $1.02 sold in 1860 for $2. The blanket that sells now for $1.45 sold
in 1860 for $2.50. The blanket that sells now for $1.31 sold in 1860
for $2.25. The blanket that sells now for $1.90 sold in 1860 for $3.50.
The blanket that sells now for $2.58 sold for $3.75 in 1860. The blanket
that sells now for $4.35 sold for $7.50 in 1860. The blanket that sells
for $5.85 now sold for $10 in 1860. The blanket that sells now for $6.80
Sold for $13 in 1860.
PRICES OF 1860 AND 188S COMPARED.
Now let us see how the wages are, for that is an essential element
in this question. In 1860 a spinner got $6 a week in this same estab-
Iishment, and I am speaking from the books of the manufacturer. It .
is no idle and hearsay, second-hand Statement that I am making, nor
does it come from any foreign source, nor is it based on any informa-
tion from abroad. It is taken from the actual books of a manufacturer
of blankets in Philadelphia, who has been manufacturing for a great
many years. A spinner got for a week's work in 1860, $6. What does
he get now 2 Fifteen dollars. Six dollars a week in 1860, and $15 a.
weekin 1888. A piecer boy got $1.15 a week in 1860, and he gets $3.50
now. A weaver, got $4 in 1860, and $10 in 1888. A finisher, unskilled,
got $4.15 in 1860, and he gets $9 in 1888. A skilled finisher got $6 in
1860, and $16 in 1888. A dye-house hand, unskilled, got $4.25 in
1860, and he gets $9 in 1888. A common laborer $4 in 1860, and gets
$7.50 in 1888. A skilled laborer got $4.50 in 1860, and he gets $9 in
1888. An engineer got $6.50 in 1860, and he gets $16 in 1888.
The weekly earnings of the spinner in 1860 could buy three pairs of
cheap blankets for one week’s work. The spinner under American pro-
tection in 1888, for the price of one week’s work can buy fifteen pairs
of blankets. Talk about productive capacity Think about buying
capacity The spinner buys his blankets for one-half what they cost
him in 1860; and he gets two and a half times as much for his labor in
1888 as he got in 1860. Do you wonder these men do not like your
bill? [Applause..] Do you wonder these men condemn the action of
the committee for not listening to their protests? Why, you are prepar-
ing here to-day—and that is the purpose and effect of this bill—you
are preparing here to reduce the scale of American wages. But I am
not through with the blanket issue. You may think that what I have
already given is sufficiently exhaustive, but I have an actual transaction
here that I know will be of interest to the members of this House, and,
therefore, at the expense of wearying your patience, I am going to ask
your attention to it. [Cries of “Go on 1’’]
TELE UNITED STATES BUYING FOREIGN BLANEETS. ,
On the 25th of March, 1887, the United States Government adver-
tised for bids for the purchase of blankets for the use of the medical
department of the Army. This was in 1887, under the present Admin-
istration. There were foreign bids and there were American bids.
Now, if the President is right in saying that the duty is added to the
cost, then the foreign cost, duty added, ought to be just equal to the
American price. Now, what are the facts of this transaction? As I
have said, there was a foreign bid, and there was an American bid.
The foreign bid was for a four-pound blanket for medical purposes, to be
furnished for $2.251%. For the same four-pound blanket for the same
purposes, the American bid was $2.56, there being a difference of 30%;
cents. Who, who do you suppose got the contract? There was a
foreign bid, and an American bid, and the difference between the bids
was 30 cents on each blanket. Now tell me which manufacturer,
i
28
the American or English got the contract? Is there anybody here who
would not have given it to the American, there being a difference of
only 30 cents between the bids?
Is there any gentleman on this floor who would send abroad to get
a pair of blankets merely to save 30 cents on them, thus taking away
from the American manufacturer and the American farmer and the
American laborer that much business? However that may be, that
contract did go abroad. English labor, with foreign Wool, made those
2,000 blankets for the use of our army. American labor was boycotted
and they came in without paying any duty. The Government took ad-
vantage of a law that stands on the statute-book and admitted them
free of duty. There being so little revenue in the Treasury, it was nec-
essary, of course, to save every penny, so they took advantage of that
law which permits the United States to bring in goods free of duty.
Now let us look at the figures. The duty on blankets of that quality
is 18 cents a pound and 35 per cent. ad valorem. Eighteen cents a
pound upon 2,000 blankets, 4 pounds each, is $1,440; 35 per cent. ad
valorem is $1,576.40, making a total duty upon those 2,000 blankets,
which were bought from aforeign blanket maker, of $3,016.40. The cost
of those blankets, free of duty, amounts to $4,504; with the duty added
the total would be $7,520.40.
Now, if the President is right and if the chairman of the Committee
on Ways and Means is right in Saying that this duty is added to the
price to the American consumer, then $7,520.40 is exactly what the
American price Would be.
Now, then, gentlemen, what was the American price? The Amer-
ican price was $5,120. That is, it was $2,400 less than the foreign
cost, duty added. Without any duty, the difference between the cost
of the American and the cost of the foreign blankets, the whole 2,000,
was about $600. Now you see the American manufacturer does not
get the duty, and that, I submit, is a sufficient reason why he does
not give it to his workmen. I am very sorry, Mr. Chairman, that the
President of the United States did not know of this transaction, which
had occurred under his own administration, so that he might have
avoided making the blunder which he made in his message when he
said that the duty was added to the cost. And I do not know what
those around me may think about it, but I am very sorry that our
Government went abroad and bought those blankets just to save 30
cents apiece on them. [Laughter and applause on the Republican side.]
Mr. Chairman, I wish that this Government of ours, which is sup-
ported by its own people, and not by foreigners, would patronize its
own people. I think that is an example of patriotism which should be
set by those charged with public administration. I wish the men who
pay the taxes to support this Government, to pay the President’s sal-
ary and other expenses of the Government, would be patronized when
the Government has anything to buy, don’t you? And are you not a
little ashamed of this transaction, all of you? I do not know whether
the like was ever done under any former administration or not; but it
never ought to be done, except in time of war or great public necessity,
by any future administration of any party. [Applause on the Repub-
lican side.] -
ALL EUROPE INTEIRIESTED IN TEIE FASSAGE OF TEIIS ISILL.
All Europe is watching the progress of this bill. Its immediate pro-
moters are not following it with keener vigilance and more absorbing
interest than their foreign sympathizers. All trades, all manufactur-
ers across the Atlantic, are watching it with the deepest concern and
29
anticipating the rich harvest which awaits them when our gates shall
be opened, our industrial defenses torn down, and free and unrestrained
access to our splendid markets afforded for the products of their cheap
labor.
I have in my hand the Pottery Gazette, published in London, under
date of January 2, 1888, from which I read:
Earthenware is reported to be reduced to 30 per cent. This will help the trade,
but we trust the men and masters here will not be too sanguine as to results and
upset the trade.
Their information upon the earthenware schedule is quite accurate;
they had it in advance of the minority members of the committee,
and while thoroughly pleased the editor of the Gazette feels constrained
to advise the men and masters not to be too sanguine as to results and
thereby upset the trade and defeat the bill. He advises them not to
rejoice too soon; the news is almost too good to be true, and too much
ecstacy on their part might prejudice it before the American House.
Why should they rejoice when our tariff goes down? Our working-
men and employers have no such feeling. They dread it; they oppose
it; they know what it means to them. They know that it will benefit
the foreign rival and bring distress to them. -
The reduction of duties upon earthenware will help Staffordshire,
England, and their people know it well, while it will hurt American
potters and the labor they employ.
Again I read:
Our American friends are expected over shortly—
They are detained here during the pendency of this bill—
when we shall hear what the effect is to be of the promised alteration in their
tariff. The protected manufacturers in the States are already making efforts to
stop the reduced imports, but it will be useless, -
With what confidence they speak | They mistake the temper of our
people. They are staking too much upon the fulfillment of Demo-
cratic pledges.
This long nursed and ſavored class must give way a little to the consumer,
whose long suffering bas at length come to the front. -
The generous sympathy which the English manufacturer has for the
American consumer is touching indeed.
The consumers are as ten to one of the United States inhabitants, and the pro-
tection to the pottery and glass manufacturer of the commoner description rep-
resents the cost of labor many times over. -
This reads like the speech of the gentleman from Texas. It Sounds
so like the Democratic speeches of the last two weeks that we might
well conclude that the gentlemen of the majority on this floor were rep-
resenting an English and not an American constituency.
Again I read:
Is this fair to the housekeeper ? Is it right? Nay, is it just 7 2
This sympathy would have been more highly appreciated by the
American consumer had it been extended at a time when the Stafford-
shire potteries controlled the American market, before we had become
successful competitors, and when they were charging us 100 per cent.
more for the coarse tableware that went into the liguses of the masses
than we now have to pay, resulting from the competition created by
our own potteries. The hope of foreign producers is in the Democratic
party.
Foreign producers are already preparing for the new order of things.
They are already establishing agencies in the United States, preparing
to invade and occupy this market.
30
I have among my notes a letter from Andris Jochams, of Charleroi,
Belgium, proprietors of the La Providence Rolling Mills, which gives
unmistakable evidence of preparation for the passage of this bill.
Let me read the letter:
CHARLEROI, le 14th March, 1888.
DEAR SIRs: I beg to take notice that we have appointed Messrs. Weir, Smith
& Rogers as our sole and general agents in the United States of America for the
sale of our architectural iron, as per circultur inclosed, and you will oblige us in
addressing your demands to them in future.
With the prospect of a reduction in duties on architectural iron and steel in
your country we will be soon ready to offer you such advantages in prices and
quality that you will find a nice profit in importing from us.
We remain, dear sirs, with much respect, your obedient servant,
AND IRIS JOCEIAMS.
Messrs. WEIR, SMITH & Rogers, 41 Broadway, New York.
The American public, it will be observed, is assured that “with the
prospect of reduction of duties on architectural iron and steel in your
country we will be soon ready to offer you such advantages in prices
and quality that you will find a mice profit in importing from us.” Re-
duced duties are to increase their profit which, for the time, at least, is
to be divided so as to give to the American importer a “nice profit.”
TRUSTS.
There has been much discussion about trades and combinations in
the course of this debate—trusts to control prices, diminish produc-
tion, extinguish competition—and these are made a fruitful theme
for vicious assaults upon the tariff. This is the only new feature that
has been developed in the tariff discussion, and therefore deserves
passing attention. I have no sympathy with combinations organized
for this or any other purpose, to control the supply and thereby con-
trol prices. I regard all such as against public policy and opposed to
fair and legitimate trade. They are, however, in no wise related to
the tariff, and the tariff is in no way responsible for them.
There is nothing in the tariff laws to promote or even suggest them.
They are of foreign origin—they originated infree-trade countries. They
can and do exist among producers and factors not in any way affected by
the tariff. They are of recent datein the United States. The most widely
known trusts of the country are not engaged in what are termed “pro-
tected industries.” The oil trust and the whisky trust, which are so
commanding and powerful, which make prices and alter them, control
supply and production, these surely can not be charged to a protective
tariff, for nothing which they make or merchandise is subject to pro-
tective tariffs. The most oppressive trusts—oppressive to the Ameri-
can consumer—are those which deal in foreign goods, and all of which
will be promoted and strengthened by the passage of this bill.
There is a trust or combination made up of all the plate-glass manu-
facturers of Europe. I have here a circular which is dated London,
25th of April, 1887, and which reads:
DEAR SIR: We beg to inform you that the Associated Plate-Glass Manufact-
urers have revised their prices for plate-glass of all descriptions, and that,
withdrawing all previous quotations, we inclose you here with our tariff of
prices, the discount from which will be 30 per cent., with the exception of glaz-
ing glass used for silvering purposes, the discount from which will be 25 per
Cent.
We are, dear sir, yours, respectfully,
LONDON AND MANCEIESTER PLATE-GLASS
MANUFACTURING COMPANY (LIMITED.)
UNION PLATE–GLASS ConſPANY (LIMITED.)
RILKINGTON BROTHERS.
A de GRAND RY. AGENCE GäNERALE DES-GLACERIES, Belges.
p
31
This trust is still in force. Here is a foreign combination to control
the price of plate-glass, and the gentlemen on the other side are engaged
in making the monopoly more complete and controlling by reducing the
import duties now paid on their product and by relieving them of a bur-
den they now have to bear, and thus enabling them to break down Amer-
ican competition, which alone has reduced the price of plate-glass, and
now prevents the most extortionate exactions for the foreign product
upon American consumers.
Here, again, is an importers' trust in the same line of goods. I read
from the New York Herald of February 28 an account of the investi-
gation by the New York Legislature:
TEII, GLASS TRUST.
Mr. James H. Heroy, an importer of plate and French glass, was next called
to tell what he knew about the glass trust. He is a spry old gentleman who
has been in the business for fifty years. Colonel Bliss asked the witness to
identify a circular. It is a very peculiar circular, and will open the eyes of the
public, if not the eyes of the committee. It is as follows:
“HENIºx C. MARRINNER,
“Plate amd sheet-glass importer, No. 126 South Fifth avenwe:
“W, 2 beg leave to quote you 70, 10, and 5 per cent. discount from the price-
list, January 20, 1887, for French window-glass. In case you wish to make any
large purchases we can make you extra discounts as follows: If you receive
from us or ariy members of our association in New York (which includes all
the regular inn porters), either all from one house or part from each of the houses,
one hundred boxes in one calendar month, you are entitled to an extra discount
of 5 per cent.; or if the deliveries to you in any one calendar month from any
or all of these houses should annount to $1,000, then you will be entitled to an
extra discount of 10 per cent. This is done, as you will see, to give large pur-
chasers the advantage over small buyers, which they have been long entitled
to, but which could not be given to them until we made our present organiza-
tion to regulate prices. -
“This arrangement of rebates takes effect from February 1.
“We can also make deductions from the new price-list of January 5, 1888, for
colored, enameled, ground, and cathedral glass, extra discounts, as follows:
“For orders of twenty cases or 2,000 feet or more at one time, 10 per cent. dis-
count.
“For import orders of 7,500 feet or more of cathedral and one hundred cases
or more colored, enameled, and ground glass we will make special prices, accord-
ing to the conditions of the order.
“Yours, very truly,
“HIEROY & MARRINNER.”
NOTIIING DONE IN A EIUIRRY.
There was no doubt about the intention of that trust. Mr. Heroy said “it
was simply” to make prices below which they would not sell their goods. At
the last meeting he attended he thought it was the desire of the combination to
reduce prices, and added, “We have not yet decided what to do in the case-of
a man who undersells us. We do not decide these things in a hurry. As a re-
sult of the combination prices have advanced. I can't tell exactly the amount
of the business done. It is largely exaggerated, but including all branches, it
is about $20,000,000.”
I have also in my possession a copy of the trust contract. Not con-
tent with making this combination among themselves, they sought in
every way possible to induce our American producers of plate-glass to
join them and assist in fleecing the American public.
There is a foreign trust on china and earthen ware. I have the evi-
dence here in the London Pottery Gazette of March 10, 1888, from which
I read:
If any manufacturers are not true to the rules of the new association the bond
they will have signed will enable their fellow-manufacturers to sell them up
“rump and stump.” Nothing but the state of dire necessity into which the
trade has fallen would tempt men to put their hands to such a bond. The
scheme has just been successful with the china, manufacturers. They have just
obtained a second advance.
If the keen buyers who always want to beggar the trade and reduce prices
32
say to a manufacturer who will not sell at lower than the fixed rate, “Well, if
I am forced to pay the association price I will not buy from you,” such manu-
facturer can reply, “All right; if you buy from another, and I have to stand for
orders, I shall get my pull out of your business, for our rules will not let me suf-
fer through refusing to reduce at your request.” So you,see one manufacturer,
can not be played off against the others. - -
There is a foreign tin trust and a foreign iron trust to control prices
and deprive the public of the advantages of legitimate competition.
All these are to be benefited by this bill. Its author should change
its title so as to make it read, “An act to promote foreign trusts and
combines and break down American competition.” We should set our
faces against all these unnatural associations. We should crush out
those at home, and do nothing to encourage those abroad who organize
to prey upon the American market. . We can control the former, but
the latter, while robbing our own citizens, are beyond our control and
out of our jurisdiction. c -
& PROTECTION SENTIMENT EXTENDING. i
Mr. Chairman, while the Democratic majority, aided by the active
force of the Administration, is seeking to break pown the protective
system, under which we have realized such unexampled prosperity,
what do we witness elsewhere and in other countries? Within the last
six months there was held a great meeting in England, representing
thirty thousand workingmen. The meeting was called to consider the
depressed condition of labor, and to demand such a change of the fiscal
legislation as would abandon free trade in the United Kingdom and
adopt a protective tariff. They resolved— -
First. That this meeting is strongly of opinion that the time lias come when
all classes interested in the nation’s prosperity should unite in demanding a re-
vision of its fiscal system.
Second. That this meeting records its opinion that all articles innported from
abroad should bear a fair share of taxation with the same articles produced at
home. o -
These resolutions, with a suitable memorial, were presented to the
British Parliament. In the same month the Chamber of Commerce of
Lincolnshire, England, adopted the following resolutions:
That this meeting is of opinion that the fearful depression both of trade and
agriculture are intimately connected with, and both are caused by, foreign com-
petition, resulting in low prices, which are affecting all the industries of this
country; that false free trade is a ſailure obtained at the expense of the native
producer. This meeting, therefore, begs to urge of their representatives in
Parliament and the Government the necessity of speedily taking measures to
prevent the ruin impending over trade, and especially over the land of this
country and all concerned in it, either as owners, cultivators, or tradesmen, and
that a reconsideration should at once take place of our present fiscal arrange-
ment. -
The working people of England find that competition with countries
employing cheaper labor too oppressive to bear longer, and are demand-
ing in theinterest of themselves and families to be saved from the further
degradation it will entail. It is not American competition they dread;
it is the competition of France, Germany, and Belgium—countries whose
labor is even more poorly paid than the labor of England. They have
come to appreciate at last that nothing but tariffs which are defensive
in their character will save them from utter ruin and destitution. We
will be in precisely the same situation if this bill shall become a law.
Our competition is with all the world, for no labor is so well paid as
ours, and being the highest paid labor invites the sharpest competition
from the lowest. We will have no objection to free trade when all the
competing nations shall bring the level of their labor up to ours; when
they shall accept our standard; when they shall regard the toiler as a
man and not a slave; but we will never consent while we have votes
Hº
\ } is 2. -
, \?:. ser 22 º'
&
POCKET EDITION
Vandegrift's Digest
DINGLEY
Tariff Bill
1897
REVISED TO JULY 1, 1902
RETAIL PRICE, 50 CENTS
FOR SALE BY
F. B. Vandegrift & Co.
Customs Brokers and Forwarders
NEW YORK - CHICAGO
66 Beaver Street 315 Dearborn Street

F. B. VANDEGRIFT & CO.
Custom House Brokers and Forwarders
Have their own houses at
66 Beaver St., New York, and 315 Dearborn St., Chicago.
The address of their principal North American agents are given below:
•
~
Atlanta, Ga. Custom House. ...~"
Baltimore, Md.------------------... Stewart Bldg., W. Cor. Lombard & Gay”
Boston, Mass. Board of Trade Bldg., 131 State St.
Buffalo, N. Y.........................340-342 Ellicott Sq. Bldg.
Charleston, S. C................... P. O. BOX 3.17. *
Cincinnati, O........ e ee e o e s tº e e s tº se ...Atlas Bank Bldg. ;
Cleveland, O------------------------. 508 Century Bldg.
Columbus, O......... tº ea es a e see ee ... Custom House.
Denver, Colo....----------------..... 17 Jacobson Bldg, 16th & Arapahoe Sts.
Detroit, Mich........................ 82 Lafayette Avenue.
Duluth, Minn................ .......1417 East Fourth St.
Galveston, Texas ................ 2120 Strand.
Grand Rapids Mich............. Board Of Trade.
Hamilton, Ont, Can............18 Hughson St., South.
Indianapolis, Ind-............... 34 South Pennsylvania Street.
{{ansas City, MO ...... tº tº e º te e º a tº e s 206 Federal Bldg.
Key West. #ia................... Custom House.
London, Ont., Can.--------------. 436 Richmond St.
Los Angelos, Cal......... .........224 Franklin St.
Louisville, Ky.......... ** see e. e. e. e. e. ee e 147 East, Main St.
Mobile, Ála.......... tº see tº ee tº e º 'ºtº ºr “ 208 Pollock Bld., Royal & Conti Sts.
Montreal, Can.................... .41 Common St.
Milwaukee, Wis.............. ......414 Goldsmith Bldg, S.W. cor Wisconsin &
Jefferson Sts.
Minneapolis, Minn............... 515 Guaranty Loan Bldg.
Nashville, Tenn....................Custom House.
New Haven, Conn............... 207 Long Wharf.
Newport News, Va............ ..Silsby Bldg, 27th & Washington Ave.
New Orleans, La---------...-- ...117 Decatur St.
Niagara Falls, Ont., Can.... 29 Clifton Ave.
Norfolk, Va. 167 Main St.
Omaha, Neb........... e - e sº se is ......404 Karbach Block, 209 South 15th St.
Ottawa, Can- 23 Sparks St.
Philadelphia, Pa.........---------50 South Fourth St.
Pittsburgh, Pa. --------.........----- 425 Fourth Ave.
Portland, Me 108 Commercial St.
Portland, Ore ........ . ..........106% Third St.
Port Townsend, Wash....... 3- stings Bldg.
Providence, R. [..................Custom House.
Quebec, Can ------------ e Gº Gº e see e see Custom House Bldg.
Rouses Point. N. Y........... ...26 East State St.
San Diego, Cal-------------------... 1328 F St.
San Francisco, Cal............... 416 Jackson St.
Savannah. Ga-----------------------. 16 E. Bryan St.
Seattie Wash.....................261 Coleman Bidg.
St. Albans, Vt.---------............Local Freight Office, Cent. Vt., Ry. Co
St. Johns, N. B.....................171 Prince William Št.
St. Joseph, Mo 612 Felix St. *
St. Louis, MO. ....... ................608 Columbia Building.
St. Paul Minn .............. ....618 New York Life Bldg.
Tacoma, Wash.--------------..... City Hall.
Tampa, Fla. ........ º e º 'º e º tºº & © e º see see Ashley St., foot Madison.
Toledo, O ....... tº s e º e º tºº e º ºs e e ...........Custom House.
Toronto, Ont., Can------------ ....14 Melinda St.
Vancover. B. C..................... 627 Hastings St.
Victoria, H. G...... e - - e º 'º et e º ee & Pee 1 Fort, St.
Washington, D. C.................1218. Thirty first St. N. W.
Wilmington, Del............------ P. O. Box 273.
Wilmington, N. C................ 9 South Water St.
Winnipeg, Man............. tº º sº tº e º e Can., Life Bldg., Main St. & Portage Ave.
POCKET EDITION
OF THE
h Dingley Tariff Bill
AS PASSED BY
CONGRESS, JULY 24, 1897
TOGETHER WITH
SCHEDULE OF ARTICLES
REVISED TO JULY 1, 1902
With Rate of Duty and Paragraph of Law
Compiled and Edited by
WM. W. RICH,
PRES. F. B. VANDEGRIFT & CO.
Published by
F. B. Vandegrift & Co.
Custom House Brokers
AND
General Forwarders
New York, Chicago,
66 Beaver Street & 3 15 Dearborn Street

COPYRIGHTED 1902
BY
F. B. VANDEGRIFT & CO.
WM. W. RICH, PRESIDENT.
F. B. VANDEGRIFT & CO.

‘F. B. VANDEGRIFT & CO. iii
GENERAL INSTRUCTIONS
For Shipments to the United States.
1. Each package must be fully addressed or have a shipping
mark, and the name of the country of origin.
2. Every package for delivery at an interior city must be
marked “in bond to ” (EIere give name of city.)
3. Make out four invoices if goods are for un interior port; if
for a seaboard port, three copies will suffice; if valued over one
hundred dollars, have same certified by United States Consul.
If under one hundred dollars, the invoice need not be cartified.
Mail two copies to F. B. Vandegrift & Co., New York.
4. Instruct forwarding agent at point of shipment to consign
goods to F. B. Vandegrift & Co., and mail them bill of lading
by steamer not later than the one carrying the goods.
5. If goods are for an interior port see that the bill of lading
is made out F. B. Wandegrift & Co., New York, in bond to
- - (EIere give name of city.)
6. If invoice and bill of lading do not reach F. B. Vandegrift
& Co., New York, by the time the goods do, expensive general
order charges may be incurred.
(Note.—Accuracy and precision in customs proceedings are so
essential to the interests of importers that the services of a com-
petent broker are usually worth vastly more than the small cost
of such services.)
i V
F. B. VANDEGRIFT & Co.
IMMEDIATE TRANSPORTATION PORTs.
Dutiable merchandise may be transported in Bond without
examination to the following ports.
Act June Io, 1880, Amended Act February 23, 1887.
Albany, N. Y.
Astoria, Oreg.
Atlanta, Ga.
Baltimore, Md.
Bangor, Me.
Bath, Me.
Boston, Mass.
Bridgeport, Conn.
Buffalo, N. Y.
Burlington, Vt.
Calais, Me.
Charleston, S. C.
Chicago, Ill.
Cincinnati, Ohio.
Cleveland, Ohio.
Columbus, Ohio.
Council Bluffs, Iowa.
Denver, Colo.
Des Moines, Iowa.
Detroit, Mich.
Dubuque, Iowa.
Duluth, Minn.
Dunkirk, N. Y.
Durango, Colo.
Durham, N. C.
Eagle Pass, Tex.
Eastport, Me.
El Paso, Tex.
Enfield, Conn.
Erie, Pa.
Evansville, Ind.
Everett, Wash.
Fall River, Mass.
Galveston, Tex.
Gladstone, Mich.
Grand Haven, Mich.
Grand Rapids, Mich.
Greenbay, Wis.
Hartford, Conn.
Honolulu, H. I.
Indianapolis, Ind.
Jacksonville, Fla.
Kansas City, Mo.
Key West, Fla.
Knoxville, Tenn.
Laredo, Tex.
Leadville, Colo.
Lincoln, Neor.
Los Angeles, Cal.
Louisville, Ky.
Marquette, Mich.
Memphis, Tenn.
Middletown, Conn.
Milwaukee, Wis.
Minneapolis, Minn.
Mobile, Ala.
Nashville, Tenn.
New Bedford, Mass.
Newark, N. J.
New Haven, Conn.
New Orleans, La.
Newport, R. I.
Newport News, Va.
New York, N. Y.
Nogales, Ariz.
Norfolk, Va.
Oakland, Cal.
Ocala, Fla.
Ogdensburg, N. Y.
Omaha, Nebr.
Petersburg, Va. .
Philadelphia, Pa.
Pittsburg, Pa.
Port Huron, Mich.
Portland, Me:
Portland, Oreg.
Portsmouth, N. H.
Port Townsend, Wash.
Providence, R. I.
Pueblo, Colo.
Richmond, Va.
Rochester, N. Y.
Saginaw, Mich.
St. Augustine, Fla.
St. Joseph, Mo.
St. Louis, Mo.
St. Paul, Minn.
San Antonio, Tex.
San Diego, Cal.
Sandusky, Ohio.
San Francisco, Cal.
Sault Ste. Marie, Mich.
Savannah, Ga. .
Seattle, Wash.
Sioux City, Iowa.
So. Manchester, Conn.
Springfield, Mass.
Syracuse, N. Y.
Tacoma, Wash.
, Tampa, Fla.
Titusville, Pa.
Toledo, Ohio.
Vanceboro, Me.
Vernon (Rockville), Ct.
Washington, D. C.
Wilmington, Del.
Wilmington, N. C.
Worcester, Mass.
F. B. VANDEGRIFT & Co. V
We are Practicing
CUSTOMS ATTORNEYS
And make a Specialty of the
United States Tariff
AND -
Customs Laws
We are Regular Attendants at the
Board of General Appraisers
In the Interest of
IMPORTERS
Regarding Questions of
CLASSIFICATION AND VALUES
F. B. Vandegrift & Co.
Custom House Brokers and Attorneys
New York, Chicago,
66 Beaver Street 315 Dearborn Street
Vi F. B. VANDEGRIFT & CO.
PROTEST.S.
Rates of duty are frequently exacted by Collectors in liquida-
tions of entries on duty of merchandise, which the owners or
importers of the merchandise consider erroneous. We make a
specialty of these cases, and if there appears to be a good claim
we carry the matter before the Board of General Appraisers, and
if necessary appeal to the Courts. We make no charge unless
su :cessful in obtaining a refund of excessive duties.
ADVANCED VALUES.
Unvoice values are advanced by the Appraiser when they are
below wholesale market price at the time of shipment. Inport-
ers may appeal to a General Appraiser, and if dissatisfied with
his decision, to a board of three General Appraisers. We rep-
resent the importer in such cases, and present his claims.
DUTIES.
*
By Communicating with us in advance, importers can arrange
for the payment of duties at any of the ports of entry in ti >
United States or in the Dominion Ol Canada.
AWhen-goods are consigned to us for importers located at places
which are not ports of entry, duty will be paid by us at port of
arrival and charged forward against the goods.
Goods may be Warehoused or forwarded in bond, without pay-
ment of duties, either to interior port or export port.
Coods warehoused in United States must have duty paid or
exported within three years from date of arrival. Either the
Whole shipment or any number of packages, but nothing less
than a package can be withdrawn at one time.
FORWARDING. *
We receive and deliver according to instructions goods for
Inport or Export, but we never purchase for our own account
or receive on consignment for sale.
(Note.—Accuracy and precision in customs proceedings are so
essential to the interests of importers that the services of a com-
petent broker are usually worth vastly more than the small cost
of such services.)
F. B. VANDEGRIFT & CO. vii
ENERGY ECONOMY - DISPATCH
F. B. VANDEGRIFT & Co.
Custom House Brokers
Foreign Express
General Forwarders
Fire and Marine Insurance Brokers
CARTAGE, STORAGE and WEIGHING
ATTENDED TO -
Drawback Collected On all exported arti-
cleS entitled to Same, manufactured from im–
ported materials
CORRESPONDENCE SOLICITED
Entrance and Clearance of VeSSels
SPECIAL ATTENTION GIVEN TO
THIS WORK
Members New York Maritime Exchange
Agents and Correspondents Throughout
the WOrld
New York Office Chicago Office
66 Beaver Street 315 Dearborn Street
TELEPHONE : TELEPHONE :
928 B. R O A D 840 H A R R IS ON
Cable Address, Vangrift Cable Address, Vangrift
F. B. VANDEGRIFT & Co.
B. VANDEGRIFT & co.
Foreign Express
TO ALL PZART's C F THE WOT LID.
F.
66 Beaver Street, New York.
315 Dearborn Street, Chicago.
w
Bates on Small Packages of Merchandise from New York.
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F. H. VANDEC, RIFT & CO. ix
General Instructions and Information Relating to
Simt tº ElT008 and Other FOTBig Points
Via Atlantic Ocean Routes.
I.—PACRING, , ADDRESSING AND WAY-BILLING-
Packages must be carefully packed with regard to contents and distance
and in such manner as to facilitate Custom House examination.
While F. B. Vandegriſt & Co. will exercise the greatest care; we can-
not accept responsibility for damages to goods from careless handling in
the Custom House. .
Shipments must be legibly addressed in English, and street and number
given on packages for cities or large towns.
The name and address of shipper must appear on every package, to
insure reports of refused or undelivered goods.
II.-IDESCRIPTION OF CONTENTS AND VALUE.—Con-
tents and value must be fully marked on each package or an in voice or
detailed memorandum of the nature and value of the contents of each
package must accompany goods. -
Shipper will be held liable for any fines, extra duties or expense in-
curred by reason of alleged false or inaccurate representation of what-
... SOever Il at Ulre.
III.-MARINE IN SURANCE.-Shipments for foreign countries are
not insured by F. B. Vandegrift & Co. against losses arising from perils
of the sea, unless Marine Insurance is desired and charged for.
IV.—FOREIGN CUSTONI HOUSE CHARGES, dues and other
Governmental expenses are not included in any rates given; they must
be guaranteed by shippers. A deposit sufficient to cover these expenses
(known or estimated) will be required where absolutely free delivery to
consignee is desired. .
W.—PREPAYMENT OF CHARGES is compulsory to Spain, Por-
tugal, Africa, China, Japan, the Mediterranean Levant, Central and
South America and West Indies, and on samples and packages of nomi-
nal value to all points.
VI.—LUVE AN INIALS will not be received for shipment to Europe until
after special arrangement has been made with us at New York.
VII.—TOBACCO FOR ENGLAND, IRELAN ID, SCOTLAND
AND WALES will not be accepted in packages less than eighty
lbs. net; except that samples of tobacco under four lbs., if so marked on
face of package and prepaid at double rates, will be taken.
Tobacco must never be packed with other articles for shipment to any
foreign country. - -
VIII —THIE FOLLOWING WILL NOT BE RECEIVED FOR
SH [IPMIENT :
Fresh fruits for Germany.
Gunpowder, Oils, Acids, or any other a ticles of a com-
bustible or an explosive character, or Petroleuma, Essential
Oils or other liquids which, by leakage, are liable to cause injury to
other goods. ~
Medicine for Norway, Sweden, Russia, France,
Austria and Hungary. sº
Roses for Holland.
Plants with roots for France and Germany.
Potatoes to Germany, Norway, Sweden, Denmark,
or Augstria.
Reprints of Works by English authors of English copyright songs
for England.
Packagres for Russia, unless packed in wooden
boxes, otherwise they are liable to seizure as improper importations.
Vegetables and Live and Cut Plants, Bulbs and Roo is
to Italy.
IX.—Whislrey, Wine, Beer and liquors generally, including any prepa-
- ration, whether medicinal, toilet or otherwise, in which Alcohol is
used, also Tea and Coffee destined to Great Britain and
JIreland will not be received unless the exact contents are plainly
marked on ſace of packages
X.—LETTERS must not be enclosed in foreign packages.
XI.—BULIKY or UNWIELDY PACKAGES will be charged for
at one and a half or double rates, according to size. Bicycles charged
double rates, except for quantities of three or more wheels, when special
rates will be furnished upon application to us at New York.
XII.—PURCHASES IN EUROPE will be made at regular commission
IateS.
F. B. VANDEGRIFT & Co.
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F B. VANDEGRIFT & CO. xi
SPECIAL RATES
HEAVY SHIPMENTS
T0 Or from Europé and Other Foreign Countries
Will be quoted by this Company on receipt of the infor-
mation designated below:
I. Number of pieces. 2. Kind of goods. 3. Total number of
cubic feet, exactly or approximately. 4. ‘Total weight, exactly or ap-
proximately. 5. Whether by fast or slow steamer. 6. Destination of
shipment. 7. Date goods are to be shipped. 8. Amount of Marine
Insurance, if wanted. 9. Whether charges are to be prepaid or
collect.
CUBIC MEASUREMENT. To ascertain the exact cul)ical
measurement of an article, multiply the length by the width and the
product thus obtained by the height, reducing such measurement to
inches. EXAMPLE: . A box 2 feet 4 inches long, 3 feet 8 inches wide
and I foot 7 inches high (reduced to inches) is figured as follows: 2/4//
or 28// multiplied by 3/8// or 44// is 1,232 inches, multiplied again
by 1/7// or 1977 gives 23,408 cubic inches, which when divided by
the number of cubic inches in 1 cubic foot, or 1,728, gives 13,944—
I,738 cubic feet. Charge for 14 cubic feet.
In ascertaining cubical, measurement of boxes, etc., of irregular
shapes, or those having projecting parts, it is the rule of the Steamship
Companies to exact measurements of the largest side. When measure-
ments, as made by shippers or agents, do not agree with those made by
Steamship Companies, the latter will prevail.
THROUGH NEGOTIABLE BILLs of LADING for bank.
ing purposes are issued by us for HEAVY GOODS to all foreign
places, with or without Marine Insurance.
RATES ON BONDS, PRECIOUS STONES, Etc., quoted on
application. -
DRAYAGE. We attend to all kinds of cartage work. Packages
called for and delivered from railroad stations, steamship piers, ware-
houses, etc., in any quantity and on every class of merchandise at the
customary rates charged by truckmen generally.
CUSTOM HOUSE ENTRIES promptly attended to on all im-
port shipments.
DRAWBACK COLLECTED on export shipments manufactured
in whole or in part from imported materials.
F, B, VANDEGRIFT & C0,
FOREIGN EXPRESS AND GENERAL FORW.RDERS,
New York, 66 Beaver St. -
Chicago, 315 Dearborn St.
INDEX To TARIFF ACT, 1897.
Page
Agricultural products and provisions—Schedule G ...................... 35
Animals, live—Schedule G.................................................. … 35
Articles manufactured, nonenumerated—Section 6......... ........... 77
Articles unmanufactured, nonenumerated—Section 6.............. ... 77
Bounty-Section 5 ............................. ......................... - - - - - - - - - - - - - - 77
Breadstuffs and farinaceous substances—Schedule G .................. 35
Brick and tile—Schedule B........... • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I8
Buttons and button forms—Schedule N....................................... 59
Cement, lime and plaster--Schedule B ................ as a • * * * * * * * * * * * * * . . . . . . . I9
Chemicals–Schedule A ................................... .......................... I3
China and earthenware—Schedule B ............... .................. ....... I9
Clays or earths—Schedule B................• . . . . . . . . . . . . . . . . . . * * * * * * * * * * * * * * * * * * * * * I9
Cotton manufactures—Schedule I ................................. ............. 42
Cutlery-Schedule C .................................................................. 27
Dairy products—Schedule G..................... .................................... 36
Discriminating duty-Section 22.................................................. 83
Explosive substances—Schedule N............................................. 6o
Farm and field products--Schedule G......................................... 36
Firearms—Schedule C ........................ .................................... 28
Fish-Schedule G.......................... ............................................ 37
Flax, hemp and jute manufactures—Schedule J...................... .. 47
Free list...................................................................................... 64
Fruits and nuts—Schedule G...................................................... 37
Glass and glassware—Schedule B. ................... ... • - - - - - - - - - - - - - - - - - - - - - - - - - 2O
Gloves—Schedule N........ ... • * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 62
Gold and silver–Schedule C .................................................... . 3O
Internal Revenue—Sections 9 to I5............................................. 78
Iron and manufactures of Schedule C ........................................ 27
Jewelry and precious stones—Schedule N................................... 6I
Lead–Schedule C................... ......................................... ......... 3I
Leather and manufactures of Schedule N ................................. 62
Machinery for repair—Section I.Q................................................ 82
Marking, branding and stamping—Section 8 ............................. 78
Meat Products—Schedule G........................................................ 38
Metals and Imanufactures of Schedule C ................................... 23
Miscellaneous manufactures—Schedule N................................... 63
Miscellaneous products—Schedule G.......................................... 38
Nails, spikes, tacks and needles—Schedule C ............................. 29
Oils–Schedule A........................................................................ I5
Paints, colors and varnishes—Schedule A ................................... I6
Plates-Schedule C..................................................................... 29
Penalties—Section 32 ... .......................................................... ... 85
Potash-Schedule A..... ........ ..................................................... 17
Preparations, medicinal and toilet–Schedule A.......................... 17
Pulp, papers and books—Schedule M.......................................... 56
Reciprocity—Section 3............................................................... 75
Saws-Schedule C.................................................... .................. 29
Silks and silk goods—Schedule L............................................... 54
Similitude clause-Section 7........................................................ 78
Slate-Schedule B.................................. .................................... 23
Smelting and refining—Section 29 ............................................... 84
Soap-Schedule A....................................................................... I8
Soda-Schedule A..................................................................... ... I8
Spirits, wines and other beverages—Schedule H ........................ 39
Steel and manufactures of Schedule C....................................... 27
Stone–Schedule B ..................................................................... 22
Sugar, molasses and manufactures of Schedule E. ..................... 33
Sundries—Schedule N ....................................... ........... ............ 59
Tobacco–Schedule F ................................................................. 34
Trade marks—Section II ............................................................. 79
Vessels, materials for—Section I2 ............................................... 8O
Wire-Schedule C........................................ .............................. 25
Wood and manufactures of Schedule D ............ ....................... 32
Wool and manufactures of Schedule K.................. . . . . . . . . . . . . . . . . . . . . 50
AN ACT
To provide revenue for the Government
and to encourage the industries
of the United States.
Ae it enacted by //he Senate and Aſozºse of Representalizes of
the United States of America in Congress Assembled, That on
and after the passage of this Act, unless otherwise specially
provided for in this Act, there shall be levied, collected, and
paid upon all articles imported from foreign countries, and
mentioned in the schedules herein contained, the rates of duty
whiſ 'l are, by the schedules and paragraphs, respectively pre-
scribed, namely:
Schedule A–Chemicals, Oils and Paints.
1. Acids: Acetic or pyroligneous acid, not exceeding the 3pe-
cific gravity of one and forty-seven one-thousandths, three-
fourths of one cent per pound; exceeding the specific gravity of
one and forty-seven one-thousandths, two cents per pound; bo-
racic acid, five cents per pound; chromic acid and lactic acid,
three cents per pound; citric acid, seven cents per pound; sali-
cylic acid, ten cents per pound; sulphuric acid or oil of vitriol
not specially provided for in this Act, one-fourth of One cent
per pound; tannic acid or tannin, fifty cents per pound; gallic
acid, ten cents per pound; tartaric acid, seven cents per pound;
all othe acids not specially provided for in this Act, twenty-five
per centum ad Valorem.
2. All alcobolic perfumery, including cologne water and other
toilet waters and toilet preparations of all kinds, containing al-
coh or in the preparation of which alcohol is used, and alco-
holic compounds not specially provided for in this Act, sixty
cents per pound and forty-five per centum ad valorem.
3. Alkalies, alkaloids, distilled oils, essential oils, expressed
oils, rendered oils, and all combinations of the foregoing, and
all chemical compounds and salts not specially provided for in
this Act, twenty-five per centum ad valorem.
4. Alumina, hydrate of, or refined bauxite, six-tenths of one
cent for pound; alum, alum cake, patent hlum, sulphate of al-
urnina, and aluminous cake, and alum in crystals or ground,
one-half of one cent per pound.
5. Ammonia, carbonate of, one and one-half cents per pound;
muriate of, or sal ammoniac, three-fourths of one cent per
pound; sulphate of, three-tenths of one cent per pound.
6. Argols or crude tartar or wine lees crude, containing not
more than forty per centum of bitartrate of potash, one “ent
14 F. B. VANDEGRIFT & Co.
per pound; contain: -; more than forty per centum of bitartrate
of pote sh, one and one-half cents per pound; tartars and lees
crystals, or partly refined argols, containing not more than
ninety per centum of bitartrate of potash, and ta' trate of soda
or potassa, or Rochelle salts, four cents per pound; containing
more than ninety per centum of bitar trate of potash, five cents
per pound; cream of tartar and patent tartar, six c. nts per
pound.
7. Blacking of all kinds, twenty-five per centum ad valorem.
8. Bleaching powder, or chloride of lime, one-fifth of one cent
per po Ind.
9. Blue vitriol or sulphate of copper, one-half of one cent per
pound.
10. Bone char, suitable for use in decolorizing sugars, twenty
per centum ad valorem. . -
11. Borax, five cents per pound; borates of lime or soda, or
other borate material not otherwise provided for, containing
more than thirty-six per centum of anhydrous boracic acid,
four cents per pound; borates of lime or soda, or other borate
material not oth irwise provided for, containing lot more than
thirty-six per centum of anhydrous boracic acid, three cents
per pound.
12. Camphor, refined, six cents per : ound.
13. Chalk (not medicinal nor prepared for toilet purposes)
when ground, precipitated naturally or artificially, or otherwise
prepared, whether in the form of cubes, blocks, sticks or disks,
or otherwise, including tailors’, billiard, red, or lºrench chals,
one cent per pound. Man" factures of chalk not specially pro-
wide for in this Act, t enty-five per cantum ad valorem.
14. Chloroform, twenty certs per pound.
15. Coal-tar dyes or colors, not specially provided for in this
Act, thirty per centum ad valorem; all other products or pre-
parations of coal tar, not colors or dyes and not medicinal, L. t
specially provided for in this Act, twenty per centum ad va-
lorem. -
16. Cobalt, oxide of, twenty-five cents per pound.
17. Collodion and all compounds of pyroxylin, whether known
as celluloid or by any other name, fifty cents per pound; rolled
or in sheets, unpolished, and not made up into articles, sixty
cents per pound; if in finished or partly finished articles, and
articles of which collodion or any compound of pyroxylin is the
component material of chief value, sixty-five cents per pound
and twenty-five per centum ad valorem.
18. Coloring for brandy, wine, beer, or other liquors, fifty
per centum ad valorem. - -
19. Copperas or sulphate of iron, one-fourth of one cent per
pound. -
20. Drugs, such as barks, beans, berries, balsams, buds,
bulbs, bulbous roots, excrescences, fruits, flowers, dried fibers,
ūried insects, grains, gums and gum resin, herbs, leaves, lich-
ens, mosses, nuts, nutgalls, roots, stems, spices, vegetables,
seeds (aromatic, not garden seeds), seeds of morbid growth,
weeds, and woods used expressly for dyeing; any of the fore-
going which are drugs and not edible, but which are advanced
in value or condition by refining, grinding, or other process,
and not specially provided for in this Act, one-fourth of one
TARIFF ACT, 1897. 15
cent per pound, und in addition thereto ten per centum ad va-
lorem. *
21. Ethers: Sulphuric, forty cents per pound; spirits of ni-
trous ether, twenty-five cents per pound; fruit ethers, oils, or
ess :ces, two dollars per pound; ethers of all kinds not spec-
ially provided for in this Act, one dollar per pound. Proz/fded,
That no article of this paragraph shall pay a less rate of duty
ti.al twenty-five per centum ad valorem.
22. Extracts and decoctions of logwood and other dyewoods,
and extracts of barks, such as are commonly used for dyeing
or tanaing, not specially provided for in this Act, seven-eighths
of one cent per pound; extracts of quebracho and of hemlock
bark, one-half of one cent per pound; extracts of sumac, and
of woods other than dyewoods, not specially provided for in
this Act, five-eighths of one cent per pound.
23. Gelatin, glue, isinglass or fish glue, and prepared fish
bladders or fish sounds, valued at not above ten cents per
pound, two and one-half cents per pound; valued at above ten
cenis per pound and not above thirty-five cents per pound,
twenty-five per centum ad valorem; valued above thirty-five
cents per pound, fifteen cents per pound and twenty per cen-
tum ad valorem.
24. Glycerin, crude, not purified, one cent I r pound; refined,
three cents per pound.
25. Indigo, extracts, or pastes of, three-fourths of oae cent
per pound; carmined, ten cents per pound.
26. Ink and ink powders, twenty-five per centum ad valorem.
27. Iodine, resublimed, twenty cents per pound.
28. Iodoform, one dollar per pound.
29. Licorice, extracts of, in paste, rolls, or other forms, four
and one-half cents per pound.
30. Chicle, ten cents per pound.
31. Magnesia, carbonate of, medicinal, three cents per pound;
calcined, medicinal, seven cents per pound; sulphate of, or Ep-
sold salts, one-fifth of one cent per hound.
OILS:
32. Alizarin assistant, sulpho-ricinoleic acid, and ricinoleic
acid, by whatever name known, whether liquid, solid, or in
paste, in the manufacture of which fifty per centum or more
of castor oil is used, thirty cents per gallon; in the manufacture
of which less than fifty per centum of castor oil is used, fifteen
cents per gallon; all other alizarin assistant, not specially pro-
vided for in this Act, thirty per centum ad valorem.
33. Castor oil, thirty-five cents per gallon.
34. Cod-liver oil, fifteen cents per gallon.
35. Cotton-seed oil, four cents per gallo. “I seven and one-
lf pounds weight.
36. Croton oil, twenty cents per pould.
37. Flaxseed, linseed, and poppy-seed oil, raw, boiled, or oxi-
dized, twenty cents per gallon of seven and Q e-half pounds
we lit.
38. I'usel oil, or amylic alcohol, one-fourth of one cent per
pound.
39. Hemp-seed oil and rape-seed oil, ten cents per gallon.
40. Olive oil, not specially provided for in this. Act, forty
16 F. B. VANDEGRIFT & CO.
cents per gallon; in bottles, jars, tins, or similar packages, fifty
cents per gallon.
41. Peppermint oil, fifty cents per pound.
42. Seal, herring, whale, and other fish oil, not specially pro-
vided for in this Act, eight cents per gallon.
43. Opium, crude or unmanufactured, and not adulterated,
containing nine per centum and over of morphia, one dollar
per pound; morphia or morphine, sulphate of, and all alkaloids
or salts of opium, one dollar per ounce; aqueous extract of
opium, for medicinal uses, and tincture of, as laudanum, and
other liquid preparations of opium, not specially provided for in
this Act, forty per centum ad valorem; opium containing less
than nine per centum of morphia, and opium prepared for
smoking, six dollars per pound; but opium prepared for smok-
ing and other preparations of opium deposited in bonded ware-
houses shall not be removed therefrom without payment of
duties, and such duties shall not be refunded.
PAINTS, COLORS, AND WARNISHES;
44. Baryta, sulphate of, or barytes, including barytes earth,
unmanufactured, seventy-five cents per ton; manufactured,
five dollars and twenty-five cents per ton.
45. Blues, such as Berlin, Prussian, Chinese, and all others,
containing ferrocyanide of iron, in pulp, dry or ground in or
mixed with oil or water, eight cents per pound.
46. Blanc-fixe, or artificial sulphate of barytes, and satin
white, or artificial sulphate of lime, one-half of one cent pér
pound.
47. Black, made from bone, ivory, or vegetable substance, by
whatever name known, including bone-bl ick and lamp-black,
dry or ground in oil or water, twenty-five per centum ad va-
lorem.
48. Chrome yellow, chrome green, and all other chromium
colors in the manufacture of which lead and bichromate of pot-
ash or soda are used, in pulp, dry, or ground in or mixed wit 1
oil or water, four and one-half cents per pound.
49. Ocher and ochery earths, sienna and sienna earths, and
umber and umber earths, not specially provided for, when crude
or not powered, washed or pulverized, one-eighth of one cent
per pound; if powered, washed or pulverized, three-eighths of
one cent per pound; if ground in oil or water, one and one-half
cents per pound.
50. Orange mineral, three and three-eighths cents per pound.
51. Red lead, two and seven-eighths cents per pound.
52. Ultramarine blue, whether dry, in pulp, or mixed with
water, and Wash blue containing ultramarine, three and three-
fourths cents per pound.
53. Varnishes, including so-called gold size' or japan, thirty-
five per centum ad valorem; spirit warnishes, one dollar and
thirty-two cents per gallon and thirty-five per centum ad va-
lorem.
54. Vermilion red, and other colors containing quicksilver,
dry or ground in oil or Water, ten cents per pound; when not
containing quicksilver but made of lead or containing lead, five
cents per pound.
55. White lead, white paint and pigment containing lead, dry
TARIFF ACT, 1897. 17
or in pulp, or ground or mixed with oil, two and seven-eighths
cents per pound.
56. Whiting and Paris white, dry, one-fourth of one cent
per pound; ground in oil, or putty, one cent per pound.
57. Zinc, oxide of, and white paint or pigment containing
zinc, but not containing lead, dry, one cent per pound; ground
in oil, one and three-fourths cents per pound; sulfid of zinc
white, or white sulphide of zinc, one and one-fourth cents per
pound; chloride of zinc and suiphate of zinc, one cent per
pound.
58. All paints, colors, pigments, lakes, crayors, smalts and
frostings, whether crude or dry or mixed, or ground with water
or oil or with solutions other than oil, not otherwise specially
provided for in this Act, thirty per centum ad valorem; all
paints, colors and pigments, commonly known as artists’ paints
or colors, whether in tubes, pans, cakes or other forms, thirty
per centum ad valorem.
59. Paris green, and London purple, fifteen per centum ad
valorem.
60. Lead: Acetate of, white, three and one-fourth cents per
pound; brown, gray, or yellow, two and one-fourth cents per
pound; nitrate of, two and one-half cents per pound; lith arge,
two ind three-fourths cents per pound.
61. Phosphorus, eighteen cents per pound.
POTASEI:
62. Bichromate and chromate of, three cents per pound.
63. Caustic or hydrate of, refined, in sticks or rolls, one cent
per pound; chlorate of, two and one-half cents per pound.
64. Hydriodate, iodide, and iodate of, twenty-five cents per
pound.
65. Nitrate of, or saltpeter, refined, one-half cent per pound.
66. Prussiate of, red, eight cents per pound; yellow, four
cents per pound; cyanide of potassium, twelve and one-half per
centum ad valorem.
PREPARATIONS:
67. Medicinal preparations containing alcohol, or in the pre-
paration of which alcohol is used, not specially provided for in
this Act, fifty-five cents per pound, but in no case shall the
same pay less than twenty-five per centum ad valorem.
68. Medicinal preparations not containing alcohol or in the
preparation of which alcohol is not used, not specially provided
for in this Act, twenty-five per centum ad valorem; calomel and
other mercurial medicinal preparations, thirty-five per centum
ad Valorem.
69. Piasters, healing or curative, of all kinds, and court-plas-
ter, thirty-five per centum ad valorem. -
70. Preparations used as applications to the hair, mouth,
teet.), or skin, such as cosmetics, dentifrices, pastes, pomades,
powders, and other toilet articles, and articles of perfumery,
whether in sachets or otherwise, not containing alcohol or in
the manufacture of which alcohol is not used, and not specially
provided for in this Act, fifty per centum ad valorem.
71. Santonin, and all salts thereof containing eighty per cen-
tum or over of santonin, one dollar per pound.
18 |F. B. VANDEGRIFT & CO.
SOAP:
72. Castile soap, one and one-fourth cents per pound; fancy,
perfumed, and all descriptions of toilet soap, including so-
call-J medicinal or medicated soaps, fifteen cents per pound;
all other soaps not specially provided for in this Act, twenty
per centum ad valorem.
SODA:
73. Bicarbonate of soda, or supercarbonate of soda, or salera-
tus, and other alkalies colltaining fifty per centum or more of
bicarijonate of soda, three-fourths of one cent per pound.
74. Bichromate and chromate of soda, two celts per pound.
75. Crystal carbonate of soda, or concentrated soda crystals,
or monohydrate, or , esquicarbonate of soda, three-tenths of one
cent per pound; chlorate of soda, two cents per pound.
76. Hydrate of, or caustic soda, three-fourths of one cent per
pound; nitrite of soda, two and one-half cel,ts per pound; hy-
posulphite and sulphide of roda, one-half of one cent per pound.
77. Sal soda, or soda crystals, not concentrated, two-tenus
of OL3 cent per pound.
78. Soda ash, three-eighths of one cent per pound; arseniate
of soda, one and on -fourth cents per pound.
79. Silicate of soda, or other alkaline silicate, one-half of one
cent per pound.
80. Sulphate of soda, or salt cake, or niter cake, one dollar
and twenty-five cents per ton. - --
81. Sea moss, ten per centum ad valorem.
82. Sponges, twenty per centum ad valorem; manufactures of
sponges, or of which sponge is the component material of chief
value not specially provided for in this Act, forty per centum
ad valorem.
83. Strychnia, or strychnine, and all salts thereof, thirty cents
per Ounce. *
84. Sulphur, refined or sublimed, or flowers of, eight dollars
per ton. *
85. Sumac, ground, three-tenths of one cent per pound.
86. Vanillin, eighty cents per ounce.
Schedule B–Earths, Earthenware and Glassware.
BRICE AND TILE:
87. Fire-brick, weighing not more than ten pounds each, not
glazed, enameled, ornamented, or decorated in any manner,
one dollar and twenty-five cents per ton; glazed, enameled, or-
namented, or decorated, forty-five per centum ad valorem;
brick, other than fire-brick, not glazed, enameled, painted, vitri-
fied, ornamented, or decorated in any manner, twenty-five per
centum ad valorem; if glazed, enameled, painted, vitrified, or-
namented, or decorated in any manner, forty-five per centum
ad valorem.
88. Tiles, plain unglazed, one color, exceeding two square
inches in size, four cents per square foot; glazed, encaustic,
ceramic mosaic, vitrified, semi-vitrified, flint, spar, embossed,
onameled, ornamental, hand painted, gold decorated, and all
other earthenware tiles, valued at not exceeding forty cents
TARIFF ACT, 1897. - 19
per square foot, eight cents , square foot; exceeding forty
cents per square foot, ten cents per square foot and twenty-five
per centum ad valorem.
CEMENT, LIME, AND PLASTER:
89. Roman, Portland, and other hydraulic cement, in barrels,
sacks, or other packages, eight cents per one hundred pounds,
including weight of barrel or package; in bulk, seven cents per
one hundred pounds; other cement, twenty per centum ad va-
lorem.
90. Lime, five cents per one hundred pounds, including weight
of barru- or package.
91. Plaster rock or gypsum, crude, fifty cents per ton; if
ground or calcined, two dollars and twenty-five cents per ton;
pearl hardening for paper makers’ use, twenty per centum ad
valorem.
92. Pumice stone, wholly or partially manufactured, six dol-
lars per ton; unmanufactured, fifteen per celltum ad valorem.
CLAYS OR EARTHS:
93. Clays or earths, unwrought or unmanufactured, not spec-
ially provided for in this Act, one dollar per ton; wrought or
manufactured, not specially provided for in this Act, two dol-
lars per ton; china clay or kaolin, two dollars and fifty cents
per ton; limestone rock asphalt containing not more than fif-
teen per centum of bitumen, fifty cents per ton; asphaltum and
bitumen, not specially provided for in this Act, crude, if not
dried, or otherwise advanced in any manner, one dollar and
fifty cents per ton; if dried or otherwise advanced in any man-
ner, three dollars per ton; bauxite, or beauxite, crude, not re-
fined or otherwise advanced in condition from its natural state,
one dollar per ton; fullers’ earth, unwrought and unmanufac-
tured, one dollar and fifty cents per ton; wrought or manu-
factured, three dollars per ton.
EARTHENWARE AND CHINA:
94. Common yellow, brown, or gray earthenware, plain, em-
bossed, or salt-glazed common stoneware, and crucibles, all the
fore_oing not decorated in any manner, twenty-five per centum
ad Valorem; Rockingham earthenware not decorated, forty per
centum ad valorem.
95. China, porcelain, parian, bisque, earthen, stone, and crock-
ery ware, including clock cases with or without movements,
plaques, ornaments, toys, toy tea sets, charms, vases and stat-
uettes painted, tinted, stained, enameled, printed, gilded, or
otherwise decorated or orjamented in any marner, sixty per
centum ad Valorem; if plain white and without superadded or-
namentation of any kind, fifty-five per centum ...d valorem.
96. All other china, porcelain, parian, bisque, earthen, stone,
and crockery ware, and manºfactures thereof, Cr of which the
same is the component material of chief value, by whatever
name known, not specially provided, for in this Act, if painted,
tinted, stained, enameled, printed, gilded, or otherwise deco-
rated or ornamented in any manner, sixty per centum ad va-
lorem; if not ornamented or decorated, fifty-five per centum
ad Valorem.
20 - F. B. VANDEGRIFT & Co.
97. Articles and wares composed wholly or in chief value of
earthy or mineral substances, or carbon, not specially provided
for in this Act, if not decorated in any manner, thirty-five per
centum ad valorem; if decorated, forty-five per centum ad va-
lorem. -
98. Gas retorts, three dollars each; lava tips for burners, ten
cents per gross and fifteen per centum ad valorem; carbons for
electric lighting, ninety cents per hundred; filter tubes, forty-
five per centum ad valorem; porous carbon pots for electric bat-
teries, without metallic connections, twenty per centum ad va-
"orem.
GLASS AND GLASSWARE:
99. Plain green or colored, molded or pressed, and flint, lilue,
or lead glass bottles, vials, jars, and covered or uncovered
demijohns and carboys, any of the foregoing, filled or unfilled, .
not otherwise specially provided for, and whether their con-
tents be dutiable or free (except such as contain merchandise
subject to an ad Valorem rate of duty, or to a rate of duty
based in whole or in part upon the value thereof, which shall
be dutiable at the rate applicable to their contents), shall pay
duty as follows: If holding more than one pint, one cent per
pound; if holding not more than one pint and not less than one-
fourth of a pint, one and one-half cents per pound; if holding
less than one-fourth of a pint, fifty cents per gross: Provided,
That none of the above articles shall pay a less rate of duty
than forty per centum ad valorem.
100. Glass bottles, decanters, or other vessels or articles of
glass, cut, engraved, painted, colored, stained, silvered, gilded,
etched, frosted, printed in any manner or otherwise orna-
mented, decorated, or ground (except such grinding as is neces-
sary for fitting stoppers), and any articles of which such glass
is the component material of chief value, and porcelain, opal
and other blown glass ware; all the ſoregoing, filled or unfilled,
and whether their contents be dutiable or free, sixty per cen-
tum ad Valorem.
101. Unpolished, cylinder, crown, and common window glass,
not exceeding ten by fifteen inches square, one and three-
eighths cents per pound; above that, and , t exceeding sixteen
by twenty-four inches square, one and seven-eighths cents per
pound; above that, and not exceeding twenty-four by thirty
inches square, two and three-eighths cents per pound; above
that, and not exceeding twenty-four by thirty-six inches square,
two and seven-eighths cents per pound; above that, and not
exceeding thirty by forty inches square, three and three-eighths
cents per pound; above that, and not exceeding forty by sixty
inches square, three and seven-eighths cents per pound; above
that, four and three-eighths cents per pound: Prozºded, That
unpolished, cylinder, crown and common window glass, im-
ported in boxes, shall contain fifty square feet, as nearly as
sizes will permit, and the duty shall be computed thereon ac-
cording to the actual weight of glass.
102. Cylinder and crown glass, polished, not exceeding six-
teen by twenty-four inches square, four cents per square foot;
above that, and not exceeding twenty-four by thirty inches
square, six cents per square foot; above that, and not exceeding
TARIFF ACT, 1897. 21
twenty-four by sixty inches square, fifteen cents per square
foot; above that, twenty cents per square foot.
103. Fluted, rolled, ribbed, or rough plate glass, or the same
containing a wire netting within itself, not including crown,
cylinder, or common window glass, not exceeding sixteen by
twenty-four inches square, three-fourths of one cent per square
foot; above that, and not exceeding twenty-four by thirty inches
square, one and one-fourth cents per square foot; all above
that, one and three-fourths cents per square foot; and all fluted,
rolled, ribbed, or rough plate glass, weighing over one hundred
pounds per one hundred square feet, shall pay an additional
duty on the excess at the same rates herein imposed: Pro-
vided, That all of the above plate glass, when ground, smoothed
or otherwise obscured, shall be subject to the same rate of duty
as cast polished plate glass unsilvered.
104. Cast polished plate glass, finished or unfinished and un-
silvered, not exceeding sixteen by twenty-four inches Square,
eight cents per square foot; above that, and not exceeding
twenty-four by thirty inches square, ten cents per square foot;
above that, and not exceeding twenty-four by sixty inches
square, twenty-two and one-half cents per square foot; all
above that, thirty-five cents per square foot.
105. Cast polished plate glass, silvered, cylinder and crown
glass, silvered, and looking-glass plates, exceeding in size one
hundred and forty-four square inches and not exceeding six-
teen by twenty-four inches square, eleven cents per Square
foot; above that, and not exceeding twenty-four by thirty
inches square, thirteen cents per square foot; above that, and
not exceeding twenty-four by sixty inches square, twenty-five
cents per square foot; all above that, thirty-eight cents per
square foot.
106. But no looking-glass plates or plate glass, silvered,
when framed, shall pay a less rate of duty than that imposed
upon similar glass of like description not framed, but shall pay
in addition thereto upon such frames the rate of duty appli-
cable thereto when imported separate.
107. Cast polished plate glass, silvered or unsilvered, and cyl-
inder, crown, or common window glass, silvered or unsilvered,
when bent, ground, obscured, frosted, sanded, enameled, bev-
eled, etched, embossed, engraved, flashed, stained, colored,
pai:-ted, or otherwise ornamented or decorated, shall be subject
to a duty of five per centum ad Valorem in addition to the rates
otherwise chargeable thereon.
108. Spectacles, eyeglasses, and goggles, and frames for the
same, or parts thereof, finished or unfinished, valued at not
over forty cents per dozen, twenty cents per dozen and fifteen
per centum ad valorem; valued at over forty cents per dozen
and not over one dollar and fifty cents per dozen, forty-five
cents per dozen and twenty per centum ad valorem; valued at
Over one dollar and fifty cents per dozen, fifty per centum ad
valorem.
109. Lenses of glass or pebble, ground and polished to a
spherical, cylindrical, or prismatic form, and ground and pol-
Íshed plano or coquill glasses, wholly or partly manufactured,
with the edges unground, forty-five per centum ad Valorem; if
22 - F. B. VANDEGRIFT & CO.
with their edges ground or beveled, ten cents per dozen pairs
and forty-five per centum ad Valorem.
110. Strips of glass, not more than three inches wide, ground
or polished on one or both sides to a cylindrical or prismatic
form, and glass slides for magic lanterns, forty-five per centum
ad valorem. -
111. Opera and field glasses, telescopes, microscopes, photo-
graphic and projecting lenses and optical instruments, and
frames or mountings for the same; all the foregoing not spec-
ially provided for in this Act, forty-five per centum ad valorem.
112. Stained or painted glass windows, or parts thereof, and
all mirrors, not exceeding in size one hundred and forty-four
square inches, with or without frames or cases, and all glass
or manufacturers ol glass or paste, or of which glass or paste
is the component material of chief value, got specially provided
for in this Act, forty-five per centum ad valorem.
113. Fusible enamel, twenty-five per centum ad valorem.
MARBLE AND STONE, AND MANUFACTURES OF:
114. Marble in block, rough or squared only, sixty-five cents
per cubic foot; onyx in block, rough or squared, one dollar and
fifty cents per cubic foot; marble or onyx, sawed or dressed,
over two inches in thickness, one dollar and ten cents per cubic
foot; slabs or paving tiles of marble or onyx, containing not
less than four superficial inches, if not more than one inch in
thickness, twelve cents per superficial foot; 1; more than one
inch and not more than one and one-half inches in thickness,
fifteen cents per superficial foot; if more than one and one-half
inches in thickness, fifteen cents per superficial foot; if more
than one and one-half inches and not more than two inches in
thickness, eighteen cents per superficial foot; if rubbed in whole
or ill part, three cents per superficial foot in addition; mosaic
cubes of marble, onyx, or stone, not exceeding two cubic inches,
in size, if loose, one cent per pound and twenty per centum. ad
valorem; if attached to paper or other material, twenty cents
per superficial foot and thirty-five per centum ad valorem.
115. Manufacturers of agate, alabaster, chalcedony, chryso-
lite, coral, cornelian, garnet, jasper, jet, malachite, marble,
Onyx, rock crystal, or spar, including clock cases with or with-
out Lovements, not specially prº-ided for in this Act, fifty per
centum ad valorem.
Stone:
116. Burr stones, manufactured or bound up into millstones,
fifteen per centum ad valorem. .” -
117. Freestone, granite, sandstone, limestone, and other
building or monumental stone, except marble and Onyx, un-
manufactured or undressed, not specially provided for in this
Act, twelve cents per cubic foot.
118. Freestone, granite, Šandstone, limestone, and other build-
ing or monumental stone, except marble and onyx, not specially
provided for in this Act, hewn, dressed, or polished, fifty per
centum ad valorem.
119. Grindstones, finished or unfinished, one dollar and
seventy-five cents per ton.
TARIFF ACT, 1897. - 23
Slate:
120. Slates, slate chimney-pieces, mantels, slabs for tables,
roofing slates, and all other manufactures of slate, not specially
provided for in this Act, twenty per centum ad valorem.
Schedule C–Metal and ſlanufacturers of.
121. Iron ore, including manganiferous iron ore, and the dross
or residuum from burnt pyrites, forty cents per ton: Proz/ided,
That in levying and collecting the duty on iron ore no deduc-
tion shall be made from the weight of the ore on account of
moisture which may be chemically or physically combined
there with; basic slag, ground or unground, one dollar per ton.
122. Iron in pigs, iron kentledge, spiegeleisen, ferro-mangan-
ese, ferro-silicon, wrought and cast scrap iron, and scrap steel,
four dollars per ton; but nothing shall be deemed scrap iron
or scrap steel except waste or refuse iron or steel fit only to be
remanufactured.
123. Bar iron, square iron, rolled or hammered, comprising
flats not less than one inch wide nor less than three-eights of
one inch thick, round iron not less than seven-sixteenths of one
inch in diameter, six-tenths of one cent per pound.
124. Round iron, in coils or rods, less than seven-sixteenths
of one inch in diameter, and bars or shapes of rolled or ham-
mered iron, not specially provided for in this Act, eight-tenths
of one cent per pound: Proz/ided, That all iron in slabs, blooms,
loops, or other forms less finished than iron in bars, and more
advanced than pig iron, except castings, shall be subject to a
duty of five-tenths of one cent per pound: Provided, further,
That all iron bars, blooms, billets, or sizes or shapes of any
kind, in the manufacture of which charcoal is used as fuel,
shall be subject to a duty of twelve dollars per ton.
125. Beams, girders, joists, angles, channels, car-truck cham-
nels, T T, columns and posts or parts or sections of columns
and posts, deck and bulb beams, and building forms, together
with all other structural shapes of iron or steel, whether plain
or punched. or fitted for use, five-tenths of one cent per pound.
126. Boiler or others plate iron or steel, except crucible plate
steel and saw plates hereinafter provided for, not thinner than
number ten wire gauge, sheared or unsheared, and skelp iron
or steel sheared or rolled in grooves, valued at one cent per
pound or less, five-tenths of one cent per pound; valued above
one cent and not above two cents per pound, six-tenths of one
cent per pound : valued above two cents and not above four
cents per pound, one cent per pound ; valued at over four cents
per pound, twenty-five per centum ad valorem : Proz/ided,
That all sheets or plates of iron or steel thinner than number
ten wire gauge shall pay duty as iron or steel sheets.
127. Iron or steel anchors or parts thereof, one and one-half
cents per pound ; forgings of iron or steel, or of combined iron
and steel, of whatever shape or whatever degree or stage of
manufacture, not specially provided for in this Act, thirty-five
per centum ad Valorem ; anti-friction ball forgings of iron or
steel, or of combined iron and steel, forty-five per centum ad
Valorem.
128. Hoop, band, or scroll iron or steel, not otherwise pro-
24 F. B. VANDEGRIFT & CO
vided for in this Act, valued at three cents per pound or less,
eight inches or less in width, and less than three-eighths of one
inch thick and not thinner than number ten wire gauge, five-
tenths of one cent per pound; thinner than number ten Wire
gauge and not thinner than number twenty wire gauge, six-
tenths of one cent per pound; thinner than number twenty wire
gauge, eight-tenths of one cent per pound: Prozºided, That
barrel hoops of iron or steel, and hoop or band iron or hoop or
band steel flared, splayed or punched, with or without buckles
or fastenings, shall pay one-tenth of one cent per pound more
duty than that imposed on the hoop or band iron or steel from
which they are made; steel bands or strips, untempered, suit-
able for making band saws, three cents per pound and twenty
per centum ad valorem; if tempered, or tempered and polished,
six cents per pound and twenty per centum ad valorem.
129. Hoop or band iron, or hoop or band steel, cut to lengths,
or wholly or partly manufactured into hoops or ties, coated or
not coated with paint or any other preparation; with or without
buckles or fastenings, for bailing "otton cr any other commo-
dity, five-tenths of one cent per pound. -
130. Railway bars, made of iron or steel, and railway bars
made in part of steel, T rails, and punched iron or steel flat
rails, seven-twentieths of one cent per pound; railway fish-
plates, or splice-bars, made of iron or stee., four-tenths of one
cent per pound. -
131. Sheets of iron or steel, common or black, of whateve
dime...sions, and skelp iron or steel, valued at three cents per
pound or less, thinner than number ten and not thinner than
number twenty wire guage, seven-tenths of one cent per
pound; thinner than numbe. twenty wire guage and not thinner
than number twenty-five wire gauge, eight-tenths of one cent
per pound; thinner than number twenty-five wire guage and
not thinner than nuclber thirty two wire guage, one and one-
tenth cents per pound; thinner than number thirty-two wire
guage, one and two-tenths cents per pound; corrugated or
crimped, one and one-tenth cents per pound: Provided. That
all sheets of common or black iron or steel not thinner than
number ten wire gauge shall pay duty as plate iron or plate
steel. - -
132. All iron or steel sheeta or plates, azud all hoop, hand, or
scroll iron or steel, excepting what are known commercially
as tin plates, 12rne plates, and taggers tin, and hereinafter pro-
vided for, when galvanized or coated with zinc, pelter, or other
metals, or any alloy of thcse metals, shall pay two-tenths of
One cent per pound more duty than if the same was not so
galvanized or coated. - - - -
133. Sheets of iron or steel, polished, planished, or glanced, by
Whatever name designated, two cents per po- nd: Provided,
That plates or sheets of iron or steel, by whatever name des-
ignated, other than the polished, planished, or glanced herein
provided for, which have been pickled or cleaned by acid, or by
any other material or process, or which are cold-rolled, smooth-
ed only, not polished, shall pay two-tenths of one cent per
pounu, more duty than the corresponding gauges of common or
black sheet iron or steel. -
134. Sheets or plates of iron or steel, or taggers iron or steel,
TARIFF ACT, 1897. 25
coated with tin or lead, or with a mixture of which these met-
als, or either of them, is a component part, by the dipping or
any other process, and commercially known as tin plates, terne
plates, and taggers tin, one and one-half cents per pound.
135. Steel ingots, cogged ingots, blooms, and slabs, by what-
ever process made; die blocks or blanks; billets and bars and
tapered or beveled bars; mill shafting; pressed, sheared, or
stamped shapes; saw plates, wholly or partially manufactured;
hammer molds or swaged steel; gun-barrel molds not in bars;
alloy's used as substitutes for steel in the manufacture of tools;
all descriptions and shapes of dry sand, loam, or iron-molded
steel castings; sheets and plates and steel in all forms and
shapes not specially provided for in this Act, all of the above
valued at one cent per pound or less, three-tenths of one cent
per pound; valued above one cent and not a ove one and four-
tenths cents per pound, four-tenths of one cent per pound;
valued above one and four-tenths cents and not above one and
eight-tenths cents per pound, six-tenths of one cent per pound;
valued above one and eight-tenths cents and not : bove two and
two-tenths cents per pound, seven-tenths of one cent per pound;
valued above two and two-tenths cents and not above three
cents per pound, nile-tenths of one cent per pound; valued
above three cents per pound and not above four cents per
pound, one and two-tenths cents per pound; valued above four
cents and not above seven cents per pound, one and three-
tenths cents per pound; valued above seven cents and not above
ten cents per pound, two cents per pound; valued above ten
cents and not above thirteen cents per pound, two and four-
tenths cents per pound; valued above thirteen cents and not
above sixteen cents per pound, two and eight-tenths cents per
pound; valued above sixteen cents per pound, four and seven-
tenth cents per pound.
WIRE:
136. Wire rods: Rivet, screw, fence, and other iron or steel
wire rods, whether round, oval, flat, or square, or in any other
shape, and nail rods, in coils or otherwise, valued at four cents
Dr less per pound, four-tenths of one cent per pound; valued
Over four cents per pound, three-fourths of one cent per pound:
Provided, That all round iron or stcel rods smaller than num-
ber six wire gauge shall be classed and dutiable as wire: Pro-
vided, ſun ther, That all iron or steel wire rods which have been
tempered or treated in any manner or partly manufactured
shall pay an additional duty of one-half of one cent per pound. *
137. Round iron or stuel wire, not smaller than number thir-
teen Wire gauge, one and rne-fourth cents per pound; smaller
than number thirteen and not smaller than number sixteen
wire gauge, one and one-half cents per pound; smaller than
number sixteen wire gauge, two cents per pound: Prozºided,
That all the foregoing valued at more th in four cents per
pound shall pay forty per centum ad valorcm. Iron or steel or
other wire not specially provided for in this ict, including such
as is commonly known as hat wire, or bonnet wire, crinoline
wire, corset wire, needle wire, piano wire, clock wire, and
watch wire, whether flat or otherwise, and corset clasps, cor-
Bet Steels and dress steels, and sheet steel in strips, twenty-five
26 |P. B. VANDEGRIFT & CO.
one-thousandths of an inch thick or thinner, any of the fore-
going, whether uncovered or covered with cotton, silk, metal, or
other material, valued at more than four cents per pound,
ſerty-five per centum ad valorem: Provided, That articles
manufactured from iron, steel, brass, or copper wire, shall pay
the rate of duty imposed upon the wire used in the manufact-
ure of such articles, and in addition thereto one and one-fourth
cents per pound, except that wire rope and wire strand shall
pay the maximum rate of duty which would be imposed upon
any wire used in the manufacture thereof, and in addition
thereto one cent per pound; and on iron or steel wire coated
with zinc, tin, or any other metal, two-tenths of one cent per
poun l in addition to the rate imposed on the wire from which
it is made.
G|ENERAL PROVISIONS:
138. No allowance or reduction of duties for partial loss or
damage in consequence of rust or of discoloration shall be made
upon any description of iron or steel, or upon any article wholly
or partly manufactured of iron or steel, or upon any manu-
facture of iron or steel.
139. All metal produced from iron or its ores, which is cast
and malleable, of whatever description or form, without regard
to the percentage of carbon contained therein, whether pro-
duced by cementation, or converted, cast, or made from iron
or its ores, by the crucible, Bessemer, Clapp-Griffith, pneumatic,
Thomas-Gilchrist, basic, Siemens-Martin, or open-hearth pro-
cess, or by the equivalent of either, or by a combination of two
or more of the processes, or their equivalents, or by any fusion
or other process which produces from iron or its ores a metal
either granular or fibrous in structure, which is cast and mal-
leable, excepting what is known as malleable-iron castings,
shall be classed and denominated as steel.
140. No article not specially provided for in this Act, which
is wholly or partly manufactured from tin plate, terne plate,
or the sheet, plate, hoop, band, or scroll iron or steel herein
provided for, or of which such tin plate, terne plate, sheet,
plate, hoop, band, or scroll iron or steel shall pe the material
of chief value, shall pay a lower rate of duty than that im-
posed on the tin plate, terne plate, or sheet, plate, hoop, band,
or scroll iron or steel from which it is made, or of which it
si.all be the component thereof of chief value.
141. On all iron or steel bars or rods of whatever shape or
section which are cold rolled, cold drawn, cold hammered, or
polished in any way in addition to the ordinary process of hot
rolling or Lammering, there shall be paid one-fourth of one cent
per pound in addition to the rates provided in this Act on bars
or rods of whatever section or shape which are not hot rolled;
and on all strips, plates, or sheets of iron or steel of whatever
shape; other than the polished, planished, or glanced sheet iron
or sheet steel hereinbefore provided for, which are cold rolled,
cold hammered, blued, brightened, tempered, or polished by
any process to such perfected surface finish or polish better
‘than the grade of cold rolled, smoothed only, hereinbefore pro-
vided for, there shall be paid one cent per pound in addition to
the rates provided in this Act upon plates, strips, or sheets of
TARIFF ACT, 1897. 27
iron or steel of common or black finish; and on steel circular
saw plates there shall be paid one-half of one cent per pound
in addition to the rate provided in this Act for steel saw plates.
MANUFACTURES OF IRON AND STEEL:
142. Anvils of iron or steel, or of iron and steel combined, by
whatever process made, or in whatever stage of manufacture,
one and seven-eighths cents per pound.
143. Axles, or parts thereof, axle bars, axle blanks, or forg-
ings for axles, whether of iron or steel, without reference to
the stage or state of manufacture, valued at not more than six
cents per pound, one cent per pound: Prozyżded, That when
iron or steel axles are imported fitted in wheels, or parts of
wheels, of iron or steel, they shall be dutiable at the same
rate as the wheels in which they are fitted.
144. Blacksmiths' hammers and sledges, track tools, wedges,
and crowbars, whether of iron or steel, one and one-half cents
per pound.
145. Bolts, with or without threads or nuts, or bolt-blanks,
and finished hinges or hinge-blanks, whether of iron or steel,
one and one-half cents per pound.
146. Card-clothing manufactured from tempered steel wire,
forty-five cents per square foot; all other, twenty cents per
square foot.
147 Cast-iron pipe of every description, four-tenths of one
cent per pound.
148. Cast-iron vessels, plates, stove-plates, and irons, sad-
irons, tailors' irons, hatters' irons, and castings of iron, not
specially provided for in this Act, eight-tenths of one cent per
pound.
149. Castings of malleable iron not specially provided for in
this Act, nine-tenths of one cent per pound.
150. Cast hollow-ware, coated, glazed, or tinned, two cents
per pound.
151. Chain or chains of all kinds, made of iron or steel, not
less than three-fourths of one inch in diameter, one and one-
eighth cents per pound; less than three-fourths of one inch and
not less tuan three-eighths of one inch in diameter, one and
three-eighth cents per pound; less than three-eighths of one inch
in diameter and not less than five-sixteenths of one inch in di-
ameter, one and seven-eighth cents per pound; less than five-
sixteenths of one inch in diameter, three cents per pound; but
no chain or chains of any description shall pay a lower rate of
duty than forty-five per centum ad valorem.
152. Lap welded, butt welded, seamed, or jointed iron or steel
boiler tubes, pipes, flues, or stays, not thinner than number
sixteen wire gauge, two cents per pound; welded cylindrical
furnaces, made from plate metal, two and one-half cents per
pound; all other iron or steel tubes, finished, not specially pro-
vided for in this Act, thirty-five per centum ad valorem.
CUTLERY:
153. Penknives or pocketknives, clasp knives, pruning knives,
and budding knives of all kinds, or parts thereof, and erasers
or manicure knives, or parts thereof, wholly or partly manu-
factured, valued at not more than forty cents per dozen, forty
2S . F. B. VANDEGRIFT & CO.
per centum ad valorem; valued at more than forty cents per
dozen and not exceeding fifty cents per dozen, One cent per
piece and forty per centum ad valorem; valued at more than
fifty cents per dozen and not exceeding one dollar and twenty-
five cents per dozen, five cents per piece and forty per centum
ad valorem; valued at more than one dollar and twenty-five
cents per dozen and not exceeding three dollars per dozen, ten
cents per piece and forty per centum ad valorem; valued at
more than three dollars per dozen, twenty cents per piece and
forty per centum ad valorem: Prozºided, That blades, handles,
or other parts of either or any of the foregoing articles, im-
ported in any other manner than assembled in finished knives
or erasers, shall be subject to no less rate of duty than herein
provided for penknives, pocketknives, clasp knives, pruning
knives, manicure knives, and erasers valued at more than fifty
and not more than one dollar and fifty cents per dozen. Razors
and razor blades, finished or unfinished, valued at less than one
dollar and fifty cents per dozen, fifty cents per dozen and fif-
teen per centum ad valorem; valued at one dollar and fifty
cents per dozen and less than three dollars per dozen, one dol-
lar per dozen and fifteen per centum ad valorem; valued at
three dollars per dozen or more, one dollar and seventy-five
cents per dozen and twenty per centum ad valorem. Scissors
and shears, and blades for the same, finished or unfinished,
valued at not more than fifty cents per dozen, fifteen cents per
dozen and fifteen per centum ad valorem ; valued at more than fifty
eents and not more than one dollar and seventy-five cents per
dozen, fifty cents per dozen and fifteen per centum ad valorem ;
Valued at more than one dollar and seventy-five cents per dozen,
seventy-five cents per dozen and twenty-five per centum ad valorem.
154. Swords, sword-blades, and side-arms, hirty-five per cen-
tum ad Valorem. -
155. Table, butchers’, carving, cooks', hunting, kitchen, bread,
butter, vegetable, fruit, cheese, plumbers’, painters’, palette,
artists’, and shoe knives, forks and steels, finished or unfinished,
with handles of mother-of-pearl, shell or ivory, sixteen cents
each; with handles of deer horn, twelve cents each; with han-
dles f hard rubber, solid bone, celluloid or any pyroxyline ma-
terial, five cents each; with handles of any other material than
those above mentioned, one and one-half cents each, and in ad-
dition, on all the above articles, fifteen per centum ad valorem:
Proz/ided, That none of the above-named articles shall pay a
less rate of duty than forty-five per centum ad valorem.
150. Files, file-blanks, rasps, and floats, of all cuts and
kinds; two and one-half inches in length and under, thirty
cents per dozen; over two and one-half inches in length and not
over four and ene-half inches, fifty cents per dozen; over four
and one-half inches in length and under seven inches, seventy-
five cents per dozen; seven inches in length and over, one dol-
lar per dozen.
FIREARMS:
157. Muskets, muzzle-loading shotguns, rifles, and parts
thereof, twenty-five per centum ad valorem.
158. Double-barreled, sporting, breach-loading shotguns, com-
bination shotguns and rifles, valued at not more than five dol-
TARIFF ACT, 1897. 29
lars, one dollar and fifty cents each and in addition thereto
fifteen per centum ad valorem; valued at more than five dollars
and not more than ten dollars, four dollars each and in addition
thereto fifteen per centum ad valorem; valued at more than
ten dollars, six dollars each; double barrels for sporting
breech-loading shotguns and rifles further advanced in Imanu-
facture than rough bored only, three dollars each; stocks for
double-barreled sporting breech-loading shotguns and rifles
wholly or partially manufactured, three dollars each; and in
addition thereto on all such guns and rifles, valued at more
than ten dollars each, and on such stocks and barrels, thirty-
five per centum ad valorem; on all other parts of such guns or
rifles, and fittings for such stocks or barrels, finished or unfin-
ished, fifty per centum ad valorem: Provided, That all double-
barrel sporting breech-loading shotguns and rifles imported
without a lock or locks or other fittings shall be subject to a
duty of six dollars each and thirty-five per centum ad valorem;
single-barreled breech-loading shotguns, or parts thereof, ex-
cept as otherwise specially provided for in this Act, one dollar
each and thirty-five per centum ad valorem. Revolving pistols
or parts thereof, seventy-five cents each, and twenty-five per
centum ad valorem. - -
159. Sheets, plates, wares, or articles of iron, steel, or other
metal, enameled or glazed with vitreous glasses, forty per cen-
tum ad valorem.
NAILS, SPIRES, TACKS AND NEEDLES:
160. Cut nails and cut spikes of iron or steel, six-tenths of
One cent per pound. . -
161. Horseshoe nails, hob nails, and all other wrought iron or
steel nails not specially provided for in this Act, two and one-
fourth cents per pound. . -
162. Wire nails made of wrought iron or steel, not less than
one inch in length and not lighter than number sixteen wire
gauge, one-half of one cent per pound; less than one inch in
length and lighter than number sixteen wire gauge, one cent
per pound.
163. Spikes, nuts, and washers, and horse, mule, or ox shoes,
of Wrought iron or steel, one cent per pound.
164. Cut tacks, brads, or sprigs, not exceeding sixteen ounces
to the thousand, one and one-fourth cents per thousand; ex-
ceeding sixteen ounces to the thousand, one and one-half cents
per pound. -
165. Needles for knitting or sewing machines, including latch
needles, one dollar per thousand and twenty-five per centum
ad Valorem; crochet needles and tape needles, knitting and all
other needles, not specially provided for in this Act, and bod-
kins of metal, twenty-five per centum ad valorem.
PLATES:
166. Steel plates engraved, stereotype plates, electrotype
plates, and plates of other materials, engraved or lithographed,
for printing, twenty-five per centum ad valorem.
167. Rivets of iron or steel, two cents per pound.
SAWS:
168. Crosscut saws, six cents per linear foot; mill saws, ten.
80 F. B. VANDEGRIFT & CO.
cents per linear foot pit, and drag saws, eight cents per linear
foot; circular saws, twenty-five per centum ad valorem; steel
band saws, finished or further advanced than tempered and
polished, ten cents per pound and twenty per centun: ad va-
lorem; hand, back, and all other saws, not specially provided
for in this Act, thirty per rentum ad valorem.
169. Screws, commonly called wood screws, made of iron or
steel, more than two inches in length, four cents per pound;
over one inch and not more than two inches in length, six cents
per pound; over one-half inch and not more than one inch in
length, eight and one-half cents per pound; one-half inch and
less in length, twelve cents per pound.
170. Umbrella and parasol ribs and stretchers, composed in
chief value of iron, steel, or other metal, in frames or other-
wise, fifty per centum ad valorem.
171. Wheels for railway purposes, or parts thereof, made of
iron or steel, and steel-tired wheels for railway purposes,
whether wholly or partly finished, and iron or steel locomotive,
car, or other railway tires or parts thereof, wholly or partly
manufactured, one and one-half cents per pound; and ingots,
cogged ingots, blooms, or blanks for the same, without regard
to the degree of manufacture, one and one-fourth cents per
pound: Proz/ided, That wºmen wheels for railway purposes, or
parts thereof, of iron or steel, are imported with iron or steel
axles fitted in them, the wheels and axles together shall be
dutiable at the same rate as is provided for the wheels when
imported separately.
MISCELLANEOUS METALS AND MANUFACT.
UFES OF:
172. Aluminum, and alloys of any kind in which aluminum is
the Component material of chief value, in crude form, eight
cents per pound; in plates, sheets, bars, and rods, thirteen cents
per pound.
173. Antimony, as regulus or metal, three-fourths of one cent
per pound. -
174. Argentine, albata, or German silver, unmanufactured,
twenty-five per centum ad valorem. -
175. Bronze powder, twelve cents per pound; bronze or
Dutch-metal or aluminum, in leaf, six cents per package of
one hundred leaves.
176. Copper in rolled plates, called 'raziers’ copper, sheets,
rods, pipes, and copper bottoms, two and one-half cents per
pound; sheathing or yellow metal of which copper is the com-
ponent material of chief value, and not composed wholly or in
part of iron ungalvanized, two cents per pound.
GOLD AND SILVER:
177. Gold leaf, one dollar and seventy-five cents per package
of five hundred leaves.
178. Silver leaf, seventy-five cents per package of five hun-
dred leaves.
179. Tinsel wire, lame or lahn, made wholly or in chief value
of gold, silver, or other metal, five cents per pound; bullions
and metal threads, made wholly or in chief value of tinsel wire,
lame or lahn, five cents per pound and thirty-five per centum
TARIFF ACT, 1897. 31
ad valorem; laces, embroideries, braids, galloons, trimmings, or
other articles, made wholly or in chief value of tinsel wire,
lane or lahn bullions, or metal threads, sixty per centum ad
valorem.
180. Hooks and eyes, metallic, whether loose, carded or other-
wis. , including weight of cards, caj:tons, and immediate Wrap-
pings and labels, five and one-half cents per pound and fifteen
per centum ad valorem.
LEAD:
181. Lead-bearing ore of all kinds, one and one-half cents per
pound on the lead contained therein: Provided, That on all
importations of lead-bearing ores the duties shall be estimated
at the port of entry, and a bond given in double the amount of
such estimated duties for the transportation of the ores by
common carriers bonded for the transportation of appraised
or unappraised merchandise to properly equipped sampling or
smelting establishments, whether designated as bonded Ware-
houses or otherwise. On the arrival of the ores at such estab-
lishments they shall be sampled according to commercial meth-
ods under the supervision of Government officers, who shall be
stationed at such establishments, and who shall submit the
samples thus obtained to a Government assayer, designated by
the Secretary of the Treasury, who shall make a proper assay
of the sample, and report the result to the proper customs offi-
cers, and the import entries shall be liquidated thereon, except
in case of ores that shall be emoved to a bonded warehouse to
be refined for exportation as provided by law. And the Sec-
retary of the Treasury is authorized to make all necessary
regulations to enforce the provisions of this paragraph.
182. Lead dross, lead bullion or base bullion, lead in pigs and
bars, lead in any form not specially provided for in this Act,
old refuse lead run into blocks and bars, and old scrap lead fit
only to be remanufactured; all the foregoing, two and one-
eighth cents per pound; lead ºn sheets, pipe, shot, glaziers’ lead
and lead wire, two and one-half cents per pound.
183. Metallic mineral substances in a crude state, and metals
unwrought, not specially provided for in this Act, twenty per
centum ad Valorem; monazite sand and thorite, six cents per
pound. - -
184. Mica, unmanufactured, or rough trimmed only, six cents
per pound and twenty per centum ad v Llorem; mica, cut or
trimmed, twelve cents per pound and twenty per centum ad
valorem.
185. Nickel, nickel oxide, alloy of any kind in which nickel is
a component material of chief value, in pigs, ingots, bars, or
sheets, six cents per pound.
186. Pens, metallic, except gold pens, twelve cents per gross.
187. Penholder tips, penholders or parts thereof, and gold
pens, twenty-five per centum ad valorem.
188. Pins with solid heads, without ornamentation, including
hair, safety, hat, bonnet, and shawl pins; any of the foregoing
composed Wholly of brass, copper, iron, steel, or other base
metal, not plated, and not commonly known as jewelry, thirty-
five per centum ad valorem. *
189. Quicksilver, seven cents per pound. The flasks, bottles,
32 F. B. VANDEGRIFT & CO.
or other vessels in which quicksilver is imported shall be sub-
ject to the same rate of duty as they would be subjected to if
imported empty.
190. Type metal, one and one-half cents per pound for the
lead contained therein; new types, twenty-five per centum ad
valorem.
191. Watch movements, whether imported in cases or not, if
having not more than seven jewels, thirty-five cents each; if
having more than seven jewels and not more than eleven
jewels, fifty cents each; if having more than eleven jewels and
not more than fifteen jewels, seventy-five cents each; if having
more than fifteen jewels and not more than seventeen jewels,
one dollar and twenty-five cents each; if having more than
seventeen jewels, three dollars each, and in addition thereto, on
all the foregoing, twenty-five per centum ad valorem; watch
cases and parts of watches, including watch dials, chronom-
eters, box or ship, and parts thereof, clocks and parts thereof,
not otherwise provided for in this Act, whether separately
packed or otherwise, not composed wholly or in part of China,
porcelain, parian, bisque or earthen ware, forty per centum ad
valorem; all jewels for use in the manufacture of watches or
clocks, ten per centum ad Valorem. -
192. Zinc in blocks or pigs, one and one-half cents per pound;
in sheets, two cents per pound; old and worn-out, fit only to be
remanufactured, one cent per pound. -
193. Articles or wares not specially provided for in this Act,
composed wholly or in part of iron, steel, lead, copper, nickel,
pewter, zinc, gold, silver, platinum, aluminum or other metal,
and whether partly or wholly manufactured, forty-five per
centum ad valorem. - - -
Schedule D–Wood and ſlanufactures of.
194. Timber hewn, sided, or squared (not less than eight
inches square), and round timber used for spars or in building
wharves, one cent per cubic foot. -
195. Sawed boards, planks, deals, and other lumber of white-
wood, sycamore, and basswood, one dollar per thousand feet
board measure; sawed lumber, not specially provided for in
this Act, two dollars per thousand feet board measure; but
when lumber of any sort is planed or finished, in addition to the
rates herein provided, there shall be levied “nd paid for each
side so planed or finished fifty cents per thousand feet board
measure; and if planed on one side and tongued and grooved,
one dollar per thousand feet board measure; and if planed On
two sides and tongued and grooved, one dollar and fifty cents .
per thousand feet board measure; and in estimating board
measure under this sch, dule no deduction shall be made on
hoard measure on account ºf planing, tonguing and groov-
ing. Proz/ided, That if any country or dependency shall impose
an export duty upon saw logs, round unmanufactured timber, .
stave bolts, shingle bolts, or heading bolts, exported to the
|United States, or a discriminating charge upon broom sticks,
or chains used by American citizens in towing logs, the amount
of such export duty, tax, or other charge, as the case may be,
shall be added as an additional duty to the duties imposed upon
TARIFF ACT, 1897. 33
the 3rticles mentioned in this paragraph when imported from
such country or dependency. -
196. Paving posts, railroad ties, and telephone, trolley, el
tric-light and telegraph poles of cedar or other woods, twenty
per centum ad Valorem.
197. I&indling wood in bundles not exceeding one-quarter of
a cubic foot each, three-tenths of one cent per bundle; if in
larger bundles, three-tenths of one cent for each additional
quarter of a cubic foot or fractional part thereof.
198. Sawed boards, planks, deals, and all forms of sawed
cedar, lignum-vitae, lancewood, ebony, box, granadilla, mahog-
any, ro-ewood, satinwood, and all other cabinet woods not fur-
ther manufactured than sawed, fifteen per centum ad valorem;
veneers of wood, and wood, unmanufactured, not specially pro-
vided for in this Act, twenty per centum ad Valorem.
199. Clapboards, one dollar and fifty cents per thousand.
200. Hubs for wheels, posts, heading bolts, stave bolts, last-
blocks, wagon-blocks, oar-blocks, heading-blocks, and all like
blocks or sticks, rough-hewn, sawed or bored, twenty per
centum ad Valorem; fence posts, ten per centum - d valorem
201. Laths, twenty-five cents per one thousand pieces.
202. Pickets, palings and staves of wood, of all kinds, ten per
centum ad valorem.
203. Shingles, thirty cents per thousand.
204. Casks, barrels, and hogsheads (em;...ty), sugar-box
shooks, and packing-boxes (empty), and packing-box shooks,
of wood, not specially provided for in this Act, thirty per cen-
tum ad Valorem.
205. Boxes, barrels, or other articles containing oranges,
lemons, limes, grape fruit, shaddocks or pomelos, thirty per
centum ad valorem: Provided, That the thin wood, so called,
comprising the sides, tops and bottoms of orange and lemon
boxes of the growth and manufacture of the United States, ex-
ported as orange and lemon box shooks, may be reimported in
completed form, filled with oranges and lemons, by the payment
of duty at one-half the rate imposed on similar boxes of en-
tirely foreign growth and manufacture.
206. Chair cane or reeds, wrought or manufactured from rat-
tans or reeds, ten per centum ad valorem; osier or willow pre-
pared for basket makers’ use, twenty per centum ad valorem;
manufactures of osier or willow, forty per centum ad valorem.
207. Toothpicks of wood or other vegetable substance, two
cents per one thousand and fifteen per centum ad valorem;
butchers’ and packers’ skewers of wood, forty cents per thou-
sand.
208. House or cabinet furniture, of wood, wholly or partly
finished, and manufactures of wood, or of which wood is the
, component material of chief value, not specially provided for
in this Act, thirty-five per centum ad valorem.
Schedule E–Sugar, Molasses, and Manu-
factures of.
209. Sugars not above number sixteen Dutch standard in
color, tank bottoms, sirups of cane juice, melada, concentrated
melada, concrete and concentrated molasses, testing by the
polariscope not above seventy-five degrees, ninety-nve one-
34 F. B. VANDEGRIFT & Co.
hundredths of one cent per pound, and for every additional de-
gree shown by the polariscopic test, thirty-five che-thousandths
of one cent per pound additional, and fractions of a degree
in proportion; and on sugar above number sixteen Dutch stand-
ard in color, and on all sugar which has gone through a process
of refining, one cent and ninety-five one-hundredths of one cent
per pound; molasses testing above forty degrees and not above
fifty-six degrees, three cents per gallon; testing fifty-six de-
grees and above, six cents per gallon; sugar drainings and
Sugar SWeepings shall be subject to duty as molasses or sugar,
as the case may be, according to polariscopic test: Proz/ided,
That nothing herein contained shall be so construed as to abro-
gate or in any manner impair or affect the provisions of the
treaty of commercial reciprocity concluded between the United
States and the Kir g of the Eſawaiian Islands on the thirtieth
day of January, eighteen hundred and seventy-five, or the pro-
visions of any Act of Congress heretofore passed for the exe-
cution of the same. - -
210. Maple sugar and maple sirup, four cents per pound; glu-
cose or grape sugar, one and one-half cents per pound; sugar
cane in its natural state, or annanufactured, twenty per cen-
tum ad Valorem. - -
211. Saccharine, one dollar and fifty cents per pound and ten
per centum ad valorem.
212. Sugar candy and all confectionery not specially provided
for in this Act, valued at fifteen cents per pound or less, and on
sugars after being refined, when tinctured, colored, or in any
way adulterated, four cents per pound and fifteen per centum
ad valorem; valued at more than fifteen cents per pound, fifty
per centum ad valorem. The weight and the value of the im-
mediate coverings, other than the outer packing case or other
covering, shall be included in the dutiable weight and the value
of the merchandise.
Schedule F-Tobacco and Manufactures of.
213. Wrapper tobacco, and filler tobacco when mixed or
packed with more than fifteen per centum of wrapper tobacco,
and all leaf tobacco the product of two or more countries or de-
pendencies when mixed or packed together, if unstemmed, one
dollar and eighty-five cents per pound; if stemmed, two dollars
and fifty cents per pound; filler tobacco not specially provided
for in this Act, if unstemmed, thirty-five cents per pound; if
stemmed, fifty cents per pound.
214. The term wrapper tobacco as used in this Act means
that quality of leaf tobacco which is suitable for cigar wrap-
pers, and the term filler tobacco means all other leaf tobacco.
Collectors of customs shall not permit entry to be made, except
under regulations to be prescribed by the Secretary of the
Treasury, of any leaf tobacco, unless the invoices of the same
shall specify in detail the character of such tobacco, whether
wrapper or filler, its origin and quality. In the examination
for classification of any imported leaf tobacco, at least one bale,
box, or package in every ten and at least one in every invoice,
shall be examined by the appraiser or person authorized by law
to make such examination, and at least ten hands shall be eº-
amined in each examined bale, box, or package. .
TARIFF ACT, 1897. 35
215. All other tobacco, manufactured or unmanufactured,
not specially provided for in this Act, fifty-five cents per, pound.
216. Snuff and snuff flour, , manufactured of tobacco, ground
dry, or damp, and pickled, scented, or otherwise, of all descrip-
tions, fifty-five cents per pound.
217. Cigars, cigarettes, cheroots of all kinds, four dollars and
fifty cents per pound and twenty-five per centum ad valorem;
and paper cigars and cigarettes, including wrappers, shall be
subject to the same duties as are herein imposed upon cigars.
Schedule Gi-Agricultural Products and
- Provisions.
ANIMALS, LIVE:
218. Cattle, if less than one year old, two dollars per head;
all other cattle if valued at not more than fourteen dollars per
head, three dollars and seventy-five cents per head; if valued
at more than fourteen dollars per head, twenty-seven and one-
half pel centum ad valorem. -
219. Swine, one dollar and fifty cents per head.
220, Horses and mules, valued at one. hundred and fifty dol-
lars or less per head, thirty dollars per head; if valued at over
one hundred and fifty dollars, twenty-five per centum ad val-
OTODOl.
221. Sheep, one year old or over, one dollar and fifty cents
per head; less than one year old, seventy-five cents per head.
222. All other live animals, not specially provided for in this
Act, twenty per centum ad valorem. -
BREADSTUFFS AND FARINAGEOUs substancEs:
223. Barley, thirty cents per bushel of forty-eight pounds.
224. Barley-malt, forty-five cents per bushel of thirty-four
pounds. - *
225. Barley, pearled, patent, or hulled, two cents per pound.
226. Buckwheat, fifteen cents per bushel of forty-eight
pounds. *
227. Corn or maize, fifteen cents per bushel of fifty-six
pounds.
228. Corn meal, twenty cents per bushel of forty-eight
pounds.
229. Macaroni, Vermicelli, and all similar preparations, one
and one-half cents per pound.
230. Oats, fifteen cents per bushel.
231. Oatmeal and rolled oats, one cent per pound; oat hulls,
ten cents per hundred pounds.
232. Rice, cleaned, two cents per pound; uncleaned rice, or "
rice frce of the outer hull and still having the inner cuticle on,
one and one-fourth cents per pound; rice flour, and rice meal,
and rice broken which will pass through a sieve known com-
mercially as number twelve wire sieve, one-fourth of one cent
per pound; paddy, or rice having the outer hull on, three-
fourths of one cent per pound.
233. Rye, ten cents per bushel; rye flour, one-half of one cent
per pound.
234. Wheat, twenty-five cents per bus rel.
235. Wheat flour, twenty-five per centum ad valorem.
86 F. B. VANDEGRIFT & Co.
DAIRY PRODUCTS:
236. Butter, and substitutes therefor, six cents per pound.
237. Cheese, and substitutes therefor, six cents per pound.
238. Milk, fresh, two cents per gallon.
239. Milk, preserved or condensed, or sterilized by heating or
other processes, including weight of immediate coverings, two
cents per pound; sugar of milk, five cents per pound.
FARM AND FIELD PRODUCTS:
240. Beans, forty-five cents per bushel of sixty pounds.
241. Beans, pease, and mushrooms, prepared or preserved, in
tins, jars, bottles, or similar packages, two and one-half cents
per pound, including the weight of all tins, jars, and other im-
mediate coverings; all vegetables, prepared or preserved, in-
cluding pickles and sauces of all kinds, not specially provided
for in this Act, and fish paste or sauce, forty per centum ad
valorem. *
242. Cabbages, three cents each.
243. Cider, five cents per gallon. - -
244. Eggs, not specially provided for in this Act, five cents per
dozen.
245. Eggs, yolk of, twenty-five per centum ad valorem; albu-
men, egg or blood, three cents per pound; dried blood, when
soluble, one and one-half cents per pound.
246. Hay, four dollars per ton.
247. Honey, twenty cents per gallon.
248. Hops, twelve cents per pound; hop extract and lupulin,
fifty per centum ad Valorem.
249. Onions, forty cents per buslel; garlic, one cent per
pound. A
250. Pease, green, in bulk or in barrels, sacks, or similar
packages, and seed pease, forty cents per bushel of sixty
pounds; pease, dried, not specially provided for, thirty cents per
bushel; split pease, forty cents per bushel of sixty pounds;
pease in cartons, papers, or other small packages, one cent per
pound.
251. Orchids, palms, dracaenas, crotons and azaleas, tulips,
hyacinths, narcissi, jonquils, lilies, lilies-of-the-Valley, and all
other bulbs, bulbous roots, or corms, which are cultivated for
their flowers, and natural flowers of all kinds, preserved or .
fresh, suitable for decorative purposes, twenty-five per centum
ad valorem.
252. Stocks, cuttings or seedlings of Myrobolan plum, Mahaleb
or Mazzard cherry, three years old or less, fifty cents per
thousand plants and fifteen per centum t d valorem; stocks, cut-
tings, or seedlings of pear, apple, quince and the St. Julien
plum, three years old or less, and evergreen seedlings, one dol-
lar per thousand plants and fifteen per centurn ad valorem;
rose plants, budded, grafted, or grown on their own roots, two
and oue-half cents each; stock, cuttings and feedlings of all
fruit and ornamental trees, deciduous and evergreen, shrubs
and vines, manetti, multiflora, and brier rose, and all trees,
shrubs, plants and vines, commonly known as nursery or green-
house stock, not specially provided for in this Act, twenty-five
~er centum ad Valorem.
253. Potatoes, twenty-five cents per bushel of sixty pounds.
TARIFF ACT, 1897. 37
254. Seeds: Castor beans or seeds, twenty-five cents per
bushel of fifty pounds; flaxseed or linseed and other oil seeds
not special y provided for in this Act, twenty-five cents per
bushel of fifty-six pounds; poppy seed, fifteen cents per bushel;
but no drawback shall be allowed upon oil cake made from im-
ported seed, nor shall any allowance be made for dirt or other
impurities in any seed; seeds of all kinds not specially provided
for in this Act, thirty per centum ad Valorem.
255. Straw, one dollar and fifty cents per lon.
256. Teazles, thirty per centum ad valorem.
257. Vegetables in their natural state, not specially provided
for in this Act, twenty-five per centum ad valorem. -
FISEI:
258. Fish known or labeled as anchovies, sardines, Sprats,
brislings, sardels, or sardellen, packed in oil or otherwise, in
bottles, jars, tin boxes or cans, shall be dutiable as follows:
When in packages containing seven and one-half cubic inches
or less, one and one-half cents per bottle, jar, box or can; Con-
taining more than seven and one-half and not more than twen-
ty-one cubic inches, two and one-half cents per bottle, jar, box
or can; containing more than twenty-one and not more than
thirty-three cubic inches, five cents per bottle, jar, box or can;
containing more than thirty-three and not more than seventy
cubic inches, ten cents per bottle, jar, box or can; if in other
packages, forty per centum ad valorem. All other fish (except
shellfish), in tin packages, thirty per centum ad valorem; fish
in packages containing less than one-half barrel, and mot spe-
cially provided for in this Act, thirty per centum ad valorem.
259. Fresh-water fish not specially provided for in this Act,
one-fourth of one cent per pound. -
260. Herrings, pickled or salted, one-half of one cent per
pound; herrings, fresh, one-fourth of one cent per pound.
261. Fish, fresh, smoked, dried, salted, pickled, frozen, packed
in ice or otherwise prepared for preservation, not specially pro-
vided for in this Act, three-fourths of one cent per pound; fish,
skinned or boned, one and one-fourth cents per pound; mack-
erel, halibut or salmon, fresh, pickled or salted, one cent per
pound.
FRUITS AND, NUTS:
262. Apples, peaches, quinces, cherries, plums, and pears,
green or ripe, twenty-five cents per bushel; apples, peaches,
pears, and other edible fruits, including berries, when dried,
desiccated, evaporated or prepared in any manner, not specially
provided for in this Act, two cents per pound; berries, edible,
in their natural condition, one cent per quart; cranberries,
twenty-five per centum ad valorem.
263. Comfits, sweetmeats, and fruits preserved in sugar, mo–
lasses, spirits, or in their own juices, not specially provided for
in this Act, one cent per pound and thirty-five per centum ad
valorem; if containing over ten per centum of alcohol and not
specially provided for in this Act, thirty-five per centum ad
valorem and in addition two dollars and fifty cents per proof
gallon on the alcohol contained therein in excess of ten per
centum; jellies of all kinds, thirty-five per centum ad valorem;
38 F. B. VANDEGRIFT & Co.
pineapples preserved in their own juice, twenty-five per centum
ad Valorem.
264. Figs, plums, prunes, and prunelles, two cents per pound;
raisins and other dried grapes, two and one-half cents per
pound; dates, one-half of one cent per pound; currants, Zante
or other, two cents per pound; olives, green or prepared, in
bottles, jars, or similar packages, twenty-five cents per gallon;
in casks or otherwise than in bottles, jars, or similar packages,
fifteen cents per gallon.
265. Grapes in barrels or other packages, twenty cents per
cubic foot of capacity of barrels or packages.
266. Oranges, lemons, limes, grape fruit, shaddocks or pome-
los, one cent per pound. -
267. Orange peel or lemon peel, preserved, candied, or dried,
and cocoanut meat or copra desiccated, shredded, cut, , or sim-
iliarly prepared, two cents per pound; citron or citron peel, pre-
served, candied, or dried, four cents per pound.
268. Pineapples, in barrels and other packages, seven cents
per cubic foot of the capacity of barrels or packages; in bulk,
seven dollars per thousand.
Nuts:
269. Almonds, not shelled, four cents per pound; clear al-
monds, shelled, six cents per pound.
270. Filberts and walnuts of all kinds, not shelled, three cents
per pound; shelled, five cents per pound.
271. Peanuts or ground beans, unshelled, one-half of one cent
per pound; shelled, one cent per pound.
272. Nuts of all kinds, shelled or unshelled, not specially pro-
vided for in this Act, one cent per pound.
MEAT PRODUCTS:
273. Bacon and hams, five cents per pound.
274. Fresh beef, veal, mutton, and pork, two cents per pound.
275. Meats of all kinds, prepared or preserved, not specially
provided for in this Act, twenty-five per centum ad Valorem.
276. Extract of meat, not specially provided for in this Act,
thirty-five cents per pound; fluid extract of meat, fifteen cents
per pound, but the dutiable weight of the extract of meat and
of the fluid extract of meat shall not include the weight of the
package in which the same is imported.
277. Lard, two cents per pound.
278. Poultry, live, three cents per pound; dressed, five cents
per pound.
279. Tallow, three-fourths of one cent per pound; wool grease,
including that known commercially as degras or brown wool
grease, one-half of one cent per pound. -
MISCELLANEOUS PRODUCTS:
280. Chicory-root, raw, dried, or undried, but unground, one
cent per pound; chicory root, burnt or roasted, ground or granu-
lated, or in rolls, or otherwise prepared, and not specially pro-
vided for in this Act, two and one-half cents per pound.
281. Chocolate and cocoa, prepared or manufactured, not spe-
cially provided for in this Act, valued at not over fifteen cents
per pound, two and one-half cents per pound; valued above fif-
teen and not above twenty-four cents per pound, two and one-
TARIFF ACT, 1897. 39
half cents per pound and ten per centum ad valorem; valued
above twenty-four and not above thirty-five cents per pound,
five cents per pound and ten per centum ad valorem; valued
above thirty-five cents per pound, fifty per centum ad valorem.
The weight and value of all coverings, other than plain
wooden, shall be included in the dutiable weight and value of
the foregoing merchandise; powdered cocoa, unsweetened, five
cents per pound.
282. Cocoa-butter or cocoa-butterine, three and one-half cents
per pound. - - . -
283. Dandelion-root and acorns prepared, and articles used as
coffee, or as substitutes for coffee not specially provided for in
this Act, two and one-half cents per pound. .
284. Salt in bags, sacks, barrels, or other packages, twelve
cents per one hundred pounds; in bulk, eight cents per one hun-
dred pounds: Provided. That imported salt in bond may be
used in curing fish taken by vessels licensed to engage in the
fisheries, and in curing fish on the shores of the navigable
waters of the United States, under such regulations as the
Secretary of the Treasury shall prescribe; and upon proof that
the salt has been used for either of the purposes stated in this
proviso, the duties on the same shall be remitted: Prozyżded
/iurther, That exporters of meats, whether packed or smoked,
which have been cured in the United States with imported salt,
shall, upon satisfactory proof, under such regulations as the
Secretary of the Treasury shall prescribe, that such meats have
been cured with imported salt, have refunded to them from the
Treasury the duties paid on the salt so used in curing such ex-
ported meats, -in amounts not less than one hundred dollars.
285. Starch, including all preparations, from whatever sub-
stance produced, fit for use as starch, one and one-half cents
per pound.
286. Dextrine, burnt starch, gum substitute, or British gum,
two cents per pound. .
287. Spices: Mustard, ground or prepared, in bottles or other-
Wise, ten cents per pound; capsicum or red pepper, or cayenne
pepper, two and one-half cents per pound; sage, One cent per
pound; spices not specially provided for in this Act, three cents
per pound. - - -
288. Vinegar, seven and one-half cents per proof gallon. The
standard proof for vinegar shall be taken to be that strength
which requires thirty-five grains of bicarbonate of potash to
neutralize one ounce troy of vinegar.
Schedule H–Spirits, Wines and Other Beverages.
- SPIRITS: , -
289. Brandy and other spirits manufactured or distilled from
grain or other materials, and not specially provided for in this
Act, two dollars and twenty-five cents per proof gallon.
290. Each and every gauge or wine gallon of measurement
shall be counted as at least one proof gallon; and the standard
for determining the proof of brandy and other spirits or liquors
of any kind imported shall be the same as that which is de-
fined in the laws relating to internal revenue: Proz/ided, That
it shall be lawful for the Secretary of the Treasury, in his dis-
40 F B. VANDEGRIFT & CO.
cretion, to authorize the ascertainment of the proof of wines,
cordials, or other liquors, by distillation or otherwise, in cases
where it is impracticable to ascertain such proof by the means
prescribed by existing law or regulations: And provided fur-
ther, That any brandy or other Spirituous or distilled liquors
imported in any sized cask, bottle, jug, or other package, of or
from any country, dependency, or province under whose laws
similar sized casks, bottles, jugs, or other packages of distilled
spirits, Wine, or other beverage put up or filled in the United
States are denied entrance into such country, dependency, or
province, shall be forfeited to the United States; and any
brandy or other spirituous or distilled liquor imported in a cask
of less capacity than ten gallons from any country shall be for-
feited to the United States.
291. On all compounds or preparations of which distilled
spirits are a component part of chief value, there shall be
levied a duty not less than that imposed upon distilled spirits.
292. Cordials, liqueurs, arrack, absinthe, kirschwasser, rata-
fia, and other spirituous beverages or bitters of all kinds, con-
taining spirits, and not specially provided for in this Act, two
dollars and twenty-five cents per proof gallon.
293. No lower rate or amount of duty shall be levied, collected
and paid on brandy, spirits, and other spirituous beverages
than that fixed by law for the description of first proof; but
it shall be increased in proportion for any greater strength
than the strength of first proof, and all imitations of brandy
or spirits or wines imported by any names whatever shall be
subject to the highest rate of duty provided for the genuine
articles respectively intended to be represented, and in no case
less than one dollar and fifty cents per gallon.
294. Bay rum or bay water, whether distilled or compounded,
of first proof, and in proportion for any greater strength than
first proof, one dollar and fifty cents per gallon.
WINES:
295. Champagne and all other sparkling wines, in bottles con-
taining each not more than one quart and more than-one pint,
eight dollars per dozen; containing not more than one pint each
and Inore than one-half pint, four dollars per dozen; contain-
ing one-half pint each or less, two dollars per dozen; in bottles
or other vessels containing more than one quart each, in addi-
tion to eight dollars per dozen bottles, on the quanitity in ex-
cess of one quart, at the rate of two dollars and fifty cents
per gallon; but no separate or additional duty shall be levied
on the bottles.
296. Still wines, including ginger wine or ginger cordial and
vermuth, in casks or packages other than bottles or jugs, if
containing fourteen per centum or less of absolute alcohol,
forty cents per gallon; if containing more than fourteen per
centum of absolute alcohol, fifty cents per gallon. In bottles or
jugs, per case of one dozen bottles or jugs, containing each not
more than one quart and more than one pint, or twenty-four
bottles or jugs containing each not more than one pint, one
dollar and sixty cents per case; and any excess beyond these
quantities found in such bottles or jugs shall be subject to a
duty of five cents per pint or fractional part thereof, but no
separate or additional duty shall be assessed on the bottles or
TARIFF ACT, 1897. , 41
jugs: Provided, That any wines, ginger cordial, or vermuth
imported containing more than twenty-four per centum of al-
cohol shall be classed as spirits and pay duty accordingly: And
provided further, That there shall be no constructive or other
allowance for breakage, leakage, or damage on wines, liquors,
cordials, or distilled spirits. Wines, cordials, brandy, and
other spirituous liquors including bitters of all kinds, and bay
rum or bay water, imported in bottles or jugs, shall be packed
in packages containing not less than one dozen bottles or jugs
in each package, or duty, shall be paid as if such package con-
tained at least one dozen bottles or jugs, and in addition there-
to, duty shall be collected on the bottles or jugs at the rates
which would be chargeable thereon if imported empty. The .
percentage of alcohol in wines and fruit juices shall be deter-
mined in such manner as the Secretary of the Treasury shall
by regulation prescribe.
297. Ale, porter, and beer, in bottles or jugs, forty cents per
gallon, but no separate or additional duty shall be assessed on
the bottles or jugs; otherwise than in bottles or jugs, twenty
cents per gallon. -
298. Malt extract, fluid, in casks, twenty cents per gallon; in
bottles or jugs, forty cents per gallon; solid or condensed, forty
per centum ad valorem.
299. Cherry juice and prune juice, or prune wine, and other
fruit juices not specially provided for in this Act, containing
no alcohol or not more than eighteen per centum of alcohol,
sixty cents per gallon; if Čontaining more than eighteen per
centum of alcohol, sixty cents per gallon, and in addition there-
to two dollars and seven cents per proof gallon on the alcohol
contained therein.
300. Ginger ale, ginger beer, lemonade, soda water, and other
similar beverages containing no alcohol, in plain green or col-
ored, molded or pressed, glass bottles, containing each not
more than three-fourths of a pint, eighteen cents per dozen;
containing more than three-fourths of a pint each and not more
than one and one-half pints, twenty-eight cents per dozen; but
no separate or additional duty shall be assessed on the bottles;
if imported otherwise than in plain green or colored, molded or
pressed, glass bottles, or in such bottles containing more than
one and one-half pints each, fifty cents per gallon and in addi-
tion thereto, duty shall be collected on the bottles, cr other cov-
erings, at the rates which would be chargeable thereon if im-
ported empty.
301. All mineral waters and all imitations of natural mineral
waters, and all artificial mineral waters not specially provided
for in this Act, in green or colored glass bottles, containing not
more than one pint, twenty cents per dozen bottles. If contain-
ing more than one pint and not more than one quart, thirty
cents per dozen bottles. But no separate duty shall be assessed
upon the bottles. If imported otherwise than in plain green or
colored glass bottles, or if imported in such bottles containing
more than one quart, twenty-four cents per gallon, and in ad-
dition thereto duty shall be collected upon the bottles or other
covering at the same rates that would be charged thereon if
imported empty or separately.
42 F. B. VANDEGRIFT & CO.
Schedule I—Cotton Manufactures.
302. Cotton thread and carded yarn, warps or Warp yarn, in
singles, whether on beams or in bundles, skeins or cops, or in
any other form, except spool thread of cotton hereinafter pro-
vided for, not colored, bleached, dyed, or advanced beyond the
condition of singles by grouping or twisting two or more single
yarns together, three cents per pound on all numbers up to and
including number fifteen, one-fifth of a cent per number per
pound on all numbers exceeding number fifteen and up to and
including number thirty, and one-fourth of a cent per number
per pound on all numbers exceeding number thirty; colored,
bleached, dyed, combed or advanced beyond the condition of
singles by grouping or twisting two or more single yarns to-
gether, whether on beams, or in bundles, skeins or cops, or in
any other form, except spool thread of cotton hereinafter pro-
vided for, six cents per pound on all numbers up to and in-
cluding number twenty, and on all numbers exceeding number
twenty and up to number eighty, one-fourth of one cent per
number per pound; on number eighty and above, three-tenths
of One cent per number per pound; cotton card laps, roping,
Silver or roving, forty-five per centum ad valorem.
303. Spool thread of cotton, including crochet, darning, and
embroidery cottons on spools or reels, containing on each spool
or reel not exceeding one hundred yards of thread, six cents per
dozen; exceeding one hundred yards on each spool or reel, for
every additional hundred yards or fractional part thereof in ex-
cess of one hundred, six cents per dozen spools or reels; if
otherwise than on spools or reels, one-half of one cent for each
one hundred yards or fractional part thereof: Provided, That
in no case shall the duty be assessed upon a less number of
yards than is marked on the spools or reels.
304. Cotton cloth not bleached, dyed, colored, stained, paint-
ed, or printed, and not exceeding fifty threads to the square
inch, counting the warp and filling, one cent per square yard;
if bleached, one and one-fourth cents per square yard; if dyed,
colored, stained, painted, or printed, two cents per square yard.
305. Cotton cloth, not bleached, dyed, colored, stained, paint-
ed, or printed, exceeding fifty and not exceeding one hundred
threads to the square inch, counting the Warp and filling, and
not exceeding six square yards to the pound, one-and one-fourth
cents per square yard; exceeding six and not exceeding nine
square yards to the pound, one and one-half cents per square
yard; exceeding nine square yards to the pound, one and three-
fourths cents per square yard; if bleached, and not exceeding
six square yards to the pound, one and one-half cents per
square yard; exceeding six and not exceeding nine square
yards to the pound, one and three-fourths cents per square
yard; exceeding nine square yards to the pound, two and one-
fourth cents per square yard, if dyed, colored, stained, painted, or
printed, and not exceeding six square yards to the pound, two
and three-fourths cents per square yard; exceeding six and not
exceeding nine square yards to the pound, three and one-fourth
cents per square yard; exceeding nine square yards to the
pound, three and one-half cents per square yard: Provided,
That on all cotton cloth not exceeding one hundred threads to
the square inch, counting the warp and filling, not bleached,
TARIFF ACT, 1897. 43
dyed, colored, stained, painted, or printed, valued at over seven
cents per square yard, twenty-five per contum ad valorem;
bleached, valued at over nine cents per square yard, twenty-five
per centum ad valorem; and dyed, colored, stained, painted, or
printed, valued at over twelve cents per square yard, there
shall be levied, collected, and paid a duty of thirty per centum
ad Valorem.
306. Cotton cloth, not bleached, dyed, colored, stained, paint-
ed, or printed, exceeding one hundred and not exceeding one
hundred and fifty threads to the square inch, counting the warp
and filling, and not exceeding four square yards to the pound,
One and One-half cents per square yard; exceeding four and not
exceeding six square yards to the pound, two cents per square
yard; exceeding six and not exceeding eight square yards to the
pound, two and one-half cents per square yard; exceeding eight
Square yards to the pound, two and three-fourths cents per
Square yard; if bleached, and not exceeding four square yards
to the pound, two and one-half cents per square yard; exceed-
ing four and not exceeding six square yards to the pound, three
cents per square yard; exceeding six and not exceeding eight
square yards to the pound, three and one-half cents per square
yard; exceeding eight square yards to the pound, three and
three-fourths cents per square yard; if dyed, colored, stained,
painted, or printed, and not exceeding four square yards to the
pound, three and one-half cents per square yard; exceeding.
four and not exceeding six square yards to the pound, three
and three-fourths cents per square yard; exceeding six and
not exceeding eight square yards to the pound, four and one-
fourth cents per square yard; exceeding eight square yards to
the pound, four and one-half cents per square yard: Proz/ided,
That in all cotton cloth exceeding one hundred and not exceed-
ing One hundred and fifty threads to the square inch, counting
the Warp and filling, not bleached, dyed, colored, stained, paint-
ed, or printed, valued at over nine cents per square yard, thirty
per centum ad valorem; bleached, valued at over eleven cents
per square yard, thirty-five per centum ad valorem; dyed, col-
ored, stained, painted, or printed, valued at over twelve and
one-half cents per square yard, there shall be levied, collected,
and paid a duty of thirty-five per centum ad valorem. *
307. Cotton cloth not bleached, dyed, colored, stained, paint-
ed, or printed, exceeding one hundred and fifty and not ex-
ceeding two hundred threads to the square inch, counting the
warp and filling, and not exceeding three and one-half square
yards to the pound, two cents per square yard; exceeding three
and one-half and not exceeding four and one-half square yards
to the pound, two and three-fourths cents per square yard; ex-
ceeding four and one-half and not exceeding six square yards
to the pound, three cents per square yard; exceeding six square
yards to the pound, three and one-half cents per square yard;
if bleached, and not exceeding three and one-half square yards
to the pound, two and three-fourths cents per square yard; ex-
ceeding three and one-half and not exceeding four and one-half
square yards to the pound, three and one-half cents per square
yard; exceeding four and one-half and not exceeding six square
yards to the pound, four cents per square yard; exceeding six
square yards to the pound, four and one-fourth cents per
square yard; if dyed, colored, stained, painted, or printed, and
44 F. B. VANDEGRIFT & CO.
not exceeding three and one-half square yards to the pound,
four and one-fourth cents per square yard; exceeding three and .
one-half and not exceeding four and one-half square yards to
the pound, four and one-half cents per square yard; exceeding
four and one-half and not exceeding six square yards to the
pound, four and three-fourths cents per square yard; exceed-
ing six square yards to the pound, five cents per square yard:
Provided, That on all cotton cloth exceeding one hundred and
fifty and not exceeding two hundred threads to the square inch,
counting the warp and filling, not bleached, dyed, colored,
stained, painted, or printed, valued at over ten cents per square
yard, thirty-five per centum ad valorem; bleached, valued at
over twelve cents per square yard, thirty-five per centum ad
valorem; dyed, colored, stained, painted, or printed, valued at
over twelve and one-half cents per square yard, there shall be
levied, collected, and paid a duty of forty per centum ad
valorem.
308. Cotton cloth not bleached, dyed, colored, stained, paint- .
ed, or printed, exceeding two hundred and not exceeding. three
hundred threads to the square inch, counting the warp and fill-
ing, and not exceeding two and one-half square yards to the
pound, three and one-half cents per square yard; exceeding two
and one-half and not exceeding three and one-half square yards
to the pound, four cents per square yard; exceeding three and
one-half and not exceeding five square yards to the pound, four
and one-half cents per square yard; exceeding five square yards
to the pound, five cents per square yard; if bleached, and not
exceeding two and one-half square yards to the pound, four
and one-half cents per square yard; exceeding two and one-half
and not exceeding three and one-half square yards to the
pound, five cents per square yard; exceeding three and one-
half and not exceeding five square yards to the pound, five and
one-half cents per square yard; exceeding five square yards to
the pound, six cents per square yard; if dyed, colored, stained,
painted, or printed, and not exceeding three and one-half
square yards to the pound, six and one-fourth cents per square
yard; exceeding three and one-half square yards to the pound,
seven cents per square yard: Proz/ided, That on all such cot-
ton cloths not bleached, dyed, colored, stained, painted, or
'printed, valued at over twelve and one-half cents per square
yard; bleached, valued at over fifteen cents per square yard;
and dyed, colored, stained, painted, or printed, valued at over
seventeen and one-half cents per square yard, there shall be
levied, collected, and paid a duty of forty per centum ad
valorem. -
309. Cotton cloth not bleached, dyed, colored, stained, paint-
ed, or printed, exceeding three hundred threads to the square
inch, counting the warp and filling, and not exceeding two
square yards to the pound, four cents per square yard; exceed-
ing two and not exceeding three square yards to the pound,
four and one-half cents per square yard; exceeding three and
not exceeding four square yards to the pound, five cents per
square yard; exceeding four square, yards to the pound, five
and one-half cents per square yard; if bleached and not exceed-
ing two square yards to the pound, five cents per square yard;
exceeding two and not exceeding three square yards to the
pound, five and one-half cents per square yard; exceeding three
*
TARIFF ACT, 1897. 45
and not exceeding four square yards to the pound, six cents per
square yard; exceeding four square yards to the pound, six.
and one-half cents per square yard; if dyed, colored, stained,
painted, or printed, and not exceeding three square yards to the
pound, six and one-half cents per square yard; exceeding three
square yards to the pound, eight cents per square yard: Pro-
vided. That on all such cotton cloths not bleached, dyed, col-
ored, stained, painted, or printed, valued at over fourteen cents
per square yard; bleached, valued at over sixteen cents per
Square yard; and’ dyed, colored, stained, painted, or printed,
valued at over twenty cents per square yard, there shall be
levied, collected, and paid a duty of forty per centum ad
Valorem.
310. The term cotton cloth, or cloth, wherever used in the
paragraphs of this schedule, unless otherwise specially pro-
vided for, shall be held to include all woven fabrics of cotton
in the piece or otherwise, whether figured, fancy, or plain, the
Warp and filling threads of which can be counted by unraveling
or other practicable means.
311. Cloth, composed of cotton or other vegetable fiber and
silk, whether known as silk-striped sleeve linings, silk stripes,
or otherwise, of which cotton is the component material of
chief value, eight cents per square yard and thirty per centum
ad valorem: Provided, That no such cloth shall pay a less
rate of duty than fifty per centum ad valorem. Cotton cloth,
filled or coated, three cents per square yard and twenty per
centum ad valorem.
312. Handkerchiefs or mufflers composed of cotton, whether
in the piece or otherwise and whether finished or unfinished, if
not hemmed, or hemmed only, shall pay the same rate of duty
on the cloth contained therein as is imposed on cotton cloth of
the same description, weight, and count of threads to the
square inch; but such handkerchiefs or mufflers shall not pay
a less rate of duty than forty-five per centum ad valorem. If
such handkerchiefs or mufflers are hemstitched, or imitation
hemstitched, or revered, or have drawn threads, they shall pay
a duty of ten per centum ad valorem in addition to the duty
hereinbefore prescribed, and in no case less than fifty-five per
centum ad Valorem; if such handkerchiefs or mufflers are em-
broidered in any manner, whether with an initial letter, mono-
gram, or otherwise, by hand or machinery, or are tamboured,
appliqued, or trimmed wholly or in part with lace or with
tucking or insertion, they shall not pay a less rate of duty than
sixty per centum ad valorem.
313. Cotton cloth in which other than the ordinary warp and
filling threads have been introduced in the process of weaving
to form a figure, whether known as lappets or otherwise, and
whether unbleached, bleached, dyed, colored, stained, painted,
or printed, shall pay, in addition to the duty herein provided for
other cotton cloth of the same description, or condition, weight,
and count of threads to the square inch, one cent per square
yard if valued at not more than seven cents per square yard,
and two cents per square yard if valued at more than seven
cents per square yard. -
314. Clothing, ready-made, and articles of wearing apparel of
every description, including neck-ties or neckWear composed of
cotton or other vegetable fiber, or of which cotton or other
46 F. B. VANDEGRIFT & CO.
vegetable fiber is the component material of Chief value, made
up or manufactured, wholly or in part, by the tailor, seam-
stress or manufacturer, and not otherwise provided for in this
Act, fifty per centum ad valorem: Provided, That any out-
side garment provided for in this paragraph having india-
rubber as a component material shall pay a duty of fifteen
cents per pound and fifty per centum ad valorem. -
315. Plushes, welvets, velveteens, corduroys, and all pile fab-
rics, cut or uncut; any of the foregoing composed of cotton or
other vegetable fiber, not bleached, dyed, colored, stained,
painted, or printed, nine cents per square yard and twenty-five
per centum ad valorem; if bleached, dyed, colored, stained,
painted, or printed, twelve cents per square yard and twenty-
five per centum ad valorem: Proz/ided, That corduroys com-
posed of cotton or other vegetable fiber, weighing seven ounces
or over per square yard, shall pay a duty of eighteen cents per-
square yard and twenty-five per centum ad valorem: Provided
further, That manufactures or articles in any form including
such as are commonly known as bias dress facings or skirt
bindings, made or cut from plushes, velvets, velveteens, cord-
uroys, or other pile fabrics composed of cotton or other vege-
table fiber, shall be subject to the foregoing rates of duty and
in addition thereto ten per centum ad valorem: Proz/ided ſur-
ther, That none of the articles or fabrics provided for in this
paragraph shall pay a less rate of duty than forty-seven and
one-half per centum ad valorem. - *
316. Curtains, table covers, and all articles manufactured of
cotton chenille or of which cotton chenille is the component
material of chief value, fifty per centum ad valorem.
317. Stockings, hose and half-hose, made on knitting machines
or frames, composed of cotton or other vegetable fiber, and not
otherwise specially provided for in this Act, thirty per centum
ad Valorem. -
318. Stockings, hose and half-hose, selvedged, fashioned, nar-
rowed, or shaped wholly or in part by knitting machines or
frames, or knit by hand, including such as are commercially
known as seamless stockings, hose and half-hose, and clocked
stockings, hose and half-hose, all of the above composed of cot-
‘ton or other vegetable fiber, finished or unfinished, valued at
not more than one dollar per dozen pairs, fifty cents per dozen
pairs; valued at more than one dollar per dozen pairs, and not
more than one dollar and fifty cents per dozen pairs, sixty cents
per dozen pairs; valued at more than one dollar and fifty cents
per dozen pairs, and not more than two dollars per dozen pairs,
seventy cents per dozen pairs; valued at more than two dollars
per dozen pairs, and not more than three dollars per dozen
pairs, one dollar and twenty cents per dozen pairs; valued at
more than three dollars per dozen pairs and not more than five
dollars per dozen pairs, two dollars per dozen pairs; and in
addition thereto, upon all the foregoing, fifteen per centum ad
valorem; valued at ſmore than five dollars per dozen pairs, fifty-
five per centum ad Valorem.
319. Shirts and drawers, pants, vests, union suits, combina-
tion suits, tights, sweaters, corset covers and all underwear of
every description made wholly or in part on knitting machines
or frames, or knit by hand, finished or unfinished, not including
stockings, hose and half-hose, composed of cotton or other
TARIFF ACT, 1897. - 47
vegetable fiber, valued at not more than one dollar and fifty
cents per dozen, sixty cents per dozen and fifteen per centum
ad valorem; valued at more than one dollar and fifty cents per
dozen and not more than three dollars per dozen, one dollar and
ten cents per dozen, and in addition thereto fifteen per centum
ad valorem; valued at more than three dollars per dozen and
not more than five dollars. per dozen, one dollar and fifty cents
per dozen, and in addition thereto twenty-five per centum ad
valorem; valued at more than five dollars per dozen and not
more than seven dollars per dozen, one dollar and seventy-five
cents per dozen, and in addition thereto thirty-five per centum
ad valorem; valued at more than seven dollars per dozen and
not more than fifteen dollars per dozen, two dollars and twenty-
five cents per dozen, and in addition thereto thirty-five per cen-
tum ad valorem; valued above fifteen dollars per dozen, fifty
per centum ad valorem. t
320. Bandings, beltings, bindings, bone casings, cords, gar-
ters, lining for bicycle tires, ribbons, suspenders and braces,
tapes, tubing, and webs or webbing, any of the foregoing ar-
ticles made of cotton or other vegetable fiber, whether com-
posed in part of india-rubber or otherwise, and not embroidered
by hand or machinery, forty-five per centum ad valorem; spin-
dle banding, woven, braided or twisted lamp, stove, or candle
wicking made of cotton or other vegetable fiber, ten cents per
pound and fifteen per centum ad valorem; loom harness or
healds made of cotton or other vegetable fiber, or of which cot-
ton or other vegetable fiber is the component material of chief
value, fifty cents per pound and twenty-five per centum ad
valorem; boot, shoe, and corset lacings made of cotton or other
vegetable fiber, twenty-five cents per pound and fifteen per cen-
tum ad valorem; labels, for garments or other articles com-
posed of cotton or other vegetable fiber, fifty cents per pound
and thirty per centum ad Valorem.
321. Cotton table damask, forty per centum ad valorem; cot-
ton duck, thirty-five per centum ad valorenn.
322. All manufactures of cotton not specially provided for in
this Act, forty-five per centum ad valorem.
Schedule J-Flax, Hemp, and Jute, Manufac-
tures of.
323. Flax straw, five dollars per ton.
324. Flax, not hackled or dressed, one cent per pound.
325. Flax, hackled, known as “dressed line,” three cents per
pound. -
326. Tow of flax, twenty dollars per ton. .
327. EIemp, and tow of hemp, twenty dollars per ton; hemp,
hackled, known as “line of hemp,” forty dollars per ton.
328. Single yarns made of jute, not finer than five lea or num-
ber, one cent per pound and ten per centum ad Valorem; if
finer than five lea or number, thirty-five per centum ad
valorem.
329. Cables and cordage, composed of istle, Tampico fiber,
manila, sisal grass or sunn, or a mixture of these or any of
them, one cent per pound; cables and cordage made of hemp,
tarred or untarred, two cents per pound.
48 F. B. VANDEGRIFT & CO.
330. Threads, twines, or cords, made from yarn not finer than
five lea or number, composed of flax, hemp, or ramie, or of
which these substances or either of them is the component ma-
terial of chief value, thirteen cents per pound; if made from
yarn finer than five lea or number, three-fourths of one cent per
pound additional for each lea or number, or part of a lea or
number, in excess of five. tº
331. Single yarns in the gray, made of flax, hemp, or ramie, or
a mixture of any of them, not finer than eight lea or number,
seven cents per pound; finer than eight lea or number and not
finer than eighty lea or number, forty per centum ad valorem;
single yarns, made of flax, hemp, or ramie, or a mixture of any
of them, finer than eighty lea or number, fifteen per centum ad
valorem. - -
332. Flax gill netting, nets, webs, and seines shall pay the
same duty per pound as is imposed in this schedule upon the
thread, twine, or cord of which they are made, and in addition
thereto twenty-five per centum ad valorem.
333. Floor mattings, plain, fancy or figured, manufactured
from Straw, round or split, or other vegetable substances, not
otherwise provided for, including what are commonly known as
Chinese, Japanese, and India straw mattings, valued at not ex-
ceeding ten cents per square yard, three cents per square yard;
valued at exceeding ten cents per square yard, seven cents per
square yard and twenty-five per centum ad valorem.
334. Carpets, carpeting, mats and rugs made of flax, hemp,
jute, or other vegetable fiber (except cotton), valued at not ex-
ceeding fifteen cents per square yard, five cents per square
yard and thirty-five per centum ad valorem; valued above fif-
teen cents per square yard, ten cents per square yard and
thirty-five per centum ad valorem.
335. Hydraulic hose, made in whole or in part of flax, hemp,
ramie, or jute, twenty cents per pound. -
336. Tapes composed wholly or in part of flax, woven with or
without metal threads, on reels, spools, or otherwise and de-
signed expressly for use in the manufacture of measuring
tapes, forty per centum ad Valorem.
337. Oilcloth for floors, stamped, painted, or printed, includ-
ing linoleum or corticene, figured or plain, and all other oil-
cloth (except silk oilcloth) under twelve feet in width not spe-
cially provided for herein, eight cents per square yard and fif-
teen per centum ad valorem; oilcloth for floors and linoleum
or corticene, twelve feet and over in width, inlaid linoleum or
corticene, and cork carpets, twenty cents per square yard and
twenty per centum ad valorem; waterproof cloth, composed of
cotton or other vegetable fiber, whether composed in part of
india-rubber or otherwise, ten cents per square yard and
twenty per centum ad Valorem.
338. Shirt collars and cuffs, composed of cotton, forty-five
cents per dozen pieces and fifteen per centum ad valorem; com-
posed in whole or in part of linen, forty cents per dozen pieces
and twenty per centum ad Valorem.
339. Laces, lace window curtains, tidies, pillow shams, bed
sets, insertings, flouncings, and other lace articles; handker-
chiefs, napkins, wearing apparel, and other articles, made
wholly or in part of lace, or in imitation of lace; nets or net-
tings, veils and veilings, etamines, vitrages, neck rufflings,
TARIFF ACT, 1897. 49
ruchings, tuckings, flutings, and quillings; embroideries and all
trimmings, including braids, edgings, insertings, flouncings, gal-
loons, gorings, and bands; wearing apparel, handkerchiefs, and
other articles or fabrics embroidered in any manner by hand or
machinery, whether with a letter, monogram, or otherwise;
tamboured or appliqued articles, fabrics or wearing apparel;
hemstitched or tucked flouncings or skirtings, and articles made
wholly or in part of rufflings, tuckings, or ruchings; all of the
foregoing, composed wholly or in chief value of flax, cotton, or
other vegetable fiber, and not elsewhere specially provided for
in this Act, whether composed in part of india rubber or other-
wise, sixty per centum ad valorem: Provided, That no wear-
ing apparel or other article or textile fabric, when embroidered
by hand or machinery, shall pay duty at a less rate than that
imposed in any schedule of this Act upon any embroideries of
the materials of which such embroidery is composed.
340. Lace window curtains, pillow shams, and bed sets, fin-
ished or unfinished, made on the Nottingham lace-curtain ma-
chine or on the Nottingham warp machine, and composed of
cotton or other vegetable fiber, when counting five points or
spaces between the warp threads to the inch, one cent per
square yard; when counting more than five such points or
spaces to the inch, one-half of one cent per square yard in ad-
dition for each such point or space to the inch in excess of five;
and in addition thereto, on all the foregoing articles in this
paragraph, twenty per centum ad Valorem; Provided, That
none of the above-named articles shall pay a less rate of duty
than fifty per centum ad Valorem.
341. Plain woven fabrics of single jute yarns, by whatever
name known, not exceeding sixty inches in width, weighing not
less than six ounces per square yard and Inot exceeding thirty
threads to the square inch, counting the warp and filling, five-
eighths of one cent per pound and fifteen per centum ad val-
orem; if exceeding thirty and not exceeding fifty-five threads
to the square inch, counting the warp and filling, seven-eighths
of one cent per pound and fifteen per centum ad Valorem.
342. All pile fabrics of which flax is the component material
of chief value, sixty per centum ad valorem.,
343. Bags or sacks made from plain woven fabrics, of single
jute yarns, not dyed, colored, stained, painted, printed, or
bleached, and not exceeding thirty threads to the square inch,
counting the warp and filling, seven-eighths of one cent per
pound and fifteen per centum ad Valorem.
344. Bagging for cotton, gunny cloth, and similar fabrics,
suitable for covering cotton, composed of single yarns made of
jute, jute butts, or hemp, not bleached, dyed, colored, stained,
painted, or printed, not exceeding sixteen threads to the square
inch, counting the warp and filling, and weighing not less than
fifteen ounces per square yard, six-tenths of ( Ine cent per square
yard.
345. Handkerchiefs composed of flax, hemp, or ramie, or of
which these substances, or either of them, is the component
material of chief value, whether in the piece or otherwise, and
whether finished or unfinished, not hemmed or hemmed only,
fifty per centum ad valorem; if hemstitched, or imitation hem-
stitched, or revered, or with drawn threads, but not embroid-
ered or initialed, fifty-five per centum ad Valorem. r
50 F. B. VANDEGRIFT & Co.
346. Woven fabrics or articles not specially provided for in
this Act, composed of flax, hemp, or ramie, or of which these
substances or either of them is the component material or chief
value, weighing four and one-half ounces or more per square
yard, when containing not more than sixty threads to the
square inch, counting the warp and filling, one and three-
fourths cents per square yard; containing more than sixty and
not more than one hundred and twenty threads to the square
inch, two and three-fourths cents per square yard; containing
more than One hundred and twenty and not more than one hun-
dred and eighty threads to the square inch, six cents per square
yard; containing more than one hundred and eighty threads to
the square inch, nine cents per square yard, and in addition
thereto, on all the foregoing, thirty per centum ad valorem:
Provided, That none of the foregoing articles in this para-
graph shall pay a less rate of duty than fifty per centum ad
valorem. Woven fabrics of flax, hemp, or ramie, or of which
these substances or either of them is the component material
of chief value, including such as is known as shirting cloth,
weighing less than four and one-half ounces per square yard
and containing more than one hundred threads to the square
inch, counting the warp and filling, thirty-five per centum ad
Valorem.
347. All manufactures of flax, hemp, ramie, or other vege-
table fiber, or of which these substances, or either of them, is
the component material of chief value, not specially provided
for in this Act, forty-five per centum ad valorem.
Schedule K.—Wool and Manufactures of Wool.
348. All wools, hair of the camel, goat, alpaca, and other like
animals shall be divided, for the purpose of fixing the duties to
be charged thereon, into the three following classes:
349. Class one, that is to say, merino, mestiza, metz, or metis
wools, or other wools of Merino blood, immediate or remote,
Down clothing wools, and wools of like character with any of
the preceding, including Bagdad wool, China lamb’s wool, Cas-
tel Branco, Adrianople skin wool or butcher’s wool, and such
as have been heretofore usually imported into the United
States from Buenos Ayres, New Zealand, Australia, Cape of
Good Hope, Russia, Great Britain, Canada, Egypt, Morocco,
and elsewhere, and all wools not hereinafter included in
classes two and three.
350. Class two, that is to say, Leicester, Cotswold, Lincoln-
shire, Down combing wools, Canada long wools, or other like
combing wools of English blood, and usually known by the
terms herein used, and also hair of the camel, Angora goat,
alpaca, and other like animals.
351. Class three, that is to say, Donskoi, native South Amer-
ican, Cordova, Valparaiso, native Smyrna, Russian camel's
hair, and all such wools of like character as have been here-
tofore usually imported into the United States from Turkey,
Greece, Syria, and elsewhere, excepting improved wools here-
inafter provided for. - -
352 The standard samples of all Wools which are now or may
be hereafter deposited in the principal custom-houses of the
United States, under the authority of the Secretary of the
TARIFF ACT, 1879. 51
*
Treasury, shall be the standards for the classification of Wools
under this Act, and the Secretary of the Treasury is authorized
to renew these standards and to make such additions to them
from time to time as may be required, and he shall cause to be
deposited like standards in other custom-houses of the United
States when they may be needed.
353. Whenever wools of class three shall have been improved
by the admixture of Merino or English blood, from their pres-
ent character as represented by the standard samples now or
hereafter to be deposited in the principal custom-houses of the
United States, such improved wools shall be classified for duty
either as class one or as class two, as the case may be.
354. The duty on Wools of the first class which shall be im-
ported washed shall be twice the amount of the duty to which
they would be subjected if imported unwashed; and the duty
on wools of the first and second classes which shall be imported
scoured shall be three times the duty to which they would be
subjected if imported unwashed. The duty on wools of the
third class, if imported in condition for use in carding or spin-
ning into yarns, or which shall not contain more than eight
per cent of dirt or other foreign substance, shall be three times
the duty to which they would otherwise be subjected.
355. Unwashed wools shall be considered such as shall have
been shorn from the sheep without any cleansing; that is, in
their natural condition. Washed wools shall be considered such
as have been washed with water only on the sheep's back, or .
on the skin. Wools of the first and second classes washed in
any other manner than on the sheep's back or on the skin shall
be considered as scoured wool. • *
356. The duty upon wool of the sheep or hair of the camel,
Angora goat, alpaca, and other like animals, of class one and
class two, which shall be imported in any other than ordinary
condition, or which has been sorted or increased in value by the
rejection of any part of the original fleece, shall be twice the
duty to which it would be otherwise subject: Proz/ided, That
skirted wools as imported in eighteen hundred and ninety and
prior thereto are hereby excepted. The duty upon wool of the
sheep or hair of the camel, Angora goat, alpaca, and other like
animals of any class which shall be changed in its character or
condition for the purpose of evading the duty, or which shall be
reduced in value by the admixture of dirt or any other foreign
substance, shall be twice the duty to which it would be other-
wise subject. When the duty assessed upon any wool equals
three times or more that which would be assessed if said wool
was imported unwashed, the duty shall not be doubled on ac-
count of the wool being sorted. If any bale or package of wool
or hair specified in this Act invoiced or entered as of any speci-
fied class, or claimed by the importer to be dutiable as of any
specified class, shall contain any wool or hair subject to a
higher rate of duty than the class so specified, the whole bale
or package shall be subject to the highest rate of duty charge-
able on wool of the class subject to such higher rate of duty,
and if any bale or package be claimed by the importer to be
shoddy, mungo, flocks, wool, hair, or other material of any class
specified in this Act, and such bale contain any admixture of
any one or more of said materials, or of any other material, the
52 |F. B. VANDEGRIFT & CO
whole bale or package shall be subject to duty at the highest
rate imposed upon any article in said bale or package.
357. The duty upon all wools and hair of the first class shall
be eleven cents per pound, and upon all wools or hair of the
second class twelve cents per pound. ***
358. On wools of the third class and on camel's hair of the
third class the value whereof shall be twelve cents or less per
pound, the duty shall be four cents per pound.
359. On wools of the third class, and on camel's hair of the
third class, the value whereof shall exceed twelve cents per
pound, the duty shall be seven cents per pound.
360. The duty on wools on the skin shall be one cent less per
pound than is imposed in this schedule on other wools of the
same class and condition, the quantity and value to be ascer-
tained under such rules as the Secretary of the Treasury may
prescribe. -
361. Top waste, slubbing waste, roving waste, ring waste, and
garnetted waste, thirty cents per pound.
362. Shoddy, twenty-five cents per pound; noils, wool extract,
yarn waste, thread waste, and all other wastes composed
wholly or in part of wool, and not specially provided for in this
Act, twenty cents per pound.
363. Woolen rags, mungo, and flocks, ten cents per pound.
364. Wool and hair which have been advanced in any man-
ner or by any process of manufacture beyond the washed or
scoured condition, not specially provided for in this Act, shall
be subject to the same duties as are imposed upon manufac-
tures of wool not specially provided for in this Act.
365. On yarns made wholly or in part of wool, valued at not
more than thirty cents per pound, the duty per pound shall be
two and one-half times the duty imposed by this Act on one
pound of unwashed wool of the first class; valued at more than
thirty cents per pound, the duty per pound shall be three and
one-half times tile duty imposed by this Act on One pound of
unwashed wool of the first class, and in addition thereto, upon
all the foregoing, forty per centum ad valorem.
366. On cloths, knit fabrics, and all manufactures of every de-
scription made wholly or in part of wool, not specially provided
for in this Act, valued at not more than forty cents per pound,
the duty per pound shall be three times the duty imposed by
this Act on a pound of unwashed wool of the first class; valued
at above forty cents per pound and not above seventy cents per
pound, the duty per pound shall be four times the duty im-
posed by this Act on one pound of unwashed wool of the first
class, and in addition thereto, upon all the foregoing, fifty per
centum ad Valorem; valued at over seventy cents per pound,
the duty per pound shall be four times the duty imposed by this
Act on one pound of unwashed wool of the first class and fifty-
five per centum ad valorem. .
367. On blankets, and flannels for underwear composed
wholly or in part of wool, valued at not more than forty cents
per pound, the duty per pound shall be the same as the duty
imposed by this Act on two pounds of unwashed wool of the
first class, and in addition thereto thirty per centum ad val-
orem; valued at more than forty cents and not more than fifty
cents per pound, the duty per pound shall be three times the
duty imposed by this Act on one pound of unwashed wool of
TARIFF ACT, 1897. 53
the first class, and in addition thereto thirty-five per centum ad
valorem. On blankets composed wholly or in part of wool,
valued at more than fifty cents per pound, the duty per pound
shall be three times the duty imposed by this Act on one pound
of unwashed wool of the first class, and in addition thereto
forty per centum ad valorem. Flannels composed wholly or in
part of wool, valued at above fifty cents per pound, shall be
classified and pay the same duty as women’s and children’s
dress goods, coat linings, Italian cloths, and goods of similar
character and description provided by this Act: Provided,
That on blankets over three yards in length the same duties
shall be paid as on cloths.
368. On women's and children's dress goods, coat linings,
Italian cloths, and goods of similar description and character
of which the warp consists wholly of cotton or other vegetable
material with the remainder of the fabric composed wholly or
in part of wool, valued at not exceeding fifteen cents per square
yard, the duty shall be seven cents per square yard; valued at
more than fifteen cents per square yard, the duty shall be eight
cents per square yard; and in addition thereto on all the fore-
going valued at not above seventy cents per pound, fifty per
centum ad valorem; valued above seventy cents per pound,
fifty-five per centum ad valorem: , Proz/ided, That on all the
foregoing, weighing over four ounces per square yard, the duty
shall be the same as imposed by this schedule on cloths.
369. On women’s and children’s dress goods, coat linings,
Italian cloths, bunting, and goods of similar description or
character composed wholly or in part of wool, and not specially
provided for in this Act, the duty shall be eleven cents per
square yard; and in addition thereto on all the foregoing
valued at not above seventy cents per pound, fifty per centum
ad valorem; valued at above seventy cents per pound, fifty-five
per centum ad Valorem: Proz/ided, That on all the foregoing
weighing over four ounces per square yard, the duty shall be
the same as imposed by this schedule on cloths.
370. On clothing, ready-made, and articles of wearing apparel
of every description, including shawls whether knitted or
woven, and knitted articles of every description, made up or
manufactured wholly or in part, felts not woven and not spe-
cially provided for in this Act, composed wholly or in part of
wool, the duty per pound shall be four times the duty imposed
by this Act on One pound of unwashed wool of the first class,
and in addition thereto sixty per centum ad valorem.
371. Webbings, gorings, suspenders, braces, bandings, belt-
ings, bindings, braids, galloons, edgings, insertings, flouncings,
fringes, gimps, cords, cords and tassels, laces and other trim-
mings and articles made wholly or in part of lace, embroider-
ies and articles embroidered by hand or machinery, head nets,
netting, buttons or barrel buttons or buttons of other forms
for tassels or ornaments, and manufactures of wool ornamented
with beads or spangles of Whatever material composed, any of
the foregoing made of wool or of which wool is a component
material, whether composed in part of india-rubber or other-
wise, fifty cents per pound and sixty per centum ad valorem.
372. Aubusson, Axminster, moquette, and chenille carpets,
figured or plain, and all carpets or carpeting of like character
54 F. B. VANDEGRIFT & CO.
or description, sixty cents per square yard, and in addition
thereto forty per centum ad valorem. -
373. Saxony, Wilton, and Tournay velvet carpets, figured or
plain, and all carpets or carpeting of like character or descrip-
tion, sixty cents per square yard, and in addition thereto forty
per centum ad valorem.
374. Brussels carpets, figured or plain, and all carpets or car-
peting of like character or description, forty-four cents per
square yard, and in addition thereto forty per centum ad val-
OTeLOl. -
375. Velvet and tapestry velvet carpets, figured or plain,
printed on the warp or otherwise, and all carpets or carpeting
of like character or description, forty cents per square yard, and
in addition thereto forty per centum ad valorem.
376. Tapestry Brussels carpets, figured or plain, and all car-
pets or carpeting of like character or description, printed on the
warp or otherwise, twenty-eight cents per square yard, and in
addition thereto forty per centum ad valorem. -
377. Treble ingrain, three-ply, and all chain Venetian carpets,
twenty-two cents per square yard, and in addition thereto forty .
per centum ad Valorem. *-*.
378. Wool Dutch and two-ply ingrain carpets, eighteen cents
per square yard, and in addition thereto forty per centum ad
valorem.
379. Carpets of every description woven whole for rooms, and
Oriental, Berlin, Aubusson, Axminster, and similar rugs, ten
cents per square foot and in addition thereto, forty per centum
ad valorem.
380. Druggets and bockings, printed, colored, or otherwise.
twenty-two cents per square yard, and in addition thereto forty
per centum ad valorem. *
381. Carpets and carpeting of wool, flax, or cotton, or com-
posed in part of either, not specially provided for in this Act,
fifty per centum ad valorem.
382. Mats, rugs for floors, screens, covers, hassocks, bed sides,
art squares, and other portions of carpets or carpeting made
wholly or in part of wool, and not specially provided for in this
Act, shall be subjected to the rate of duty herein imposed on
carpets or carpetings of like character or description.
383. Whenever, in any schedule of this Act, the word “wool”
is used in connection with a manufactured article of which it
is a component material, it shall be held to include wool or hair
of the sheep, camel, goat, alpaca or other animal, whether
manufactured by the woolen, worsted, felt, or any other pro-
CeSS.
Schedule L–Silks and Silk Goods.
384. Silk partially manufactured from cocoons or from waste
silk, and not further advanced or manufactured than carded
or combed silk, forty cents per pound.
385. Thrown silk, not more advanced than singles, tram, or-
ganzine, sewing silk, twist, floss, and silk threads or yarns of
every description, except spun silk, thirty per centum ad val-
orem; spun silk in skeins, cops, warps, or on beams, valued at
not exceeding one dollar per pound, twenty cents per pound
TARIFF ACT, 1897. - 55
and fifteen per centum ad valorem; valued at over one dollar
per pound and not exceeding one dollar and fifty cents per
pound, thirty cents per pound and fifteen per centum ad val-
orem: valued at over one dollar and fifty cents per pound and
not exceeding two dollars per pound, forty cents per pound and
fifteen per centum ad valorem; valued at over two dollars per
pound and not exceeding two dollars and fifty cents per pound,
fifty cents per pound and fifteen per centum ad valorem; valued
at over two dollars and fifty cents per pound, sixty cents per
pound, and fifteen per centum ad valorem; but in no case shall
the foregoing articles pay a less rate of duty than thirty-five
per centum ad valorem.
386. Velvets, velvet or plush ribbons, chenilles, or other pile
fabrics, cut or uncut, composed of silk, or of which silk is the
component material of chief value, not specially provided for
in this Act, one dollar and fifty cents per pound and fifteen per
centum ad valorem; plushes, composed of silk, or of which silk
is the component material of chief value, one dollar per pound
and fifteen per centum ad Valorem; but in no case shall the
foregoing articles pay a less rate of duty than fifty per centum
ad Valorem. -
387. Woven fabrics in the piece, not specially provided for in
this Act, weighing not less than one and one-third ounces per
square yard and not more than eight ounces per square yard,
and containing not more than twenty per centum in weight of
silk, if in the gum, fifty cents per pound, and if dyed in the
piece, sixty cents per pound; if containing more than twenty
per centum and not more than thirty per centum in weight of
silk, if in the gum, sixty-five cents per pound, and if dyed in
the piece, eighty cents per pound; if containing more than
thirty per centum and not more than forty-five per centum in
weight of silk, if in the gum, ninety cents per pound, and if
dyed in the piece, one dollar and ten cents per pound; if dyed
in the thread or yarn and containing not more than thirty per
centum in weight of silk, if black (except selvedges), seventy-
five cents per pound, and if other than black, ninety cents per
pound; if containing more than thirty and not more than forty-
five per centum in weight of silk, if black (except selvedges),
one dollar and ten cents per pound, and if other than black, one
dollar and thirty cents per pound; if containing more than
forty-five per centum in weight of silk, or if composed wholly
of silk, if dyed in the thread or yarn and weighted in the dye-
ing so as to exceed the original weight of the raw silk, if black
(except selvedges), one dollar and fifty cents per pound, and if
other than black, two dollars and twenty-five cents per pound;
if dyed in the thread or yarn, and the weight is not increased
by dyeing beyond the original weight of the raw silk, three
dollars per pound; if in the gum, two dollars and fifty cents
per pound; if boiled off, or dyed in the piece, or printed, three
dollars per pound; if weighing less than one and one-third
ounces and more than one-third of an ounce per square yard, if
in the gum, or if dyed in the thread or yarn, two and one-half
dollars per pound; if weighing less than one and one-third
ounces and more than one-third of an ounce per square yard, if
boiled off, three dollars per pound; if dyed or printed in the
piece, three dollars and twenty-five cents per pound; if weigh-
ing not more than one-third of an ounce per square yard, four
56 F. B. VANDEGRIFT & CO.
dollars and fifty cents per pound; but in no cases shall any of
the foregoing fabrics in this paragraph pay a less rate of duty
than fifty per centum ad valorem.
388. Handkerchiefs or mufflers composed wholly or in part of
silk, whether in the piece or otherwise, finished or unfinished,
if not hemmed or hemmed only, shall pay the same rate of duty
as is imposed on goods in the piece of the same description,
weight and condition as provided for in this schedule; but such
handkerchiefs or mufflers shall not pay a less rate of duty than
fifty per centum ad valorem; if such handkerchiefs or mufflers
are hemstitched or imitation hemstitched, or revered or have
drawn threads, or are embroidered in any manner, whether
with an initial letter, monogram, or otherwise, by hand or
machinery, or are tamboured, appliqued, or are made or trim-
med wholly or in part with lace, or with tucking or insertion,
they shall pay a duty of ten per centum ad Valorem in addition
to the duty hereinbefore prescribed, and in no case less than
sixty per centum ad valorem.
389. Bandings, including hat bands, beltings, bindings, bone
casings, braces, cords, cords and tassels, garters, gorings, sus-
penders, tubings and webs and webbings, composed wholly or
in part of silk, and whether composed in part of india rubber
or otherwise, if not embroidered in any manner by hand or
machinery, fifty per centum ad valorem.
390. Laces, and articles made wholly or in part of lace, edg-
ings, insertings, galloons, chiffon or other flouncings, nets or
nettings and veilings, neck rufflings, ruchings, braids, fringes,
trimmings, embroideries and articles embroidered by hand or
machinery, or tamboured or appliqued, clothing ready made,
and articles of wearing apparel of every description, including
knit goods, made up or manufactured in whole or in part by
the tailor, seamstress, or manufacturer; all of the above-named
articles made of silk, or of which silk is the component material
of chief value, not specially provided for in this Act, and silk
goods ornamented with beads or spangles, of whatever material
composed, sixty per centum ad valorem: Proz/ided, That any
wearing apparel or other articles provided for in this para-
graph (except gloves) when composed in part of india-rubber,
shall be subject to a duty of sixty per centum ad valorem.
391. All manufactures of silk, or of which silk is the com-
ponent material of chief value, including such as have india-
rubber as a component material, not specially provided for in
this Act, and all Jacquard figured goods in the piece, made on
looms, of which silk is the component material of chief value,
dyed in the yarn, and containing two or more colors in the fill-
ing, fifty per centum ad Valorem: Proz/ided, That all manu-
factures, of which wool is a component material, shall be class-
ified and assessed for duty as manufactures of wool. -
392. In ascertaining the weight of silk under the provisions
of this schedule, the weight shall be taken in the condition in
which found in the goods, without deduction therefrom for any
dye, coloring matter, or other foreign substance or material.
Schedule M–Pulp, Papers and Books.
PULP AND PAPER:
393. Mechanically ground wood pulp, one-twelfth of one cent
TARIFF ACT, 1897. 57
per pound, dry weight; chemical wood pulp, unbleached, one-
sixth of one cent per pound, dry weight; bleached, one-fourth
of one cent per pound, dry weight: Provided . That if any
country or dependency shall impose an export duty on pulp
wood exported to the United States, the amount of such export
duty shall be added, as an additional duty, to the duties herein
imposed upon wood pulp, when imported rom such country or
dependency.
394. Sheathing paper and roofing felt, ten per centum ad va-
lorem. -
395. Filter masse or filter stock, composed wholly or in part
of wood pulp, wood flour, cotton or other vegetable fiber, one
and one-half cents per pound and fifteen per centum ad valorem.
396. Printing paper, unsized, sized or glued, suitable for books
and newspapers, valued at not above two cents per pournd,
three-tenths of one cent per pound; valued above two cents and
not above two and one-half cents per pound, four-tenths of one
cent per pound; valued above two and onc-half cents per pound
and Lot above three cents per pound, five-tenths of one cent per
pound; valued above three cents and not above four cents per
pound, six-tenths of one cent per pound; valued above four
cents and not above five cents per pound, eight-tenths of one
cent per pound; valued above five cents per pound, fifteen per
centum ad valorem: Provided, That if any country or depen-
dency shall impose an export duty upon pulp wood exported to
the United States, there shall be imposed upon printing paper
when imported from such country or dependency, an additional
duty of one-tenth of one cent per pound for each dollar of ex-
port duty per cord so imposed, and proportionately for fractions
of a dollar of such export duty.
397. Papers commonly known as copying paper, stereotype
paper, paper known as bibulous paper, tissue paper, pottery pa-
per, and all similar papers, white, colored or printed, weighing
not over six pounds to the ream of four hundred and eighty
sheets, on a basis of twenty by thirty inches, and whether in
reams or any other form, six cents per pound and fifteen per
Centum ad Valorem; if weighing over six pounds and not over
ten pounds to the ream, and letter copying books, whether
wholly or partly manufactured, five cents per pound and fif-
teen per centum ad Valorem; crepe paper and filtering paper,
five cents per pound and fifteen per centum ad valorem.
398. Surface-coated papers not specially provided for in this
Act, two and one-half cents per pound and fifteen per centum
ad valorem; if printed, or wholly or partly covered with metal
or its solutions, or with gelatin or flock, three cents per pound
and twenty per centum ad valorem: parchment papers, two
cents per pound and ten per centum ad valorem; plain basic
photographic papers for albumenizing, sensitizing, or baryta
coating, three cents per pound and ten per centum ad valorem;
albumenized or sensitized paper or paper otherwise surface
coated for photographic purposes, thirty per centum ad valorem.
MANUFACTURES OF PAPER:
399. Paper envelopes, plain, twenty per centum ad valorem;
if bordered, embossed, printed, tinted, or decorated, thirty-five
per centum ad valorem. -
400. Lithographic prints from stone, zinc, aluminum or other
58 F. B. VANDEGRIFT & CO.
material, bound or unbound (except cigar labels, flaps, and
bands, lettered, or otherwise, music and illustrations when
forming a part of a periodical or newspaper and accompanying
the same, or if bound in or forming a part of printed books, not
specially provided for in this Act), on paper or other material
not exceeding eight one-thousandths of one inch in thickness,
twenty cents per pound; on paper or other material exceeding
eight one-thousandths of one inch and not exceeding twenty
one thousandths of one inch in thickness, and exceeding thirty-
five square inches, but not exceeding four hundred square
inches cutting size in dimensions, eight cents per pound; ex-
ceeding four hundred square inches cutting size in dimensions,
thirty-five per centum ad valorem; prints exceeding eight one-
thousandths of one inch and not exceeding twenty one-thous-
andths of one inch in thickness, and not exceeding thirty-five
square inches cutting size in dimensions, five cents per pound;
lithographic prints from stone, zinc, aluminum or other ma-
terial, on cardboard or other material, exceeding twenty one-
thousandths of one inch in thickness, six cents per pound; lith-
ographic cigar labels, flaps and bands, lettered or blank, printed
from stone, zinc, aluminum or other material, if printed in less
than eight colors (bronze printing to be counted as two colors),
but not including labels, flaps and bands printed in whole or in
part in metal leaf, twenty cents per pound. Labels, flaps and
bands, if printed entirely in bronze printing, fifteen cents per
pound; labels, flaps and bands printed in eight or more colors,
but not including labels, flaps and bands printed in whole or in
part in metal leaf, thirty cents per pound; labels, flaps and
bands printed in whole or in part in metal leaf, fifty cents per
pound. Books of paper or other material for children's use,
containing illuminated lithographic prints, not exceeding in
weight twenty-four ounces each, and all booklets and fashion
magazines or periodicals printed in whole or in part by litho-
graphic process or decorated by hand, eight cents per pound.
401. Writing, letter, note, hand-made, drawing, ledger, bond,
record, tablet, and typewriter paper, weighing not less than
ten pounds and not more than fifteen pounds to the ream, two
cents per pound and ten per centum ad valorem; weighing more
than fifteen pounds to the ream, three and one-half cents per
pound and fifteen per centum ad. Valorem; but if any such pa-
per is ruled, bordered, embossed, printed, or decorated in any
mariner, it shall pay ten per centum ad valorem in addition to
the foregoing rates; Proz/ided, That in computing the duty on
such paper every one hundred and eighty thousand square
inches shall be taken to be a ream.
402. Paper hangings and paper for screens or fireboards, and
all other paper not specially provided for in this Act, twenty-
five per centum ad valorem; all Jacquard designs of one line
paper, or parts of such designs, finished or unfinished, thirty-
five per centum ad valorem; all Jacquard d \signs cut on Jac-
quard cards, or parts of such designs, finished or unfinished,
thirty-five per centum ad valorem.
- MANUE"ACTURES OF PAPER:
403. Books of all kinds, including blank books and pamphlets,
and engravings bound or unbound, photographs, etchings,
maps, charts, music in books or sheets, and printed matter, all
TARIFF ACT, 1897. * 59
the foregoing not specially provided for in this Act, twenty-five
per centum ad valorem. -
404. Photograph, autogroph, and scrap albums, wholly or
partly manufactured, thirty-five per centum ad valorem.
405. All fancy boxes made of paper, or of which paper is the
component material of chief value, or if covered with surface-
coated paper, forty-five per centum ad valorem.
406. Playing cards, in packs not exceeding fifty-four cards
and at a like rate for any number in excess, ten cents per pack
and twenty per centum ad Valorem.
407. Manufactures of paper, or of which paper is the com-
ponent material of chief value, not specially provided for in
this Act, thirty-five per centum ad valorem.
Schedule N—Sundries.
408. Beads of all kinds, not threaded or strung, thirty-five per
centum ad valorem; fabrics, nets or nettings, laces, embroider-
ies, galloons, wearing apparel, ornaments, trimmings and other
articles not specially provided for in this Act, composed wholly
or in part of beads or spangles made of glass or paste, gelatin,
metal, or other material, but not composed in part of wool,
sixty per centum ad valorem.
409. Braids, plaits, laces, and willow sheets or squares, com-
posed wholly of straw, chip, grass, palm leaf, willow, osier, or
rattan, suitable for making or ornamenting hats, bonnets, or
hoods, not bleached, dyed, colored or stained, fifteen per cen-
tum ad valorem; if bleached, dyed, colored or stained, twenty
per centum ad valorem; hats, bonnets, and hoods, composed of
straw, chip, grass, palm leaf, willow, osier, or rattan, whether
wholly or partly manufactured, but not trimmed, thirty-five
per centum ad Valorem; if trimmed, fifty per centum ad val-
orem. But the terms “grass” and “straw” shall be understood
to mean these substances in their natural form and structure,
and not the separated fiber thereof.
410. Brushes, brooms and feather dusters of all kinds, and
hair pencils in quills or otherwise, forty per centum ad valorem.
411. Bristles, sorted, bunched or prepared, seven and one-half
cents per pound.
BUTTONS AND BUTTON FORMS:
412. Trousers buckles made wholly or partly of iron or steel,
or parts thereof, valued at not more than fifteen cents per hun-
dred, five cents per hundred; valued at more than fifteen cents
per hundred and not more than fifty cents per hundred, ten
cents per hundred; valued at more than fifty cents per hun-
dred, fifteen cents per hundred; and in addition thereto on each
and all of the above buckles or parts of buckles, fifteen per cen-
tum ad valorem. .-
413. Button forms: Lastings, mohair, cloth, silk, or other
manufactures of cloth, woven or made in patterns of such size,
shape, or form, or cut in such manner as to be fit for buttons
exclusively, ten per centum ad valorem. -
414. Buttons or parts of buttons and button molds or blanks,
finished or unfinished, shall pay duty at the following rates, the
line button measure being one-fortieth of one inch, namely:
60 F. B. VANDEGRIFT & CO.
Buttons known commercially as agate buttons, metal trousers
buttons (except steel), and nickel bar buttons, one-twelfth of
one cent per line per gross; buttons of bone, and steel trousers
buttons, one-fourth of one cent per line per gross; buttons of
pearl Or shell, one and one-half cents per line per gross; but-
tons of horn, vegetable ivory, glass, or metal, not specially pro-
vided for in this Act, three-fourths of one cent per line per
gross, and in addition thereto, on all the foregoing articles in
this paragraph, fifteen per centum ad valorem; shoe buttons
made of paper, board, papier mache, pulp or other similar ma-
terial, not specially provided for in this Act, valued at not ex-
ceeding three cents per gross, one cent per gross; buttons not
specially provided for in this Act, and all collar or cuff buttons
and studs, fifty per centum ad valorem. º
415. Coal, bituminous, and all coals containing less than
ninety-two per centum of fixed carbon, and shale, sixty-seven
cents per ton of twenty-eight bushels, eighty pounds to the
bushel; coal slack or culm, such as will pass through a half-
inch screen, fifteen cents per ton of twenty-eight bushels,
eighty pounds to the bushel: Proz/ided,. That on all coal im-
ported into the United States, which is afterwards used for
fuel on board vessels propelled by steam and engaged in trade
with foreign countries, or in trade between the Atlantic and
Pacific ports of the United States, and which are registered
under the laws of the United States, a drawback shall be al-
lowed equal to the duty imposed by law upon such coal, and
shall be paid under such regulations as the Secretary of the
Treasury shall prescribe; coke, twenty per centum ad valorem.
416. Cork bark, cut into squares or cubes, eight cents per
pound; manufactured corks over three-fourths of an inch in
diameter measured at larger end, fifteen cents per pound;
three-fourths of an inch and less in diameter, measured at
larger end, twenty-five cents per pound; cork, artificial, or cork
substitutes, manufactured from cork waste and not otherwise
provided for, eight cents per pound.
417. Dice, draughts, chessmen, chess balls, and billiard, pool,
and bagatelle balls, of ivory, bone, or other materials, fifty per
centum ad valorem.
418. Dolls, doll heads, toy marbles of whatever materials com-
posed, and all other toys not composed of rubber, china, porce-
lain, parian, bisque, earthen or stone ware, and not specially
provided for in this Act, thirty-five per centum ad valorem.
419. Emery grains, and emery manufactured, ground, pulver-
ized, or refined, one cent per pound; emery wheels, emery files,
and manufactures of which emery is the component material
of chief value, twenty-five per centum ad valorem.
EXPLOSIVE SUBSTANCES:
420. Firecrackers of all kinds, eight cents per pound, the
weight to include all coverings, wrappings, and packing mate-
rial. -
421. Fulminates, fulminating powders, and like articles, not
specially provided for in this Act, thirty per centum ad val-
Ore DOl.
422. Gunpowder, and all explosive substances used for min-
hg, blasting, artillery, or sporting purposes, when valued at
TARIFF ACT, 1897. 61
twenty cents or less per pound, four cents per pound; valued
above twenty cents per pound, six cents per pound.
423. Matches, friction or lucifer, of all descriptions, per gross
of One hundred and forty-four boxes, containing not more than
One hundred matches per box, eight cents per gross; when im-
ported otherwise than in boxes containing not more than one
hundred matches each, one cent per one thousand matches.
424. Percussion caps, thirty per centum ad valorem; cart-
ridges, thirty-five per centum ad valorem; blasting caps, two
dollars and thirty-six cents per one thousand caps.
425. Feathers and downs of all kinds, including bird skins or
parts thereof with the feathers on, crude or not dressed, col-
ored, or otherwise advanced or manufactured in any manner,
not specially provided for in this Act, fifteen per centum ad
Valorem; when dressed, colored, or otherwise advanced or
manufactured in any manner, including quilts of down and
other manufactures of down, and also dressed and finished
birds suitable for millinery ornaments, and artificial or orna-
mental feathers, fruits, grains, leaves, flowers, and stems or
parts thereof, of whatever material composed, not specially
provided for in this Act, fifty per centum ad valorem. -
426. Furs, dressed on the skin but not made up into articles,
and furs not on the skin, prepared for hatters’ use, including
fur skins carroted, twenty per centum ad Valorem.
427. Fans of all kinds, except common palm-leaf fans, fifty
per centum ad valorem. gº f
428. Gun wads of all descriptions, twenty per centum ad val-
OTOIſl.
429. Hair, human, if clean or drawn but not manufactured,
twenty per centum ad valorem.
430. Hair, curled, suitable for beds or mattresses, ten per
centum ad Valorem.
431. Haircloth, known as “crinoline” cloth, ten cents per
square yard; haircloth, known as “hair seating,” and hair
press cloth, twenty cents per square yard.
432. Eſats, bonnets, or hoods, for men’s, women’s, boys’, or
children’s wear, trimmed or untrimmed, including bodies,
hoods, plateaux, forms, or shapes, for hats or bonnets, com-
posed wholly or in chief value of fur of the rabbit, beaver, or
other animals, valued at not more than five dollars per dozen,
two dollars per dozen; valued at more than five dollars per
dozen and not more than ten dollars per dozen, three dollars
per dozen; valued at more than ten dollars per dozen and not
more than twenty dollars per dozen, five dollars per dozen;
valued at more than twenty dollars per dozen, seven dollars
per dozen; and in addition thereto on all the foregoing, twenty
per centum ad valorem.
433. Indurated fiber ware, and manufactures of wood or other
pulp, and not otherwise specially provided for, thirty-five per
centum ad valorem.
JEWELRY AND PRECIOUS STONES:
434. Articles commonly known as jewelry, and parts thereof,
finished or unfinished, not specially provided for in this Act, in-
cluding precious stones set, pearls set or strung, and cameos in
frames, sixty per centum ad Valorem. .
435. Diamonds and other precious stones advanced in condi-
62 F. B. VANDEGRIFT & Co.
tion or value from their natural state by cleaving, splitting,
cutting, or other process, and not set, ten per centum ad va- -
lorem; imitations of diamonds or other precious stones, Com-
posed of glass or paste, not exceeding an inch in dimensions,
not engraved, painted, or otherwise ornamented or decorated,
and not mounted or set, twenty per centum ad valorem.
436. Pearls in their natural state, not strung or set, ten per
centum ad valorem.
LEATHER, AND MANUFACTURES OF:
437. Hides of cattle, raw or uncured, whether dry, salted, or
pickled, fifteen per centum ad valorem: Provided, That upon
all leather exported, made from imported hides, there shall be
allowed a drawback equal to the amount of duty paid on such
hides, to be paid under such regulations as the Secretary of the
Treasury may prescribe.
438. Band or belting leather, sole leather, dressed upper and
all other leather, calfskins tanned or tanned and dressed, kan-
garoo, sheep and goat skins (including lamb and, kid skins)
dressed and finished, chamois and other skins and bookbinders'
calfskins, all the foregoing not specially provided for in this
Act, twenty per centum ad valorem; skins for morocco, tanned
but unfinished, ten per centum ad valorem; patent, japanned,
varnished or enameled leather, weighing not over ten pounds
per dozen hides or skins, thirty cents per pound and twenty per
centum ad valorem; if weighing over ten pounds and not over
twenty-five pounds per dozen, thirty cents per pound and ten
per centum ad Valorem; if weighing over twenty-five pounds
per dozen, twenty cents per pound and ten per centum ad wa-
lorem; pianoforte leather and pianoforte action leather, thirty-
five per centum ad valorem; leather shoe laces, finished or un-
finished, fifty cents per gross pairs and twenty per centum ad
valorem; boots and shoes made of leather, twenty-five per cen-
tum ad valorem: Provided. That leather cut into shoe uppers
or vamps or other' forms, suitable for conversion into manu-
factured articles, shall be classified as manufactures of leather
and pay duty accordingly.
g Gloves:
439. Gloves made wholly or in part of leather, whether wholly
or partly manufactured, shall pay duty at the following rates,
the lengths stated in each case being the extreme length when
stretched to their full extent, namely: .
440. Women's or children’s “glace” finish, Schmaschen (of
sheep origin), not over fourteen inches in length, one dollar and
seventy-five cents per dozen pairs; over fourteen inches and not
over seventeen inches in length, two dollars and twenty-five
cents per dozen pairs; over seventeen inches in length, two dol-
lars and seventy-five cents per dozen pairs; men’s “glace” fin-
ish, Schmaschen (sheep), three dollars per dozen pairs.
441. Women's or children’s “glace” finish, lamb or sheep, not
over fourteen inches in length, two dollars and (.5ty cents per
dozen pairs; over fourteen and not over seventeen inches in
length, three dollars and fifty cents per dozen pairs; over seven-
teen inches in length, four dollars and fifty cents per dozen
pairs; men’s “glace” finish, lamb or sheep, four dollars per
dozen pairs.
TARIFF ACT, 1897. 63
442. Women’s or children’s “glace” finish, goat, kid, or other
leather than of sheep origin, not over fourteen inches in length,
three dollars per dozen pairs; over fourteen and not over seven-
teen inches in length, three dollars and seventy-five cents per
dozen pairs; over seventeen inches in length, four dollars and
seventy-five cents per dozen pairs; men’s “glace” finish, kid,
goat, or other leather than of sheep origin, four dollars per
dozen pairs. -
443. Women’s or children's, of sheep origin, with exterior
grain surface removed, by Whatever name known, not over
seventeen inches in length, two dollars and fifty cents per
dozen pairs; over seventeen inches in length, three dollars and
fifty cents per dozen pairs; men’s, of sheep origin, with exterior
surface removed, by whatever name known, four dollars per
dozen pairs. -
444. Women’s or children's kid, goat, or other leather than of
sheep origin, with exterior grain surface removed, by whatever
name known, not over fourteen inches in length, three dollars
per dozen pairs; over fourteen inches and not over seventeen
inches in length, three dollars and seventy-five cents per dozen
pairs; over seventeen inches in length, four dollars and seventy-
five cents per dozen pairs; men’s, goat, kid, or other leather
than of sheep origin, with exterior grain surface removed, by
whatever name known, four dollars per dozen pairs.
445. In addition to the foregoing rates there shall be paid the
following cumulative duties: On all leather gloves, when
lined, one dollar per dozen pairs; on all pique or prix seam
gloves, forty cents per dozen pairs; on all gloves stitched or
embroidered, with more than three single strands or cords, forty .
cents per dozen pairs.
446. Glove tranks, with or without the usual accompanying
pieces, shall pay seventy-five per centum of the duty provided
for the gloves in the fabrication of which they are suitable.
447. Harness, saddles and saddlery, or parts of either, in sets
or in parts, finished or unfinished, forty-five per centum ad
valorem.
MISCELLANEOUS MAN UFACTURES:
448. Manufactures of amber, asbestos, bladders, cork, catgut
or whip gut or worm gut, or wax, or of which these substances
or either of them is the component material of chief value, not
specially provided for in this Act, twenty-five per centum ad
valorem. -
449. Manufactures of bone, chip, grass, horn, india-rubber,
palm leaf, straw, weeds, or whalebone, or of which these sub-
stances or either of them is the component material of chief
value, not specially provided for in this Act, thirty per centum
ad valorem; but the terms “grass” and “straw” shall be under-
stood to mean these substances in their natural form and struc-
ture, and not the separated fiber thereof.
450. Manufactures of leather, finished or unfinished, manu-
factures of fur, gelatin, gutta-percha, human hair, ivory, vege-
table ivory, mother-of-pearl and shell, plaster of paris, papier
mache, and vulcanized india-rubber known as “hard rubber,”
or of which these substances or either of them is the component
material of chief value, not specially provided for in this Act.
64 F. B. VANDEGRIFT & CO.
and shells engraved, cut, ornamented, or otherwise manufac-
tured, thirty-five per centum ad valorem.
451. Masks, composed of paper or pulp, thirty-five per centum
ad valorém.
452. Matting made of cocoa fiber or rattan, six cents per
square yard; mats made of cocoa fiber or rattan, four cents per
square foot. -
453. Musical instruments or parts thereof, pianoforte actions
and parts thereof, strings for musical instruments not otherwise
enumerated, cases for musical instruments, pitch pipes, tuning
forks, tuning hammers, and metronomes; strings for musical
instruments, composed wholly or in part of steel or other metal,
all the foregoing, forty-five per centum ad valorem.
454. Paintings in oil or water colors, pastels, pen and ink
drawings, and statuary, not specially provided for in this Act,
twenty per centum ad valorem; but the term “statuary” as used
in this Act shall be understood to include only such statuary
as is cut, carved, or otherwise wrought by hand from a solid
block or mass of marble, stone, or alabaster, or from metal, and
as is the professional production of a statuary or sculptor only.
455. Peat moss, one dollar per ton.
456. Pencils of paper or wood filled with lead or other ma-
terial, and pencils of lead, forty-five cents per gross and
twenty-five per centum ad valorem; slate pencils, covered with
Wood, thirty-five per centum ad valorem; all other slate pencils,
three cents per one hundred.
457. Pencil leads not in wood, ten per centum ad valorem.
458. Photographic dry plates or films, twenty-five per centum
ad valorem.
459. Pipes and smokers' articles: Common tobacco pipes
and pipe bowls made wholly of clay, valued at not more than
forty cents per gross, fifteen cents per gross; other tobacco
pipes and pipe bowls of clay, fifty cents per gross and twenty-
five per centum ad valorem; other pipes and pipe bowls of what-
ever material composed, and all smokers’ articles whatsoever,
not specially provided for in this Act, including cigarette books,
cigarette book covers, pouches for smoking or chewing tobacco,
and cigarette paper in all forms, sixty per centum ad valorem.
460. Plows, tooth and disk harrows, harvesters, reapers, ag-
ricultural drills, and planters, mowers, horserakes, cultivators,
threshing machines and cotton gins, twenty per centum ad wa-
lorem.
461. Plush, black, known commercially as hatters' plush,
composed of silk, or of silk and cotton, such as is used exclus-
ively for making men’s hats, ten per centum ad valorem.
462. Umbrellas, parasols, and sun shades covered with ma-
terial other than paper, fifty per centum ad valorem. Sticks
for umbrellas, parasols, or sun shades, and walking canes, fin-
ished or unfinished, forty per centum ad valorem. s
463. Waste, not specially provided for in this Act, ten per
centum ad valorem.
Free List.
Sec. 2. That on and after the passage of this Act, unless
otherwise specially provided for in this Act, the following ar-
ticles when imported shall be exempt from duty:
464. Acids: Arsenic or arsenious, benzoic, carbolic, fluoric,
TARIFF ACT, 1897. 65
hydrochloric or muriatic, nitric, oxalic, phosphoric, phthalic,
picric or nitro-picric, prussic, silicic, and Valerianic.
465. Aconite.
466. Acorns, raw, dried or undried, but unground.
467. Agates, unmanufactured. '
468. Albumen, not specially provided for. --
469. Alizarin, natural or artificial, and dyes derived from ali-
zarin or from anthracin.
470. Amber, and amberoid unmanufactured, or crude gum.
471. Ambergris.
472. Aniline salts.
473. Any animal imported specially for breeding purposes
shall be admitted free: Provided, That no such animal shall
be admitted free unless pure bred of a recognized breed, and
duly registered in the book of record established for that breed:
And provided further, That certificate of such record and of
the pedigree of such animal shall be produced and submitted to
the customs officer, duly authenticated by the proper custodian
of such book of record, together with the affidavit of the owner,
agent, or importer that such animal is the identical animal de-
scribed in said certificate of record and pedigree: And pro-
vided further, That the Secretary of Agriculture shall deter-
mine and certify to the Secretary of the Treasury what are
recognized breeds and pure bred animals under the provisions of
this paragraph. The Secretary of the Treasury may prescribe
such additional regulations as may be required for the strict
enforcement of this provision. Cattle, horses, sheep, or other
domestic animals straying across the boundary line into any
foreign country, or driven across such boundary line by the
owner for temporary pasturage purposes only, together with
their offspring, may be brought back to the United States with
in six months free of duty, under regulations to be prescribed
by the Secretary of the Treasury.
474. Animals brought into the United States temporarily for
a period not exceeding six months, for the purpose of exhibition
or competition for prizes offered by an agricultural or racing as-
sociation; but a bond shall be given in accordance with regula-
tions prescribed by the Secretary of the Treasury; also teams of
animals, including their harness and tackle and the wagons or
other vehicles actually owned by persons emigrating from for-
eign countries to the United States with their families, and in
actual use for the purpose of such emigration under such reg-
ulations as the Secretary of the Treasury may prescribe; and
wild animals intended for exhibition in zoological collections for
scientific and educational purposes, and not for sale or profit.
475. Annatto, roucou, rocoa, or orleans, and all extracts of.
476. Antimony ore, crude sulphite of.
477. Apatite.
478. Arrowroot in its natural state and not manufactured.
479. Arsenic and sulphide of, or Orpiment.
480. Arseniate of aniline.
481. Art educational stops, composed of glass and metal and
valued at not more than six cents per gross.
482. Articles in a crude state used in dyeing or tanning not
specially provided for in this Act.
483. Articles the growth, produce, and manufacture of the
United States, when returned after having been exported,
66 F. B. VANDEGRIFT & Co.
without having been advanced in value or improved in condi-
tion by any process of manufacture or other means; casks, bar-
rels, carboys, bags, and other vessels of American manufacture
exported filled with American products, or exported empty and
returned filled with foreign products, including shooks and
staves when returned as barrels or boxes; also quicksilver
flasks or bottles, of either domestic or foreign manufacture,
which shall have been actually exported from the United
States; but proof of the identity of such articles shall be made,
under general regulations to be prescribed by the Secretary of
the Treasury, but the exemption of bags from duty shall apply
only to such domestic bags as may be imported by the exporter
thereof, and if any such articles are subject to internal tax at
the time of exportation, such tax shall be proved to have been
paid before exportation and not refunded: Provided, That
this paragraph shall not apply to any article upon which an al-
lowance of drawback has been made, the reimportation of
which is hereby prohibited except upon payment of duties equal
to the drawbacks allowed; or to any article manufactured in
bonded warehouse and exported under any provision of law:
And provided further, That when manufactured tobacco which
has been exported without payment of internal revenue tax
shall be reimported it shall be retained in the custody of the
collector of customs until internal revenue stamps in payment
of the legal duties shall be placed thereon.
484. Asbestos, unmanufactured. -
485. Ashes, wood and lye of, and beet-root ashes.
486. Asafetida.
487. Balm of Gilead.
488. Barks, cinchona or other from which quinine may be
extracted.
489. Baryta, carbonate of, or witherite.
490. Beeswax.
491. Binding twine: All binding twine manufactured from
New Zealand hemp, istle or Tampico fiber, sisal grass, or sunn,
or a mixture of any two or more of them, of single ply and
measuring not exceeding 600 feet to the pound: Proz/ided,
That articles mentioned in this paragraph if imported from a
country which lays an import duty on like articles imported
from the United States, shall be subject to a duty of one-half
of one cent per pound.
492. Bells, broken, and bell metal broken and fit only to be
remanufactured. -
493. Birds, stuffed, not suitable for millinery ornaments.
494. Birds and land and water fowls.
495. Bismuth.'
496. Bladders, and all integuments and intestines of animalſ
and fish sounds, crude, dried or salted for preservation only,
and unmanufactured, not specially provided for in this Act.
497. Blood, dried, not specially provided for.
498. Bolting cloths composed of silk, imported expressly for
milling purposes, and so permanently marked as not to be avail-
able for any other use.
499. Bones, crude, or not burned, calcined, ground, steamed,
or otherwise manufactured, and bone dust or animal carbon,
and bone ash, fit only for fertilizing purposes.
500. Books, engravings, photographs, etchings, bound or un-
TARIFF ACT, 1897. 67
bound, maps and charts imported by authority or for the use of
the United States or for use of the Library of Congress.
501. Books, maps, music, engravings, photographs, etchings,
bound or unbound, and charts, which shall have been printed
more than twenty years at the date of importation, and all
hydrographic charts, and publications issued for their subscrib-
ers or exchanges by scientific and literary associations or acad-
emies, or publications of individuals for gratuitous private cir-
culation, and public documents issued by foreign Governments.
502. Books and pamphlets printed exclusively in languages
other than English; also books and music, in raised print, used
exclusively by the blind.
503. Books, maps, music, photographs, etchings, lithographic
prints, and charts, specially imported, not more than two copies
in any one invoice, in good faith, for the use or by order of any
society or institution incorporated or established solely for re-
ligious, philosophical, educational, scientific, or literary pur-
poses, or for the encouragement of the fine arts, or for the use
or by order of any college, academy, school, or seminary of
learning in the United States, or any State or public library,
and not for sale; subject to such regulations as the Secretary
of the Treasury shall prescribe.
504. Books, libraries, usual and reasonable furniture, and
similar household effects of persons or families from foreign
countries, all the foregoing if actually used abroad by them not
less than one year, and not intended for any other person or
persons, nor for sale.
505. Brass, old brass, clippings from brass or Dutch metal, all
the foregoing, fit only for remanufacture.
506. Brazil paste.
507. Brazilian pebble, unwrought or unmanufactured.
508. Breccia, in block or slabs.
509. Bristles, crude, not sorted, bunched, or prepared.
510. Broom corn.
511. Bullion, gold or silver.
512. Burgundy pitch.
513. Cadmium.
514. Calamine.
515. Camphor, crude.
516. Castor or castoreum.
517. Cat gut, whip gut, or worm gut, unmanufactured.
518. Cerium.
519. Chalk, crude, not ground, precipitated, or otherwise
manufactured. -
520. Chromate of iron or chromic ore.
521. Civet, crude.
522. Clay: Common blue clay in casks suitable for the manu-
facture of crucibles.
523. Coal, anthracite, not specially provided for in this Act,
and coal stores cf American vessels, but none shall be unloaded.
524. Coal tar, crude, pitch of coal tar, and products of coal
tar known as dead or creoscite oil, benzol, toluol, napthalin,
xylol, phenol, cresol, toluidine, xylidin, cumidin, binitrotoluol,
binitrobenzol, benzidin, tolidin, dianisidin, naphtol, naphtyla-
min, diphenylamin, benzaldehyde, benzyl chloride, resorcin,
nitro-benzol, and nitro-toluol; all the foregoing not medicinal
and not colors or dyes. º
6S F. B. VANDEGRIFT & CO.
525. Cobalt and cobalt ore.
526. Cocculus indicus.
527. Cochineal.
528. Cocoa, or cacao, crude, and fiber, leaves, and shells of.
529. Coffee.
530. Coins, gold, silver, and copper.
531. Coir, and coir yarn. g
532. Copper in plates, bars, ingots, or pigs, and other forms,
not manufact ured or specially provided for in this Act.
533. Old copper, fit only for manufacture, clipping from new
copper, and all composition metal of which copper is a compo-
nent material of chief value not specially provided for in this
Act.
- 534. Copper, regulus of, and black or coarse copper, and cop-
per cement. -
535. Coral, marine, uncut, and unmanufactured.
536. Cork wood, or cork bark, unmanufactured.
537. Cotton, and cotton waste or flocks.
538. Cryolite, or kryolith.
539. Cudbear. &
540. Curling stones, or quoits, and curling-stone handles.
541. Curry, and curry powder.
542. Cutch.
543. Cuttlefish bone. •
544. Dandelion roots, raw, dried, or undried, but unground.
545. Diamonds and other precious stones, rough or uncut, and
not advanced in condition or value from their natural state by
cleaving, splitting, cutting, or other process, including miners’,
glaziers' and engravers' diamonds not set, and diamond dust
or bort.
546. Divi-divi.
547. Dragon’s blood.
548. Drugs, such as barks, beans, berries, balsams, buds, bulbs
and bulbous roots, excrescences, fruits flowers, dried fibers,
and dried insects, grains, gums, and gum resin, herbs, leaves,
lichens, mosses, nuts, nutgalls, roots, and stems, spices, vege-
tables, seeds aromatic, and seeds of morbid growth, weeds, and
woods used expressly for dyeing; any of the foregoing which
are drugs and not edible and are in a crude state, and not ad-
vanced in value or condition by refining or grinding, or by other
process, and not specially provided for in this Act.
549. Eggs of birds, fish, and insects: Proz/ided, however,
That this shall not be held to include the eggs of game birds or
eggs of birds not used for food, the importation of which is
prohibited except specimens for scientific collections, nor fish
roe preserved for food purposes.
550. Emery ore.
551. Ergot.
552. Fans, common palm-leaf, plain and not ornamented or
decorated in any manner, and palm leaf in its natural state,
not colored, dyed, or otherwise advanced or manufactured.
553. Felt, adhesive, for sheathing vessels.
554. Fibrin, in all forms.
555. Fish, fresh, frozen, or packed in ice, caught in the Great
Lakes or other fresh waters by citizens of the United States,
556. Fish skins.
557. Flint, flints, and flint stones, unground.
TARIFF ACT, 1897. 69
558. Fossils.
559. Fruits or berries, green, ripe, or dried, and fruits in
brine, not specially provided for in this Act.
560. Hºruit-plants, tropical and semitropical, for the purpose
of propagation or cultivation.
561. Furs, undressed.
562. Fur skins of all kinds not dressed in any manner and not
specially provided for in this Act.
563. Gambier.
564. Glass enamel, white, for watch and clock dials.
565. Glass plates or discs, rough-cut or unwrought, for use in
the nuanufacture of optical instruments, spectacles, and eye
glasses, and suitable only for such use: Proz/ided, howezer,
That such discs exceeding eight inches in diameter may be pol-
ished sufficiently to enable the character of the glass to be de-
termined.
566. Grasses and fibers: Istle or Tampico fiber, jute, jute
butts, manila, sisal grass, sunn, and all other textile grasses or
fibrous vegetable substances, not dressed or manufactured in
any manner, and not specially provided for in this Act.
567. Gold-beaters’ molds and gold-beaters’ skins.
568. Grease, and oils (excepting fish oils), such as are com-
monly used in soap making or in wire drawing, or for stuffing
or dressing leather, and which are fit only for such uses, and
not specially provided for in this Act.
569. Guano, manures, and all substances used only for ma-
DUII e.
570. Gutta percha, crude.
571. Hair of horse, cattle, and other animals, cleaned or un-
cleaned, drawn or undrawn, but unmanufactured, not specially
provided for in this Act; and human hair, raw, uncleaned, and
not drawn.
572. Hide cuttings, raw, with or without hair, and all other
glue stock. -
573. Eſide rope.
574. Hones and whetstones.
575. Eſoofs, unmanufactured.
576. Hop roots for cultivation.
577. Eſorms and parts of, unmanufactured, including horn
strips and tips.
578. Ice.
579. India rubber, crude, and milk of, and old scrap or refuse
Indi rubber which has been worn out by use and is fit only for
remanufacture.
580. Indigo.
581. Iodine, crude.
582. Ipecac.
583. Iridium.
584. Ivory tusks in their natural state or cut vertically across
the grain only, with the bark left intact, and vegetable ivory in
its natural state.
585. Jalap.
586. Jet, unmanufactured.
587. Joss stick, or Joss light.”
588. Junk, old.
589. Relp.
590. Rieserite.
70 F. B. VANDEGRIFT & CO.
591. Kyanite, or cyanite, and kainite.
592. Lac dye, crude, seed, button, stick, and shell.
593. Lac spirits.
594. Lactarene.
595. Lava, unmanufactured.
596. Leeches.
597. Lemon juice, lime juice, and sour orange juice.
598. Licorice root, unground.
599. Lifeboats and life-saving apparatus specially imported
by societies incorporated or established to encourage the saving
of human life. e
600. Lime, citrate of.
601. Lithographic stones, not engraved.
602. Litmus, prepared or not prepared.
603. Loadstones. -
604. Madder and munjeet, or Indian madder, ground or pre-
pared, and all extracts of.
605. Magnesite, crude or calcined, not purified.
606. Magnesium, not made up into articles.
607. Manganese, oxide and ore of.
608. Manna.
609. Manuscripts.
610. Marrow, crude.
611. Marshmallow or althea root, leaves or flowers, natural or
unmanufactured. . #
612. Medals of gold, silver, or copper, and other metallic ar-
ticles actually bestowed as trophies or prizes, and received and
accepted as honorary distinctions.
613. Meerschaum, crude or unmanufactured.
614. Minerals, crude, or not advanced in value or condition by
refining or grinding, or by other process of manufacture, not
specially provided for in this Act.
615. Mineral salts obtained by evaporation from mineral wat-
ers, when accompanied by a duly authenticated certificate and
satisfactory proof, showing that they are in no way artificially
prepared, and are only the product of a designated mineral
spring.
616. Models of inventions and of other improvements in the
arts, including patterns for machinery, but no article shall be
deemed a model or pattern which can be fitted for use other-
WIS e.
617. Moss, seaweeds, and vegetable substances, crude or un-
manufactured, not otherwise specially provided for in this Act.
618. Musk, crude, in natural pods.
619. Myrobolans.
620. Needles, hand sewing, and darning.
621. Newspapers and periodicals; but the term “periodicals”
as herein used shall be understood to embrace only unbound or
paper-covered publications, issued within six months of the
time of entry, containing current literature of the day and is-
sued regularly at stated periods, as weekly, monthly, or quar-
terly.
622. Nuts: Brazil nuts, cream nuts, palm nuts and palm-nut
kernels; cocoanuts in the shell and broken cocoanut meat or
copra, not shredded, desiccated, or prepared in any manner.
623. Nux vomica.
624. Oakum.
TARIFF ACT, 1897. 71
625. Oil cake.
626. Oils: Almond, amber, crude and rectified ambergris,
anise or anise seed, aniline, aspic or spike lavender, bergamot,
cajeput, caraway, cassia, cinnamon, cedrat, chamomile, citron-
ella or lemon grass, civet, cocoanut, fennel, ichthyol, jasmine
or jasimine, juglandium, juniper, lavender, lemon, limes, mace,
neroli or orange flower, enfleurage grease, nut oil or oil of nuts
not otherwise specially provided for in this Act, orange oil, olive
oil for manufacturing or mechanical purposes fit only for such
use and valued at not more than sixty cents per gallon, ottar
of roses, palm, rosemary or anthoss, sesame or sesamum seed
or bean, thyme, origanum red or white, Valerian; and also
spermaceti, whale, and other fish oils of American fisheries, and
all fish and other products of such fisheries; petroleum, crude
or refined: P, oz/ided, That if there be imported into the United
States crude petroleum, or the products of. crude petroleum
produced in any country which imposes a duty on petroleum or
its products exported from the United States, there shall in such
cases be levied, paid, and collected a duty upon said crude pe—
troleum or its products so imported equal to the duty imposed
by such country.
627. Orange and lemon peel, not preserved, candied, or dried.
628. Orchil, or orchil liquid.
629. Ores of gold, silver, copper, or nickel, and nickelmatte;
sweepings of gold and silver. * .
630. Osmium.
631. Palladium.
632. Paper stock, crude, of every description, including all
grasses, fibers, rags (other than wool), waste, including jute
waste, shavings, clippings, old paper, rope ends, waste rope,
and Waste bagging, including old gunny cloth and old gunny
bags, fit only to be converted into paper.
633. Paraffin. -
634. Parchment and wellum.
635. Pearl, mother of, and shells, not sawed, cut, polished or
otherwise manufactured, or advanced in value from the nat-
ural state.
636. Personal effects, not merchandise, of citizens of the
United States dying in foreign countries.
637. Pewter and britannia metal, old, and fit only to be re-
manufactured. * , . -
638. Philosophical and scientific apparatus, utensils, instru-
ments, and preparations, including bottles and boxes containing
the same, specially imported in good faith for the use and by
order of any society or institution incorporated or established
solely for religious, pholosophical, educational, scientific, or lit-
erary purposes, or for the encouragement of the fine arts, or
for the use or by order of any college, academy, school, or semi-
nary of learning in the United States, or any State or public
library, and not for sale, subject to such regulations as the Sec-
retary of the Treasury shall prescribe.
639. Phosphates, crude.
640. Plants, trees, shrubs, roots, seed-cane, and seeds, import-
ed by the Department of Agriculture or the United States Bo-
tanic Garden.
641. Platina, in ingots, bars, sheets, and wire.
642. Platinum, unmanufactured, and vases, retorts, and other
72 F. B. VANDEGRIFT & Co.
apparatus, vessels, and parts thereof composed of platinum, for
chemical uses.
643. Plumbago. i
644. Potash, crude, or “black salts”; carbonate of potash,
crude or refined; hydrate of, or caustic potash, not including re-
fined in sticks or rolls; nitrate of potash or saltpeter, crude;
sulphate of potash, crude or refined, and muriate of potash.
645. Professional books, implements, instruments, and tools
of trade, occupation, or employment, in the actual possession
at the time, of persons emigrating to the United States; but
this exemption shall not be construed to include machinery or
other articles imported for use in any manufacturing establish-
ment, or for any other person or persons, or for sale, nor shall
it be construed to include theatrical scenery, properties, and ap-
pare, ; but such articles brought by proprietors or managers of
theatrical exhibitions arriving from abroad, for temporary use
by them in such exhibitions, and not for any other person, and
not for sale, and which have been used by them abroad, shall
be admitted free of duty under such regulations as the Secre-
tary of the Treasury may prescribe; but bonds shall be given
for the payment to the United States of such duties as may be
imposed by law upon any and all such articles as shall not be
exported within six months after such importation: Proz/ided,
That the Secretary of the Treasury may in his discretion ex-
tend such period for a further term of six months in case ap-
plication shall be made therefor. -
646. Pulu.
647. Quinia, sulphate of, and all alkaloids or salts of cinchona
bark. -
648. Rags, not otherwise specially provided for in this Act.
649. Regalia and gems, statuary, and specimens or casts of
sculpture, where specially imported in good faith for the use
and by order of any society incorporated or established solely
for religious, philosophical, educational, scientific, or literary
purposes, or for the encouragement of the fine arts, or for the
use and by order of any college, academy, school, or seminary
of learning in the United States, or any State or public library,
and not for sale; but the term “regalia” as herein used shall be
held to embrace only such insignia of rank or office or emblems
as may be worn upon the person or borne in the hand during
public exercises of the society or institution, and shall not in-
clude articles of furniture or fixtures, or of regular wearing
apparel, nor personal property of individuals.
650. Rennets, raw or prepared. *
651. Saffron and safflower, and extract of, and saffron cake.
652. Sago, crude.
653. Salacin.
654. Salep, or salop.
655. Sausages, bologna.
656. Seeds: Anise, caraway, cardamom, cauliflower, corian-
der, cotton, cummin, fennel, fenugreek, hemp, hoarhound, man-
gel-Wurzel, mustard, rape, Saint John’s bread or bean, sugar
beet, sorghum or sugar cane for seed; bulbs and bulbous roots,
not edible and not otherwise provided for; all flower and grass
seeds; all the foregoing not specially provided for in this Act.
657. Sheep dip, not including compounds or preparations that
can be used for other purposes.
TARLFF ACT, 1897. - 73
658. Shotgun barrels, in single tubes, forged, rough bored.
659. Shrimps and other shell fish.
660. Silk, raw, or as reeled from the cocoon, but not doubled,
twisted, or advanced in manufacture in any way.
661. Silk cocoons and silk waste. -
662. Silkworm’s eggs.
663. Skeletong and other preparations of anatomy.
664. Skins of all kinds, raw (except sheepskins with the wool
on), and hides not specially provided for in this Act.
665. Soda, nitrate of, or cubic nitrate.
666. Specimens of natural history, botany, and mineralogy,
when imported for scientific public collections, and not for sale.
667. Spices: Cassia, cassia vera, and cassia buds; cinnamon
and chips of; cloves and clove stems; mace; nutmegs; pepper,
black or white, and pimento; all the foregoing when unground;
ginger root, unground and not preserved or candied.
668. Spunk. -
669. Spurs and stilts used in the manufacture of earthen, por-
celain, and stone ware. -
670. Stamps; foreign postage or revenue stamps, canceled or
uncanceled.
671. Stone and sand: Burrstone in blocks, rough or unmanu-
factured; cliff stone unmanufactured; rotten stone, tripoli, and
sand, crude or manufactured, not otherwise provided for in
this Act. g
672. Storax, or styrax.
673. Strontia, oxide of, and protoxide of strontian, and stron-
tianite, or mineral carbonate of strontia.
674. Sulphur, lac or precipitated, and sulphur or brimstone,
crude, in bulk, sulphur ore as pyrites, or sulphuret of iron in its
natural state, containing in excess of twenty-five per centum of
sulphur, and sulphur not otherwise provided for.
675. Sulphuric acid which at the temperature of sixty degrees
Fahrenheit does not exceed the specific gravity of one and three
hundred and eighty thousandths, for use in manufacturing su-
perphosphate of lime or artificial manures of any kind, or for
any agricultural purposes: Proz/ided, That upon all sulphuric
acid imported from any country, whether independent or a de-
pendency, which imposes a duty upon sulphuric acid imported
into such country from the United States, there shall be levied
and collected a duty of one-fourth of one cent per pound.
676. Tamarinds.
677. Tapioca, cassava or cassady.
678. Tar and pitch of wood.
679. Tea and tea plants.
680. Teeth, natural, or unmanufactured.
681. Terra alba, not made from gypsum or plaster reck.
682. Terra japonica.
683. Tin ore, cassiterite or black oxide of tin, and tin in bars,
blocks, pigs, or grain or granulated.
684. Tobacco stems.
685. Tonquin, tonqua, or tonka beans.
686. Turmeric. -
687. Turpentine, Venice.
688. Turpentine, spirits of.
689. Turtles.
690. Types, old, and fit only to be remanufactured.
74 - F. B. VANDEGRIFT & CO.
691. Uranium, oxide and salts of.
692. Vaccine virus.
693. Valonia.
694. Verdigris, or subacetate of copper.
695. Wax, vegetable or mineral.
696. Wafers, unleavened or not edible.
697. Wearing apparel, articles of personal adornment, toilet
articles, and similar personal effects of persons arriving in the
United States; but this exemption shall only include such ar-
ticles as actually accompany and are in the use of, and as are
necessary and appropriate for the wear and use of such per-
sons, for the immediate purposes of the journey and present
comfort and convenience, and shall not be held to apply to mer-
chandise or articles intended for other persons or for sale:
Prozºided, That in case of residents of the United States re-
turning from abroad, all wearing apparel and other personal
effects taken by them out of the United States to foreign coun-
tries shall be admitted free of duty, without regard to their
value, upon their identity being established, under appropriate
rules and regulations to be prescribed by the Secretary of the
Treasury, but no more than one hundred dollars in value of ar-
ticles purchased abroad by such residents of the United States
shall be admitted free of duty upon their return.
698. Whalebone, unmanufactured.
699. Wood: Logs and round unmanufactured timber, includ-
ing pulp-woods, firewood, handle-bolts, shingle-bolts, gun-blocks
for gunstocks rough-hewn or sawed or planed on one side,
hop-poles, ship-timber and ship-planking; all the foregoing not
specially provided for in this Act.
700. Woods: Cedar, lignum-vitae, lancewood, ebony, box,
granadilla, mahogany, rosewood, satinwood, and all forms of
eabinet woods, in the log, rough, or hewn only; briar root or
briar wood and similar wood unmanufactured, or not further
advanced than cut into blocks suitable for the articles into
which they are intended to be converted; bamboo, rattan, reeds
unmanufactured, India malacca joints, and sticks of partridge,
hair wood, pimento, orange, myrtle, and other woods not spec-
ially provided for in this Act, in the rough, or not further ad-
vanced than cut into lengths suitable for sticks for umbrellas,
parasols, sunshades, whips, fishing rods, or walking canes.
701. Works of art, drawings, engravings, photographic pict-
ures, and philosophical and scientific apparatus brought by pro-
fessional artists, lecturers, or scientists arriving from abroad
for use by them temporarily for exhibition and in illustration,
promotion, and encouragement of art, science, or industry in
the United States, and not for sale, shall be admitted free of
duty, under such regulations as the Secretary of the Treasury
shall prescribe; but bonds shall be given for the payment to the
United States of such duties as may be imposed by law upon
any and all such articles as shall not be exported within six
months after such importation: Provided, That the Secretary
of the Treasury may, in his discretion, extend such period for
a further term of six months in cases where applications there-
for shall be made.
702. Works of art, collections in illustration of the progress of
the arts, sciences, or manufactures, photographs, works in ter-
ra cotta, parian, pottery, or porcelain, antiquities and artistic
TARIFF ACT, 1897. 75
copies thereof in metal or other material, imported in good
faith for exhibition at a fixed place by any State or by any so-
ciety or institution established for the encouragement of the
arts, science, or education, or for a municipal corporation, and
all like articles imported in good faith by any society or asso-
ciation, or for a municipal corporation for the purpose of erect-
ing a public monument, and not intended for sale, nor for any
other purpose than herein expressed; but bonds shall be given
under such rules and regulations as the Secretary of the Treas-
ury may prescribe, for.the payment of lawful duties which may
accrue should any of the articles aforesaid be sold, transferred,
or uscd contrary to this provision, and such articles shall be
subject, at any time, to examination and inspection by the
proper officers of the customs: Provided, That the privileges
of this and the preceding section shall not be allowed to asso-
ciations or corporations engaged in or connected with business
- of a private or commercial character.
703. Works of art, the production of American artists resid-
ing temporarily abroad, or other works of art, including pic-
torial paintings on glass, imported expressly for presentation
to a national institution, or to any State or municipal corpora-
tion, or incorporated religious society, college, or other public
institution, except stained or painted window glass or stained
or painted glass windows; but such exemption shall be subject
to such regulations as the Secretary of the Treasury may pre-
scribe.
704. Yams.
705. Zaffer. f *.
Sec. 3. That for the purpose of equalizing the trade of the
United States with foreign countries, and their colonies, pro-
ducing and exporting to this country the following articles:
Argols, or crude tartar, or wine lees, crude; brandies, or other
spirits manufactured or distilled from grain or other ma-
tºrials; champagne and all other sparkling wines; still wines.
and vermuth; paintings and statuary; or any of them, the Pres-
ident be, and he is hereby authorized, as soon as may be after
the passage of this Act, and from time to time thereafter, to
enter into negotiations with the governments of those countries
exporting to the United States the above-mentioned articles, or
any of them, with a view to the arrangement of commercial
agreements in which reciprocal and equivalent concessions may
be secured in favor of the products and manufactures of the
United States; and whenever the government of any country,
or colony, producing and exporting to the United States the
above-mentioned articles, or any of them, shall enter into a
commercial agreement with the United States, or make con-
cessions in favor of the products, or manufactures thereof,
which, in the judgment of the President, sha'i be reciprocal
and equivalent, he shall be, and he is hereby, authorized and
empowered to suspend, during the time of such agreement or
concession, by proclamation to that effect, the imposition and
collection of the duties mentioned in this Act, on such article or
articles so exported to the United States from such country or
colony, and thereupon and thereafter the duties levied, col-
lected, and paid upon such , rticle or articles shall be as fol-
lows, namely:
76 F. B. VANDEGRIFT & Co.
Argols, or crude tartar, or wine lees, crude, five per centum
ad Valorem.
Brandies, or other spirits manufactured or distilled from
grain or other materials, one dollar and seventy-five cents per
proof gallon. -
Champagne and all other sparkling wines, in bottles contain-
ing not more than one quart and more than one pint, six dol-
lars per dozen; containing not more than one pint each and
more than one-half pint, three dollars per dozen; containing
one-half pint each or less, one dollar and fifty cents per dozen;
in bottles or other vessels containing more than one quart each,
in addition to six dollars per dozen bottles on the quantities in
excess of one quart, at the rate of one dollar and ninety cents
per gallon. .
Still wines, and vermuth, in casks, thirty-five cents per gal-
lon; in bottles or jugs, per case of one dozen bottles or jugs
containing each not more than one quart and more than one
pint, or twenty-four bottles or jugs containing each not more
than one pint, one dollar and twenty-five cents per case, and
any excess beyond these quantities found in such bottles or
jugs shall be subject to a duty of four cents per pint or frac-
tional part thereof, but no separate or additional duty shall be
assessed upon the bottles or jugs.
Paintings in oil or water colors, pastels, pen and ink draw-
ings, and statuary, fifteen per centum ad valorem. -
The President shall have power, and it shall be his duty,
whenever he shall be satisfied that any such agreement in this
Section mentioned is not being fully executed by the Govern-
ment with which it shall have been made, to revoke such sus-
pension and notify such Government thereof.
And it is further provided that with a view to secure recipro-
cal trade with countries producing the following articles, when-
ever and so often as the President shall be satisfied that the
Government of any country, or colony of such Government,
producing and exporting directly or indirectly to the United
States coffee, tea, and tonquin, tonqua, or tonka beans, and
Vanilla beans, or any of such articles, imposes duties or other
exactions upon the agricultural, manufactured, or other pro-
ducts of the United States, which, in view of the introduction
of such coffee, tea, and tonquin, tonqua, or tonka beans, and
vanilla beans, into the United States, as in this Act hereinbe-
fore provided for, he may deem to be reciprocally unequal and
unreasonable, he shall have the power and it shall be his duty
to suspend, by proclamation to that effect, the provisions of this
Act relating to the free introduction of such coffee, tea, and
tonquin, tonqua, or tonka beans, and Vanilla beans, of the pro-
ducts of such country or colony, for such time as he shall deem
just; and in such case and during such suspension duties shall
be levied, collected, and paid upon coffee, tea, and tonquin,
tonqua, or tonka beans, and vanilla beans, the products or ex-
ports, direct or indirect, from such designated country, as fol-
lows:
On coffee, three cents per pound.
On tea, ten cents per pound. -
On tonquin, tonqua, or tonka beans, fifty cents per pound;
vanilla beans, two dollars per pound; vanilla beans, commer-
cially known as cuts, one dollar per pound.
TARIFF Act, 1897. 77
Sec. 4. That whenever the President of the United States,
by and with the advice and consent of the Senate, with a view
to secure reciprocal trade with foreign countries, shall, within
the period of two years from and after the passage of this Act,
enter into commercial treaty or treaties with any other coun-
try or countries concerning the admission into any such
country or countries of the goods, wares, and mer-
chandise of the United States and their use and disposition
therein, deemed to be for the interests of the United States,
and in such treaty or treaties, in consideration of the
advantages accruing to the United States therefrom, shall pro-
vide for the reduction during a specified period, not exceeding
five years, of the duties imposed by this Act, to the extent of
not more than twenty per centum thereof, upon such goods,
wares, or merchandise as may be designated therein of the
country or Countries with which such treaty or treaties shall be
made as in this section provided for; or shall provide for the
transfer during such period from the dutiable list of this Act
to the free list thereof of such goods, wares, and merchandise,
being the natural products of such foreign country or countries
and not of the United States; or shall provide for the retention
upon the free list of this Act during a specified period, not ex-
ceeding five years, of such goods, wares, and merchandise now
included in said free list as may be designated therein; and
when any such treaty shall have been duly ratified by the Sen-
ate and approved by Congress, and public proclamation made
accordingly, then and thereafter the duties which shall be col-
lected by the United States upon any of the designated goods,
wares, and merchandise from the foreign country with which
such treaty has been made shall, during the period provided
for, be the duties specified and provided for in such treaty, and
none other. -
Sec. 5. That whenever any country, dependency, or colony
shall pay or bestow, directly or indirectly, any bounty or grant
upon the exportation of any article or merchandise from such
country, dependency, or colony, and such article or merchandise
is dutiable under the provisions of this Act, then upon the im-
portation of any such article or merchandise into the United
States, whether the same shall be imported directly from the
country of production or otherwise, and whether such article
or merchandise is imported in the same condition as when ex-
ported from the country of production or has been changed in
condition by remanufacture or otherwise, there shall be levied
and paid, in all such cases, in addition to the duties otherwise
imposed by this Act, an additional duty equal to the net
amount of such bounty or grant, however the same be paid or
bestowed. The net amount of all such bounties or grants shall
be from time to time ascertained, determined, and declared by
the Secretary of the Treasury, who shall make all needful
regulations for the identification of such articles and merchan-
dise and for the assessment and collection of such additional
duties. -
Sec. 6. That there shall be levied, collected, and paid on the
importation of all raw or unmanufactured articles, not enu-
merated or provided for in this Act, a duty of ten per centum
ad valorem, and on all articles manufactured, in whole or in
7S F. B. VANDEGRIFT & Co.
part, not provided for in this Act, a duty of twenty per centum
ad valorem.
Sec. 7. That each and every imported article, not enumerated
in this Act, which is similar, either in material, quality, texture,
or the use to which it may be applied, to any article enumer-
ated in this Act as chargeable with duty, shall pay the same
rate of duty which is levied on the enumerated article which
it most resembles in any of the particulars before mentioned;
and if any nonenumerated article equally resembles two or
more enumerated articles on which different rates of duty are
chargeable, there shall be levied on such nonenumerated article
the same rate of duty as is chargeable on the article which it
resembles paying the highest rate of duty; and on articles not
enumerated, manufactured of two or more materials, the duty
shall be assessed at the highest rate at which the same would
be chargeable if composed wholly of the component material
thereof of chief value; and the words “component material of
chief value,” wherever used in this Act, shall be held to mean
that component material which shall exceed in value any other
single component material of the article; and the value of each
component material shall be determined by the ascertained
value of such material in its condition as found in the article.
If two or more rates of duty shall be applicable to any im-
ported article, it shall pay duty at the highest of such rates.
Sec. 8. That all articles of foreign manufacture, such as are
usually or ordinarily marked, stamped, branded, or labeled, and
all packages containing such or other imported articles, shall,
respectively, be plainly marked, stamped, branded, or labeled in
legible English words, in a conspicuous place, so as to indicate
the country of their origin and the quantity of their contents;
and until so marked, stamped, branded, or labeled they shall
not be delivered to the importer. Should any article of im-
ported merchandise be marked, stamped, branded, or labeled so
as to indicate a quantity, number, or measurement in excess of
the quantity, number, or measurement actually contained in
such article, no delivery of the same shall be made to the im-
porter until the mark, stamp, brand, or label, as the case may
be, shall be changed so as to conform to the facts of the case.
Sec. 9. That section thirty-three hundred and forty-one of
the Revised Statutes of the United States be, and hereby is,
amended to read as follows: -
“Sec. 3341. The Commissioner of Internal Revenue shall
cause to be prepared, for the payment of such tax, suitable
stamps denoting the amount of tax required to be paid on the
hogsheads, barrels, and halves, thirds, quarters, sixths, and
eighths of a barrel of such fermented liquors (and shall also
cause to be prepared suitable permits for the purpose herein-
after mentioned), and shall furnish the same to the collectors of
internal revenue, who shall each be required to keep on hand
at all times a sufficient supply of permits and a supply of
stamps equal in amount to two months’ sales thereof, if there
be any brewery or brewery warehouse in his district; and such
stamps shall be sold, and permits granted and delivered by such
collectors, only to the brewers of their district, respectively.
“Such collectors shall keep an account of the number of per-
mits delivered and of the number and value of the stamps sold
by them to each brewer.”
TARIFF ACT, 1897. - 79
Sec. 10. That section thirty-three hundred and ninety-four
of the Revised Statutes of the United States, as amended, be,
and the same is hereby, further amended, so as to read as fol-
lows: -
“Upon cigars which shall be manufactured and sold, or re-
moved for consumption or sale, there shall be assessed and col-
lected the following taxes, to be paid by the manufacturer
thereof: On cigars of all descriptions made of tobacco, or any
substitute therefor, and weighing more than three pounds per
thousand, three dollars per thousand; on cigars, made of to-
bacco, or any substitute therefor, and weighing not more than
three pounds per thousand, one dollar per thousand; on cigar-
ettes, made of tobacco, or any substitute therefor, and weigh-
ing more than three pounds per thousand, three dollars per
thousand; on cigarettes, made of tobacco, or any substitute
therefor, and weighing not more than three pounds per thous-
and, one dollar per thousand: Proz/ided, That all rolls of to-
bacco, or any substitute therefor, wrapped with tobacco, shall
be classed as cigars, and all rolls of tobacco, or any substitute
therefor, wrapped in paper or any substance other than to-
bacco, shall be classed as cigarettes.
“And the Commissioner of Internal Revenue, with the ap-
proval of the Secretary of the Treasury, shall provide dies and
adhesive stamps for cigars weighing not more than three
pounds per thousand: Proz/ided, That such stamps shall be in
denominations of ten, twenty, fifty, and one hundred, and the
laws and regulations governing the packing and removal for
sale of cigarettes, and the affixing and cancelling of the stamps
on the packages thereof, shall apply to cigars weighing not
more than three pounds per thousand.
“None of the packages of smoking tobacco and fine-cut chew-
ing tobacco and cigarettes prescribed by law shall be permitted
to have packed in, or attached to, or connected with, them, any
article or thing whatsoever, other than the manufacturers'
wrappers and labels, the internal revenue stamp and the to-
bacco or cigarettes, respectively, put up therein, on which tax
is required to be paid under the internal revenue laws; nor
shall there be affixed to, or branded, stamped, marked, written,
or printed upon said packages, or their contents, any promise
or offer of, or any order or certificate for, any gift, prize, prem-
ium, payment, or reward.
Sec. 11. That no article of imported merchandise which shall
copy or simulate the name or trade-mark of any domestic man-
ufacture or manufacturer, or which shall bear a name or mark,
which is calculated to induce the public to believe that the ar-
ticle is manufactured in the United States, shall be admitted
to entry at any custom-house of the United States. And in or-
der to aid the officers of the customs in enforcing this prohibi-
tion, any domestic manufacturer who has adopted trade-marks
may require his name and residence and a description of his
trade-marks to be recorded in books which shall be kept for that
purpose in the Department of the Treasury, under such regu-
lations as the Secretary of the Treasury shall prescribe, and
may furnish to the Department facsimiles of such trade-marks;
and thereupon the Secretary of the Treasury shall cause one or
more copies of the same to be transmitted to each collector or
other proper officer of the customs.
80 F. B. VANDEGRIFT & Co.
Sec. 12. That all materials of foreign production which may
be necessary for the construction of vessels built in the United
States for foreign account and ownership, or for the purpose of .
being employed in the foreign trade, including the trade be-
tween the Atlantic and Pacific ports of the United States, and
all such materials necessary for the building of their ma-
, chinery, and all articles necessary for their outfit and equip-
ment, may be imported in bond under such regulations as the
Secretary of the Treasury may prescribe; and upon proof that
such materials have been used for such purposes no duties shall
be paid thereon. But vessels receiving the benefit of this sec-
tion shall not be allowed to engage in the coastwise trade of
the United States more than two months in any one year ex-
cept upon the payment to the United States of the duties of
which a rebate is herein allowed: Proz/ided, That vessels built
in the United States for foreign account and ownership shall
not be allowed to engage in the coastwise trade of the United
States.
Sec. 13. That all articles of foreign production needed for
the repair of American vessels engaged in foreign trade, in-
cluding the trade between the Atlantic and Pacific ports of the
United States, may be withdrawn from bonded warehouses
free of duty, under such regulations as the Secretary of the
Treasury may prescribe.
Sec. 14. That the sixteenth section of an Act entitled “An
Act to remove certain burdens on the American merchant ma-
rine and encourage the American foreign carrying trade, and
for other purposes,” approved June twenty-sixth, eighteen
hundred and eighty-four, be amended so as to read as follows:
“Sec. 16. That all articles of foreign or domestic production
needed and actually withdrawn from bonded warehouses and
bonded manufacturing warehouses for supplies (not including
equipment) of vessels of the United States engaged in foreign
trade, or in trade between the Atlantic and Pacific ports of the
United States, may be so withdrawn from said bonded ware-
houses, free of duty or of internal-revenue tax, as the case may
be, under such regulations as the Secretary of the Treasury
may prescribe; but no such articles shall be landed at any port
of the United States.”
Sec. 15. That all articles manufactured in whole or in part
of imported materials, or of materials subject to internal-
revenue tax, and intended for exportation without being
charged with duty, and without having an internal-revenue
stamp affixed thereto, shall, under such regulations as the Sec-
retary of the Treasury may prescribe, in order to be so manu-
factured and exported, be made and manufactured in bonded
warehouses similar to those known and designated in Treas:
ury Regulations as bonded warehouses, class six: Provided,
That the manufacturer of such articles shall first give satis-
factory bonds for the faithful observance of all the provisions
of law and of such regulations ag shall be prescribed by the
Secretary of the Treasury: Provided, further, That the manu-
facture of distilled spirits from grain, starch, molasses or sugar,
including all dilutions or mixtures of them or either of them,
shall not be permitted in such manufacturing warehouses.
Whenever goods manufactured in any bonded warehouses es-
tablished under the provisions of the preceding paragraph shall
TARIFF ACT, 1879. 81
be exported directly therefrom or shall be duly laden for trans-
portation and immediate exportation under the supervision of
the proper officer who shall be duly designated for that pur-
pose, such goods shall be exempt from duty and from the re-
quirements relating to revenue stamps.
Any materials used in the manufacture of such goods, and
any packages, coverings, vessels, brands, and labels used in
putting up the same may, under the regulations of the Seere-
tary of the Treasury, be conveyed without the payment of
revenue tax or duty into any bonded manufacturing warehouse,
and imported goods may, under the aforesaid regulations, be
transferred without the exaction of duty from any bonded
warehouse into any bonded manufacturing warehouse; but this
privilege shall not be held to apply to implements, machinery,
or apparatus to be used in the construction or repair of any
bonded manufacturing warehouse or for the prosecution of the
business carried on therein.
No articles or materials received into such bonded manu-
facturing warehouse shall be withdrawn or removed therefrom
except for direct shipment and exportation or for transporta-
tion and immediate exportation in bond under the supervision
of the officer duly designated therefor by the collector of the
port, who shall certify to such shipment and exportation, or
ladening for transportation, as the case may be, describing the
articles by their mark or otherwise, the quantity, the date of
exportation, and the name of the vessel. All labor performed
and services rendered under these provisions shall be under the
supervision of a duly designated officer of the customs and at
the expense of the manufacturer.
A careful account shall be kept by the collector of all mer-
charidise delivered by him to any bonded manufacturing ware-
house, and a sworn monthly return, verified by the customs of-
ficers in charge, shall be made by the manufacturers, containing
a detailed statement of all imported merchandise used by him
in the manufacture of exported articles.
Before commencing business the proprietor of any manufac-
turing warehouse shall file with the Secretary of the Treasury
a list of all the articles intended to be manufactured in such
warehouse, and state the formula of manufacture and the
names and quantities of the ingredients to be used therein.
Articles manufactured under these provisions may be with-
drawn under such regulations as the Secretary of the Treasury
may prescribe for transportation and delivery into any bonded
warehouse at an exterior port for the sole purpose of immediate
export therefrom.
The provisions of Revised Statutes thirty-four hundred and
thirty-three shall, so far as may be practicable, apply to any
bonded manufacturing warehouse established under this Act
and to the merchandise conveyed therein.
Sec. 16. That all persons are prohibited from importing into
the United States from any foreign country any obscene book,
pamphlet, paper, writing, advertisement, circular, print, pict-
ure, drawing, or other representation, figure, or image on or
of paper or other material, or any cast, instrument, or other
article of an immoral nature, or any drug or medicine, or any
article whatever for the prevention of conception or for caus-
ing unlawful abortion, or any lottery ticket or any advertise-
82 F. B. VANDEGRIFT & Co.
ment of any lottery. No such articles, whether imported sepa-
rately or contained in packages with other goods entitled to
entry, shall be admitted to entry; and all such articles shall be
proceeded against, seized, and forfeited by due course of law.
All such prohibited articles and the package in which they are
contained in the course of importation shall be detained by the
officer of customs, and proceedings taken against the same as
hereinafter prescribed, unless it appears to the satisfaction of
the collector of customs that the obscene articles contained in
the package were inclosed therein without the knowledge or
consent of the importer, owner, agent, or consignee: Provided,
That the drugs hereinbefore mentioned, when imported in bulk
and not put up for any of the purposes hereinbefore specified,
are excepted from the operation of this section.
Sec. 17. That whoever, being an officer, agent, or employee
of the Government of the United States, shall knowingly aid
or abet any person engaged in any violation of any of the pro-
visions of law prohibiting importing, advertising, dealing in, ex-
hibiting, or sending or receiving by mail obscene or indecent
publications or representations, or means for preventing con-
ception or procuring abortion, or other articles of indecent or
immoral use or tendency, shall be deemed guilty of a misde-
meanor, and shall for every offense be punishable by a fine of
not more than five thousand dollars, or by imprisonment at hard
labor for not more than ten years, or both.
Sec. 18. That any judge of any district or circuit court of the
United States, within the proper district, before whom com-
plaint in writing of any violation of the two preceding sections
is made, to the satisfaction of such judge, and founded on
knowledge or belief, and if upon belief, setting forth the
grounds of such belief, and supported by oath or affirmation of
the complainant, may issue, conformably to the Constitution, a
Warrant directed to the marshal or any deputy marshal in the
proper district, directing him to search for, seize, and, take pos-
session of any such article or thing mentioned in the two pre-
ceding sections, and to make due and immediate return thereof
to the end that the same may be condemned and destroyed by
proceedings, which shall be conducted in the same manner as
other proceedings in the case of municipal seizure, and with
the same right of appeal or writ of error.
Sec. 19. That machinery for repair may be imported into the
United States without payment of duty, under bond, to be
given in double the appraised value thereof, to be withdrawn
and exported after said machinery shall have been repaired;
and the Secretary of the Treasury is authorized and directed
to prescribe such rules and regulations as may be necessary
to protect the revenue against fraud and secure the identity
and character of all such importations when again withdrawn
and exported, restricting and limiting the export and with-
drawal to the same port of entry where imported, and also
limiting all bonds to a period of time of not more than six
months from the date of the importation.
Sec. 20. That the produce of the forests of the State of
Maine upon the Saint John River and its tributaries, owned by
American citizens, and sawed or hewed in the Province of New
Brunswick by American citizens, the same being otherwise un-
manufactured in whole or in part, which is now admitted into
TARIFF ACT, 1897. * 83
the ports of the United States free of duty, shall continue to
be so admitted, under such regulations as the Secretary of the
Treasury shall from time to time prescribe.
Sec. 21. That the produce of the ſorests of the State or
Maine upon the Saint Croix Eiver and its tributaries owned by
American citizens, and sawed or newed in the Province of
New Brunswick by American citizens, the same being other-
wise unmanufactured in whole or in part, shall be admitted
into the ports of the United States free of duty, under such
regulations as the Secretary of the Treasury shall from time
to time prescribe.
Sec. 22. That a discriminating duty of ten per centum ad va-
lorem, in addition to the duties imposed by law, shall be levied,
collected, and paid on all goods, wares, or merchandise which
shall be imported in vessels not of the United States, or which
being the production or manufacture of any foreign country
not contiguous to the United States, shall come into the United
States from such contiguous country; but this discriminating
duty shall not apply to goods, wares, or merchandise which shall
be imported in vessels not of the United States, entitled at the
time of such importation by treaty or convention to be entered
in the ports of the United States on payment of the same duties
as shall then be payable on goods, wares, and merchandise im-
ported in vessels of the United States, nor to such foreign pro-
ducts or manufactures as shall be imported from such contigu-
ous countries in the usual course of strictly retail trade.
Sec. 23. That no goods, wares, or merchandise, unless in cases
provided for by treaty, shall be imported into the United States
from any foreign port or place, except in vessels of the United
States, or in such foreign vessels as truly and wholly belong to
the citizens or subjects of that country of which the goods are
the growth, production, or manufacture, or from which such
goods, Wares, or merchandise can only be, or most usually are,
first shipped for transportation. All goods, wares, or merchan-
dise imported contrary to this section, and the vessel wherein
the same shall be imported, together with her cargo, tackle, ap-
parel, and furniture, shall be forfeited to the United States;
and such goods, wares, or merchandise, ship, or vessel, and car-
go shall be liable to be seized, prosecuted, and condemned in
like manner, and under the same regulations, restrictions, and
provisions as have been heretofore established for the recovery,
collection, distribution, and remission of forfeitures to the
United States by the several revenue laws.
Sec. 24. 'That the preceding section shall not apply to ves-
sels or goods, wares, or merchandise imported in vessels of a
foreign nation which does not maintain a similar regulation
against vessels of the United States. -
Sec. 25. That the importation of neat cattle and the hides of
neat cattle from any foreign country into the United States is
prohibited: Provided, That the operation of this section shall
be suspended as to any foreign country or countries, or any
parts of such country or countries, whenever the Secretary of
the Treasury shall officially determine, and give public notice
thereof that such importation will not tend to the introduction
or spread of contagious or infectious diseases among the cattle
of the United States; and the Secretary of the Treasury is
hereby authorized and empowered, and it shall be his duty, to
84 F. B. VANDEGRIFT & CO.
make all necessary orders and regulations to carry this section
into effect, or to suspend the same as herein provided, and to
send copies thereof to the proper officers in the United States,
and to such officers or agents of the United States in foreign
countries as he shall judge necessary.
Sec. 26. That any person convicted of a willful violation of
any of the provisions of the preceding section shall be fined not
exceeding five hundred dollars, or imprisoned not exceeding one
year, or both, in the discretion of the court.
Sec. 27. That upon the reimportation of articles once ex-
ported, of the growth, product, or manufacture of the United
States, upon which no internal tax has been assessed or paid,
or upon which such tax has been paid and refunded by allow-
ance or drawback, there shall be levied, collected, and paid a
duty equal to the tax imposed by the internal-revenue laws
upon such articles, except articles manufactured in bonded
warehouses and exported pursuant to law, which shall be sub-
ject to the same rate of duty as if originally imported.
Sec. 28. That whenever any vessel laden with merchandise,
in whole or in part subject to duty, has been sunk in any river,
harbor, bay, or waters subject to the jurisdiction of the United
States, and within its limits, for the period of two years, and
is abandoned by the owner thereof, and person who may
raise such vessel shall be permitted to bring any merchandise
recovered therefrom into the port nearest to the place where
such vessel was so raised free from the payment of any duty
thereupon, but under such regulations as the Secretary of the
Treasury may prescribe. -
Sec. 29. That the works of manufacturers engaged in smelt-
ing or refining metals, or both smelting and refining, in the
United States may be designated as bonded warehouses under
such regulations as the Secretary of the Treasury may pre-
scribe: Proz/ided, That such manufacturers shall first give
satisfactory bonds to the Secretary of the Treasury. Ores or
metals in any crude form requiring smelting or refining to make
them readily available in the arts, imported into the United
Stated to be smelted or refined and intended to be exported in
a refined but unmanufactured state, shall, under such rules as
the Secretary of the Treasury may prescribe, and under the
direction of the proper officer, be removed in original packages
or in bulk from the vessel or other vehicle on which they have
been imported, or from the bonded warehouse in which the
same may be, into the bonded warehouse in which such smelt-
ing or refining, or both, may be carried on, for the purpose of
being smelted or refined, or both, without payment of duties
thereon, and may there be smelted or refined, together with
other metals of home or foreign production: Proz/ided, That
each day a quantity of refined metal equal to ninety per cen-
tum of the amount of imported metal smelted or refined that
day shall be set aside, and such metal so set aside shall not be
taken from said works except for transportation to another
bonded warehouse or for exportation, under the direction of the
proper officer having charge thereof as aforesaid, whose certi-
f c..te, describing the articles by their marks or otherwise, the
quantity, the date of importation, and the name of vessel or
other vehicle by which it was imported, with such additional
TARIFF ACT, 1897. 85
particulars as may from time to time be required, shall be re-
ceived by the collector of customs as sufficient evidence of the
exportation of the metal, or it may be removed under such
regulations as the Secretary of the Treasury nay prescribe,
upon entry and payment of duties, for domestic consumption,
and the exportation of the ninety per centum of metals herein-
before provided for shall entitle the ores and metals imported
under the provisions of this section to admission without pay-
ment of the duties thereon: Proz/ided, further, That in respect
to lead ores imported under the provisions of this section the
refil.ed metal set aside shall either be re-export d or the regu-
lar duties paid thereon within six months from the date of the
receipt of the ore. All labor performed and services rendered
under these regulations shall be under the supervision of an
of.icer of the customs, to be appointed by the Secretary of the
Treasury, and at the expense of the manufacturer. -
Sec. 30. That where imported materials on which duties have
been paid are used in the manufacture of articles manufae-
tured or produced in the United States, there shall be allowed
on the exportation of such articles a drawback equal in amount
to the duties paid on the materials used, less one per centum of
su ºh duties: Prozyżded, That when the articles exported are
made in part from domestic materials the imported materials,
or the parts of the articles made from such materials, shall so
appear in the completed articles that the quantity or measure
thereof may be ascertained: And provided further, That the
drawback on any article allowed under existing law shall be
continued at the rate herein provided. That the imported ma-
terials used in the manufacture or production of articles en-
titled to drawbacks of customs duties when exported shall, in
all cases where drawback of duties paid on such materials is
claimed, be identified, the quantity of such materials used and
the amount of duties paid thereon shall be ascertained, the
facts of the manufacture or production of such articles in the
lſnited States and their exportation therefrom shall be deter-
mined, and the drawback due thereon shall be paid to the
manufacturer, producer, or exporter, to the agent of either or
to the person to whom such manufacturer, producer, exporter,
or agent shall in writing order such drawback paid, under such
regulations as the Secretary of the Treasury shall prescribe.
Sec. 31. That all goods, wares, articles and merchandise
manufactured wholly or in part in any foreign country by cou-
vict labor shall not be entitled to entry at any of the ports of
the United States, and the importation thereof is hereby pro-
hibited, and the Secretary of the Treasury is authorized and
directed to prescribe such regulations as may be necessary for
the enforcement of this provision.
Sec. 32. That sections seven and eleven of the Act entitled
“An Act to simplify the laws in relation to the collection of
the revenues,” approved June tenth, eighteen hundred and
ninety, be, and the same are hereby, amended so as to read as
follows: - -
Sec. 7. That the owner, consignee, or agent of any imported
merchandise which has been actually purchased may, at the
time when he shall make and verify his written entry of such
merchandise, but not afterwards, make such addition in the
86 F. B. VANDEGRIFT & Co.
entry to the cost or value given in the invoice or pro forma in-
voice or statement in form of an in voice, which he shall pro-
duce with his entry, as in his opinion may raise the same to the
actual market value or wholesale price of such merchandise at
the time of exportation to the United States, in the principal
Inarkets of the country from which the same has been im-
ported; but no such addition shall be made upon entry to the
invoice value of any imported merchandise obtained otherwise
than by actual purchase; and the collector within whose dis-
trict any merchandise may be imported or entered, whether the
same has been actually purchased or procured otherwise than
by purchase, shall cause the actual market value or wholesale
price of such merchandise to be appraised; and if the appraised
value of any article of imported merchandise subject to an ad
valorem duty or to a duty based upon or regulated in any man-
ner by the value thereof shall exceed the value declared in the
entry, there shall be levied, collected, and paid, in addition to
the duties imposed by law on such merchandise, an additional
duty of one per centum of the total appraised value thereof for
each one per centum that such appraised value exceeds the
value declared in the entry, but the additional duties shall only
apply to the particular article or articles in each invoice that
are so undervalued, and shall be limited to fifty per centum of
the appraised value of such article or articles. Such additional
duties shall not be construed to be penal, and shall not be re-
mitted, nor payment thereof in any way avoided, except in
cases, arising from a manifest clerical error, nor shall they be
refunded in case of exportat. In of the merchandise, or on any
other account, nor shall they be subject to the benefit of draw-
back: Proz/ided, That if the appraised value of any merchan-
dise shall exceed the value declared in the entry by more than
fifty per centum, except when arising from a manifest clerical
error, such entry shall be held to be presumptively fraudulent,
and the collector of customs shall seize such merchandise and
proceed as in case of forfeiture for violatic n of the customs
laws, and in any legal proceeding that may result from such
seizure, the undervaluation as shown by the appraisal shall be
presumptive evidence of fraud, and the burden of proof shall
be on the claimant to rebut the same and forfeiture shall be
adjudged unless he shall rebut such presumption of fraudulent
intent by sufficient evidence. The forfeiture provided for in
this section shall apply to the whole of the merchandise or the
value thereof in the case or package containing the particular
article or articles in each invoice which are undervalued:
Provided further, That all additional duties, penalties or for-
feitures applicable to merchandise entered by a duly certified
invoice, shall be alike applicable to merchandise entered by a
pro forma invoice or statement in the form of an invoice, and
no forfeiture or disability of any kind, incurred under the pro-
visions of this section shall be remitted or mitigated by the Sec-
retary of the Treasury. The duty shall not, bowever, be as-
sessed in any case upon an amount less than the invoice or en-
tered value.
Sec. 11. That, when the actual market value as defined by
law, of any article of imported merchandise, wholly or partly
manufactured and subject to an ad valorem duty, or to a duty
TARIFF ACT, 1897. - 87
based il, whole or in part on value, cannot e otherwise ascer-
tained to the satisfaction of the appraising officer, such officer
ehall use all available means in his power to ascertain the cost
of production of such merchandise at the time of exportation
to the United States, and at the place of manufacture; such
cost of production to include the cost of materials and of fab-
rication, all general expenses covering each and every outlay
of whatsoever nature incident to such-production, together with
the expense of preparing and putting up such merchandise
ready for shipment, and an addition of not less than eight nor
more than fifty per centum upon the total cost as thus ascer-
tained; and in no case shall such merchandise be appraised upon
original appraisal or reappraisement at less than the total cost
of production as thus ascertained. It shall be lawful for ap-
praising officers, in determining the duitable value of such mer-
chandise, to take into consideration the wholesale price at
which such or similar merchandise is sold or offered for sale in
the United States, due allowance being made for estimated
duties thereon, the cost of transportation, insurance, and other
necessary expenses from the place of shipment to the United
States, and a reasonable commission, if any has been paid, not
exceeding six per centum. - -
Sec. 33. That on and after the day when this Act shall go
into effect all goods, wares, and merchandise previously im-
ported, for which no entry has been made, and all goods,
wares, and merchandise previously entered without payment of
duty and under bond for warehousing, transportation, or any
other purpose, for which no permit of delivery to the importer
or his agent has been issued, shall be subjected to the duties
imposed by this Act and to no other duty, upon the entry or
the withdrawal thereof: Provided, That when duties are
based upon the weight of merchandise deposited in any public
or private bonded warehouse, said duties shall be levied and
collected upon the weight of such merchandise at the time of its
entry.
Sec. 34. That sections one to twenty-four, both inclusive, of
an Act entitled “An Act to reduce taxation, to provide revenue
for the Government, and for other purposes,” which became a
law on the twenty-eighth day of August, eighteen hundred and
ninety-four, and all acts and parts of acts inconsistent with the
provisions of this Act are hereby repealed, said repeal to take
effect on and after the passage of this Act, but the repeal of
existing laws or modifications thereof embraced in this Act
shall not affect any act done, or any right accruing or accrued,
or any suit or proceeding had or commenced in any civil cause
before the said repeal or modifications; but all rights and lia-
bilities under said laws shall continue and may be enforced in
the same manner as if said repeal or modifications had not been
made. Any offenses committed and all penalties or forfeitures
or liabilities incurred prior to the passage of this Act under any
statute embraced in or changed, modified, or repealed by this
Act may be prosecuted or punished in the same manner and
with the same effect as if this Act had not been passed. All
Acts of limitation, whether applicable to civil causes and pro-
ceedings or to the prosecution of offenses or for the recovery of
penalties or forfeitures embraced in or modified, changed, or re-
88 F. B. VANDEGRIFT & CO.
pealed by this Act shall not be affected thereby; and all suits
proceedings, or prosecutions, whether civil or criminal, for
causes arising or acts done or committed prior to the passage
of this Act may be commenced and prosecuted within the same
time and with the same effect as if this Act had 10t been
pºssed: And provided further, That nothing in this Act shall
be construed to repeal the provisions of section three thousand
and fifty-eight of the Revised Statutes as amended by the Act
approved February twenty-third, eighteen hundred and eighty-
seven, in respect to the abandonment of merchandise to under-
writers or the salvors of property, and the ascertainment of
duties thereon: And provided further, That nothing in this
Act shall be construed to repeal or in any manner affect the
sections numbered seventy-three, seventy-four, seventy-five,
seventy-six and seventy-seven of an Act entitled “An Act to
reduce taxation, to provide revenue for the Government, and
for other purposes,” which became a law on the twenty-eighth
day of August, eighteen hundred and ninety-four.
Approved July 24, 1897.
Alphabetical Schedule of Duties.
Abbreviation n. S. p. f. means “Not specially provided for.”
By reference to any published schedule of the Tariff of 1894 the
relative rates of duty can be compared.
We give each article and the rate of duty and paragraph of the
law, in order that you may refer to the paragraph under which we
classify the article for duty.
We do not hold ourselves responsible for any errors of judgment
or typographical errors which may have occured in classifying the
the articles for duty.
A.
Par. Article. Rat
Sec. 16 Abortion, articles to
CallSe . . . . . . . prohibited
292 Absinthe . . . . . . . . . . . $2.25 gal
453 Accordions
1 Acid, n. S. p. f. . . . . . . .
1 “ acetic, not ex. S.
.G. 1 47-1000. . . . . . $4c Ib
ex. S. G. 1 47-1000 2C ib
464 “ arsenic . . . . . . . . . . . Free
464 “ benzoic . . . . . . . . . . . Free
1 “ boracic . . . . . . . . ... 5c Ib
464 “ C--- bolic . . . . . . . . . . . Free
1 “ Chromic . . . . . . . . . . 3C Ib
1 “ citric . . . . . . . . . . . . . 7C Ib
464 “ fluoric . . . . . . . . . . . . Free
464 “ hydrochloric . . . . . . Free
1 “ lactic . . . . . . . . . . . .3c Ib
464 “ muriatic . . . . . . . . . . Free
464 “ nitric . . . . . . . . . . . . . Free
464 “ nitro-picric . . . . . . . Free
464 “ Oxalic . . . . . . . . . . . .JFree
464 “ phosphoric . . . . . . . . Free
464 “ phthalic . . . . . . . . . . Free
464 “ picric . . . . . . . . . . . . . Free
464 “ prussic . . . . . . . . . . . Free
1 “ pyroligneous, not
ex S. G. 147-1000 % c Ib
ex S. G. I 47-1000 2C Ib
32 “ ricinoleic. ( See
Alizarin asst.)
1 “ Salicylic . . . . . . . . . 10c
464 “ Silicic . . . . . . . . . . . . . Free
675 “ sulphuric for agri-
Cultural purposes... Free
1 “ Sulphuric, n. S. p.
f : . . . . . . . . . . . . . ..}4c Ib
1 “ tartaric . . . . . . . ... 7c Ib
1 “ tannic . . . . . . . . . . .50c Ib
464 “ valerianic . . . . . . . . Free
465 Aconite . . . . . . 2 * * * * * * * * * Free
283 Acorns as coffee sub. 2% c no
466 “ raw . . . . . . . . . . . . . . . Free
115 Agate manufactures n.
* S. p. f. . . . . . . . . . . . . 50%
Par. Article. Rate
467 Agates unmfd . . . . . . . . . Free
23 Agar-agar, according to
value.
460 Agricultural implements 26%
117 Alabaster blocks ...12c cu. ft
11ö “ manufactures, n. s.
p. f. . . . . . . . . . . . . . . 50%
174 Albata, crude. . . . . . . . . . 25%
193 “ manufactures of .. 45%
245 Albumen, egg or blood.3c Ib
468 “ n. S. p. f. . . . . . . . . Free
404 A l b u m s, photograph,
scrap, autograph... 35%
38 Alcohol, amylic . . . . . . .34c lb
289 “ grain . . . . . . . . . $2.25 gal
ScC. 6 “ wood . . . . . . . . . . . ... 20%
2 Alcoholic Compounds,
60c Ib & 45%
2 “ perfumery toilet
water . . . .60c Ib & 45%
297 Ale in bottles. . . . . . . .40c gal
297 “ in bulk . . . . . . . . 20c gal
469 Allzarin . . . . . . . . . º e º e e º e Free
32 “ assistant, COI).
under 50% castor
oil . . . . . . . . . . . . . 15c gal
“ con. over 50% cas-
tor oil . . . . . . . . . .30C E .l
“ assistant, n. S. p.
e e e º e s e e s e e e a e o e s . 30%
469 “ dyes ... . . . . . . . . . . . Free
3 Alkalies and alkaloids... 25%
73 “ cont’g over 50%
B. of S. . . . . . . . . . $4c no
287 Allspi ground . . . . . . .3c Ib
667 '' urground . . . . . . . . . Free
269 Almonds. (See Nuts.)
611 Althea root, leaves or
flowers, crude . . . . Free
4 Alum, alum cake and
alum patent. . . . . . Ac Ib
4 ** in crystals O T
ground . . . . . . . . . .%C Ib
4 Alumina and hydrate
of . . . . . . • * * * * * * 6-10c ſh
4 “ sulphate of . . . . . 140 It
90
F. B. VANDEGRIFT & CO.
Par.
4
172
175
193
172
470
448
471
470
5
5
5
663
258
127
480
472
496
499
473
47 's
222
475
173
476
142
Article. Rate.
Aluminous cake . . . . . . *c Ib
Aluminum, Crude. . . . . . 8C Ib
& 4 leaf, plage
100 leaves . . . . . . . . 6c
“ m s., n. S. p. f. . . . 45%
“ plates, sheets, bars
and rods . . . . . . . . 13c Ib
Amber, Crude . . . . . . . . . . Free
“ mfs. of . . . . . . . . . . . 25%
Ambergrls . . . . . . . . . . . . . Free
Amberoid, crude . . . . . 1. Free
Ammonia, carbonate
of . . . . . . . . . . . . . ..1% Ib
46 muriate of ....94c Ib
sulphate of . . . .3-10c Ib
Anatomy, preparations
of . . . . . . . . . . . . . . . . Free
Anchov les. (See Fish.)
Anchors, iron . . . . . . . . %c Ib
An Iline, arseniate of... Free
** salts
An Innal bladders, crude Free
“ carbon . . . . . . . . . . . . Free
An Imals for breeding
purposes
“ for exhibition..... Free
“ live, n. S. p. f. . . . .
Annatto, and extracts
of . . . . . . . . . . . . . . . . Free
Antimony
“ ore,
phite of
Anvils of iron or steel,
1%c Ib
Apatite Free
Apple stocks. . $1.00 M & 15%
Apples, dried C Ib
“ green or ripe. ... 25c bu
Par.
Sec. 6 Articles
Sec. 6 Articles
58
486
484
448
485
93
93
93
143
193
251
273
343
417
487
700
559
536
22
488
223
224
225
220
205
204
44
489
44
44
46
44
208
Article. Rate.
manufac-
tured, n. S. p. f.... 20%
unmanufac-
tured, n. s. p. f... 10%
Artists’ colors
Asafetida
Asbestos, crude
“ manufactured
Ashes, beet-root
WOOd
Asphalt, limestone rock
contg not over 15%
bitumen . . . . . . . 50c ton
Asphaltun, crude, n. s.
P. f. . . . . . . . . . . $1.50 ton
“ dried, n. S. p. f.,
$3.00 ton
Axles, axle bars, blanks
of and forgings for,
Valued not over
“ valued over 6c Ib. .45%
Azaleas . . . . . . . . . . . . . . . . 25%
Bacon
Bags jute, not dyed nor
ex. 30 threads to
sq in....7%c Ib and 15%
Balls, bagatelle, billiard,
Chess, or pool . . . . 50%
Balm of Gilead . . . . . . . . Free
Bamboo for canes or
umbrella. Sticks... Free
Bananas, green or ripe. Free
Bark, cork uncut...... Free
“ extract, n. s. p. f.7% c no
“ quinine . . . . . . . . . . . Free
Barley, bu. 48 Ibs....
“ malt, bu. 34 Ibs. .45c bu
“ patent and hulled. 2C Ib
“ pearled . . . . . . . . . . . 2C Ib
Barrels con. Oranges,
lemons, l i m e s,
grape fruit, Shad-
docks or pomelos.. 30%
“ empty, n. s. p. f .. 30%
Baryta, unmanufactur-
ed . . . . . . . . . . . . . 75c ton
manufactured $5.25 ton
“ carbonate of ......Free
“ sulphate of. (See
Baryta.) w
Barytes. (See Baryta.)
“ art. sulphate of..}c no
“ earth. (See Bary-
ta.)
Baskets, bannboo or
Wood . . . . . . . . . . . . . 35X
“ chip or grass..... . 30%
“ osier or willow. . . . 40%
Bauxite, crude . . . . $1.00 ton
477
252
262
262
174
6
292
478
479
481
* * * * * tº e º e s tº e e º 'º &
Arg intine crude . . . . . . . 5%
Argols, crude cont’g not
more than 40% B.
of P. . . . . . . . . . . . . . 1C Ib
“ cont’g more than
40% B. of P. . . . .1%c Ib
“ partly refined, con.
not more than 90%
B. of P. . . . . . . . . . . 4c Ib
“ partly refined, con.
more than 90% B.
of P. . . . . . . . . . . . . . 5C Ib
“ refined . . . . . . . . . . . .6c Ib
Arrack . . . . . . . . . . . . $2.25 gal
Arrowroot, crude . . . . . . Free
Arsenic and sulphide of. Free
Art educational stops,
val. not over 6c -
* * * * * * > * > → c & e Free
m i n e r a 1 sub-
stances, or carbon,
n. S. p. f., not dec-
Orated
Decorated
449
206
93
4
“ refined . . . . . . . . 6-10c ſh
SCHEDULE OF DUTIES. 91
Par.
294
408
'408
240
254
274
297
297
485
490
656 .
492
524
45
262
262
559
300
417
549
425
494
425
493
495
95
292
93
93
47
496
448
46
367
8
547
497
245
45
45
º
15
Article. Rate.
Bay-rum and Bay water,
$1.50 gal
Bead embroidery, laces,
Ornaments a n d
trimmings . . . . . . . . 60%
Beads, not strung . . . . . 35%
Beans, bu. 60 lbs. . . . . 45c bu
“ castor, bu. 50 lbs. 25c bu-
“ prepared . . . . . . . 2% c Ib
Beef, fresh . . . . . . . . . . . . . 2C. To
Beer, Coloring for . . . . . . 50%
“ in bottles . . . . . . 40c gal
“ in bulk . . . . . . . . 20c gal
Beet root ashes........ Free
Beeswax . . . . . . . . . . . . . . . Free
Beet, sugar, seed . . . . . . Free
Bells, broken . . . . . . . . . . Free
Benzo! . . . . . . . . . . . . . . . . . Free
Berlin blues . . . . . . . . . . . 8c Ib
Berries, dried . . . . . . . . . 2C Ib
“ edible, nat. condt. 1d qt
“ n. S. p. f. . . . . . . . . Free
Beverages, cont’g no al-
cohol. (See Ginger
ale.)
Billiard balls . . . . . . . . . . 50%
Bird eggs . . . . . . . . . . . ... Free
‘‘ skins, crude . . . . . . 15%
Birds and land and wa-
ter fowls . . . . . . . . . Free
“ finished for milli-
Il CTI' UIS6 . . . . . . . . . 50%
“ stuffed, not for
millinery . . . . . . . . . Free
Bismuth . . . . . . . . . . . . . . . Free
Bisque, decorated . . . . . 60%
“ plain white . . . . . . . 55%
Bitters, containing spir-
its . . . . . . . . . . . . $2.25 gal
Bitu men, crude, n. S. p.
f. . . . . . . . . . . . . . $1.50 ton
“ dried, n. S. p.
f. . . . . . . . . . . . . $3.00 ton
Black, bone, ivory or
Vegetable . . . . . . . . . 25%
Blacking . . . . . . . . . . . . . . 25%
Bladders, crude . . . . . . . Free
“ mfs. Of . . . . . . . . . . . 25%
Blanc Fixe . . . . . * * * * * e *AC Ib
Blankets, wool. (See
Wool blankets.)
Bleaching Powder . . . 1–5c Ib
Blood, dragon's . . . . . . . . Free
“ dried, n. s. p. f....Free
“ dried, soluble...1%C fo
Blue, containing Ferro-
cyanide of iron. . .8c Ib
** Berlin, C h i n e s e
and Prussian . . . . . 8C it)
“ ultramarine . . . .3% c Ib
“ Vitriol . . . . . . . . . . . 34 c Ib
Boiler tubes, pipes, flues
or stays not thin-
Far. Article. Rate.
ner than 16 wire .
Baillèë . . . . . . . . . . . . 2c Ab
152 Boller tubes, n. s. p. f... 35%
498 Bolting cloth, silk for
milling . . . . . . . . . . . Free
145 Bolts and blanks, iron
. or Steel . . . . . . . . 134c Ib
47 Bone, black . . . . . . . . . . . . 25X
414 “ buttons, 4c line
gross and . . . . . . . . 15%
10 “ char . . . . . . . . . . . . . . 20%
543 “ cuttlefish . . . . . . . . . Free
499 “ dust and ash. . . . . . Free
449 “ mfs. of. n. s. p. f... 30%
499 “ crude . . . . . . . . . . . . . Free
137 Bonnet wire . . . . . . . . . . 45%
409 Bonnets, straw. (See
hats.)
503 Books, maps, photo-
graphs, etchings,
lithographic prints
and charts, not
over two copies in
one invoice, for
use of any society
incorporated for re-
ligious, philosoph-
ical, educational,
scientific or liter-
alry purposes, or
for encouragement
of the fine arts, or
for use of any col-
lege or school of
learning in the U.
S. or any State or
public library, and
not for sale. . . . . . . Free
500 “ for use of U. S. . . . Free
502 “ in foreign langua-
£eS . . . . . . . . . . •ºs s e º e Free
502 “ in raised print for
the blind . . . . . . . . . Free
397 “ letter copying,
5c Ib & 15%
403 “ n. S. p. f. . . . . . . . . . 25%
50; “ printed over 20
yea I'S . . . . . . . . . . . . . Free
645 “ professional, a C-
Companying own-
er . . . . . . . . . . . . . . . , Free
501 ‘‘ by scientific asso-
ciations . . . . . . . . . . . Free
438 Boots, leather . . . . . . . . . 25%
1 Boracic acid . . . . . . . . . . . 5c Ib
11 Borate material. (See
Lime, borates of.)
11 Borax. . . . . . . . . . . . . . . . . . 5c Ib
100 Bottles of cut, engraved
Or Ornamental glass,
filled or unfilled, and
Whether contents are
dutieble or free. . . . . . 60%
92
- F. B. VANDEGRIFT & CO.
Par. Article. Rate.
99 Bottles, plain green or
- colored, molded or
pressed and flint, lime
or lead glass, filled or
unfilled, n. S. p. f.,
whether their con-
tents be dutiable or
free (except such as
contain merchandise
subject to an ad val-
loren rate of duty),
holding over 1 pint...lo Ib
Holding not over 1
pint, nor less than 4
pint . . . . . . . . . . . . . . . 13%c Ib
Holding less than 4
pint . . . . . . . . . . . . . 50c gross
None of the above pay
less than 40%.
296 Boxes con. Oranges, le-
* mons, limes, grape
fruit, Shaddocks or
pomelos . . . . . . . . . . . . . 30%
405 Boxes, fancy paper. ... 45%
204 “ packing, n. s. p. f. 30%
164 Brads. (See Iron tacks.)
179 Brald, tinsel wire...... 60%
289 Brandy . . . . . . . . . . . . $2.25 gal
290 “ in less than 10 gal
cask . . . . . . . . Prohibited
18 “ coloring for . . . . . . 50%
505 Brass, old and clippings
of . . . . . . . . . . . . . . . . . . . . Free
508 Breccia, in blocks. . . . . . Free
87 Brick, decorated ..... ... 45%
“ not decorated .... 25%
87 “ fire, weighing not
- Over 10 lbs each,
not glazed or dec-
orated, . . . . . . . $1.25 ton
97 “ fire, weighing over
10 Ibs., glazed or
decorated . . . . . . . . 45%
87 not decorated. $1.25 ton
674 Brimstone, crude, in
bulk . . . . . . . . . . . . . . . . . Free
509 Bristles, crude . . . . . . . . Free
411 “ sorted . . . . . . . . . . 73% c Ib
175 Bronze leaf, per plage of
100 leaves . . . . . . . . . . . . 6c
175 Bronze powder . . . . . . .12c Ib
510 Broom COrn . . . . . . . . . . . Free
410 Brooms . . . . . . . . . . . . . ... 40%
410 Brushes . . . . . . . . . . . . . . . 40%
412
226.
251
656
511
182
179
Buckles, trouser. (See
Iron Buckles.)
Buckwheat, bu 48 lbs. 15c bu
Bulbs, flower . . . . . . . ... 25%
“ m. s. p. f..........Free
Bullion gold-or silver...Free
“ base . . . . . . tº gº tº e º - 2%C Ib
“ fringe . . . . . . . . . . . . 60%
Par.
179
34}.
671
116
236
236
282
413
414
414
414
414
414
414
242
700
198
329
329
513
514
438
438
434
515
212
206
462
424
424
287
97
98
98
99
Article. Rate.
Bullion, threads..5c Ib & 35%
Burlaps. (See Jute fab-
rics.)
Burrstone, rough . . . . . . Free
Burrstones, bound into
millstones . . . . . . . . . . .
Butter . . . . . . . . . . . . . . . . 6c Ib
“ substitutes for,
I. R. tax & 6c Ib
COCOa. . . . . . . . . . . . 3%C Ib
Button forms, of mo-
hair, cloth or silk.... 10%
Buttons, agate and
metal trouser,
1-12c line gross & 15%
bone and Steel
trouser,
34c line gross & 15%
Buttons, collar and cuff 50%
“ horn, glass, metal, -
a n d Vegetable
ivory, -
%c line gross & 15%
E. Littons, pearl and shell,
1%c line gross & 15%
& 4
4 &
“ Shoe, val. not over
3c gross. . . . . . . . . . . 1C gross
valued over 3c gross... 50%
C.
Cabbages . . . . . . . . . . . 3C each
Cabinet woods, rough.. Free
& 4 “ sawed ... 15%
Cables, hemp . . . . . . . . . . 2c Ib
“ istle, manilla or
tampico . . . . . . . . . . 1c Ib
Cadmium ... . . . © & © tº e º º . Free
Calamine . . . . . . . . . . . . . . Free
Calfskins, bookbinders’. 20%
“ dressed . . . . . . . . . . . 20%
Calomel . . . . . . . . . . * * * * * 35%
Cameos in frames..... 60%
-Camphor, crude...... ... Free
“ refined . . . . . . . . . ... 6c Ib
Candy. (See Confec-
tionery.)
Cane for chairs, wrought
from reeds . . . . . . . . . . 0%
Canes, walking . . . . . . . . 40%
Caps, blasting . . . . . . $2.36 M
“ percussion . . . . . . . ... 30%
Capsicum . . . . . . . . . . . 2%e Ib
Carbon, articles of, n. s.
p. f., decorated. . . . . . . 45%
not decorated . . . . . . . . 35%
Carbon pots, porous, for
batteries, W i t h out
metal connections ... 20%
Carbons for electric
lighting . . . . . . . . . . . 90C 100
Carboys, glass. (See
Bottles.)
SCHEDULE OF DUTIES. 93
Par. Article. Rate.
146 Card clothing of tem-
pered steel wire. .45c sq ft
146 -ard clothing, n. S. p. f.,
20C sq ft
406 Cards, playing,
- 10c pack and 20%
372-373 Carpet, Aubusson
and Axminster, mo-
quette and chenille,
Saxony, Wilton and
Tournay velvet,
60c sq yd & 40%
374 Carpet, Brussels,
44c sq yd & 40%
376 “ Brussels, tapestry,
28c sq yd & 40%
380 Carpet druggets and
bockings. .22c sq yd & 40%
382 Carpet mats, screens,
hassocks and art
squares. (AS Carpets.)
381 Carpet, wool, n. s. p. f..50%
377 “ three-ply cha. i n,
treble ingrain and
Venetian,
22c sq yd & 40%
375 Carpet, velvet and tap-
estry velvet,
40c sq yd & 40%
379 Carpet woven whole for
rooms...10c sq ft. and 40%
424 Cartridges . . . . . . . . . . . ... 35%
204 Casks, empty . . . . . . . . . . 30%
677 Cassava . . . . . . . . . . . . . . . Free
667 Cassia, Cassia buds and
Cassia, Vera, unground,
Free
683 Cassiterite . . . . . . . . . . . . . Free
516 Castor . . . . . . . . . . . . . . . . . Free
254 “ beans bu. 50 Ibs. .25c bu
33 “ oil . . . . . . . . • e º 'º - - 35c gal
516 Castoreum . . . . . . . . . . . . . Free
B17 Catgut, crude . . . . . . . . . Free
448 “ manufactures of .. 25%
218 Cattle, under 1 year old... $2
all other, val. not
Over $14 . . . . . . . . . . . . $3.75
Val. Over $14 . . . . . . . 27%%
Sec. 25 Cattle, neat... Prohibited
437 Cattle hides, uncured... 15%
17 Celluloid . . . . . . . . . . . . . 50c Ib
17 “ articles. . .65c Ib & 25%
17 “ rolled or sheets,
unpolished . . . . . . . . . . 60C Ib
534 Cennent, copper . . . . . . . Free
89 “ Roman, Portland
and other hydraulic,
inc. weight of plºge,
8C 100 Ibs
In bulk . . . . . . . . .7c 100 lbs
89 Cennent, n. S. p. f..... . 20%
518 Cerium . . . . . . . . . . . . . . . . Free
151 Chains iron or steel,
Par.
115
13
13
519
13
13
438
295
503
500
403
501
237
:
Article. Rate.
less than %, not less -
than % in. dia......1% cle
less than % in., not
less than 5-16 in. dia.,
- 1%C Ib
less than 5-16 in. dia. 3c Ib
But not less than.... 45%
Chalcedony mſs., n. s.
f
P. f. . . . . . . . . . . . . . . . . . 50%
Chalk, billiard and tail-
ors' . . . . . . . . . . . . . . . . . 1c Ib
Chalk blocks, cubes,
Sticks . . . . . . . . . . . . ...1c Ib
Chalk, crude . . . . . . . . . . . Free
“ manufactures of .. 25%
“ ground, not pre-
pared for toilet or
medicinal use . . . . . . . 1c Ib
Chamois skins . . . . . . . . . 20%
Champagne, half pints $2 doz
pints . . . . . . . . - - - - - - - $4 doz
Quarts . . . . . . . . . . . . . $8 doz
Charts for societies.
(See Books.)
“ for use of U. S. . . . Free
“ n. S. p. f . . . . . . . . . 25%
“ printed over 20
Yea. TS . . . . . . . . . . . . . Free
Cheese, and substitutes
for . . . . . . . . . . . . . . . . . . 6e Ib
Chemical compounds .. 25%.
* Salts, n. S. p. f.... 25%
386 Chen IIIe silk (min. 50%),
217
299
252
262
4.17
30
280
280
93
94
95
95
45
449
409
$1.50 Ib & 15%
Cheroots (Internal Rev-
enue tax) . . $4.50 lb & 25%
Cherry juice, not over
18% alcohol ... . . . . . 60c gal
Over 18% alcohol, on
the alcohol, in addi- -
tion . . . . . . . . . . . . . . $2.07 gal
Cherry stocks of Maha-
leb or Mazzard,
50c M & 15%
Cherrles, green or ripe
25c bu
Chess balls and chers
Inell . . . . . . . . . . . . . . . . . 50%
Chicle . . . . . . . . . . . . . . . . 10C lº
Chicory, preparea. . . .2%c no
“ raw . . . . . . . . . . . . . . 1c Ib
China clay . . . . . . . . $2.50 ton
“ common ye l l ow
brown and gray, plain 25%
China, decorated . . . . . . 60%
“ plain white . . . . . . 55%
Chinese blues . . . . . . . . . . 3C Ib
Chip mſs., n. s. p. f.... 30%
“ braids for making
hats. (See Straw
braids.)
94
F. B. VANDEGRIFT & Co.
Par.
14
281
1
191
115
243
45°
217
217
647
667
1
20 !
199
622
93
93
671
191.
137
95
415
Article. Rate.
Chloroform . . . . . . . . . . . 20c Ib
Chocolate, prep, n. s. p.
f., val. not over 15c
Ib. . . . . . . . . . . . . . . . . .2%C Ib
val. Over 15c, not over
24c Ib . . . . . . . 2% c Ib & 10%
Vall. Over 24c, not over
35c Ib. . . . . . . ..5c Ib & 10%
val. Over 35c Ib. . . . . . 50%
Chrome green and yel-
low . . . . . . . . . . . . . . . . 4%c Ib
Chronic acid
Chronometers,
parts
Chrysolite
• * * * * * * * * * s e º e º s
per
Cigarettes (add Internal
Revenue tax),
$4.50 Ib & 25%
Internal
* * * * * * * * * * * e e s e e º sº
Cigars (add
Revenue tax),
$4.50 lb & 25%
Cinchona bark, alka-
loids and salts of....Free
CInn annon and chips of,
unground . . . . . . . . . . . . Free
Citric acid . . . . . . . . . . . . 7C Ib
Cltron and peel of, pre-
served or dried. . . . . . 4c Ib
Clapboards . . . . . . . . . . $1.50 M
Clay, China. . . . . . . . . $2.50 ton
“ common blue . . Free
“ unwrought, n. s.
p. f. . . . . . . . . . . . . . $1 ton
“ wrought, n. S. p.
f.,
- $2 ton
Cliff stone, rough . . . . . . Free
Clock jewels. . . . . . . . . . . . 10%
“ Wire . . . . . . . . . . . . . . 45%
“ cases, china (not
dec.), with or without
movements . . . . . . . . . . 55%
decorated . . . . . . . . . . . . 60%
Clocks and parts of . . . . 40%
“ enamel for . . . . . . Free
Cloth, bolting silk. . . . . . Frees
“ hair seating... 20c sq yd
“ hair crinoline. 10c sq yd
“ Italian. (See Wool
dress goods.)
Clothing, woolen, -
44c Ib & 60%
Cloves and clove stems,
unground
Coal, bituminous. . . .67c ton
Par.
15
532
534
176
530
534
193
533
629
176
534
176
176
Article. Rate.
Coal tar products, n. s.
p. f., not colors, and
dyes . . . . . . . . . . . . . . . . .
Coat linings. (See Wool
dress goods.)
Cobalt, and cobalt ore...Free
20%
“ Oxide of . . . . . . . . . 25C Ib
Cocculus indicus . . . . . . Free
Cochineal . . . . . . . . . . . . . . Free
Cocoa. (See Chocolate.)
“ butter or butter-
ine . . . . . . . . . . . . . . . . 3% c Ib
Cocoa, Crude, and fiber,
leaves and shells of... Free
Cocoa, powdered, un-
Sweetened . . . . . . . . . . . 5c Ib
Cocoanut, desiccated. . .2c Ib
“ meat, broken . . . . . Free
“ oil . . . . . . . . . . . . . . . . Free
Cocoanuts in the shell. . Free
Cod liver oil. . . . . . . . . 15c gal
Coffee . . . . . . . . . . . . . . . . . Free
“ substitutes . . . . . 2%C Ib
Coins, copper, gold and
Silver
Coir, and coir yarns. . . . Free
Coke . . . . . . . . . . . . . . . . . . . 20%
Collar buttons . . . . . . . . 50%
Collodion . . . . . . . . . . . . . 50C Ib
“ articles. . .65c Ib & 25%
“. Sheets or rolls. ... 60c Ib
Cologne water, alco-
holic. . . . . . . . 60c Ib & 45%
Coloring for liquors. ... 50%
Colors, artists', n. S. p. f. 30%
“ chromium . . . . . . 41/60 Ib
“ con. Quicksilver... 10c Ib
“ con. lead . . . . . . . . .5C Ib
“ n. S. p. f. . . . . . . . . . 30%
Comfits . . . . . . . . 1c Ib & 35%
Compounds, alcoholic, n.
S. p. f. . . .60c Ib & 45%
‘‘ alcoholic medicinal
(min. 25%) . . . . . . . . . 55C Ib
Confectionery, val. 15c
Ib or less. . . . . 4c Ib & 15%
val over 15c Ib . . . . . . . .
Weight of immediate
coverings dutiable.
Copper bars, ingots, pigs
15
524
“ slack . . . . . . . . . . 15c ton
** tar colors and
dyes, n. S. p. f. . . . . . . 30%
Coal tar, crude, pitch,
and products of . . . . . Free
and plates . . . . . . . . . . . Free
Copper, black . . . . . . . . . . Free
“ bottoms . . . . . . . .2%c Ib
“ coins . . . . . . . . . . . . . Free
“ cement . . . . . . . . . . . Free
“ manufactures of .. 45%
“ old . . . . . . . . . . . . . . . Free
“ ore . . . . . . . . . . . . . . . Free
“ plates, rolled . . .2%c no
“ regulus of . . . . . . . . Free
“ sheathing . . . . . . . . 2C Ib
“ sheets, rods and
pipes . . . . . . . . . . . 2%C ſo
SCHEDULE OF DUTIES. 95
Par. Article. Rate.
9 Copper, sulphate of....},e Ib
694 “ subacetate of . . . . . Free
19 Copperas . . . . . . . . . . . . . 34c lb
622 Copra, broken . . . . . . . . . Free
267 “ desiccated . . . . . . . 2c Ib
109 Coquill glasses, ground
and polished, with
edges unground . . . . . 45%
with edges ground and
beveled,
10c doz pairs & 45%
535 Coral, crude . . . . . . . . . . . Free
115 “ manufactures . . . . 50%
329 Cordage, hemp . . . . . . . . 2c Ib
329 “ istle, tampico and
manilla. . . . . . . . . . . . . . 1C b
292 Cordlals . . . . . . . . . . . $2.25 gal
330 Cords, flax, hemp and
ramie. (See Threads,
flax.)
416 Cork, artificial . . . . . . . . .8c Ib
416 “ bark, cut into
- SCIlla. TeS . . . . . . . . . . 8c no
448 “ manufactures of... 25%
536 “ wood, uncut . . . . . . Free
416 Corks, over 94 in. dia... 15c Ib
$4 in. or less in dia. .25c Ib
251 Corms . . . . . . . . . . . . . . . . . 25%
227 Corn, bu 56 Ibs. . . . . . . 15c bu
228 “ meal, bu 48 Ibs. . 20c bu
115 Cornelian manufactures 50%
137 Corset steels and clasps 45%
137 “ Wire . . . . . . - e. e. e. e. e. e. e. e. 45%
70 Cosmetic, non-alcoholic. 50%
537 Cotton . . . . . . . . . . . . . . . . . Free
344 “ bagging, jute, not
bleached, not ex. 16
threads to sq in.
weighing not less than
15 oz sq yd.... 6-10c sq yd
329 Cotton bandings, belt-
ings, &c. . . . . . . . . . . . . . 45%
320 Cotton boot, corset and
shoe lacings. .25c Ib & 15%
316 Cotton Chenille curtains 50%
316 “ Chenille manufac-
tures . . . . . . . . . . . . . . . . 60%
304 Cotton cloth, unbleach-
ed, not ex. 50
thr. to sq in. 1c Sq yd
305 Ex. 50 and not ex.
100 thr. to sq.
in. not ex. 6 Sq
yd to Ib. .134c sq yd
Above 6 not ex. 9
Sq yds to Ib,
1%C sq yd
Above 9 sq yds to
Ib . . . . . . . . 1% c sq yd
Val. Over 7c sq .
yd . . . . . . . . . .... 25%
306 Ex. 100, not ex.
150 thr. to sq
Par.
307
308
309
305
Article. Rate.
in. ; not ex. 4 sq.
yds to Ib. .1%c sq yd
Above 4, ngſt ex. 6
sq yds to Ib. 2C sq yd
Above 6, not ex. S
sq yds to Ib
2%c sq yd
Above 8 sq yds to
Ab . . . . . . . . 2% c sq yd
Val. Over 90 sq yd.30%
Ex. 150, and not
ex. 200 thr. to
sq in., not ex.
3% sq yds to Ib,
2c sq yd
Above 3%, not ex.
4% sq yds to Ito,
2% c sq yd
Above 4%, not ex.
6 sq yds to Ib,
3c Sq yd
Above 6 sq yds to
Ib . . . . . . . . 3% c sq yd
Val. Over 10c sq
• e º 'o e º e º e is e a g 35%
ex. 300 thr. sq
in., not ex. 2%
Sq yds to Ib,
3%.c sq yd
Above 2%, not ex.
3% sq yds to
Ib . . . . . . . . . . 4c sq yd
Above 3%, not ex.
5 sq yds to Ib,
4%c sq yd
Above 5 sq yds to
Ib . . . . . . . . . . 5c sq yd
Val. Over 12% c sq
d
in.., not ex. 2 sq.
yds to Ib. . . .4c sq yd
Above 2, not ex 3
sq yds to Ib,
4%e sq yd
Above 3, not ex. 4
Sq yds to Ib. 5c sq yd
Above 4 sq yds to
Ib . . . . . . . . 5%C sq yd
Val. Over 14c sq
yd . . . . . . . . . . . . . 40%
304 Cotton cloth, bleached,
- not ex. 50 thr.
Sq in . . . . . 134c sq yd
Ex. 50, not ex.
100 thr. sq in.,
not ex. 6 sq yds
to Ib . . . . . .1%c sq yd
Above 6, not ex.
9 sq yds to Ib,
1% c sq yd
Above 9 sq yds to
Ib. . . . . . . .2%c sq yd
96
|F. B. VANDEGRIFT & CO.
Article. Rate.
Val. over 90 sq yd 25%
Ex. 100, not ex.
* 150 thr. sq. in.,
not ex. 4 sq yds
to lb......... 2% c sq yd
Above 4, not ex. 6
sq yds to lb,
3c sq yd
Above 6, not ex. 8
sq yds to 1b,
3% c sq yd
Above 8 sq yds to
lb............ 3% c sq yd
Val. over 11c sq yd 35%
Ex. 150, and not
ex. 200 thr. sq
in.., not º 3%
sq yds to lb,
Q y 2% c sq yd
Above 3%, not ex.
4% sq yds to lb,
3% c sq yd
Above 4%, not ex.
6 sq yds to 1b,
4c sq yd
Above 6 sq yds to
lb............ 4% c sq yd
Val.
Par.
.306
307
over 12c Sq
YCl . . . . . . . . . . . . -- - - - - - - - 35%
Ex. 200, not ex.
300 thr. sq in,
not ex. 2% sq
yds to 1b...4% c Sq yd
Above 2%, not ex.
3% sq yds to 1b,
5c sq yd
Above 3%, not ex.
5 sq yds to lb,
5% c sq yd
Above 5 sq yds to
lb............... 6c sq yd
Val. over 15c sq yd 40%
Fºx. 300 thr. to sq
in.., not ex. 2 sq.
yds to lb...... 5c sq yd
Above 2, not ex. 3
sq yds to 1b,
5% c sq yd
Above 3, not ex. 4
sq yds to 1b. 6c sq yd
Above 4 sq yds to
lb............ 6% c sq yd
Val. over 16c sq yd 40%
304 Cotton cloth, dyed, not .
ex. 50 thr. to sq
e 2c sq yd
Ex. 50 and not ex.
100 thr. to sq. in.,
not ex. 6 sq yds
to 1b......... 2% c sq yd
Above 6, not ex. 9
sq yds to 1b,
3% c sq yd
308
309
305
Par.
306
307
30S
309
311
311
Article. Rate.
Above 9 sq yds to
lb.......... .3% c sq yd
Val. over 12c sq
yd ..................... 30%
Ex. 100, not
150 thr. to sq.
in., not ex. 4 sq.
yds to lb...3% c sq yd
Above 4 not ex. 6
sq yds to lb
3% c sq yd
Above 6, not ex. 8
sq yds to lb
4% c sq yd
Above 8 sq yds to
1b............4% c Sq yd
Vºl. over 12% c sq
200 thr. to sq
in., not ex. 3% c
sq yd to lb,
4% c sq yd
Above 3% not ex.
4% sq yds to lb,
4% c sq yd
Above 4% not ex.
6 sq yds to lb,
4%c sq yd
Above 6 sq yds to
lb ....... ....... 5c sq yd
Val. over 12%c sq
YCl . . . . . . . . . . . . . . . . . . . . 40%
Ex. 200, not ex.
300 thr. to sq
in.., not ex. 3%
sq yds to lb,
6% c sq yd
Above 3% sq yds
lb..... ...... 7c sq yd
* * * * * * * * * * * * * * * * * * * %
in.., not exceed-
ing 3 sq yds to
lb ............ 6% c sq yd
Above 3 sq yds to
lb ............... 8e sq yd
over 20c sq
40%
Cotton cloth con. silk
(min. 50%). 8c sq yd & 30%
Cotton cloth, filled,
3c sq yd & 20%.
clothing ................ 50%
collars and cuffs,
45c doz pieces & 15%
card laps..... ............ 45%
corduroys.
Cotton plushes.)
drawers and
other undergarments.
(See cotton shirts.)
( :
314
388
302
3.15
319 Cotton
( &
{ {
{ {
SCHEDULE OF DUTIES.
97
Par.
315
321
537
314
460
820
318
317
320
313
320
322
314
315
315
302
35
3.19
315
Rate.
facings,
bleached
Article.
Cotton dress
bias, not
(min. 47%%),
9c sq yd & 35%
bleached (min. 47%%),
12c sq yd & 35%
Cotton duck . . . . . . . . . ... 35%
“ flocks
“ garments, outside,
with India, rubber,
15c Ib & 50%
Cotton gins 20%
“ healds. . . .50c Ib & 25%
“ h Os e, fashioned,
val. not over $1 doz
prs... 50c doz pairs & 15%
val. Over $1, not over
$1.50. .60c doz pairs & 15%
val. Over $1.50, not
over $2..70c doz prs & 15%
val. Over $2, not over
$3.31.20 per doz prs & 15%
val. Over $3, not over
$5... $2 per doz prS & 15%
val. Over $5 doz prS.. 55%
Cotton hose made on
frames . . . . . . . . . . . . . . .
Cotton labels for gar-
ments . . . . . . . 50c Ib & 30%
Cotton lappets in add.
to Cotton cloth, val.
not Over 7c sq yd,
1c sq yd
Val. Over 7c sq yd 2C sq yd
Cotton loom harness,
50c Ib & 25%
Cotton manufactures
n. S. p. f. . . . . . . . . . . . . 46%
Cotton neckties 50%
“ pile fabrics.
Cotton plush.)
Cotton p 1 u S h, n ot
bleached (min. 47%%),
9c sq yd & 25%
Bleached (min. 47%%), -
12c sq yd & 25%
Cotton roping and rov-
tº e º 'º e º a s tº e º ſº
ing . . . . . . . . . . . . . . . . . . 45%
Cotton seed oil . . . . . . . 4c gal
“ shirts, Val. not
Over $1.50 doz,
60c doz & 15%
val. Over $1.50, not over
$3 doz. . . . $1.10 doz &
val. Over $3, not over
$5 doz. . . . $1.50 doz &
val. Over $5, not over
$7 doz. ... $1.75 doz &
val. Over $7, not over
$15 doz. . . $2.25 doz &
val. over $15 doz. . . . .
Cotton Skirt bindings.
15%
25%
Par.
302
320
318
320
321
303
302
339
315
302
537
337
314
69
262
524
137
431
95
95
36
251
144
538
539
414
415
460
264
262
540
541
340 Curtains,
Article. Rate.
(See Cotton dress fac-
ings.)
Cotton sliver . . . . . . . . . . 45%
“ spindle banding,
lamp wicking, &c.,
10c Ib &
Cotton stockings, seam-
less. (See Cotton hose,
fashioned.)
Cotton suspenders . . . . .
“ table damask . . . . .
“ thread, not Onl
spools, 4% c 100 yds or
fraction.
Cotton thread and yarn,
not colored, up to No.
15 . . . . . . . . . . . . . . . . . . . 3c Ib
Above 15, not above
30. . . . . . . . . 1-5c No. per to
Excdg. No. 30,
34c No. per Ib
Colored up to No. 20, 6e ib
above: 20, not above
80. . . . . . . . . . 34c No. per ho
Above No. 80,
3-10c No. per ſh
Cotton trimmings . . . . . 60%
“ velvets and vel-
veteens. (See Cotton
plush.)
Cotton w a r ps.
Cotton thread.)
Cotton Waste
“ waterproof cloth,
10c sq yd & 20%
wearing apparel... 50%
Court plaster
Cranberries
Crayons, n. S. p. f. . . . .
Cresol . . . . . . . . . . . . . . . . . Free
Crinoline wire . . . . . . . . .
“ cloth. . . . . . . . .10c sq yd
15%
45%
40%
(See
ted
plain
Croton Oil
Crotons . . . . . .`- - - - - tº º e º g
é &
Cuff buttons
Culm
Cultivators
Currants
‘‘ green or ripe. .. 25c bu
Curllng Stones and han-
dles for . . . . . * * * * * > ...Free
Curry, and curry pow-
der . . . . . . . . . . .
Nottingham
lace, window Gotton,
Counting 5 points be-
98
F. B. VANDEGRIFT & CO.
Par.
93
94
95
95
94
96
93
93
97
504
636
697
549
549
662
244
245
408
179
419
550
419
113
564
500
403
501
399
Par. Article. Rate
tween warp threads e
to inch....1c sq yd & 20%
Counting more than 5
points between warp
thread to inch, Ac
add. per sq yd for
each point, with a
minimum of 50%.
542 Cutch . . . . . . . . . . . . . . . . . . Free
153 Cutlery. (See Knives.)
543 Cuttlefish bone . . . . . . . . Free
591 Cyanite . . . . . . . . . . . . . . . Free
D.
283 Dandelion root as cof-
fee sub . . . . . . . . . . . . 2%c Ib
544 Dandelion roots raw....Free
264 Dates . . . . . . . . . . . . . . .1%C Ib
100 Decanters of Cut, en-
graved or ornamental
glass, filled or un-
filled, and whether
contents are duti-
able or free . . . . . . . . . 60%
279 Degras . . . . . . . . . . . . . . . C ib
99 Demljohns, glass. (See
- Bottles.)
70 Dentifrices, non-alco-
holic . . . . . . . . . . . . . . . . 50%
286 Dextrine . . . . . . . . . . . . . . 2c to
545 Diamond dust . . . . . . . . . Free
435 Dlamonds, cut . . . . . . . . . 10%
545 “ miners', glaziers'
and engravers' . . . . . . . Free
545 Diamonds, uncut . . . . . . Free
417 Dice . . . . . . . . . . . . . . . . . . . 50%
646 Divl-divi . . . . . . . . . . . . . . Free
22 “ “ extract . . . . . . 7% c no
418 Dolls and heads for.... 35%
425 Down quilts & mfs. of. 50%
425 Downs, crude . . . . . . ... 15%
251 Dracaenas . . . . . . . . . . . . . 25%
417 Draughts . . . . . . . . . . . . . . 50%
454 Drawings, n. S. p. f.... 20%
368-369 Dress goods. (See
Wool dress goods.)
137 Dress Steels
460 Drills . . . . . . . . . . . . . . . . . 20%
20 Drugs, adv. in value, -
44c no & 10%
548 “ crude, n. S. p. f....Free
410 Dusters, feather
175 Dutch metal in leaf, per
pkge of 100 leaves. . . . 6c
tº º º tº e - ©
469 Dye, allizarin . . . . . . . . . . Free
482 Dyeing, crude articles
for . . . . . . • * * * * * * * * * * * Free
548 Dyeing, wood for . . . . . . Free
22 Dyewood extract, n. S.
p. f. . . . . . . . . . . . . . . . 7%c Ib
E.
93 Earth, fullers’, Ulid-
wrought
153
551
503
500
403
501
21
21
Article. Rate.’
Earth, fullers’, wrought
$3 ton
COIO II). On
and
Earthenware,
yellow, brown
gray, plain
Earthenware, decorated
Or ornamented
Earthenware,
White . . . . . . . . . . ... 55%
“ Rockingham, In Ot
decorated . . . . . . . . . . . .
decorated . . . . . . . . . . . .
Earths unwrought, n.
S. p. f. . . . . . . . . . . . . . $1 ton
Earths wrought, n. s.
P. f. . . . . . . . . . . . . . . . . $2 ton
Earthy substances, ar-
ticles composed of n.
S. p. f. not decorated. .35%
decorated
Effects, household, used
abroad not less than 1
year
Effects of citizens of U.
S. dying abroad
Effects, personal, of
persons arriving in U.
S., except citizens re-
turning who are limi-
ted to $100 purchased
abroad
Eggs, birds, fish,
SectS
Eggs of game birds....Free
‘‘ of Silk WOrms. . . . . Free
“ n. S. p. f. . . . . . . . 5c doz
Embroidery beaded .... 60%
‘‘ of tinsel wire . . . . 60%
Emery grains, ground...1c Ib
e e º 'º e - © - © tº e º tº e Free
“ wheels,
n. S. p. f
Enamel, fusible
“ White for
and watches . . . . . . . . . Free
Engravings for use of
TJ. S.
© tº e º ſº tº º
“ n. S. p. f. . . . . . . . . . 25%
‘‘ Over 20 years old. . Free
Envelopes. (See Paper
envelopes.) ~ *
Erasers. (See P&nives.)
Ergot . . . . . . . . . . . e
Etchings for society.
(See Books.)
Etchings for use of U.
S. . . . . . . . . . . . . . . . . . . . Free
Etchings, n. S. p. f. . . . . .
“ over 20 years old...Free
Ether, all n. s. p.
(min. 25%)
Ether, fruit
SCHEDUIE OF DUTIES.
9 )
Par.
21
21
252
248
22
25
29
22
108
427
552
410
425
425
553
394
370
433
566.
554
111
264
270
156
419
395
87
87
87
Article. Rate.
Ether, spirits of nitrous
(min. 25%) . . . . . . . . . . 25c Ib
Ether, sulphuric, (min.
25%) . . . . . . . . . . . . . . . 40c Ib
Evergreen seedlings,
- $1 M & 15%
Extract, hop . . . . . . . . . . . 50%
Extracts, logwood, dye-
wood, etc., n. s. p. f. 7% c ro
Extracts of indigo....94c Ib
“. . of licorice, n. S. p.
f. . . . . . . . . . . . . . . . . . 4%c Ib
Extracts, woods not
dyewoods, n. s. p. f. §§c Ib
Eyeglasses and frames.
(See Spectacles.)
F.
Fans, all except palm
leaf . . . . . . . . . . . . . . . . . . 50%
Fans, palm leaf. . . . . . . . Free
Feather dusters . . . . . . . 40%
Feathers, crude . . . . . . . . 15%
“ for millinery use... oOż
Felt for sheathing ves-
Sels . . . . . . . . . . . . . . . . Free
Felt, roofing . . . . . . . . . . . 10%
Felts not woven,
44c Ib & 60%
Fiber ware, indurated. . .35%
Fibers, vegetable, n. s.
P. f. . . . . . . . . . . . . . . . . . Free
Fibrin . . . . . . . . . . . . . . Free
Field glasses . . . . . . . . . . 45%
Figs . . . . . . . . . . . . . . . . . . 2c Ib
Filberts. (See Nuts.)
Files, blanks for rasps
and floats, 2% in. long
or less . . . . . . . . . . . . 30c
Over 214, not over 4%
in. long
Over 4%, under 7 in.
long . . . . . . . . . . . . . . 75c doz
7 in. long and over, $1 doz
Files, emery . . . . . . . . . . . 25%
Filter masse or stock,
14% c no & 15%
FIre-brick weighing not -
Over 10 Ibs each, not
glazed, or decorated,
$1.25
glazed or
tº e o e º ºs e º e º 'º º
doz
ton
45%
Fire-brick,
decorated
Fire-brick over 10 its ea.
not glazed or decora-
ted . . . . . . . . . . . . . . $1.25 ton
glazed or decorated. . 45%
Flrecrackers 8c Ib
Fish bladders, crude . . . Free
‘‘ bladders. (See
Glue.)
Fish eggs
Fish, fresh water . . . .34c no
97
420
496
23
549
259
& © º tº gº tº & & © tº
2 -
50c doz
Par. Article. Rate.
555 Flsh, f r e s h w a t e r,
caught by citizens of
U. S. . . . . . . . . . . . . . . . . Free
260 Flsh, herring, pickled, Ib
260 “ herring, fresh. . . .14c Ib
258-261 Fish in pkges. con.
under 14, bbl, n. s.
p. f. . . . . . . . . . . . . . . . . . 30%
258 Fish,
dines, etc., p}{d in oil,
in pkges con. 71% cu
in. or less. . . . . . . 1%c pkge
Con. over 73%, not
over 21 cu in... .2% c pkge
Con. Over 21, not over
33 cu in . . . . . . . . . . . 5c plºge
Con. over 33, not over
70 cu in . . . . . . . . . . 10C phºge
Other than as above..
261 Flsh, mackerel, halibut,
Salmon, Salted . . . . . . . 1c Ib
258 FIsh, n. s. p. f., in tin
º pkges . . . . . . . . . . . . . . . 30%
42 Fish oil . . . . . . . . . . . . . . 8c gal
626 “ oil from Am. fish-
eries . . . . . . . . . . . . . . . . Free
258 Fish paste . . . . . . . . . . . . . 30%
261 “ prep., for preser-
vation, n. S. p. f. . . .34c Ib
659 Fish shell . . . . . . . . . . . . . Free
261 “ skinned or boned,
134c Ib
556 “ skins . . . . . . . . . . . . . Free
367 Flannels for underwear,
(See Wool flannels.)
346 Flax articles, woven
fabrics, n. S. p. f.
weighing 4% oz. or
more Sq. ya..., contg.
not more than 60 thr.
to sq. in.,
1% c sq. yd. &
COntg. more than 60,
not more than 120
threads to sq. in.,
2% c sq. yd & 30%
COntg. more than 120,
not more than 180
threads to sq in.,
6c sq yd & 30%
COntg. more than 180
threads to sq. in.,
9c sq yd & 30%
Minimum rate 50%
weighing less than 4%
Oz. Sq. ya. and contg.
more than 100 threads
to sq in. . . . . . . . . . • * * *
334 Flax carpets, val.
ex. 15c sq yd.,
5c sq yd & 35%
above 15c sq. yd.,
10c sq. yd. & 35%
30%
35%
100
F. B. VANDEGRIFT & CO.
Par
381
825
339
347
334
324
332
342
836
323
331
254
37
557
557
156
537
363
232
233
235
656
425
251
453
558
494
117
118
58
262
264
262
264
299
425
265
559
559
266
268
Article. Rate.
Flax, carpets, n. s. p. ſ. 50%
“ hackled as dressed
line . . . . . . . . . . . . . . . . . 3C Ib
Flax laces . . . . . . . . . . . . . $0%
“ manufactures, Il.
S. p. f. . . . . . . . . . tº gº e º º ºs 45%
Flax mats and rugs.
(See Flax carpets.)
Flax not hackled or
dressed . . . . . . . . . . . . . . 1c Ib
Flax nets, same duty as
thread from which
made and . . . . . . . . . ... 25%
Flax pile fabrics . . . . . . 60%
“ tapes, measuring. . 40%
“ Straw . . . . . . . . . . . $5 ton
“ yarns in the gray,
Single, not finer than
No. 8 . . . . . . . . . . . . . . . . 7C Ib
finer than No. 8, not
finer than No. 80. . . . . 40%
finer than 80. . . . . . . . . 15%
Flaxseed . . . . . . . . . . . ... 25c bu
“ oil . . . . . . . . . . . . . 20c gal
Flint . . . . . . . . . . . . . . . . . . Free
“ stones, unground. . Free
Floats. (See Files.)
Flocks, cotton . . . . . . . . . Free
“ Woolen . . . . . . . . . . 10C lib
Flour, rice . . . . . . . . . . . 14c Ib
“ rye . . . . . . . . . . . . . . Ac Ib
“ Wheat . . . . . . . . . . . . 25%
Flower seed . . . . . . . . . . . Free
Flowers for millinery
use . . . . . . . . . . ... • e º e a s e 50%
Flowers, natural . . . . . . 25%
Forks, tuning . . . . . . . . . . 45%
Fossils . . . . . . . . . . . . . . . . . Free
Fowls, land and water...Free
Freestone, undressed,
12C cu ft
“ dressed . . . . . . . . . . . 50%
Frosting, n. S. p. f. . . . . . 30%
Fruit, apples, peaches,
quinces, cherries,
etc., green or ripe,
25c bu
“ dates . . . . . . tº tº $ tº º º 14C Ib
“ dried n. S. p. f... .2c Ib
“ figs . . . . . . . . . . . . . . 2C Ib
“ juices. (See Cher-
ry juices.)
“ for mililnery . . . . . . 50%
“ grapes in pkgs.
20c cu ft
“ n. S. p. f. . . . . . . . . . . Free
“ in brine . . . . . . . . . . Free
‘‘ Oranges, lemons,
limes, shaddocks,
grape, pomelos...1c Ib
“ pineapples in bulk,
$7.00 M
Par. Article. Rate.
268 Fruit, pineapples in
packages . . . . . . 7C cu ft
660 “ plants for cultiva-
tion . . . . . . . . . . . . . . . Free
264 “ plums, dried. . . . . .2c lºb
263 “ pres. in Sugar,
spirits Or OWIl
juice, n. S. p. f.
1c Ib. & 35%
Con. over 10% al-
Cohol and n. S. p.
f., in addition
$2.50 gall on alco-
hol in excess of 10%.
264 “ prunes and pru-
nelles . . . . . . . . . . . .2c Ib
264 “ raisins . . . . . . . . .2%c Ib
252 “ stocks, ºn. s. p. f... 25%
93 Fullers’ earth, wrought,
$3.00 ton
93 “ unwrought. . . . $1.50 ton
421 Fulminates . . . . . . . . . . ... 30%
426 Fur, dressed on the
skin . . . . . . . . . . . . . . 20%
432 “ hats. (See Hats,
fur.) -
426 “ for hatters’ use... 20%
450 “ mfs. Of n. S. p. f... 35%
426 “ skins carroted . . . . 20%
562 “ skins not dressed... Free
561 Furs, undressed . . . . . ... Froe
208 Furniture, house or cab-
inet . . . . . . . . . . . . ... 35%
38 Fusel oil . . . . . . . . . . . . . . 14C Ib
G.
408 Galloons, beaded . . . . . . 60%
179 “ tinsel Wire . . . . . 66%
563 Gambier . . . . . . . . . . . . . . . Frce
549 Game birds' eggs under
regulations . . . . . . . . . . Free
249 Garlic . . . . . . . . . . . . . . . . . 1C Ib
115 Garnet manufactures .. 50%
98 Gas retorts . . . . . . . . . $3.00 ea
23 Gelatin. (See Glue.) *
450 “ mfs of n. S. p. f... 85%
300 Ginger ale or beer in
bottles COn... not Over
% pint . . . . . . . . . . . .18C doz
In bottles con. Over
%, not over 1% pints,
28G doz -
No additional duty on
bottles.
Others than in bottles
as above . . . . . . . . . . 50c ga}
Additional duty on
coverings.
667 G.Inger root, unground...Free
296 “ wine. (See Wines,
still.)
101 Glass, unpolished cylin-
der, crown and win-
SCHEDULE OF DUTIES.
101
Par.
102 Glass,
104 Glass,
105 Glass,
107 Glass,
Article.
dow, not ex. 10x15
square -
Ex. 10x15, not ex. 16x
24 in. Sq. . . . . . . . . . 1% Ib
Ex. 16x24, not ex. 24x
30 in. Sq . . . . . . . . .2%c Ib
Ex. 24x30, not ex. 24x
36 in. Sq. . . . . . . . . 2%c Ib
Ex. 24x36, not ex. 30x
40 in. Sq
Ex. 30x40, not ex. 40x
60 in sq. . . . . . . . . . §: Ib
Ex. 40x60 in. Sq. . . .4
cylinder and
crown polished, not
ex. 16x24 in. sq. .4c sq ft
Ex. 16x24, not ex. 24x
30 in. Sq. . . . . . . . . 6e sq ft
Ex. 24x30, not ex. 24x
60 in. sq . . . . . 15c sq ft
Ex. 24x60 in sq. .. 20c sq ft
cast polished
plate, finished or un-
finished and unsilver-
ed, not ex. 16x24 in.
tº tº - © e º 'º e º e º e º e º 'º 8c sq ft
24x
30 in. Sq . . . . . . . 10c sq ft
Ex. 24x30, not ex. 24x
60 in. Sq. . . . . . 22%c sq ft
Ex. 24x60 in. sq. .35c sq ft
cast polished
plate silvered, cylin-
der and crown glass
silvered, and looking
glass plates, ex. 144 sq.
in.., not ex. 16x24 in.
© tº e º 'º e º e º 'º e º e º 'º 11c sq ft
24x
30 in. Sq . . . . . . . 13c sq ft
Ex. 24x30, not ex. 24x
60 in. sq . . . . . . . 25c sq ft
Ex. 24x60 in. sq. .38c sq ft
cast polished
plate, silvered or un-
Silvered, and polished
cylinder, crown glass
silvered, or common
window glass, silver-
ed, Or unsilvered,
When bent, ground,
frosted, beveled, en-
graved, painted or
decorated, shall pay
in addition to the
rates
in.
5%
Par.
100
99
414
109
112
100
565
110
110
112
103 Glass, fluted, rolled, rib-
bed or rough plate, or
the same con. a wire
netting within itself,
not ex. 16x24 in. sq.,
%c sq ft
111
109
Article. Rate.
Ex. 16x24, not ex. 24x
30 in. sq . . . . . .114c sq ft
Ex. 24x30 in. sq. .1% c sq ft
If weighing Over 100
Ibs per 100 sq ft, "
shall pay additional
duty in excess at
the rates imposed.
If ground or decora-
ted, pays as cast
polished plate glass
unsilvered.
Glass bottles, decanters
Or Other Vessels or ar-
ticles of glass cut, en-
graved or ornamental,
filled or unfilled, and
Contents dutiable or
free . . . . . . . . . . . . . . . . . .
Glass bottles, vials, jars
and COvered or uncov-
ered demijohns or
carboys, filled or un-
filled, and , whether
contents dutiable or
free (except such as
contains mdse. Sub-
ject to an ad valorem
duty) holding more
than 1 pint . . . . . . . . . .1c ºb
Holding not over 1 pint,
not under 34 pint...1%e Ib
Holding less than 34 pt.,
50c gross
None of above to pay
less than 40%.
Glass buttons, -
%c line gross & 15%
Glass lenses ground and
polished to a spheri-
cal, cylindrical or
prismatic form, with
edges unground . . . . . 45%
With edges ground and
bevel. ... 10c doz prs & 45%
Glass manufactures, n.
S. p. f. . . . . . . . . . . . . . . . 45%
Glass, opal and porce-
lain . . . . . . . . . . • e - e. e. e. e . 60%
Glass plates rough, for
Optical instruments...Free
Glass slides for magic
lanterns . . . . . . . . . . . . . 45%
Glass strips not over 3
in. wide, ground to a
cylindrical form ..... 45%
Glass windows, stained 45%
Glasses, opera and field 45%
“ plano or coquill,
ground and polished,
with edge unground. . 45%
With edge ground and
beveled. 10c doz prs & 45%.
60%
i0
2 F. B. VANDEGRIFT & CO.
Par.
446
442
441
440
444
443
445
443.
442
440
444
Article. Rate.
Glove tranks shall pay
75% of duty provided
for gloves in fabrica-
tion of which they are
suitable.
Gloves, men’s “glace”
finish, kid, goat, or
other leather than
sheep origin. . $4.00 doz
Gloves, men’s “glace”
finish, lamb or sheep,
$4.00 doz
Gloves, men’s “glace”
finish Schma Schen,
$3.00 doz
Gloves, men's goat, kid
or Other leather than
sheep, with exterior
grain surface remov-
ed . . . . . . . . . . . $4.00 doz
Gloves, men's sheep ori-
gin With exterior
grain surface remov-
ed . . . . . . . . . . . $4.00 doz
Gloves, men's lined, pay
in addition to above
rates. . . . . . . . . $1.00 doz
Pique or prix seam add
40c doz
Emb. With more than
three cords, add
40c doz
Gloves, women’s or chil-
dren’s “glace” finish,
lamb or sheep. Not
Over 14 in. long,
.* $2.50 doz
Over 14 in., not over 17
in. long. . . . . . $3.50 doz prs
Over 17 in. long. $4.50 doz prs
Gloves, women’s or chil-
dren’s “glace” finish,
goat, kid or leather
Other than sheep, not
Over 14 in. long,
$3.00 doz prs
Over 14, not over 17 in. -
long . . . . . . . . . $3.75 doz pres
Over 17 in. long,
$4.75 doz
Gloves, women’s or chil-
dren’s “glace” finish,
Schmaschen, not over
14 in. long... $1.75 doz prs
Over 14 in., not over 17
in. long . . . . . . $2.25 doz prs
Over 17 in. long, -
$2.75 doz prºs
Gloves, women's or chll- -
dren’s kid, goat or
prs
prs
prs
prs
prs
prs
prºs
pr8
prs
Other leather than
sheep, with exterior
grain Surface Te-
Par.
Over 17 in. long,
443
445
23
572
210
24
438
108
567
511
530
177
193
612
53
425
118
117
266
210
265
264
409
449
566
656
626
568
279
119
569
Article. Rate.
moved, not over 14 in.
long . . . . . . . . . $3.00 doz
Over 14 in., not over 17
in. long. . . . . . $3.75 doz
prº
prs
$4.75 doz
Gloves, women's or chil-
dren's, sheep origin
with exterior grain
surface removed, not
over 17 in. long,
$2.50 doz
Over 17 in. long,
$3.50 doz
Gloves, women’s or chil-
dren's lined, pay in
addition to above
rates
Pique seam,
With more
cords, add . . . .40c doz
Glue, not above 10c lb,
2%C Ib
Above 10c, not over 35c
Ib
Over 35c Ib. . . . 15c Ib & 20%
prs
prS
prs
tº 4 & © e e g º e º e º e º e º 'º e º 'º
Glue Stock . . . . . . . . . . . . . €6
Glucose . . . . . . . . . . . . . . 1%c Ib
Glycerin, crude . . . . . . . 1C Ib
“ refined . . . . . . . . . . . 3C Ib
Goat skins, dressed.... 20%
Goggles and frame2.
(See Spectacles.)
Gold beaters' molds and
skins . . . . . . . . . . . . Free
“ bullion . . . . . . . . . . . . Free
“ coins . . . . . . . . . . . . . Free
“ leaf, per phºge 500
leaves . . . . . . . . . . . . $1.7
“ manufactures, Il.
S. p. f. . . . . . . . . . . . . 45%
“ medals as troph-
ies . . . . . . . . . . . . . . . Free
“ size . . . . . . . . . ----- 35%
Grains for millinery.... 50%
Granite dressed . . . . . . . 50%
“ undressed . . . .12c cu ft
Grape fruit . . . . . . . . . . . .1c Ib
“ Sugar . . . . . . . . . . 1%C Ib
Grapes . . . . . . . . . . . . 20C Cu ft
“ dried . . . . . . . . . . . 2%C Ib
Grass braids for making
hats. (See Straw
braids.)
“ manufactures, Il.
S. p. I. - - - - - - - - - - - 30%
“ n. S. p. f. . . . . . . . . Free
“ seed . . . . . . . . . . . . . Free
Grease enfleuraged. . . . . Free
“ for soap making...Free
“ Wool . . . . . . . . . . . . 34C no
Grindstones . . . . . . . $1.75 ton
Guano . . . . . . . tº e º e g º e º 'º - Free
SCHEDULE OF DUTIES.
103
Par.
286
658
699
422
428
158
158
158
158
157
517
448
570
450
91
571.
358
859
431
431
Article. Rate
Gum, substitute and
British . . . . . . . . . ..2c Ib
Gun barrels, single
tubes, forged . . . . . . . . Free
Gun blocks rough hewn
or planed on one side. Free
Gun powder, val. 20c or
less per Ib . . . . . . . . . . 4c Ib
Val. Over 20c Ib. . . . . . 6C Ib
Gun Wads . . . . . . . . . . . . . 20%
Guns, combination shot
and rifle, double bar-
reled, sporting Or
breech loading, vall.
not Over $5,
$1.50 each &
val. over $5, not over
$10. . . . . . . $4 each &
val. Over $10,
- $6 each &
without locks or fit-
tings. . . . . . . $6 each &
Guns, double barrels,
and Stocks for double
barreled, s p or t in g
breech loading shot-
guns and rifles, fur-
ther adv. than rough
bored. . . . . . $3 each & 35%
Guns or rifles, parts, n.
S. p. f. . . . . . . . . . . . . . . . b0%
Guns, single barreled
breech loading. $1 ea & 35%
Guns, shot, muzzle load-
ing
Gut, cat, whip or worm
crude
Gut, Cat, whip or worm
manufactured
Gutta percha, crude....Free
6 & “ mfs. of .... 35%
35%
Gypsum, Crude . . . . . 50c ton
“ ground . . . . . . . $2.25 ton
H.
Hair, animal, cleaned or
uncleaned . . . . . . . . Free
“ camel's, t h i r d
class, val. 12c or
less . . . . . . . . . . . . . . 4c Ib
Over 12c Ib . . . . . . . 7C Ib
** cloth, crinoline,
10c sq yd
“ cloth, seating,
20c sq yd
430
4:29
450
57.1
410
431
261
“ curled for beds. ... 10%
“ human, cleaned ... 20%
“ human, mfs. of... 35%
“ human, uncleaned. Free
“ pencils . . . .
“ press cloth. . . 20c sq yd
Hallbut, salted or fresh. 1C Ib
Par.
144
193
453
273
312
345
388
447
460
460
137
432
409
409
246
22
327
346
327
347
39
331
260
260
42
572
573
437.
664
145
Article. Rate
Hammers, blacksmiths’,
11,4,& Ib
“ n. S. p. f. . . . . . . . . %;
“ tuning . . . . . . . . . . . 45%
Hams . . . . . . . . . . . . . . . . 5c to
Handkerchlefs, Cotton
hemmed. (Same as
cloth; min. 45%.)
Hemstitched in add.
to hemmed, pay, 10%
add. (min. 55%). Em-
broidered (min. 60%.)
Handkerchiefs, fla. X,
hemp or ramie, hem-
med Or not
hemStitched, not em-
broidered
Handkerchlefs, silk, pay
rate On piece goods of
Same description (min.
50%). Hemstitched or
embroidered, add 10%
(min. 60%).
Harness, leather . . . . . . .
Harrows
Harvesters
Hat Wire
Hats, fur, val. not Over
$5 doz. . . . . . . . $2 doz & 20%
Vall. Over $5, not over
$10 doz. . . . . . . $3 doz & 20%
Val. Over $10, not over
$20 doz. . . . . . $5 doz & 20%
Val. over $20 doz,
$7 doz &
Hats, Straw, chip, grass,
palm leaf, willow, os- !
ier or rattan braids |
for making, In O t
bleached . . . . . . . . . . . .
bleached
Hats, straw, trimmed..
not trimmed
Hay
Hemlock bark extract, 1%c no
Hemp and tow of.... $20 ton
“ articles. (See Flax
50%
55.7%
e ‘º e º e o e º e e º e s e
20%
20%
45%
26%
articles.)
“ hackled . . . . . . . ... $40 ton
“ manufactures n. s.
p. f. . . . . . . . . . . . . . . 45%
“ seed oil . . . . . . . . 10c gal
“’ yarn. (See Flax
yarn.)
Herring, fresh . . . . . . . . 4c Ib
“ pickled . . . . . . . . . . § Ib
“ oil . . . . . . . . . . . . . . . C gatl
Hide cuttings . . . . . . . . . . Free
“ rope . . . . . . . . . . . . . . JFree
Hides, cattle, uncured... 15%
“ raw, n. s. p. f....Free
HInges or blanks, iron
Or Steel
104
F. B. VANDEGRIFT & CO.
Far. Article. Rate,
574 Hones . . . . . . . . . . . . . . . . Free
247 Honey . . . . . . . . . . . . . . . 20c gal
180 Hooks and eyes, metal-
lic. . . . . . . . . ..5% c Ib & 15%
575 Hoofs, Crude . . . . . . . . . . Free
248 Hop extract . . . . . . . . . . . . 50%
699 “ poles . . . . . . . . . . . . Free
576 ‘‘ roots for cultiva-
tion . . . . . . . . . . . . . . . . Free
248 Hops . . . . . . . . . . . . . . . . . 12C Ib
414 Horn buttons,
$4c line gross & 15%
449 “ manfs. of, n. S.
p. f. . . . . . . . º e º & tº e . 30%
577 “ tips . . . . . . . . . . . . . . . Free
577 Horns, crude . . . . . . . . . . Free
460 Horse rakes . . . . . . . . . . . 20%
163 “ shoes of wrought
iron . . . . . . . . . . . . . . . . . 1c
220 Horses, valued $150 or
less . . . . . . . . . . . . . . . . . . $30
valued over $150. . . . . . 25%
335 Hose, hydraulic, of flax,
504
578
449
580
25
26
549
339
453
645
581
27
28
582
583
127
127
142
159
143
hemp, jute or ramie. 20c Ib
Household effects used
abroad, not less than
OIle year . . . . . . . . . . . . . Free
I.
lce . . . . . . . . . . . . . . . . . . . . Free
India rubber manufac-
tures . . . . . . . . . . . . . . . 30%
Indigo . . . . . . . . . . . . . . . . Free
“ Carmined . . . . . . . . 10C ID
* extra cts and
pastes . . . . . . . . . . . . . .94c Ib
Ink and ink powders... 25%
Insect eggs
Insertings, cotton or flax 60%
Instruments, musical
and parts of . . . . . . . . . 45%
Instruments, profession-
al, accompanying OWn-
€I . . . . . . . . . . . . . • - - - - - Free
lodine Crude . . . . . . . . . . . Free
“ resublimed . . . . . . 20c Ib
lodoform . . . . . . . . . . . . . . $1 Ib
Ipecac . . . . . . . . . . . . . . . . Free
1 ridium . . . . . . . . . . . . . . . Free
Iron anchors . . . . . . . . . 114, c Ib
** anti-friction ball
forgings . . . . . . . . . . 45%
“ anvils . . . . . . . . . . 1% c no
‘‘ articles glazed with
vitreous glasses .. 40%
“ axles. axle bars
and blanks and forg-
ings for, Val. not Over
6C Ib . . . . . . . . . . . . . . . . 1C Ib
Iron, bar . . . . . . . . . . . 6-10C Ib
Par.
128
125
126
152
152
145
412
149
148
151
124
520
129
160
152
123
127
144
145
150
128
128
124
“ bars or shapes of
rolled or hammered
iron, n. s. p. f. . . . .8-10C Ib
Article. g Rate.
Iron barrel h o op s,
punched, in addition
to duty on band iron,
1-10C Ib
Iron beams, girders,
joists, angles, chan-
nels, car truck chan-
nels, TT columns and
posts, deck and bulb
beams and building
forms . . . . . . . . . . . . 5-10c fo
Iron boiler plate, not
thinner than No. 10
wire gauge, val. 1c Ib
or less . . . . . . . . . . . . 5-106, Ib
val. Over 1C, not over -
2c Ib . . . . . . . • - - - - 6.-10c Ib
val. Over 2G, not Over
4c Ib -
val. over 4c Ib . . . . . . 25%
Iron boiler tubes, not
thinner than No. 16
Wire gauge . . . . . . . . . . 2c Ib
Iron boiler tubes, fin-
ished. n. S. p. f. . . . . . 30%
Iron bolts and blanks.1%C Ib
Iron buckles for trou-
sers, val. not over 15c
100. . . . . . . . . . 5c 100 & 15%
val. Over 15c, not
over 50c 100..10c 100 & 15%
val. Over 50c 100,
* 15c 100 & 15%
iron castings, mallea- -
ble, n. S. p. f. . . . . . 9-10C Ib
Iron castings, n. S. p. f., -
8-10C Ib
Iron chains. (See Chains.)
Iron (charcoal, used as
fuel) -
Iron, chromate of . . . . . . Free
“ cotton ties . . . . 5-10C
“ cut nails and spikes,
6-10c
“ cylindrical furnaces,
2 2C
“ flats, not less than
1x} . . . . . . . . . . . 6-10C Ib
“ forgings, n. s. p. f. 35%
“ blackSmith's han-
mers, s le d g e S,
track tools and
Wedges . . . . . . . . . 1%C Ib
“ hinges or blanks.11%c Ib
‘‘ hollowware, coat-
ed
Iron, hoop, band or
scroll, n. S. p. f., val
3G 1b or less, 8 in. or
less wide, and under
9% in. thick, not thin-
ner than No. 10 wire
£allèſe . . . . . . . . ... .5-10c Ib
SCHEDULE OF DUTIES.
105
Article.
thinner than No. 10
wire gauge, not thin-
ner than No. 20 wire
gauge
Par.
£allèſe . . . . . . . . . . . . 8-10C Ib
163 lnon horse, mule Or OX
shoes . . . . . . . . . . . . . . . . 1C Ib
122 iron kentledge, spiegel-
elsen, ferro manga-
nese and ferro sili-
COIl . . . . . . . . tº ſº e º e º e & $4 ton
193 kron manufactures, n. s.
e a tº e º e º ºs e º te tº e º & E & e º is e 45%
138 lnon, no allowance for
ruSt.
121 “ ore . . . . . . . . . . . . . 40c ton
122 “ pigs . . . . . . . . . . . . $4 ton
147 “ pipe, cast . . . . . . 4-10c
130 “ railway bars, T-
rails and flat rails,
7-20C Ib
130° “ railway fish plates
or splice bars. .4-10c Ib
167 “ rivets . . . . . . . . . . . . 2C fo
123 “ round, not less
than 7-16 in. dia.,
6-10C Ib
124 Less than 7–16 in.
dia. . . . . . . . . . . . 8-10C Ib
169 Iron screws for Wood,
over 2 in. long . . . . . . . 4c Ib
over 1 in, not Over 2
in. long . . . . . . . . . . . . . . 6C Ib
over 14, in, not over 1
in, long . . . . . . . . . . . . 8% c Ib
#4 in or less in length,
* 12C Ib
131 lnon sheets, common or
black, and skelp iron,
Val 3C Ib or less, thin-
ner than No. 10, not
thinner than No. 20,
Wire gauge . . . • . . . .7-10c Ib
thinner than
25 wire gauge. . . . . 8–10c Ib
thinner than No. 25,
not thinner than NO.
32 wire gauge... 1 1-10c Ib
thinner than No. 32
Wire gauge. . . . . . 1 2-10C Ib
corrugated or crimped,
1 1-10C Ib
Above, not thinner
than No. 10 gauge,
* pay as Plate iron.
i82 Iron sheets or plates,
except tinplates, coat-
ted with zinc, spelter
or lead, pay 2-10c Ib
more than if not
coated.
Rate.
Par.
133
126
163
123
148
674
164
134
152
170
148
171
137
148
23
450
584
584
Article. Rate.
Iron sheets, polished. . .2c Ib
Iron skelp, sheared.
(See Iron boiler plates.)
Iron spikes, nuts or
Washers . . . . . . . . . . . . . 1C It,
Iron, square, rolled or
hammered, not less
than 1 in. Wide nor
less than % in. thick
6-10C Fo
Iron stove plates. . . . 8-10c Ib
.“ Sulphuret of . . . . . . Free
“ sulphate of . . . . . . 34c Ib
“ tacks, brads or
sprigs, cut, not ex 16
OZ per M. . . . . . . . . . . . 114c M
ex 16 oz per M. . . . . 1%c Ib
Iron taggerS,
with tin or lead. ...1%c Ib
Iron tubes, n. S. p. f.... 35%
“ umbrella and para-
sol ribs and stretchers 50%
Iron vessels, n. S. p. f., -
8–10c Ib
** wheels for railway
Dllr DOS6S . . . . . . . . . . . 114,0 Ib
ingots for . . . . . . . . . 134c no
Iron wire, not less than
No. 13 wire gauge..1% c Ib
less than No. 13, not
less than No. 16 wire
gauge
less than No. 16 wire-
gauge
val over 4c Ib. . . . . . . . 40%
Iron, wrought and cast,
SCI alſ) . . . . . . • • - - - - - - - $4 ton
Irons, hatters’ and tai-
lors' . . . . . . . . . . . . . . 8-10C Ib
Isinglass. (See Glue.)
Ivory, mſs. of, n. S. p. f. .35%
“ tusks, crude or
cut
“ vegetable, crude...Free
Jalap . . . . . . . . . . . . . . . . , Free
Japan varnish . . . . . . ... 35%
Jars, glass. (See Bot-
tles.)
Jasper, mfs. n. S. p. f... 50%
Jellies
Jet, crude . . . . . . . . . . . . . Free
“ mfs, n. s. p. f..... 50%
& © e º gº tº tº gº gº & ©
Jewelry, n. S. p. f. . . . . . 60%
Jewels, clock or watch. 10%
Joss stick . . . . . . . . . . . . . . Free
Juice, lime, lemon and
SOur Orange
Junk, old . . . . . . . . . . . . . . Free
Jute, fibers . . . . . . . . . . ... Free
“ fabrics, woven, not
ex 60 in. wide, weigh-
106
F. B. VANDEGRIFT & CO.
Par.
328
591
438
93
589
590
292
366
370
155
153
588
591
592
Article. Rate.
ing not less than 6 oz
sq yd and not ex. 30
threads sq in., 53c Ib
and . . . . . . . . . . . . . . . . 15%
ex. 30, not ex. 55
threads sq in .7%c Ib & 15%
Jute yarns, single, not
finer than No. 5,
1c Ib and 10%
finer than No. 5. . . . . . 35%
Kain lte
Kangaroo skins, dress-
Kelp
Kieserite
Kirschwasser . . . . . . $2.25 gal
Knit fabrics of wool.
(See Wool cloths.)
Knit goods, woolen,
44c Ib & 60%
Knives, forks and steels
for butchers, carving,
cooks, hunting, kitch-
en, bread, butter, veg-
etables, fruit, cheese,
plumbers, painters,
palette, artists, and
shoes, with handles of
° pearl, shell or ivory,
16c ea and 15%
with handles of deer
horn, 12c ea and . . . . . . 15%
with handles of rub-
ber, bone or pyroxy-
lin
with handles of other
material.. 11%C ea and
but none shall pay
less than . . . . . . . . . . . .
Knlves, pen, pocket,
clasp, pruning, bud-
ding or manicure, and
parts of, vall, not over
40c doz.
val. Over 40C, not Over
50c doz. ... 10 piece & 40%
val. Over 50c, not over
$1.25 doz. .5c piece & 40%
val. Over $1.25, not -
over $3 doz, -
10c piece & 40%
val. Over $3 doz,
20c piece & 40%
Blades and parts pay
min. . . . . . . . 5c piece & 40%
Kryolith
kyan Ite
15%
15%
45%
e e s tº e º e º e - e. e. e.
Lac dye, crude, seed,
Par.
182
181
60
182
457.
182
193
182
456
182
182
182
182
55
182
438
438
450
447
450
438
- Article. Rate.
button, stick and
shell . . . . . . . . . . . . . . . . . Free
Lac Spirits . . . . . . . . . . . . Free
Lace beaded . . . . . . . . . . . 60%
“ cotton or flax .... 60%
“ handkerchiefs 60%
“ tinsel wire ...... . 60%
Lactarine . . . . . . . . . . . . . . Free
l—actic acid . . . . . . . . . . . . 3c Ib
Lahn . . . . . . . . . . . . . . . . . 5c Ib
Lakes, n. S. p. f... . . . . . 30%
l–ame . . . . . . . . . . . . . . . . . .5c Ib
Lampblack . . . . . . . . . . . . 25%
1-anterns, magic, glass
Slides for . . . . . . . . . . . . . 5%
Lard . . . . . . . . . . . to º 2C Ib
Laths . . . . . . . . . . . tº - e º 'º e 25c M
Laudanum . . . . . . e e º e - e. e. 40%
Lava, crude . . . . . . . . . . . Free
“ tips for burners,
10c gross & 15%
Lead, acetate of white,
, 344c Ib
“ bars and pigs. . .2% c no
‘‘ bearing ore, on the
lead . . . . . . . . . . . . 1%c Ib
“ brown, gray and
yellow . . . . . . . . . 24c ro
“ bullion and dross,
214 c Ib
“ for pencils . . . . . . . . 10%
“ glaziers' ....... 214,0 lb
“ mfs, n. S. p. f. . . . . 45%
“ nitrate of . . . . . . 214,0. Ib
“ n. S. p. f. . . . . . . . 21,4C Ib

“ pencils, 45c gross & 25%
“ pipe . . . . . . . . . . . . 2%C Ib
“ red . . . . . . . . . . . . . 27Ac Ib
“ refuse . . . . . . . . . . 21/60 lb
“. Sheets . . . . . . . . . . 21,450 lb
“ shot . . . . . . . . . . . . 2%C Ib
* White . . . . . . . . . . 2%c Ib
“ Wire . . . . . . . . . . . . 2%c Ib
Leather, band or belt-
ing, sole, and dressed
upper . . . . . . . . . . . . . . 20%
Leather boots and shoes,
25%
“ cut into uppers and
Vamps, pay as mfs.
leather . . . . . . . . . . . . . 35%
Leather harness and
Saddles . . . . . . . . . . . . . . . 45%
Leather, mfs. of n. s.
f. . . . . . . . . . . . . . . . . . 35%
D. I. -
Leather, patent or jap-
anned, weighing not
over 10 Ibs. per doz.
skins. . . . . . . . 30c Ib & 20%
Weighing over 10, not
over 25 Ib doz skins,
30c Ib & 10%
SCHEDULE OF DUTIES.
Par.
438
438
596
,205
597
267
627
300
266
109
111
29
598
599
90
46
11
600
597
266
118
117
338
337
254
Article. Rate.
Weighing over 25 lbs
doz skins.... 20c Ib & 10%
Leather piano-forte and
action . . . . . . . . . . . . . . 35%
|Leather shoe laces,
50c gross pairs & 20%
Leeches . . . . . . . . . . . . . . . . Free
Lees, Crystals, contg
not over 90% B. of P. .4c Ib
contg more than 90%
B. of P. . . . . . . . . . . . . .5c Ib
Lees, wine, crude, contg
not over 40% B. of
P. . . . . . . . . . . . . . . . 1c
“ wine, crude, contg
over 40% B. of
P
Ib
Lermon juice Free
“ peel, preserved or
dried
“ peel, not prepared
or dried
Lemonade. (See Ginger
a le.)
Lennons
Lenses, of glass or peb-
ble, ground and pol-
ished to a spherical,
cylindrical, or pris-
matic form, with the
edges unground
with edges ground or
beveled,
10c doz pairs &
Lenses, photographic
and projecting
Llcorice, extracts of,
and pastes and rolls,
n. S. p. f. . . . . . . . . . . 4%.c Ib
Llcorice root, crude. . . . Free
Life boats and appara-
tus imported by in-
corporated societies...Free
LIme, including weight
of packages. . . . . . 5c 100 Ibs
Lime art. Sulphate of..}c Ib
45%
45%
45%
Lime, borates of, not
over 36%, a B a... . . . . 3C Ib
Over 36%, a B a . . . . . . 4c Ib
Lime, citrate of . . . . . . . Free
“ chloride of . . . . . 1–5c Ib
“ juice . . . . . . . . . . . . . Free
Limes . . . . . . . . . . . . . . . . . 1C Ib
Limestone, dressed 50%
‘‘ undressed . . . . 12c cu ft
“ rock asphalt. .. 50c ton
Linen shirt collars and
cuffs. . . . . . . . 40c doz & 20%
Linoleum, corticene and
cork carpets. (See Oil
cloth, floor.)
Linseed
Par.
37
292
18
60
602
400
400
400
503
601
603
699
22
59
194
194
195
195
195
Article. Rate.
i-inseed oil . . . . . . . . . . 20c gal
Liquors, spirituous, $2.25 gal
“ coloring for . . . . . . 50%
Litharge . . . . . . . . . . . ..2%c Ib
Litmus . . . . . . . . . . . . . . . Free
Llthographic prints, n.
S. p. f., not ex. 8-1000
in. thick . . . . . . . . . . . . 20c IS
Ex. 8-1000 in., not ex.
20-1000 in. thick, ex.
35 sq. in., buit not ex.
400 sq. in. cutting size,
8C Ib
Ex. 8-1000 in. not ex.
20-1000 in. thick. ex.
400 sq. in, cutting size 35%
Ex. 8-1000 in., not ex.
20-1000 in. thick, not
ex. 35 sq. in., cutting
size . . . . . . . . . . . . . . . . . . 5c Ib
Ex. 20-1000 in. thick 6c Ib
Lithographic cigar la-
bels, &c., in less than
8 colors (bronze print-
ing to count as two
colors) . . . . . . . . . . . . . 20C Ib
Entirely in bronze
printing . . . . . . . . . . . . 15c Ib
In eight of more col-
OI'S - - - - - - - - - - - - - - - - - 30C Ib
Printed all or in part
in metal leaf ... . . . . 50C ib
Lithographic books, not
ex. 24 oz. each . . . . . . 8c ib
Llthographic prints for
societies. (See: Books.)
Lithographic stones, not
engraved . . . . . . . . . Free
Lodestones . . . . . . . . . . . . Free
Logs . . . . . . . . . . . . . . . . . . Free
Logwood extract, n. s.
p. f. . . . . . . . . . . . . . . . . 7%c It,
London purple . . . . . . . . . 15%
Lumber for spars and
Wharves . . . . . . . . . . 1c cu ft
Lumber, hewn or sided,
1c cu ft
Lumber, sawed of White
wood, sycamore and
bass Wood. . . . . . . . . . $1 M ft
Lumber, sawed, n. s.
p. f. . . . . . . . . . . . $2 M ft
“ planed Or fin-
ished, in addition to
rates on lumber saw-
ed, as follows:
For each side plained
or finished. . . . . . . . 50C M ft
E’laned on one side
and grooved and ton-
gued
Planed on two sides
108
F. B. VANDEGRIFT & CO.
Par.
248
229
667
460
261
604
31
31
605
606
227
700
115
298
121
607
566
608
569
609
210
503
501
403
114
115
11:4
114
114
610
611
451
423
Article. Rate.
and grooved and
tongued. . . . . . . . . $1.50 M ft
Lupul in 50%
• * > * > e º 'º e º e º 'º e º e
*
Macaron!
Mace, unground
Machines, threshing ...
Mackerei, salted
fresh
Madder, ground and ex-
tract Of,
Magnesla, ca. 1 c 1 n e d,
med. . . . . . . . . . . . . . . . 7C Ib
‘‘ carbonate of, med. 3c Ib
“ sulphate of..... 1-5c Ib
Magnesite, crude
Magnesium
Malze, bu. 56 lbs. . . . . 15C bu
Malaca joints for canes
and umbrella, sticks...Free
Malachite manufactures
n. S. p. f.
Malt extract fluid
bottles
Manganiferous ore...40c ton
Manganese oxide and
Ore of
Manllia fibers . . . . . . . . .
Manna . . . . . . . . . . . . . ... Free
Manures . . . . . . . . . . . . . . . Free
Manuscripts
Maple sugar and syrup 4c Ib
Maps for society. (See
Books.)
Maps over 20 years old. Free
“ n. S. p. f - ©
Marble in blocks, rough
Or squared only..65c cu ft
Marble manufactures,
n. S. p. f. . . . . . . . . . . . . 50%
Marble mosaic cubes,
not ex. 2 cu in., loose,
1c no & 20%
Attached to paper or
other material,
20c superficial ft & 35%
Marble paving tiles.
(See Tiles.)
Marble sawed or dress-
ed, over 2 in. thick,
$1.10 cu ft
e e º e º e º e º e
Marrow, crude
Marshmallow root,
leaves or flow ers,
Crude . . . . . . . . . . . . . . . Free
Masks, paper or pulp.. 35%
Matches, in boxes con.
not over 100 ea. . . .8c gross
Imported other than
Par.
452
333
452
228
232
273
274
276
276
275
612
67
68
.68
613
492
414
193
179
190
183
176
183
453
184
184
111
238
579
239
239
615
97
183
301
695
Article. Rate.
in boxes con. not over
100 matches each. . . .1c M
Matting of cocoa, fiber
or rattan. . . . . . . . . .6c sq yd
Matting, floor, val. not .
Over 10c sq yd. . . .3c sq yd
val. Over 10c sq yd,
- 7c sq yd & 25%
Mats of cocoa, fiber or
rattan . . . . . . . . . . . . 4c sq ft
Meal, corn, bu. 48 Ibs.
20c bu
“ rice . . . . . . . . . . . . . 34c Ib
Meat, bacon and ham..5c Ib
“ beef, veal, mut-
ton and pork, fresh. .2c Ib
Meat, extract of, n. s.
p. f. . . . . . . . . . . . . . . . . 35C Ib
Meat, fluid extract of... 15c Ib
“ prep., n. S. p. f... 25%
Medals, as trophies. . . . Free
Medicinal preparations, -
alcoholic (min. 25%) 55c Ib
Medicinal preparations,
(Mercurial) ... 35%
Medical preparations,
non-alcoholic
Meerschaum, crude . . . .
Metal, bell, broken. . . . . Free
“ buttons, n. S. p. f.,
$4c line gross & 15%
“ manufactures of,
n. S. p. f. . . . . . . . . . 4
“ threads of tinsel
Wire . . . . . . 5c Ib & 35%
“ type, on lead....1%e Ib
“ unwrought, n. s.
p. f.
“ yellow
Metallic mineral
stances, crude
Metronomes . . . . . . . . . . . 45%
Mica, crude. . . .6c Ib & 20%
“ cut. . . . . . ..12c Ib & 20%
Microscopes . . . . . . . . . . . 45%
Millk, fresh . . . . . . . . . . ..2c gal
“ of India, rubber... Free
“ preserved
“ Sugar of . . . . . . . . . 5G Ib
Mineral Salts
** substances, arti-
cles composed of, n. S.
p. f., not decorated... 35%
if decorated 45%
Mineral substances,
20%
crude . . . . . . . . . . . . .
“ waters, bottles
not over 1 pt, 20c doz;
over 1 pt, not over 1
qt, 30c doz; other-
wise, duty on cover-
ings and . . . . . . . . . . .24c gal
Mineral, Wax . . . . . . . . . . Free
SCHEDULE OF DUTIES.
109
Par.
614
105
Article.
Minerals, crude . . . . . . . Free
Mirror plates. (See
Glass, cast, polished,
plate, silvered.)
112 Mirrors, not ex 144 Sq
105
106
616
209
209
183
118
438
617
455
81
460
163
220
363
604
241
503
500
602
501
403
453
618
157
287
274
619
160
161
162
in. With or without
frames . . . . . . . . . . . . . .
Mirrors, ex 144 sq in.
(See Glass, cast, pol-
ished, plate, silvered.)
Mirrors, framed, pay
additional duty On
frames. .
Models of invention. ... Free
Molasses, concrete, teS-
ting not over 75 deg.
8.S. SUlga.I . . . . . . . 95-100C ib
For every additional
degree add . . . .35-1000c Ib
Molasses testing . Over
40 degrees, not OVer
56 degrees. . . . . . . . . 3c gal
testing 56 degrees and
OV6I . . . . . . . . . . . • * * * * 6c gal
Monazlte Sand . . . . . . . . .6C Ib
Monumeptal
dressed
Morocco, skins for .... 10%
Morphia, and morphine $1 oz.
Moss, crude Fºr
“ peat
** Sea.
Movvers
Mule ShoeS
Mules, val $150 or less,
$30; vall over $150. . . .
Mungo, Woolen
Munjeet, ground,
extracts Of
Mushrooms, prepared, in
glass, etc., including
coverings 14C Ib
Music for society. (See
Books.)
“ for use of U. S. . . Free
“ in raised print for
the blind
45%
tº e e º sº e º 'º e º 'º
Free
“ over 20 years old...Free
“ sheets or books... 25%
Musical instrumentS,
Imetal strings and
cases for . . . . . . . . . . . .
Musk, crude -
Muskets, and parts of... 25%
Mustard, prepared ... 10c Ib
Mutton, fresh
Myrobolans
Nalls, cut . . . . . . . . . . 6-10C Ib
“ horseshoe and hob,
2% c Ib
“ iron or steel wire,
. 50%
Par.
161
524
137
165
165
620
165
165
165
408
339
621
403
185
185
185
193
185
362
252
667
626
269
622
622
622
270
163
272
622
271
623
624
231
230
231
Article. Rate.
not under 1 in. long,
not lighter than No.
16 Wire gauge. . . . . . 1%g to
less than 1 in. long,
lighter than No. 16
Wire gauge . . . . . . . . . . 1c Ib
Nails, Wrought, n. S. p.
f. . . . . . . . . . . . . © e º 'º e & 24c Ib
Napthal in . . . . . • e º e º e º e Free
Needle wire . . . . . . . . . . . 45%
Needles, crochet . . . . . . . 25%
“ for knitting and
sewing machines,
$1 M & 25%
Needles, hand sewing
and darning . . . . . . . . . Free
Needles, knitting and
tape . . . . . . . . . . . . . . . . 5%
Needles, latch. . $1 M & 25%
“ n. S. p. f. . . . . . . . . . 25%
Nets and nettings,
beaded . . . . . . . . . . . . . . 60%
Nets and nettings, cot-
ton, flax or silk. . . . . . 60%
Newspapers, if periodi-
cals . . . . . . . . . . . . . Free
“ n. S. p. f. . . . . . . . . ... 25%
Nickel . . . . . . . . . . . . . . . . . 6C Ib
“ alloy . . . . . . . . . . . . . 6C ſo
“ bars, ingots, pigs
Or sheets . . . . . . . . . 6C ID
“ manufactures 45%
“ oxide . . . . . . . . . . . . . 6C Ib
Niter cake . . . . . . . . . $1.25 ton
Nolls Wool . . . . . . . . . . . . 20c Ib
Nursery stock . . . . . . . . . 25%
Nutmegs . . . . . . . . . . . . . . Frée
Nut oil, n. S. p. f. . . . . . . Free
Nuts, almonds, not
Shelled . . . . . . . . . . . . . . 4C fib
shelled . . . . . . . . . . . 6C Ib
“ Brazil . . . . . . . . . . . . Free
“ cream . . . . . . . . . . . Free
“ cocoa, in the shell. Free
filberts and Wal-
nuts, not shelled. .3C ib
Shelled . . . . . . . . . . . 5c Ib
** iron Or Steel,
Wrought . . . . . . . . . 1C It,
“ n. S. p. f. . . . . . . . . 1C Ib
“ palm . . . . . . . . . . . . . . Free
“ peanuts,
not shelled. . . .1%c Ib
Shelled . . . . . . . . 1C Ib
Nux vomica. . . . . . . . . . . . Free
O.
Oakum . . . . . . . . . . . . . . . Free
Oat hulls . . . . . . . . 10C 100 Ibs
“ meal . . . . . . . . . . . . . 1C rºb
Oats . . . . . . . . . . . . . . . . . 15C bu
“ rolled . . . . . . . . . . . . 1C Ib
11()
F. B. VANDEGRIFT & Co.
40
Par. Article. Rate.
Sec. 16. Obscene articles
prohibited.
49 Ocher, crude . . . . . . . . . c Ib
49 “ earths. (See Ocher,
crude.)
49 “ ground in oil or
Water . . . . . . . . . . 1%c Ib
49 “ powdered . . . . . . . .9%c ro
626 Oll, almond, amber, am-
bergris, anise, aniline,
anthos and a Spic . . . . Free
626 Oil, bergamot . . . . . . . . . . Free
626 “ cajeput, caraway,
cassia, cinnamon,
cedrat, chamomile,
citronella, c i v e t
and cocoanut . . . . . Free
625 “ cake . . . . . . . . . . . . . Free
254 “ cake, no drawback
OIl.
337 “ cloth for floors, un-
der 12 ft wide,
-- 8c sq yd & 15%
Over 12 ft wide,
20c sq yd & 20%
b24 “ dead or creosote. . Free
3 ** distilled, essential,
expressed and ren-
- dered . . . . . . . . . . . . 25%
626 “ fennel . . . . . . . . . . . Free
42 “ fish, herring, seal
- and whale . . . . . . 8c gal
37 ‘‘ flaxseed, linseed
and poppy seed. 20c gal
568 “ for soap making... Free
38 “ fusel . . . . . . . . . . . 34c Ib
39 “ hemp and rape
Seed . . . . . . . . . . . 10c gal
626 “ ichthyol . . . . . . . . . Free
626 “ jasmine, juglandi-
um and juniper. . . Free
626 “ lemon and lime. . . Free
626 “ mace . . . . . . . . . . . . Free
626 “ neroli and nut. . . . Free
626 “ Orange, attar of
roses and Origa-
Inll In . . . . . . . . . . . . . Free
626 “ palm . . . . . . . . . . Free
4l “ peppermint . . . . . 50c Ib
626 “ petroleum . . . . . . . . Free
626 “ rosemary, sesame,
thyme and valler-
ian . . . . . . . . . . . . . . Free
254 “ seeds . . . . . . . . . . . 25C bu
626 “ from American
fisheries . . . . . . . . . Free
1 “ of vitriol, n. S.
p. f. . . . . . ‘. . . . . . . 34c Ib
Olive oil, in bottles, jars
or similar packages,
Par
626
40
264
264
249
114
115
114
114
114
100
111
43
43
43
43
43
111
565
266
251
628
476
525
520
550
629
181
121
6-9
475
479
Article. Rate.
Ollve oil for manufac-
turing purposes
Olive oil, n. S. p. f. . .40c gal
Olives, in bottles or jars,
25c gal
“ other than in bot-
tles or jars. . . . . 15c gal
Onions . . . . . . . . . . . . . . 40c bu
Onyx in blocks... $1.50 cu ft
‘‘ manufactures . . . . . 50%
not
“ mosaic cubes,
. ex. 2 cu in. if loose,
1C Ib &
to any
20%
attached
material,
20c superficial ft &
“ sawed or dress-
ed, over 2 in. thick,
35%
$1.10 cu ft
“ paving tiles. (See
Tiles.)
Opal glassware . . . . . . . . 60%
Opera glasses . . . . . . . . . . 45%
Opium, aloueous extract
of . . . . . . . . ... • * * * * * 40%
“ crude, &h. 9%
morphia. . . . . . . . $1.00 lb
con. less than 9%
morphia. . . . . . . . Ib
“ liquid p r e p a r al-
tions of . . . . . . . . . . 40%
“ prepared for smok-
ing . . . . . . . . . . . . $6.00 Ib
“ tincture of . . . . . . . 40%
Optical instruments, and
frames and mount-
ings for . . . . . . . . . . 45%
O p t I c a l instruments,
rough glass discs for. Free
Orange boxes or barrels 30%
50c gal
205
597
267
627
“ juice, Sour . . . . . . . Free
“ mineral . . . . . . . . 3% c Ib
“ peel, preserved or
dried . . . . . . . . . . . . . . . . c Ib
Orange peel not pre-
served or dried. . . . . . . Free
Oranges . . . . . . . . . . . . . . . 1C Ib
Orchids . . . . . . . . . . . . . . . . 25% .
Orch!! . . . . . . . . . . . . . . . . Free
Ore, antimony, crude
Sulphite of . . . . . . . . . . . Free
Ore, Cobalt . . . . . . . . . . . . Free
“ chromic . . . . . . . . . . Free
“ emery . . . . . . . . Free
“ gold, silver or cop-
per - - - - - - - - - - - - - - - - - Free
Ore, iron and mangani-
ferous . . . . . . . . . . . . . 40c ton
Ore, lead on lead....1%C It,
“ manganiferous. .40c ton
“ nickel
Orleans and extracts of . Free
Orpinient
SCHELULE OF DUTIES.
111
Par.
206
206
630
163.
232
57
454
58
58
202
631
552
449
251
403
459
897
397
399
405
398
402
402
401
407
451
402
398
s9s
396
Article. Rate.
Osler for baske mak-
ers . . . . . . . . . . . . . . 20%
“ manufactures . . . . 40%
Osmium . . . . . . . . . . . . . . . Free
Ox shoes . . . . . . . . . . . . . . 1C Ib
P.
Paddy . . . . . . . . . . . . . . . . 4c Ib
Paint, white, cont’g
zinc, dry . . . . . . . . . 1C Ib
“ white, contg zinc,
ground in oil. ...1% c Ib
Paintings, n. S. p. f. . . . 20%
Paints, artists', n. S. p.
Paints, n. S. p. f. . . . . . e e
Palings . . . . . . . . . . . . . . . 10%
Palladium
Palm leaf,
fans
Palm leaf mſs., n. S. p.
f. . . . . . . . . . . . . . . . . ... 30%
Palms
Pamphlets
Paper for cigarettes. . . .
“ copºng, weighing
not ovér 6 Ibs to ream
of 480 sheets, on basis
Of 20x30 in., in any
crude and
15%
Weighing over 6 lbs.,
not Over 10 Ibs to
Fe3. In
Paper crepe and filter-
ing . . . . . . . . . . 6C Ib &
Paper envelopes, plain. .20%
If embossed, printed or
tinted 35%
Paper, fancy, boxes of .. 45%
“ for photographic
purposes, s u r f a c e
Coated . . . . . .
Paper hangings 25%
“ Jacquard . . . . ... 35%
“ letter, note, draw-
ing, ledger, tablet,
etc. (Same as Paper,
writing.)
Paper mfs. n. S. p. f. . . .
“ masks
“ n. S. p. f
“ parchment,
2C Ib &
** plain basic pho-
tographic. . . . . 3C ſt &
Paper, printing, suitable
for books and news-
papers, val. not over
2c Ib . . . . . . . . . . . . . . 3-10C Ib
Val. Over 2G., not over
2%c Ib . . . . . . . . . . . . 4-10C Ib
Val. over 2%.c., not over
3C Ib . . . . . . . . . . . . . 5-10C Ib
15%
30%
e e º 'º e º 'º º
tº º e º 'º º e e
ge e º 'º e º tº dº tº
15%
Par.
394
398
397
632
401
450
633
170
462
700
462
634
95
95
56
506
241
112
70
438
616
262
262
271
252
262
262
414
91
635
450
Article. Rate.
Val. Over 3c., not over
4c Ib . . . . . . . . . . . . . 6-10C Ib
Vall. Over 4.C., not Over
5c Ib . . . . . . . . . . . . . . 8-10c Ib
Val. Over 5c Ib . . . . . . . . .
Paper, sheathing . . . . . . 10%
“ surface coated, n.
S. p. f. . . . . . . 2%c no & 157.
Printed, covered with
metal, gelatin or flock,
3c Ib & 20%
Paper, stereotype, bibu-
lous, tissue, pottery.
(See Paper, copying.)
Paper Stock . . . . . . . . . . .
“ writing, weight
under 10 Ibs per realm
25% ad valoren.
Weighing not under
10 Ibs., and not Over
15 lbs. per ream
2c Ib &
Weighing over 15 lbs to
T€8.IIl . . . . . . . . 3%c no &
If ruled, embossed or
printed, add 10%. In
computing duty, every
180,000 sq. in. makes a
Tea Iſl.
Papler mache, mfs. of,
n. S. p. f. . . . . . . . . . . . 35%
Paraffin . . . . . . . . . . . . . . .
Parasol ribs and stretch-
eſs ... . . . . . . . . . . . . . . . . . 50%
Parasol sticks, finished. 40%
“ Sticks, rough
Parasols
Parchment
Parian ware, decorated 60%
& 4 “ plain white, 55%
Parls green
6 & white, dry.
Whiting.)
Paste, Brazil
“ fish . . . . . . . . . . . . . .
“ manufactures Of,
n. S. p. f. . . . . . . . . . . . . 45%
Paste, toilet . . . . . . . . . .
Patent leather.
Leather, patent.)
Patterns for machinery. Free
Peaches, dried
“ green or ripe. . . .25c bu
Peanuts. (See Nuts.)
Pear Stocks. . . . . $1 M & 15%
Pears, dried
“ green or ripe. . . . 25c bu
Pearl buttons,
1%c line gross & 15%
hardening
‘‘ mother of
mother of,
Pearls, natural,
Strung
tº $ sº tº 9 º' tº e º ſº tº
11
2 F. B. VANDEGRIFT & CO.
Par.
434
250
250
250
241
250
250
455
507
627
267
457
410
456
456
456
456
187
186
187
41
667
287
70
621
626
193
524
638
639
61
458
404
403
503
500
137
202
241
122
58
57
58
386
Par.
263
188
459
459
Article. Rate.
Pearls, set or strung. .. 60%
Pease, dried . . . . . . . . . 30c bu
“ green, bu 60 lbs, 40c bu
“ in packages. . . . . . . 1C Ib
“ prepared . . . . . . . 214, C Ib
“ seed, bu 60 lb. . .40c bu
“ split . . . . . . . . . . . 40c bu
Peat moss . . . . . . . . $1.00 ton
Pebble, Brazilian . . . . . . Free
Peel, Orange and lemon.
not prepared or dried Free
Peel, Orange and lemon,
preserved or dried. . . .2c Ib
Pencil, leads for
Pencils, hair . . . . . . . . . .
“ paper or wood,
filled. . .45c gross & 25%
“ slate, n. S. p. f. .3c 100
slate, wood cover-
ed . . . . . . . . . . . . . . .
“ wood, lead filled
45c gross & 25%
Penholders, and tips
and parts of
Pens, except gold pens,
“ gold
Peppermint oil
Pepper, black and white,
unground . . . . . . . . . . . . Free
Pepper, red . . . . . . . . . . 2% c Ib
Perfumery, alcoholic,
60c Ib & 45%
“. . non-alcoholic . . . . 50%
Periodicals . . . . . . . . . . .... Free
Petroleum . . . . . . . . . . . . . Free
Pewter manufactures... 45%
Pheno! . . . . . . . . . . . . . . . . Free
Philosophical apparatus
for Societies or schools,
- Free
Phosphates, crude
Phosphorus
Photographic dry plates
Or films
Photograph albums .... 35%
Photographs, n. s. p. f. 25%
“ for societies . . . . . . Free
“ for U. S. . . . . . . . . . . Free
Plano wire . . . . . . . . . . . . 45%
Plckets . . . . . . . . . . . . . . . 10%
Pickles, n. S. p. f. . . . . . 40%
Pig Iron . . . . . . . . . . $4.00 ton
Pigment, artists' . . . . . . 30%
“ cont. lead. . . . . . . 2%e no
‘‘ con. zinc. (See
Zinc.) -
Pigment, n. S. p. f. . . . . . 30%
Pile fabrics, silk (min.
50%) . . . . . . . $1.50 lb & 15%
Pimento, unground . . . . Free
459
453
158
512
453
678
109
461
386
460
266
417
254
100
95
667
268
268
Article. Rate.
Pineapples, preserved in
own juice . . . . . . . . . . . .
Pins, hair, hat, bonnet,
safety, shawl, and
pins with solid heads.
Pipes and bowls, clay,
n. S. p. f., 50c gross &
Plpes, common tobacco,
val. not Over 40c gross,
35%
25%
Pineapples in bulk. . . $7.00 M
“ in packages. . . .7e cºa ft
95
274
297
297
15c gross
“ pitch . . . . . . . . . . . . .
Pitch, Burgundy
“ pipes
WOOd
Plano glasses,
Or polished,
edges unground
With edges ground or
beveled 10c doz prs & 45%
Planters
Plants, azaleas, crotons,
dracenas, orchids and
palms
Plants, brier rºº . . . . . .
‘‘ for U. S. . . . . . . . . . . Free
“ fruit, tropical,
cultivation
I’OSe
tea. & e º 'º
Plaster of paris, mſs. of,
Il. S. p. 1. . . . . . . . . . . . . 35%
Plaster rock, crude. , 50c ton
& “ ground $2.25 ton
* * * * * > Free
& ſº
ground
with
- 4 &
& © tº $ tº $ in tº $ tº
Plasters, Curative . . . . . 35%
Platina, bars, sheets and
Wire . . . . . . . . . . . . . . . . Free
Platinum, mfs., n. S. p. f. 45%
“ Vessels for chemi-
cal use . . . . . . . . . . . Free
Plum, Myrobolan stocks,
- 60c M & 15%
“ St. Julien Stocks,
- $1 M & 15%
Plums, dried . . . . . . . . . . 2C Ib
“ green or ripe. . . . 25C bu
Plumbago . . . . . . . . . . . . . Free
Plush, haltters' . . . . . . . . 10%
“ silk (min. 50%),
$1 Ib & 15%
Plows . . . . . . . . . . . . . . . . . 20%
Pornades . . . . . . . . . . . . . . 50%
Pomeios . . . . . . . . . . . . . . . 1C Ib
Pool balls . . . . . . . . . . . . . 50%
Poppy seed oil . . . . . . . 20c gal
‘‘ seeds . . . . . . . . . . . 15C bu
Porcelaln glassware . . . 60%
“ ware, decorated. .. 60%
4 &
Pork, fresh
Porter, in bulk. . . . . . . 29c gal
“ in bottles
SCHEDULE OF DUTIES.
113
Par.
196
62
44
644
63
62
(S44
644
(S3
64
G4
644
644
65
66
66
644
6
66
66
253
278
278
175
70
435
435
434
545
87
403
299
264
45
501
501
433
451
646
92
92
Article.
Posts, paving . . . . . . . © º e
Potash, bichromate of 3c Ib
“ carbonate of . . . . . . Free
“ caustic . . . . . . . . . . Free
“ caustic, refined...lc Ib
“ chromate of . . . . . .3c ſh
** crude, or black
Salts . . . . . . . .
“ hydrate of, crude... Free
“ hydrate of, re-
fined
“ hydriodate of....
“ lodate and iodide
of . . . . . . . . . . . . . . .25c Ib
“ muriate of . .
“ nitrate of, crude... Free
* nitrate of, refined,
C Ib
“ prussiate of . . . . . .8c Ib
“ red . . . . . . . . . . . . . . .8c Ib
“ sulphate of . . . . .
“ tartrate of
“ yellow
Potassium, cyanide of.12%%
Potatoes . . . . . . . . . . . . . 25c bu
Poultry), dressed . . . . . ..5c Ib
“ live . . . . . . . . . . . . . .3c Ib
Powder, bronze . . . . . . .12c Ib
“ toilet . . . . . . . . . . . .
Preclous stones,
tions, not decorated or
Set . . . . . . . 20%
Precious stones, cut.... 10%
& 6 & & Set . . . . 60%
uncut ...Free
Preparations con. alco-
hol. (See Medicinal
preparations.)
Printed matter, n. s.
p. f. . . . . . . . . . . . . . . . . . 25%
Prune juice and wine.
(See Cherry juice.)
Prunes and prunelles. .2c Ib
|Prussian blues . . . . . . . . 8C Ib
Publications by scien-
tific associations . . . . Free
Publications for grat-
uitous private circu-
lation . . . . . . . . . . . . . . . Free
Pulp, manufactures, n.
S. p. f. . . . . . . . . . . . . . . . 35%
“ masks . . . . . . . . . . . 35%
Pulu . . . . . . . . . . . . . . . . . . Free
Pum Ice stone, manufac-
tured . . . . . . . . . . . . . . . $6 ton
Pumice stone, unmanu-
factured . . . . . . . . . . . . . 5%
Pyrites, dross from . .40c ton
“ sulphur
Par.
17
17
17
22
189
425
252
262
647
488
540
648
363
264
196
346
347
331
39
156
292
700
153
460
Sec.
206
649
650
158
232
232
232
232
232
232
32
Article. Rate.
Pyroxylin articles,
- 65c Ib & 25%
“ compounds . . . . . .50c Flo
“ rolls or sheets. . .60c Ib
Q.
Quebracho extracts ...Ac Ib
Quicks liver . . . . . . . . . . .7c Ib
Additional duty on bot-
ties.
Qullts, down . . . . . . . . . . . 50%
Quince stocks... $1 M & 15%
Quinces, green or ripe. 25c bu
Quinia, Sulphate of . . . . . Free
Quinlne barks . . . . . . ...Free
Quoits . . . . . . . . . . . . . Free
R. -
Rags, n. S. p. f...... . . . Free
“ woolen ..........10c Ib.
Raisins . . . . . . . . . . . . . .2%C Ib
Rallroad ties .......... 20%
Ramie articles. (See
Flax.)
“ manufactures, m. s.
P. f. . . . . . . . . . . . . . . 45%
“ yarn. (See Flax
yarn.)
Rape seed oil . . . . . . . . 10c gal
Rasps. (See Files.)
Ratafia . . . . . . . . . . . . $2.25 gal
Rattans, for canes or
umbrella, sticks . . . . . . Free
Razors, and blades of,
val. less than $1.50 .
doz . . . . . . . .50c doz & 15%
Val. $1.50, less than $3
ë & e e º 'º º e º e $1 doz & 15%
Val. over $3 doz,
$1.75 doz & 20%
Reapers . . . . . . . . . . . . 20%
3. Reciproclity. '
Red lead . . . . . . . . . . . . . 2%c no
Reeds for chairs. . . . . . . 10%
Regalla for societies...Free
Rennets . . . . . .
Revolvers. . . . . . 75c ea & 25%
Rice, broken, which will
pass through No. 12
Sieve . . . . . . . . . . . . . . . 34c Ib
Rice, cleaned . . . . . . . . . .2c Ib
“ flour . . . . . . . . . . . . . 34c Ib
“ meal . . . . . . . . . . . . 14c Ib
“ paddy . . . . . . . . . . . $4C Ib
“ uncleaned . . . . . . 134c Ib
Ricinoleic acid. (See
121
674
Pyroligneous acid, not
ex S. G. 147-1000....94 c Ib
Ex S. G. 1 47-1000. . . .2c Ib
157
167
115
475
Alizarin assistant.)
Rifles
Rochelle Salts
Rock crystal manufac-
tures . . . . . 50%
Rocoa and extracts of... Free
11
4 IF. B. VANDEGRIFT & CO.
Par.
611
351
656
283
544
576
598
611
573
252
252
671
475.
579
450
379
233
233
211
447
651
651
651
287
652
653
5
654
73
1.
261
80
284
284
644
65
472
3
615
67.1
183
118
117
71
3
Rope, hide
Article. Rate.
Roots althea crude. . . . . Free
“ bulbous for flow- 2
erS -
Roots,
p. f. . . . . . . . . . . . . . . . . . Free
Roots, dandelion as cof-
fee substitute. . . . . . 2%C Ib
Roots, dandelion raw...Free
“’ hop for cultiva-
tion
Roots, licorice unground,
- Free
“ marshmallow crude,
Free
• e e º e e s ∈ e s e e e º e º 'º -
bulbous, n. S.
Rose, brier stock
“ plants
Roucou and extracts of Free
Rubber, India crude,
milk of and old scrap. Free
Rubber, vulcanized mſs.
of, n. S. p. f. . . . . . . . . . .35%
Rugs, Aubusson, AX-
minster, Berlin and
Oriental.. 10c sq ft & 40%
Rye . . . . . . . . . . . . . . . . . . 10c bu
“ flour . . . . . . . . . . . . Ac Ib
- S.
Saccharine... $1.50 lb & 10%
Saddles and saddlery. . 45%
Safflower and extract Of,
Free
Saffron and extract of...Free
“ cake . . . . . . . . . . . . . Free
Sage . . . . . . . . . . . . . . . . . .1c Ib
Sago, crude . . . . . . . . . . . Free
Salacin . . . . . . . . . . . . . . . Free
Sal Ammon lac. . . . . . . .% c Ib
Salep or Salop . . . . . . . . . . Free
Saleratus . . . . . . . . . . . . . $4c Ib
Salicylic acid . . . . . . . . . 10c Ib
Salmon salted or fresh 1C Ib
Salt cake . . . . . . . . . . $1.25 ton
“ in bulk . . . . . . 8C I60 lbs
“ in pkges. . . . . 12C 100 Ibs
Saltpeter, crude . . . . . . . Free
“ refined . . . . . . . . . .3%C Ib
Salts, aniline . . . . . . . . . . Free
“ Chemical, n. S. p.
f. . . . . . . . * Gº tº gº tº e º 'º ſº tº 25%
“ mineral . . . . . . . . . . . Free
Sand . . . . . . . . . . . . . . . . . . Free
“ monazite . . . . . . . . . 6C Ib
Sandstone, dressed .... 50%
“ undressed. . . . . 12c cu ft
Santon in and salts of,
contg 80% or over of
Santonin
Santon In and Salts of,
contg less than 80% of
Santonín . . . . 25%
Par.
258
46
241
241
655
496
135
168
168
168
168
168
168
168
638
153
169
42
617
656
640
656
254
656
656
640
656
656
656
254
254
250
254
254
656
656
266
415
370
153
657
221
Article. Rate
Sardines. (See Fish.)
Satin White . . . . . . . . . . .1%C Ib
Sauce, fish . . . . . . . . . . . . . 40%
Sauces, n. S. p. f. . . . . . . 40%
Sausage, bologna. . . . . . . Free
“ casings . . . . . . . . . . Free
Saw plates, steel. , (See
Steel ingots.)
Saws, circular . . . . . . . . . 25%
“ Crosscut . . . . . . . . . . 6C ft
“ hand and back..... 30%
“ mill . . . . . . . . . . . . . 10c ft
“ n. S. p. f. . . . . . . . . 30%
“ pit and drag.. . . . . . 8C ft
“ steel band,
10c Ib & 20%
Scientific apparatus for
society or school. . . . . . Free
Scissors and blades for,
val. not Over 50c doz.
15c doz & 15%
Val: over 50c., not over
$1.75 doz. .50c doz & 15%
Vall. Over $1.75 doz.
75c doz & 25%
Screws. (See Irohsscrews.)
Seal oil . . . . . . . . . . . . . . 8c gal
Seaweeds, Crude . . . . . . . Free
Seeds, anise . . . . . . . . . . . Free
Seed cane for United
States . . . . . . . . . . . . . . . Free
Seed, caraway, carda-
mon, cauliflower, Cori-
ander, cotton and
Cummin . . . . . . . . . . . . . Free
Seed, Castor . . . . . . . . 25c bus
“ fennel and fenu-
greek . . . . . . . . . . . . . . . Free
Seed flower . . . . . . . . . . . . Free
Seed for U. S. . . . . . . ...Free
“ grass . . . . . . . . . . . . Free
“ hemp and hoar-
hound
Seed, mangel-Wurzel and
mustard . . . . . . . . . . . . . Free
Seed, no allowance for
dirt in.
Seed, n. S. p. f. . . . . . . . . , 30%
“ pease, bu. 60 lbs.,
40c bu
“ oil . . . . . . . e - © e º ºs is 25c bu
“ poppy . . . . . . . . . .15c bu
“ rape . . . . . . . . . ....Free
“ St. John's bread,
Sugar beet . . . . . . . . . . . ©º
Shaddocks . . . . . . . . . . . . .1c Ib
Shale . . . . . . . . . . . . . . . .67c ton
Shawls, woolen,
44c Ib & 60%
Shears. (See Scissors.)
Sheep dip . . . . . . . . . . . . . . Free
“ 1 yr. old or over, $1.50
Less than 1 year old.... 75c
SCHEDULE OF DUTIES.
115
Par.
438
414
450
659
450
635
203
699
346.
362
414
438
438
658
182
659
252
154
49
79
38.9
498
884
661
383
391
390
390
Article. ,
. Sheep skins, dressed. . . .20%
Shell buttons,
1%c line gross & 15%
“ mfs. of, n. s. p. f... 35%
Shellfish . . . . . . Free
Shells, cut or Ornamen-
ted . . . . . . . . . . . . . . . . . 35%
Shells, not cut. . . . . . . . . Free
Shingles . . . . . . . . . . . . . 30C M
Ship timber- and plank-
ing . . . . . . . . . . . . . . . . . Free
Shirting cloth, flax. . . . . 35%
Shoddy . . . . . . . . . . . . . . . 25C Ib
Shoe buttons, val. not
Over 3C gross. . . . . 1c gross
‘‘ buttons, vall. Over
3c gross . . . . . . . . . . ... 50%
Shoe laces, leather 50c
gross pairs and 20%
25
Shoes leather
Shot gun barrels, in
single tubes, forged. . Free
Shot, lead . . . . . . . . . . . 2%c Ib
Shrimps . . . . . . . . . . . . . . . Free
shrubºn. S. p. f. . . . . . . 25%
Side arms . . . . . . . . . . . . . 35%
Sienna earths. (See
Ocher, Crude.)
SIllcate alkaline. . . . . . Ac fo
Silk bandings, braces,
cords, garters, Suspen-
ders, etc. . . . . . . . . . . . 0%
Silk bolting cloth for
milling . . . . . . . . . . . ... Free
Silk, carded or combed,
40C Ib
“ cocoons . . . . . . . . . . . Free
“ handkerchiefs pay
rate on goods in the
piece of same descrip-
tion (min. 50%.) -
If hemStitched or emb.
in any manner, add
10% (min. 60%.)
Silk, jacquard goods. . . . 50%
“ knit goods . . . . . . . . 60%
“ laces, e d g in g S,
nets, veilings, wear-
ing apparel . . . . . . . . . . 60%
Silk mfs., n. S. p. f. . . . . 50%
Rate.
Par.
386
391
387
“ piece goods, n. S. p.
f., weighing not less
than 1 1-3 oz. sq. Yd.,
not more than 8 Oz.
sq. yd., con. not Over
20% in weight of silk.
If in the gum . . . . . . . . . .50c Ib
If dyed in the piece. . . .60c Ib
Con. Over 20%, not over
30%, in weight of silk.
If in the gum. . . . . . . . .65C Ib
If dyed in the piece. . .80c Ib
Con. Over 30%, not over
660
385
Article. Rate.
45%, in weight of silk.
If in the gum . . . . . . . . 90C ib
If dyed in the piece. . $1.10 lb
Dyed in the thread or
yarn, COn. In Ot Over
30% in weight of silk.
If black (except sel-
Vedges) 5
If other than black. . . .90c Ib
Con. over 30%, not over
45% in weight of silk.
If black (except sel-
Vedges) . . . . . . . . . . . $1.10 Ib
If other than black. . $1.30 Ib
Con. over 45% in weight ,
of silk, or composed
wholly of silk, if dyed
in the thread or yarn
and weighted in the
dyeing so as to exceed
the original weight of
raw silk.
If black (except sel-
Vedges) . . . . . . . . . . . $1.50 Ib
If other than black. . $2.25 lb
Dyed in the thread or
yarn, and weight is
not increased by dye-
ing beyond original
weight of the raw
Silk . . . . . . . . . . . . . . . $3.00 lb
If in the gum . . . . . . . . $2.50. Ib
If boiled off, or dyed in
the piece or printed,
$3.00 lb
Weighing less than 1
1-3 oz. and more than
1–3 oz. sq. yd., if in
the gum, or dyed in
the thread or yarn,
- $2.50 lb
If boiled off. . . . . . . . . . $3.00 lb
If dyed or printed in
the piece
Weighing not more than
1–3 oz. sq. yd . . . . . ... $4.50 lb
None of the above to
pay less than 50%.
Silk plush (min. 50%),
$1.00 lb and 15%
“ raw . . . . . . . . . . . . . . Free
“ spun in skeins, on
Cops, Warps, beams,
val. not over $1.00 lb.
20C Ib &
Val. Over $1.00, not over
$1.50 lb . . . . . . 30c Ib &
Val. Over $1.50, not over
$2.00 Ib . . . . . . 40c Ib &
Val. Over $2.00, not over
2.50 Ib. . . . . . . 50c Ib &
Val. Over $2.50 Ib.,
60C Ib &
5 ib
gº tº dº º ſº tº e º sº e
15%
15%
15%
15%
15X
116
F. B. VANDEGRIFT & Co.
Par. Article. Rate.
None of the above shall
pay less than 35%.
385 Silk thrown, not more
advanced than sin-
gles, sewing twist,
floss or yarns ....... 80%
886 Slik velvet and velvet
ribbons (min. 50%)
$1.50 lb & 15%
661 Silk waste . . . . . . . . . . . . . Free
662 Silkworms' eggs ..... . . Free
511 Silver bullion . . . . . . . ... Free
530 “ coins . . . . . . . . . . . . Free
174 “ German, crude ... 25%
178 “ leaf, per plºge of
500 leaves . . . . . . . . . . 75c
193 Sliver mfs., n. s. p. f... 45%
612 “ medals, as troph-
ies . . . . . . . . . . . . . . . . . . Free
210 Slrup, maple . . . . . . . . . . 4c Ib
663 Skeletons . . . . . . . . . . . . Free
207 Skewers of wood . . . . . 40c M
438 Skins, calf, kangaroo,
sheep, goat, etc., tan-
ned and dressed. . . . . . 20%
438 Skins for morocco ..... 10%
562
367 “
fur, not dressed... Free
gold-beaters” . . . . . Free
425 “ of birds, crude.... 15%
556 ‘‘ of fish . . . . . . . . . . . . Free
664 “ raw, n. S. p. f..... Free
121 Slag, basic . . . . . . . . $1.00 ton
1:20 Slate chimney pieces,
and mantels . . . . . . . . . 20
120 Slate manufactures, n.
S. p. f. . . . . . . . . . . . . . . . 20%
456 Slate pencils, n. s. p. f.,
3C 100
456 “ pencils, wood cov-
ered . . . . . . . . . . . ... 35%
120 Slates . . . . . . . . . . . . . . . . 20%
144 Sledges, iron or steel, 1% c no
68 Smalts, n. S. p. f. . . . . . . 30%
459 Smokers’ articles . . . . . . 60%
216 Snuff. . . . . . . . . . . . . . . . . 55c Ib
72 Soap, castile. . . . . . . ..1%c Ib
72 “ medicinal and toi-
let . . . . . . . . . . . . ... 15c Ib
72 “ n. S. p. f. . . . . . . . . . 20%
78 Soda, arseniate of....134c no
78 “ ash . . . . . . . . . . . . . . C Ib
73 “ bicarbonate of...94 c no
74 “ bichromate of . . . .2c no
11 ‘‘ borates of. (See
Lime, borates of.)
76 “ caustic, hydrate,
$4c Ib
75 “ chlorate of . . . . . . .2c Ib
74 “ chromate of . . . . . . 2C Ib
75 “ crystal carbonate
of . . . . . . . . . . . . . 3-10c [b
75 “ crystals, COI) CeIl- -
trated . . . . . . . . . 3-10C Ib
76 “ hyposulphite and
Par.
665
76
77
79
80
6.
300
115
666
108
667
287
667
287
667
287
667
287
667
287.
287
667
287
667
287
287
Article. Rate.
sulphide of......}c Ib
Soda, nitrate of . . . . . . Free
“ nitrite of . . . . . . .2%c no
“ sal, and crystals,
2-10c Ib
“ silicate of . . . . . . .
Ib
‘‘ Sulphate of... $1.25 ton
“ tartrate of
“ water. (See Ginger
ale.)
Spar, manufactures ...
Specimens of natural
history, botany and
mineralogy for scien-
tific public collec-
tions . . . . . . .
Spectacles, and frames
Or parts of, finished or
unfinished, val. not
over 40c doz 200 doz & 15%
Val. over 40c, not over
$1.50 doz. . . .45c doz & 20%
Val. over $1.50 doz. .. 50%
50%
Splces, cassia, cassia
Vera and buds,
unground Tº......Free
ground . . . . . . . . . . . 3C Ib
“ C in n a m on and
chips of, unground Free
ground . . . . . . . . . . . 3C Ib
“ cloves and stems,
unground . . . . . . . . Free
ground . . . . . . . . . . . 3C Ib
“ ginger root, un-
ground . . . . . . . . . . Free
ground . . . . . . . . . . . 3C Ib
“ mace, unground...Free
ground . . . . . . . . . . .3c Ib
“ mustard, prep... 10c Ib
“ nutmegs . . . . . . . . . . Free
“ n. S. p. f. . . . . . . . . 3C Ib
“ pepper, black or
white, unground...Free .
ground . . . . . . . . . . .3c Ib
“ red pepper ..... .2%C Ib
“ sage . . . . . . . . . . . . .ic Ib
Spikes, cut. . . . . . . . . . 6-10C Ib
‘‘ of wrought iron or
Steel . . . . . . . . . . . . . . . . .1c Ib
Sponges . . . . . . . . . . . . . . 20%
“ manufactures of... 40%
Sprats. (See Fish.) *
Sprigs. (See Iron tacks.)
Spunk . . . . . . . .
Spurs for potters' use... Free
Stanps, foreign, post-
age Or TeVenlle. . . . . . . Free
Starch . . . . . & Cº e s tº º . . .1%C Ib
“ burnt . . . . . . . . . . . . 2C Ib
Statuary for society or .
church . . . . . . . . . . . . . . Free
Statuary, wrought by
Sculptor . . . . . . . . . . . . 20%
Sec. 3. Statuary, wrought by a sculptor,
from a reciprocal country......I.5%
SCHEDULE OF DUTIES.
117
Par.
135 Steel,
128
146
135
135
193
135
166
135
135
135
hammer
Article. Rate.
alloys used as.
(See Steel ingots.)
Bands for making
Saws, untermpered,
3c Ib & 20%
tempered. .6c Ib & 20%
card clothing of
tempered wire,
45c sq ft
all other . . . . . . 20c sq ft
castings, forgings
and manufactures.
(See Iron schedule.)
molds.
(See Steel ingots.)
ingots, b 1 o O m S,
slabs, die blocks,
billets, etc., val. 1C
Val. Over 1C, not
Over 1 4-10C Ib 4-10c Ib
Val. Over 1 4-10c,
not over 1 8-10c Ib,
- 6-10c Ib
Y'al. over 1 8-10c,
not over 2 2-10c Ib,
7-10c Ib
Val. Over 2 2-10c,
not over 3c Ib. .9-10c Ib
Val. Over 3c, not
Over 4c Ib . . . . 1 2-10c Ib
Val. Over 4c, not
Over 7c Ib . . . . 1 3-10c Ib
Val. Over 7c, not
over 10c Ib . . . . . . . .2c Ib
Val. Over 10c, not
Over 13c Ib . . . 2 4-10C Ib
Val. over 13c, not
Over 16c Ib . . . 2 8-10C Ib
Val. Over 16c Ib.
4 7-10c Ib
mfs., n. S. p. f. . . . 45%
mill shafting. (See
Steel ingots.)
plates, engraved
for printing
Saw plates.
Steel ingots.)
shapes of dry sand,
loam or iron mold-
ed castings. (See
Steel ingots.)
sheets and plates,
n. S. p. f. (See
Steel ingots.)
137 Steels, corset and dress 45%
669 Stilts for potters' use. . . Free
114 Stone, mosaic cubes, not
exceeding 2 cu in,
if loose. ...1c Ib & 20%
Attached to paper
or other material,
20c superficial ft & 35%
Par.
95
95
118
117
116
671
671
540
557
118
117
118
117
118
117
67.1
118
117
671
601
603
435
435
434
545
574
672
255
409
409
449
673
673
673
83
414
672
212
656
210
209
210 .
210
Article. Rate.
Stone ware, decorated... 60%
“ ware, plain white. 55%
“ building and mon-
umental, dressed. .. 50%
building and mon-
umental, undressed,
12c cu ft
“ burr, bound into
millstones . . . . . . . . 15%
“ burr, rough . . . . . . Free
“ cliff, crude . . . . . . . Free
“ curling . . . . . . . . . . . Free
“ flint, unground . . . Free
“ free, dressed . . . . . 50%
‘‘ free, undressed,
12c cu ft
“ granite, dressed .. 50%
“ granite, undressed,
12c cu ft
“ lime, dressed . . . . . . 50%
‘‘ lime, undressed,
12c cu ft
“ rotten . . . . . . . . . . . . Free
“ sand, dressed . . . . 50%
“ sand, undressed,
12c cu ft
“ Tripoli . . . . . . . . . . Free
Stones, lithographic, not
- engraved . . . . . . . . . Free
“ lode . . . . . . . . . . . . . Free
“ precious, imita-
tions, not deco-
rated or set . . . . . . 20%
“ precious, cut . . . . . 10%
“ precious, set . . . . . . 60%
“ precious, uncut ...Free
“ Whet . . . . . . . . . . . . . Free
Storax . . . . . . . . . e e º e º e & Free
Straw . . . . . . . . . . . . . $1.50 ton
‘‘ braids, for , mak-
ing hats, not
bleached . . . . . . . ... 15%
bleached . . . . . . . . ... 20%
** hats and bonnets.
(See Hats.)
“ mfs. of, n. s. p. f... 30%
Strontia, oxide of, and
mineral carbonate of. Free
Strontlan, protoxide of, Free
Strontianite Fºr
Strychnia and strych-
nine . . . . . . . . . . . . . . . .30c oz
Studs . . . . . . . . . . . . . . ... 50%
Styrax . . . . . . . . . . . . . . . . Free
Sugar candy. (See Con-
fectionery.)
“ cane for seed . . . . . Free
“ cane, unmfä . . . . . 20%
“ drainings, as su-
gar according to
test.
118
F. B. VANDEGRIFT & Co.
Par. - Article.
209 Sugar, not above No. 16
Dutch Standard,
tank bottoms, sir-
up of cane juice,
melada, and con-
centrated melada,
testing not above
75 degrees. . .95-100C Ib
For every addi-
tional degree add
35-1000c. .
above No. 16,
Dutch Standard,
1 95-100C Ib
209 “
239 “
209 “
212 “
refined. . . . . 1 95-100C Ib
.refined, when col-
Ored (Same as con-
fectionery).
674 Sulphur, crude, in bulk. Free
84 “ flowers of, and re-
fined . . . . . . . . . . . . $8 ton
674 “ lac and precipi-
tated . . . . . . . . . . . . Free
674 “ . n. S. p. f........ . . Free
674 “ ore . . . . . . . . . . . . . . . Free
1 Sulphuric acid, n. s. p.
f. . . . . . . . . . . . . . . .%C Ib
22 Sumac, extract. . . . . . . . §§c no
85 “ ground ........ 3-10C Ib
263 Sweetmeats....1c to & 35%
219 Swine . . . . . . . . . . . . . . . . . $1.50
154 Swords, and blades for. 35%
T.
164 Tacks. (See Iron tacks.)
Sec. 6. Talc, powdered .... 20%
614 “ unground . . . . . . . . Free
279 Tallow . . . . . . . . . . . . . ...}4c Ib
676 Tamarinds . . . . . . . . . . . . Free
1 Tannic acid. . . . . . . . . . . 50C Ib
1 Tann in . . . . . . . . . . . . . . . 50C Ib
482 Tanning, crude articles
for . . . . . . . . . . . . . . . . . . Free
677 Tapioca . . . . . . . . . . . . . . . Free
678 Tar . . . . . .* * * * * * * * * * * * * * Free
6 Tartars contg. not over
90% B. of P. . . . . . . 4C Ib
“ contg. over 90% B.
of P. . . . . . . . . . . ... 5c Ib
6 Tartar, cream of . . . . . . 6C Ib
6 “ patent . . . . . . . . . . . .6C Ib
1 Tartaric acid . . . . . . . . . .7c Ib
679 Tea, after January 1st,
1903 . . . . . . . . . . . . . . ... Free
256 Teazles . . . . . . . . . . . . . ... 30%
Sec. 6. Teeth, artificial..... 20%
680 Teeth, natural . . . . . . ... Free
196 Telegraph, telephone
and trolley poles,
Wood . . . . . . . . . . . . . . . 20%
111 Telescopes . . . . . . . . . . . . 45%
682 Terra japonica. . . . . . . . . Free
Rate.
114 “
Par. Article. Rate.
681 Terra alba, not from
By 9Sll IIl . . . . . . . . . . ... Free
566 Textile grasses . . . . . . . . Free
645 Theatrical properties,
under bond . . . . . . . . . . ©e
183 Thorlte . . . . . . . . • - - - - - - - 6C Ib
330 Threads, flax, hemp or
ramie, from yarn
not finer than No.
5 . . . . . . . . . . . . . . . . 13c Ib
From yarn finer
than No. 5, for
- each No. over 5.34c Ib
179 “ tinsel wire. 5c Ib & 35%
88 Tlles, glazed, encaustic,
ceramic, mosaic,
vitrified, semi-vit-
rified, flint, spar,
embossed, eIla. In -
eled, Ornamental,
hand painted, gold :
decorated, and all
Other earthenware
tiles, val. not over
40c sq ft. . . . . Ysge sq ft
Val. over 40c sq ft,
10c sq ft & 25%
plain, unglazed, one
Color, ex. 2 sq in.
4c sq ft
paving of marble
Or Onyx, COn. In Ot
less than 4 Super-
ficial inches, not
Over 13% in., not
12c superficial ft
over 1 in. thick,
1% in. thick,
15c superficial fu
Over 1 in., not over
Over 2 in. thick,
18C superficial ft
Rubbed, in whole
Or in part, in addi-
tion. . . .3c superficial ft
194 Timber for spars and
Wharves. . . . . . . 1c cu ft
§s “
194 “ hewn or sided, not
less than 8 in. sq,
- ic cu ft
699 “ round . . . . . . . . . . . . Free
683 TIn bars and pigs. . . . . . Free
683 “ ore and black ox-
- ide of . . . . . . . . . . . . Free
134 TIn plate, terneplate and
taggers tin . . . . . . . . . 1%c Ib
179 Tinsel lace and embroi-
dery ... . . . . . . . . . . . 0%
179 “ Wire . . . . . . . . . . . . . 5c Ib .
213 Tobacco, filler, n. S. p.
f., unstemmed . . . . . . 35c Ib
Stemmed . . . . . . . . . . . 50c Ib
213 Tobacco, filler, mixed
\
SCHEDULE OF DUTIES.
Par
215
459
684
213
70
524
685
685
645
144
207
418
95
326
252
640
408
152
152
98
686
688
687
689
330
491
190
190
690
52
691
49
170
462
700
462
692
Article.
Rate.
with over 15% of
wrapper, dutiable as
wrapper tobacco.
Tobacco n. S. p. f. . . . . . 55c Ib
“ pouches . . . . . . 60%
“ stems . . . . . . . Free
“ wrapper, Stern-
med . . . . . . . . . . . . . . $2.50 lb
unstemmed . . . . . . . $1.85 lb
Toilet articles . . . . . . . . . 50%
“ preparations, al-
coholic. . . . . . . 60c Ib & 45%
Toluoſ . . . . . . . . . . . . . . . . Free
Tonka beans . . . . . . . . . . . Free
Tonqua or tonquin. . . . . Free
Tools of trade, accom-
panying owner . . . . . . . Free
Tools, track, iron or
Steel . . . . . . . . . . . . . . . 11%.c Ib
Toothpicks of wood or
quill . . . . . . . . . . 2c M & 15%
Toys n. S. p. f. . . . . . . . . 35%
“ China, not dec. . . . . 55%
de fºed tº gº º & e º 'º º º 'º º 0%
Tow’of flax. . . . . . . . . . $20 ton
Tree stocks . . . . . . . . . ... 25%
Trees for United States Free
Trimmings, beaded . . . . 60%
Tubes, boiler, not thin-
ner than No. 16 wire
Baill&e . . . . . . . . . . . . . . . 2C Ib
Tubes, iron or steel n.
S. p. f. . . . . . . . . . . . . . . 35%
Tubes, filter . . . . . . . . . . . 45%
Turmerlo . . . . . . . . . . . . . Free
Turpentine, spirits of... Free
* - Venice
Turtles . . . . . . .
Twine, flax hemp or ra-
mie. (See Threads,
flax.)
Twine, istle fiber, sisal
gra SS Or Sunn, not ex.
600 feet to Ib . . . . . . . . . Free
Type metal, on the lead,
1%c Ib
“ new . . . . . . . . . . . . . 25%
Type, old . . . . . . . . . . . . . . Free
U.
Ultramarine blue ....3% c no
Uranium, oxide and salts
of . . . . . . . . • - - - - - - - - - - Free
Unber, earths. (See
Ocher.)
Unbrella ribs and
Stretchers . . . . . . . . 50%
“ sticks, finished ... 40%
“ Sticks, rough . . . . . Free
Umbrellas . . . . . . . . . . . . 50%
V.
Vaccine virus . . . . . . . . . Free
Par.
296
99
288
252
696
270
163
52
537
463
661
362
361
362
191
191
191
137
564
490
448
Veneers of Wood.
Article. . . .
Valonia . . . . . • e • e
Vaniil in
Varnish . . . . . . tº e º e º 'º . . . . .35%
‘‘ spirits, $1.32 gal & 35%.
Veal, fresh . . . . . . . . . . . .2c Ib
Vegetable wax . . . . . . . . . Free
Vegetables, natural, n.
S. p. f. . . . . . . . . . . . . . . 25%
Vegetables, prepared, n.
S. p. f. . . . . . . . e s e e s e e 40%
Vellum . . . . . . . . . . . . . . . . Free
Velvet, silk and ribbons,
(min. 50%) . . $1.50 lb & 15%
tº e º gº tº gº 20%
Verdigris
Verm Icelli
Vermilion
quicksilver -
Not con. quicksilver, 5c Ib
Vermuth. (See Wine,
still.)
Vlals, glass. (See Bot-
tles.) - . .
Vinegar . . . . . . . . . . . . 7%C gal
Vines, n. S. p. f. . . . . . . 25%
Vitrlol, oil of, n. S. p. f.,
34C Ph
w.
Wafers, not edible
Walnuts. (See Nuts.)
Washers of wrought
iron or steel
Wash blue . . . . . . . . ..3% c Ib
VVaste Cotton
“ n. s. p. f.
** Silk
“ thread
“ top, slubbing, rov-
ing, ring and garnet-
ted . . . . . . . . . . . . . . . . . 30C Ib
Waste yarn
Watch cases and parts. 40%
“ jewels 0%
movementS,
ing not over 7 jewels,
35c ea & 25%
Having over 7, not
Over 11 jewels,
50c ea & 25%
Having over 11, not
Over 15 jewels,
75c ea & 25%
Having over 15, not
Over 17 jewels,
$1.25 ea & 25%
Having over 17 jewels,
- $3 ea & 25%
Watch wire . . . . . . . . . . . 45%
Watches, enamel for . . .
Wax, bees’
“ manufactures of... 25%
& 4
12()
F. B. VANDEGRIFT & CO.
Par. Article. Rate.
695 Wax, mineral or vege-
- table . . . . . . . . . . . . Free
408 Wearing apparel, bead-
ed . . . . . . . . . . . . . . . 60%
339 “ apparel, lace . . . . . 60%
697 “ apparel of per-
sons arriving in U. S.
($100 limit) . . . . . . . . . Free
370 Wearing apparel, wool-
€Il . . . . . . . . . . . 44c Ib & 60%
144 Wedges, iron or steel 11%.c Ib
449 Weeds, mfs. of, n. S.
p. f. . . . . . . . . . . . . . . . . . 30%
698 Whalebone, crude . . . . . Free
449 “ mfs. of, n. s. p. f... 30%
42 Whale oil . . . . . . . . . . . . . 8c gal
234 Wheat . . . . . . . . . . . . . . . 25c bu
235 “ flour . . . . . . . . . . . . . 25%
419 Wheels, emery . . . . . . . . 25%
171 “ for railway pur-
p0SeS . . . . . . . . . . . . . . 114, c ib
171 Wheels, ingots, for rail-
way purposes...... 134c Ib
574 Whetstones . . . . . . . . . . . . Free
517 Whipgut, crude ........Free
448 “ gut, manufactures, 25%
700 “ Sticks, rough . . . . . Free
55 Wnlte lead ... . . . . . . . . 27Ac Ib
55 “ paint con. lead, #. Ib
57 “ paint con. zinc,
(See Zinc.)
56 Whiting dry . . . . . . . . . .14c Ib
206
206
IQ1
107
18
295
296
296
Ground in oil or put-
1c Ib
“ manufactures . . . . 40%
Window glass, common,
not ex. 10x15, in sq.1%e no
Ex. 10x15, not ex.
16x24 in. square. ...1% c Ib
Ex. 16x24, not ex.
24x30 in. square... .2% c no
Ex. 24x30, not ex.
24x36 in. square... .2%e ro
Ex. 24x36, not ex.
30x40 in. square....3% c no
Ex. 30x40, not ex.
40x60 in. square....3% c no
Ex. 40x60 in. square,
4% c no
Window glass, common,
When bent, ground,
graved, painted or
decorated, shall pay
in addition . . . . . . . tº º ſº
Wine, coloring for . . . . .
** sparkling. (See
Champagne.)
Wine, still in bottles,
per case of 12 qts. or
24 pints . . . . . . . . . . . . . $1.60
Wine, still, in casks,
B%
50%
. . . . 20%
Par.
296
137
137
137
137
182
641
136
137
179
489
485
204
198
700
199
194
699
200
194
197
rticle. Rate.
con. under 14% alco-
hol . . . . . . . . . . . . . . .40c gal
Con. over 14% alcohol,
50c gal
OVer
tº S
Wine, still, con.
24% alcohol, pay
Spirits.
Wire, articles made
from, shall pay rate
of duty imposed On
wire used in manu-
facture, and in addi-
tion . . . . . . . . . . . . . . . .1%C Ib
Wire, coated with any
metal shall pay rate
of duty in posed on
wire used in manu-
facture, and in addi-
tion . . . . . . . . . . . . . . 2-10C Ib
Wire iron or steel,
round, not less than
No. 13 wire gauge... 134c Ib
Less than No. 13, not
less than No. 16 ºre
gallge - %
Less than No. 16 wire
gallge . . . . . . e º 'º e º dº . . .2c Ib
Valued Over 4c Ib. . . . .
Wire, iron or steel, n.
“ rods, val. 4c Ib or
less . . . . . . . . . . . . . . . 4-10C Ib
Valued over 4c no...94c no
Rods smaller than No.
6 wire gauge, duti-
able as wire.
Wire rope and strand
shall pay rate of duty
imposed on wire used
in manufacture, and
in addition. . . . . . . . . . . 1C Ib
Wire, tinsel
Witherite
Wood ashes and lye of...Free
“ barrels and casks
(empty), n. S. p. f. ... 30%
Wood, cabinet sawed... 15%
cabinet rough . . . . Free
‘‘ clapboards . . . . . $1.50 M
“ for spars and
wharves . . . . . . . 1c cu ft
“ handle and shin-
gle bolts . . . . . . . . . . Free
“ heading and stave
bolts, rough . . . . . . 20%
“ hewn or sided, 1C cu ft
“ kindling, in bund-
les, not over 34 cu ft.
• ‘ 3-10c bun.
Bundles over 44 cu ft,
for each additional 34
{
349
357
354
354
SCHEDULE OF DUTIES.
Par. Article. Rate.
cu ft . . . . . . . . . . . . . . . . 3-10c
699 Wood, fire, n. s. p. f...Free
200 “ last, wagon, oar
and heading blocks,
rough . . . . . . . . . . . . . . . 20%
201 Wood laths . . . . . . . . . . . 25c M
208 “ manufactures, Il.
S. p. f. . . . . . . . . . . . 35%
196 “ paving posts ..... 20%
202 “ pickets, palings
and Staves . . . . . . . 10%
200 “ posts, rough, saw-
ed or bored . . . . . . . 20%
393 “ p u l p, chemical
bleached . . . . . . . . 4.
393 “ p u l p, chemical
unbleached . . . . .1-6c Ib
433 “ p u 1 p, manufac-
tures, n. S. p. f., .. 35%
393 “ pulp, mechanical-
- ly ground . . . . . 1-12c Ib
196 “ railroad ties . . . . . . 20%
203 “ shingles . . . . . . . . . 30c M
207 & Skewers . . . . . . . . . 40c M
204 “ sugar box shooks... 30%
196 ° telephone, trolley,
electric light and tel-
egraph poles . . . . . . . . . 20%
207 Wood toothpicks,
2c M & 15%
198 “’ unmanufactured,
n. S. p. f. . . . . . . . . . 20%
198 “ veneers . . . . . . . . . . 20%
200 “ wheel hubs, rough,
Sawed or bored. . . . . . . 20%
348 Wool, hair of the camel,
goat, alpaca and like
animals shall be divi-
ded into three classes:
Class one.—Merino, mes-
tiza, metz or metis,
Or others of merino
blood, Down clothing
Wools, Bagdad, China.
lamb, Castel Branco,
Adrianople skin, but-
chers', and such as
have been imported
from Buenos Ayres,
New Zealand, Austra-
lia, Cape of Good
Hope, Russia, Great
Britain, C a n a da,
Egypt and Morocco,
and all not described
Wool, class one, washed,
in classes 2 and 3...11c Ib
22c Ib
class one, scour-
ed . . . . . . . . . . . . . . . . . . 33C lºb
class two—Lei-
Cester, Cotswold, Lin-
colnshire, Down com -
Par.
121
Article. Rate.
bing, Canada, long
wool and other of
English blood, and
hair of the camel,
Angora goat, alpaca
and like animals. . . .12c Ib
354 Wool, class two, scour-
353
358
359
354
e e e a e º e º e º e º e º e º º 36c Ib
skoi, South American,
Cordova, Valparaíso,
native Smyrna, Rus-
sian, camel's hair and
wools of like character
imported from Tur-
key, Greece and Syria.
When improved by a
mixture of English
blood, shall be classed
as 1 or 2. t
Val. 12c Ib or less. . . .4c Ib
Val. over 12C Ib . . . . . . 7C ºb
In condition for card-
ing into yarn or Con.
not over 8% dirt, three
times the duty other-
wise.
350
357
Wool,
364 VVool
advanced beyond
washing and scouring.
(See Wool cloths.)
$37 Wool blankets, val. not
over 40c Ib. .22c Ib & 30%
Val. Over 40c, not Over
50C Ib . . . . . . . . 33c Ib & 35%
Val. Over 50c Ib,
33c Ib & 40%
Over 3 yds. long, pay
duty as cloths.
370 wools, clothing, shawls,
366 Wool
and wearing apparel,
44c Ib & 60%
cloths, knit fab-
rics and manufactureS
of, n. s. p. f. Val.
not over 40c Ib,
33c to & 50%
Val. Over 40c, not Over
70c Ib . . . . . . . . 44c Ib & 50%
Val. Over 70c Ib,
44c Ib & 55%
368 Wool dress goods with
cotton warp, val. not
over 15c sq yd., not
over 70c Ib. 7c sq yd & 50%
Val. Over 15c sq. yd.,
not over 70c Ib,
8c sq yd & 60%
Val. not over 15c sq.
yd and over 70c Ib,
7c sq yd & 56%
Val. Over 15c sq yd
and over 70c Ib,
8c sq yd & 55%
122 F. B. VANDEGRIFT & CO,
Par. Article. Rate.
Weighing over 4 oz
sq yd, pay as cloths.
369 Wool dress goods, n. 8.
p. f., val. less than
70c Ib....11c sq yd & 50%
Val. over 70c Ib,
11c sq yd & 55%
Weighing over 4 oz sq
yd, pay as cloths.
362 Wool extract . . . . . . ... 20c Ib
867 ** flannels for un-
derwear, val. not over
40c Ib . . . . . . . . 22c Ib & 30%
Val. Over 40c, not over
50c Ib . . . . . . . . 33c Ib & 35%
Val. over 50c Ib, pay
as Dress Goods.
279 Wool grease . . . . . . . . .4%C Ib
366 “ manufactures, II.
s. p. f. (See Wool
Cloths.)
360 Wool on the skins duti-
able 1G Ib less than
other wools of the
Same class.
862 Wool waste, n. S. p. f... 20c Ib
361 “ waste, top, slub-
bing, roving, ring and
garnetted . . . . . . . . . . . 30c. It)
371 Wool webbings, gor-
ings, su s p en d e rs,
braces, etc.,
50c Ib & 60%
$65 Wool yarn, val. not over
30c Ib. . . . . . 27%c no & 40%
val. Over 30, Ib,
*814c mo & 40%
Par. Article. Rate.
703 Works of American ar-
tists t e m p or a r i ly
abroad . . . . . . . . . . . . . . Free
701 Works of art, engrav-
ings and scientific ap-
paratus for temporary
exhibition . . . . . . . . ...Free
702 Works of art for perma-
nent exhibition by so-
cieties . . . . . . . . . . . . . . Free
517 Wormgut, crude . . . . . . . Free
448 “ Infs. Of . . . . . . . . . . . 25%
X -
524 Xylol . . . . . . . . . . . . . . Free
Y.
704 Yams .......... .... ...Free
531 Yarn, coir ....... . . . . . . Free
385 “ silk . . . . . . . . . . . . . . .30%
365 “ woolen. (See Wool
yarns.) s
245 Yolks of eggs .... r. s. 25%
Z.
705 Zaffer . . . . . . . . . . . . . . . . . Free
57 ZInc, dry . . . . . . . . . . . . . . 1c Ib
ground in oil. . . . . . .1% c Ib
192 ZInc blocks and pigs...1%c no
§7 “ chloride and sul-
phate of . . . . . . . . . . . . .1c Ib
193 ZInc manufactures. . . . . 45%
192 “ old . . . . . . . . . º e º gº tº e 1c.
57 “ oxide of. (See Zinc.)
192 “ sheets . . . . . . . . . . .2c lºb
57 “ w h i t e sulphide
of . . . . . . tº e º 'º - tº e º tº gº tº wº 134c Ib
A'evised to /u/y 1, 1902.
KILOGRAMs IXEDUCED. 123
KILOGRAMs REDUCED TO AVOIRDUPOIs POUNDS.
1000 GRAMs==l Kiro. =2.2046 lbs.
—º
Rilos. | Pounds. Kilos. Pounds. Kilos. Pounds.
I 2.2046 38 83.7748 74 163.1404
2 4.4092 39 85.97.94 75 165.3450
3 6.61.38 40 88.1840 76 167.5496
4 8.8184 41 90.3886 77 169.7542
5 1 1.0230 42 92.5932 78 171 9588
6 13.2276 43 94.7978 79 174.1634
7 154322 44 97.0024 80 176.3680
8 17.6368 45 99.2070 81 178.5726
9 19.8414 46 101.4116 82 180.7772
10 22,0460 47 103.6162 83 182.98.is
11 24.2506 48 103.8208 84 185.1864
12... . 26.4552 49 108.0254 85 187.3910
13 28.6598 50 110.2300 86 189.5956
14 30.8644 51 112.4346 87 191.8002
15 33.0690 52 114.6392 88 194.0048
16 35 2736 53 116.84.38 89 196.2094
17 37.4782 54 119.0484 90 198.4140
18 39.6828 55 124.2530 '91 200.6186'
19 41.8874 56 1234576 92 202.8232
20 44,0920 ! 57 | 125,6622 93 || 205.0278
21 46.2966 58 i 127.8668 94 207.2324
22 48 5012 59 130,071.4 95 209.4370
23 50.7058 60 132.2760 96 211.6416
24 52.9104 61 134,4806 97 213.8462
25 55 1 150 62 136.6852 98 216.0508
26 57.3196 63 138.8898 || 99 218.2554
27 69.5242 64 141,0944 100 220.4600
28 61.7288 . 65 143,2990 200 440.9200
29 || 63.9334 66 145.5036 300 661.3800
30 66.1380 67 147.7082 400 881.8400
31 68.3426 68 149.9128 500 1102.3000
32. 70.5472 69 152.1 174 600 1322.7600
33 72.7518 70 154.3220 700 1543.2200
84 74.9564 71 156.5266 800 || 1763.6800
35 77.1610 72 158.7312 900 | 1984.1400
36 79.3656 73 160.9358 ... 1000 2204.6000
37 81.5702 -
124 VALUES OF FOREIGN COINs.
VALUES OF FOREIGN COINs.
TREASURY DEPARTMENT,
Washington, D. C., July 1, 1902.
~5
M ###5
Country. Standard *y ##3; y Coins.
1) . "C
> “5
Argentine Re
public....... [Gold........... Peso................. $o.965 |Gold : argentine ($4.824)
and Ž argentine. Silver.
peso and divisions.
ſGold: former system—4
| ..º.º.º. 8 florins
Austria - Hun- ($3.858), ducat ($2.287)
and 4 ducats ($9 149).
gary - - - - - - - - - - - Gold........... Crown .............. .2O3 H Silver: I and 2 #)
Gold: present system—
20 crowns ($4.052); Io
crowns ($2,026).
Belgium......... Gold........... [Franc............... . 193 |Gold : Io and 20 francs.
Silver: 5 francs.
Bolivia........... Silver ......... Boliviano.......... . .382 |Silver: boliviano and divi-
SIOInS -
Brazil............. Gold........... Milreis............. . .546 |Gold: 5, Io, and 20 mºreis.
British Posses- Silver: }4, 1, and 2 "mil-
sions, N. A. reis.
(except New-
foundland). Gold........... Dollar .............. I. OOO
Central Ameri-
can States—
Costa Rica. Gold........... Colon .465 |Gold: 2, 5, lo, and 20 co-
lons ($9.307). Silver: 5,
British Hon- \ ro, 25, and 50 centimos
duras........ Gold........... Dollar............... I, OOO
Guatemala l
§: } Silver ......... Peso .382 Silver: peso and divisions.
Salvador... J
ile............. [Gold Peso................. .365 |Gold : escudo ($1.825),
doubloon ($3.650), and
condor ($7 3oo). Silver
- peso and divisions.
ſ Amoy..... . .618
Canton ... . .617
Chefoo..... .591
Chin
Kiang ... . .604
Fuchau ... . . 572
Haikwan .629
(Cust’ms)
China............ Silver......... Tael- #ºv. .579
kong f
Niuch- (t)
wang | .58o
Ningpo. •595
Shanghai .565
Swatow .57 I
Takau .622
UTientsin... .599 -
Colombia ...... Silver ......... Peso & © tº $ tº .382 |Gold: condor ($9.647), and
double condor. Silver:
- peso. .
Cuba.............. Gold........... Peso.................. .926 |Gold: doubloon Isabella,
centen ($5.or?). Alphonse
($4823). Silver: peso.
Denmark ...... Gold........... Crown............... .268 old : Io and 20 crowns.
#The “ British dollar" has the same legal value as the Mexican dollar in Hong-
kong, the Straits Settlements, and Labuan.
VALUES OF FOREIGN COINS. 125
~5
M #3%;
f onetary v. 2 * : &
Country. Standard. Unit. # É03 Coins.
> - 5
Ecuador......... Gold Sucre ............... .487 |Gold: Io sucres ($4.8665).
Silver: sucre arid divi-
sions.
Egypt............ Gold........... Pound (roo pi- || 4.943 |Gold: pound (roo piasters),
asters) ......... 5, Io, 20, and 50 piasters.
Silver: 1, 2, 5, Io, and 20
plasters.
Finland.......... Gold........... Mark ............... . . 193 |Gold: 29 marks ($3.859),
1o marks ($1 93).
France........... Gold........... Franc ............. . 193 |Gold : 5, 1o, 20, 50, and roo
francs. Silver: 5 francs.
German Emp. Gold • Mark ............... .238 Gold : 5, Io, and 20 marks.
Great Britain. Gold........... Pound sterling...| 4.866%|Gold: sovereign (pound
sterling) and 5% sovereign
Greece........... Gold........... Drachma........... • 193 old: 5, Io, 20, 50, and roo
drachmas. Silver: 5
diachmas.
Haiti.............. Gold Gourde ............. .965 Gold: 1, 2, 5 and rogourdes
Silver: gourde and divi-
. S1On S.
India ... ........ Gold........... Pound sterlingt. 4.866%|Gold: sovereign (pound
/ Sterling) Silver: rupee
and divisions
Italy ....... IGold........... Lira...... .......... .193 |Gold: 5, 10, 20, 5o, and roo
- lire. Silver: 5 lire.
Japan............ Gold........... Yen ................. .498 |Gold : 5, Io, and 20 yen.
- Silver: Io, 20, and 50 sen.
Liberia.......... . Gold........... Dollar............... I. OOO
Mexico ......... [Silver......... Dollar............. .415 |Gold: dollar ($o.983), 2%,
5, Io, and 20 dollars.
Silver: dollar (or peso)
and divisions.
Netherlands ... IGold........... Florin............... .4oz |Gold: Io florins. Silver:
%, 1, and 2% florins.
Newfoundland Gold........... Dollar............... 1 or4 |Gold: 2 dollars ($2.027).
Norway....... . [Gold........... Crown .............. .268 |Gold: Io and 20 crowns.
Persia............ [Silver......... Kran................. .o'70 |Gold : %, I, and 2 tomans
($3.4c0). Silver: }4, 34,
1, 2, and 5 krans.
Peru.............. Gold........... Sol ............ ... . . .487 |Gold: libra ($4.8665). Sil-
- ver: Sol and divisions
Portugal ........ Gold........... |Milreis.............. I ošo |Gold: 1, 2, 5, and Io mil-
TelS.
Russia............ Gold........... Ruble.......... .515 |Gold : imperial, 15 rubles
($7.718) and 9% imperial,
7% rubles ($3.859). Sil-
ver. 34, 3%, and 1 ruble.
Spain ............ Gold........... Pescta.............. .193 |Gold: 25 pesetas. Silver:
5 pesetas.
Sweden ......... Sold........... Crown.............. .268 |Gold: Io and 20 crowns.
.Switzerland.... |Gold........... Franc ----........... 193 |Gold : 5, 10, 20, 50, and roo
francs. Silver : 5 francs.
Turkey ......... Gold........... Piaster.............. .o44 |Gold: 25, 5o, Ioo, 250, and
5oo piasters.
Uruguay........, |Gold........... Peso.................. 1.034 |Gold: peso. Silver: peso
and divisions.
Venezuela...... Gold Bolivar.............. .193 |Gold : 5, Io, 20, 50, and roo
bolivars. Silver: 5 boli-
VarS.
†The sovereign is the standard coin of India, but the rupee ($o.324.4%) is the
money of account, current at 15 to the sovereign.
R. E. PRESTON, Acting Director of the Mint.
The foregoing estimate by the Director of the Mint, of the values of foreign
coins, I hereby proclaim to be the values of such coins in terms of the money of
account of the United States, to be followed in estimating the value of all foreign
merchandise exported to the United States on or after July 1, 1902, expressed in any
of such metallic currencies. -
H. A. TAYLOR, Acting Secretary of the Treasury.
126
REDUCTION OF FOREIGN COINS.
MARK OF GERMAN EMPIRE,
REDUCED AT CUSTOM House STANDARD OF
23; CENTs.
Marks. I $ cts. Marks. $ cts. Marks $ cts.
l .238 38 9,044 75 17.850
2 .476 39 9.282 76 | 18,088
3 .714. , 40 9.520 77 18.326
4 .952 41 9.758 78 18.564
5 1.190 42 9.996 79 18.802
6 1,428 43 10.23% 80 19,040
7 1.666 44 l().472 i 19.278
8 1.904 45 ið.7i.) 82 19.516
9 2.342 46 10.948 83 19.754
10 2.380 47 11.186 84 !9.9%:
11 3,618 48 11.43% 85 20.230
12 2.856 49 11,662 86 20 468
13 3,094 50 & 1.900 87 20.706
14 3,332 51 $2.138. 88 20.944
15 3.570 52 $2.3% 89 21.182
16 3.808 53 12.6}4 90 21.420.
17 4.046 54 #2.85% 9i 21,658
18 4,284 55 13,090 92 21.S96
19 4.522 à6 13.328 93 22.134
20 4.76% 5? . $3,566 94 22.372
21 4,998 58 13.804 95 22.610
22 5,236 59 14,042 96 22.848
23 5.474 60 14.280 97 23.086
24 5.7;2 is 61 #4.518 98 23.324
25 5.950 || 62 14.756 99 23.562
26 6.188 •-63 $4.994 100 23.800
27 6.426 64 $5.232 200 47.600
28, 6.664. 65 $5.470 300 71.400
29 . 6,902 66 i5708 400 95.200
30 7,140 67 15.946. 500 119,000
31 7.378 68 16, 184 600 142,800
32 7.616 69 16,422 700 166.600
33 7.854 70s 16660 800 | 190.400
34 3.092 71 16.898 900 214,200
35 8.330 72 17.136 1000 238,000
36 8.568 73 17.374
37 8.806 74 17612


REDUCTION OF FOREIGN COINS.
127
FRANC OF FRANCE, BELGIUM AND SwitzERLAND.
RA, GRECIAN DRACHMA AND
ITALIAN LI
SPANISH PESETA.
REDUCED AT CUSTOM House STANDARD OF 191%, CENTs.

Francs. $ cts. Francs. 3 cts. Francs. $ cts.
1 .193 : 38 7.334 75 14,475
2 .386 39 7.527 76 14.668
3 .579 || 40 7.720 77 14,861
4. .772 || 41 7.913 78 15,054
5 .965 || 42 8.106 | 79 15.247
6 1.158 - 43 8.299 80 15.440
7 1.351 44 3.492 || 81 15.633
8 1.544 45 8.685 82 15,826
... 9 1737 46 8.878 S3 16,019
*io 1.930 47 9.07 i 84 16.212
| 1 2.123 # 48 9.264 85 16405
12 2.316 || 49 9.457 86 16.598
13 2.509 || 5, 9.650 87 16.791
14 2.702 || 5] 9.843 88 16.984
15 2.895 || 52 10.036 89 17.177
| 6 3.088 §3 10.229 90 17.370
17 3.281 54 ! 0.422 91 . 17.563
18 3.474 55 i0.615 9? 17.756
19 3.667 || 56 10.808 93 17,949
20 3.860 £7 18.001 94 18.142.
21 4.053 S 58 i 1.194 # 95 18.335.
22 4.246 # 59 } | 387 96 18.528
23 4.439 60 t 1.580 97 18.721
24 4.632 61 11.773 98 18.944
25 4.825 § 62 11.966 99 19 107
26 5.018 63 12.159 1(10 1930ſ)
27 5,211 64 12.352 200 38.600
28 5.404 || 65 12.545 300 57.900
29 B.597 66 12.738 400 77.200
30 5.790 67 12.931 500 96.500
31 5.983 || 68 13 124 600 | 15800
32 6.176 69 13:317 700 135.100
33 6.369 - 70 13.510 800 154.400
34 6.562 71 13.703 .: 900 173.700
35 . 6.755 72 13.896 1000 193 ()00
36 6.948 || 73 14.089 -
37 7.141 74 14.282
128
REDUCTION OF FOREIGN COINS.
POUND STERLING OF GREAT BRITAIN.
REDUCED TO DOLLABs AND CENTs AT CUSTOM Housh: STANDARD, $4.8665, As
PROVIDED BY LAw, R. S. 3665.

£ s. $ cts. if $ cts. 3. $ cts. * £ 3 cts.
1 2433 || 22 || 107.0630 || 62 301.7230|| 102 || 496.3830
2 .4866 || 23 || 111.9295 || 63 || 306,5895. 103 501.2495
3 .7299 24 116,7960 - 64 || 311.4560 || 104 506.1160
4 .97.32 || 25 121.6625 || 65|| 316,3225. 105 || 510.9825
5 1.2165 26 | 126,5290 66 || 321.1890 106 || 515,8490
6|| 1.4598 27 J31.3955; 67 || 326.0555. 107 || 520.7155
7| 1.7031 || 28 136.2620 68 330.9220 108 525,5820
8 | 1.9464 29 141.1285 69 || 335,7885 109 || 530.4485
9| 2.1897 30 145.9950; 70 340.6550 110 || 5353150
10| 2.4330 || 31|| 150,8615. 71 || 345,5215; 111 || 540.1815
11 2.6763 || 32 | 1557280 72 350.3880 - 112 || 545.0480
12| 2.9198 || 33 | 160,5945 i 73 || 355.2545. 113 549.845
13 3.1629 || 34 165.4610 , 74 360.1210 114 554,7810
14 || 3.4062 35 | 170.3275 75 364.9875 115 559,6475
15| 3,6495 || 36|| 175.1940 || 76 || 369.8540. 116 564,5140
16| 3.8928 || 37 180.0605 77 374.7205 || 117 | 569.3805
17 4.1361 I 38 184.9270 78 379.5870 118 574.2470
18 4,3794 || 39 189.7935 . . 79 384,4535' 119 579.1135
19| 4,6227 | 40 | 194.6600 80 || 389.3200 120 583.9800
31 4.8665 || 41 | 199.5265 || 81 || 394, 1865 121 588.8465
2 9.7330 || 42 204,3930, 82 || 399,0530 122 || 593.7180
3 14.5995 || 43 209,2595 83 403.9195 || 123 598.5795
4 19.4660 44 214.1260 | 84 | 408,7860 l 124 6034460
5 24.3325 45 218.9925 || 85, 413.6525 || 125 608.3125
6 29.1990 || 46 223.8590 86 418.5190 || 126- 613.1790
7 34.0655 47 228.7255 87 423.3855 127 618.0455
8 38.9320|| 48 || 233.5920 || 88 || 428.2520 || 128 622912:
9 43.7985 49 238.4585 89 433.1185 i29 627.7785
10 48.6650. 50 243.3250 90 437,9850 || 130 632.6450
| 1 53.5315 51 | 248.1915 91 442.8515 131 || 637.51.15
12 58.3980 52 253.0580 92 || 447.7180 || 132 642.3780
13 63.2645 53 257.9245 93 || 452.5845 133: 647.2445
14 68.1310|| 54 262.7910 || 94 || 457.4510 || 134 652.1110
15 72.9975 55 267.6575 95 462.3175 135 656.9775
16. 77.8640 || 56 272.5240 96 || 467.1840 || 136 | 661.8440
17 82.7305 || 57 277.3905 || 97 || 472,0505 || 137 | 666,7105
18 87.5970 58 282.2570. 98 || 476.9170 || 138 671.5770
I9 92.4635 | 59 287.1235 99 || 481.7835 || 139 || 676.4435
20 97.3300 60 291,9900 100 || 486.6500 || 140 | 681.3100
21 | 102.1965 || 61 296.8565 || 101 || 491.5165 141 | 686.1768
We are the Only Regularly Appointed
Import Freight Agents
OF THE
Delaware, Lackawanna and
Western Railroad Co.
Over Which Operate the Following
FAST FREIGHT LINES :
Lackawanna Line
Lackawanna Grand Trunk Line
t Wabash and Lackawanna Despatch
RAIL AND LAKE :
Lackawanna Transportation Co.
Lackawanna Green Bay Line
Northern Steamship Co.
Minneapolis, St. Paul & Buffalo S. S. Co.
Port Huron & Duluth Steamship Co.
- Union Transit Co.
Wabash Lake Line -
Detroit & Buffalo Steamboat Co.
Cleveland & Buffalo Transit Co.
We also operate out of Philadelphia over the Philadelphia
& Reading Railway Co., and out of Boston over the Boston &
Maine Railroad. * +
* On application, we will quote you rates. Correspondence
invited on all questions. Through Bills of Lading issued by our
Foreign Agents.
F. B. Vandegrift & Co.
IMPORT FREIGHT AGENTS
New York, Chicago,
66 Beaver Street 315 Dearborn Street

THIS IS AN ABRIDGED EDITION
OF
VANDEGRIFT’s
UNITED STATES TARIFF
FOR A COPY OF
AN UNABRIDGED EDITION
Revised to July 1, 1902
CONTAINING
Dingley Tariff in Full, Foreign Express
Tariff, Drawback Rates, Decisions of
General Appraisers and Courts,
Schedule of 25,000 Articles,
and Administration Act
WRITE OR SEND TO
F. B. VANDEGRIFT & Co.
Customs Brokers and Forwarders
New York Chicago
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S P E E C H .

9.)
HoN. John P.”ſon Es,
OF Nº. - ls) -li
sENATE of THE
SEPTEMBER 1 o,
UNITED STATES,
1890,
[Part of Congressional Record.]
NEW YORK,
The Senate, as in Committee of the Whole,
having under consideration the bill (H. R. 9416)
to reduce the revenue and equalize duties On im-
ports, and for other purposes—
Mr. JONES, of Nevada, said:
Mr. PRESIDENT: There are two tests to which
all theories may be subjected, the test of reason
and the test of experience. Discussions of the
tariff are usually replete with statistics, and so
completely, as I think, do statistics prove the
wisdom of protection, that the advocates of that
policy may well be pardoned for relying in large
measure upon demonstrated facts for its ample
justification. But, insamuch as that side of the
question has already been fully presented, it will
be my endeavor in the few remarks which I shall
have the honor to submit to avoid as far as pos-
sible the statistical method, and to rely, for the
most part, on what I conceive to be the funda-
mental principles on which a protective System
is founded.
The Senate, however, being anxious to reach
a vote on the pending measure, time will not
permit the marshalling of all the arguments
which to my mind support the policy of protec-
tion. They are as numerous as the interests of
the nation are various. Nor will the exigencies
of this occasion admit of great amplification of
the arguments presented. I shall therefore con-
19 OO.
tent myself rather with outlining than exhaus-
tively discussing the propositions.
*
º
*
I do not rise to defend the policy which in the
short space of thirty years has enabled this Re-
public to leap to the front rank among the nations
of the earth. That policy needs no greater de-
fence than to point to its achievements. “By
their fruits ye shall know them l’” I desire
simply to present a few of the basic propositions
constituting the immovable logical foundation
upon which our tariff-wall securely stands. If,
in the performance of this task, the discussion
shall occasionally trench on the abstruse, I can
only express the hope that the innate dignity of
the inquiry will warrant the attention which I
invoke for its consideration.
Can a Nation do more than supply all
its own Wants?—No man, Mr. President, can
produce of all things more than are sufficient for
his wants. In the savage state he clearly cannot
do it. As he becomes civilized, at every onward
step, at every upward reach, his wants grow in
number and in character more rapidly than do
the means of Supplying them. Some are physical
wants, which must first be supplied, but these
are the least of the wants of man. With every
discovery in science, with every development of
invention, with every new aspiration come troop-
ing before his mental vision new wants,
After all that he has achieved in thousands of
years of slow and toilsome emergence from bar-
barism man still finds himself standing on the
edge of Space, reaching out into the mysterious
and marvelous domain of science, groping into
the Secret recesses of the earth, peering into the
infinite azure and the deeper infinitude of his own
brain, in the attempt to satisfy new wants. If
one man can produce of all things more than he
wants, sixty-five million men can not produce of
all things more than they want. Nor will the
exchange power of the product of the labor of
one man or of sixty-five million men be more than
sufficient to supply his or their wants.
When, therefore, all the activities of a nation
are in equilibrium—when its industries are per-
fectly adjusted to its needs—that nation can do
more than Supply to all its people all the things
they need. As society exists by reason of the
mutual wants of man, if the inhabitants of a
country occupy themselves in supplying all their
own wants, there can not fail to be occupation
enough for all, and there will be no surplus for
export. -
There are, however, barriers established by
nature, such as defects or limitations of soil or
climate, or both, which render it impossible for
men at the particular spot of earth on which they
may be situated to produce the entire variety of
articles of which advancing knowledge admits
and which growing tastes desire. It is not un-
natural, therefore, that men should wish to obtain
from other countries some of the products which
nature has inhibited in their own. Reciprocally,
it is natural that they should produce of somé
articles indigenous to their own soil such quantity
beyond their immediate needs as may be given
in exchange for the foreign articles thus obtained.
But, as nations have grown up from small be-
ginnings, the needs, the ignorance, the perplex-
ities and the Selfishness of peoples have rendered
impossible a compliance with this just law. In-
dustries have been established and developed
where, for the moment, they would prove profit-
able, and the several countries of the world have
exchanged their products in response to the de-
mands of the “market.”
Two courses open to a Nation for the
supplying of its wants : which should
we adopt?—According to the policy thus devel-
oped, there are two courses opened to a nation
for the supplying of its wants.
On the one hand, it may confine itself to pro-
ducing, in larger quantities than its people need,
Some commodities of general or universal demand,
and exchanging with other countries its surplus
of those commodities for such others as it may
require but does not itself produce. On the other
hand, it may determine, so far as soil and climate
permit, to supply all its own wants.
Whatever may be deemed the wiser policy for
Small countries capable of exceptional develop-
ment in a few industries, but with limited natural
resources, who is there that can doubt the proper
policy for a nation of continental proportions,
possessing every variety of climate, controlling
every character of soil, and enjoying in unex-
ampled degree and diversity the bounties and
benefactions of nature? And especially who
can doubt the proper policy for such a nation
when it possesses a numerous and versatile popu-
lation? The people of the United States already
number 65,000,000. They inhabit a vast domain
extending from the frozen zone to the tropics.
Imperial Rome, at the height of its splendor,
comprising the civilized world, did not possess
greater Variety or affluence of natural conditions.
The energy of our peaple is unexcelled, their
ingenuity unequaled. What article of importance
to civilization can they not produce or soon learn
to produce for themselves? -
At the rate of increase hitherto shown, our
population in thirty years will number 130,000,-
000. In sixty years, or within the lifetime of
men now born, it will number 250,000,000.
What momentous consequences do these figures
import? What far-reaching results do they
imply 7
How shall the infinitely varying capacities of
this vast population find suitable occupation ?
What economic policy will best subserve the in-
terests of all and secure for them the highest
form of industrial, educational, social and politi-
cal development?
In the evolution of society the pastoral pre-
ceded the agricultural age. Before men were
farmers they were shepherds; that is to say
they were nomads. Being unacquainted with the
art of agriculture or its implements, they wan-
dered with their flocks from place to place in
search of pastures that should demand no more
labor than was necessary to reach them. In
these wanderings they encountered a constant
element of uncertainty. They were never sure
how soon the fields of nutrition might become
exhausted or they themselves be dislodged
and their flocks driven off by hostile tribes.
They found, also, that, notwithstanding long and
tedious journeys, occasional seasons arrived when,
owing to the action of the elements or otherwise,
the grasses were stunted or altogether failed of
growth, and water became inaccessable, so that
their herds perished of hunger, thirst and fatigue.
Urged by necessity, therefore, the more en-
lightened of them bethought themselves of the
wisdom of controlling the conditions of existence
by causing production to take place through the
exercise of their own energies on the soil, within
a fixed area, on which they should permanently
try of the product of the ill-paid labor of other
lands.
Men differ widely in their tastes and aptitudes.
The occupation that may be suitable and enjoy-
able for one may be unsuitablo or repugnant to
another. The work that would draw from one
man his highest possible effort would render an-
other indiſſerent and inert. It is only when men
follow the occupations for which they are by
nature and disposition adapted that they enter
with zest upon their daily labor, and contribute
with pleasure all the force of body and mind to
the performance of what would otherwise be an
irksome or intolérable task. One of the most
serious evils that can afflict industry is the waste
arising from lack of zeal in those who, by reason
of the absence of opportunity, have been forced
into vocations to which they are ill adapted.
The elevation and development of all the peo-
ple should be the highest aim of the nation.
remain, and of securing to themselves the results
-- of their labor by erecting barriers which should
* serve as a protection against the attacks of less
> enlightened but more numerous tribes.
That elevation is never complete until every man
is occupied in the “labor of love”—the labor of
his free, intelligent and thoughtful choice—the
<. labor which induces greatest effort without fati
º • vira n + Cº. - b* atigue
§ we º º an º wº and produces the largest and most beneficial re-
.* Society advances and emerges from the strictly sults. In all this the real enjoyment is the labor,
º
š-š
* agricultural to the combined agricultural and
33 mechanical industries the same rule of progress
º and safety will hold good. The people of a coun-
à try should produce everything that nature favors
T within their area, and should by proper means
§ protect their industries from industrial invasion.
ſº In order to secure to this country such abund-
ance and variety of industries as shall constantly
occupy, in the highest degree of efficiency, a
large and alert population, and to maintain such
industries indefinitely as population increases, I
contend that it is necessary for us to supply our
own wants to the fullest extent that the climate,
soil and physical conformation of our country
will permit, and to seek in foreign countries only
such articles as can not be produced here without
greater expenditure of physical and mental force
than is required in the production of like articles
elsewhere.
4.
The resulting product, while indispensable and
natural, is not of itself the source of delight,
except as the climax of effort. The enjoyment
is in the doing, in the making, in the work.
What would be thought of the hunter, whether
poor or rich, who should have his mind constantly
fixed upon the material result of the chase? If
he be a poor man the result is useful, perhaps
necessary to him. But the glow of delight is in
the pursuit, in the occupation for mind and hand.
So it is with the workman engaged in the labor
of his aptitude. The high reward is in the pur-
suit, in the mental attrition, in the overcoming
of difficulties, in the sense of achievement.
When men have found their true vocation they
approach it each day with pleasure; they pursue
it each day with exaltation ; they live in its con.
templation; they are happy in unraveling its
mysteries, and take delight in surveying the fair
proportions of their well-conceived and well-
wrought plans.
This is the inestimable boon which diversified
industries confer, and no greater diversity of
human effort is conceivable than is involved in
Without the widest diversity of occupation
among people their maximum power can not be
realized.
This complete diversification of industries can
not co-exist with the free admission to this coun-
4
supplying all the wants, material, intellectual
and Spiritual, of the free, progressive and aspir-
ing population of this country. Such diversity
can be secured only by confiding to those people
themselves the duty of supplying all their mutual
wants, which, under existing conditions, can not
be done without recourse to the policy of pro-
tection.
The policies of other Nations not nec-
essarily a criterion for us.-If reminded of
economic policies that prevail in other countries
and of the great wealth and high civilization
that there co-exist, I reply that policies which
are credited with developing that wealth and
civilization for a comparatively few, must also
be charged with the degradation and starvation
of uncounted millions. In a government of the
people, for all and by all the people, no infer-
ences favorable to such policies can be drawn.
Of what account to the great mass of the workers
of those countries is it that they toil from day-
light to dark throughout all the years of their
weary lives, if of the wealth they create they
themselves receive but a fraction, barely enough
even in the heyday of civilization, to maintain
existence on a plane but one stage removed from
that of primeval man 7
If the wealth created be not justly distributed,
if the producers of it are forever to produce and
never to enjoy, if the larger part of the fruits
of production are appropriated by a few who do
not produce, and if this be the best result of en-
lightened progress, what a ghastly failure is civ-
ilization | But, Mr. President, it is not the best
result. It is the result only of a partial and
one-sided development, the fruits of false and
selfish policies. The policies that are to pre-
vail in this country must be such as will diffuse
the blessings of material progress and advancing
civilization among the entire body of its citizens.
The larger the numbers of the population of a
country the greater the need for diversification
of its industries. Among sixty-five million
people an infinite variance of aptitudes will be
found, and every increase in the number of in-
habitants will be accompanied by a need for
greater subdivision of industries to correspond
with the ever-increasing differentiation of indi-
yidual faculties and proclivities,
In order, therefore, to insure that a given
population will always voluntarily yield up its
natural maximum of working force, such nation-
al policies should be adopted as may encourage
the establishment and maintenance throughout
the country of the widest diversity of industrics.
This diversity should not be limited or affected
by geographical lines. It should not be a char-
acteristic of one section merely. In a country
of such magnitude and variety of resources as
ours each section should develop and mature
every industry to which it may be adapted.
There would thus be available for growing youth
in all parts of the country the opportunity of
adopting at home such calling as may be suited
to individual aptitude. As additions were made
to the number and variety of industries time
would produce the needed adjustment and
co-ordination.
Industrial as important as political
independence.--In order that this Republic
may become fully independent it must become
not merely politically, but also industrially inde-
pendent ; for, broadly considered, political free-
dom is not so much an end as a means; it is not
a goal, but a starting point. In the presence of
false industrial and economic systems political
freedom can not avail. After inducing the mass
of the people to indulge in high aspiration, to
believe in the principles of our immortal Declar-
ation that “all men are created equal,” to un-
derstand that here they are living under no
system of caste, that the people constitute the
Government, and that all opportunities are open
to the least among them, it is vain to say that
they must be content to live in conditions of
misery identical with those which surround the
Subjects of despotic governments who have
never drank in the spirit of liberty. We must
not say to our people, “Aspire, be proud, be
independent—and live in squalor.”
To be independent in the true and full sense a
nation must become self-sustaining. Its work
must be done by its own people on its own soil.
In the means of livelihood of its citizens it must
be independent of all the world. It should not
leave them subject to the shifting, uncertain
and antagonistic policies of foreign governments.
A great people should possess themselves of ali
the arts and industries of civilization,
The Cest wealth—knowledge.—lºor, the
art, Mr. President, is better than the article.
The knowing how to produce is infinitely more
valuable than the thing produced. The product
we have for to-day; the knowledge we have for
all time. No nation can enjoy to the full extent
the luxuries, conveniences and comforts of civil-
ization whose people do not themselves produce
them. Such things can not be permanently
secured by exchange. If a nation would have
them it must create them.
This consideration should impel every nation
of wide territorial extent to be self-sustaining.
That is the condition pointed out by nature. It
is the only condition that accords with the fullest
growth and development of a people. Exchange
will for a time supplement our deficiencies, but
if for want of practical knowledge of the arts
our skill decline, our exchange power will also
decline.
Besides, material wealth is not the highest
wealth, nor is it the most enduring. Not only
is it drawn upon from day to day for natural
consumption in the supply of man's wants, but it
is liable to destruction by fire or flood ; and,
even when husbanded with solicitude and pro-
tected by all the safeguards that cunning and
skill can devise, it bears within itself the Seeds
of corrosion, and in spite of all that human
ingenuity can do it will deteriorate and decay.
How different is it with the intellect of man?
It develops with use ; it expands with exercise;
it strengthens with time. The more it is used,
that is to say, the more it is consumed, the
more abundant and prolific it becomes.
Whatever policy best employs and develops
the intellect of a nation, that is the policy which
most enriches it. For, in the last analysis, in-
tellect is the highest form of wealth. The prime
factor in the wealth of the United States is the
intellectual force of its people. The loss of a
fraction of that force would be a greater loss to
this Republic than the destruction at any given
moment of all its accumulated billions.
If a people have not intellectual vigor, no
matter what other elements of prosperity they
possess, they have not true or enduring wealth.
Imagine all our tangible products, the enormous
bulk of material wealth of this continent, trans-
ported into the heart of Africa and placed in the
possession of a people without intellect ; how
long would the Africans be rich 2 But a few
days, for they would consume the goods without
knowing how to produce others in their stead.
Or, again, conceive it all immersed in the
inaccessible depths of the ocean, leaving nothing
within the limits of our national domain, save
only the natural resources of our soil and climate
and the intellectual vigor and activity of our
people—within a short period we would have
reproduced it all.
The doctrinaires of Europe, and some of those
of our own country, are prone to ascribe our
unexampled growth and development to our
great natural resources. But that our prosper-
ity is due only in part to that cause must be
manifest from the slightest historical retrospec-
tion. Before our race peopled this continent,
the aboriginal Indians had, for untold centuries,
had at their disposal every physical property of
soil and climate that we to-day possess. Yet
where was their wealth''
The best knowledge — knowledge of
Work. — The ultimate foundation of wealth
among any people will be sought in vain in nat-
ural resources merely and in vain among tempor-
ary stores of tangible and material commodities.
The greatest wealth resides in applied knowledge.
Not the abstraction, knowledge, which has been
the fetich of the ages. Not the knowledge of
dilettanteism, which has glossed over the miser-
ies of mankind with the consolations of rhetoric;
not the knowledge of polite literature, which
has remanded man to the past and turned him
from the future; but the knowledge of science,
the knowledge of nature, the knowledge of en-
deavor, the knowledge of work. What the
world demands is a knowledge that shall
ameliorate the condition of man, that shall aug-
ment his happiness, develop his powers of body
and mind, and establish his dominion over
mature.
How is such knowledge to be acquired? Not
by contemplation merely, not by the brain alone,
but by the combination of brain and hand. To
be of use to mankind, the conceptions of the
intellect must be transmuted into material force.
On this point I will read an extract from a
monograph on “The Co-education of Mind and
Hand,” a most luminous and thought-stirring
6
essay by Charles H. Ham, published by the New
York College for the training of Teachers. In
it the attentive reader will find a contribution
to the literature of education and of labor not
surpassed, if equaled, in all the libraries of
learning. Mr. Ham says: -
Education and civilization are convertible
terms; for civilization is the art of rendering life
agreeable, and things—art products—constitute
the basis of all the comforts and elegancies of
civilized life. The great gulf between the savage
and the civilized man is spanned by the seven
hand-tools, and the modern machine-shop is an
aggregation of these tools driven by steam. Tools,
then, constitute the great civilizing agency of the
world. Carlyle well said of man: “Without tools
he is nothing, with tools he is all.” The savage
may own a continent, but if he has only the sav-
age's tools—the spear and the bow and arrow—
he will be ill fed, ill clothed, and ill housed. He
might be familiar with lº and the
science, but if he were ignorant of the useful arts
his state would be the more deplorable, for, with
the sensibilities and aspirations of a sage, he
would still be powerless to draw from heaven a
tººk of fire with which to Warm his miserable
lilj.
It is not necessary to divide the arts by the
employment of the terms “useful” and “fine,”
for the fine arts, so called, can only exist legiti-
mately where the useful arts have paved the
way. In a harmonious development the artist
will enter on the heels of the artisan. Art is one,
a unit. It is not less worthily typefied by the
carpenter with his square and the smith with his
sledge than by the sculptor with his mailet and
chisel and the painter with his easel and brush.
Both classes contribute to the elevation of man.
It follows that the ultimate object of education
is the attainment of skill in the arts. To this end
the speculations of philosophy and the experi-
ments of chemistry lead. At the door of the
study of the º and of the laboratory
of the chemist stands the artisan, listening for
the newest hint philosophy can impart, waiting
for the result of the latest chemical analysis. In
his hands these suggestions take form. Through
his skillful manipulations the faint tracings of
science become real things, suited to the needs of
human life, for it is through the arts alone that
all branches of learning find expression.
These words, Mr. President, will find ready
appreciation among all who have reflected upon
the influence of the arts upon the progress and
development of civilization.
The world has had its share of ornate but
barren scholasticism.
an intellectual training that made education an
end, not a means—a training as sterile as it was
severe and which kept the human mind forever
moving in a circle. It has trained its youth, when
it trained them at all, in dialectics, in the arts of
speech, in the arrangement of phrases, in the
devising of syllogisms. It is time it turned to a
higher order of effort—from the analysis of
sentences to the analysis of things, from meta-
physics to physics, from the artificial to the
natural.
It has seen the fruit of |
The giant forces of nature, that for thousands
of years had slumbered unsuspected under the
gaze and within the very reach of the abstract
philosophers, have been awakened by the con-
‘crete philosophy of labor. With that awaken-
ing has come a re-arrangement of all industry, a
re-adjustment of all interests, a transformation
of the universe.
Men have learned that the highest enjoyment
of knowledge consists not in revery, but in appli-
cation, and that the highest application consists
in supplying their own ever-increasing wants.
It is the increase of wants that distinguishes
civilization from barbarism. That increase
should, so far as possible, be supplemented by a
corresponding increase of power to supply them.
The importance of knowing how to make
rather than how to buy is seen in the fact that
the world has never more than one year's sub-
stance ahead. In the face of this tremendous
fact, how insignificant are all ideas of hiring our
work out and, by so doing, training and develop-
ing the creative faculty of the people of other
countries instead of that of our own.
What a nation needs in order to be great is
the generation of power in all its people; not
merely the power to think, but the power to
execute; not merely the power of a few to think
for all, but the power of all to think for them-
selves. Nations are unworthy the name of great
in which the thinking faculty is exercised by but
a fragment of the population. American civili-
zation is based on an essentially different foun-
dation. It depends on the intelligence of all.
But it should not content itself with a regard
for literature alone; it should perceive thought,
not in Sculpture and painting merely, but in the
art that supplies material wants. While admir-
ing the ability that creates a statue, which cul-
tivates and refines the tastes of a people, it
sould admire no less the steam-engine, whose
influence on civilization has been greater than
that of any other creation of man.
In a letter which I have recently received
from a lady of high culture, of most refined sen-
sibility and great accuracy of intuition, I find my
idea upon this point so happily expressed that I
shall read a few of her sentences and make
them my own. She says:
º
*::::::ink that insufficient consideration is given
to anics, men of practical science, and in-
ventors, as compared with that given to artists
and authors, Art, of course, has its place and
fills a certain demand of our nature, but Ino man
can enjoy the contemplation of a fine picture or
statue, or the reading of a poem, no matter how
perfect, its construction or subline its subject, if
he be hungry or scantily clad. The practical, the
useful, the necessary, must precede the beautiful
and the simply artistic, or at least go hand in
hand with them. At the º stage of Civili-
zation there is more of the human than of the
angel in man; and if the human side is neglected,
the angel will soon disappear.
As this lady well observes, it is only as the
human wants are satisfied that the finer qualities
of man become developed. It is hopeless to
expect high ideals of morality or civilization
while men are struggling for bread. This
struggle removed, the energy absorbed in the
fevered hunt for subsistence is liberated and
applied to purposes of progress, to production
and invention.
The power to produce—the faculty to create
—is indispensable to the full measure of enjoy-
ment of any product. A nation that can not
create things can not truly enjoy them. A
people who do not know how to produce an
article readily content themselves without it.
Without possession of the art — without the
knowledge how to make—the possession of the
article will not suffice. There is not, and can
not be, in the mere power to use, that sense of
possession and enjoyment that comes of the
power to create. Things furnished to a nation
by the intellect of other nations can never serve
the highest purpose. The highest work of art,
the product of a foreign people, can never con-
vey true delight to a people themselves wanting
in the power and experience of art.
I do not envy a people that could thoroughly
enjoy, or be content with copying the inventions
of other countries. It is the highest duty of a
government to adopt policies that shall tend to
develop the creative faculties of the people. In
the savage state the only object of man is to
obtain food and shelter. Civilization should have
a higher aim and purpose. In order to obtain
the barest necessaries of life—to secure a mere
animal existence—it was not necessary for men
to enter into relationships in Society, to organize
communities, to subject themselves to the re-
straints and limitations of civilization. Mere
physical existence could be maintained without it.
which existence offers is companionship.
Advantages of association.—The great
end of civilization as distinguished from barbar-
ism should be to uplift humanity, to unfold and
develop those qualities of mankind that are Su-
perior to the animal nature, to bring forth and
give play to intellectual force by the operation
of which the higher wants may be satisfied. In
this country the struggle is not for the bare
necessaries of life. The struggle is for advance-
ment, for progress, for elevation, for association.
These objects can be attained only by a govern-
mental policy that will insure such variety of
occupations as may evoke the best efforts of all
our people. The more men mingle together the
more each man learns of that which his fellows
known. Thus each will possess and enjoy a share
of the knowledge of all, and will himself have
imparted to others a share of the knowledge
resulting from his own observation and reflec-
tion.
Man is a gregarious animal. His strength can
not be developed, neither can his happiness be
Secured, in isolation. Imagine him placed, soli-
tary and alone, amid the most splendid and
luxurious surroundings, with every wish granted,
every yearning realized, every aspiration grati-
fied, excepting one alone, society—excepting the
touch of the human hand, the sound of the human
voice, the interchange of thought with his kind
He would fly from this condition as from death,
of which it is the “counterfeit presentment.”
The instinct of association is the most power-
ful attribute of our race. No object of desire
holds a higher place in the estimation of men.
From the cradle to the grave, the greatest charm
The
great object of life, after satisfying the indis-
pensable needs of physical existence, is social
intercourse.
This is more true of the people of this Repub-
lic than of those of any other country on the
globe. Nine-tenths of their labor, whether of
hand or head, is induced by social aspiration. It
is to gratify this aspiration, to give their chil-
dren larger and better opportunities, that men
hazard their lives in numberless vocations. It is
the mark of Superiority in a people that they
prize progress beyond physical ease, and it is the
boast of the American people that their pro-
gress is unexampled among the nations.
*
The principle of association and social growth
receives among us a broader recognition than
among any other people, and it is to this country
that the world must look for the highest reali-
zation of that principle. Association is the
fundamental fact upon which civilization rests.
It is the law of progress for humanity, and we
can no more escape a violation of its decrees
than we can escape a violation of those of any
other natural law. To men in aggregations,
with universality of occupations, properly pro-
portioned and co-ordinated, all power is given,
all advancement is possible.
So well and so universally is this fact appre-
ciated that the greater part of the material
wealth of every nation is derived from the as-
sertion of the principle of aggregation. The
twenty-five cities of Massachusetts, covering less
than 5 per cent. of the area, contain 77 per
cent. of the land values of that State. Boston
alone, containing not one-half of 1 per cent. Of
the area of the State, contains 45 per cent. of
the land values. These values do not arise from
any property of the soil.
What people are paying for in cities is not
the particular number of square feet which serve
the purpose of existence, but for the opportun-
ity at short range of Supplying each other's
wants—the opportunities of association, the
privileges of possessing paved and lighted streets,
ready means of locomotion, of having water, gas
or electricity in their homes, of having access to
libraries and museums, of having their morning
newspaper hot from the press, of attending in-
structive and entertaining lectures, of hearing
operas, of seeing the drama, and all the other
innumerable advantages which can only be had
by people in aggregation.
Association, then, stands for strength, for
concentration, for intensity, for achievement.
Isolation stands for feebleness, for ignorance,
for inefficiency. It is the negation of achieve-
ment. It implies expenditure of force without
proportionate result. It involves waste of phys-
ical energy, and induces mental languor and
impotence. Whatever, therefore, tends to bring
men together in communities, tends to lighten
the burden of each, while multiplying the
achievements of all. This is the great work
accomplished by a protective tariff.
As men must live by labor, they must learn
occupations that willl supplement each other.
The study of an occupation is the noblest study
of life. In the absence of a policy which may
enable our own people, without degrading com-
petition, to do all their own work, how are they
to secure opportunity for the study of varied
occupations 7
The great Schools of the world—the
WorkshopS.–The great schools of the world
are no longer those in which the dead languages
are taught. They are the mechanical workshops,
in which young men learn to build Corliss en-
gines, Waltham watches, dynamos, and the long
list of other marvelous machines that but her-
ald the approach of greater marvels. The pro-
fessors of the new philosophy are not those who
despise industry; they are the chieftains of in-
dustry. “This is the stone which was set at
naught of you builders, which is become the
head of the corner.”
These are the schools—the true “universities”
—that a nation needs. The instruction which
they impart has all the accuracy of mathematics,
all the grace of rhetoric, all the rhythm of
poetry. The implements of thought are not
words, but the tools of labor. The processes of
analysis and synthesis are taught by real, not
mimic, object lessons. The constructive faculty
is exercised where it should be exercised—in
construction. The imagination has free play in
the realm of invention and experiment. The
reasoning powers are disciplined to an extent
unknown to the logicians. In the making of an
argument men may err without detection; in the
making of a watch or a window sash they can
not do so.
Says Macaulay:
Bacon has remarked that in all ages when phil-
osophy was stationary the mechanical arts went
on improving. Why was this ? Evidently because
the mechanic was not content with so careless a
mode of induction as served the *; of the
philosophers. And why was the Fº
more easily satisfied than the mechanic? Evi-
dently because the object of the mechanic was to
mold things, while the object of the philosopher
was only to mold words. Careful induction is
not at all necessary to the making of a good
syllogism, but it is indispensable to the making
of a good shoe.
Mechanics therefore have always been, as far
as the range of their humble, but useful callings
extended, not anticipators but interpreters of
nature; and when a philosophy rose the object
of which was to do on a large scale what the
mechanic does on a small scaſe—to extend the
9
power and to supply the wants of man—the truth
of the premises which, logically, is a matter alto-
gether unimportant, became a matter of the
highest importance; and the careless induction
with which men of learning had previously been
Satisfied gave place of necessity to an induction
far more accurate and satisfactory.
Men may take risks, Mr. President, in the em-
ployment of a professor of Belles Lettres; they
will take none in the employment of an engineer.
The untrained head may do no harm; the un-
skilled hand may prove destructive. The work-
shop is the academia of the new philosophy. It
is the fountain of thought, from which must flow
the stream of invention that is to enrich and
fructify the world. Who can prophesy the ulti-
mate result of its work? Who would limit the
bounty which it must confer on mankind?
The greater the number of workshops existing
in a country the greater will be the number of
inventions, and the more numerous the sources
of that country's wealth.
The conquest of forest and field, the civiliza-
tion of man, was achieved not by literature, but
by labor; not by the wise saws of soothsayers,
the deductions of moralists, the eloquence of
orators, or the rhymes of those who “yoked rich
words together.” A half-dozen simple tools tell
the story of the early struggles. From these by
the cunning of brain and hand, have been evolved
all the intricate contrivances that now constitute
the extended paraphernalia of the workshop.
Whoever invented a new device and added it to
the common stock was the true civilizer. If it
be a benefaction to mankind to cause two blades
of grass to grow where before but one had grown,
it is no less a benefaction to multiply a hundred-
fold the power of the human arm.
Those who laud the graces of poetry and the
charms of rhetoric will do well to remember that
a machine which runs with rythmic beauty and
irresistible power is more awe-inspiring, more
eloquent, more noble, and infinitely more instruc-
tive and valuable to mankind than any poem ever
inscribed. The power-loom, the spinning-jenny,
the sewing-machine, the reaper, the steam-engine
have done more to deliver the world from bar-
barism—to clothe, to feed, and to elevate the
race morally, intellectually, and physically, than
all the works of poetry and rhetoric that the
world has ever seen. The Corliss engine is an
Iliad, the locomotive an anthem, the sewing-
machine an idyl, the reaper an eclogue. These
are the greatest achievements of man—the rich-
est and ripest fruits of his culture and genius.
Around these will the philosophers and littera-
teurs of the future admiringly cluster. In their
praise will the muses sing, the poets indite, the
Seers foretell. In comparison with their deeds
how insignificant the feats of Hector and Ajax,
how repulsive the exploits of Alexander and
Caesar !
The advancement of the future must find its
material basis in the development of the mechanic
arts and inventions. There is a limit to the con-
Sumption of food; the richest man can consume
no more of it than the poorest. An advance in
civilization does not increase the demand for food,
but it does increase without limit the demand for
articles that minister to the comforts and refine-
ments of life in other respects. New works of
use and ornament are constantly in demand; new
inventions and machines constantly making; new
styles of houses, of furniture, of clothing, of
jewelry, coming into vogue; new tastes and
fancies even in the games and amusements of
the people.
Those schools must be permanently
established.—To secure the largest achieve-
ment, manufactures must not only be varied and
generally dispersed throughout the country, but
it is indispensable that they be long continued.
The young of each generation must live in the
presence of work and in the atmosphere of pro-
duction. They must be accustomed to the hum
of industry. They must imbibe the spirit of ex-
ertion. They must grow up amid surroundings
that will give them respect for manual labor,
which they must identify with their future as with
honorable and self-respecting utility. They must
see no debasement in the hard hand and the
soiled face—these are the “medals” and insignia
of the new Order; they must hear none in the
rumble of machinery—it is the sign by which
they conquer.
A people accustomed to looking upon these
things as humiliating, or as involting inferiority,
can not succeed. When men realize that there
are no divisions in the guild of labor, and that
all labor is noble and necessary, they will seek
that to which they are adapted, and will pursue
it with zest. For such men there is always a
i() r -
future. Zeal is the parent of promotion. Study
and observation are the handmaids of progress.
Improvements in machinery are effected by
those in daily association with it; who see and
study it at rest and in motion; who occupy them-
selves in noting the harmony and proportion of
its parts and their adaptability to the functions
to which they are assigned; who reflect upon the
symmetry or the aberrations of its movements
and discuss its merits and defects in detail with
their fellows. This process awakens thought
and arouses ambition. It invents machines and
develops men.
A country can have no source of power more
enduring than a body of skilled and well-paid
mechanics who, working and residing in centers
or cities at short and convenient distances apart,
spend their money in their own localities and
furnish the most certain, convenient, and profit-
able market for the products of agriculture. I
lay it down as a fundamental maxim that the
highest agricultural prosperity can never be
reached except in countries which do their own
work; in other words, in countries in which man-
ufactures abound and in which the farms feed
the factories. The law of orderly progress de-
mands that a people shall develop all their powers.
The aptitude of each will supplement the aptitudes
of the others.
The aptitudes of all the people should
be developed.—In a controversy on protection
and free trade, appearing in the North American
Review for January, 1890, Mr. Gladstone said:
International commerce is based not upon arbi-
trary or fanciful considerations, but upon the
unequal distribution among men and regions of
aptitudes to produce the several commodities
which are necessary or useful for the sustenance,
comfort, and advantage of human life. If every
country produced all commodities with exactly
the same degree of facility or cheapness, it would
be contrary to common sense to incur the charge
of sending them from One country to another.
But the inequalities are so great that (for ex-
ample) region. A can supply region B with many
articles of food; and region B can in return sup-
ply region. A with many, articles of clothing at
such rates that although in each case the charge
of transmission has of necessity been added to
the first cost, the respective articles can be sold
for importation at a lower rate than if they were
home-grown or home manufactured in the one or
the other respectively.
In this statement Mr. Gladstone, to my mind,
surrenders the fundamental basis of international
free trade, so far as this country is concerned. |
Whatever might have been the apparent or pre-
ºs- *** *
sumed support for such a theory up to 1861,
before the protective tariff gave impetus to home
manufacturers, the experience of the past thirty
years has conclusively demonstrated to every re-
flecting mind that numbers of aptitudes not before
possessed by our people have in that time been ac-
quired. What but a free-trade policy can pre-
went us from acquiring other aptitudes which we
do not now possess? Aptitudes reside not in the
country, but in the people, and they are as varied
as the people are numerous. Within the period
indicated the devolpment of aptitudes in this
country has been a marvel and a revelation not
only to ourselves, but to the world.
Mr. Gladstone admits that “it would be con-
trary to common sense” to pay freight on goods
exchanged between countries, provided the apti-
tude for making such goods existed at home.
Why not carry the argument to its logical con-
clusion, namely, that with an alert population it
is cheaper to develop the aptitudes at home than
to continue indefinitely the payment of freight?
But I take the question to a higher ground,
where it enters the domain of ethics. It is not
the paramount duty of a people to develop all
their aptitudes? Is it not in the following out
of aptitudes that their enduring happiness is to
found ! The enjoyment essentially is not in the
product, but in its production; not in the posses-
sion of the article, but in the pursuit of the art.
Mr. Gladstone's argument is but a repetition of
that with which the free-traders have for fifty
years endeavored to make us familiar, namely,
that our “aptitude” is restricted to the cultiva-
tion of the soil, while that of England extends to
the ever-wideniug and all-comprehending work of
manufactures.
It would be much better for England if her
statesmen gave their country credit for more
aptitude for agriculture. Owing to neglect of
that industry a few months’ suspension of Eng-
land's commerce would bring the proudest of her
aristocracy to starvation. As to this country, it
will be found, as time goes on, that under the
benign influence of a protective policy, which
enables our people to supply all their own wants,
we shall develop more aptitude for manufactures
than now exists in any country of the world.
In a discussism on the repeal of the corn laws,
to be found in the Journal of the Statistical
• -------------------. .
11
society of London for January, 1839, a British
banker, in advocating the repeal of the duties,
stated, as one of the advantages to accrue to
England, that by offering a market for American
cereals the development of American manufac-
tures could be retarded. Free trade had not
then been declared in England. On the contrary,
so protective, even at that date, was the economic
policy of that country, that it was an offense
against the law, punishable with severity, to
export to a foreign country a piece of English
machinery. Cloth could be sold, but not looms.
The dream of England was to do skilled work for
all mankind, and to receive reward in proportion
to the skill. In stating his view as to the effect
of the repeal of the import duty on cereals, this
banker said:
It is probable that the continental nations, and
especially America, would cease to turn their at-
tention to manufactures. They would exchange
their raw product for our manufactures, and the
exchange would be beneficial to all parties. They
buy from us, and we buy from them, not from
any affection, but because the commodities which
each has for sale are produced at the lowest price;
and to effect such purchase is the constant aim of
all merchants.
The effect of our present corn laws is, that we
can not purchase their corn, and we are driving
them to become manufacturers. As it is contra-
band [in Great Britain] to export machinery,
they cannot buy it without paying an exorbitant
É; per cent. Imore than the regular charge
eing known to have been offered in this place to
land it in Belgium. Hence, as the machinery can
not be exported the heads are emigrating who
will make the machinery, and who will carry with
them all the capital they can command; and our
landed proprietors too late will find that the pros-
perity of agriculture depends upon the prosperity
of the manufacturers—upon their power of pro-
ducing commodities, and exchanging them for the
raw products of the agriculturists.
The bank-officer of fifty years ago was con-
cerned for the manufacturing Supremacy of his
country. In deeming it probable that America
would cease to turn its attention to manufact-
urés, it is evident that with him the wish was
father to the thought. It continues to be in-
timated that by reason of our great agricultural
resources we should depend for our wealth on
crops of cotton, corn and wheat, and that the
duty of supplying ourselves with manufactured
products should be committed to other nations
with aptitude for manufacture.
How were those aptitudes acquired ?
How aptitudés may be developed.—For
five centuries England protected her industries,
both by heavy tariff charges and rigid prohibi-
may also be acquired.
tory enactments, and when ready to become the
workshop of the world her statesmen declared
that she had “aptitude” for manufactures.
There was a time, long before England asserted
such “aptitude,” when the weavers of Flanders
made all the woolen cloth of the world—England,
in the absence of “home manufactures,” supply-
ing them with her proportion of the wool. Flan-
ders was then credited with aptitude for weaving.
But the English people understood the importance
of industrial development. They knew that apti-
tudes depended largely on conditions and training.
They adopted the policy of protection, imported
weavers, retained their wool, wove it into cloth
in their own country, and thus developed the
“aptitudes” which now they would lead us to in-
fer are exclusively their own.
Aptitudes undoubtedly may be inherited, but,
as we have seen, under fitting conditions they
It is in our power, and it
should be our duty, to create in this country con-
ditions that will develop every aptitude of which
the human mind and hand are capable. If we
continue unfalteringly the protective policy, it
will be but a short time before our large, alert,
and ingenious population will exhibit all the apti-
tudes now possessed by every nation engaged in
industrial pursuits. -
I will venture the assertion that with a proper
adjustment and wide diversification of industries
the strong, bright, hopeful, and alert people of
this Republic may, in one generation, acquire all
the aptitudes now exhibited by any nation upon
earth. By that I do not mean that protection
may then be dispensed with, for I contend that
the protective policy—the policy which is to re-
sult in keeping in active and vigorous exercise
the best faculties of all our people, in maintain-
ing in equilibrium all their industries and enabling
them to supply all their own wants—must be
continued if this nation is to perpetuate its high
order of manhood. -
Nowhere in the world are there a greater
i variety of aptitudes displayed than in this Re-
public. Even were we lacking in some special
aptitude, that is the one we should hasten to
cultivate. -
According to the free-trade theory, without
the aptitude we should not attempt manufact-
ures; yet without manufactures we can not
*g
12
Secure the aptitude. We can not expect it to
develop by accident. It can only be acquired by
long and patient study in the “schools” of which
I have spoken—the workshops of the country.
England became a great mechanical nation
because of her wealth of minerals, her secure
physical situation, and her strong protective
policy. She had great beds of coal and iron, and
had the men to work them. Shall we, possessing
far greater wealth of minerals and far greater
Security of physical situation, possessing a bound-
less domain and an ingenious and untiring popu-
lation, permit all opportunities of invention and
progress to be confined to Europe? Shall we
contribute nothing to the advančement of man-
kind? Shall we not lead rather than follow?
Shall we content ourselves with the rudimental
industry of agriculture, the industry of Adam,
and depend upon other nations for our mechanical
contrivances?
Rather let it be our aim to develop every
aptitude of our people, so that our country may
through the intelligence, ingenuity, and virtues
of its citizens, continue the work of upbuilding
a great and free nation on this hemisphere from
which the light of a true social science may shed
its rays back upon the fading civilizations of the
older continents, rekindling the torch of hope
and reviving the drooping aspirations of their
peoples.
It would be an extraordinary effect of liberty
and of self-government of which we boast so
much if the intellectual work of the world were
confined exclusively to the people living under
despotic and monarchial governments, and noth-
ing but the least intellectual forms of manual
labor performed in a free and self-governing
republic.
If that is to be the result of republican liberty,
then the other peoples of the world should be in
no haste to change their forms of government.
Civilization and spirituality under a despotism
are better for mankind than the freedom and
ignorance of the aborigines. If the price of
liberty is to be the loss of skill in the arts which
elevate and ennoble humanity, better that liberty
should die in order that men may live.
If the results of the Declaration of Indepen-
dence are to be that the work which exercises
and develops the noblest faculties of man, the
work which combines the labors of hand and
brain, shall acquire increasing vigor and pleni-
tude under the so-called “effete” governments
of the older continents, and only the unskilled, i
unintellectual, and unprogressive labor is to be
the characteristic of this Republic, the philoso-
phers of the future will be at a loss to attach to
republican freedom the importance claimed for
it by the literature of the present. Thus Macau-
lay's famed New Zealander, instead of Surveying
the ruins of London from its celebrated bridge,
may sit astride the fallen and forgotten Statue
of Liberty in New York Harbor and sweep the
horizon in vain for proof to support the aver-
ments of historians that civilization had once
found lodgment on Manhattan Island.
Origin of free trade.-The free traders
and their allies, the “revenue reformers,” aver
that a protective policy is an injury to our
people.
Two powerful classes have contributed largely
to the dissemination of this belief. One, as would
naturally be expected, comprises the European
manufacturers, who see great profit to them-
selves in a possible monopoly of our market for
the sale of their wares. The other is composed
of the great variety of non-producers of Europe,
the respectable idlers, the most powerful and in-
fluential of whom are the titled aristocracy, the
annuitants and income classes. Their only re-
lation to the state is as consumers, and they are
naturally zealous in their own behalf.
Living largely on rents of houses and lands,
on unearned pensions from the Government, and
the interests on bonds and mortgages, they add
nothing to the material wealth of the state.
Producing nothing themselves, they regard the
consumer and producer as different individuals,
and hence talk of the producer “robbing” the
consumer. They have no knowledge of condi-
tions such as exist in this country, where prac-
tically all the people are both producers and
consumers, and where the general sentiment is
that he who consumes without producing is not
entitled to especial consideration in the enact-
ment of economic statutes.
The great body of the land of Europe being
held out of reach, the masses have not, as have
our workmen, the alternative afforded by a re-
sort to agriculture. However low the wages of
o 13
labor may be pressed, they must be accepted.
The laborer, being between the upper and the
nether mill-stone, is in no condition to dictate
terms. Two powerful classes combine to despoil
him of a portion of the products of his labor.
The prototype of the free-trader, the
freebooterſ—In the accomplishment of this
purpose the free-trader is but following, by a
more humane method, the precedent set by his
prototype, the freebooter.
The object of the freebooter was to get wealth
without producing it, to get that which some-
body else had earned, but to get it without giving
an equivalent.
In the early history of human endeavor large
wealth could be obtained only by direct and open
plunder, by undisguised Spoliation.
This was a spoliation of the “producers” for
the benefit of men who could not produce, and
who despised the arts that lead to production.
It frequently culminated in the enslavement of
the weak by the strong. Whenever circum-
stances gave prospect of constant employment
to labor, the laborer was enslaved and large
bodies of men, the real “producers” of the
world, were held in subjection and hired out for
wages paid to their masters, the “consumers,”
that they might contribute to the ease and
wealth of those “consumers” who themselves
could produce nothing. Thus we find that of
a population of 120,000,000, constituting the
Roman Empire, 60,000,000 were slaves, almost
all of these being of the white race.
Whenever the conditions were unfavorable for
actual enslavement, the “consumer” and his re-
tainers contented themselves with making period-
ical raids upon the producer and in a night de-
priving him of the hard earnings of years of
industry. The “free-trader” of that period was
the warrior on land and the pirate at Sea.
Whether in the midnight raid of robber bands,
the more warlike conflicts of tribes, or the San-
guinary encounters of armies, the ultimate object
always was—unearned wealth. The opulence of
the Orient excited the envy of Alexander, whose
legions reveled in their ill-gotten booty. The
riches of Gaul aroused the avarice of Caesar, and
the spoils of the provinces, transported to Rome,
long supplied her proletariat with “bread and
circuses.” The empire, in its turn, was sacked
by the barbarians. When, at its fall, Society
reverted to its earlier forms, the deadly foray and
the predatory incursion became again, through-
out Europe, leading instruments for the dis-
tribution of wealth among those who had not
earned it.
On the decline of feudalism and the rise of the
modern nationalities, the pillage for the benefit
of the aristocratic “consumer” was continued
under a new guise. The work was invested with
an air of philanthropy. Barbarians were to be
enlightened, and it became the self-imposed duty
of the leading nations to secure, at the mouth of
the cannon, the privileges of “freedom” of trade
with those barbarians. Civilization had to be
extended, and, with the aid of the resources of
civilization, the terms of the trade were fixed by
the one side for the “benefit” of both. These
resources, however, did not consist exclusively
of implements of warfare.
The aid of literature was invoked, and the
world was flooded with books, which were trans-
lated into the principal languages, attempting to
prove that free trade was the panacea for all
economic ills. In the progress of time, having
exhausted both physical and mental force in com-
pelling or persuading the people of the world
to accept “free” trade, and understanding the
importance of money in its influence on the dis-
tribution of wealth, the free-trade “consumér”
Secured a further share of the earnings of the
producer by a skillful manipulation of the volume
of money in the leading countries of the world
and by depriving of the money function the older,
more useful, and more universal of the precious
metals.
The basis of free trade.—Free trade is
based essentially on the idea, express or implied,
that in trading with other nations we can cheat
them in the trade—that in exchanging with
foreigners we can Secure an advantage over
them, that in return for the products of one
days's work of ours we can get the product of a
day and a half of theirs.
This is a delusive hope. With freedom of
trade, equalization would soon take place. All
the wealth we can have is what we produce, or
its equivalent. In obtaining the equivalent, let
us obtain it of our own people. Thus, to the ex.
------ - I4
tent that we are consumers of the things they
make, we shall give them employment; and, in
return, to the extent that they are consumers of
the things we make will they give us employ-
ment, thereby insuring an equilibrium in our
industries, developing at home skillful artisans
in every branch of industry, and dotting the
country over with manufacturing establishments.
Free trade would banish those establishments
and would exchange skilled mechanics for cheap
door-knobs or cheap cutlery. It would reject
the knowledge of useful arts in order to save for
the moment a few cents a yard on woolen cloth
or cotton-ties, or a few cents a pound on tin-
plates. Protection secures the arts and protects
the artists. It transforms ignorance into knowl-
edge, indifference into zeal, inertia into activity,
impotence into power.
Free trade is based essentially on the idea of
landed aristocracy—on the idea that the land of
the country is the property, not of independent
farmers, owning and working their own land,
but of allodial lords, owning practically the com-
munity in which they live. It has its foundation
in that form of social development of which
slavery was a type, which takes no thought of the
man who works with his hands. It implies that,
as in Europe, there shall eventually be in this
country no proprietary farmers, but that a few
great proprietors who disdain work shall monopo-
lize the land. It implies that when a few barons
shall hold in large tracts the land of the country
they, as lords of the soil, can ordain that what
they call “their” country shall forever remain
in the primitive occupation of agriculture.
These baronial owners can say to all comers,
“We own all this land; this country is ours;
you can starve unless you accept work on Our
terms.
of occupations. We do not wish you to aspire.
What have you to do with aspiration ? We can
buy all the manufactured goods we want from
the cheap labor of Europe or Asia. If you open
stores or set up workshops you must compete
with the cheapness of Europe and the squalor of
the Hindoos and Chinese; you are entitled to no
protection as against them. They have as good
a right to sell their wares here as you have.”
But in the same breath the landed proprietor
will add, “Of course you people are expected to
We do not wish you to have a variety
shoulder your guns and with your lives defend
and protect us and our property in case those
same Europeans or Chinese invade the country
and endanger our ownership of this property.”
They will recognize the propriety and even the
duty of protecting the country from an armed
invasion, while they will contemplate with seren-
ity the prospect of an industrial invasion, which
might be more disastrous. The principal use of
conquered territory in this age is to secure a
market for the industries of the conqueror.
The opponents of the protective system claim
that under their policy no law would prevent us
from doing our own work. But they are unable
to deny that conditions are as powerful as law,
and that where conditions render it impossible
for us to compete in our own market with foreign
manufacturers, it is idle to boast of our freedom
under the law to enter into any business which
we may desire.
Should we adopt a free-trade policy?—
The question whether free trade should receive
the Sanction of our people depends altogether
upon the view we take of the wants of the
nation. If all that is to be done is to satisfy
the barest physical wants, if we care only to
maintain our workmen on the lowest fare, dress
them in the poorest clothes, house them in the
meanest buildings, and deprive them of the hope
of all intellectual advancement, then let us adopt
an economic policy which will result in the
destruction of our industries.
If, on the other hand, we wish to unfold and
strengthen every energy of our people—cultivate
our material resources, preserve our national
strength and impregnability; if we are to main-
tain our place in the Vanguard of the nations;
if we are to seek the satisfaction of intellectual
and spiritual needs; if we yearn after the higher
life, after the broadest development; if we aspire
to the noblest use of our best faculties; then we
must look for these, not in free trade, nor in any
form of foreign trade, but in the development
within our own country of the wide and varied
catalogue of all the industries, all the sciences,
all the arts that contribute to the happiness of
II12 Il.
In none of this work would free trade aid or
encourage us. On the contrary , its motto is to
buy wherever it may buy cheapes; to-day, with-
15
out regard to the future, or to the country in
which it buys. It is distinctly founded on in-
dividual selfishness. It looks only to the tem-
porary advantage of the individual, and takes no
thought for the future or for the community.
The protective policy is founded on a higher form
of selfishness, the selfishness of the nation, which
is but another name for patriotism.
Free trade brings the watch, protection brings
the watchmaker; free trade brings the machine,
protection the machinist; free trade brings the
engine, protection the engineer. Given the men,
we can not lack the machines. Having the art,
we shall not want for the article. Possessing
the producer, we shall not want for the product.
Between them who shall hesitate as to which is
the more valuable to the country 2 Men found
communities, machines do not; men constitute a
Society, machines do not.
The policy of free trade involves a contradic-
tion not readily reconcilable with the genesis of
the Republic. Among the causes that led to the
Declaration of Independence was the fact that
Great Britain would not permit us to do our own
work. No source of difference between the
mother country and the colonies was more offen-
sive and repugnant to the Sense of reason, than
the denial of the right to the colonists to set up
their own manufactures.
All the force of law and of official discourage-
ment was brought to bear to repress the spirit
of enterprise on the new continent, and to force
its people to remain forever in a condition no
less of industrial than of political dependence
upon the mother country. It was our “market”
rather than our country that Great Britain prized.
Our voluntary adoption of an economic policy
which would now give that market to Great
Britain or any other country, would defeat one
of the principal objects of the founders of the
Republic.
But it is not alone in an economic aspect that
free trade would be an injury to this country.
If we consider its effects upon our social life, we
shall find it no less injurious. Communities are
composed of men and women. Free trade sepa-
rates by thousands of miles the sons of the
farmer and the daughters of the watchmaker, of
the machinist, of the book-keeper. It keeps the
farmer's daughters unacquainted with the sturdy
and honorable young men who should be learning
in American, rather than European, workshops
the various mechanical trades, which would yield
them an income sufficient to enable them to enter
with prudence into the marriage relation.
Not the least of the achievements of a COn-
tinued protective policy will be that, by encour-
aging the widest development of the arts and
manufactures and the formation of communities
in proximity to the farmer's home, the law of
natural Selection in the most important incident
of human life may have opportunity to assert
itself. It will render it unnecessary for the
farmer to send his daughters from home to get
the advantages of Society; it will bring society
to them. The varying tastes, preferences, and
affinities which sanctify the marriage state will
thus have opportunity of finding expression. All
temperaments, all dispositions, all shades of
character will be observable in such communities,
and ample opportunity for choice will be afforded
to each sex. This will in a very large degree
promote the progress and happiness of society.
Free trade discredited.—Not only is free
trade delusive as a theory, it is discredited as a
fact. The tendency of the time is in the other
direction. By protective tariffs the nations of
Europe are developing home industries.
For manufactured products France is no longer
tributary to England, as she was thirty years
ago. Instead, she is a competitor of England.
The exports of French manufactured goods are
now valued at nearly one-half those of Great
Britain, and two-thirds of the amount consist of
textile fabrics. In agriculture, the French peo-
ple, by the greater intensity of cultivation char-
acteristic of small farms, are producing 50 to 60
bushels of wheat to the acre.
Germany, since the Franco-Prussian war, has
by means of a protective tariff effected a revolu-
tion in her industrial system. She has improved
and renewed her machinery in accordance with
the latest developments of inventive genius. She
begins her industrial career at a point at which
Britain has arrived only after centuries of en-
deavor. Twenty years ago Germany was one of
the best customers of Britain; to-day she is
rapidly supplying her own wants. It is but
thirty years since cotton spinning and weaving
in Germany were unorganized and insignificant
16
house industries, and the exports of cotton goods
from all the German states but 830 tons. In
1884 Germany's exports of such goods were
25,000 tons. In the nine years from 1875 to
1884 she doubled the number of spindles in her
woolen factories, and in the last mentioned year
exported 21,000 tons of woolen goods.
In 1879 Russia adopted a protective policy,
increasing her tariff dues nearly 30 per cent.,
enormously decreasing her imports of British
manufactures and correspondingly augmenting
her own. Nearly all the steel and three-quarters
of the iron now used in that country are of home
manufacture. In the ten years ending 1884 the
exports of British produce to Russia declined
from $44,000,000 to $25,000,000 per annum.
Italy, too, has now her protective tariff. Not-
withstanding lack of fuel, her home industries
are rapidly developing. Her spindles, that in
1877 were but 1,000,000, had by 1885 increased
to 1,800,000. Her imports of coal furnish an
index to her augmented manufacturing power.
For 1871 those imports amounted to 780,000
tons; for 1884 to 3,000,000 tons.
Austria and Hungary are participating in the
race for home production, not only by protective
tariffs, but by laws which exempt from taxation
for a period of years such industries as may be
established.
Thus all the leading countries of the world are
waking up to the fact that they should be doing
their own work, producing for their own people,
setting their own houses in order. All begin to see
the permanent value and the enduring national
security furnished by an integrated variety of
occupations. England itself is in throes of
doubt, and discussing the virtues of “fair trade.”
Even Spain, the somnolent, is waking up.
The people of this country have in their own
history an illustration of the blighting effects of
a policy which disregards diversification of in-
dustries.
The effect on the Southern States of
the absence of diversified industries.—
The great body of the opponents of a protective
policy are found in the States of the South.
Until lately they had no experienoe with labor,
except such as they owned, and such as they
could not, with safety to the institution of
slavery, permit to become intelligent or aspiring.
The workman of the South, unlike him of the
North, does not belong to the creative race. He
forms the base only, the lowest stratum of the
industrial system. He is under the feet of the
dominating caste.
He is not regarded as a component part of the
Government, or as a factor in the support of its
institutions. He is simply a hereditary laborer
doomed, as the people of the South believe, for-
ever to remain a laborer, and forever to remain
in a condition little above that of slavery.
The Southern people took no interest in the
advancement or the intellectual achievement of .
their working class. They were willing to live
on the reward of the rudimental industry of
agriculture, and to be surrounded by a laboring
class who should indulge no hope of advance-
ment. As was to be expected, in the presence
of the slave, with whom manual labor was identi-
fied, such labor by free men was discouraged and
despised. Naturally, therefore, the South favored
and now favors a policy which would enable its
people to exchange the products of their cheap
laborers for the products of the cheapest laborers
to be found elsewhere on the globe.
In other sections of the country the conditions
are wholly different. The workmen are in con-
trol. They do the voting; they direct the policies
of the Government. Did the Southern people
have in their working population so aspiring, self-
reliant, intelligent, and aggressive an element as
the working population of the North they would
look at the question differently; nor would this
result be with them altogether a matter of choice.
The workmen would demand protection and insist
upon receiving it.
The labor of the North forms at once the
foundation and the superstructure, the pillar and
the dome, of its civilization. The prosperity of
that section means the prosperity of its work-
men. With very few exceptions, the men of the
North are all workmen. To degrade and depress
them means to degrade and depress the entire
body of the people. This can not be done. A
policy that might be tolerable where the lowest
order of laborers was employed would not be con-
sistent with the peace, order, or well-being of a
society in which the workingmen were of a high
order and comprised the vast majority of the
community in numbers and force,
17
The gauge and measure of civilization is the
extent to which man subordinates to his will the
latent forces of the universe. To that sublime
work the States of the South contributed little
or nothing. -
As an illustration of this I will cite the ratio
between the number of the white population and
the number of patents that in the year 1870 were
issued to the citizens of a number of the States
of the South. For purposes of comparison I cite
also the like figures for a number of States of
the North. In order to make the comparison
just, I do not include in the figures\of population
the recently manumitted class:
Table showing the ratio between the number of the white population and the number of patents
issued to citizens of the States named during the year 1870. *~
States of the South. Persons. States of the North. Persons.
Alabama, 1 patent to.............................. 14,483 || Connecticut, 1 patent to......................... , 806
Arkansas, 1 patent to............................. 32,919 || Illinois, 1 patent to 2,916
* Georgia, † patent to 7,888 || Indiana, 1 patent to 4,277
Mississippi, 1 patent to........... ---------------- 7,658 || Massachusetts, 1 patent to...................... 1,051
North Carolina, 1 patent to.................... 12,565 || New Hampshire, 1 patent to.......... ...----. 3,121
South Carolina, 1 patent to.................... 8,376 || New Jersey, 1 patent to........................ 1,827
Texas, 1 patent to 11,764 || New York, 1 patent to ........• - - - - - - - - - - - - - - - - - 1,450
Virginia, 1 patent to............................... 6,473 || Pennsylvania, 1 patient to ..................... 2,284
The most instructive lesson of American his-
tory—indeed, the most impressive economic les-
son of all history—is that afforded in a great
crisis by the industrial impotence of our Southern
States, resulting from their persistent neglect of
the mechanical arts and of diversifiéd industries.
When the South declared war it was found
that its people could create nothing of practical
utility. Their orators and stump-speakers, who
led them into the war, could spin “yarns,” but
not of cotton; they could weave sentences, but
not woolens. They could make speeches, but
could not make engines. They could make
verses, but not vestments; they could talk learn-
edly of the rights of man, but could not supply
the wants of man. They could write flaming
essays on courage, but could not make a gun or
canister of powder. They could organize armies,
but not industries. They could inspire their
troops with enthusiasm, but could not supply
them with blankets. With all their cotton they
could not make a handkerchief; with quantities
of sheep and all natural facilities for producing
wool and turning it into cloth, they could not
make a coat. With every opportunity for the
establishment of manufactures, they could not
make a needle, a knife, a bayonet, or a button.
With ample natural resources, and with oppor-
tunities equal to those of the North, the people
of the South, looking only to the moment and
*
never to the morrow, permitted iron, coal, and
other valuable minerals in illimitable quantities
to lie inert and useless in their fields. They
could produce nothing but the raw materials of
agriculture, and but little variety even of those.
Theirs was a civilization that “disdained to be.
useful, and was content to be stationary.”
When, therefore, in the hour of their utmost
need, they wanted clothing, arms, munitions, and
means of transportation, they were without fac-
tories, foundries, mills, machine-shops, railroads,
tools, and skilled workmen. Had it not been for
their slaves, they would have been without food.
Their soldiers suffered for want of proper cloth-
ing, some of them even dying of cold; and many,
especially toward the close of the war, wearing
uniforms made from rag carpet. Like helpless
aborigines, they were obliged to look to their
enemy for every resource of warfare. --
But this was not because the people of the
South were wanting in ability. It was not that
they lacked great qualities, not that they were
destitute of the mental and physical character-
istics of the great creative race from which, in
common with the people of the North, they had
sprung and to which they belong. In every de-
partment of effort to which they had directed .
attention, they had displayed all the ability char-
acteristic of that race. They had the same
innate qualities which all people of that race
18
possess; but the greatest of those qualities they
hever exercised. The creative and inventive
făculties were never brought forth.
. . The lack of diversified industries is destruc-
tive in time of war, but, like the “dry rot,” it is
none the less operative in time of peace and
none the less certain to culminate in disaster.
The fruits of all this the leaders of the South
have hād ample opportunity to observe; but, with
the fatuity of those who never learn and who
never forget they still cling to the traditions of
the old régime and close their eyes to the
demands of the age and of the future. The
blunder on the part of the South was no less
economic than historic. This fact has not
escaped the eye of discerning men anong its
people. Aº ‘
In a work entitled Destruction and Recon-
struction, by a lieutenant-general, Richard Tay-
lor, of the Confederate army (son of President
Zachary Taylor), that officer, referring to the
effect on the struggle of the lack of diversified
industries in the South, said: §
We suffered less from inferiority of numbers
thani from the waiib of mechanical resources.
Most of the mechanics employed in the South
... were Northern men, and returned to their sec-
tion at the outbreak of the war. The loss of New
Orleans, our only large city, aggravated this
trouble, ait, we had no means, of repairing the
long lines of railway, nor the plant. Even when
tſhbroken by raids, weai, and tear rendered them
inefficient at an early period of the struggle.
This had a more direct influence on the sudden
downfall of the Confederacy than is generally
Supposed.
This pregnant statement of a distinguished
officer is corroborated by Col. Archer Ander-
son in his oration delivered on the occasion of
the late unveiling in Richmond, Va., of the
statute of General Lee. In the course of a
lengthy and eloquent review of the events of the
war, Col. Anderson said: --
Modorri armies, with their elaborate small-
arms, artillery, and ammunition, can not be
maintained without great mechanical appliances.
They can not even be fed without great lines of
railway. And how can railways be operated in a
country closely blockaded, without these samie
manufacturing resources? -
All this was true from 1861 to 1865. At no tiine
during that period did there exist south of Rich-
riiond foundries āind rolling-mills capable, in a
year's work, of supplying the Confederate armies
and railways for three months.
of the war the nucleus of such establishments
could not be found elsewhere in the South. . In
the latter part beginniings had been made, but
the new production of cannon and railway ma-
terial never becaime adequate to the demands of
a campaign. If the requisite machinery could
have been improvised the product could not have
In the first part.
been hästily increased because of the absolute
lack of skilled workmen. The loss of the skilled
artisans of Richmond would have been as fatal
in our poverty as the loss of its mills àrid work-
| shops.
These are the philosophical reflections and
frank admissions of a chosen leader of the “lost
cause.” -.
The trouble with the South, Mr. President,
was that in the case of its working classes the
hand had been at work without the brain; and in
the case of the intellectual classes, the brain
had been at work without the hand. One worked
without thinking, and the other thought without
working.
At the North, on the contrary, the great bulk
of the population had been working, and to-day
continue working, with hand and brain in thi-
son. The exact training of the mechanic of the
North, under conditions which gave ample room
for the expansion of his mind and the develop-
ment of his intellect, had produced a race of
mechanics who, compared with the mechanics
of other countries, must be classed as intellect-
ual athletes. These are the men who win wars
—men of ingenuity, of resource, of high intelli-
gence, of physical strength, of undaunted cour- -
age. Those are the reliance of a nation in war,
each other's best customers in peace. Those
are the men who build up great communities. It
is to those that the people of this country mast
look for their prosperity.
A nation that does not perform its own work
and possess, in the body of its citizenship, the
mental as well as physical force wherewith to
carry on every process of industry, from the pro-
duction of the raw material to the last stage of
its development and transformation, will be the
helpless prey of national marauders. Without
mechanical and manufacturing resources and
capacity, no people cam maintain prosperity of
independence. .”
Any nation that desired the mastership of the
world could achieve supremacy without a blow
if the other nations of the earth would permit
it to become their manufacturer. They would
become powerless against it in war, as they
would be tributary to and dependent upon it in
peace.
The admissions of the distinguished Confeder-
ate chieftains quoted should stand for aii time
as a monumental lesson to the world, that a
19

people, however brave, engaged exclusively in
farming pursuits, can never hope to cope with a
people of the same origin whose diversified vo-
cations enable them indefinitely to feed, clothe,
and move armies, overcome interior intrenched
lines by concentrated systems of railway, and,
through their large plants, organized workshops,
and independent army of skilled artisans, main-
tain supplies of improved and elaborate small-
arms, artillery, and ammunition, and improvise
ingenious and effective weapons and works of
offense and defense. .
The success of the North was due to the wise,
patriotic, and far-sighted policy of its people in
adopting at the outbreak of the war the protec-
tive policy through which a wide diversity of
industries was established and maintained. That
policy they will continue and enlarge. But the
lesson which history teaches of the defeat and
discomfiture of the South seems lost upon the
survivors of the lost cause, whose clamor for a
low tariff would, if successful, lay this whole
country as prostrate and helpless as they found
their own States in 1865.
To whatever words they may give expression
their favorite policy makes them in effect say:
“We care not who makes articles nor where
they are made. We are not interested in the
advancement of labor. We care nothing for
improvements in machinery. We care nothing
for the harmony of development of our national
industries. We want to buy where we can buy
most cheaply at the present moment, whether
that be on this side the ocean or at the other
end of the earth. We heed not the lessons of
the past and reck not of the future. After us,
the deluge l’” g-
It is stated that a leading figure in the Con-
federacy has declared since the war that the
fundamental error of the South, was not to
have remained in the Union long enough to fasten
upon it a policy of absolute free trade with all
the world, which would have starved out our
workmen and closed up our workshops, and then
to have kept them closed for a sufficient length
of time to insure the loss of all the arts. Had
this been done he felt no doubt that the South
would have gained its cause, and I agree with
him, **
There are in this Chamber distinguished and
patriotic Senators, once high in the counsels
both of the cabinet and senate of the “lost
cause,” who can not controvert the bitter con-
fession of the distinguished Confederate officers
I have named; yet with this lesson deeply en-
graved on the mortuary tablet erected to their
late military hero and chief, they persist in de-
manding the establishment throughout the Union
of the same malign economic policy which was
confessedly the prime source of the weakness of
their own States:-
So the struck eagle, stretched upon the plain,
No more through rolling clouds to soar again,
Viewed his own feather on the fatal dart
And wing'd the shaft that quivored in his heart.
Keen were his pangs, but keener far to feel
He nursed the pinion which impelled the steel,
Is a protective tariff constitutional?—
Many distinguished “tariff reformers,” in this
Chamber and out of it, wholly deny the consti-
tutionality of a protective tariff. It is, of course,
not my purpose to enter upon a discussion of
the relations existing between the Constitution
and the tariff. That question has been fully
debated by able lawyers on both sides of the
Chamber. But there is one aspect of it which,
as it seems to me, lies at the foundation of our
existence, as a nation, and which, with propriety,
even a layman may presume to discuss.
It is the inherent right of a nation to defend
its life. The clear-sighted men who draughted
our Constitution needed no instruction in that
regard. In the preamble to that instrument
they declare the purpose of its formation in the
following words:
We, the people of the United States, in ordor to
form a more perfect union, establish justice, in-
sure domestic tranquility, provide for the com-
mon defense, promote the general welfare, and
secure the blessings of liberty to ourselves and
our posterity, do ordain and establish this Con-
stitution for the United States of America.
In Article I, section 8, the Constitution pro-
vides that— º
The Congress shall havo power to lay and col-
lcct taxes, dutics, imposts and excises, to pay the
debts and provide for the common defense and
general welfare of the United States.
What the opponents of a protective tariff
assert is, not that Congress may not levy duties,
but that it has no power to levy duties for the
purpose of protection, or duties that shall be
protective in character.
If Congress has not now the power to levy
20 .*
such duties it never had such power. In that
case the members of the first Congress that met
under the Constitution were surprisingly igno-
rant of the intentions of the framers of that
instrument, for the preamble to the first tariff
bill, passed July 4, 1789, read as follows:
Whereas it is necessary for the support of the
Government, the discharge of the debts of the
United States, and the encouragemcint and pro-
tection of manufacturers that duties he laid on
goods, wares, and merchandise unported
But the utmost conceivable effect that the
highest protective tariff—even a tariff of ex-
clusion—can have in any country is to decree
that the people living in that country shall per-
form their own work. Is it then to be supposed
that the framers of the Constitution intended
that this country should never supply its own
wants—should be forever dependent upon for-
eign countries for the simplest manufactured
articles—nay, for the very instruments with
which to “provide for the common defense?”
Variety of industries necessary to the
National defense.—How, in an inventive age,
is the “common defense” to be provided for?
Shall we accumulate enormous supplies of can-
non and military stores of the kind now most
approved? They would be worthless in a few
years. Shall we build great fleets of armored
vessels which ná gun of to-day may penetrate?
Their armour would be as tin-foil to the cannon
of the future. And if we buy guns and ships of
the most modern pattern, how many shall we
have? For how long a war and how great a war
shall we prepare?
Is it not manifest that the most powerful of
all means for promoting the common defense is
the development and maintenance of the highest
and most varied mechanical and inventive skill
among our people? Had we a sufficient number
of weapons of the lătest design wherewith to
arm every able-bodied man in the United States,
these weapons, in the absence of skilled work-
men and of large manufacturing establishments
constantly at work would, in a short time, be
comparatively worthless. While this country
might possess the article other countries would
possess the art. They would possess not only
great and indispensable plants, but the brainy
and ingenious workman who, as Occasion arose,
- as our own experience has shown, would invent
new weapons of destructive power infinitely
surpassing the oid. The possession of skilled
workmen who can make guns is of far greater
consequence than the possession of the guns
themselves.
But apart from the manufacture of arms, what
more effective instrumentalities can a nation
have of providing for the “common defense”
than citizens who can make structural iron,
erect bridges, construct steam engines, and
build ships of all kinds, including armor-clad ves-
sels of the highest class, and not alone who can
construct all these, but who can invent new and
improved designs in every department?
And if the makers of iron are necessary for
the “common defense,” why not, equally, weavers
of cloth, artificers in leather, in brass, in copper,
in steel, in tin, and in all the other materials of
art and industry 7
The larger the nation the more indispensable
such artisans are to its safety and independence.
They can not be had in large numbers without
the existence of extensive manufacturing estab-
lishments, and even with these, they can not
rely upon constant employment—the indispens-
able prerequisite of skill, and consequently of
invention—without the encouragement and ma-
terial support arising from the supplying of all
the wants of their own country. The workmen
of the country are entitled to the assurance of
that support. With that assurance and that
support we shall have no lack of skilled artisans
upon whom, in these days, fully as much as upon
soldiers in the field, depends the existence of
nations. That assurance and support can not be
extended except by the adoption permanently of
the policy of protection.
{}rowing importance of the mechanic
as a factor in Warfare.—More and more as
time passes will the workman in his shop become
of greater importance than the soldier in the
field. Less and less as invention develops will
success in war depend on the man who holds the
weapon ; more and more on the weapon itself
and on the man who invents and constructs it.
Time was when war consisted of the wielding of
clubs, and success depended wholly on the phys-
ical energy expended in their handling. But
“times change and men change with them.” The
\,
2]
strength of the arm has been transferred to the
finger, and the bullet outdoes the bludgeon.
Power has been shifted from the field to the
factory; from muscle alone to the combination
of muscle and mind. The armies that have not
ãrtisans at their back, that have not the latest
product of the ever-teeming brain and untiring
hand-of the alert and aspiring mechanic, may
look well on paper and on dress-parade, but they
- will not win battles.
In order, then, that we may have, and con-
stantly maintain in the highest degree of efficient
training, a numerous body of men skilled in the
mechanical arts, we must encourage the growth
and development of extensive plants, not in one
direction or department alone, not in one section
of the Union merely, but in all directions and de-
*artments of the arts, and in all sections of our
common country. Such enterprises are not the
spontaneous offerings of nature; they will not
grow while we sleep, nor will they come with
waiting. Neither, for emergencies, can they be
had by act of Congress. **
A large manufacturing plant is not a ready-
made article which, like a piece of real estate,
may be secured on the instant by the expenditure
of sufficient money. A great mechanical organ-
ization is a growth, a development, a result of
evolution. In all new fields of industry, and in
most of the old, it finds its birth in the shop of
the single machine, to which, as business in-
creases there is added a second and a third.
Thus, as the human being arrives at maturity by
the natural growth of each added day, so the
workshop grows, from the smallest to the largest
proportions, by almost imperceptible stages.
But as men can not by taking thought add a
cubit to their stature, neither can they by reso-
lution effect at once that which time alone and
the intelligent adaptation of means to ends can
accomplish.
Even assuming that great plants could, on
emergency, be obtained abroad, we should be
without the skilled workmen to utilize them, and
without the talent to organize or intelligently
direct the work.
Continued work necessary for train-
ing.—Workmen do not acquire skill by reading
books on machinery and homilies on the blessing
of industry. • ‘
In an admirable little work entitled “ſhē
School of Life,” Willian Rounseville Alger says:
A small portion only of the strenuous schooling
of the world is done within academic walls. The
general germs of culture, the elementary prin.
ciples of education, are there disseminated; but
the toughest toil is afterwards done by each stu-
dent in the Special school of his professional call-
ing. The actor studies for the stage, on the stage
the courtier, for the salon, in all parlors; the
lawyer, for the bar, at the bar; the politician, for
the Senate. in the caucus; the physician, for the
sick room, amidst his Fº: the clergyman,
for the pulpit, not less after than before he begins
to preach.
The farmer studies agriculture more effectu-
ally by practical farming than in any bookish
theory. No pedant or dreamer in scholastic halls
pores over his manuscripts and themes with more
intensity and perserverance than the devoted
artist gives to the elements of his designs, to the
features of the landscape, and to the colors on his
canvas. And them what disciplinary process of
tuition and practice do a hundred million laborers
undergo in the dinning school of the mechanic
arts, in whose seats the sturdy ranks stoop and
strike, spin and weave, mold and polish plane
and saw, sift and strain, from dawn to dusk, till
their trades are learned and their tasks are
completed.
Neither can men maintain skill without unin-
terrupted employment, which can be secured
only through the energy, the enterprise, and the
Sound judgment of the employers of labor.
The ability to wisely, kindly, and successfully
Supervise large gatherings of workmen, to place
every man where he will achieve most, and most
willingly, is an indispensable factor in the great
work of upbuilding industries. Foresight and
discretion in management are as necessary as
skill in execution of the details.
Importance of the time contract.—The .
feature which distinguishés the industry of this
age from that of all the past is a feature de-
manding a high order of ability in the manager.
That feature is the time contract. How is it
that the great gatherings of workmen in the
different manufacturing establishments of the
country are kept occupied? Only by means of
contracts made frequently years ahead of com-
plete fulfillment. On the intelligence and fore-
sight with which time contracts are made de-
pends the success or failure of every industrial
enterprise in the country. This intelligence and
foresight are not wholly the work of nature. The
quality of wise leadership—one of the greatest
blessings as well as one of the most indispens-
able needs of labor—depends for the most part
on experience and training. -e
Like the skill of the workman, this experience
and training of the manager can not suddenly
be acquired, nor can the skill or talent of either
workman or manager be maintained without un-
interrupted exercise. How, then, shall unceas-
ing continuity of industry be secured? Only by
securing to our own people through the protec-
tive policy the economic conditions which will
enable them to do all their own work.
Great manufacturing enterprises are not
entered upon without hope of reward. Without
the encouragement of the home market we shall
have neither the great plant, the great workman,
nor the great organizing talent. With the Sup-
port afforded by that market to the founding of
industries of every character, and to their growth
in magnitude and variety, we shall have, and
continue indefinitely to have, all of these.
Our Constitution was framed to meet the
wants of a living and progressive people. It
contemplated the continued political and indus-
rial existence of that people under ever-chang-
ing conditions. Its framers and founders,
though gifted with prescience beyond most men,
knew they could not foresee all the circum-
stances which the future might unfold, and hav-
ing prescribed in general terms the duty and
power of the Legislature, they wisely relegated
to those who might come after them the selection
of the means whereby to give effect to their
purpose.
Who then but those whose intellects are clouded
by party necessity can for a móment doubt that
the ample warrant of the Constitution covers
every means which the wisdom of the people of
the United States may decide to be for the
“common defense and general welfare?”
Foreign trade is not wealth.-The free-
traders attach much importance to foreign trade,
which they regard as a source of great wealth
to the nation.
I deny that the wealth of a country is shown
by the amount of its imports and exports. It is
seen in the every-day manner of life of the
masses of its people. It is seen in the char-
acter and quantity of the food they eat ; in the
quality of the beds they sleep in, of the houses
they live in; in the character of their social life;
in the quality of the education which they give
their children. e
Foreign trade exchanges wealth; it does not
make it. Wealth is not made by exchange, but
by production. Trade produces nothing. It
serves a useful purpose in the distribution of
wealth, but is not itself wealth. Neither can
it make wealth. . If, in the making of a bargain,
one side is cheated, it may be said that the
wealth of the other side has been increased, but
the total sum remains the same. When the
transaction is a fair and even exchange, as, under
the operation of the nrinciple of caveat emptor,
it is bound in the long run to be, nothing is
made by it, and wealth is in no way augmented.
One distinguished Senator on the other side
of the Chamber, the Senator from North Caro-
lina [MR. WANCE], declared in this debate that
foreign commerce was the chief source of the
wealth of the United States. Said he . º
I maintain that neither men nor nations can
grow wealthy except by the sale of their surplus
roducts... A man sells his surplus to his neigh-
bor, a nation sells its surplus to its neighbor;
that is foreign commerce. That which is sold to
its own people is not a surplus. When, therefore,
our foreign commerce is destroyed the chief
source of our national wealth will have perished.
In order, Mr. President, to illustrate this, and
also to show the fallacy of the theory that it is
the “foreignness” of the trade that enriches a
nation, let us suppose a case.
Our trade with Canada for the year 1889
(imports and exports) amounted in round num-
bers, to $100,000,000. That, of course, is
foreign commerce. We therefore derived that
much “wealth” from our trade with Canada in
that year. If the principle enunciated by our
free-trade friends be correct, then Canada
realized an equal amount of “wealth” from the
same trade. Hence the sum of wealth accruing
to the two countries is yearly $200,000,000.
Now, suppose that Canada should be annexed to
the United States and become an integrant por-
tion of the Republic, then, Mr. President, all
this wealth would disappear ! Though the trade
might be greater, it would no longer be evidence
of wealth; for, “when . . our foreign
commerce is destroyed,” says the Senator from
North Carolina, “the chief source of our national
wealth will have perished l’’ --
The principle laid down by the honorabſe Sen-
ator gives a hitherto unsuspected reason for the
determination of his section in 1861 to sever its
connection with the Union. Obviously the pur-
23
pose was to add to the wealth of both North and
South by changing the designation of their trade
relations and calling that “foreign” which be-
fore had been merely “domestic.” Had the
South succeeded, and then had each of its States
in turn seceded from the Confederacy itself,
what an enormous “foreign trade” there would
have been all around! What untold “wealth.”
has been lost by the success of the Union arms I
Large foreign trade an evidence of the
vicious distribution of industries.—No,
Mr. President, the honorable Senator is mistaken.
Foreign trade does not add to the wealth of a
country. On the contrary, except in so far as
it consists of articles inhibited by soil or climate
in one of the countries to the trade, it is evidence
of a vicious distribution of the industries of that
country. If foreign trade decreases by reason
of a people's supplying their own wants, the de-
crease is an evidence of increasing prosperity,
But, in any event, the foreign commerce of
his country is a trifle, a bagatelle, compared
with our magnificent domestic commerce, which,
thanks to our protective tariff, is unexampled
among the nations, whether of the present day
or of all history. In the extent and completeness
of its material resources, and, above all, in the
high spirit and intellectuality of its people, our
country can rely upon itself.
While ship-loads of goods are undoubted evi-
dence of production, I deny that the extent of
foreign commerce is of itself any evidence of
prosperity. wº
As shown by the investigations of the select
parliamentary committee of England, it has
often happened that the foreign commerce of
that country was largest when the times were
hardest, because the people at home were too
poor to buy, and the goods had to be exported in
order to find sale. It is no sign of prosperity
that one's dealings with foreigners increase;
they may increase at the expense of dealings
with one's neighbors. As production increases,
if wages be pressed down, the laborer will be-
come less and less-a consumer, and the articles
he would be glad to buy if he had the money may
have to be sold abroad. Such foreign trade is
no sign, that the country is getting richer, but,
on the contrary, is a sign that its people are
getting poorer.
Foreign trade destroys the equilibrium of a
nation's industries; it leaves them one-sided and
disjointed, and postpones indefinitely the period
of their natural co-ordination,
We are one country and one people, with one
future and one destiny; subject to the same
burdens of taxation, to the same duties and re-
sponsibilities of citizenship, and living on the
highest plane of material civilization ever known
to mankind. As against all the world we must
regard ourselves as one family, between whose
members there exist reciprocal duties which may
not—nay, can not—be overlooked by any with-
out injury to all. }
Our geographical situation, separated as we
are by the fiat of nature from the older forms,
the stagnant conditions, and the imbruting civil-
izations of other continents, warrant us in de-
manding of the intellectual men among us, the
professors and political economists of the country
themselves sharers of the national prosperity,
that they shall investigate the new conditions of
humanity, that they shall take into account the
manhood and the spirituality of a people. Our
workmen have a right to demand of the profes-
sors of polite learning that they shall study, not
merely books of literature, but the book of
labor, and that they shall cease their attempts
to adjust the conditions of the free citizens of
this country to the conditions, infinitely lower,
which prevail in other countries.
The trifling character of our foreign, compared
with our domestic trade may be gathered from
a few figures. The Bureau of Statistics esti-
mates the total production of the United States
in 1880 as worth $10,000,000,000, or $200 per
capita of the population, and that of this $200
the value exported was $17, or 8% per cent., the
value consumed at home, $183, or 91% per cent.
Is it worth while to trouble ourselves about such
a “foreign trade” when our home trade offers
to our farmers; manufacturers, and merchants
the richest market in the world?
The abandonment of our protective policy for
the purpose"of Securing foreign trade would be
to save at the spigot and lose at the bung.
England having already lost much of her
foreign market, through the adoption of pro-
tective policies by Germany; France, Italy and
Russia, is filled with apprehension that by
24
the bill under consideration her greatest market
will be taken from her. This is made manifest
by the tone of her public press and by the loud
protests which have come to us from the manu-
facturing centres of that coyntry.
By reason of the want of equilibrium in her
own industries, her agriculturists being unable
to furnish the food necessary for the support of
-
her manufactures, England's position is such that
at any moment the laws of a foreign country
might force a deportation of large numbers of
her people. What a helpless and pitiful attitude
for a great nation 1
Free trade tends' to equalization of
Conditions.—The tendency of all free and un-
restricted exchange is to equalize the conditions
of the parties engaged in it.
It will be admitted that under like conditions
of skill and capital, persons engaged in the same
trade and occupying adjoining houses can not do
business except on. substantially equal terms.
That is to say, they must pay substantially the
same wages and receive substantially the same
prices for their products. If they are making
and selling shoes, they can not materially differ
in the scale of wages they pay to workmen of
hike skill, or the prices they charge for shoes of
the same quality. What is true of persons thus
circumstanced is equally true of persons across
the street similarly circumstanced. The rule
that holds good for men trading on opposite sides
of the street will-hold good for men trading on
opposite banks of a river, and, by a flarity of
reasoning (making due allowance for time), to
men on opposite shores of the ocean. The
tendency is constantly and irresistibly toward
equalization. º
This is but the operation on trade and industry
of a principle universal in its application. Take
two reservoirs in which the water is of unequal
height; connect them by a conduit, and at once
the process of equalization sets in. How soon
it will be completed, how far the water will fall
in the one and rise in the other depends on the
relative superficial areas of the reservoirs, on
the capacity of the conduit, and its freedom from
obstruction. If the low-water reservoir be much
the larger of the two its rise will be slow and
relatively slight, while the fall of the other will
be rapid and great.
Again, take two rooms of varying degrees of
temperature, and connect them by opening a
communicating door. It is clear that as soon as
Communication is established the colder of the
rooms will begin to warm, while the warmer will
begin to cool. This process will continue till
equalization is reached, until both rooms are of
practically the same temperature. But, mani-
festly, if the cold room be much larger than the
warm, the temperature of the smaller room will
be sensibly diminished, while that of the larger
will not be appreciably increased.
Throughout the entire material world this pro-
cess of equalization is at work. Even when un-
observed, or observed only by the rigid scrutiny
of science, it pursues its unceasing course. By
imperceptible stages the mountains are being
leveled and the valleys upraised. Equally in the
moral world is the operation of the same law to
be observed. It is an old adage that “evil com-
munications corrupt good manners.” We can
not deny that the tone of virtue is impaired by
habitual contact with vice, even though we mnst
admit that there is hope for the vicious if sub-
jected to the constant association of the good.
The processes of leveling up and leveling down
are but compliments of each other.
My contention, then, is that in any two coun-
tries engaged in mutual interchange of commodi-
ties, according as wages approach a level common
to both, the conditions of life in both become
gradually adjusted to the new line of wages until
those conditions reach a stage at which they are
on a level. *
It is wain, therefore, for a nation possessing a
high order of workmen to attempt to benefit
itself by trading with a “cheap” nation. If it
persists in doing so, the inevitable result, must
be that in time both nations will be equally
cheap. Whoever insists on having cheap labor
from others will, in the end, find that in the pro-
cess of cheapening the labor of others his own
labor has been cheapened in precisely the same
proportion. . . . .
International freedom of trade—inter-
national leveling.—International freedom of
trade is but a process of international leveling.
Lay down the connecting pipe of perfect freedom
of trade between any two nations, and instantly
25
the equalizing process begins. The nation hav-
ing the higher average conditions will level down,
while that having the lower will level up. How
soon an equilibrium may be estáblished will de-
pend on the degree of divergence between their
conditions and the disproportion in the numbers
of their inhabitants. If the country of the
higher level have the smaller population it will
suffer a serious decline, while that of the lower
lèvel, because of its more numerous population,
will not experience any material advance.
But the law, like that of gravitation, is irre-
sistible. Running along the line of least resist-
ance, equalization will more quickly take place
with people of our own race, especially those
with whom we are in touch, or with whose cus-
toms our customs correspond, than with people
of a different race, or those at a greater distance,
or of greatly different customs. So will it assert
itself more quickly between ourselves and foreign
peoples speaking our own language than with
those speaking other languages. As affecting
two or more countries equidistant from us, the
tendency to equalization is more immediately felt
between ourselves and those with which we have
readiest facilities of communication than those
with which communication is less ready.
The more we cultivate foreign commerce the
more numerously do we lay down and keep open
pipes of intercommunication between the reser-
voirs of industrial and social life characteristic
of our own country and of the countries with
which that commerce is conducted. This can
only result in lowering greatly the level of pros-
perity of our people, while, owing to the much
larger population of other continents, not greatly
elevating the level of theirs,
We are therefore losing valuable time in at-
tempting to acquire wealth or prosperity by
mere trade and traffic with other countries—by
exchanging with people of lower conditions things
which we can make and should make for our-
selves. In the end, the cheapest way for us to
get an article is to produce it ourselves, under
conditions of the most advanced scientific devel-
opment and skill. Any country that trades at
long range with another for articles which it
could produce for itself, denies itself the acquire-
ment and possession of the art and Science which
the other country possesses; that is to say, it
deprives its people of the opportunity to acquire .
and maintain the skill necessary to produce the
articles that are obtained abroad.
The true rule is that the people of the country
should produce for themselves all things that re-
quire of them no greater expenditure of physical
and mental force than must be expended by the
people of other countries in the production of
the same things. º
Even were equalization to be established be-
tween this country and foreign countries on the
basis of present conditions, how are we to know
that that range of equalization is to continue?
How are we to know that the exploiters of
foreign labor will not force still lower the wages
and conditions of their workmen in order to
secure for themselves a continuing advantage
over us? We know how difficult and undesirable
it is to reduce labor in this country; it may not
be so difficult to reduce it abroad. Our laborer
can go to the land; the foreign laborer can not.
With the slightest hope of success held out, the
foreign manufacturers would make a desperate
struggle to secure our markets, and, when
secured, to keep them. To accomplish their
purpose they would reduce to any desired level
the wages of their laborers; ours would submit
to no serious reduction without a struggle that
would convulse society. CP
To set in motion the international equalizing .
process all that needs to be done is to destroy the
tariff wall and lay down the connecting pipe of
freedom of trade with foreign countries. Equali-
zation must follow, as the night the day. From
that time onward our prosperity will continue
falling until it reaches the level of the countries
with which we trade.
Should not our people equalize with
one another, in preference to equalizing
with foreign peoples?—The law of equaliza-
tion being in constant operation among the peo-
ple of the United States themselves, the question
at issue between the free-trader and the pro-
tectionist is whether our people should be satis-
fied to equalize with one another in their own
country, where average conditions are high, ând
favorable to progress and prosperity, or should
equalize with the people of foreign countries, of
lower grades of living, whom they can not in-
26
fluence and with whom they can not co-operate.
Is it not manifest that the prosperous and well-
paid people of this country had better trade and
equalize with one another than with the under-
paid people of other countries?
The only thing that now restrains a tendency
to equalization between this country and the
countries of Europe is the tariff wall which we
have erected. Were it not for this the cheap
products of foreign factories would flood our
markets, would destroy our workshops—those
greatest of all our schools. We expend millions
of dollars annually for the elementary education
of our young men—an education that merely
prepares them to enter these great schools of
life, in which they continue their studies. No
one doubts that we should provide liberally for
our public schools. The great workshops of the
country, filled with deft, thoughtful, and studious
young men, are in the true sense an extension
of the public schools—they constitute advanced
grades—in which the students not only pay for
their own tuition, but pay back to the country
much more than was expended on their elemen-
tary education. *
Without those workshops and workmen we
should soon find purselves reduced to the neces-
sity of exchanging a large amount of the raw
‘material of our soil for a very small quantity of
the finished product of foreign factories. It
would be discovered when too late that the work
of supplying the wants of our own people, a peo-
ple that earns more and spends more than any
other people on earth; had been bartered away
for the poor privilege of supplying the wants of
, the squalid and poorly paid inhabitants of other
continents.
England very well understands this principle
of equalization. When she looks toward France
and Germany she wants “fair” trade, which
means protection, because she knows that in
dealing with those countries her people would
have to equalize downward. When she looks
toward the United States she wants “free”
trade, because she knows that in dealing with us
they would be equalizing upward.
I maintain and repeat that free trade between
countries compels eventual equalization in the
conditions of the people of those countries. To
accomplish this may take a longer or shorter
time, according to the circumstances of each
case, but the process begins at once. -
If it be desirable that the aspiring workmen
of this country shall maintain their present grade
of living, and shall not be pressed down to the
condition of the ill-fed and ill-paid workmen of
other lands, then all idea of a low-tariff policy
and of a policy of international free trade must
be abandoned, and the tariff wall must be main-
tained sufficiently high to exclude all articles
whose manufacture or production here would
require no greater expenditnre of mental or
physical force than must be expended in their
production elsewhere.
The tariff a natural, not an artificial,
wall.—A tarift upon imports, instead of being
an artificial creation, is, in my judgment, the
natural and proper thing for a nation. Free
foreign trade is the artificial thing. A nation
must be regarded as a family, all of whose mem-
bers should stand together. As between the
members of that family, undoubtedly, unre-
stricted trade is the natural condition, because
equalization between them is the condition sug-
gested by nature and by the mutual interests of
the members of the national family. Any ad-
vantage given to one member of that family over
another would be unnatural and intolerable, but
to deny to strangers benefits that we might con-
fer on members of our own family would not be
unnatural. On the contrary, it would be in
strict conformity with nature. The same law
should govern the national family.
One of the highest duties of Government is the
adoption of such economic policy as may en-
courage and develop every industry to which the
soil and climate of the country are adapted, and,
when established, to preserve and protect such
industries from destructive foreign competition.
Industries which, owing to climatic or other in-
superable barriers, it would be manifestly impos-
sible to develop should not be attempted, or, if
foolishly attempted, should not be encouraged or
protected. I should not think of raising bananas
under glass, nor encourage an attempt to plant
in this country the India-rubber tree, nor to
develop a tea or coffee plantation—at least not
with our present information regarding the prob-
abilities of success in the growth of tea and
coffee in the United States. But I lay this down
27
as the correct and fundamental idea of a tariſt:
That whenever a given degree of mental and
physical force exerted in this country will accom-
plish results equal to those accomplished by an
equal degree of such force exerted in any other
country, our tariff charge can not be too high.
With that principle in practical operation, the
compensation for labor would be regulated, not
by competition between our workmen and those
of lower forms of civilization, but by the natural
and unrestricted competition among workmen
wholly within the borders of our own country,
who are partakers of and contributors to the
same civilization, who are the support and de-
fense of our institutions and are prepared to
sustain with their lives the perpetuity of our
Government. .
The natural wage.—I maintain that the
natural wage of every man—the amount to which
he is fairly entitled—is the amount he can earn
in free and unrestricted competition in his own
country with men who are subject to the same
laws and responsibilities, accustomed to the same
manner and standard of living.
To subject men to any keener competition than
this or to exact a lower standard of wages than
would result from the operation of that principle
would be substantially to declare the ultimate
and fundamental standard of wages for the world
at large to be that rate at which the least skilled
workmen of the lowest civilization will consent
to work and procreate. The American workman
will never accept such a standard, and he never
should do so. He will not consent to be pressed
down into the penury and squalor to which the
laborers of other lands are subjected and with
which, in the main, they are contented.
It is much better to do justice at the outset—
to concede that the nation is one great family,
and that no member of that family has a moral
right to supply his wants with a cheaper work-
man than his own country aſfords. A country
that will employ cheap labor will find that it re-
acts on those who employ it, and that, in the long
run, instead of a profit, they will experience a
loss by the operation. Our workmen are entitled
to the control of our markets for the product of
their industry. They pay the taxes; they con-
stitute the people. It is right that they should
refuse to be subjected to the barbarous competi-
tion of people who are living under the shadow
of standing armies, and who, through ages of
oppression, have become accustomed to a grade
of existence that to our people would make life
not worth living.
There is no reason whatever why every man
in the United States should not be willing to pay
such rates of wages as shall obtain by the free
and unrestricted competition of all workmen in
his own country. The compensation which he
receives for his own services in whatever occu-
pation he may be employed—and there are few
of our people who do not work—is based on the
average wages of his own community. He is not
entitled to get other men's labor at any cheaper
rate, in proportion to value of service, than he
charges for his own; and this is what an adequate
tariff justly prevents him from doing.
Under such tariff we are sustaining the condi-
tions of life to which our people are accustomed.
At the same time we are creating new comforts
and inventing new devices by which human wants
may be supplied with less of human sacrifice.
Nor under it can we be in any danger of losing
the benefit of such inventions as may be made in
other lands. Science and invention are great
travelers, and with the maintenance of such
economic policy as may keep at a high level the
conditions of all our people our country will
always attract men of choicest skill in every de-
partment of the arts.
The condition of our people being universally
acknowledged to be superior to that of any other
people on the globe, the tariff wall is necessary
to protect them from the squalor and misery pre-
wailing elsewhere. If this be a Chinese wall it is
only so because it walls out the poverty of less
favored countries and walls in the prosperity of
the United States of America.
Is the tariff a robbery 7–The free-traders
and revenue reformers assert that the tariff is a
“robbery.”
Can it be a “robbery” of any one to secure to
the people of this country the opportunity to
supply our national wants by the hands of our
own countrymen? That is all that the highest
conceivable tariff can secure.
In times of armed conflict our citizens are re-
quired to leave their homes and families to take
up arms, and at the risk of their lives defend the
28 \
Country against armed invasion. Why should
not the country in time of peace protect the
labor of those men from an industrial invasion
no less destructive?
If the tariff be a “robbery,” it is first to be
observed that all classes of people, the robbed
as well as the robbing, are better fed, better
clothed, and better housed than the people of
any other country in the world. That is the
crucial test of economical policies.
It is undeniable that the most perfect suiting
of occupations to the various aptitudes of all the
members of the community will be produced by
the carrying on of the largest variety of in-
dustries.
Is it not then the duty of a country to main-
tain such industrial policy as will secure the
greatest possible extent and variety of produc-
tion, leaving to the natural competition between
individuals the function of preventing undue pro-
fits on the part of any.2 There are 23,000,000
of active workers in this country. Among that
large number the contests and competition
those engaged in the same business may be relied
on to adjust pyces so that none can make a
profit greater than the average profits of the
community.
But let us see whether there is any robbery
effected by a tariff.
As to such portion of the money collected as
is paid to the Government, that goes into the
public Treasury and aids in defraying the ex-
penses of the nation. Inasmuch as all the people
share in its benefits, that portion can not be con-
sidered “robbery.”
It will hardly do to assert that the foreign
manufacturer is “robbed” by our requiring him
to deposit in our Treasury a sum of money in the
nature of a license-fee for the privilege of sell-
ing his wares in this country.
The “rob” therefore must consist of the dif-
ference between a reasonable price and the price
now charged by the manufacturer. If such dif-
ference exists, it must constitute a margin so
ample as “to become a strong incentive to the
people of any section claiming to be robbed by it
to organize for themselves competing establish-
ments and thus wholly protect themselves against
the exaction of the robber. The tariff protects
them against the foreigner, and all that is needed
f
to protect them against the native robber is for
themselves to do the work—to produce the
article. Why do they not produce it? If they
have not the skill, they can employ it. There is
ample skill in this country ready to go wherever
sufficient inducement is offered.
The law operating equally and impartially on
all sections of the Union, the people of any sec-
tion claiming to be robbed, yet refusing or ne-
glecting to set up establishments for the manu-
facture of the article through which the robbery
is effected, confess, by such refusal or negligence,
that, notwithstanding their complaint, they get
the article for less than they are willing to pro-
duce it for themselves. If through the adoption
of sinister policies the domestic manufacturers
should be driven out of business, then both they
and those who now complain of robbery would be,
equally helpless against the exactions of the
foreign manufacturer, who, the field being all his
own, would continue, and, at will, enlarge upon
the “robbery.” If the “rob” is not sufficient
to induce competition on the part of those who
claim to suffer by it, it can not be very great—it
can not exist at all except in the imaginations of
those who believe that the exigencies of a politi-
cal party are more to be consulted than the inter-
ests of the country.
Under lteen competition in all indus-
tries, how can any one be robbed 7–In
order that we may arrive at some idea of the
possibility of robbery by our manufacturers, let
us inquire as to the character of the competition
existing.
As the census figures for this year are not yet
available, the figures at command apply to a
population not of 65,000,000, but 50,000,000. I
do not doubt that they are 40 per cent. greater
now than in 1880, but I will take them as they
then stood.
According to the census of 1880 there were
17,972 boot and shoe factories in the United
States. Has anybody in this country, then, a
monopoly in the making of boots and shoes 2
With the keen competition maintained by nearly
eighteen thousand establishments, is it likely that
purchasers of boots and shoes can be “robbed ?”
It is probable the number of establishments is
now twenty-five thousand. No one of these es-
tablishments, if it would get trade and keep it,
* g
29

can charge more for boots and shoes than its
competitors charge.
The census of 1880 also shows that we had
3,841 carriage and wagon factories. Is not that
number enough to afford the purchaser of car-
riages and wagons ample protection against over-
charge, against “robbery 7”
We had 1,943 manufactories of agricultural
implements. This is an average of fifty such
factories for each State in the Union. Is it at
all probable that with active competition for
business among so many establishments any one
of them could succeed for any length of time in
“robbing” its customers?
We had 1,005 cotton factories, working
230,223 looms and 10,921,147 spindles. Is that
number not enough to maintain sufficient compe-
tition in the manufacture of cotton goods? Is it
likely that with so many separate and compet-
ing establishments, compelled to keep in active
use so vast an amount of machinery, the profits
in the manufacture of that class of goods can be
maintained above the average profits of business
in the United States? If 1,000 establishments,
230,000 looms, and 11,000,000 spindles are not
enough to keep prices at a reasonable level, how
many establishments, how many looms and spin-
dles would be necessary for that purpose 2
We had 4,958 machine shops. Is not this
number enough to keep up a fair competition in
the production and price of machinery?
We had 6,008 factories of furniture and uphol-
stery. Surely that number of competitors should
make it impossible for any one of these factories
to make more than a fair average profit in the
making of furniture.
We had 1,005 separate establishments for the
making of iron and steel. Considering the inten-
sity of the competition in that business and the
large amount of capital employed (which in 1880
was $230,000,000), the eſſorts of each estab-
lishment to get business, as against its competi-
tors, render it certain that the profits of the
business must bear a normal ratio to the general
range of profits throughout the country.
- Where competition is free among so vast a
population as ours there can be no robbery in a
tariff, no matter how high. Where the material
forming the stock of an industry is not monopo-
lized it is impossible to conceive of anybody being
robbed. Our laws are general, and permit all
our people to enter any pursuit they please. It
can not be truthfully said that anybody is robbed
if everybody is at liberty to enter and follow a
pursuit that is profitable. There is an irresist-
able tendency under equal conditions to an equali-
zation of the profits of industry as there isºto an
equalization of wages. Af w
We are told that the free ingress of foreign-
made goods is necessary to protect our people
against the extortion and spoliation of the
“trusts” and “combines” of this country.
Leaving out of view the fact that free-trade
countries are themselves the home and habitat
of trusts and “combines,” let me inquire whether,
our people are not perfectly well able to deal
with any that may spring up in this country 2 If
not, imagine the helplessness of our condition if
there were no other country in the world than
our own How deplorable would be our fate did
we not have the friendly and philanthropic Eng-
lish, French, Germans, Spaniards, Chinese and
Hindoos to protect us from the exactions of the
“robber barons” who are “plundering” our
people through the tariff How these 65,000,000
of aggressive people would then be plundered
How grateful we should feel to the gracious for-
eigners who, from their distant homes, thousands
of miles away, extend their sheltering and pro-
tecting arms over the oceans and hold in check
the power of our robber chiefs *
If these theories of the free-traders are cor-
rect, it is a wonder that a people so lacking in
penetration, so devoid of the instinct of self-
protection as our people have thus shown them-
selves to be, could have mustered up courage
enough to Venture on the experiment of self-
government. The free-trade theory seems to be
that while, up to a 6ertain point, we can success-
fully carry on free government, yet when a pror
tective policy is adopted our Government needs
the safety-valve of cheaper labor than our coun-
try furnishes. While our people have been able
to organize free political institutions, raise the
greatest armies known to history, and fight the
greatest battles of all time, yet, say the free-
traders and the tariff reformers, they are unable
to organize and carry on an industrial system,
owing to the marauding proclivities of a few
-among their own number,
30
This is why the aid of foreign cheap laborers
has to be invoked. Their efforts are directed to
establishing an equilibrium between the power
of a few of our manufacturers on the one hand,
and the power of the remainder of our 65,000,000
on the other.! If it were not for the friendly
aid of these foreigners, the free-traders fear that
the robber barons of this country would take
from our people all the products of their labor,
just as the slave masters did from their slaves.
Mr. President, if the protective wall were re-
moved, most of the great manufacturing plants
which have taken thirty years to build up would
be abandoned in a single year. After that the
‘prices of foreign articles would rise, while Ameri-
can wages would remain low and would con-
stantly trend downward till they reached the
foreign level. During the continuance of the
fall the only persons benefited would be the in-
come classes and such consumers as are not
themselves producers. They would secure in-
creased command over the labor and property of
the country. On the other hand, by a continua-
tion of the protective policy our great body of
skilled artisans through increasing invention will
continue, reducing prices without reducing wages,
without lowering the conditions of our civiliza-
tion. They will cheapen articles without cheap-
ening men,
But, Mr. President, no man is robbed by the
tariff. The poor man is protected in his employ-
ment and in his wages from the competition of
the half-starved labor of other countries, and the
rich idler is compelled to contribute his propor-
tion to the maintenance of the national policy
which shall tend to keep every man at work, by
reducing to a minimum the quantity of imported
articles.
It is charged that the tariff rate is a tax. It
strikes me, Mr. President, that it would be more
correct to say that it is the price which the for-
eign manufacturers pay to this country for the
privilege of selling the product of foreign labor ||
in our market. *
A duty of 40 per cent. ad valorem means that
for every $100,000 worth of labor in the con-
crete which the foreigner ships into this country
we charge him $40,000. That is to say we
charge him that sum for the privilege of cheat-
ing our workmen out of the work of this coun-
try, to which, I maintain, they have the first
right and title. e -
It is the bonus which the foreign manufac-
turer pays us for the privilege of selling in our
market the work of thousands of laborers who
can not be called upon to defend the country in
time of danger. -
The Democratic party says that we ought to
sell them that privilege for less. The Repub-
lican party, on the contrary, maintains we ought
to charge the foreigner very much more, and
enough even to absolutely prohibit him from
bringing his goods here at any price,
If an American manufacturer, by genius of
organization and the faculty of directing the
employment of great numbers of men, aided per-
haps by patents for valuable and beneficent in-
ventions, succeeds in making a competence, he is
pointed at by the free-traders from one end-of
the country to the other as a baleful example of
the oppressive character of our tariff legislation,
as though he had robbed the community. If,
however, we observé the disposition of the wealth
of the United States we will observe that the
proportion of it realized in manufacturing indus-
tries is comparatively small. In this country, as
in all countries, great wealth has been made for
the most part in real estate and in railroads.
I admit that when the tariff is first levied, .
those who are most alert, those who are most
active in mind or body, or both, are the first to
reap the greatest benefit from it, and they may
perhaps for a time hold some advantage. But it
will not be long before the American people
“catch on.” It would be a poor compliment for
a Senator or Member of Congress to pay to his
constituents to say of them that they would long
allow any class to have an advantage over them.
American citizens very soon enter-into a contest
for their share of any advantages offered by the
tariff laws or any other laws, these advantages
being offered to all alike.
I should be loath to state that my constituents
would long continue exchanging two days of
their labor for one day of the labor of people of
any other Section of the country, provided the
same opportunities and provisions of law were
open to all.
The greatest bodies of iron ore in this country
are to be found in Alabama; the greatest mines
31
of lead in Missouri; the greatest sugar-fields in
Louisiana. All those States have fine water
courses, large bodies of timber, and large areas
of arable land. Those States are governed by
the same general laws that govern the other
States. They have natural advantages equal to
those of any State in the Union. For them to
say that a law imposing a tariff for the protec-
tion of their laborers is a robbery of them, is
nothing short of an admission, however uninten-
tional, that under equal conditions they are un-
able to compete with their fellow-countrymen in
other portions of the Union. More than that it
is a plea of supreme indifference to the welfare
and advancement of their workingmen and to the
development of diversified industries in their
States.
It is charged that by the imposition of a tariff
on imported goods one man is taxed for the bene-
fit of another. That is not the fact, except in
the sense that each citizen is taxed for the bene-
fit of all, and all are taxed for the benefit of
each. If by excluding foreign goods greater
results are achieved in our own country, if there
comes to be a larger proportion of production
per day or per year than would otherwise take
place, the nation is richer, not only in dollars
and cents, but inestimably richer in the fact
that it secures a wide range and variety of occu-
pations for its own citizens. With all industries
established, and all the people in their aptitudes,
the largest possible aggregate of wealth is pro-
duced. Who shall secure that wealth 2 Who
are entitled to it? The persons who produce it.
The employer and the workmen.—The
free-traders assert that our manufacturers make
too much mioney. But we do not hear that, on
the whole, the owners of our manufacturing
establishments are as rich as the manufacturing
barons of free-trade England, nor of those of
Germany or France, nor are our manufacturers
credited with making as much money in propor-
tion to their plant.
. Two or three persons are occasionally men-
tioned in the public press who, it is said, have
realized fortunes in some manufacturing business.
Nothing is said of the thousands of men through-
out the country who have devoted their whole
lives to manufacturing pursuits and have simply
paid their way and made ordinary profit. It is
something of a hobby with our free-trade friends
to ascribe to the “iniquities” of the tariff every
fortune made in this country.
The majority of American manufacturers find
nb greater reward for the money invested thän
is found by other business men for the money
otherwise invested. As soon as it becomes evi-
dent that investment in any special line of busi-
ness in this or any other country is more profit-
able than the average investments of the com-
munity, capital, ever on the alert, invades the
more profitable department and reduces the
profits. This rule applies to manufactures as to
everything else.
Of the whole amount of money received by the
American manufacturer, the workmen get a part
and the employer a part. In other words, .
between them the employer and the workmen of
this country get all that is made in the business.
Suppose it to be agreed that at the end of
each day the workmen and their employer should
sit down to divide or consume directly the prod-
ucts of their labor. Suppose there should be
nine workmen and one employer. Suppose it
were agreed that those products should be trans-
formed into a dinner for ten. Imagine the nine
Workmen seated around the table, with the
employer at the head. Imagine the workmen,
after eating what had been set before them, ris-
ing from the table, pale, gaunt, and hungry, hav-
ing received hardly enough to satisfy the first
stage of animal hunger, and imagine the employer
rising from the same table, his stomach gorged.
with terrapin-stew and canvas-back duck and his
veins distended with potations of Pommery Sec
or Mumm's extra dry
That, in effect, is the picture which the free-
traders give us of the relation between employer
and employed in this country. And how do they
propose to remedy that state of affairs? What
substitute do they offer the workman for this
modern form of Barmecide's feast? To give
them a share of the good things? Oh, no. Sim-
ply to take from the head of the table and from “”
the American employer the terrapin-stew, the
canvaS-back duck, and the other delicacies of
life, and give them to the English, French and
German employer, leaving the place at the head
of the American table as bare as the other
places, and giving the workmen no chance to
32
Secure more than they now receive. The remedy
proposed by the Republican party is one which
says to the workingmen seated at the table,
“This dinner is for all, employer and employed ;
divide it out between you according as you shall
agree. It is for each of you to see to it that you
get your fair share.” And the workman is rap-
idly learning to look after his interests in that
regard.
There is no law in this or any other country
which prescribes the compensation of labor; and
there is no boubt that there are in this country,
as in all countries, greedy employers who would,
if they could, pay their workmen but one-half
their present wages. But every man knows that
in this country the employer does not have things
all his own way by any means. The workmen
Know their rights, and, knowing; dare maintain.
They very well understand that the only
method by, which the terms of labor are fixed
is by agreement of both sides, and they show
a constantly increasing confidence in their own
power to protect themselves from unjust ex-
actions. But instead of being benefited by the
policy which the Democratic party favors, what-
ever profits now accrue from the products of
labor would by that policy be destroyed, so that
the workingman, no matter how earnestly he
may struggle, could receive no more than he now
receives, because there would be no more to
divide. The only change which the Democratic
party recommends is one by which all would
leave the table—employer and employed alike-
lank and emaciated. e
The laborer makes every effort in his power
to get all the money he can for the smallest
amount of labor; the employer, on the other
hand, attempts to Segure, all the labor he can
for the smallest amount of money. When the
- workmen do not receive their propér share, their
growing intelligence will soon secure it. It is
but a question of organization, and of the adop-
tion by them of wise measures. The situation is
absolutely at the control of labor, but the
laborers are not yet in condition to guide and
regulate the great force of which they are the
exponents. If the laborers of the world should
, refuse to work, there would be no capital, and
the capitalist would himself have to become a
laborer, e
When laborers understand how to unite and
what rightly to insist upon — especially when
they understand what it is that can be insisted
on without destruction of the business in which
they are engaged—when they know what is their
just due and adopt wise and intelligent measures
to obtain it, they will receive the equivalent of
the entire products of their labor, less cost of.
management, renewal of plant, interest on in-
vestment, and a percentage to cover risks. 'The
determination of the sum will require intelli-
gence, virtue, wisdom, patience, and patriotism;
and it will require those faculties not merely
from leaders of labor, but from the whole body
of labor. The schoolmaster is abroad, and the
situation is full of hope.
It is a circumstance to be noted that the
greater the knowledge of a workman,—the higher
his intellectual grade,-the higher the grade of
his wages. Even in countries in which the
average range of wages is low, the intelligent
workmen extorts from capital a larger share of
the product than is received by those in the
same pursuit who have not become so well in-
structed.
If any exactions are made by Amer-
ican, manufacturers from their employees, they
are not exactions based on or created by the
tariff. If they depended on a tariff the Euro-
pean workmen should be better off than the
American. i. *
Whatever the horoscope of labor, industrial
development can not yet dispense with the em-
ployer. Without the genius of organization and
of effective and successful direction large bodies
of men could not be kept continuously occupied.
With the infinite variety of human aptitudes it
is in the nature of things that as some men are
equipped for detailed execution others are
equipped for general supervision; and no co-or-
dination of effort can be complete and harmoni-
ous that has not room for both classes. In the
true sense, therefore, the employer is not the
enemy of the worker; nor in the same sense, is
the worker the enemy of the employer, They
are simply indispensable to each other. Advanc-
ing knowledge will equitably prescribe the right-
ful share of each.
The spirit of liberty as a factor in the &
determination of Wages.—A most powerful
factor in the determination of wages is the spirit
A
33
of liberty. The unfettered interchange of
thought exercised by the people of this Republic,
their unbounded freedom of association, and the
absence of depressing, tyrannical, and overaweing
castes and aristocracies—all have potent influ-
ence in establishing the rates of wages in this
country. -
This is the answer to the inquiry of the free
traders why wages are higher in free-trade
England than in protected France or Germany.
The teaching of history is that increase of wages
and improvement of conditions for the laboring
classes have always followed accessions to the
spirit of liberty. The pay of labor of all kinds
is low where despotism prevails, where labor is
considered dishonorable or less honorable than
idleness, and where standing armies stand ready
to silence complaint and repress agitation. All
improvements in the material conditions of people
keep pace with their self-assertion and indepen-
dence. This is evinced by a consideration of the
average rates of wages paid in several of the
countries of Europe to the ordinary mechanic.
A free-trade writer of authority, quoted by the
San Francisco Chronicle states the wages of
ordinary mechanics in Europe to be on the
average as follows:
Per day
Great Britain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.91
France. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
Germany. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
taly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
Russia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35%
By a glance at these figures we observe the
gradation to be practically in harmony with the
proportional development of liberty in the
several countries.
In the presence of standing armies of millions
of men, the process of industrial no less than
political emancipation is necessarily slow; but it
is manifest that wages rise in proportion as
liberty rises. But in all countries the selfishness
of mankind is such that the laborer would be in
poor condition had he to depend on the gener-
osity of his employer. I have a higher opinion,
a more hopeful view of the situation than to
suppose that what the workman is to get for
wages is to be what the employer sees fit to give
him.
When the workman gets his full share of the
products of his labor, the only advance he can
then make—an advance fully equivalent to an
advance in wages—will be through improvement
in methods of production. Thus if two pairs of
shoes can, with improved machinery, be made
with the same sacrifice that before was required
to make one pair, then, so far as concerns shoes,
the wages of the workman have been doubled.
When invention shall have asserted itself pro-
gressively along the lines of labor, effecting in
each as much improvement as may have been
effected in the making of shoes, then practically
all wages will be doubled, because with the
same amount of compensation the workman
gets double the comforts that he got before.
Wages in the United States.—There is
no reason whatever why every man in the United
States should not be willing to pay such rates of
wages and such prices of commodities as shall
naturally result from the free and unrestricted
competition of all our own people.
When trade between a people is perfectly
free, as in this country, there can not, on the
average and in the long run, be higher wages
paid to those employed in one industry than to
those in another. Wherever any one industry
gives indication that the compensation paid to
those engaged in it is on the average greater
than the compensation paid in other occupations,
the industry paying the higher compensation is
invaded by men from the occupations paying
less, and thus wages constantly tend to an
equalization. This invasion may continue to a
point at which, by the overstocking of the labor
market in the favored industry, wages may
finally decline to a point lower than the average
rates prevailing in other industries.
Under the Democratic policy if wages fall in
Europe our industries stand in danger of de-
struction. On the other hand, while professing
to be the special friend of the workingman, the
Democratic party would set on foot a policy
which would render impossible any increase in
the wages of our own people.
I favor the erection of a tariff wall so high
that no possible reduction of wages in Europe
would enable the foreign manufacturer to scale
it. I would have it so high that absolutely
nothing but the competition of our own work-
men with one another would fix wages in this
country. That is competition enough among
23,000,000 workers. The people of this country
34
are entitled to such wages as result from the
unrestricted competition of their own producers.
In the debate on the tariff in both Houses of
Congress long discussions were had as to the
exact amount of duty which should be levied on
imported goods to make up for the difference
between wages in this country and wages abroad.
In these discussions the Democrats affected to
admit that their object was to keep the duty at
such point as would provide for that difference.
But such an admission presupposes that wages
in this country are now exactly what they should
be. This I deny. My idea as to the proper
rates of wages for American labor is that they
should result from the unrestricted competition
of our own people; and I do not admit that the
American laborer as yet gets his full share of
the products of his industry. I do not admit
that wages are yet what they will be.
The true wages that should obtain in the
United States will never be known until, first,
all our workmen shall be protected absolutely
against the squalid competition of other lands;
and, secondly, until they shall receive the equiva-
lent of the value which they severally contribute
to the products of their industry.
It is sometimes charged as a reproach against
the protective policy that in some special pro-
tected industry wages tend to a minimum.
Where this occurs it is an unerring indication of
the vicious distribution of industries and one of
the most distressing consequences of their
maladjustment. The remedy indicated is, not a
reduction of the tariff, but a wider diversifica-
tion and distribution of industries, so that all
persons who want employment may not be com-
pelled to seek it in the same occupation.
It is obvious that if industries be relatively
few, with large numbers of men seeking employ-
ment, those men must distribute themselves as
best they may, and without intelligent adjust-
ment, among the few industries in operation.
If a larger number enter into any special pursuit
than are needed to meet the demands of pro-
duction in that pursuit wages will inevitably
decline. The function of a protective tariff,
carried to its farthest limit, is to obviate the
necessity for this. Its tendency is to encourage
the establishment of a variety of industries and
thus to increase opportunities for employment,
not in one or two, but it a great diversity of
occupations. .
No inference injurious to the tariff can there-
fore be drawn from the fact that at times in
some occupations wages tend to a minimum.
This is rather a sign that the tariff is too low
to encourage the establishment of a sufficient
variety of industries to absorb all the labor of
the community.
But whatever the condition of labor in this
country, it is infinitely superior to the conditions
of labor in the home of free trade.
Comparison of the conditions of labor
in a free-trade country and in a protec-
tign country.—What is the testimony on that
point of those who have personal knowledge 2
John Morley, speaking of Great Britain, makes
the following striking statement:
It is an awful fact—it is really not short of
awful—that in this country, with all its wealth,
all its vast resources, all its power, 45 per cent.,
that is to say, nearly one-half, of the persons who
reach the age of sixty are or have been paupers.
I say that it is a most tremendous fact, and I can
not conceive any subject more worthy of the
attention of the legislature, more worthy of the
attention of us all.
Said John Ruskin:
Though England is deafened with spinning-
wheels, her people have not clothes; though she
is black with the digging of fuel, they die of cold;
and though she has sold her soul for grain, they
die of hunger.
Let me read from an article published in the
London Evening News of November 14, 1888:
NHR'. H. J. Petºffer on his ARh herican
trip.–Last night the executive committee of
the Workmen's Association for defense of British
Industry held their first meeting since the return
of their secretary from the United States. That
gentleman gave at considerable length his ex-
perience of that country, where he had addressed
thirty large meetings. Amongst other things he
Stated that it was very hard to make American
Working men believe that their English brothers
had any voice in the government of this country,
as the first question he was invariably asked was,
How is it possible for English worlöngmen to
have control of the laws that regulate the tariff,
and yet continue to admit the productions of
other countries duty free? This was a question
which he was unable to answer. He said he did
not believe the Sackville incident had mucl: to
do with the result of the Presidential election.
The Republican majority was composed of
Seceding Democrats, many of, whom were
naturalized English and Irish citizens, who had
been driven out of their native country by free
imports, and who were afraid that Cleveland, if
re-elected, would reduce the American tariff. He
met with great numbers of workingmen who,
Still calling themselves Democrats, had decided
to vote for Harrison and protection. Mr. Pettifer
Said he was sure that free trade between this
country and America would in the long run be
injurious to the British workman, as one of the
first results of it would be the bringing down of
35
American wages to the English level, or even
below it, and with reduced wages the Americans
would not only become our great competitors in
foreign markets, but would also lose their present
burchasing power, and consequently could not
uy as much of us as they do now.
The only people he found in America who were
in favor of what is there called English free trade
were the professors of political economy at the
different colleges. As a proof of the purchasing
power of the wages obtained in the United
States, Mr. Pettifer showed the boots he was
wearing, bought in Boston, Mass., which could
be purchased there by one day's wages, while in
this country it would take at least two day's
wages to buy a pair of the same quality. Public
Imeetings in the States are always orderly and
Well conducted, it being considered a disgrace to
any person to attempt to interrupt the speaker.
You are supposed to applaud as much as you
like, but not to hiss, groan, or shout. If you do
not like what is being said you walk out, and the
test of the ability of the orator is his power to
hold the audience to the finish. . He also gave
the average earnings of twenty girls taken hap-
hazard from the wages books of Goff & Sons'
braid works, Pawtucket, R.I., showin # that they
averaged $35 per month, or 35s, in English money
per week, these young women being able to earn
enough in one week to lºeep themselves in board
and lodging over three weeks. He also stated on
the authority of Mr. Conat, superintendent of
Messrs. Coates's thread works, in the same city,
that they paid, double wages in their American
factory to what they paid in Paisley, Scotland.
Mr. Pettifer gave other figures to show the
difference in wages between Eng) and and
America, in a variety of trades, but maintained
that, after all, comparisons of wages are always
more or less misleading. The true test is, what
has the wage-earner got left after º; for
rent, clothes, food, and taxes? Looked at from
this point of view, and supposing the people in
both countries to have steady work (which as a
rule they have got in America and have not got
in England), we find that at the end of the year
the American workman, on an average, will have
$175, or about £36 in English money, left to spend
in luxuries, or to save for an old age, and the
English workman will have $50, or about £10 in
English money left to use for the same purpose.
Mr. Pettifer told a very amusing anecdote
about a free-trade Englishman he visited while
in the State of New Hampshire. This man,
although admitting that he had been forced to
emigrate because he could not compete in Eng-
land with German productions, was almost
Imoved to tears when he said, “This tariff is a
tax. We in America are taxed from the crown
of our head to the sole of our foot ; from hat to
|boots it is one long tax,” and looking round his
well-furnished sitting-room for an illustration of
his argument, he went on to say, “That piano is
taxed, that sewing-machine is taxed, that carpet
is taxed,” etc., and finished up by saying that he
never had to pay a tariff tax on those articles
while in England. “That is †. true,” inter-
rupted the wife, “because we did not have them
when we lived in England’”. And, as Mr. Pettifer
truly remarked, that put the whole matter in a
nutshell. In America, where all these luxuries
are taxed, the workingman has got them ; while
in England, where they are allowed to come in
duty free, he has to do without them.
That is the frank statement of an English
workingman as to the relative conditions of the
masses of the people in his country and in the
United States. But, as he seems to be a pro-
tectionist, I will supplement his statement with
that of a free-trader whose testimony will not
be suspected of bias. The late Matthew Arnold,
in an article in the Nineteenth Century for
April, 1888, on “Civilization in the United
States,” concedes with candor that for all per-
sons whose income is within the limit of £300
($1,500) no country in the world offers such ad-
Vantages as this. Such is the comment of a
distinguished free-trader as to a country which
at the time of his writing had had over a quarter
of a century's experience of protection. Inas-
much as those whose incomes fall within the
limit named by Mr. Arnold include the great
bulk of mankind, we can bear up against his
strictures with regard to other features of our
civilization.
If we have high wages and high civilization
for the masses in this country, then in order to
keep wages and civilization on a high plane a
tariff is indispensable. If we are to permit the
product of the labor of the foreign workman,
underpaid and underfed as he is, to compete in
our home market with the product of our cwn
workmen, shall we permit that competition to
take place without exacting any return for the
privilege 7 Shall our people, who consume twice
as much food per head as the people of Europe,
expend six times as much per head for educa-
cation, cheerfully contribute of their earnings in
many other directions to support the civilization
of this country, and stand ready to defend it if
need be with their lives—shall they permit
foreign manufacturers from a distance of thou-
sand of miles to carry on business in all the
towns and cities of the United States without
contributing in any way whatever to the support
of our institutions or Government 7
Shall we permit them to compete in our own
market with our own people on perfectly even
terms? If so, the consequences will not be slow
to make themselves felt. The competition for
the present may be only with the English, the
French, or the Germans, but it is a progressive
competition. What is to make it stop with the
competition of Europe? If cheapness is the
desideratum it can not stop there. Reaching
beyond the Englishman, the Frenchman, and
the German, our competition will soon be with the
half-clothed Hindoo, and, beyond him, with the
naked inhabitant of the Congo. Is this to be
36
the measure of the ultimate civilization of the
United States?
Raw Imaterials.-While in one breath we
are told that the manufacturers are robbing the
people and growing rich upon the enormous pro-
fits of their business, the result of a wicked
tariff, in the next we are informed that for want
of “free raw materials” the manufacturers are
unable to keep their factories going, and are
compelled to go out of business.
What are “raw materials”
The man dealing in pig-iron deems an article
“raw material” until he has expended labor on
it, ignoring the labor of the toiling miners. The
man who makes steel calls it “raw material”
until he puts it into steel. He ignores the labor
of the miner and the iron manufacturer. The
man who manufactures cutlery includes in his
category of raw material the “finished ” billet
of steel, and denies that it is a “finished” pro-
duct till it has been made into cutlery. The
ship-builder considers the finished plate of steel
to be “raw material” until he puts it into his
ship. And so on through the entire series of in-
dustries, until the material that started out at
$5 a ton as iron ore ends up in watch-springs at
$276,000 a ton! Each man in his turn considers
it “raw material. This view can be excused
only upon the ground of the narrowness of human
vision in all matters pertaining to self. The only
period at which the article was, strictly speak-
ing, “raw material” was while it lay, inert,
useless, and valueless, in the bowels of the earth.
The moment a pick was applied to it, or a shaft
sunk to facilitate its extraction, labor entered
into the value of the article, and although it may
be claimed that most of the labor employed in
mining iron ore is not skilled, yet it is labor.
The miners are among us, and must live. If
iron ores should be imported without limit, on
the ground that they are “raw material,” hun-
dreds of thousands of American citizens would
be deprived of their means of livelihood, and
being without skill in other directions would be
driven back to the land, from which, in isolation,
to eke out a scanty subsistence, and by competi-
tion reduce the already sufficiently low compen-
sation of agriculture. Each man thinks he
should have, free of tariff duties, whatever is
“raw material” in his business. This is saying
to the long line of those who at various stages
prepared the material for his use, “You shall
starve in order that I may increase my profits.”
Who are the producers of raw mate-
rials?—The producers of these “raw materials”
are the men without technical education—large
numbers of people who in youth had not the
advantages of schooling or the opportunity of
acquiring skill in the production of a more highly
finished product. They are the very men that
most of all appeal to our sense of justice for
protection. They are the most helpless mem-
bers of the community—the men without alter-
native. They are, for the most part, the
uninstructed foreigners among us; the victims
of the free-trade policies, or, it may be, of the
despotism of the Governments under which they
were born.
When the liberty-loving people of this country
speak of “the down-trodden masses of Europe,”
these are the very men they have in mental con-
templation. When those men become citizens
of this country they come to cast their lot with
us. They are here. What shall we do with
them? Is there to be no hope held out to them 7
Are ignorance and poverty to become perpetual
and recognized conditions of some class in this
country? Are those people not to be uplifted?
When they become members of a community
in which the life of the masses is on a relatively
high plane they become subjected to the higher
responsibilities and the greater expenditures
characteristic of that life. Are they, who most
need the helping hand, to be the only class to be
brought into direct competition with the wretch-
edly paid labor of foreign countries, with a class
of people who are not only wretchedly fed and
clothed, but upon many of whom no governmental
or other responsibilities are permitted to rest,
who are suffered to maintain physical existence,
while watchful and powerful military organiza-
tions stand ready to keep them in their places?
The conditions of life and of citizenship for that
class in this country differ so absolusely from
thºse of like classes abroad that to remove the
tariff protection from “raw materials” would
leave absolutely without livelihood a class of
men already the most needy and helpless in the
community.
37
If the protection be taken from some forms
of skilled industry their workers will not be al-
together helpless. They may get along by going
into other occupations. The wool-spinner can
on a pinch, earn a livelihood at cotton spinning,
the machinist can become a factory hand, the
factory hand can invade the occupation of the
producer of “raw material.” But there is no
alternative for those already engaged in the
production of raw material.
Every industry in a nation is interwoven with
each other industry. All industries are inter-
dependent. It is a maxim of political economy
that every man's income is derived in part from
the income of every other man in the commun-
ity. An injury to one industry, therefore is an
injury to all. That which lessens the prosperity
of one lessens in a greater or less degree the
prosperity of all. Hence, I maintain that no
man has a moral right to bring into this country,
in competition with the products of home indus-
try, any article that is or can be manufactured
here with no more effort than is required to
manufacture it elsewhere. This is the funda-
mental principle on which a protective tariff is
based. -
The Government, as representing all the people
and charged with the duty of seeing that the
Republic take no harm, has a right to say that
no man, to gratify a self cupidity, shall buy from
abroad any article which his own country is able
to produce with an expenditure of energy no
greater than is necessary to produce the article
elsewhere. The State has a right to say that
no man shall have his wants Supplied for a less
compensation than can be secured by the free
play of competition among the people of his
own country and within the borders of that
country. The rate of wages to which the workers
of that country are entitled is the rate dictated
by fair and free competition among themselves.
They are entitled to be protected from the in-
fluence of the lower rates of wages ruling in
foreign countries.
It is the duty of the State to interpose bar-
riers against the degradation of its people by
industrial invasion no less than by armed inva-
sion. These barriers may take the form of a
money payment which the foreign manufacturer
pays to the Government for the privilege of
competing with our industries in our own coun-
try. That form it takes in the tariff.
How the Democratic policy would de-
Stroy all our industries.—In his somewhat
celebrated tariff message, the chief of the free-
trade party, Mr. Cleveland, when President, re-
ferred to the small number of farmers engaged
in wool-raising compared with all the farmers in
the country, and used the fact of the compara-
tive smallness of their number to enforce his
argument that foreign wool should be admitted
free of duty. He also says, “It may fairly be
assumed that a large proportion of the sheep
owned by the farmers throughout the country
are found in small flocks numbering from twenty-
five to fifty.” On this theory of the then Presi-
dent we may assume that the average flock con-
sists of thirty-five sheep. -
Wool. — According to the figures of the
Bureau of Statistics the total number of sheep
in the United States in 1887 was 44,759,414.
Mr Cleveland said (and I accept his statement)
that “a large proportion” of those sheep con-
sists of small flocks. Just what he means by a
“large proportion” we are allowed to infer. It
might be fairly within the line to say that 75
per cent., or three-quarters of the whole number
of sheep, consists of those small flocks, but to
keep within bounds I will assume the number to
be 65 per cent. Sixty-five per cent., then, of all
the sheep in the country consists of “small flocks,
numbering from twenty-five to fifty,” say thirty-
five sheep each.
Sixty-five per cent. of 44,759,414, is 29,083,619,
which, divided by 35, gives 830,960 as the num-
ber of separate flocks. That means 830,960
Separate farmers or wool-raisers owning flocks
of 35 sheep each. On Mr. Cleveland's own rule
of ascertainment, therefore, there are over
830,000 farmers who are directly benefited by
the tariff on wool. If we estimate five persons
to each family, it will appear that there are
4,000,000 persons directly and pecuniarily inter-
ested in the wool tariff. This may be a “ small
proportion” of the population, but it is a very
considerable number of persons.
If this theory Gf Mr. Cleveland’s be correct,
that because the number of persons engaged in
a particular industry is not a “large proportion
of the population " therefore the product of
38
their labor should have no protection whatever,
what would become of the industries of the
United States? Who shall judge when the num-
ber of persons engaged in any special industry is
sufficient to warrant the protection of that in-
dustry? And if the needs and condition of the
country Warrant or demand the establishment of
an industry essential to its industrial indepen-
dence why should it not be established and
maintained irrespective of the number engaged
in it
In a great self-sustaining nation of 65,000,000
people, with the multiplicity of occupations that
should prevail among them, with a proper variety
and co-ordination of their industries, the number
of persons engaged in any one industry can
never bear any large proportion to the entire
population. Indeed, the smaller the number in
any one industry, provided it be sufficient to
supply the wants of the country, the better.
What is wanted is an infinite variety of occupa-
tions, that each man may find that for which he
is best fitted.
Mr. Cleveland called wool “raw material,”
but by the application of his own rule we find
as many as 830,000 farmers with whom wool is
a finished product ; that is to say, a product into
which a part of their labor has entored. If we
take the principle laid down by him as to the
industry of wool-raising and apply it to the vari-
ous other occupations and industries followed by
the people of the United States we shall make
short work of the entire body of our industries.
B00tS and Shoes.—If wool should be admit-
ted free of duty because only 830,000 farmers
are engaged in its production—that being but
“a small fraction” of the population—then
boots and shoes should be admitted free, because
by the census of 1880 only 194,000 shoemakers
were engaged in that industry. If we should
have free trade in wool, why not free trade in
shoes 2 Reducing the duty would not suit Mr.
Cleveland, for his implied question is, “Why
should the entire population be “taxed’ for the
benefit of a few 7" If wool must go on the free-
list, why not boots and shoes?
Cotton fabrics.-Again, the cotton-mills of
the country in 1880 gave occupation to 169,771
operatives. This, too, is “a small fraction” of
the population. Why should we place a duty on
This, again, is a
imported cottons? Why not buy our cotton
goods in England, and keep the workmen of that
country busy making for us all the cotton cloth
we need in the United States ?
Hats.-By the same census the number of
hatters in the United States in 1880 was 16,860.
“small fraction” of the popu-
lation. Why should we put a duty on hats made
in foreign countries in order that 16,860 Ameri-
can hatters may be kept busy 2 The idea of Mr.
Cleveland and his Democratic friends is that in
any case it is not the workman who gets the
benefit of the duty, but the employer. Why,
then, should we think for a moment of keeping
any duty on hats? Why not admit all hats duty
free ?
Clothing.—Why, too, should we have any
duty on foreign-made clothes? Why not have
all our ready-made clothing made abroad 2 The
number of tailors in the United States in 1880
was 133,756, which is but “a small fraction” of
the population. Should the ready-made clothing
of London and Liverpool be “taxed ” merely to
support 133,000 American tailors ?
CarpetS.–0ur carpet makers in 1880 num-
bered 17,068. Why should not foreign-made
carpets be admitted free to compete in our home
market with carpets made by our own people 7
Paper.—Our paper-mills in 1880 employed
21,430 operatives. This is a very small fraction
of the population. Why should we care to fos-
ter that industry We can get good papers
made abroad. If wool should have the benefit of
free trade, why not much more so paper ?
Iron and Steel.—The number of iron and
steel workers in the United States in 1880 was .
114,539. This, again, is a “ small fraction” of
the population. Why should we attempt to bol-
ster up a business that employs only 114,539
people out of the entire population of this vsat
country? If the wages paid these men benefit
nobody but themselves, then we are depriving
the workmen of Liverpool and Birkenhead of the
work to which, by reason of the long establish-
ment of their industries, they may be considered
fairly entitled.
Machinery.—We had in the United States in
1880 some 101,130 machinists. Why should we
buy machines made by them in preference to
those made more cheaply abroad 2 One hundred
39
thousand men form but a “Small fraction ” of
our population. If the wool grown by 830,000
farmers should be on the free-list, why not the
product of the labor of 100,000 machinists?
. Carriages and Wagons.—Our carriage and
wagon makers in 1880 numbered 49,887. Should
we impose a “tax” on foreign carriages and
wagons and deprive our people of the benefit of
patronizing foreign workmen and the pleasure of
sending our money out of the country merely to
benefit such “a small fraction” of our popula-
tion as 50,000 carriage and wagon makers ?
And so, if the list were continued, we should
find the industries of the country utterly wiped
out piecemeal by applying to each in turn the
views of the Democratic President with regard to
the wool-raising industry.
The denial of protection to any one pursuit on
the ground of the small number engaged in it
serves, pro tanto, to drive people out of it, to
overcrowd other pursuits and correspondingly
depress the rewards of labor in the other branch.
But it brings no benefit even then. As soon as
the occupation is destroyed in this country and
the workmen dispersed into other occupations
the prices of the articles which it had produced
and which now must be imported would at once
be increased. So that we should not only injure
our workmen, but compel all our people needing
the articles produced in that occupation to pay
the foreign manufacturer whatever price he may
choose to put upon his own production.
Are there some unprotected indus-
tries 7–In the tariff message to which I have
referred, Mr. Cleveland takes occasion to declare
that many of our industries are unprotected, and
implies that those who follow them are robbed
by the protective tariff.
He maintains that no protection is afforded to
the blackSmith, the mason, the baker, the plas-
terer, the carpenter, the railroad employee, the
milliner, the day-laborer, the domestic servant,
nor to the persons engaged in professions, such
as doctors, lawyers, clergymen, etc.
On the very contrary, Mr. President, I main-
tain that those are the most absolutely pro-
tected of all industries.
The utmost that the highest protective tariff
could do—even a tariſt of absolute exclusion—
would be to decree that all the work of the
country should be done by the people living in
the country, and that the rates of wages and of
profits should be regulated by their unrestricted
competition among themselves. No protective
tariff ever enacted in this country has been So
high as to have that effect.
Such being the case, those so-called “unpro-
tected” industries enjoy a much more stringent
protection than that of a tariff. Were it pos-
sible to construct houses in Europe and Send
them, ready-made to this country, it would
become our duty to protect specifically, by a tariff
charge on imported houses, the occupations of
the mason, the brick-layer, the carpenter, the
plasterer, the painter, etc. In their favor is
ceaselessly operating a barrier more effective
than the custom house—a barrier erected by
nature—and equivalent to a tariff of exclusion.
This applies equally to the blackSmith, the
domestic servant, the lawyer, the doctor, etc.
In the very nature of things it is impossible that
they can have European competition. Their
only competition is with the inhabitants of their
own country—just such competition as the pro-
tected industries would enjoy were the tariff So
high that not a dollar's worth of foreign product
could be imported into this country.
Such of our people as are engaged in those
occupations have therefore no need of any other
barrier than that which nature provides for their
protection. It is a barrier which neither time
nor circumstances can remove. No man not
standing on American soil can enter into com-
petition with them. Competing with Americans
only, they will always receive such rates of com-
pensation as shall result from the unrestricted
competition of our own people, uninfluenced by
the low compensation of labor in other lands.
If it be said that our unskilled laborers are
liable to competition by reason of the free immi-
gration of the unskilled laborers of foreign lands,
I answer that our skilled workmen are liable
to precisely the same competition by the equally
free immigration of the foreign skilled workmen.
But our skilled workmen are subject to the ad-
ditional disadvantage of the competition created
by the importation of the products of foreign
skilled labor.
Unskilled labor has the highest con-
ceivable protection.—The unskilled laborer
40
of this country, then, enjoys a protection of the
highest character conceivable. He can never be
competed with from abroad. His competitors
must live in this country. The skilled workman,
on the contrary is competed with at every step
of his progress, not only by his fellow-workmen
living here, but by men living and working in
Europe, the products of whose labor are imported
and sold in this country. One is protected by
mature ; why should not the other be protected
by statute 7 Shall we not decree for our skilled
workmen some share of the protection which
nature has decreed for our unskilled ? Shall we,
by our law, refuse to care for the higher indus-
tries, while the lower and rudimental industries
are cared for by a law as immutable as Time?
The unskilled workmen of other lands are attrac-
ted to this country because of the protection
afforded by nature ; should we not establish con-
ditions of protection that will attract the skilled
workmen also 2 Should we dedicate the Repub-
lic to the use of the unskilled only 7
Nature found men without skilled industries;
it found them in a rude and undeveloped condi-
tion ; it therefore protected them by natural
law. It decreed that the unskilled workers
should have no competition except those of their
own community. It set the example of the
highest conceivable form of tariff—a tariff of
absolute exclusion.
Shall skilled labor have none 7–Shall
men, as they become skilled, forfeit at each step
of their progress all the benefits of effort and
aspiration by being exposed to the competition
of the whole world? §kill comes only by labor.
It is an artificial creation. With its development
shall not advancing knowledge give by artificial
means to the products of the skilled producer
the protection that nature gives to the unskilled 2
The unrestricted competition among themselves
of the men engaged in the unskilled industries
among us and in such of the skilled industries as
can not be prosecuted elsewhere results in a
level of prices of which nobody complains.
Should not like competition in the skilled indus-
tries produce a like effect?
Without a tariff we should have the patcher
of shoes instead of the skilled shoemaker, the
solderer of tin pans instead of the producer of
tin-plates; the line-man who strings the wire
instead of the wire-worker who makes it ; the
second-rate man who mends machines and the
botch who attempts to mend them, instead of
the first-rate man, the intelligent and alert man,
who can not only mend machines, but can invent
and make them.
Shall we protect, by what is tantamount to a
tariff of exclusion, the man who lays the rail on
the track, and yet afford no protection to the
man whose skill produced the rail out of the
inert matter of the earth 2 Shall we give to the
cobbler and the tinker—mere menders of things—
the highest protection known to man, and the
compensation characteristic of America, while
subjecting the makers of the articles which the
cobbler and the tinker mend to the competition
of the low-paid labor of Europe?
Free trade says to the shoemaker : “We can
not protect you in the making of shoes. Become
a cobbler and you have all the protection that
the highest tariff could possibly give you.” It
says to the man skilled in the art of making tin-
plate: “We can not protect or encourage skill.
Become a tinker and you have the highest of all
forms of protection.”
It says to the intelligent and skillful watch-
maker: “Do not exercise your talents in the
making of watches; that is skilled work and we
can get that class of work done in Europe. Set
up a little mending shop and we will drop in
occasionally and have our watches repaired.” It
says to skilled workmen of every class : “Aban-
don all ambition. For workingmen, ignorance is
preferable to knowledge. The country is in
danger from the aspirations of its laborers. If
you will give up all desire for advancement, if
you will content yourself with the cobbler's
bench and the tinker's “budget” you will not
have to compete with the ill-paid workmen of
Europe; you will have for competitors only the
men living in your own country, which is as ab-
solute a protection as the highest tariff could
possibly give you. If, however, you dare to
aspire, you shall compete with the half-starved
labor of every land.”
The Democratic policy discourages the
immigration of skilled men and invites
the unskilled.—Free trade, therefore, tends
to discourage the incoming of skilled and tal-
ented men; and instead would invite hither the
41
unskilled of every land, including the paupers,
of whom their country is glad to be rid. Those
whom we should attract to our shores should
be the men of skill and ability—men who, when
domiciled among us, would be an endless source
of wealth, not in material result merely, but in
blood and brain and brawn.
We can not employ labor in Europe to repair
our shoes; why should we employ labor in Europe
to make them : We can not have our old clothes
mended in Europe; why send to Europe for our
new clothes? We can not send old engines and
machinery to Europe for repairs; why send to
Europe for new engines and machinery?
The tariff, then, unless absolutely prohibitory
affords but partial protection to our skilled
workmen. If it be true that by this partial pro-
tection the skilled workman is robbing the com-
munity, what can be said of the robbery effected
by the unskilled workman He has the commu-
nity entirely at his mercy. The skilled work-
man, by reason of the importation of competing
foreign manufactures, is able to effect but a par-
tial “robbery,” while the unskilled workman has
a clear field. Yet we have heard neither from
Mr. Cleveland nor any one else any complaint of
“robbery” effected by the unskilled workman.
The fact that no one suspects those who repair
our shoes or our machinery of robbing the com-
munity should be assurance that there is no need
to suspect of robbery those engaged in making
our shoes or our machinery. If such fear existed
it would only show that ignorance should be pre-
ferred to intelligence. It would tend to prove
an absurdity, namely, that the more instructed a
people become the less integrity will they have,
and that a nation has less to fear from an igno-
rant populace than from an intelligent body of
skilled and artistic people. It would be an extra-
ordinary result of human progress if those who
had only a smattering of a trade should be more
desirable citizens than those who were masters
of it. The utmost that a tariff can do is to lift
the skilled workman to the same high level of
protection afforded to the unskilled workman.
The moment the Democratic leaders reach the
point at which labor becomes skilled they com-
plain of “robbery.” Are they afraid to trust
the laborer when he becomes skilled 7 Do they
fear that in proportion as a workman becomes
intelligent and skillful he becomes more removed
from the Democratic party 2 s
The “necessaries of life.”—The sympa-
thies of the free-trader go out in unstinted
measure to the purchaser of goods; he has no
sympathy with the producer of them. He wishes
the duty taken from the “necessaries of life.”
In behalf of whom ? Not the producer of those
necessaries, but the purchaser. He ignores the
fact that it is in the production of those very
necessaries that nine tenths of our people are
engaged. If the tariff charges are to be taken
from “necessaries of life,” there will be no need
of a protective tariff ; there will be nobody to
be protected. Under the pretense of benefiting
the purchaser the Democratic party would
destroy both the producer and the industry.
If we examine the list of productive pursuits
followed in this country, we shall find almost all
of them dealing with “necessaries of life.” Pro-
tection should be given to all pursuits, so that
the largest variety of industries may be encour-
aged. The fact that only a few persons are
engaged in a particular industry is no reason
why that industry should be destroyed, our coun-
try deprived of the art, and other industries
overcrowded with the displaced labor.
In the idea, therefore, that all tariff charges
should be" taken off the “necessaries of life,”
there is nothing but an appeal to “consumers,”
in the hope that the producers of the country,
being also consumers, may be deceived by mere
names.
Before the great protective system was inau-
gurated by the Republican party a very large
number of articles now deemed by our people to
be “necessaries” were luxuries of life. The
daily living of the masses of this country has in
thirty years, under protection, come more and
more to consist of things that prior to that time
were beyond their reach. With the protective
principle thoroughly understood and universally
applied, there is hardly an article in the present
category of luxuries that would not, as time
passed, become part of the daily life and daily
needs of the masses of the American people. -
It will be generally admitted that worsted
shawls come fairly within the designation of
“necessaries of life” in this country. Suppose
the duty on worsted shawls to be high and the
42
duty on camel-hair shawls low. Our free-trade
friends would characterize this as a gross wrong.
Let us see. There are thousands of people in
this country engaged in the manufacture of
worsted shawls. With one accord they assert
that if the tariff charge should be taken from
those articles it would either destroy the industry
in this country or relegate all those engaged in
it to a grade of living inconsistent with citizen-
ship of this free Republic. They therefore unite
in a request that the duty be not taken from
imported worsted shawls.
So, also, the American sheep-raisers who sup-
ply the wool for those shawls, living in isolation
and self-denial, entreat us not to subject them
to a competition with the cheap labor of South
America and Australia. It is manifest, if we
are to have a protective policy at all, that the
policy should extend to every industry existing
in the country ; otherwise it would be a partial
and unjust policy. By a duty on wool and on
worsted shawls we protect the people engaged
in the manufacture of those articles from the
competition of European labor. But in examin-
ing the subject, to see against whom a discrimi-
nation would operate in case we put only a com-
paratively light duty on camel-hair shawls, I fail
to find American labor engaged in raising camels.
I have seen no camel ranches in this country,
nor have I heard of anybody in the United States
being engaged in the manufacture of camel-hair
shawls.
Whom, therefore, should we protect by an
extraordinaily high tariff charge on camel-hair
shawls'. An industrial policy, to be worthy of
a great nation like this, should enable its people
to do all their own work, untouched by compe-
tition from the squalid labor of other lands.
By the protective feature of the tariff we
secure all the revenue needed by the Govern-
ment, and whether luxuries are highly taxed or
not, it would be absolutely destructive of the
interests of our laboring men to take the tariff
charge from foreign importations of articles that
may be called “necessaries of life.” By tak-
ing the duty off “necessaries of life” we should
subject our producers to a competition that
would deprive them of work, that work being the
production of those very “necessaries.” As I
have said elsewhere, it is the producer to whom
the highest consideration is due. All except the
aged and infirm should be producers, and even
these are provided for by the protection which
the tariff affords to those whom nature has
appointed to care for them. Industrial policies
can not be planned in the interest of those who
produce nothing, who contribute nothing to the
common wealth. States can live without them.
Is the Democratic party a free-trade
party 3–Is the Democratic party a free-trade
party 2 Some of the leaders of the Democratic
party dislike the appellation of “free-trader,”
and deny that theirs is a free-trade party. Inas-
much, however, as all phases of the economic
policy of that party would produce every injur-
ious effect of absolute free trade, they object to
nothing but the name. They will not deny that
in their ranks will be found all the free-traders
of the country, whatever the number may be ;
and that there are a considerable number must
be inferred from the fact that one section of the
constitution of the late Confederate States con-
tained the following provision.
Nor shall any duties or taxes on importations
from foreign nations be laid to promote or to fos-
ter any branch of industry.
The free-traders are those who, when asked at
what time they would remove all tariff duties
and tear down all custom-houses, have the candor
to reply, “Now !” As this frank avowal might
lead to the alienation of Northern votes from
the Democratic party, some of the great lights
of that party denominate themselves “tariff
reformers,” while, in order that the party may
be all things to all men, others of its leaders are
advocates of a “tariff for revenue with inci-
dental protection.” The “tariff reformers” have
as little regard for a protective tariff as have the
free-traders. They are believers in a “revenue
tariff.” This is the opposite—the very contra-
diction—of a protective tariff. Its purpose is
to refuse to protect. It would utterly destroy
protection. In order that under it protection
may be impossible, a “revenue tariff’ impéses
duties on articles not produced in this country,
so that nobody could be protected—duties levied
with a view of providing a revenue only.
The advocates of a “tariff for revenue with
incidental protection” are the most illogical of
these “reformers.” Professing to desire pro-
43
tection, they would adopt means that would
render its realization impossible. Now, protection
is either right or wrong. It is either necessary
Or unnecessary. If right and necessary, why
should it be made an “incident’ ” If wrong and
unnecessary, why, equally, should it be made an
“incident?” In such case, why have it at all?
The out-spoken free-traders, therefore, deserve
credit for possessing the courage of their
convictions. .
If, as all Democrats in good standing believe,
it be a “robbery” to have a tariff that fully
protects, how much of a robbery is permissible
under that which “incidentally” protects?
Where does the “incidental” honesty cease, and
the “robbery” begin? Do they mean that they
are in favor of a “tariff for revenue with inci-
dental robbery?” This is equivalent to a rule
of morals that should inculcate the observance
of truth with incidental lying, of honesty with
incidental stealing, or, in general, the practice of
virtue with incidental vice.
The simple fact is that all these classes of
“reformers” have in view the very same pur-
pose. The out-and-out free-trader would at a
stride place the people of this country on a
level with the people of other countries. The
“revenue reformer” would perhaps make two
strides instead of one—the first taking us half
the way, and the second the other half. The
advocate of a “tariff for revenue with incidental
protection ” would take us to the goal by “easy
stages”—at each remove reducing the condition
of our workmen, and getting them accustomed
to the new and less favorable condition before
taking them farther along in their journey to
join the army of the disinherited, the poverty-
stricken laborers of other lands.
If the intention be to protect in any degree
the labor of this country from competition with
low-paid foreign labor, how can a low tariff
effect that object 2 g
This class of tariff results in large importa-
tions, but the special degree of lowness is not a
matter of importance. So long as the goods
can be imported and sold here at all at a profit,
they will come. Suppose that English cotton
goods, if admitted free of duty, could be sold
here at a profit of 10 per cent. And suppose
that with a view to “incidental,” protection a
tariff charge of 5 per cent. were imposed on
such goods. There being still possible a profit
of 5 per cent., the foreign goods would keep
pouring in. If, therefore, the tariff charge be
not high enough to afford substantial protection
it does not “incidentally” protect. It does not
protect at all.
No prudent man would build a house in a
valley in proximity to a dam that was just high
enough, and no more, to keep the water from
overflowing during an ordinary season. Before
building he would wish the dam raised to a point
sufficiently high to protect his dwelling in Sea-
sons of exceptional overflow, during which he
might be subjected to the risk of having his
house carried away by flood.
So it is with the tariff. So long as the wall—
or dam—is only just high enough to keep out
the article the prudent American business man
will hesitate about investing his money in the
business. He can not foresee the moment when
through even a slight reduction of wages abroad
a flood of imports may overwhelm him, and con-
sequently the full benefits arising from keen
home competition will be wanting. If the tariff
be amply high, confidence is established and
the business of production can go on without
trepidation.
The greatest decline of prices in this country
has been of articles on which the tariff charge
has been so high as practically to exclude the
foreign article from our market. Illustration of
this fact may, as is universally known, be found
in the carpet and steel industries. The decline
of prices has been least in articles of which our
principal supply comes from Europe. The rea-
son is obvious—becausefull competition was not
secured among our own people. Tears were
entertained as to the wisdom of entering a busi-
ness which might at any time be disastrously
affected by importations. In all departments in
which there existed perfect safety from foreign
competition the competition among our own
people was keen enough to effect a great reduc-
tion in price.
How high should the tariff be?—The
early protectionists of this country believed that
protection would be needed for but a short time.
They supposed that when industries had been
established and in operation for a short period
44
they would be able to compete in our own mar-
ket with the products of foreign labor. It did
not present itself to their minds that protection
was a continuing duty which the country owed
to its labor and its industries. The factors and
conditions which enter into and surround the
industrial problem must be such as will assure
permanence and progress, so that labor and
capital may intelligently reason upon the future
and make the calculations necessary in these
days of large time contracts and great manu-
facturing plants.
No mistake can be made by making a tariff
too high; an industry may be destroyed by mak-
ing the tariff too low. If the protection is not
needed, it has no effect. Whenever a duty is
placed on any article that can be produced here
cheaper than elsewhere, the duty is of course a
dead letter. It has no effect one way or the
other. If, for example, we should put a duty of
$10 a pound on imported cotton, the duty would
not have the slightest effect, either on keeping
out foreign cotton, which is already effectually
kept out, or in raising the price of the domestic
article. Or if we should put a duty of $1 a
gallon on imported petroleum, it would not
change the price of petroleum. Protection,
then, refuses to protect any article that is
cheaper here than in foreign countries.
When people say that the tariff is or is not
high enough, they very often have no definite
conception why it is or is not so.
The true test—are we doing our own
Work?—The true test of whether the tariff is
high enough is to be found in the answer to the
question, Are we doing our own work?
When large importations are coming in it is a
certain sign that the tariff is not high enough.
To suppose otherwise would be to assume that
our people are not active in observing oppor-
tunities for promoting and extending their
business.
The tariff ought to be sufficient to insure our
people against the competition of foreign labor
and foreign capital.
Nobody in this country is going to risk a new,
elaborate, and costly plant on the hazard that
wages in other countries are going to continue
at present rates, as he does not know, and can
not know, to how low a degree wages may be
pressed in those countries. The people there,
having no alternative, must accept any offered
wages, however low. The people here would
not. In Europe one class fixes wages; in this
country two classes fix them.
If our people do not enter an industry the
tariff should be made high enough to induce
them to do so. Capital is constantly seeking
investment and taking risks, but there is a point
at which risk will stop. If it were fully assured
and understood that the protective policy would
continue, capital would more freely enter new
occupations and thus, by degrees, reduce the
importations of foreign goods
If the fear be expressed that the profits of
capital may become too high, it is only necessary
to remember that the tendency to equalization
of profits and of interest on capital is just as
strong as the tendency to equalization of wages
or of anything else.
No matter to what height the tariff might be
carried in a country where capital is as widely
diffused as it is here, where it is more widely
diffused than anywhere else on earth and where
it is daring to a remarkable degree, it is absurd
to suppose that men with money, looking for
investment, will long permit those already in
business to make extraordinary profits.
The profits of capital in one industry can not
long remain above the average profits of capital
in all the enterprises of the community. There
is a constant vigilance exercised by those having
money to invest; they will invade any depart-
ment of business in which the profits promise to
be remunerative, and moneyed men of active
dispositions are not long going to permit other
men in the neighborhood to continue making two
or three times the profits realized in the average
business. To suppose otherwise would be to
admit that men are not actuated by self-
interest.
If the tariff is high enough, why are
our imports So large —If the tariff is high
enough, why is it that our own people, enterpris-
ing as they are, should continue to permit
the foreigner to occupy our markets, when by
every means in their power our people are hunt-
ing for the profitable employment of capital,
especially in manufacturing industries 2 If it
be high enough in woolen goods, why is it that
45
fifty to seventy million dollars' worth of woolen
goods are imported every year into this country?
If not high enough to maintain our rates of
wages, it is only a revenue tariff.
When a tariff is really protective we produce
the article here, and there is no revenue derived
from it. By making it too low, or by declining
to make it high enough to bridge over the differ-
ence between the rates of wages and subsistence
in another country and in this, our wages must
range so as to approximate those of foreign
countries.
Whenever conditions are such in any line of
industry that it is on the edge of competition
with a like foreign industry, a reduction of the
tariff by 10 per cent. might be sufficient to
drive the industry wholly out of our own country.
So long as the reduction is not sufficient to
enable the manufacturer to send his goods here
it has no effect.
But if the rate be so reduced as that importa-
tions come in by reason of it, then by our law
we cheat our workmen out of their right to the
work of this country, to which by reason of their
citizenship, their tax-payments, and their obliga-
tions to support and defend the country they are
naturally entitled. I maintain that they are
entitled to have the products of their labor
bought at prices that will admit of the payment
to them of wages on which they can live in the
manner characteristic of this country and people.
Whenever the tariff is sufficiently high and
sufficiently general in its application to protect
all industries, no one is or can be injured.
It is impossible to protect one industry with-
out in a measure protecting all industries.
When everybody is permitted to engage in any
industry he chooses, he can only get paid accord-
ing to the average wages paid in his community.
If, then, you raise permanently the wages of
any reasonable number of laborers in the com-
munity, you increase to that extent the average
wages of that community.
Buying in the cheapest market.—But
we are told by the free-traders that political
economy teaches that we must buy in the cheap-
est market and sell in the dearest. That is
good political economy for the few, but bad po-
litical economy for the many. For a short time
one may get an article cheap in a foreign market,
but the article is dear at any price if its pur-
chase abroad discourages or postpones the pro-
duction or development of a similar article in
our own country.
If the English people had contented themselves
with importing the work which the skill of the
Huguenots had fashioned, England would have
lost a source of much wealth as well as a most
desirable addition to her population. With true
foresight England abandoned the importation of
the Huguenot's manufacture and imported the
Huguenot himself. There may have been for a
short time a money loss on the article, but Great
Britain got more than an equivalent; she got an
enduring Source of intellectual and moral wealth
by importing the fabricator instead of the fabric.
The thought embodied in the article is surpassed
by the thought embodied in the artist.
Our farmer may be willing to buy cheap
clothes or exchange his wheat for them, but the
clothes soon wear out. The farmer would do
better were the country filled with the talent
that produces good clothes, which, by reason of
the ingenuity cf the skilled workman in calling
to his aid the latent forces of nature, would soon
become as cheap in the farmer's own country as
the clothes he now buys abroad. The farmer
would then have the skilled workman as a custo-
mer for his agricultural products.
Democratic cheapness a cheapness of
men—Republican cheapness a cheapness
of methods.-The cheapness that our Demo-
cratic free-trade friends are seeking means an
ultimate cheapness of men, an inferiority of
citizenship, a cheapness that submits men to
squalor of living. This form of cheapness is
odious and repulsive. In order to get cheaper
goods for the moment they would cheapen our
institutions. The aspiration of the Republican
party is not for that form of cheapness, but for
the cheapness developed by science and promoted
by art, the cheapness that results from improved
methods of production. -
I maintain that the first duty of the govern-
ment of a republic is to adopt and maintain such
economic policies as shall protect its citizens
from a degrading competition with “cheap”
people, with those who have no alternative but
to take what is offered or starve, men who are
46
obliged to accept in return for their labor the
Smallest amount that will sustain animal life.
With the free-trader the dream of life is
“cheapness.” He uses this word as if it were
a fixed and immutable quantity and not a mere
expression of temporary relation. IIe says we
ought to have “cheap” clothing without regard
to the method by which the cheapness is effected.
If we have to keep the wool-grower, the wool-
spinner, and the cotton-weaver in squalor in
order that we may have cheap clothes; if we are
to keep the shoemaker on the edge of starvation
in order that we may have cheap shoes, every
man in the community will find in “cheapness”
a two-edged blade, one edge cutting the man
from whom he buys, the other cutting himself.
©ne cheap man begets another.—All
industries being interdependent, the prosperity
of all depends on the prosperity of each. One
“cheap” man begets another. ..f the hatter
must have “cheap” shoes, the shoemaker must
have “cheap” hats. If both must have “cheap”
clothes, there must be “cheap” men to raise
the wool, “cheap” spinners to spin it, “cheap”
weavers to weave it, “cheap” sewing-women
and “cheap” tailors to make it into clothing.
To supply “cheap” machinery for the shoe- |
& &
maker and the hatter, we must have “cheap”
machinists; to supply the needs of existence for
all these, there must be “cheap” agriculturists,
and “cheap” grocers; to repair their houses
must be “cheap” carpenters and painters.
So there must be cheap railway cars, cheap
locomotives, cheap engineers and conductors—
and so on throughout the entire body of labor.
This form of cheapness would be the destruction
of civilization. The way to cheapen things is
not to cheapen the price without regard to the
effort involved in production—not to cheapen
the men who make them, but to cheapen the
processes by which they are made—to reduce
the amount of human sacrifice that enters into
their making; in other words, to compel the
forces of nature to do the work of man.
Whoever buys “cheap” must sell “cheap.”
This rule is inexorable. It has but one excep-
tion. If a man has a monopoly of a product he
may sell “dear” and buy “cheap;” but where
no monopoly exists, where, from the nature of
the business, it is impossible to have a monopoly,
then cheapness on the one side will involve
cheapness on the other. Cheapness in buying
will involve cheapness in selling.
True cheapness is effected when less
sacrifice produces the article.—The true
cheapening of an article takes place when its
production demands less sacrifice from him who
produces it, not when its purchase demands less
sacrifice from him who purchases it. The gauge
of cheapness is the sacrifice incurred by the
producer, not that incurred by the consumer.
There is no producer who is not also a consumer;
there are consumers who are not producers.
With the exception of the aged and the infirm,
men are entitled to regard only in so far as they
are producers. It is the man who works, not him
who idles, that is entitled to consideration. The
producers are the strength and buttress of the
state. The willing idlers, whether rich or poor,
and the majority are rich, are its weakness. No
mistake can be made by consulting the interest
of men in their capacity of producers. By con-
Sulting the interests of men as “consumers”
merely we undertake to protect the interests of
the idle rich—the non-producers—at the expense
of the producers.
To get cheap shoes the free-trader would
either buy the product of foreign labor, which he
would admit free of duty, to enter into competi-
tion with the product of our shoemakers, or if,
he bought the home-made article it would be at
the low price of the European shoe. So he
would condemn all our artisans, in turn, to the
lowest grade of compensation because he could
buy at less out-lay in dollars and cents the
products of European labor. The truth is that
no class of people in this country are entitled to
goods any cheaper than the other classes of our
own people can make them at wages that com-
port with the requirements of American civiliza-
tion.
Our people not being able under present
conditions to compete with the foreign manu-
facturer in the production of the various articles
demanded by our civilization, a larger propor-
tion are driven into agriculture than the needs
of our own country require, and more than is
consistent with a proper adjustment of industry.
The consequence is that large numbers of men
find their life-work uncongenial or repulsive,
47
who, had they, in youth, had the opportunity of
entering a vocation Suited to their tastes and
capacities, would have been a source of strength
instead of weakness to their country. For with
everybody occupied at the work for which he is
fitted, not only is the largest amount of work
produced, but it is produced at the smallest
amount of sacrifice.
If we are to be satisfied with hiring our work
done abroad in all departments of practical art
because it can be done there more cheaply than
here, then on the same principle we should be
satisfied with hiring music for our homes instead
of permitting our children to experience the
delights of musical instruction. Millions of
dollars are annually expended in teaching Amer-
can girls the use of the piano, in possessing them
of the art of music. Why not instead hire a
hand-organ? For the same reason, instead of
applying our money to the education of our
children, we should be satisfied to hire “cheap”
intelligence.
Why should we deem it essential that in re-
spect to the accomplishments of life—in respect
to music, to literature, to the abstract sciences,
and the fine arts—our young people should be
trained according to their several aptitudes,
while in respect to the most important of all
arts—the art of supplying the material wants of
life—they should be made dependent on foreign
nations?
Are we willing that our people, having a larger
faculty of development than any other people in
the world, shall be dependent on other lands for
the skill that shall enable them to keep pace with
their aspirations?
When it becomes a question of cultivating the
esthetic and refined tastes all admit that we want
the art, but it would seem that we do not care
for the art that teaches people how to achieve
in the great work of providing all the wants of
a highly civilized people.
It is proper that our people should cultivate
esthetic tastes and extend the influence of refine-
ment through all the homes of the land, but the
estheticism, the literature, the fine arts, that will
endure are not those that precede, but those that
accompany and follow material progress. They
have a positive and assured foundation. Neither
the moral, the intellectual, nor the physical
advancement of a people is assured without
immunity from hunger.
Neither is the civilization to be commended
that develops one class of the community in all
the intellectual qualities, while leaving all other
classes without opportunity for progress. The
cultivation of a few does not compensate a
nation, especially a republic, for the ignorance of
the many. This is a country without privilege or
privileged classes, For us cultivation must reach
beyond the few ; it must extend to the many.
Ours is a society of workers, and work should be
held to be the highest badge of privilege. It is
the prime factor in the true cultivation of a
people, that form of cultivation most essential to
the prosperity of a nation. The cultivation that
condemns labor is not for us. That is a relic of
the past and is inconsistent with the welfare of
mankind. The most essential and salutary cul-
ture is that culture of head and hand whose
beginnings have been observed to develop within
the recent past and whose culmination reaches
far into the distant future.
In the last analysis the real cost of produc-
tion is not money, but labor. The true cost of
any article is the number of hours' or days’ work
that have entered into its manufacture, the
amount of toil it has evoked. As already stated,
if you have unrestricted freedom of trade, you
must exchange on even terms. The man who is
at work making shoes in England will not be
content to be cheated by the man who grows
wheat or anything else in America. Under free
conditions things tend to equalization. If the
Englishman sells cheap shoes he will insist on
getting clue; p wheat. When people say they
want things “cheap,” it only means that they
want everybody else to make things for them
more cheaply than they are willing to make
things for other people. It means that each
man wants his share of the world’s goods sup-
plied to him at a lower price than he is willing
to supply the world with the things he makes.
With this sordid argument of cheapness the
free-trader goes to the shoe-maker and enquires,
“What do you pay for your clothes 2" On
being informed of the cost of the clothes, he
says, “If it were not for the tariff you could buy
your clothes so many per cent. cheaper.” He
then says to the tailor, “What do you pay for
48
your shoes?” On receiving the information he
tells the tailor, “If it were not for the tariff you
could get your shoes at so many per cent. less.”
He advises each to agitate for a repeal of the
tariff act. If the agitation prove successful, the
tailor, by buying his shoes abroad, deprives his
neighbor, the shoemaker, of a customer. The
shoemaker, in turn, by buying his clothes abroad,
deprives his neighbor, the tailor, of a customer.
Thus selfishness overreaches itself.
What is meant by buying in a foreign
market 7–When a man says he wants to buy
in a “foreign market,” what does it imply?
Simply that he wants to get, in exchange for his
own toil, more than an equal share of the result
of some other man's toil. Let the tariff be ever
so high, he can get a fair and equal exchange of
labor in his own country. If we imagine a con-
dition of things among ourselves in which labor
is unequally distributed, so that, for example,
one day's work by A is equal to two days’ work
by B, other men, seeing the advantageous position
occupied by A, will enter his trade, and thus
lower or tend to lower the value of his day's labor
when compared with that of B. Thus profit and
wages are constantly tending to an equality.
People who entertain the hope that they can get
a cheap market—that is to say, a market in
which a given amount of force or labor will be
exchanged for a less amount of force or labor—
will find in the end that they entertain a vain
and delusive hope. However things may be at
the start they will soon equalize.
The cost of all articles in this country should
be that which results from the universal and
unrestricted competition of our own people,
untouched by that of the squalid labor of other
lands.
Whoever competes with others must accept all
the conditions of life of those with whom he
competes. If we compete with Europe, we must
accept the conditions of European life. From
this there is no escape.
But the free-trader tells us that when he
wants a bale of cotton, he does not want a cotton-
mill. Wanting but one bale, he wants that at
the lowest price at which he can get it. He
insists that the element of present price is all
that he has to consider.
Flesh and blood involved in cheap-
neSS.–If cotton produced itself, without human
agency, there might be some reason in that argu-
ment. But we can not discuss the price of cot-
ton without discussing the price of flesh and
blood. It is no answer to this for the free-
trader to ask “Am I my brother's keeper?” A
nation is a living community in which each indi-
vidual has certain well-recognized and well-
defined duties toward every other, in which each
person is under an implied obligation not to seek
his personal gain by an injury to the community.
When the free-trader sends abroad for his cotton
goods, is it to be supposed that he inflicts no
injury on his own community ? We have only to
extend the inquiry by asking how this rule would
work if everybody sent abroad for everything!
The result would be that in time the people them-
selves would have to go abroad.
Why send abroad for cotton goods? Because
says the free-trader, they are produced cheaper
abroad than at home. Does it follow that those
goods will never be cheaper at home 2 Can not
Our skilled workman devise improvements and
processes by which to make cotton goods cheap
without at the same time, as is the case abroad,
cheapening the men who make them 7 And have
they not so done again and again? Is not this
work of improving our processes going on every
day in every machine shop and cotton factory in
the United States ? The ingenuity of our arti-
Sans is proverbial ; it is constantly discovering
new methods and inventing new machinery which,
by greatly increasing the product of labor,
cheapen the price of the product without reduc-
ing the wages of labor.
Wages and all other conditions of life are
higher with us to-day than they were in 1850
when, according to the census, the value of our
manufactures was $44 per head of population;
and higher than in 1860, when our manufact-
ures had risen to $65 per head. In 1880 we
manufactured $107 worth of goods for each
man, woman, and child in the United States.
Yet the price of manufactured articles is gen-
erally conceded to be, on the average, 50 per
cent. less to-day than in 1860. With increasing
output we are decreasing the price Is it to be
assumed, because an article is cheaper to-day in
Some foreign country than in the United States,
49
that it is to the permanent interest of our peo-
ple that the article shall be bought abroad and
brought here ready made rather than made here,
where the art will be the possession of the
people, where the money will enter into the
home circulation and aid in the development of
home industry?
- Are we willing, for the sake of the price
which happens to be ruling abroad to-day, to
permit our home manufactures to languish, if
not to die, and the inventive genius of our people
to decline? It does not need the eye of a
prophet to see that had we no tariff charge on
the foreign article the foreign manufacturers
would flood our market with their goods, de-
stroying our industries. It is equally clear that
they could then raise the price of the articles to
whatever figure they pleased.
One of the principal effects of the tariff,
therefore, is that by the development of home
manufactures we are protected from the exor-
bitant prices which in the absence of the home
product we should be compelled to pay for the
products of foreign factories and workshops.
Is price a static condition?—Price is
treated by the free-traders as a static condition,
as a fixed and unvarying quantity, whereas in
fact it is controlled absolutely by the relations
existing, at any given time, between supply and
demand. Increase the supply of any article
without correspondingly increasing the demand,
and you diminish the price of that article. On
the other hand, add to the demand for it without
adding to the supply, and you increase its price.
With this principle borne clearly in mind, let us
see how it applies to the doctrine that our
people should abandon the protective policy, tear
down the tariff wall which incloses our pros-
perity, and admit to full competition with our
own manufactures the manufactures of foreign
countries. -
We impose what the free-trader would no
doubt regard as a heavy duty on imported cotton
goods, yet we imported into the United States in
1889 manufactures of cotton amounting in value
to $26,805,942. On these the duties amounted
to $10,841,970, an average of about 40 per cent.
if the payment of $10,000,000 of duty did not
prevent the sending of $27,000,000 worth of
those goods into this country, the quantity that
would be sent here were no duty imposed can
only be measured by the entire demand of our
people for that class of goods. If the foreign
manufacturer can pay 40 per cent. duty and still
compete with us in our own markets, it must be
obvious that were the tariff out of his way he
would speedily dismantle every cotton-mill in the
United States. That done, what is to prevent
the foreign manufacturer from raising his price
for the cotton goods which we would have
to buy?
Prices would no longer be those of to-day, but
would depend absolutely on the new conditions.
The European manufacturers understand their
business, and should they find the entire demand
of 65,000,000 people open to them, they would
sell their goods on the basis of the increased
demand.
Whatever price cotton goods command to-day
is a price resulting from and fixed by the rela-
tions of supply and, demand as they now exist.
Imagine our cotton-mills destroyed, our plant,
consisting of probably 300,000 rooms and
14,000,000 spindles, rendered idle, and our mar-
kets made wholly dependent for their supply
upon the foreign manufacturers. Notwithstand-
ing the cessation of production in this country
our people would still need a large supply
of cotton goods. This would enormously
increase the demand for the products of the
foreign factories, and correspondingly increase
the prices at which we could buy them.
Even if the price should afterward rise to a
point at which our people could make them, they
would be restrained from again entering upon
the risks of the business. It is not what the
foreigner is willing to sell for, but what he can
sell for, that will decide. Our cotton mills would
therefore continue closed until such a time as a
lower order and scale of living should reduce our
people to the conditions prevailing in competing
countries. That result would be certain to
follow from precipitating all our people into one
industry. Even then the advantage of plantſ
would remain with the foreign manufacturer,
which would enable him to out-sell the American,
But as it would take half a century to reduce
our people to the conditions prevailing abroad,
if our capitalists should decline to altogether
abandon the business, they would be compelled.
50
to take their plant and machinery from this
country and set it up elsewhere, in some country
in which they could get labor on the same terms
as other manufacturers, where the laboring
classes are oppressed and where great armies
stand ready to repress all demonstrations of
dissatisfaction, * 3.
How Protection reduces prices.—The
duty of this Republic is to assist in the cheapen-
'ing of products, not by cheapening humanity,
but by cheapening the processes of labor. This
is the only method consistent with progress. By
any other method, humanity must retrograde, not
advance. By this method the result is effected
by bringing to bear upon industry all the subtle
powers of science for the liberation of man from
the slow and toilsome method of hand labor.
For centuries cotton fabrics from the hand-looms
of India had been imported into England. In
order to develop her manufacturers England
finally passed an act absolutely prohibiting their
importation—with what result? The develop-
ment of the industry in England, and as a conse-
quence the invention of the power-loom. Had it
not been for that prohibitory act the world
might for centuries have had to depend on the
ryots of India for cotton fabrics.
Does the free-trader believe that the end of
discovery and invention has been reached 2 If
the action of England proved a benefaction to
humanity by promoting variety of industries
among a race superior to the Hindoos, even
though unfavorably situated, why should we not
expect further advance of invention by promo-
tion and encouragement of diversity of industries
among the same race on this continent, situated
infinitely more favorably, where every induce-
ment is held out to ingenuity and where every
aspiration finds encouragement? The age of
invention is not past. On the contrary, we have
seen but its opening day.
Our workingmen, who, with hand and brain
have been busy devising new labor-saving pro-
cesses, have year by year reduced the cost to the
consumer without reducing the wages of the
producer. They have cheapened the article with-
out cheapening the artisan. Had we not had
this great gathering of skilled mechanics, well
fed, well clothed, well housed, with all the
energy and aspiration that prosperity begets,
thousands of labor-saving inventions would have
been postponed to the far future. Why is it
that Americans are recognized the world over
as natural inventors? It is because they are
the best fed and best paid of all the people of
the earth.
A people accustomed to low physical condi-
tions and depressing social surroundings, de-
prived of aspiration and liberty, Čan never
possess the fullest inventive faculty. Men en-
gaged in a hunt for mere animal subsistence are
too near the starvation line to give thought to
invention. In proportion as the intensity of
this pursuit relaxes thought is born, imagina-
tion expands, invention develops, and men inves-
tigate the subtle forces of nature. Accordingly
we find that for the past quarter of a century,
under the fostering care of the protective tariff,
this Republic has not merely outstripped all other
nations in the extent of its industrial develop-
ment, but far exceeded its own previous history.
As we exclude the contract and the
pauper laborer, why admit their goods?—
Our free-trade friends vote for laws intended to
keep out that class of labor known as contract
labor. Yet the objections that apply to the
contract laborer himself apply with greater force
to his goods, the products of his labor. If he is .
“cheap,” his goods are cheaper. If he deprives
our workmen of their work; so do his goods.
There is no logic in excluding the one and ad-
mitting the other. To be consistent the Demo-
cratic party should oppose all laws that restrict
the immigration of contract laborers, for they
bring what that party regard as the most desir-
able attribute which society can covet, namely,
cheapness. - .
While assisting the Republicans in the passage
of laws to keep out the cheap laborer, the Demo-
crats have no objection to his remaining in his
own country, and while receiving much less
wages than American labor receives, shipping
annually millions of boxes and bales of his goods
in here to be sold in competition with the pro-
ducts of American labor. I maintain that it
were better to have the laborer than the products
of his labor. --- *-
We can reason with the laborer—what
argument can be used with bales of
goods?—The foreign workfian coming here
5I
becomes inspired by his new-found freedom,
Belonging to our own race, he becomes moved
by higher aspirations; he soon joins the labor
associations of his American fellow-workers; he
becomes in all senses, except that of birth, a
true American. With him our workmen can
reason; to him they can appeal. But what ar-
gument can be used with boxes and bales of
goods? How can men reason with a pair of
blankets or of shoes So, as long as the foreign
articles are on the shelves of our merchants,
American labor must constantly tend to equali-
zation of conditions with those who make them.
Our workmen will not accept European condi-
tions so long as there is an acre of unoccupied
land in the country. They will prefer to take
the land. In doing so they take from our far-
mers one consumer; and worse, add a producer
and a competitor.
If cheapness is the desideratum the contract
laborers are the very laborers who should be
brought in. If they come to this country in
person, then to the extent that they consume
they will furnish a market for our farm products,
and will consume infinitely more of those pro-
ducts here than they would consume in Europe.
Would it not be better for the American
farmer to have the European laborer brought in
person to the neighborhood of the American
farm, where he will earn American wages, such
as he had never earned before, eat the products
of American agriculture, as he had never eaten
before, and pay for them two or three-fold what
he had paid before, than to send those products
across the ocean to be sold to the same laborer
under conditions which would render it impossible
for him to pay the cost of their production? If
We are to have no tariff, our people, farmers and
mechanics alike, will be obliged to compete not
merely with the pauper laborer who comes here,
but with the pauper laborer who does not. If
our people have to compete with pauper labor,
they had better compete with it here than to
compete with it in foreign lands.
Can our workmen compete with Euro-
pean prison labor?—Suppose the govern-
ments of Europe should organize in their prisons
great systems of manufacture, with all the most
modern machinery, set their prisoners to work,
and ship the products of their labor to this coun-
try, will it for a moment be contended that the
product of the labor of our workmen could com-
pete in the home market or in any market with
that class of merchandise? It will at once be
admitted that the prisoners receive but the barest
necessaries of existence. Yet according to the
statements of all witnesses there are millions of
people in Europe, outside the prisons, who, in all
the essentials of life except greater liberty of
movement, are no better off than the prisoners.
Should our workmen be subjected to competition
with those merely that some non-producers may,
for the moment, be able to save a few cents?
Or with the Chinese?—Suppose the people
of China, by the aid of European or American
superintending skill and the adoption of the lat-
est improved machinery for manufacturing cot-
ton goods, should undertake to compete with
Europe and America in the manufacture of such
goods. With their hundreds of millions of cheap
and imitative laborers they would soon become
the most extensive manufacturers of such goods
in the world. If we imported their cottons it
would be in vain that we excluded themselves.”
Should the Chinaman come here in person,
while he would be an undesirable accession to our
population, while he would not amalgamate with
us, and could never become part or parcel of our
civilization, we could at least compel him to pay
his share of the expenses of the Government
under which he conducted business. But with
free trade, with the unhindered power of entrance
given to the product of his labor performed in
China, he would contribute nothing to that object,
but, while carrying on his business practically
among us, and under the protection of our Gov-
ernment, would drive all men of our own race
entirely out of any business which the Chinese
might invade. g
The two faculties that most distinguish races
of men from one another are the creative and
imitative faculties, ſhe creative, inventive or
originating faculty is practically confined to the
Western races. The oriental and all other races,
constituting the great bulk of mankind, are
-wholly imitative. Of the white race, our coun-
trymen are the most inventive and original. We
have, therefore, most to lose in arming the imi-
tative nations with latest developments of inven-
tive genius, With our latest machinery in their
– , 52
possession, the products of their labor trans-
ported to our shores—freights costing practically
nothing—can crush out the life of our industries.
Shall the men of originating force and con-
structive genius in this country have no protec-
tion against this class of labor wherever per-.
formed—whether abroad or here 7 º'
If the European pauper laborer is to
Control our industrial affairs; why not,
with as much reason, our political af-
fairs?—Under the doctrine of the Democratic
party, while the foreign laborer might remain
physically in his own country, he would be here
no less actually in the form of boxes and bales
of goods.
Suppose we extend the illustration a little.
Since the foreign laborers can exercise their
vocations in this country without their personal
presence; since, with boxes and bales by the mil-
lion, containing their cheap goods, they can con-
trol our industrial conditions, the basis and foun-
dation of our people's prosperity and indepen-
dence, why not entitle them to send here, at each
recurring period of our general elections, boxes
and bales containing countless millions of their
cheap votes, that they may thus be enabled to
destroy the policy of protection and secure a
..more perfect “freedom” of trade?
I have already, on another occasion, quoted
the words of Sir Lyon Playfair, in the British
House of Commons, to the effect that if you har-
ness a racer to a dray-horse you may slightly
improve the speed of the dray-horse, but it will
be at therexpense of the racer. So, by harness-
ing a proud, free, aspiring, and inventive people
to a people dispirited, hopeless, and unaspiring,
you may succeed in elevating to a slight extent
the condition of the second class, but it can only
be at the grievous expense of the first. It may
dost us something more to keep our “stock,” Mr.
President, but all that we have consists of
“racers.” º
What has the tariff done?—The tariff has
protected our people against the competition of
the under-paid and under-fed workmen of foreign
countries.
The condition of those people is such that no
friend of humanity can wish to see it duplicated
On this continent,
The ruling classes of Europe consist of count-
less numbers of aristocratic idlers who, at the .
expense of the masses, consume of the products
of land and labor, without themselves creating
wealth to the value of a blade of grass.
During the feudal ages their ancestors, or
predecessors in privilege, secured a monopoly of
the land, which they still hold out of reach of
the masses. They maintain their power and
privileges by the aid of standing armies com-
posed of millions of men who, also at the expense
of the masses, consume without producing.
These great swarms of idle men of both classes
live on the producers and eat up their substance.
It is a fair estimate that at least one-half the
products of the labor of Europe are practically
confiscated to support and maintain in idleness
the classes named.
After centuries of what is styled a “high
civilization” we still see the great body of the
European people sunk in the lowest condition of
ignorance and misery—millions of them often,
if not always, on the verge of starvation. We
see those millions unable to grasp the meaning
of liberty, forbidden to think for themselves,
unwilling or unable to assert their manhood, and,
while not devoid of the aspirations of their race,
so depressed by their conditions and environ-
ment as to lack the independence and self-asser-
tion that characterize the workers of the United
States.
The tariff has operated to bar out from com-
petition with our people the peoples of those
countries. That is precisely what a tariff pro-
perly adjusted should do and is intended to do.
At the same time it has kept the people of our
own country busy in their shops and laboratories
working, investigating, and inventing.
It has developed our workmen and
thus promoted production.—The discipline
and training thus received by virtue of the pro-
tective policy of the country has produced here
a class of workmen the like of which has never
, been seen in the history of the world. Intelli-
gent, fearless, aspiring, they are men fit to con-
stitute a great nation and to be citizens of a
great Republic. As the workers must always
form the great bulk of the people, so must they
constitute the bulwark of the nation. It is on
their love of liberty that republican government
depends. They man the armies in time of war
and contribute to the country all the wealth it
has, whether in war or peace. Their prosperity,
therefore, should be the especial concern of the
Republic. It is impossible that true patriotism,
virtue, or progress among the masses should
exist in the presence of ignorance and squalor.
The industries which have been most highly
protected in this country are those in which
not only the greatest improvements have been
effected, but the greatest reductions of price
have taken place. Such reductions, however,
are not those that result from the cheapening of
men or the crushing out of humanity. They are
the result of the cheapening of methods by re-
quiring less sacrifice to be expended in produc-
tion. The truth of this is evident from the fact
T that wages have not only not declined, but have
risen. *~ * *
By means of modern invention—for the most
part the work of Americans—even the servant
girl is able, with her American wages, to wear
better clothes, eat better food, and enjoy more
of all the comforts of life than could Queen
Elizabeth have done with the income of a
monarch and all resources of her time. *
Saving of time and money by inven-
tion.—The mere pecuniary result of invention,
the saving to society, the freeing for purposes
of progress and advancement of much of the
monetary reward of toil, may be indicated by
the mere suggestion that the Sewing-machine
must save to the people of this country alone
not less than $50,000,000 a year. It enables
millions of mothers to do the sewing of their
families who could not possibly do so without
its aid.
The pecuniary value of the time saved by the
air-brake is almost incalculable.
During the year 1889 the railroads of this
country transported 476,000,000 passengers. If
one-fifth the time of all those passengers has
been saved by the efficiency of the new brake—
and no reasonable estimate can place the saving
at less—the time thus plucked from waste is so
much added to the effective working force of
the community, so much to the productive
capacities of men and to the wealth of the
nation. And so it is with a great number of
other inventions which might be named. Indeed
it might be said that the money value of the
time saved and of the greater production effected
in the United States each year by reason of in-
ventions made by the mechanics in our work-
shops far exceeds the annual sum of customs
receipts. - -
In the mere pecuniary sense therefore, even
were the tariff a tax, the stimulus which it gives
to invention by inducing effort and encouraging
the establishment in our own country of an in-
finite variety of industries is more than ample
|return for the money cost. Every penny de-
voted to the payment of tariff charges repre-
sents a ticket in the lottery of invention, from
which Society is constantly drawing prizes.
Some marvelous effects of invention.--
The marvelous effects of invention in economiz-
ing labor may be told in a few lines.
By the aid of machinery every man employed
in the manufacture of boots and shoes can now
do the Work that by hand labor alone would re-
quire the work of five men. In farm labor also
one man with machinery is equal to five without
it; in flour-mills one man under the new system
becomes equal to four under the old. In the
making of brooms one becomes equal to five; in
the making of glass jars, to eight. In the man-
ufacture of hats and tobacco one operative with
machinery becomes equal to eight without it.
The sewing machine does the work of twelve
women. In the winding of silk one person with
machinery becomes equal to ten, and in its
weaving one becomes equal to twenty. In the
manufacture of woolens one person with
machinery is equal to seventeen without it. In
the manufacture of paper one becomes equal to
Seventeen, while in the manufacture of wall- .
paper one person by the aid of machinery is
made equal to one hundred operating by hand
labor. These are some of the results of recent
invention and do not include such as are familiar
to all—the steam-engine, that infinitely multi- .
plies power; the locomotive, that destroys dis-
tance; the telegraph, that annihilates both
distance and time, and the great variety of
electrical machinery with which the world is
familiar. The wealth created by skill may be
indicated by a few facts. One pound of steel
wire worth 70 cents makes 7 ,000 screws for the
*.
*th
Waterbury watch, each sorew worth 1 cent,
making $70. cº-w
Product of 13,800 acres of land for the
product of one bar of pig-iron.—A bar of
pig-iron worth $5 made into horseshoes becomes
worth $10; into needles, $55; into pocket-knives,
$3,250; into buttons, $30,500; into watch-
springs, $276,000 ! These values are the crea-
tion of labor. In the progress of the material
from the ore-bed to the finished watch, it passes
- through hundreds of processes, in each of which
the hand and head of the deft and skillful work-
man are necessary to prepare it for the pro-
cesses that are to follow. The nation that
exchanges wheat at a dollar a bushel for foreign-
made watch-springs gives the product of 13,800
acres of land for the product of one bar of pig-
iron. $ &
Saving of farm labor.—The mechanical
industries have not neglected the farmer. The
tools of his trade have been revolutionized and
the hardships of his life materially lessened by
them. Fifty years ago agriculture was one of
the most exhausting of pursuits. The sickle, the
scythe, and the cradle were its principle instru-
ments. Their employment demanded hard and
unremitting toil. They have been superseded by
machines with the aid of which the farmer does
his work for the most part while seated and
under shade. Like a conqueror, he “drives his
team afield” and reaps, binds, and thrashes his
grain with hardly any manual labor. The ben-
eficent instruments that have thus smoothed the
rugged path of life for the farmer are the pro-
ducts of American invention. They are the
results of training and discipline received and
thought evoked in the mechanical workshops of
this country. - sº
But invention in aid of the farmer does not
end in the field. It supplies the elevators which
handle his grain, the locomotives and cars which
haul it to the markets of his own country, and
the steam-ships which carry it to distant lands.
No farmer, therefore, should favor the establish-
ment of an economic policy which would limit or
retard mechanical progress. p
Have not American workmen led the
world in inventions?—When we point to the
-reductions which have been made in the prices
54
of articles by reason of inventions which econo.
mize human labor and give to each man the
working power of many men, we are met by our
free-trade friends with the statement that this
cheapness is not a characteristic of this country
alone ; that it is seen operating all over the
world. Though the greater effectiveness of labor
be observable universally, is it not a well veri-
fied fact that the inventions of this country have
been the principal factors in securing this result?
Is it to be supposed that in this age the devel-
opments of Science, and art can be kept secret?
Is it to be supposed that an invention which
cheapens steel in this country will not cheapen
steel in England 2 Does, the Democratic party
believe that the human mind has reached the
limit of its powers—that all the secrets of the
universe have now been exposed? Are we to."
live henceforth exclusively on the discoveries of
the past, without hope and without confidence in
the future ?
It may be true that at any given moment the
foreigner may defeat us by a 30 per cent. dif-
ference in the cost of some manufactured article.
If, then, by means of American invention we
reduce our price 60 per cent. (or 30 per cent.
below the price abroad), the foreigner may imme-
diately take our invention, and by applying to it
his cheaper labor again reduce his price to a
point much below ours. It is therefore obvious
that no matter to what stage of reduction wages
or prices may be brought in this country, the
foreigner can at any given time undersell us.
Yet the Democratic policy would require us to
employ the foreigner to the exclusion of our own
Workmen. That party would concede that inven-
tion has ceased, and to secure cheapness for the
moment would abandon the certainty of future
inventions.
If labor in Europe must construct our
machinery, labor in Europe must repair
it.—If it be admitted that by reason of its
cheapness foreign labor must construct our mach-
inery, it must follow as a natural consequence
that foreign labor must repair it when out of
Order. Great establishments and plants can not
be maintained on repairs alone ; and if they could,
the expense of maintaining them for repairs
alone would be altogether disproportioned to the
results. On repairs alone our workmen could
^
55
not acquire the skill, experience and familiarity
necessary to thoroughly understand and efficiently
and promptly repair delicate and complicated
machinery. That which may be simple to the
man who made it may be of exceeding complica-
tion to him who did not.
The purchase of our machinery abroad practi.
cally necessitating repairs abroad, our people
would be absolutely deprived of all mechanical
industries and compelled to resort to agriculture
for subsistence.
This would be an extraordinary condition for
a people who have developed the greatest inven-
tive talents of the age. The most splendid
triumphs of mechanical genius during the past
quarter of a century have been effected by the
mechanicians of this Republic. The most benefi-
cent improvements in both the large and Small
economies of life for all mankind have been made.
by them. Must we require improvements now
to cease? Shall our inventors retire from the
position which a high tariff has enabled them to
occupy, that of advance agents of progress? Is
it not so probable as to amount to a certainty
that "the developments of the past are but the
first steps in the great march of improvement?
If it be true that no consideration would now
induce us to part with the sewing-machine, the
air-brake, and the thousand other valuable
devices to which we have become accustomed,
why should we be willing to set on foot an econ-
omical policy that would destroy all opportunity
for future inventions? Why subject the Ameri-
can mechanic to such competition with European
labor as would keep him always on the verge of
want? Such a condition would deprive him of
the faculty of invention. It would shut off pro-
gress; it would petrify the civilization even of
this Republic.
Judging by our experience under the protec-
tive policy, there would seem to be no limit to
the inventive powers of our people. The inven-
tive faculty is acquiring accelerated momentum.
At the present time the spirit of invention in all
departments of industry is more active than at
any period of our history. Are we willing to
permit present conditions to be declared perma-
ment. and immutable, to declare them the condi-
tions that must forever prevail for the highest
type of the human race? *
If the people are not constantly in their work-
shops or otherwise engaged in daily observation
of the working of machinery, great inventions
will come into existence only at long intervals.
Such inventions can result alone from continuous
communing with mechanism and mechanical
forces. Of this fact the great agricultural im-
plements known as “harvesters” afford an apt
illustration. In order to develop and improve
them it was necessary to secure continued ob-
servation of the process of harvesting. The
season being necessarily short in any one local-
ity, men were sent to the southern-most boundary
of the United States with directions to follow
the process northward, State by State, as the
season progressed, so that beginning in Texas *~
the tour was not ended or the fund of informa-
tion deemed complete till Minnesota and Mani-
toba were reached. e
These inventions and improvements were not
made by agriculturists, but by mechanics. In
the nature of things a knowledge of mechanical
forces was necessary to their conception and
development. Men so determined to achieve
should not, by the selfishness of the moment, be
arrested in their great career as the most in-
ventive in the history of the world.
When, by perfect equilibrium of our industries,
we shall have developed to the highest degree
the intellectuality and skill of our people, when
we shall have rounded out all their faculties of
investigation and construction, then will it be
found that what are now called the necessaries,
comforts and even luxuries of life will cease to
be objects of serious concernment; they will be
mere by-products, which all may have as matter
of course, while the great consideration will
come to be the finding of fitting work for head
and hand, and the greater development, by in-
quiry and analysis, of man's power over nature.
By doing onr own work we shall have centers.
of industry existing at short distances apart
throughout the entire extent of the continent,
affording to all engaged in mechanical trades
constant, remunerative and honorable employ-
ment, with opportunity for the development of
every aspiration. By this means the workmen
throughout the country will be brought into in--
timate touch and relation, by which the sense of
invention will be quickened. By the same means
56 • *
the agriculturist will be furnished not only with
the most remunerative of markets at his door,
but also with that which men prize beyond
pecuniary reward, the advantage of association,
with all that it implies: a higher range of social
life, schools, academies, libraries, museums,
works of art and taste, theatres, opera-houses,
and all the elements that distinguish life in com-
munities from life in isolation. -če
The people of this Republic will prefer to be
called great, not for resort to the forces that
waste and destroy, but for development and uti-
lization of the beneficent powers of production
by giving to mankind great discoveries and
inventions in all departments of science and art.
In this way and this only can they fulfil their
high mission among the peoples of the earth.
The South and the protective tariff.
Mr. President, yesterday I heard the Senator
from Texas [MR. REAGAN] take exception to a
statement made by the Senator from Iowa [Mr.
ALLISON], who denied that the tariff bill under
consideration was sectional in its bearing. The
Senator from Iowa stated that the tariff bill
operated equally upon all the people and upon
every section of the country, and that it could
not truthfully be said that it was either section-
al or unfair. The statement of the Senator from
Texas has been repeated by almost every Senator
on that side of the Chamber.
The Senator from Texas stated that the North
and East are manufacturing countries, while the
West and South are agricultural countries.
Why, Mr. President, there was a time in this
world when countries had not arrived at even
the agricultural stage. First came the pastoral
condition; then the agricultural; then the manu-
facturing. States can have and should have
both agriculture and manufactures. Illinois is
as great an agricultural State as Texas, and yet
Illinois is one of the greatest manufacturing
States in the Union. Pennsylvania is as great
an agricultural State as any State in the South,
yet Pennsylvania has the most extensive manu-
factures. ~
Is there any law in the United States which
prevents the people of Texas, with their immense
herds of sheep, from utilizing the wool obtained
from them and spinning it into cloth 2 Is there
any-law which prevents them from taking their
surplus cotton and spinning and weaving it into
cloth, as is done in Connecticut or Massachusetts?
The Senator who last occupied the floor [Mr.
VANCE] complained that an enormous wrong had
béen inflicted and great discrimination had been
made because binding-twine had been put upon
the free-list and cotton-ties and cotton-bagging
had been subjected to a duty. I disagree with
the gentlemen who voted for free binding-twine,
for I believe that the dropping of any industry
from the dutiable list-affects, so far as it goes,
every industry and the wages of every artisan
throughout the country: I believe, in order to
have a perfect system of industry, there must be
an equilibrium of all industries and that this
country must produce ºverything which by nature
it is capable of producing.
When we know that great fields of iron ore
lie in the mountains of Alabama, Tennessee,
"Georgia, and other States of the South, when we
know that throughout those States there are
great deposits of limestone and all that is neces-
sary for fluxing, great deposits of coal fit for
cokeing and for steam in the very region where
the cotton is produced, I should be surprised to
be told that these people, having the chance to
take that ore and coal and make iron, could not
do it. Especially would it be strange if they
could not make cotton-ties, for they belong to
one of the rudimentary processes of iron-making. *
If those who favor this tariff are engaged in
perpetrating a wrong upon them, why do they
not do this work themselves? Do they plead
mental inferiority ?
Mr. REAGAN. Will the Senator allow me to
answer him in a word?
Mr. JonBS, of Nevada. Certainly.
Mr. REAGAN. The capital is concentrated ifi
the older portions of the country, and, under the
influence of legislation which has been passed
capital has been added to capital, and the agri-
cultural portions of the country have been so
taxed for the support of manufacturers that
they could not accumulate money. **
Mr. JONES, of Nevada. That is the most
astounding proposition I ever heard in my life,
that one of the very richest States in the Union
can not put up a cotton factory. -
Mr. REAGAN. I meant, the general business
of manufacturing.
57
Mr. Jones, of Nevada. Build one factory and
that will build another, and the second will
build a third. There must be a beginning. It
Was but a short time since the monopoly of
manufacturing was east of the Blue Ridge
Mountains and north of the State of Maryland.
Now the center of manufacturing has gone over.
the mountains and into the Western country.
All that these Western people had at the start
were their courage and their enterprise. The
manufactories had always been in Massachusetts,
Connecticut, Rhode Island, and the other Eastern
States, but now the manufacturing supremacy of
those States have passed away.
With a tariff law operating uniformly over a
great country like this, when industries are es-
tablished in certain localities and other localities
afterward develop, it will sometimes happen that
hardships will accrue to individuals. Such hard-
ships are now being suffered in the Eastern
States. People who established in those States
manufactures of barbed wire and other articles
find that the same class of manufactures are
now not only nearer to the points at which
barbed wire and other articles are wanted, but
the ore or raw material is nearer to the mill as
is also the coal necessary to make it. But, like
men, they stand up. to the consequences of the
changé. They say if we have made a mistake in
locating our industries in an improper situation
we must suffer the loss and must readjust our
workshops.
can make something else. It is not the fault of
the law that the industries are more profitably
pursued elsewhere.
Where the law bears equally on all, capital
will adjust itself to the demands of business and
to the probabilities of profit in all parts of the
country. The law gives equal facilities to every
man in every part of this country to engage in
any business he chooses.
tuency are concerned, I should be ashamed to
claim that they are robbed; for, I can assure
you, whenever there is any chance to get a por-
tion of the plunder, if they do not get their share
they will not complain. [Laughter.] They are
going to be alert and get in. The trouble with
the constituents of the Senator from Texas is
that they have been asleep, they have not fully
“caught on” to the movement, but we have seen
If we can not make barbed wire we
As far as my consti-
signs lately that they will do so. Throughout
the entire State of Virginia such a movement as
has not been heretofore known is now going on,
building up the industries of that State, and if
the protective policy shall continue it will make
that State one of the great manufacturing States
of the Union. So it is in Alabama; so in Tennes-
see; and so it will be throughout the Union if
the protective policy shall remain the policy of
the country. . . - .
Statistics of recent progress.--What
has the tariff done for the South? In a few
years of the new policy that section has shown
more progress than in a century it would have
shown under the old. In 1880. the number of
cotton mills in that section was 142; in ten
years they have doubled. In 1880 the number
of bales of cotton consumed by those mills was
180,000 pounds; in 1889 it was 500,000 pounds.
In 1880 the pig-iron produced in the South
amounted to 350,000 tons; in 1889, to 1,780,000.
tons. In the same period, the product of wood-
working establishments has increased by 225 per
cent. In 1880 the amount of coal mined in
the South was 2,000,000 tons; in 1889 it was
13,000,000 tons. In 1880 the total value of
the manufactured products of the South was
$3,300,000; in 1889 it was $30,000,000!
The railroad mileage of the South has increased
from 17,808 miles in 1880 to over 40,000 miles
in 1889. The assessed value of Southern prop-
erty, which in 1880 was $2,000,000,000, is now
estimated at $4,000,000,000.
These figures show that a new era has opened
for the South, that at last the brain and hand
are working together, and that with a continued
policy of protection the ultimate development of
all the material resources of that section is
assured.
In order to show that some progress is mak-
ing, even in invention, I will cite the advance
shown in a few of the Southern States in the
ratio between the number of patents and the
numbers of white population since 1870. The
figures of the Eleventh Census not being yet
available I have based my computation of popu-
lation for 1889 on the estimates of the New
York World Almanac for 1890. As in the case
of the figures cited earlier, I have in this case
also excluded all consideration of the numbers
53
of the recently manumitted class, from whom, in
the nature of things, no great creative effort
could yet be expected.
States. s 1870, 1889,
Alabama, 1 to every . . . . . . . . . . . . . . 14,483 10,37;
Arkansas, 1 to every. . . . . . . . . . . . . . 32,919 11,160
Georgia, 1 to every . . . . . . . . . . . . . . . 7,888 6,222
Texas, 1 to every. . . . . . . . . . . . . . . . . . 11,764 5,261
The tariff therefore stands for aggregation
because it tends to develop aggregation. It
implies that all the wants of the country can be
supplied by our own people. It stands for
association, for strength, for homogeneity, for
national self-development. It promotes equality
of material conditions among our own people
and prevents a descent to the lower conditions
of life that obtain in other countries. In a free
and self-governing republic equality of condi-
tions must precede and accompany a progressive
and enduring civilization. Those conditions are
impossible without a protective tariff. It would
be folly for us, situated as we are, to attempt
the task of equalizing conditions of living with
those of foreign peoples of lower material
- conditions. sº
The tariff encourages the pursuit of all the
industries in our own country; it therefore tends
to symmetry of industrial development.
Free trade and what is called “revenue re-
form,” which practically amounts to the same
thing, would keep us from developing our own
resources and compel us throughout all our
history to be industrially dependent upon other
nations. In so far as it permitted progress the
development would be uneven, one-sided, and un-
symmetrical. It tends to the creation of castes,
one consisting of the very rich, few in numbers,
... but great in power; the other of an enormous
mass of the very poor. The reason why men
preferred slavery to freedom was the same that
impels them to oppose a protective policy,
namely, to obtain the labor and sacrifice of others
in return for less labor and sacrifice of their own.
For our country, therefore, free trade and
“revenue reform” stand for national depend-
ence, inequality, and waste. While the protec-
tive tariff cheapens products by promoting
inventions that elevate humanity, free trade and
so called “revenue reform” would cheapen pro-
ducts by degrading humanity,
It will not be matter of surprise—indeed it
seems highly probable—that under the operation
of the measure now pending in this body the
industries of the éountry will within-ten years
i be brought to an equilibrium, so that we shali
have practically no surplus staples for export.
The farmer and the protective policy.—
Agriculture, though the basis of all other indus-
tries, can never of itself develop the highest
form of social life. With agriculture, popula-
tion must always be sparse. Its fundamental
condition is, not that men shall come together
in aggregations, but that they shall stand apart.
The labor of the field is, as a rule, labor of isola-
tion. In it men are a series of units, not an
aggregation. Many of them have selected that
occupation, not from choice, but from necessity;
from the lack of other opportunities; from the
absence in their community of that amplitude
and variety of industrial development necessary
to afford scope and play to the varying tastes
and adaptabilitics of men. -
The recent organization of Farmers' Alliances
in this country is an indication that the farmer
is beginning to understand the needs of associa- -
tion. He realizes that men in isolation are
ciphers in comparison with those living in
aggregations, where they can bring their in-
fluence to bear on their Government as well as
on their fellow-citizens in other occupations.
He has observed that the movements which have
been instituted by populous communities and
associations have been, to a large degree, suc-
cessful. He is learning the strength which lies
in association and organization. The popularity
of the Farmers’ Alliances is derived from the
awakened sense of pleasure and the gratified
sense of power which association and aggrega-
tion bring to a class hitherto comparatively
isolated.
It has its genesis in the yearning for society.
The American farmer wishes to be in touch with
his fellows. Like all other Americans he longs
for broader intºllectual interchange. His hopes
and aspirations are reflected in his children,
who, often at an early age, fly from the isolation
and monotony of the farm to seek the life and
bustle of the city. *
To enable the farmers to realize the full bene-
fit of the associative tendency of the age, to
59
give to their occupation the strength and in-
fluence as well as the pecuniary reward to which
it is entitled, they should not be content with
organizing Alliances; they should aid in the
organization and development of communities in
proximity to their farms.
- For this reason there is no class of men in
this country whose interests are so absolutely
bound up with and dependent on the policy of
protection as the farmers. Not only is that the
policy which gives birth to and develops com-
munities in proximity to the home of the farmer,
but it is the only economic policy consistent
with the existence of the independent working
farmer.
Suggestion of the effect of free trade
on agriculture.—Men who seriously reflect
on the subject will find it difficult to escape the
conclusion that long persistence in a policy of
free trade would, by destroying the present
system of farming, effect the ruin of the Repub-
lic. As our population increased (as increase it
- will, and rapidly) the absence of a sufficiency of
mechanical industries would drive people more
and more into agriculture. As there would be
but little opportunity for the investment of
capital, except in land, which the people must
have, large capitalists would be quick to grasp
their opportunity. Their only resource for pro-
fit would be in the ownership of great landed
estates, on which to exploit multitudes of tenant
farmers, over whom they would exercise the
dogmatic authority of lords-paramount.
The free American farmer of to-day would dis-
appear, to be replaced at first by the lessee, next
by the tenant at will, and later on, in the future,
as the exploitation continued and became more
intense, by men who, however free in law, would
in fact, like the Coloni of Rome, become attach-
ments of the soil on which they worked, for all
practical purposes the personal property of the
landed magnate. Let us take a lesson from his-
tory. “Great estates,” said Pliny, “ruined Italy.”
The greed and selfishness that destroyed Italy
are still doing their perfect work among the
nations of the earth.
An excellent authority” estimates that in order
*Mr. J. R. Dodge, Statistician of the Depart-
ment of Agriculture,
to have an equilibrium between agriculture and
all other industries in any nation the number of
persons engaged in agriculture should not exceed
one-third the number cngaged in all occupations.
That is the proportion whose làbor, properly
applied, can produce the food supply of all the
people without leaving a surplus. If more than
this proportion are farmers their competition
with one another reduces to an abnormal and
unremunerative degree the compensation which
they should receive in so arduous an occupation.
According to the census of 1880 the number of
Separate farms in the United States was
4,008,907; the number of persons engaged in
agriculture, 7,670,493; the number of workmen
engaged in all occupations, 17392,099. The
farming class, therefore, constituted 44 per cent.
of the whole working body.
In the absence of diversiſied industries,
tendency to overcrowding of the farm-
ers’ occupation.—The constant tendency, in
the absence of sufficient protection and encour-
agement for manufacturing industries, is to an
overproportion of cultivators of the soil. Agri-
culture being a primitive occupation, requiring
for its conduct on a small scale but little capital
and comparatively little skill, may be undertaken
by persons who for any reason fail to find occur
p3tion in any of the great fields of manufacture.
Whatever, therefore, tends to discourage the
establishment or maintenance of manufactures
or to limit their variety tends in the same degree
to encourage men to engage in agriculture.
That is to say, men who fail to find employment
in their accustomed occupation, having no skill
in any other, are necessarily thrown back to the
land, from which by hard work they may hope
to secure at least a subsistence, Workmen in
any and every industry thrown out of employ-
ment by a reduction of the tariff, therefore,
swell the great army of those who cultivate the
soil. Every such addition to the number of agri-
culturists not only tends by competition to
reduce the price of agricultural products, but at
the same time reduces the number of persons
| who would be consumers of those products.
According -as we increase the numbers of our
skilled workmen, we do not diminish the number
of farmers. As we diminish the number of
skilled workmen we increase the number of far-
* * 60
*
enough.
finers. When the farmer's occupation is invaded
he has no recourse. Not being a skilled mech-
anic he can not in turn invade some other occu-
pation. All mechanics can become farmers
without preparatory training; no farmer can
become a mechanic without such training. When
We shall possess the utmost diversity and multi-
plication of industries, therefore, we shall have
comparatively fewer farmers and a relatively
greater number engaged in skilled industries.
The trend of population from farming to indus-
trial pursuits will then have a tendency to make
manufactured articles relatively cheaper and
farm products relatively dearer. The farmer,
therefore, has everything to gain by a policy
which induces the people of this country to do
all their own work. *.
Instead of precipitating increased numbers into
farming by lowering the tariff and reducing the
numbers employed in the work-shops, if we can
Succeed by a high tariff in widening our indus-
trial development and rendering it unnecessary
for our skilled workmen to have recourse to the
land, our natural increase of population will in a
few years enable our factories to consume all
the products of our farms.
In a properly adjusted system of industry the
artisan *s as necessary to the agriculturist as
one blade of a pair of shears is to the other;
and both are indispensable to the state. It may
be said by the free-trader that the foreign
mechanic can supplement the American agricul-
turist and that he will cost less. But this"
places the agriculturist in one country and the
consumer of his products in another, 3,000 miles
away. The producer in Europe has but little
means wherewith to pay for the agricultural pro-
ducts of our farmers; and if he be a good work-
man, he is where the sons of our farmers can
have none of the advantages of association with
him or of instruction in his art.
The protective policy not begun soon
There is much truth in the statement
made by the free-traders that the farmers of the
United States do not receive the full benefit of
the protective tariff. The cause of this, how-
ever, is not that usually advanced by the free-
traders, nor is it one which their policy would in
any degree tend to remove. On the contrary it
would but intensify that cause and bring disaster.
f *
where now there is at least a chance for pföğa
perity. The true reason why the tariff policy
does not bring to the agriculturist the full meas-
ure of prosperity of which it is capable is because
that policy was not inaugurated earlier.
Had the protective policy been adopted a
quarter of a century sooner than it was the
entire country would now be dotted with manu-
facturing centers—not merely cities separated
by long distances, but busy towns and villages a
few miles apart, in which the farmers of the
neighborhood would find ready and remunerative
markets. In other words, in a properly adjusted
system of industries the farms would feed the
factories and the factories would consume all the
products of the farms. There would then-be no
overproduction of farm products for export ; the
“home” market (in the strict sense of the term)
would consume all that would be produced, and
the farmers would have the benefits and profits
'coming from direct sales to consumers, without
the intervention of brokers, commission mer-
chants, railroad magnates, and the army of mid-
dle-men who now appropriate what under a better
system would be the farmer's profits. The delay
in the adoption of a distinctly protective policy
postponed till the coming generation that fullness
of development and that variety of industry
which, if a strong tariff be maintained, we shall
at no distant day SGCUIre.
As our population has increased by immigra-
tion and natural growth the meagerness of our
industrial development and the absence of variety
in such industries as were established afforded in-
sufficient accomodation for our rapidly increasing
numbers. Hence very, many men who would
have preferred town or village life and who had
neither taste nor inclination for agriculture were
compelled to resort to it for a living. And thus
the lot of the farmers, already sufficiently hard,
became gradually harder because of the dispro-
portionate increase in their numbers, and can
not materially improve till the manufacturing
activities of the country are developed in pro-
portion to the numbers engaged in agriculture;
in other words, until an equilibrium is established
between the manufacturing and agricultural
industries. * ... " …”
Free trade would injure the farmer.—
Instead, therefore, of the free-trade or low-tariff

* 61
policy benefiting the farmer, it would seriously
injure him. Whatever may be said against a
tariff, it is undeniable that it induces the estab-
\ lishment and maintenance of manufacturing
enterprises. Thereby it gives employment to
labor and keeps the wheels of.industry and com-
merce in motion. The men who are to eat -and
wear the products of the farm can pay for them
only from the fund created by those manufact-
ured products, for the money result of a manu-
facture does not end with the making of the
article, but follows it through every movement
of its transportation and every transfer of its
ownership.
Any reduction of the tariff, therefore, which
throws factory operatives out of employment
must result in throwing men out of employment
on railroads, steamships, and in city stores and
offices. The products of factory labor, being no
longer transported, will require no merchants to
“place” them, no salesmen to induce customers
in city stores to buy them, no book-keeepers or
clerks to keep account of them: nor, indeed, will
the city store itself be required in which to expose
them for sale. Thus the politician who formu-
lates a tariff bill which results in closing up a
factory in the remotest corner of the Union or
reduces the reasonable profit of its business is
but touching the electric button that rings the
. alarm in every avenue of labor throughout the
land, and loudest of all in the open highway,
where every farmer may hear.
• A policy of varied industries the birth-
right of the farmer’s child.—In a strictly
agricultural community, if a farmer desires to
give his children that broad character of educa-
tion necessary to fit them to enjoy an advanced
civilization and to perform with the highest de-
gree of efficiency the duties of citizenship in a
country which depends for governmental direc-
tion upon the intelligence and sound judgment of
its people, he must send his children away from
home; whereas if manufacturing centers were
established within convenient distances and in
large numbers throughout the country, all the
facilities for education would be almost at his.
door. Hence, his children could remain at home
and have the advantage of parental supervision
and authority at that important period; and the
farmer and his wife would find in their home that
Solace of life, society, which present conditions
render impossible.
There would also be opportunity afforded the
farmer's children to enter upon the occupations
to which by taste and nature they may be adapted.
With a protective tariff that confines the work
of this country to the people of this country,
these young people would not be turned out at
maturity to compete with the starving labor of
other lands. They would not find themselves at
the threshold of their career engaged in a hand-
to-hand struggle for existence with men who
have no alternative but to work at low wages or .
starve; men who, having no access to land, must
accept proffered conditions, however hard. Does
not the farmer wish for his children all the op-
portunities of advancement which they have the
ability to utilize? Is not his whole life charac-
terized by an unselfish desire to advance their
interests?
The time is close at hand, if not already upon
us, when all available or desirable land in this:
country will be held in private ownership. From
what we know of farming and of the prices that
can be obtained for the products of the farm all
over the world, it is out of the question to sup-
pose that from the products of his farm any
farmer of average condition can take care of his
children as they grow up and go out into life.
Imagine the case of the farmer who has three or
four children growing into manhood and woman-
hood. He can not, from the profits of his farm,
buy from private owners three or four quarter-
sections of land with which to start the young
people in the world; and, were he able to do so,
they would necessarily be engaging in compe-
tition with himself in the production of farm
products, increasing the supply and lowering the
price. Nor can he take into the old homestead
the wives or the husbands of his children, for it
would be impossible for them all to make a living
on an averaged-sized farm.
Even were that practicable it is not to be
Supposed that, with varying tastes and aptitudes,
all the sons or sons-in-law of farmers would be
contented to go into farming, or would, by so
doing, be putting their lives to the best use,
whether for themselves or their country. The
children of even one hundred thousand farmers
would evince too great a variety of tastes to
a “
O2,
make.it conceivable that all of them would be
contented on farms. How much more true is
this of the children of four million farmers |
A large variety of industries and occupations
would be indispensable to enable them to make
out of their lives the most that is possible by enabl–
ing each to find that vocation for which his talents
might fit him.
For the training and development of whatever
talent he may have the farmer's boy must seek
instruction in his own country. Unlike the son
of the city merchant or of the successful lawyer,
** physician, or artist, the farmer's son can not
spend years in the study of an occupation in
foreign countries, and it is better that he should
not. THe who takes high talent into the machine-
shop contributes more to the elevation and ad-
vancement of humanity than the prize-scholar of
the university. -
A policy of varied industries is therefore at
once an heirloom to the farmer's child and his
birthright. When he steps out of the old home-
stead (as, in ninety-nine cases in a hundred, step
out he must) he should find established in his own
country—and the nearer to his home the better—
such diversity of industries as to enable him to
select for his life work that which best suits his
taste and temperament.
pursuit and rendering service to his employer he
should receive such compensation as will enable
him to live as an American should live. This he
will not receive unless employérs need workmen
and compete for their labor as keenly as work-
men compete with each other for employment.—
If all workmen crowd into a few pursuits, the
labor market is overstocked and wages tend to a
minimum. If the working population be distri-
buted throughout a variety of occupations there
will be no surplusage of labor in any of them,
and there will be as much compétition among
employers to find workmen as among workmen
to find employment. -
Inasmuch as the farmers are the most numer-
ous class of the community, their children will
therefore benefit more by diversity and multipli-
. Gation of industry than the children of any other
class.
Disadvantages of export crops.--In ex-
porting the cereals of the country our farmers,
as experience has shown, have not only shipped
In following his chosen:
the crop, but at each shipment have sent out of
the country a portion of their land. They might
as well have reduced the quantity of the land as
to reduce its productive power.- There is a
great and growing necessity for a larger develop-
ment and growth of the classes of crops that
do not appreciably impoverish the soil, but for
which now, in the absence of the local markets
that, with a more general diffusion of manu-
factures, would exist, there is not sufficient
demand to compensate for the labor necessary
to their production.
The farmer who is simply producing things
suitable for export must of necessity confine
himself to the cultivation of crops that will bear
distant transportation. Hence, much of his
time is not fully occupied. There are probably
ten million persons now engaged in the farming
industry in this country. Assuming that there
is but a loss of one day's time each week by
each man, what an enormous economic loss is
suffered by the country !
Advantages of lighter crops.-If the
American farmer were working not for the in-
habitants of other continents, but for his own
neighborhood, he would combine with the culti-
vation of the cereals the profitable culture of
various other products of the field, the garden,
and the orchard, that not only would not exhaust
the soil, but would supply to his own family and
his neighbors certain favored articles of food
which are now too generally denied them.
For want of local centers of population, which
would constitute a market for the tender and
more palatable products of agriculture, such as
the luscious fruits and berries and the more
palatable vegetables, the farmer's family is
itself, in many cases, deprived of those articles,
and the table which of all others should be laden
with what the non-agricultural communities de-
nominate the delicacies and luxuries of life is .
often spread with uninviting and unpalatable
food. *
So, too, what pleasure and profit may not be
had in the cultivation of flowers, those emblems
of refinement and purity, of which every house-
hold in the land should have its daily quota.
Millions of dollars are annually expended in the
cities of the country for the adornment and
delight which these furnish. With centers of
63
mechanical industry in the neighborhood of his
hömé, the farmer would find ready sale for large
quantities of flowers, and in their culture could
turn to interesting and profitable account many
hours now necessarily unoccupied, and add new
- zest and pleasure to the lives of all the members
of his household. e
Those little additions to life are filled with
importance for individual men and women; they
change the standard of living from the lowest to
the highest grade. When the industries of the
country are hot in equilibrium, the farmer is
without customers for many products that under
proper conditions would prove highly profitable.
At the same time the workmen of the country
and their families lose many delicacies and re-
finements, are deprived of the very things that
märk the difference between the hard neces-
säries and the luxuries of life.
In agricultural communities, when young girls
or women are deprived of father or husband
they are left utterly helpless. Compelled to
earn a livelihood, they find no occupation open
to them. They deem themselves fortunate if
they find opportunity to lead a life of dreary
drudgery on some neighboring farm, or, sadder
still, of entering the marriage relation for the
sake of “having a home !”
. . What a boon to such girls and women would
be a neighboring village or town with manu-
facturing establishments for the lighter grades
of fabrics, affording such work as is adapted to
the physical strength and delicate organization
of their sex.
Advantages of centers of population
in pi-oximity to the farm.—As all farmers
know, agriculture, conducted in proximity to
populous communities, is an occupation wholly
different from agriculture conducted in sections
remote from population.
Under the present system, with farmers' homes
remote from centers of population, not only are
their occupants deprived of society, but the in-
telligent and aspiring young men and women
among them who have reading tastes or intel-
lectual ambitions can not gratify them. To
people in isolation, literature is expensive and
art impossible. They can not have libraries,
müseums, theatres, opera-houses. It is with
difficulty that they are able even to maintain
churches.
By being deprived of these amenities the life
of the farmer and that of each member of his
household are often rendered dreary and unin-
teresting. It may be fairly said that a few
hundred persons constitute an average agricul-
tural community in this country. If each
contributed one or two dollars toward the estab-
lishment of some work of general improvement,
the whole would make but a trifling and inade-
quate sum. As a nucleus for a library it would
serve to buy but a few books, On the other
hand, as men come together in aggregations
they may have libraries containing thousands of
volumes at a cost to each person of but a
fraction of that which it would cost an agricul-
tural community to accumulate a few.
The larger the aggregation the smaller the
amount necessary for each person to pay in
order to procure comforts, conveniences and
even luxuries. The experience of city life
teaches that the larger the audience the smaller
the amount of money needed from each in-
dividual composing it. And although all the
advantages of the largest aggregations can not
be realized in villages or the smaller towns, yet
to the extent that towns and villages are multi-
plied in agricultural sections, to that extent will
the way be opened to the farmer and his family
for the enjoyment of social opportunities.
It should, therefore, be the great aim of the
farming class to aid in securing the adoption of
Such national policies as may encourage the
establishment and maintenancé of manufactur-
ing industries in all parts of the country.
The farmers and their families will be much
more contented and happy when, in their home
Surroundings they shall have a larger measure
of the advantages of civilization; and those can
only be attained by the growth and development
of centers of industry in all parts of the country,
As it is, those engaged in agriculture spendſ
much time and money in traveling to and from
centers, to and from the nearest cities or towns,
which may be many miles distant. If centers of
population existed in proximity to the farm, the
money thus expended would be saved and the
time utilized in profitable employment,
*
64
Foreign competition.—In agriculture,
... the barbarous peoples of the world, aided by
machinery, are fully able to compete with those
that are more intellectual. With our own in-
ventions in their hands they defeat us. For
, this reason the agriculturists of the United
States should by all possible means attempt to
build up and maintain a market at home. They
should not attempt to compete with the ryots of
India, who, by the aid of improved railroad
systems and extensive canals, are now cultiva.
ting wheat in the immense plains stretching
from the base of the Himalayas to the Indian
Ocean. º
But cheapness is not to end with the competi-
tion of the Hindoo. Leaving out of view the
vast pampas of the Amazon and La Plata, the
cheapest agricultural laborers in the world will
shortly be found in the valley of the Congo,
raising illimitable quantities of wheat and all
the other cereals which our farmers now export.
The foreign competition to which the American
farmer is to be subjected has therefore hardly
commenced. For the moment, owing to the bene-
ficent effects of the silver bill recently passed in
this body, the competition is not so keen as
heretofore, but the danger still threatens.
The combined inventions of the world are at
the disposal of all who cultivate land, and what-
ever injury may not be inflicted upon us by
cheap labor, standing alone, will be inflicted
by ingenious machinery in the hands of the
cheap laborer. The time is coming, therefore,
when, if the industries of this country are not
developed to their widest and greatest extent
and variety, so that the factories and machine-
shops may consume all the products of our
"farms, the American farmer will experience a
competition the like of which has never been
known in the history of the world.
Possible home competition.—But aside
from foreign competition how would the farmers
feel if, with their occupation already over-"
crowded, one-half the remaining population,
deprived of their industries, should go into farm-
ing 2 The farmer's surplus, already too great,
would then be quadrupled, and would not sell for
one-half the present price. *...
Our free-trade friends inform the farmer that
by getting cheaply the things he buys he will
improve his condition, and that he should there- .
fore oppose a protective tariff. They fail to
inform him that as the prices of manufactured
articles decline the greater become the incentive
and the necessity for the makers of those arti-
cles to invade the farmer's domain.
To illustrate the ever-widening ill-effects,
especially to the farmer, of a policy which
encourages foreign importations without regard"
to the permanent welfare of the community, let
us suppose that all who wanted crockery at the
lowest price to-day should buy it abroad, which,
were there no tariff, they would undoubtedly do.
That would destroy the crockery manufacture of
the United States and throw out of employment
all persons engaged in it, obliging them to invade
other occupations, and, by overstocking the labor
market in such occupations, materially reduceſ
the compensation of the people already engaged.
in them, or throw them altogether out of employ-
ment. & *
So, also, such of our citizens as should insist
on obtaining woolen goods at the cheapest price
to-day, irrespective of the interests of their own
communities, would find them abroad. If all
bought foreign cloths our woolen industries would
decay, and the large numbers of persons to whom
they now give employment would be compelled to
distribute themselves among other occupations,
glutting the labor market wherever they went,
and thus reducing wages.
Again, those desiring to obtain silk at the
cheapest price at the present moment would, in
the absence of a tariff, find it in France. If all
Americans bought their silk in France, the silk
industry in this country would be destroyed, and
all engaged in it would be compelled to enter
other occupations, either displacing numbers of
people already engaged in those occupations or
lowering their wages.
The extension of the same policy of -destruc-
*tion to the pursuits thus newly entered would in .
time subject them also to a like displacement of
labor, and so, by taking all occupations in turn,
we should find the people engaged in manufac-
turing industries thrown back from one occupa-
tion to another until all were relegated to the
cultivation of the soil, beyond which they could
not go. Where, in all this, would be the advan-
£65’
A.
tage of the farmer? He might, for a time, Sup-
ply some of his wants with less money than can
be done under the operation of a protective
tariff, but each purchase of a foreign-made
article would be an invitation to the maker of a
like American article to invade the field of the
American farmer. The only prospect of relief
to the farmer is to have people invade other
industries, not his.
, If the farmer is to pursue the “cheapness” of
the moment, without regard to the future, he
will soon find the entire population of the coun-
try, trade after trade, brought to the level of the
cheap people of whom he has been buying. A
large population of “cheap” and idle people,
such as throng the European countries, would
constitute but a poor home market for our
farmers.
It is a modern idea to give the ballot to land-
less men. European governments keep millions
of soldiers to overawe the people and repress all
serious evidences of discontent. In this country
the people themselves constitute the Government.
Better than standing armies, as security for the
peace and prosperity of a nation, is a high-spir-
ited people constantly occupied and well paid.
If by reason of the vicious distribution of
industries too many persons invade one occupa-
tion, there will be unavoidable disturbance and
distress. As all men are prone to enter farm-
ing when their own occupation fails, the farmer's
vocation is always that which there is a tendency
to overcrowd. In seasons of industrial depres-
sion, therefore, it becomes the common recep-
tacle for the displaced and disposessed of all the
other occupations. This leads naturally to
greater competition and depression.
Unrest and discontent have therefore found
expression. But if for a few years the mechani-
cal industries be permitted to remain in adjust-
ment, so that no mechanical labor shall be dis-
placed to invade the farmer's calling, the equili-
brium will be restored, consumption will over-
take production, and prosperity will mark the
lot not of the farmer only, but of every American
workman.
To the end that the adjustment and co-ordina-
tion necessary to prosperity may be reached at
the earliest period, it is absolutely indispensable
that the tariff charges upon imported goods shall
be maintained at a point sufficiently high to ren-
der certain that no attack from foreign ships can
dislodge it.
It being estimated that if one-third of the
workers of a country are engaged in agriculture
the food wants of all the people can be supplied,
it is clear that in this age, when invention and
manufactures are transforming the world, a
great economic waste would take place by a
failure of this Republic to utilize its natural
resources. The only moral justification which
can be advanced for our seizure from the Indians
of the lands of which they had so long been in
possession is that they were wasting a great
inheritance, that they were devoting an illimi-
table area of land to the sustenance of a small
population. Should we in this age devote our-
selves to agriculture alone we should effect a far
more serious waste. |
In my belief, the possibilities of development
by means of the inventions of our people surpass
the conceptions of the most exalted imagination.
After the examples we have had of American
genius for invention, to confine such a people
wholly to the labor of cultivating the soil would
be nothing short of culpable and criminal national
folly, a folly from which the present class of
independent, working farmers would suffer more
than any other class of the community.
The increased protection afforded by this bill
will, in my belief, largely add to the demand for
products of the farm by encouraging the devel-
opment of manufactures in various directions.
Taking one article alone—should we manufac-
ture all our tin-plate, of which we have been
importing in the neighborhood of $20,000,000
worth a year, employment will be given to prob-
ably 40,000 men, who, with their families, con-
stitute a population of 200,000 persons, all to
become consumers of the products of the farm.
With all industries in full operation in a coun-
try the farmer will find a market for a great
variety of articles for which he can find none if
trade be carried on at long distances. Trans-
portation is not production. It should be the
aim of every nation to dispense with unnecessary
transportation. Nothing can be more absurd
than to haul articles across the ocean to be used
by people who themselves have the skill and the
natural resources for producing those articles in
their own communities. A man sending 3,000
miles for an article which he can get within a
mile of his home is guilty of grievous waste as
well as of an injury to his community.
The farmer and “the markets of the
World.”—The free-trader points the farmer to
the “markets of the world,” and recommends
him to strain every nerve and exert every energy
to supply those markets. He advises the farmer
that his mission in life is to produce a “surplus”
which shall meet the wants of the teeming mil-
lions of other continents.
The hope of the farmer of the United States,
however, is in the home market. The best con-
sumers of his products are his own countrymen.
They are, man for man, the greatest consumers
in the world of everything that is the product of
labor. *
66
The general power of consumption of our
people compared with that of other peoples may
be indicated in a few words, it being borne in
mind that our population is not one-twentieth
the population of the earth.
The annual production of coffee for the entire
world is stated to be 856,000 tons, of which the
United States consumes 265,000 tons, or 30 per
cent. The iron production of the world is
25,000,000 tons and of this we use over 8,000,000,
or one-third. The steel product of the world is
10,500,000 tons, of which this country uses one-
third. The total product of the world in cotton is
stated to be 11,421,000 bales of 400 pounds each,
of which this country consumes more than a
quarter. We consume nearly a third of the world’s
wool, our consumption being estimated at 600,-
000,000 pounds. We consume a third of the India
rubber of the world, nearly 40 per cent. of all the
coal mined, and more than half the tin produced.
The sugar crop of the world is stated to be
5,114,620 tons, and of this we consume 1,422,900
tons, or 28 per cent.
A comparison, by countries, of one article
alone, and that of universal consumption, will
serve as a criterion for all. The consumption in
this country of cotton is 17% pounds per annum
for each inhabitant ; in Great Britain it is 7.56
pounds to each inhabitant (not one-half that of
the United States.) In Germany, 7.53 pounds;
in Austria, 5.27 pounds (not one-third the aver-
age for this country): in Italy, 5.6 pounds; in
Russia, 3.31 pounds, not one-fifth our average.
Thus, with a population, as stated, of less than
one-twentieth that of the world, we consume
more than a quarter of the world's production of
this great staple.
The statistics of our agricultural exports for
the fiscal year 1886-'87, as reported by the
Department of Agriculture, show that, omitting
cotton and tobacco, our own people in that year
consumed 95 per cent. of all the products of our
farms. Exclusive of the two articles named the
exports were but 5 per cent. Including cotton
and tobacco the exports were 10 per cent. The
following are the figures in detail :
Valve of products of American agriculture in 1886 and of the proportion eacported in the fiscal
gear 1886–87.
+ Production | Exportation | Per
Products. (farm value). (farm value). cent
Breadstuffs :
OTD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $610,311,000 $11,790,046 1.9
Wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314,226,020 87,668, 27.9
Oats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186,137,930 343,659 .2
Barley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,840,510 691,809 2.2
Y6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.181,330 197,687 1.5
Buckwheat. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,465,120 . . . . . . . . . . . . . . . . . . . . . .
ice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 26,284 .5
Total breadstuffs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,167,161,910 100,718,318 8.6
Meats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................... ... 748,000,000 62,522,185 8.4
Poultry products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186,000,000 71,176 |......
Hides, hair, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,000,000 825,902 .9
Dairy products: tºv-
litber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192,000,000 1,487,773 .8
Cheese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000,000 6,455,438 20.2
Milk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,000,000 181,279 .1
Total meats and dairy products. . . . . . . . . . . . . . . . . . . . . . . . . . . 380,000,000 8,124,290 2.1
Textilo fibers:
Cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257,295,327 177,895,501 || 69.1
Wool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,000,000 70,202 .1
Hemp, flax, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,000,000 |... . . . . . . . . . . . . . . . . . . .
Total textile fibers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343,295,327 177,965,703 || 51.8
Vegetables:
Irish potatoes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,441,940 238,694 .3
Sweet potatoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 |... . . . . . . . . . . . . . . . . . . . .
Pease and beans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,800,000 450,291 3.3
Market gardens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,000,000 256,518 .4
Fruits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,000,000 1,601,979 .9
JHay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353,437,699 130,804 | . . . . . .
Tobacco. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,082,11 22,510,386 52.5
Hops . . . . . . . . . . . . . .. . . . . . ,". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 46,725 1.3
Sugar and syrup, including honey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,500,000 | . . . . . . . . . . . . . . . . . . . . . . .
Clover and grass seed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 638,329 4.3
Wines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 129,103 1.3
Grand totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,727,218,994 374,230,603 |TIOI
Percentage exclusive of cotton and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2
67
Deducting from the total agricultural exports
the amount of the cotton and tobacco (together
$200,405,887) we find that there were exported
but $173,824,716, and of that amount wheat
and meat constituted $150,191,018, so that of
miscellaneous articles of farm produce the
amount exported was but $23,633,698. If we
estimate the average expenditure for food for a
family of five persons to be even no greater than
one dollar a day, an addition of 476,232 families
or 2,251,160 persons of all ages to the popula-
tion of the country would take up this entire
agricultural surplus, including wheat and meat
leaving nothing for export but cotton and tobacco.
The census showing our increase of population
for the past decade to be about 1,500,000 yearly
it is clear that if our mechanical industries were
sufficiently prosperous and sufficiently co-ordi-
nated to keep all their Workmen constantly
employed, so that none were compelled to invade
the domain of the farmer, and if, of the immi-
grants, a fair proportion were mechanics, or non-
agriculturists, it would take but four or five
years at furthest for the home market to consume
all the products of our farms, and at prices that
would compensate the farmer better than he has
ever been compensated.
These figures are convincing evidence that the
American people—especially the American farm-
ers—should attend to the wants of the home
market. By intelligent attention to our own
needs we should not have any material dispro-
portion between production and consumption,
resulting in stagnation of trade, with all the evil
which that implies.
the world” are an indefinite and intangible
The so-called “markets of
element.
Every man who goes into a business makes
some calculation, not only as to probablo profits,
but as to the possibilities of the business as a
whole. This he can do with some degree of
certainty as to the home market, of which he is
sure. He knows the elements entering into the
home demand, the numbers of the population,
their manner of life, the character and degree
of their wants, and their general civilization. He
can place no reliance on the markets abroad.
Whoever leans upon them leans upon a broken
reed. The nations we might trade with are liable
at any moment to adopt a fiscal or an industrial
policy that might excludo our products from their
markets.
Germany, by a single decree—by the stroke
of one man's pen—cut off in a day the entire
German market from one of the largest products
of American exportation, pork. France did like-
wise as to the French market. This action was
based upon the gratuitous assumption that the
pork was not sound, but the decrees were not
modified upon the presentation of complete and
irrefragable proof of the groundlessness of that
assumption. The course pursued by those Gov-
ernments as to that article may at any moment
Should the
embargo be extended by the French and Germans
So as to include all other articles of. American
We can not
be repeated by other Governments.
export, we could not prevent it.
control the policies of other nations; we can
fully control our own. It is their right to regu-
late their own affairs; it is our right to regulate
Ollſ S.
What the farmer now receives for his wheat
is the Liverpool price, minus the cost of its trans-
portation to Liverpool. Under an economical sys-
tem which should develop among ourselves the
capacity to do all our own work our industries
would be in equilibrium, and all the products of our
farms would be consumed at home at such price
to the farmer as should result from the un-
restricted competition of the other farmers of
this country. With a varied and natural develop-
ment of all mechanical industry, the tendency of
the youth of the country would be to enter such
of those pursuits as they felt adapted to, and so
to lessen the tendency to engage in the pursuit
of agriculture. Under those circumstances the
"robabilities are that those who followed agri-
68
culture would receive relatively greater reward
for their labor than those who followed other
pursuits, inasmuch as the competition among
farmers would tend to a minimum. It is certain
that under an economical system by which we
should do all our own work the farmer would find
a market at home at good paying prices for all
his products. This being the case, a Liverpool
merchant wanting American wheat would be
compelled to pay our farmer not, as now, the
Liverpool price minus the cost of taking our
wheat to Liverpool, but the Liverpool price plus
the cost of bringing foreign wheat here ; that is
to say, our farmer would not sell for less than
the price at which he could be competed with.
With proper development of mechanical indus-
tries in local centers in all parts of our country,
it will not be long before the farmers will find
our own people consuming all the agricultural
products of the country; and whenever we are
threatened with invasion of foreign agricultural
produce—and that time is much nearer at hand
than many suppose—the same policy which shall
have enabled us to do all our own manufacturing
will enable us to protect the farmer against
foreign competition by reserving for him the
markets of his own country.
The utmost that protection can do for any
industry is to keep the foreigner from competing
with our own people in our home market.
If we are to have free trade or anything
approaching it, our industries will languish; and
our farmers will find that protection did protect—
even them.
One of the leaders of the free-traders, Mr.
ROGER Q. MILLS, himself bears unconscious testi-
mony to the insignificance of the foreign markets,
so far as they relate to our industries. In a
speech delivered at his home, Corsicana, Tex., on
May 21, 1888, he said, “We produce and exchange
among ourselves and consume more of the
products of our own labor than the 300,000,000
on the continent of Europe.” Our homespopula-
tion being 65,000,000 this would make the aver-
age production, consumption and exchange among
our people nearly five times as great for each
head of population as the like average for Europe;
and we all know that this is not too high a figure
at which to measure the entire body of American
activities compared with those of Europe.
Contrast of the consumption of food in
Europe and America.-One of the essential
differences between the civilization of Europe
and that of the United States concerns the rela-
tion of the masses of the people to the prosper-
ity of the whole community. For the rich, the
privileged, and the high-born, as well as for the
literary, artistic, and professional classes, the
civilization of Europe is high; for the great mass
of the people it is low. There civilization is the
privilege of the few; here it is the inalienable
right of all. The literature of Europe is full of
the implication that aspiration is the concomitant
of birth and wealth, and of those alone. How
significant is the fact that in all the marvelous
conceptions of Shakespeare's genius no elevated
sentiment is attributed to any except men of
noble blood.
In literature, as in life, the plebeian is made
to “keep his place.” This is a philosophy that
accords well with the aristrocratic spirit and
with the maintenance of standing armies, which
overawe the masses and repress their aspiration.
It is the philosophy of the dilettamte and the
doctrinaire, who discuss the theory of supply and
demand as a “great natural law,” and then,
ignoring other natural laws of equal and counter-
vailing force, apply their theories to the human
laborer with the same iron rigidity and cynical
indifference that they apply it to waste paper
and scrap-iron. It is to this class of men, not
the real workers of the world, that we are in-
debted for the political economy that advocates
free trade between nations.
It will be generally admitted that the food
consumed by the masses of the people of a
country is a fair index of their energy and power
of achievement. Is it not also an index of their
civilization ? For of what avail is the civilization
under which the masses of the people starve or
in which life becomes a fevered hunt for animal
subsistence 2
In order to leave no room for a charge of parti-
ality, I take my figures not from an American or
“protection” authority, but from the English
statistician, Mulhall. He states the number of
pounds of meat consumed annually by the people
of the different countries as follows;
69
Number of pounds of meat to each inhabitant
consumed in the United States and in the prin-
cipal countries of Europe.
Pounds.
Italy.............................. 23
*.…................…. 48
*P* …................................... … 49
olland 56
*…...….....................................….... 64
*W*Y.…...........…. 65
Germany 69
Penmark............................................................ 69
*…..............................…. 74
*lgium......... .…............…............................... 76
Great Britain..................................................... 105
Average for all Europe..................................... 63%
The United States.............................................. 120
I will remark in passing that two distinguished
American authorities— one, Mr. J. R. Dodge,
statistician of our Department of Agriculture;
the other, an editorial writer on The New York
Tribune, of world-wide repute for the accuracy
of his computations—agree that the consumption
of meat in the United States is not less than 175
pounds per annum for each inhabitant.
But even on English authority it is seen that
on the average our people consume twice as
much meat per year, man for man, as the people
of Europe. I think the American computations,
however, nearer to the fact.
Again, Mulhall gives the statistics of cereals
consumed by the people of different countries, as
follows: -
Annual consumption of cereals per head of
population.
Bushels.
Italy.... 9%
Austria.......................................... 14
Holland............. 16
Spain........... 18
Russia ........... 18
Great Britain..........-------...-------......................... 20
Germany...... 24
Average for Europe 17
Annual consumption per head of cereal in the
United States.--------------...------------....... ........ 41
As to this item also, our American statisticians
credit this country with a larger consumption,
but the foreign authority will not be suspected
of favoritism.
These figures represent the bread and meat
eonsumed by the people of the countries named.
Although our consumption is thus shown to be
enormously greater per head of population than
that of Europe, such is the scale of American
wages that our food cost our people less in pro-
portion to their incomes than is paid by the
masses of the people of Europe for the meager
supply of poor and innutritious food eaten by
them. Mulhall states that—
If we consider only the working classes, we find
that in the United States the cost of food is ex-
actly one-third the value of labor, whereas in
Great Britain it is almost one-half and in France
stillſ more.
Those figures have deep significance, since at
the foundation of all questions of civilization and
human progress must lie the question of food.
Other things being equal, the quantity and qual-
ity of food consumed by the people of a nation
determine the energy of body and vigor of mind
which they will possess.
As a further illustration of the importance of
the home market and the trifling character of
our foreign trade, I would remind Senators who
point to our commerce with Great Britain that
in two decades we shall have added to our own
numbers a population as large as that of Great
Britain, and that the population so added will
consume, man for man, three times as much as
is consumed by the inhabitants of that country.
What folly, therefore, to dwell upon the
Supreme importance to the American people of
the “markets of the world.” The trade of our
own people with one another is infinitely to be pre-
ferred. We should be preparing, by the adop-
tion of proper policies at this time, for the
immense population—at least 250,000,000–
which within the lifetime of men now living will
have assembled within the limits of the United
States.
The most beneficial, economical, and natural
commerce must always be that between neigh-
bors. If I can exchange with my neighbor a
thing of which I have a surplus for a thing of
which he has a surplus, it is a more economical
and natural exchange than an exchange with
Somebody living at the antipodes. Not only do
We gain by Saving charges of middlemen and
avoiding deterioration of goods in transit, but,
as I have already had occasion to observe, a
consideration of paramount consequence is that
we establish here the civilization that comes of
aggregations, without which we should be de-
prived of many of the modern comforts, and of
that large body of society which has a refining
and civilizing influence on men.
Whatever tends to aggregate people in com-
munities tends::c, increase the comforts and
* . . . . ;
70
luxuries of life and to develop human aspiration.
A man living alone must go through life with
little, if any, improvement in mental condition
beyond that which he inherited. He may even
deteriorate from the condition at which he
began; but where numbers are gathered to-
gether each takes inspiration from all. The
intellectual attrition that takes place in society
is the great source of the advancement of
humanity. Without it men would degenerate
into savages. It is impossible to conceive of
intellectual growth under conditions of complete
isolation. In the proportion in which men
isolate themselves is their social and intellectual
growth retarded.
The ultimate result of American development
must be the emancipation of labor from the
stigma which the privileged classes of the older
continents have imposed upon it. They have
permitted their laborers to remain ignorant and
despised them for their ignorance. They have
treated them as belonging to an order apart, to
a race different from their own. This can not
be attempted and will not be tolerated in
America. With the education of our laborer he
approaches nearer to his employer, and if, as is
certain, the education of all is to continue from
generation to generation, the line of demarka-
tion in the intelligence of the two classes will
become less and less apparent. There is no
necessary connection between ignorance and
any form of labor, however humble. All labor
is honorable; it is idleness that is degrading.
The time must come when every workman, being
as intelligent, as honorable, and as useful to
society as his employer, will be treated with the
same degree of consideration. As men approach
nearer to each other in intellectual, Social, and
moral excellence, they come face to face, with-
out regard to their business relationship.
One of the great obstacles to the progress of
the working classes of Europe has been that
during all history legislation has been in the
hands of men who have been consumers without
being producers. As might have been expected,
the producers have been subjected to an elabo-
rate system of spoliation by which they have
been compelled to supporáčírâb their hard-
earned pittances the magnifi!º establishments
of royalty, with their superadded infliction of
endless “civil lists,” by which aristocratic mendi-
cants may live in idleness at the expense of the
humble and hard-working producers.
This is the government of a free Republic.
without king or kaiser. The army on which it
relies for defense is not composed of men who
consume without producing. It is not a stand-
ing army of a million men, but a moving army
of many millions, moving, not on the field of
battle, but in all the varied fields of industry.
We live without fear of assault or molestation,
With our mechanical resources fully developed
and in operation we need contemplate no attack.
Possessing in the brains and hands of our people
all the intellectual and all the executive powers,
all the Sciences and all the arts, should great
emergencies arise our workshops as schools of
invention and achievement will be found again,
as they have been already found, the buttress
and support of the Republic. In war a skillful
and alert population proves the greatest defense
against an enemy, as in peace it proves the most
effective defense against hunger and cold.
In discarding the European political system
and admitting all citizens to an equal participa-
tion in the Government, we discarded the idea
that idleness was entitled to more consideration
than industry. We also discarded the idea that
a workingman is under obligation to his employer
for the fact of his employment. It does not
require much reasoning to perceive that if the
workman faithfully performs what he has agreed
to perform he is under no obligation whatever.
With the independence and self-assertion of
the American people and the irresistible tendency
to equalization among them, if the protective
policy be continued and foreign trade be not
permitted to disorganize and disrupt our indus-
tries, the time will come when each worker will
receive the full value of his individual contribu-
tion to the common wealth, and when, therefore,
no man can acquire more than he fairly earns or
take from Society more than he gives it in labor
or its equivalent. In my belief the time will
come when men, however rich or learned, who
do not contribute their quota of useful labor of
Some sort to the support of Society will be
looked upon with much the same eye as crimi-
71
nals. They will lose and should lose caste in a
Society and civilization based upon labor as upon
a necessary foundation. The maxim of justice
is, “If a man work not, neither shall he eat.”
No American can doubt that our country
should stand first among the nations in all that
tends to the unfolding and development of the
powers of man.
The implied promise of the Republic to the
people of the earth is that on this continent
shall be developed the highest type of manhood.
The founders of the Republic did not aim at pol-
itical liberty merely. They had in contemplá-
tion the highest standard of individual and social
life, the crowning work of civilization. Their
efforts were an earnest that here should be
found not only that equal liberty which was to
constitute the level plain on which all citizens
may stand alike, but that there should, in time,
be found that which alone can give to political
liberty its highest value, but of which the history
of the world furnished no example, namely, the
opportunity for the equal, complete, and harmo-
nious development of all the faculties of all the
people.
An enduring civilization must have its founda-
tions laid not in what are called the upper but
in the lower levels of society. The history of
the past civilization is the history of the few ;
that of the coming civilization shall be the his-
tory of the many.
In Our Schools for the young the teaching of
science and the useful arts must take the place
of dead languages and mythology. The high
school of the future will be the school of tech-
nology, supported by the State, in which the
children of all the people may learn how to
explore the recesses of science and to apply their
discoveries to the satisfaction of the wants of |
man. But the greatest of all schools are the
workshops, the schools of practical life.
These will be found the basis of the coming
civilization, in which the process of development
begins, where it should begin, among the level
masses of the people.
The same beneficent principle which would
warrant us in Supporting schools of technology
in which to train our youth to investigate the
-& * *.
laws of nature and to evoke new and subtle
forces from the arcana of science will justify us
in maintaining a tariff sufficiently high to enable
our workmen—those faithful students of a life-
time—to continue in their schools of applied
science the investigations and discoveries which,
during the last quarter of a century, have trans-
formed the face of industry.
Whenever the artisans of the United States
are subjected in their home market to unre-
Strained competition with the ill-paid labor of
other countries, their wages, on which depends
their grade of living, will decline, their aspira-
tions droop, and their life of hopeful, genial, and
welcome occupation be turned into plodding,
dreary; and unremitting drudgery.
If cheapness alone be the desideratum, with-
out regard to the means by which it is attained,
then it would seem that in the other countries of
the world the ultimate is about reached. The
cheapening of human life has gone about as far
as it can go. As we look over the face of the
globe and “survey mankind from China to Peru,”
we see millions toiling during all their waking
hours for pittances that barely sustain animal
existence. As the masses acquire greater intel-
ligence, their condition will undoubtedly be ame-
liorated by an insistence upon a just distribution
of the products of their labor, but even this
relief has its limits, for in a stagnant and unpro-
gressive civilization, did they receive the entire
product, their last state would be little better
than their first. The great relief is to come
from improvements in the processes by which
things are produced, so that without increase of
sacrifice there may be increase of production.
Without such improvements it is clear that the
sacrifices to be made by men in order to procure
the comforts of life would always, even under
the most righteous distribution of the products
of industry, be nearly as great as they now are.
According to the policy of the Democratic
party cheap products mean cheap men.
The policy of the Republican party aims at a
reversal of this. It seeks to make products
cheaper by making human life—flesh and blood—
dearer. This means cheap products and dear
men. In a civilization that is truly advancing,
72
4–
shared by all.
it is only as men become dearer than products
can become truly cheaper. It does not follow
that products are cheap merely because they
cost less to the purchaser or consumer. No
inquiry as to cost can be answered without tak-
ing into account the cost in sacrifice to the pro-
ducer. If the cheapening is at the expense of
the producer, the article is not really cheaper,
but dearer.
Skillful men, intellectual men, creative men,
may be dear, but it is their labor and theirs alone
that can effect a true cheapening of products—
a cheapening consistent with the welfare and
progress of society. -
The policy of the Democratic party presents
no outlook to humanity. That of the Republican
party by encouraging the development of skill
will make men dearer and products cheaper.
The aim of society should be to have dear men
and cheap products—not to secure cheap products
by cheapening and debasing humanity.
Increase of comfort uniformly accompanies
the growth of constructive intellectuality. The
development of this force among the masses of
the people should especially be the duty of a
republic. Their prosperity is indispensable to
the perpetuity of a republican form of govern-
ment. A despotic government may exist with
an ignorant and poverty-stricken population, all
power being in the hands of a few, while the
masses are inert and without responsibility.
With us the responsibilities of government are
We have no privileged class.
Power is distributed throughout the entire com-
munity. Intelligence and opportunity of achieve-
ment should be equally distributed.
This measure, Mr. President, I regard as one
of the most important which could be enacted
into legislation. Its influence will be felt in
every household throughout the land. It will
enlarge and develop industries already established,
will give birth to new industries of the most use-
ful and far-reaching character, and will give
employment to large numbers of men now suffer-
ing from involuntary idleness.
... These measures, to my mind, embody in their
conception and scope the highest duty of govern-
ment, which is to see that all its people have
work for hand and work for brain, and just
reward for both.
The passage of this bill, Mr. President, will
bring the toilers of this country a long step
nearer that to which they have a natural right,
namely, the supplying of all their own wants,
and at rates of compensation consistent with the
grade of civilization maintained among us.
Much of that prosperity will be due to the
organization of great workshops which the pend-
ing measure will call into being. With work-
shops and skillful workmen the Republic will be
all-powerful. Without them how helpless would
it not be 7 Without a high order of workmen
well paid, well fed, and well housed, the inventive
faculty can not assert itself. Without the
possession of large numbers of such men con-
stantly at work in well appointed establishments,
in which they may be in touch with one another,
how can a nation accomplish, and continue to
accomplish, the largest results in Science, art,
industry, and invention ? The higher the range
of living for such men the sooner will all
their powers be developed and the sooner will
they succeed in removing from the face of nature
the veil which during all the ages has hidden in
impenetrable secrecy the beneficient forces that
are only now revealing themselves; and which
yet hides forces of equal or greater beneficence,
forces that with the progress of invention and
discovery can not elude the unceasing scrutiny
of the human mind, the unceasing industry and
immeasurable skill of the human hand. How
wise the provision of nature which refuses to
yield its secret without demanding from man the
labor of search | If mankind could have every-
thing it wanted without the necessity of labor,
the charm of life would be destroyed. The glory
of existence is in achievement. How barren,
how wasteful, how unbeautiful, how offensive to
nature is life without work | Yet, from an
economic point of view, ill directed work may
prove as wasteful as idleness. To be of the
highest efficiency, work must be intelligently
directed. The time that men spend seeking
roses in thistle-beds is time put to little purpose.
The labor of this country can not be directed
with the fullest intelligence until we do all our
own work; and this result can never be accomp-
78
lished without a tariff which shall exclude the
products of labor performed abroad, except in
so far as that labor may supply us with articles
to the production of which some insurmountable
barrier exists in our own country.
The highest aim of society should be to develop
man. By developing the human being all other
development follows. Every faculty of mind
and hand should be afforded opportunity for
expression and exercise. Above all, the powers
of construction should be encouraged and pro-
moted. What miracles have they not wrought !
More awe-inspiring than the tread of conquering
armies are the rush and whirr, the dash and drive,
the rumble and roar of the locomotive, as with
mighty speed and resistless power, in the light of
day and gloom of night, it traverses continents,
bounding over prairies, vaulting over rivers,
penetrating mountains, pursuing with faithful and
unceasing pace its mission from Ocean to Ocean
as the “messenger of glad tidings” to all the in-
habitations of men —its coulumn of smoke the
“pillar of cloud” by day, its flamboyant head-
light the “pillar of fire” by night, leading the
way for labor from the house of bondage through
the wilderness into the land of promise and of hope.
With the advance of man in knowledge and
skill work will become increasingly dignified and
ennobled. Labor will become its own liberator.
Increasing intelligence and wise organization will
effect its disenthrallment. Land will become
more accessible to the laborers of the older con-
tinents. ' The vast and idle hunting-grounds, the
parks and preserves held out of reach of the
people, will be restored to their proper use in
furnishing sustenance for human life. Then will
swords be turned into ploughshares and spears
into pruning hooks. Then will the king—which
is the people—come to his own again.
In the early stages of civilization, man secured
assistance in the hardest of his toil by domest-
icating and subordinating to his will the animals
of the dumb creation. In process of time the
winds and waters were harnessed ; and later,
under the impetus of modern progress, the more
subtle forces of steam and electricity. In all
this there was a steady advance, an evolution
from the rude to the refined. The strength of
horses was found insignificent compared with the
strength of the unseen properties of matter. It
is the duty and the destiny of man to continue
the work of subduing and “domesticating” the
viewless forms of the universe. To this work he
is dedicated by the higher law of his being. Who
can doubt his ability, who does not observe his
ambition, to evoke from earth and air and sea
hitherto unsuspected forces? In the ample folds
of the unrolling years of an illimitable future
what may not the genius of man accomplish Ż
As the navigation of the sea extended the bound-
aries of his knowledge of the earth, what may
not the navigation of the air unfold? And as
the soil is but the bed in which the plant may
securely rest while absorbing and assimilating
chemical constituents themselves dependent for
their nutritive qualities upon atmospheric condi-
tions, why may we not look to a time when the
nutrition may be drawn from the atmosphere
direct and when we may thus return to the soil
all that we take from it? What widening of the
vista of human achievement does not such pros-
pect afford? What marvels may we not see
when every farmer shall be a chemist, evoking
from the circumambient air the life-giving force
that is to regenerate the earth, and this by the
aid of processes yet to come from the laboratory,
by the aid of instruments yet to be furnished by
those universities of applied science, the mechan-
ical workshops ?
So with advancing knowledge the farmer will
not be dependent for his crop upon accidental
and ill-timed rains, upon alternating floods and
droughts. By Securing fuller control of natural
forces he will learn how to effect condensation
and precipitation of the moisture of the upper
atmosphere, and, in the fitting seasons of recur-
rence, cause it to decend upon the earth “like
| the gentle dew from heaven,” fructifying and
refreshing the soil. The arid lands will then no
longer be arid; the waste places will no longer
be waste.
Then will the world realize for the first time
the full meaning of the lines:
What a piece of world is a man | FIow. Inoble in
reason | How infinite in faculties In form and
#º. express and admirable ! In action
ºli e an angel; in apprehension, how like a
go
N
Academia of the new philosophy, the work-
Shop, 9.
Advancement must find its material basis in the
development of the mechanic arts, 9.
Aggregation: A protective tariff secures for a
nation the advantages of, because it develops
aggregation among the people by inducing
the establishment and maintenance of man-
ufacturing centers, 58.
Agricultural exports of the United States,
1886, 66.
Agricultural implements; competition in their
manufacture in the United States, 29.
Agriculture and manufactures; States should
have both, 56.
Agriculture: England's neglect of, and its con-
sequences, 10
Fayorable effect upon prices of export articles
caused by recent silver legislation, 67.
Its highest prosperity can not be reached ex-
tºpº in countries which do their own work,
10.
Many persons diiven into it for lack of other
opportunity, 47.
Suggestion of the effect of free trade on it, 59.
What proportion of the population should be
engaged in it in order to maintain an equi-
ºrium between it and all other industries,
9.
Agriculturists, number in the United States, 59.
Air-brake, enormous saving of time effected by,
54. -
Alabama: Ratio between the number of the
white population and the number of patents
issued during 1870, 17.
Progress made, as evidenced by the ratio of
patents to white population of 1889 contrasted
With that of 1870, 57, 58.
American development, its ultimate result must
be the emancipation of labor from the Stigma
which the privileged classes of the older con-
tinonts have imposed. On it, 70.
American history, the most instructive lesson in,
17,
American labor, its condition contrasted with
that jf the labor of Europe, 34.
America11 working men intellectual athletes, 52.
Americans: Why are they recognized the world
over as natural inventors? 50.
Analysis and synthesis taught in the workshops -
by real, not mimic, object lessons, 33.
Anderson, Archer, Confederate colonel: State-
ment showing mechanical helplessness of the
Confedei's te States by reason of the absence
of diversified industries, 18.
Aptitudes: How they may be developed, 11.
Importanco of affording opportunity for the
development and cultivation of all, 3.
Infinite variance of, among a population of
65,000,000, 4.
E X.
Aptitudes—continued.
Is it not the paramount duty of a people to de-
velop all? 10. •
Their marvelous development in this country
during the period of protection,
Arkansas: Ratio between the number of the
white population and the Inumber of patents
issued during 1870, 17.
Progress made as evidenced by the ratio of
patents to white population of 1889 contrasted
with that of 1870, 58.
Armies, standing:
cipation, 33.
Arnold, Matthew : His admission that for all
persons whose income is within the limit of
$1,500 no country in the world offers such
advantages as the United States, 35.
Effect upon industrial eman-
Artisan, stands at the door of the laboratory
awaiting the result of the latest analysis, 6.
Art not less worthily typefied by the carpenter
§: hº square than by the sculptor with his
ChlSe!,
Art products constitute the basis of all the com-
forts and olegances of civilized life,
Arts: Not necessary to diyide them by the terms
“useful” and “fine,” 6.
Association: Stands for strength, concentration,
intensity, achievement, 8.
The most powerful attribute of the human
race, promoted by the economic policy of
protection, which develops and maintains all
industries in our own country, 7.
The principle of, receives broader recognition
among the American people than among any
other, 7
Austria and Hungary participating in the race
for home production, 16.
Bacon: . His remark that when philosophy was
stationary the mechanical arts went on im-
proving. Why was this? 8.
Barriers erected by men in the early ages as a
rotection against attack by less enlightened
ut more numerous tribes, 3.
Barriers established by nature, such as defects
or limitations of soil or climate, render de-
sirable a certain amount of international
trade, 2.
Boot and shoe factories in United States, 28.
British exports to Russia, decline of, 16.
“Buying in the cheapest market : ” What is
meant by this phrase? 45.
Carºl: Tendency to equalization of its profits,
Carriage and Wagon factories in United States,
Centers of population : Advantages of their
proximity to the farm, 55, 63.
Cereals, annual consumption of, per head of pop-
ulation in the United States and principal
countries of Europe, 69.

75
Cheapness: A sordid argument, 47.
If it alone be the desidioratum, without regard
to the means by which attained, then it
would seem that in the oth (ºr countries of the
World the ultimate is about reached. The
cheapening of human life hās gone abolit as
far as it calm go, 71.
No class of people in this country entitled to
buy the products of labor at any cheaper
price than such products can be made by the
other classes of our own people, at rates of
wages that comport with the requirements
of American civilization, 46
One “cheap '' man begets another. If the
hatter must have cheap shoes, the shoe-
maker must have cheap hats; if both must
have cheap clothes, there must be “cheap ’’
farmers to raise the wool, “cheap'' spinners
to spin it, “cheap ’’ weavers to weave it, and
so on throughout the entire body of labor.
This form of cheapness would be the de-
struction of civilization, 46.
That which the Democratic policy implies is
a cheapness of men; the Républican policy
seeks a cheapness of methods, but a dearness
of men. The aim of society should be to
make things cheap by making flesh and blood
dear, 45, 71.
The dream of the free-trader's life, 46.
The inventions of this country, the principal
factors in securing true cheapness the world
over, 54.
The true cheapening of an article takes place
when its production demands less sacrifice
from him who produces it, not when its pur-
chase demands less sacrifice from him who
purchases it, 46.
When people say they want things “cheap,”
it simply means that they want everybody
else to make things for them more cheaply
than they are willing to make things for
other people, 47.
When secured by increased foreign importa-
tions, cheapness is disastrous, §e. to
the farmer, 64.
Whoever buys “cheap' must sell “cheap,” 46.
Cities, evidences of the power of aggregation, 8.
Civilization: American, based on the intelli-
#. of all the people; European, on the
l
igh cultivation of a few, 6.
Its gauge and measure, the extent to which
man subordinates to his will the latent forces
of the universe, 17. .
Its great end should be to uplift humanity, 7.
That form to be most commended which de;
velops the intelligence and strength of all
classes of the community, 47.
To be enduring, must have its foundation laid
not in what are called the upper, but the
lower levels of society, 71.
Cleveland, Grover: Fallacy of his idea that some
trades and industries in this country are
“unprotected,” 39.
His reasons why the wool-raising industry
among American farmers should not be pro-
tected. 37. - 3.
His argument as to wool extended to other
articles would destroy all American indus-
tries, 38.
Coffee consumption in the United States, 66.
* Common defense: " EIow best provided for, 20.
Communities: Whatever, tends to bring men
together in communities tends to lighten
the burden, of eagh while multiplying the
achievements of all. This ad:# by a
protective tariff, 8.
Competition: Can our workmen compete with
#ropean prison labor? Or with the Chinese?
J º
United States, 28
Whoever competes with others must accept
the conditions of life of those with whom
he competes. If we compete with Europe
}. mºst accept the conditions of European
te, 48. .
Confederate States: Provision of their constitul-
tion forbidding all duties on imports and
establishing absolute free trade, 42.
Connecticut: Ratio between the number of the
population and the number of patents issued
during 1870, 17.
Constitutionality of a protective tariff, 19.
Constructive faculty exercised in the workshops
(as it should be exercised) in construction, 8.
Extent of, in the principal industries of the
Consumer and producer regarded in Europe as
different individuals; hence the assertion
that the producer “robs” the consumer, 12.
Consumer who is not a producer not entitled to
especial consideration in the enactment of
economic statutes, 12. -
Consumers: By consulting the interests of men
as “consumers’’ merely we undertake to
protect the interests of the idle rich—the
non-producers—at the expense of the pro-
ducers, 46.
Consumption of the products of labor in the
United States greater, man for man, than in
any country of the world, showing the ad;
yantage of such intelligent co-ordination of
industries as will enable our people to supply
all their mutual wants, 66.
“Contract laborer:” If we exclude him, why
admit the products of his labor? ...If he is
“cheap" his goods are cheaper. If he gle-
prives our workmen of their work, so do his
goods, 50.
We can reason, with the laborer himself.
What argument can be used with bales of his
goods? 51.
If pauper labor exerted in Europe is to control
our industrial affairs, upon which the pros-
perity of our people depends, why not, with
equal reason, our political affairs? 52. .
“Contract laborer’’ and the American farmer,
51. -
Cost of all articles in this country should be that
which results from unrestricted competition
of our own people, untouched by that of the
squalid labor of other lands, 47.
Cotºn factories: Number in the United States,
Cotton goods: Consumption per annum for each
inhabitant in , the United States and the
principal countries of Europe, 66.
Cotton industry in Germany, 16.
Cotton product of the world and consumption of
the United States, 66.
Creative faculty indispensable to the full meas.
ure of enjoyment of any product, 7.
Democratic party : Is it a free-trade party? 42.
Democratic policy: Invites the immigration of
tunskilled and discourages that of skilled
Workmen, 10.
76
T)emocratic policy:—continued.
Means cheap products through cheap men ;
sº policy aims at a reversal of this
and seeks to make products, cheaper by
making human life—flesh and blood—dearer,
fl.
How it would destroy all our industries, 37.
“Destruction and Reconstruction,” by General
Richard Taylor: , Quotation from, showing
the effect upon the Southern States of the
absence of skilled mechanics and of manu-
facturing establishments, 18.
Duty and destiny of man, 73.
Duty of this Republic to assist in cheapening
roducts, not by cheapening humanity, but
py cheapening the processes of labor, 50.
Education: Its ultimate object the attainment of
skill in the arts 5
By its means the laborer approaches nearer to
is employer, so that the line of demarcation
between the two classes becomes less and less
apparent, 70.
Employer and workman : The share of each, 31.
How the Democratic policy would remedy the
inequality, in their respective shares; how
the Republican policy, 31.
Employer can not be dispensed with, 32.
Employers: Necessity, for energy, enterprise,
and sound judgment among, 27.
Their skill and ability, like those of the work-
hºlependent upon experience and train-
1Ilg,
England: How it became a great manufacturing
nation,
Iti aream to do skilled work for all mankind,
Protected its cotton industry from competi-
tion with the hand-looms of India—with
what result, 50.
Equalization of material conditions among peo-
i. effected by unrestricted freedom of
trade, 24.
Equalization: Should not our people equalize
with one another in preference to equalizing
with foreign peoples? 25.
Equilization of material conditions ... natural
among the people of a free Republic ; they
are under no obligation to equalize their
conditions with those of the ill-paid people of
other lands, 26.
Equalization: England well understands, this
principle of equalization. When she looks
toward France and Germany she wants
“fair '' trade : when toward the United
States, she wants “free '' trade. Why? 26.
Exchange, the most beneficial, economical, and
natural, that between neighbors, 6
Exchange power of the product of labor of an
given, number of men not more than suffi-
cient to supply all their wants, 2.
Exportation of machinery from Great Britain
formerly an offense against law, 11.
Export crops: Disadvantages of their sole culti-
vation, 6
Increased consumption of, by reason of the
encouragement afforded by the present
º to the establishment of new indus-
tries, 65.
Farmer, the American : His hope in the home
market and in the protective policy, 58, 65.
In the absence of diversified industries, ten-
dency of men to overcrowd the farmer's
occupation, 59.
A. fº. of varied industries the birthright of
the farmer's child, 61.
It should be his aim to aid in securing the
adoption of national policies that may en-
courage the establishment and maintenance
Of manufacturing industries, and conse-
quently centers of population in proximity
to his farm, 63, 64.
Eoreign competition: possible home competi-
tion, 64.
Advantage to him of cultivating the lighter
crops, 62.
Farmer's Alliances, 58.
Flesh and blood involved in the Democratic idea
of “cheapness,” 48.
Flowers, advantages of their culture, 62.
Food : A limit to its consumption, 9.
An advance ir civilization does not increase
the demand for it, but does increase the de-
mand for articles that otherwise minister to
the comforts of life, 9.
Great contrast in the consumption of, in
Europe and America, 68.
Foreign market, what is meant by buying in, 48.
Foreign trade: Is not wealth and does not make
wealth : it merely exchanges one form of
wealth for another, 22.
Destroys the equilibrium of a nation's indus-
tries, 23. -
When large, an evidence of the vicious distri-
bution of industries, 23.
Compared with domestic trade, 23.
If it be not permitted to disorganize our in-
dustries, the time will come when each
worker will receive the full value of his in-
dividual contribution to the common wealth,
and when, therefore, no man can acquire
more than he fairly earns, or take from
society more than he gives it in labor or its
equivalent, 70.
Frange no longer tributary to England for man-
ufactured articles, 15.
France, wages of ordinary mechanics in, 33.
Free-booter the prototype of the free-trader, 13.
Free-trade: Origin of, 12.
Several bases of, 13.
Based principally on the idea that in trading
with foreigners we can cheat them in the
trade, 14.
Involves a contradiction not readily reconcil-
able with the genesis of the Republic, 15.
Should we adopt the policy of ? 14.
An injury to the farmer, 60.
|Under it the free American farmer of to-day
would disappear, to be replaced, first by the
lessee, next by the tenant-at-will, and later
by men like the Coloni of Rome, 59.
Tends to equalization ºf conditions among the
countries and peoples engaged in it, 24.
Says to the shoemaker: “We can not protect
you in the making of shoes; become a cob-
bler and you have all the protection that the
highest tariff could possibly give you.”. It
therefore discourages immigration of skilled
men and invites the unskilled only, 40, .. -
What would be its effects on the social life of
this country? 15.
Discredited in other countries, 15.
Free-trade country: Condition of labor in, con;
trasted with its condition in a “Protection''
country, 84.
77
Furniture and upholstery: Number of factories
in the United States, 29.
Georgia: Ratio between the number of the white
population and the number of patents issued
during 1870, 17.
Industrial progress evidenced by the ratio of
patents to white population of 1889 con-
trasted with that of 1870, 57.
Germany: Revolution in her industrial system
since the Franco-Prussian war, 15.
Wages of ordinary mechanics in, 33.
Gladstone's statement that international, com-
merce is based upon “the unequal distribu;
#ºn. among men and regions, of aptitudes,”
10. -
Grº Britain, wages of ordinary mechanics in,
3.
Ham, Charles H., quotation from his monograph
on “The co-education of mindl and hand,” 6.
Hand and brain, evidences that they are at last
working together in the South, 57.
Hard hand and solled face, no debasement in
them—they are the “medals” and insignia of
the industrial order, 9
History: Let us take a lesson from it, “Great
estates,” said Pliny, “ruined Italy,” 59.
Histº; The most impressive economic lesson
in, 17
Illinois: Ratio between the number of the popu-
lation and the number of patents issued
during 1870, 17.
Imagination: Its free play in the realm of inven-
tion and experience, 8
Implied promise of the Republic, 71.
Independence: Industrial independence as im-
portant as political, 4.
To become independent in the full sense, a
nation must become self-sustaining, 4.
Indiana: ratio between the number of the popu-
lation and the number of patents issued
during 1870, 17.
Industries: Are there, as Mr. Cleveland avers,
Some “unprotected?” 39.
Complete diversification in this country incon-
sistent with free admission of the products
of the ill-paid laborer of other countries, 3.
Diversified, the boon which they confer, 4.
Pºined need of, among a large popula-
1On, 4.
Equilibrium of, will enable our factories to
consume all the products of our farms, 60.
Effect on Southern States of the absence of
diversification of, 16.
In a nation, all are interdependent. An injury
to one, therefore, an injury to all, 37.
When all our industries are in perfect equi-
librium. when we shall have developed to the
highest degree the intellectuality and skill
of Our #º the comforts, and even luxu-
ries, of life will cease to be objects of serious
concernment ; they will be mere by-pro-
ducts, which all may have as matter of
course, 55.
When perfectly adjusted to the needs of a
nation, that nation can do no more than
supply all its own wants, 2.
Industries which, owing to climatic or other
insuperable barriers, it would be impossible
to develop in a particular country, should
not be attempted in that country, or, if
attempted, should not be encouraged or pro-
tected, 36.
Intellect the highest form of wealth, 5.
International freedom of trade means inter-
national leveling, 24.
Invention: A people accustomed to low physical
conditions, .# deprived of aspiration, can
never possess the fullest inventive faculty, 50.
Possibilities of Clevelopment by it surpass the
conceptions of the most exalted imagina-
tion, 65
Saving of time and money effected by, 53.
Saving of farm labor by means of, 53.
The Democratic policy assumes that invention
has ceased and would require us to employ
foreign workmen to the exclusion of Our
own, securing a cheapness which would be
merely temporary, and abandoning the cer-
tainty of future inventions, 54.
Iron and steel, number of establishments for the
manufacture of, 29.
Iron production of the world, and consumption
of the United States, 66.
Isolation stands for feebleness, ignorance, in-
efficiency,
Italy: Effect of the new policy of protection. On
Italian industry, 16.
Italy, wages of ordinary mechanics in, 33.
Justice: The maxim of—“If a man work not,
neither shall he eat,” 71.
Knowledge, the best—knowledge of work, 5.
Knowledge the best wealth, 5.
Labor: Compensation of, how adjusted, 31.
Effect of, upon a bar of pig-iron, 54.
Every man should be occupied in the labor of
his free, intelligent, and thoughtful choice, 3.
If labor in Europe must construct our machin-
ery, labor in Europe must repair it, 54.
Unskilled, has the highest form of protec-
tion, 39. g
Skilled, shall it have no protection? 40.
Labor-saving effected by inventions, 53.
Land, effect on wages in Europe of its being held
out of reach of the people, 12, 52.
Land, without diversified industries, product of
13,800 acres must be exchanged for the pro-
duct of one bar of pig-iron, 54.
Lanº Aristocracy, free trade based on the idea
OI a , 14.
Laws: When they bear equally on all sections of
the country, as tariff laws do, opportunity is
afforded to every man to engage in any busi-
ness he chooses. No justice, therefore, in
the claim that anybody is robbed by a pro-
tectlve tariff, 57.
Liberty and self-government : It Would be an
extraordinary effect of their operation should
a people possessing them be confined to the
least intellectual forms of labor while coun-
tvies having despotic or monarchial govern-
ments possessed all the arts, 12.
Libertv as a factor in the determination of
wages, 32.
Literature: If, as all concede, our young people
should be trained according to their apti-
tudes, in literature, and the esthetic arts, so
that the accomplishments of life may be in
their possession, why should we not regard
as an equally necessary possession the arts
which supply the material wants of life? 47.
78
Literature of Europe full of the implication that
aspiration is the concomitant of birth and
wealth, and of those alone, 68.
London Evening, News, extract from, as to con-
ditions of laboring masses of America
contrasted with those of England, 34.
Low tariff : Its effects upon home industry, 43.
Macaulay: Quotations from his writings as to
the functions of the mechanic, 8.
Machine-shops,
States, 29.
Machines: In comparison with their deeds, how
insignificant the feats of Hector and Ajax,
how repulsive the exploits of Alexander and
Caesar! -
Machines that run with rhythmic beauty and
irresistible power, more eloquent and awe-
inspiring than poetry or rhetoric, 9.
Man: No man can produce of all things more
than sufficient for his wants, 1
Man a gregarious animal: his happiness cannot
be sécured in isolation, 7. a .
Manufactures, anticipated cess a tiq n of, in
America, on repeal of English corn-laws, 11.
number of, in the United
Manufacturing resources; without them no
people can maintain prosperity or inde-
pendence, 18.
“Markets of the world constitute for Ameri-
cans a “broken reed,” 65.
Massachusetts: Cities of, proportion of land
values compared with the land values of the
State, 7. -
Ratio between the number of the population
and the number of patents issued during
1870, 17.
Meat, number of , pounds to each inhabitant,
consumed in the United States and in the
principal countries of Europe, 69.
* *
Mechanics: Interpreters of nature, 8.
Their growing importance in warfare, 20.
Men: Natural consequences of the statement of
the Declaration of Independence that “All
men are created equal,” 4.
Mills, Roger Q: His testimony as to the insig-
nificance of foreign markets for American
products, 68.
Mississippi: Ratio between the number of the
white population and the number of patents
issued during 1870, 17.
Morley, John : Striking statement as to the con-
dition of the people of Great Britain, 34.
Music: If cheapness be the desideratum, why
spend millions of dollars annually in teaching
American girls the musical arts? 47.
Nation: A nation a living community, in which
each individual has certain duties toward
every other, and in which each is undler an
implied obligation not to seek his personal
gain by an injury to the community, 23, 48.
The, a great family. Any discrimination be-
tween its members would be unnatural; lout,
to deny to strangers benefits that we might
confer on members of our family would not
be unnatural, but in strict conformity with
Jnature, 26,
National defense: How, in an inventive age, can
it be best provided for, 20.
Natural wage: The amount to which every man
is fairly entitled is the amount he can earn
in free and unrestricted competition, in his
own country with men who are subject to
the same laws and responsibilities, and ac-
customed to the same standard of living, 27.
Nature: its giant forces awakened, 7.
Necessaries of life: Who produce them? 41.
New Hampshire: Ratio between the number of
the population and the number of patents
issued during 1870, 17.
New Jersey: Ratio between the number of the
§§ and the number of patents issued
during 1870, 17. -
New York: Ratio between the number of the
population and the number of patents issued
during 1870, 17.
Northern States: Great bulk of the population
working with hand and brain in unison, 18.
North Carolina : Ratio between the number ( f
the white population, and the number of
patents issued during 1870, 17. -
Northern States: Their success in the civil war
due to the adoption of a protective policy
through which a wide diversity of industries
was established and maintained, 19.
Occupation: How shall the infinitely varying
capacities a vast population find suitable
occupation? 2. -
Necessity for the widest diversity of, in a
nation, 3. -
Pastoral age preceded the agricultural, 2.
Patents: Ratio between the number of the white
population and the number of patents issued
to citizens of certain Northern and Southern
States during 1870, 17. -
Progress made in the Southern States under
the operation of the protective tariff, 57.
Pennsylvania: Ratio between the number of the
- ### and the number of patents issued
during 1870, 17.
Pettifer, EI. J., an English workingman: Ac-
count of his trip to the United States; con-
trast of conditions of labor in England and
America, 34.
Policies: The policies credited with developing
wealth and civilization for a comparatively
few of the people of Europe must also be
charged with the degradation and starvation
of uncounted millions. No inferences favor-
able to such policies can be drawn in a free
republic, 4.
Those that are to prevail here must be such as
will diffuse the blessings of material progress
among the entire body of citizens, 4.
Those of other nations not necessarily a
criterion for us, 4.
Whatever best employs and develops the in-
tellect of a nation, that is the policy which
most enriches it, 5.
Who can doubt the proper economic policy for
a nation of continental proportions? 2.
Population of United States: What it will be in.
thirty years; what in sixty years, 2, -
79
*
Pork: One of the largest products of American
exportation cut off from the markets of
France and Germany, 67.
Power: No source more enduring, in a nation
than a body of skilled and well-paid mech-
anics, 10.
Predictions as to the effects of the tariff measure
under discussion, 72.
Producers: Spoliation of, for the benefit of those
who consume without Pºiº 13.
The consideration to which they are en-
titled, 42.
The strength and buttress of the State; no
mistake can be made by consulting the
interests of men in their capacity of pro-
ducers, 46.
Projetion: Its real cost not money, but labor,
. The people of a country should produce for
themselves all things that require of them
no greater, expenditure of physical and men-
tal force than must be expended by the peo-
ple of other countries in the production of |
the same things, 25.
Profits and wages constantly tending to an
equality, 48.
Protectionists, early, believed that protection
would be needed for but a short time, 43.
Protection: Its effects on social life by encourag-
ing the formation of communities, 15.
*3.9% : Is it in accord with the Constitu-
IOI) & -
. The utmost that it can do is to keep the for-
eigner from competing with our Own people
in our home market, 68.
Protective policy not begun soon enough, 60.
Protective policy: The great body of its oppo-
nents found in the Southern States, 16.
Protective tariff; Its utmost, conceivable effect
to decree that the Fº living in the coun-
try shall perform their own work, 20.
Price: Is it a static condition? 49.
Controlled absolutely by the relations existing
at any given time between supply and de-
mand, 49.
Prices: How protection reduces them, 50.
No reason why every man in the United
States should not be willing to pay such
prices as shall naturally result from the free
and unrestricted competition of all our own
people, 42. g
The greatest decline of, in this country, has
been of articles on which the tariff charge
has been highest, 43
Raº Number of passengers transported in
* * 2: ... x , y
Raw materials: What are they, and who produce
them? 36. -
Reagan, Senator, colloquy with, 56.
Reasoning powers disciplined in the work-
shops
Relief: The great relief for the masses is to
come from improvements in the processes
by which things are produced, so that with-
out, increase of sacrifice there may be in-
crease of production, 71. - -
Reservoir containing water at unequal heights:
Illustration of the effect upon nations of lay-
ing down the connecting pipe of unrestricted
freedom of trade, 24. -
Resources, our natural: Our prosperity not due
ot, those alone, 5.
Robbery: Is the tariff a robbery 2 82.
In lºgºs the so-called tariff “robbery” con-
Sist; ?
The law operating equally and impartially on
all Sections of the Union, the people claiming
to be “robbed,” yet refusing to enter upon
Imanufactures, thus confess that they get
their supplies of manufactured articles for
less than they are themselves willing to pro-
duce them, 28.
If the skilled workman, being but partially
protected, , is “ robbing” the community,
what can be said of the robbery effected by
the unskilled workman, who has operating in
his favor the equivalent of the highest con-
ceivable tariff 241. -
Rome, Imperial, at the height of its splendor
possessed no greater variety of natural con-
ditions than does this Republic, 2.
Rooms of varying degrees of heat, when con-
Inected by a communicating door, tend to an
equalization of temperature; SO nations of
varying material conditions tend through
unrestricted freedom of trade to an equiliza-
tion in those conditions, 24.
Ruskin, John : Statement of the condition of the
people of England, 34.
Russia, adoption of a protective policy by, 16.
Russia, wages of ordinary mechanics in, 33.
Scholasticism, the world has had its share of
ornate but barren, 6.
Schooling: But a small portion of the schooling
of the world done within academic walls, 21.
Schools: The great schools of the world—the
workshops, 8.
Those great schools must be permanently
established, 9.
Sewing-machine: , Pecuniary saving resulting
from its invention, 53.
Skill: Our people having a larger faculty of
development than any other people in the
world, are we willing that they shall be
ºdºº On the people of other lands for
SR1 te
Sláves, under the Roman empire, 13.
Social aspiration: Nine-tenths of the labor of
the American people induced by it,
Society: Its highest aim should be to develop
man, 73.
Southern States: Coal and iron in illimitable
quantities permitted to lie inert, and use-
less, 17.
In the presence of the slave, with whom manual
labor was identified, such labor by free men
discouraged and despised, 16.
The leaders of their people still cling to the tra-
ditions of the old régime, 18.
The great body of the opponents of a protective
tariff are found in the, 16.
The effect upon them of the absence of diver-
sified industries, 16.
Their helpless condition not due to any lack of
great qualities among their people, 18.
Their civilization “distained to be useful, and
was content to be stationary,” 18.
Operation of the protective tariff in, 56.
Statistics of recent progress in, 57.
With their working classes the hand had been
at work withouf the brain; with their intel-
lectual classes, the brain had been at work
without the handi, 18.
South Carolina: Ratio between the number of
the white population, and the number of
patents issued during 1870, 17,
80
Statistical Society of London, extract from pro-
ceedings of, 11
Steel product of the world and consumption in
the United States, 66.
Sugar crop of the world and consumption in the
TJnited States, 66.
Surplus: There will be none when the people of
a nation so adjust their industries as to Sup-
ply all their own wants, 2
Tariff: How high should it be 743.
if high enough, why are our imports SQ large?44.
The true test as to whether it is high enough,
found in the answer to the question 2 Are
we doing our own work 2, 44. -
The highest form of protection operates in favor
of the so-called “unprotected ” industries,
What has it done 2 52.
What has it done for the South 2 57.
When fully protective as to any article, we pro-
duce the article ourselves, 45.
Tariff, a protective, the natural and proper thing
for a nation; free foreign trade the artificia
thing, 26.
Tariff a protective: Without it we should, have
the patcher of shoes instead of the skilled
shoemaker, the solderer of tin pans instead
of the producer of tin plates, the second-rate
man who mends machines instead of the first-
rate man who can invent and make them, 40.
Tariff charge: A bonus which the foreign, manu-
facturer pays for the privilege of selling in
our market the products of labor exerted in
other countries, 30. e - G - tº
When placed on articles on which it is not
needed, has no effect, 44.
Whenever a given degree of mental and physi-
cal force exerted in this country will accom-
plish results equal to those accomplished by
an equal degree of such force exerted in any
other country, our tariff charge cannot be too
high, 27.
Tariff for Revenue: What it means, 43.
Tariff for revenue “with incidental protection ”
a self-contradiction, 42.
Tariff reformers, their aim, 43.
Taylor, General Richard, of the Confederate
ºy. statement of the effect on the fortunes
of the Confederate States of the absence of
mechanical resources, 18.
Texas& Ratio between the number of the White
opulation and the number of patents issued
§: 1870, 17. . º *
Industrial progress in, as evidenced by the ratio
of patents to , white population of 1889 con-
trasted with that of 1870, 58.
Time contract, importance of, in modern indus-
try, 21,
Time saved by means of modern inventions, 53,
Tools, the great civilizing agencies of the world, 6.
Trusts, the argument that free-trade is neces’
sary to protect our people from the extortion
of, 29.
United States will prefer to be called great, not
for resort to the forces that waste and destroy,
but for development and utilization of the
beneficent powers of production, 56.
“ Unprotected.” industries: , Are there. Some
such Review of Mr. Cleveland's assertion, 39.
Vance, Senator: Comment on his declaration
that when our foreign commerce is destroyed
the chief source of our national wealth will
have perished, 22.
Virginia; Ratio between the number of the white
population and the lumber of patents issued
during 1870, 17,
Vocation: When men have found their true
vocation they voluntarily yield up all their
working force, 3. .
Wages: At least one-half, the products of labor
in Europe confiscated to support countless
numbers of aristocratic idlers and millions
of men composing standing armies, 52
How determined, 31.
In Europe one class fixes them ; in this country
two classes fix them, 44
No reason why every man in the United States
should not be willing to pay such rates of
wages as shall naturăily result from the free
and unrestricted competition of all our own
people, 33.
No man entitled to get other men's labor at any
cheaper rate, in proportion to value of ser-
vice, than he charges for his own; and this is
what an adequate tariff justly prevents him
from doing, 27
Their tendency to a minimum in any one occu-
#. an unerrin º - º
ribution of the industries of the nation, 34.
Why higher in free-trade England than in pro-
tected France and Germany, 38.
Wants: Can a nation do more than supply all its
OWI).
Two courses open to a nation for the supplying
of its wants. Which should we adopt 2 2.
We should supply all our own, 3
War: A skillful and alert population the #eatest
defense against an enemy in time of, 70.
When declared by the Southern States, how -
helpless were their people, by reason of their
neglect of diversified industries, 18.
Wealth: Necessity for its i. distribution, 4.
The wealth of individuals in this country real-
ized not from manufactures, but from real
estate and railroads, 30.
The best wealth —knowledge, 5.
wellº, not made by exchange, but by produc-
lCI1, 223.
Weavers of Flanders, reference to, 11.
Wheat; : The dº; now received by the farmer
contrasted with that which he would receive
under an economical system which should
develop all our industries and keep them in
equilibrium, 67.
Wool: Consideration of Mr. Cleveland's argu-
ment against its protection, 87.
Consumption of the United States, 66.
Woolen industry in Germany, 16.
Work: Must be continuous in order to develop
men, 47.
The highest badge of privilege, 47.
Workers in this country. Their number, 28.
Working force: Necessity of such national poli: .
cies as may induce the voluntary yielding up
of the natural maximum of each man's work-
ing force, 4 -
Workman: The time must come when every
Workman, being as intelligent, as honorable,
and as useful to society as his employer, will
be treated with the same degree of consider-
ation, 70. -
Workmen: Qur workmen will not accept Euro-
pean conditions so long as there is an acre of
unoccupied land in the country, 51.
Those of the Southern States the base only of
the Industrial system; those of the North at
Qnce the foundation, superstructure, and
dome of its civilization, 17.
Wo;', Constitute advanced grades of
schools, in which the students pay for their
own tuition, 26
The greater the number existing in a country,
the more numerous the sources of that coun.
try's wealth, 9,
indication of a vicious dis- .
HW -
\in 52 - -- s
Pºz. - (75)

PROSPERITY
IS THE ISSUE,

‘All THE DIER QUESTINS ME SENDIN,
SPEECH

HoN. JACOB H. GALLINGER
sENATE of THE UNITED STATEs,
Wednesday, June 25, 1902.
[Part of Congressional Record.].
our FRIENDS ON THE other side ARE LOOKING FOR AN
Issue. THEY NEED Not worry. THE ISSUE IS LOOKING FOR THEM.
PROSPERITY IS THE ISSUE, AND ALL OTHER QUESTIONS ARE SEC-
ONDARY. THE AMERICAN STANDARD OF LIVING, AMERICAN MANH00D
AND AMERICAN HOMES ARE BUT THE RESULTANTS OF REPUBLICAN
LEGISLATION, THE SEQUENCES OF A PROTECTIVE TARIFF WHICH
BROUGHT TO US AND WILL CONTINUE TO GIVE US AN UNPRECB-
DENTED AGE OF LUXURY, AN UNPARALLELED ERA OF PROSPERITY.
§
The Senate having under consideration the following resolution, submitted by Mr. GALLINGER
Júne 24, 1902:
“Resolved, That the present phenomenal prosperity in all lines of business and industry in the
, United States is largely due to the existing tariff law, and the best interests of the country demand
its contiauance”- -
Mr. GALLINGER said:
Mr. PRESIDENT: In less than a month the
Dingley tariff law will have been in operation
five years. It has been for the United States a
=#
half decade of the most substantial and marvel-
ous accomplishment in all branches of human en-
deavor ever known in the history of not only
our own country but of the whole world.
Two years ago I laid before the Senate a ré-
sumé of the calamity and misery caused by the
Wilson-Gorman tariff law and the wonderful
- recovery we enjoyed under the first years of the
*
Dingley law, which took its place. I now pro-
X pose to call attention to a more complete result
-C of this tariff in the principal avenues of finance
-- sº and commerce.
s
" . .
** an unqualified success and has more than vin-
In every way the Dingley tariff law has been
dicated the wisdom of its framers. President
ºf McKinley within a few hours after his first in-
lº. § auguration called an extra session of Congress,
Tº new tariff law he said:
ſº
--- ~".
Congress should promptly correct the existing
condition; Ample revenues must be supplied not
only for the ordinary expenses of the Government,
but for the prompt payment of liberal pensions
and the liquidation of the principal and interest of
the public debt. In raising revenue, duties should
*
be so levied upon foreign products as to preserve
the home market as far as possible to our own
producers; to revive and increase manufactures;
to relieve and encourage agriculture; to increase
-Öiif domestic and foreign commerce; to aid and
deyelop mining and building, and to render to
labor in every field of useful occupation the lib-
eral wages and adequate rewards to which skill
and industry are justly entitled.
On the same day in which this message was
read Mr. Dingley, the chairtián of the Ways and
Means Committee; introduced the new tariff bill. -
|
It passed the House March 31. It passed the
Senate in an amended form on July 7, and on
July 24 the bill, as agreed to by the conference
committee, was signed by the President. It is
probable that no act of William McKinley's life
gave him more Satisfaction than the signing of
this measure. g
During these five years we have waged and
won a war with a foreign nation, we have had
Strikes involving hundreds of thousands of men,
and we have had partial failures in several staple
crops, and yet we have had the most prosperous
era in our history, and to-day our commercial
standing as a nation excites the wonder of the
civilized world. &
Revenue. —Let me first call attention to
our revenue during the past five years as com-
pared to our revenues uſider the Wilson-Gothian
law. It will be remembered what we had an an-
nual deficit during those low-tariff years, and
- - |President Cleveland during a time of peace sold
ai and in his message referring to the need of a
bonds to the amount of $262,000,000, which,
with interest to time of maturity, will cost the
country half a billion dollars.
The following table will, show the revenue
under the Dingley law as compared with that of
the Wilson-Gorman law:

Year ending June 30– º, I'Q- *:::::©-
1895 . . . . . . . . . . . . . . . . $152,158, 617 $313,390,075
1896 . . . . . . . . . . . . . . . . 160,021,752 326,976,200
1897 . . . . . . . . . . . . . . . . 176,554,127 347,721,905
Average . . . . . . . . . 162,911,499 329,362,727
1898 . . . . . . . . . . . . . . . . 149,576,062 | 405,321,335
1899 . . . . . . . . . . . . . . . . 206,128,4S1 515,960,620
1000 . . . . . . . . . . . . . . . . 233, 16-#, S71 567,240,851
1901 . . . . . . . . . . . . . . . . 238,491,789 585,752,067
1902 . . . . . . . . . . . . . . . . . 252,000,000 550,000,000 º
Average . . . . . . ... 215,872,241 524,854,975
* * * *~, * * * * * • * * * *. * - , l * * ~ * * * * * -----> *
rº-
N.
4
We have repealed war taxes to the amount of
over $100,000,000, and yet our revenue is more
than sufficient to meet the greatly increased
expenses of the Government. For the fiscal
year 1900 our surplus was $79,527,060; for
1901 it was $75,713,363, and for 1902 it will
exceed $80,000,000, which is quite a difference
as compared with the annual deficits under the
Wilson-Gorman tariff.
Employment and Earnings. – Supply
will always be governed by demand, and demand
will depend on ability to buy, sq that purchasing
power is the basis of prosperity. Our spendable
income is governed by the amount of employ-
ment and earnings of all classes, and in this
respect we are breaking records year after year
under the continued successful operation of the
Dingley tariff. *.
Samuel Gompers, president of the American
Federation of Labor, estimated that 3,000,000
men were out of employment during the low-
tariff period from 1893 to 1897. Not only that,
but the wages of those employed were constantly
forced down, many working only part time at
that. Now, Mr. President, what does it mean
to have 3,000,000 men idle? At $2 per day it
means a loss of $1,800,000,000 a year in wages,
or $9,000,000,000 in five years. That is more
than all the gold and silver in the world. It
means a loss of $3,000 each to 3,000,000 fami-
lies, and $3,000 will buy a large quantity of food
and clothing and education and comfort and
happiness. The earnings lost during the low-
tariff period can not be calculated, but whatever
they were we have a different story to tell of the
past five years.
Not only is labor all over the country fully
employed, but wages have been increased again
and again. It
impossible to give exact figures
* *
*...*
of the number of persons employed or the amount
of wages paid, and yet we can get a relative
idea from the labor bulletins of the different
States.
typical manufacturing State.
Take Massachusetts, for instance, a
The Bureau of
Statistics of Labor presents from time to time
an index figure indicating the level of employ-
ment and earnings. In the May number of the
Labor Bulletin a comparison is made between
April, 1902, and February, 1898. Starting with .
100 as a base, the following result is shown:
Febru- April,
-- ary, 1898. 1902.
Population . . . . . . . . . . . . . . . . 100 109.65
Employment . . . . . . . . . . . . . . 100 116.76
Weekly earnings . . . . . . . . . . 100 137.36
That is, employment has increased nearly
twice as fast as population, and earnings have
increased twice as rapidly as employment, or
four times as much as population, and if the
comparison were made with 1895 and 1896, the
contrast would be much greater. What is true
of Massachusetts is no doubt true of New York,
New Jersey, Pennsylvania, Illinois, and the other
industrial States. This is the result of Dingley-
ism; this is the foundation of our splendid home.
market; this is the demand that keeps our mills
running night and day, our railroads freighted
to their utmost capacity, and our farmers busy
and well rewarded with sales of their entire
surplus product at good prices. Not only is
every income-earner employed at high salaries
and wages, but the hours of labor have been
shortened, with its consequent hour or two more
of domestic and Social intercourse and happiness.
Agriculture. — I wish to show now, Mr.
President, the effect of these immense earnings
upon our agriculture, then upon our manufac- .
tures. First, as regards agriculture. Said the
in all staples. I now want to compare the size
and value of our farm products during 1896, our
Orange Judd Farmer, in its issue of October 19,
1901: -
The most prosperous year in the history of the
American farmer is drawing to a close.
And yet last year we had an unusually short
corn crop, a small potato and apple crop, and,
last low-tariff year, and 1901, our last protec-
tion year. The figures are as follows in round
millions, as estimated by the Department of
with the exception of wheat, only a normal crop Agriculture:
asº"
Quantity. Value.
1S96. 1901. 1S96. 1901.
Crop.
Wheat . . . . . . . . . . . . . . . . . . bushels. 470,000,000 74S,000,000 $341,000,000 $467,000,000
Corn . . . . . . . . . . . . . . . . . . . . . . do. . . . . 2,270,000,000 1,522,000,000 4SS,000,000 922,000,000
Oats . . . . . . . . . . tº e º e º e º e g g º s do. . . . . 717,000,000 736,000,000 134,000,000. 294,000,000
Rye . . . . . . . . . . . . . . . . . . . . . . . do. . . . . c 24,000,000 30,000,000 10,000,000 17,000,000
Burley . . . . . . . . . . . . . . . . . . . . do. . . . . 70,000,000 109,000,000 23,000,000 48,000,000
- Flaxseed . . . . . . . . . . . . . . . . . . do. . . . . 17,000,000 29,000,000 10,000,000 35,000,000
Buckwheat . . . . . . . . . . . . . . . . do. . . . . 14,000,000 15,000,000 5,500,000 8,500,000
Potatoes . . . . . . . . . . . . . . . . . . do. . . . .* 245,000,000 167,000,000 70,000,000 100,000,000
Cotton . . . . . . . . . . . . . . . . . . . . bales. . 8, S00,000 10,500,000 290,000,000 368,000,000
Hay . . . . . . . . . . . . . . . . . . . . . . . tons 59,000,000 51,000,000 385,000,000 510,000,000
Apples . . . . . . . . is e < * * * * * * * barrels. . G9,000,000 25,000,000 69,000,000 63,000,000
Total value of *
above crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * 1,825,500,000 2, S32,500,000
Live Stock. &
Milch cows . . . . . . . . . . . . . number. 16,000,000 20,000,000 366,000,000 644,000,000
Cattle . . . . . . . . . . . . . . . . . . . . . do. . . . . 32,000,000 32,000,000 509,000,000 885,000,000
Hogs . . . . . . . . . . . . . . . . . . . . . . do. . . . . 43,000,000 50,000,000 1S6,000,000 298,000,000
Sheep . . . . . . . . . . . . . . . . . . . . . do. . . . . 38,000,000 43,000,000 65,000,000 134,000,000
Horses . . . . . . . . . . . . . . . . . . . . do. . . . . 15,000,000 15,000,000 500,000,000 720,000,000
Total value live .*
Stock . . . . . . . . . . . . . . . . . . . . . . tº i º ºs e º a tº º ºs e º 'º º e º 'º 1,626,000,000 2,681,000,000
Aggregate Wal-
tles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,451,500,000 5,513,500,000

Increase in Walue of over 1,000,-
000,000. —Here is an increase in value of over
$1,000,000,000 in these crops and an increase of
over $1,000,000,000 in the value of farm ani-
mals, and it must be remembered that 1901 was
a poor year and 1896 a good year in farm pro-
duction. What made this increase of over
$2,000,000,000? It was the demand of fully
employed, well-paid people, due to a tariff that
enables us to do our own work instead of hiring
the cheap labor abroad to do it for us.
In this connection I want to quote the follow-
ing from the Orange J udd Farmer of October 19,
1901 : -
Encouraging as is the agricultural situation for
, this year, it is still more interesting when we
reflect that 1001 is the fifth year of the suc-
cessive upward trend to agricultural values. Some
Conception may be formed of the tremendous im-
provement that has been wrought in the farmers’
financial condition when we find that for the past
five years the cereal crops made a value of
$6,245,000,000, compared to $5,2S2,000,000 during
the five years of agricultural depression ending
With 1896. The annual average value of cows,
Cattle, hogs, and sheep for the past half decade
has been $345,000,000 more than for the previous .
period, but the total value of horses still shows
a heavy decline from the boom of 1892.
All history affords no precedent for so remark-
able a transformation. It is shown also by the
degree to which farm mortgages have been paid
up, and by the Substantial improvements that have
been made in farm buildings and equipment, and
by the Strong upward tendency to the value of
farm lands, especially in the Central and West-
ern States. - -
6
Even billions of dollars can inadequately ex-
press the improvement in agricultural values and
incomes compared to the depths of the late depres-
sion. And because farmers are in this prosperous
condition, and because they are the greatest Con-
'sumers of manufactures, the industrial Outlook
ls generally satisfactory and encouraging.
Here is a statement of fact by a conservative
From 1893
to 1897 we had practical free trade. From
1897 to 1901 we had protection. No one claims,
Mr. President, that the tariff has anything to
do with the size of crops, but I do maintain that
it has much to do with values. The 3,000,000
idle men of 1896 could not buy much bread.
They could not eat as many potatoes, apples,
farm journal without the reasons.
and other products of the farm, and as we con-
..sume 90 per cent of our farm products at home,
our farmers are dependent on the purchasing
power of the people for both quantity disposed
of and price received.
A protective tariff insures the farmer against
the disaster that would otherwise attend a short
crop because the people can afford to pay the
enhanced price. That is why the farmer got
nearly twice as much for his short corn crop of
last year as he did for his good crop of 1896.
I showed in this Chamber two years ago that the
farmers of the country lost $10,000,000,000
because of low-tariff agitation and operation.
Since the Dingley law went into effect they
have gained in increased prices and enhanced
values much more than this amount. They have
paid off mortgages to the amount of many mil-
lions; they have bought millions of dollars'
worth of new machinery and implements; they
have improved their property, and many farm
values are to-day double what they were in 1895
and 1896. - --
During the fiscal year 1901 we exported
nearly a billion of dollars’ worth of agricultural
products against a little more than half a billion
dollars' worth in each of the fiscal years 1895
and 1896. The average agricultural exports
during the years 1898, 1899, 1900, and 1901
exceeded $850,000,000 in value against $550,-
000,000 in 1895 and 1896, a gain of $200,000,-
000 a year, and yet the crops of 1895 and 1896
were abnormally large.
I want to emphasize this fact, Mr. President,
that it is not the size of the farmer's crop, but
the value of the crop which rewards his indus- .
try; and the value must and does depend on
the tariff, which gives good wages the year
round to all consumers. And the very prosperity
which comes to the farmer goes back to the
manufacturer and merchant and railroads and
labor of all kinds in the increased consumption
of implements, clothing, building material, and
necessaries and luxuries of a thousand and one -,
kinds. So we all become interdependent, and
protection scatters its benefits and blessings far
and wide.
Sheep and Wool. —Free wool was one of
the features of the Wilson-Gorman tariff. The
Dingley law reimposed the adequate protection
given by the McKinley law. Let me give a few
figures showing the result, first, as regards
domestic production and imports of wool:
Imports.
Year. Production.
Pow?? ds. Pownds.
1898. . . . . . . . . . . . . . . . . . . 303,000,000 || 172,435,838
1894. . . . . . . . . . . . . . . . . . . 298,000,000 55,152,558
1895. . . . . . . . . . . . . . . . . . . 310,000.000 206,033,906
1896. . . . . . . . . . . . . . . . . . . 273,000,000 || 230,911,473
1897. . . . . . . . . . . . . . . . . . . 259,153,251 350,852,026
1898. . . . . . . . . . . . . . . . . . . 266,720,684 || 132,795,302
1899. . . . . . . . . . . . . . . . . . . 272,191,330 76,739,219
1900. . . . . . . . . . . . . . . . . . . 288,636,621 155,918,455
1901. . . . . . . . . . . . . . . . . . . 302,502,328 || 103,583,505
Nearly 800,000,000 pounds of wool were im-
ported during the three years 1895, 1896, and
&
*.

7
.*
1897, and, Mr. President, I am informed that we
have not used it up yet. Now, let me give a list
of prices of Ohio fleece wool on the 1st of Oc-
... tober last, as furnished by Mauger & Avery, of
Boston:
*Year. Fine. 㺠Coarse
Cent8. Cents. Cent8.
1898. . . . . . . . . . . . . . . . . . . . . . 23 24 21
1894. . . . . . . . . . . . . . . . . . . . . . 19 21 19
1895. . . . . . . . . . . . * c e º e º ºs e º is 18 21 19
1896. . . . . . . . . . . . . . . . . . . . . . 18 19 18
1897. . . . . . . . . . . . . . . . . . . . . . 27 29 25
1898. . . . . . . . . . . . . . . . . . . . . . 28% 30 - 24%
1899. . . . . . . . . . . . . . . . . . . . . . 31 83%
1990. . . . . . . . . . . . . . . . . . . . . . 26% 28% 26%
1991. . . . . . . . . . . . . . . . . . . . . . 26%
And it must be understood that these prices
under the Dingley law have been maintained in
spite of the lowest figures abroad ever known.
Our woolgrowers have reaped a profit of a few
cents on every pound of wool produced, while
£he London market has shown the greatest
slump in its history. So much for wool. Now
a glance at sheep and their value:
Year Number. Value.
1893. . . . . . . . . . . . . . . . . . . 47,272,553 || $125,909,264
1894. . . . . . . . . . . . . . . . . . . 45,048,017 89,186,110
‘1895. . . . . . . . . . . . . . . . . . . 42,294,064 66,685,767
1896. . . . . . . . . . . . . . . . . . . 38,298,783 65,167,735
1897. . . . . . . . . . . . . . . . . . . 36,818,643 67,020,942
1898. . . . . . . . . . . . . . . . . . . 37,656;690 92,721,133
1899. . . . . . . . . . . . . . . . . . . 39,114,453 107,697,530
1900. . . . . . . . . . . . . . . . . . . 41,883,065 122,665,913
1901. . . . . . . . . . . . . . . . . . . 43,000,000 134,000,000
These are the very conservative figures of the
Department of Agriculture. These figures of
sheep and wool show just what free wool and
protected wool do for the farmer. But what of
our woolen industry? Closed mills and mills
working part time in 1896. Busy mills in 1902.
The wgolen industry has been greatly depressed
throughout the world because of overproduction.
Our woolen manufacturers have suffered too,
but not to the extent of those abroad, and the
outlook is far from gloomy. Full regovery may
Come at any time, but it is different with the
sheep industry. In this connection I want to
quote a pat paragraph from a speech delivered
by my friend the senior Senator from Wyoming
before the Wool Manufacturers Association at
the Hotel Savoy, New York, January 9, 1901.
Senator WARREN said:

Gentlemen, woolen mills, may be shut down at
dark and reopened at daylight; shut down a
month, or even a year, and still be there on the
ground when needed for business; but sheep can
Inot be so shut down and reopened. It takes
years to recover from losses suffered, while it
Only takes months to effect them.
Our Tobacco Industry. — No one will
dispute that tobacco and cigars are a luxury,
and that their increased consumption must in-
It will be interest-
ing, then, to note the Gonditions of the industry
dicate increased prosperity.
now, as compared with low-tariff times of five
years ago. The following table shows the com-

parison:
PRODUCTION AND CONSUMPTION OF TOBACCO IN
THE UNITED STATES.

Produc- Used in
Fiscal tion of cigar cigars and Cigar output.
Year. leaf. cigarettes.
Pounds. Pou?, ds.
1894. . . . . S8,650,000 87,336,348 # 4,966,917,433
1S95. . . . . 66,500,000 89,680,605 || 4,163,972,440
1896. . . . . 77,000,000 93,764,920 4,237,755,943
1897. . . . . 110,662,750 90,950,987 || 4,063,169,097
1898. . . . . 105,702,450 | 104,116,393 || 4,910,937,897
1899. . . . . 147,106,050 | 104,589,331 5,077,287,824
1900. . . . . 142,686,250 | 120,350,271 5,963,170,381
1901. . . . . 131,444,050 | 128,448,475 | 6,475,438,411
8
It will be seen that our tobacco production is
double what it was in 1895 or 1896, and that
The
increase in cigar manufacture has been more
we are consuming about the entire output.
than 50 per cent. The tobacco used in the cigar
and cigarette output for the year ending June
30, 1901, was approximately 128,448,475 pounds.
To this add 20,000,000 pounds used in Smoking
tobacco and 24,865,170 pounds imported, and a
total of 173,313,645 pounds was apparently
consumed. But on June 30, 1901, there were
17,896,518 pounds in hand, which would leave
155,417,127 as being used. Deducting 5,417,127
pounds exported, and a total of about 150,-
000,000 pounds would be required. This was
practically the size of the domestic crop for
...lº and 1900, which brought the best price for
years.
* Manufactures. –While the census report
on manufactures for 1900 is most satisfactory,
it by no means shows the full result of the
operation of the Dingley law. The total value
of products for 1900 is given at $13,040,013,638,
-as against $9,372,437,283 in 1890. We have
progressed wonderfully in the last two or three
years, and it is likely that the output for 1902
will exceed $15,000,000,000, which is double the
output of 1895 or 1896.
tions and combinations, the number of manu-
In spite of consolida-
facturing establishments increased over 44 per
cent in the last decade.
The following table, which I have compiled
from the census report on manufactures, will
show the great gain we made in our large indu-
stries during the last decade in spite of the
adverse conditions of four years, affected by a
low-tariff law:
Manufacturing output in certain industries,
1890 &nd 1900.

Articles. 1890, 1900.
Agricultural implements. $81,271,651 $101,207,428
Boots and Shoes, factory
product . . . . . . . . . . . . . . 220,649,358 261,028,580
Carriages and wagons. . . 114,551,907 121,537,276
Cars, etc. . . . . . . . . . . . . . . . 129,461,698 || 218,238,277
Chemical products. . . . . . 174,699,079 || 202,582,396
Cotton maanufactures. . . . . 267,981,724 339,198,619
Flouring and grist mill
products . . . . . . . . . . . . . 513,971,474 560,719,063
Iron and Steel. . . . . . . . . . 478,687,519 || 835,759,034
Leather . . . . . . . . . . . . . . . 171,063,337 204,038,127
Liquors . . . . . . . . . . . . . . . 289,775,639 340,615,466
Lumber and timber
products . . . . . . . . . . . . . 437,957,382 566,832,984
Paper and pulp. . . . . . . . 78,937,184 || 127,286,162
Printing and publishing. 179,859,750 222,983,569
Shipbuilding . . . . . . . . . . . 38,065,410 74,578,158
Silk and silk goods. . . . . 87,298,454 || 107,256,258
Slaughtering . . . . . . . . . . . 561,611,668 || 786,603,670
Wool manufactures. . . . . 345,655,524 | 400,093,833
These are but a few of our principal industries.
in which I wish I could make the comparison
between 1902 and 1896. To some extent this
can be done in our iron and steel manufactures.
While we have made wonderful progress in
all lines of manufacturing since the enactment
of the Dingley law, it is in iron and steel prod-
ucts that we have made the largest gains. This
can be shown in no better way than by a com—
parison of pig-iron production for the past few
years. It has been as follows:
Tons of 2,240 pounds.
1894 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,657,388
1896 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,446,308
1896 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,623,127
1897 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,652,680
1898 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,773,934
1899 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,620,703
1900 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,789,242
1901 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,878,354
This year the amount will exceed 17,000,000
tons, or nearly three times the production of
1894.
Iron and Steel Production.—The total
production of all kinds of iron and steel rolled
into finished forms in the United States since
1892 can be seen from the following table, taken
from the Annual Report of the Iron and Steel
ASSociation;
9
Production of rolled iron and steel, gross tons, 1892–1901.
Bars, Plºites
Iron and hoops, Wiſe and . Cút
Year. steel rails. skelp, and rods. sheets, ex- nails, Total.
plate.
1892. . . . . . . . . . . . . . . . . . 1,551,844 3,033,439 627,829 751,460 201,242 6,165,814
1893. . . . . . e e e e s e e s m e s tº 1,136,458 2,491,497 537,272 674,345 136,113 4,975,685
1894. . . . . . . . . . . . . . . . . . 1,021,772 2,155,875 673,402 682,900 108,262 4,642,211
1895. . . . . . . . . . . . . . . . . . 1,306,135 3,005,765 791,130 991,459 95,085 6,189,574
1896. . . . . . . . . . . . . . . . . . 1,122,010 2,731,932 623,986 965,776 72,137 5,515,841
1897. . . . . . . . . . . . . . . . . . 1,647,892 3,081,760 970,736 1,207,286 94,054 7,001,728
1898. . . . . . . . . . . . . . . . . . 1,981,241 3,941,957 1,071,6S3 1,448,301 70,188 8,513,370
1899. . . . . . . . . . . . . . . . . . 2,272,700 4,996,801 1,036,398 1,903,505 85,015 10,294,419
1900. . . . . . . . . . . . . . . . . . 2,385,682 4,390,697 S46,291 1,794,528 70,245 9,487,443
1901. . . . . . . . . . . . . . . . . . 2,874,639 5,785,479 1,365,934 2,254,425 68,850 12,349,327

This shows an increase of over 100 per cent
since 1895–96. Cut nails have given way to
wire nails, the production of which has grown
enormously since adequate protection was given
to the industry in 1883. The following table
shows the result:
. Production of wire mails in kegs of 100 pounds
1882. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
1883. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
1884. . . . . . . . . . . . . . . tº e º e º e = e tº a e e s = e º e s º e 120,000
1885. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
1886. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
1887 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
1888. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000
1889. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000
1890. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000
1891. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,114,385
1892. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,719,524
1893. . . . . . . . . . * * * * * * * * * * * * * * * * * * * * * * * * * 5,095,985
1894. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,681,801
1895. . . . . . . . . . . . . . tº e e º e º sº e e º 'º a tº º e º e < e s is 5,581,403
1896. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,719,860
1897. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,997,245
1898. . . . . . . . . ** * * * * * * * * * * * * * * * * * * * * * * * * * 7,418,475
1899. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,618,130
1900. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,233,979
1901. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,803,822
The price in 1883 was 8.35 cents per pound,
and in 1902, 2.45 cents per pound.
Tin Plate. —Another more recent but none
the less remarkable instance of an industry
made possible by protection is our tin-plate |
industry, due to the McKinley law. The fol-
lowing table shows the change in our production
and importations:
Production and importation of tin plate.

Year. ImportS. º
G?"OSS Gross
to?vS. tons.
1890. . . . . . . . . . . . . . . . . . . . . . . . 329,435 None.
1891 . . . . . . . . . . . . . . . . . . . . . . . . 327,882 999
1892. . . . . . . . . . . . . . . . . . . . . . . . 26S,472 18,803
1893. . . . . . . . . . . . . . . . . . . . . . . . 253,155 55, 182
1894. . . . . . . . . . . . . . . . . . . . . . . . 215,068 74,260
1895. . . . . . . . . . . . . . . . . . . . . . . . 219,545 113,666
1896. . . . . . . . . . . . . . . . . . . . . . . . 119,171 160,362
1897. . . . . . . . . . . . . . . . . . . . . . . . S3,851 256,598
1898. . . . . . . . . . . . . . . . . . . . . . . . 66,775 326,915
1899. . . . . . . . . . . . . . . . . . . . . . . . 5S,915 360,875
1900. . . . . . . . . . . . . . . . . . . . . . . . 66,055 302,665
1901 . . . . . . . . . . . . . . . . . . . . . . . . 52,625 399,291
So great is our consumption of iron and steel
that we cannot supply the demand at any price,
and we are forced to importations.
Our exports of manufactures, although but a
Small per cent of our production, show a re-
markable advance under the Dingley tariff, as
will be seen from the following table:
* Value.
1893. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $158,023,118
1894. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1S3,728,80S
1895. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183,595,743 -
1896. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228,571, 178
1897 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277,285,391
1898. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,697,354
1899. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339,592,146
1900. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433,851,756
1901 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412,155,066
For the present year the value will be about
10

the same as last year in spite of a decrease in
price in many commodities and the falling off in
iron and steel exports, due to home consumption.
The manufacturing situation to-day in the United
States can be summed up in the statement that
* praetically every mill and factory and shop is
working to full capacity, with orders far ahead
and prices most satisfactory.
Jin the Territories. – In connection with
this subject of our manufactures I want to call
attention to the fact that the large increase is
-not confined to the great manufacturing States
of the East.
* are doing. Here are the figures from the
Let me show what our Territories
****
Census Bureau:
Value of product.
• ‘Territory. - º:
1900. 1890. -
Arizona . . . . . . . $21,315,189 || $947,547 2,150
New Mexico . . 5,605,795 || 1,516,195 270
Indian Territory 3,892,181 248,932 1,464
Oklahoma . . . . . . 7,083,938 180,445 3,826
Total 37,897,103 || 2,893,119 1,210
Here also are the figures from three States
that confirm my contention that protection is
spreading its benefits in every part of the land:
State Value of product. Increase,
& t.
1900. 1890. ” “”
Idaho . . . . . . . . . $4,020,632 $1,396,096 188
Nevada ... . . . . . 1,643,673 | 1,105,063 49
-Wyoming . . . . . 4,301,240 2,367,601 82
As showing how wages in manufacturing af-
fect value of farm 'products, I want to present
the following figures from the census report of
Arizona:
-- Increase,
1900. 1890. per cent.
Wages . . . . . . . . -$2,369,065 || $302,146 684
Farm products; 6,179,397 | 1,045,970 480
The argument holds good in Arizona as well
as Massachusetts and every other section of the
country.
Beet Sugar.—An industry made possible
by the Dingley law was the manufacture of sugar
from beets. The progress made is seen in the
following figures:
3. lsº 1901-2.
* * * * - • re-e ‘p
Number of factories. . . . . . . . . . . . -7. 42 &
Tons produced. . . . . . . . . . . . . . . . . . 40,000 | 185,000
* * *
The new plants projected for 1902number 83,
with a capital of $50,000,000, capable of a total
output of 550,000 tons annually and a purchas-
*N* ***** *
*.
ing capacity of $20,000,000 worth of spgar
beets. -
Mineral Products. –Our mining statistics -
show the same substantial increase as our agri-
culture and manufacturing. I give simply -à
comparison between 1896 and 1901 in a few
products and the total value: *
1896. 1901.
Gold . . . . . . . . . . . . . . . . . . . $53,000,000 $83,000,000
Iron ore . . . . . . . . . . . . . . 23,000,000 75,000,000
Coal . . . . . . . . . . . . . . . . . . 196,000,000 325,000,000
Stone . . . . . . . . . . . . . . . . . 30,000,000 55,000,000
Total mineral products|.622,000,000 | 1,200,000,000
The iron ore, coal, and stone are put into use
as fast as mined, and add most materially to our
manufacturing and building output. We have
almost doubled the value of our mineral products
under the demands of industry made possible by
a return to protection, and the mining, transpor-
tation, and conversion into a usable-commodity,
consisting, as it does, of so much increased labor,
is but another testimony, to the benefits of the
Dingley law.
11
Trailroad Business. --The effect of the
great consumption of farm products and man-
ufactures is nowherc more apparent than in the
enormous railroad business of the country. We
have now passed the 200,000 mark in system
mileage and are approaching 300,000 in total
miles of track. Over 1,000,000 men are em-
ployed with annual wages exceeding $600,000,000.
The railroad systems of the country represent
a capital of $12,000,000,000, with annual earn-
ings exceeding $1,500,000,000. Six hundred
million passengers are carried annually and over
1,100,000,000 tons of freight.
Mr. President, to show the difference between
I want now,
railroad business in this country during low-
tariff times and protection times. The following
table will show statistics of the Interstate Com-
merce Commission and Poor's Manual:



LOW-TARIFF PERIOD.
Freight car- Miles Dividends -
Years ried, tons. built. paid. Gross receipts.
1895. . . . . . . . . . . . . . . . . . . . . . . . . . . 696,761,171 1,650 $81,685,774 $1,092,395,437
- 1886. . . . . . . . . . . . . . . . . . . . . . . . . . . 765,891,3S5 21,704 81.528,154 1,125,632,025
..f397. . . . . . . . . . . . . . . . . . . . . . . . . . . 741,705,946 1,818 83,680,040 1,132,866,626
Average. . . . . . . . . . . . . . . . . 734,786,164 1,724 82,297,989 1,116,964,696
-- PROTECTIVE-TARIFF PERIOD.
1888. . . . . . . . . . . . . . . . . . . . . . . . . . . 879,006,307 2,215 $94,937,526 $1,249,358,724
1899. . . . . . . . . . . . . . . . . . . . . . . . . . . 959,763,583 3,966 109,032,252 1,336,096,379
1999. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,101,680,238 3,503 140,343,653 1,501,695,378
1901. . . . . . . . . . . . . . . . . . . . . . . . . . . *1,350,000,000 5,057 | . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average. . . . . . . . . . . . . . . . . 1,072,612,542 3,685 114,771,144 1,362,450,227
IOW-TARIFE PERIOD. PROTECTIVE-TARIFF PERIOD.
4 Number Freight Number Freight
Year. Wages paid. of em- rate per Year Wages paid. of em- rate per
: - ployees. ton-mile. . * ployees. ton-mile.
Cents. 1898. . . . . . . . . $495,055,618 874,558 F0.755
1895. . . . . . . . $445,508,261 785,034 0.839 | 1899. . . . . . . . 522,967,896 928,924 . 724
1896. . . . . . . . 468,824,531 826,620 .806 | 1900. . . . . . . . 577,264,841 1,017,653 .729
1897. . . . . . . . 465,601,581 823,476 .7.08 || 1901. . . . . . . . *634,000,000 | . . . . . . ... . . . . . . . . . .
Average.’. 459,978,124 silvio .814 Average. . 557,072,091 940,378 .735
* Estimated.
12 - S.
A 50 Per Cent Increase.—t regret ex-
ceedingly that I cannot get the exact figures
for 1901 and an estimate for the present year,
for they would show a most substantial increase
over 1900. Enough is known, however, to war-
rant the statement that our railroad business is
- In OW more than 50 per cent better in every way
than during the low-tariff period.
The railroad business is the index of the
country's progress and prosperity. It is depend-
ent upon the demand made by consumers and the
supply of producers... It is a fact that for three
years our railroads have been pushed to their
very utmost facilities of rolling stock. A car
famine is the only famine we have known under
the Dingley law. Locomotives and freight
cars cannot be made fast enough with all
the facilities of our great locomotive and car
works. *3,
Our free traders delight in calling our rail-
roads a “non-protected” industry, and yet there
is no business in the country that shows so
quickly and so substantially the effect of the
tariff as the railroads. Why did the freight
business practically stand still during the opera-
Why has it
increased at the rate of 15 to 20 per cent yearly
tion of the Wilson-Gorman law?
under the Dingley law and would increase even
more rapidly if cars and locomotives could be
had? Why were so many railroads in the hands
of receivers in 1896 and so few in receivers'
hands in 1902.
stocks increased so enormously in the past five
Why have the value of railroad
years? Do not tell me these are fictitious
values or I shall point to the dividends now paid
as compared with 1896—fully 100 per cent
more. And to whom are these dividends paid?
From the report of the Interstate Commerce
Commission I take these figures for 1900;
Stocks outstanding. 4 & 4 & 1 & tº it tº a tº 4 fl & .#5,845,579,593
1,470,218,972
Not owned by railway corporations. 4,375,360,621
Owned by railway corporations. . . .
Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,900,626,823
Owned by railway corporations. . . . 472,831,377
Not owned by railway corporations... 427,795,446
Total stocks and bonds. . . . . . . . . . . . . 10,746,206,416
Owned by railway corporations. . . . 1,943,050,349
Not owned by railway corporations, 8,803,156,067
Who owns the railroads then? Let me give a
few figures:
Stockholders.
New York Central . . . . . . . . . . . . . . . . . . . . . . . 15,000
Pennsylvania ... . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,000
New York, New Haven and Hartford..... 10,000
Union Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000
Chicago, Burlington and Quincy . . . . . . . . . . 13,000
Northern Pacific . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Atchison, Topeka and Santa Fe . . . . . . . . . . 13,000
Illinois Central . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Southern Railway . . . . . . . . . . . . . . . . . . . . . . . . 4,700
Brie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,450
And so on, and the dividends are scattered
through thousands of different channels, carry-
ing income and support to a quarter million of
people, besides the millions concerned in the
earnings of over a million employees.
Shipping. —I have shown the wonderful
progress made in railroading during the past
few years. I now wish to present some figures
showing the remarkable increase in tonnage of
our merchant marine. The figures are from the
report of the Bureau of Navigation:
• , I3

Vessels built and total tonnage. Tonnage Per centſ
of mer- of foreign
Yº: •ºns < * ‘. chant ma- trade car-
UIL16. Oats rine of the ried in
Sailing. and Steam. Total. United American
- barges. States. Vessels.
\ Gross Gross Gross Gºross
tons. tons. tons. tons.
1890 . . . . . . . . . . . . . . . . . tº 102,873 32,204 159,046 294,123 4,424,497 12.9
1891 . . . . . . tº $ e º 'º e º ºs e º is tº tº 144,290 39,975 185,037 369,302 4,684,759 12.5
1892 . . . . . . . . . . . . . . . . . . . 83,217 23,885 92,531 199,633 4,764,921 12.3
1893 . . . . . . . . . . . . . . . . . . . 49,348 27,923 134,868 211,639 4,825,071 12.2
1894 . . . . . . . . . . . . . . . . . . . 37,827 9,648 83,720 131,195 4,684,029 13.3
1895 . . . . . tº e e º s e e s a e e s is a 34,900 6,949 69,753 111,602 4,635,960 11.7
1896 . . . . . . . . . • e º ºs e e s ∈ º e 65,237 23,832 138,028 227,097 4,703,880 12
1897 . . . . . . . . . . . . . . . . . . . 64,309 61,770 106,153 232,232 4,769,020 11
1898 . . . . . . . . . . . . . . . . . . . 34,416 40,204 105,838 180,458 4,749,738 9.3
1899 . . . . . . . . . . . . . . . . . . . 98,073 50,907 151,058 300,038 4,864,238 8.9
1900 . . . . . . . . . . . . . . . . . . . 116,460 . 44,802 202,528 393,790 5,164,839 9.3
1901 . . . . . . . . . . . . . . . . . . . 126,165 83,733 273,591 483,489 5,524,218 8.2
It, will be See Il that We Were doing very well 1897. . . . . . . . . . . . . . . . . . . . . . . . . . . . tº 54,179,545,030
tº § º 1898. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,924,820,769
during the operation of the McKinley law, but isos......................... 88,909,661,776
what a collapse under the Wilson-Gorman law || 1900. . . . . . . . . . * * * * * * * * * is e s e e s is e e . 84,582,450,081
1901. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,190,226,021
Now note the advance under the Dingley tariff.
Our tonnage built last year was four times that
built in 1895. It will be seen that over 90 per
cent of our foreign trade is carried in foreign
bottoms, so that our tonnage of merchant marine
is used almost wholly in coast and lake commerce.
The enormous increase in tonnage, then, gives a
pretty accurate idea of the increase in our coast
and lake traffic -
Bank Clearances. –Our bank clearings
represent the volume of business transacted, as
about 98 per cent of settlements are made by
bank checks and credits which are recorded in
the clearing houses of the country. Here, then,
we get a basis of relative business done; and to
show the comparison I present the total bank
clearings since 1892, taken from the figures of
the Bureau of Statistics of the Treasury Depart-
ment:
Bank clearanceS.
1892. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,833,572,438
1893. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,880,682,455
1894. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,028,496,746
50,975,155,046
51,935,651,733
1895. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1890. . . . . . . . ... •- - - - - - - - - - - - - - - -
It will be seen how business fell off in 1893
and 1894 when we were threatened with free
trade and began to live under the operation of
the Wilson-Gorman law. We recovered but little
in the next two years, and 1897 found us doing
less business than in 1892. But note the result
since, under the workings of the Dingley tariff.
Observe the great increases each year, till in
1901 we find the clearings more than double
what they were in 1895, or 1896. These are the
records of actual business transactions, for bank
balances are computed to a cent. The clearings
for the first four months of 1902 were $39,000,-
000,000, showing that we are about equaling
the record-breaking figures of last year. we
are almost doubling the figures of 1892, a most
astonishing result. In this connection, I may
say that the clearings of New York City in 1902
are 60 per cent larger than the clearings of
London, though the latter city has a million more
population and does most of the business, of
England.
14
Post-Office Business. –From bank clear-
ifigs to postage stamps is a wide step, but H
wańt to emphasize the value of a protective
târiffin small transactions as well as great. It
---
would seem as if one need never to retrench in
the matter of postage, no matter how poor the
times may be. The constant increase in popula-
tibh makes an increase in postal revenues almost
imperative, and yet the little 1 and 2 cent
stamps, like everything else, show the difference
between adversity and prosperity. I present
hèrewith a table showing our postal receipts for
a period of years from 1889 to 1902:
1889. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $56,175,611
1896. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,8S2,097
i801. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,931,786
1893. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,930,476
1898. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,896,933
1894. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,080,479
1895. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,983,128
i896. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,499,208
1897. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,665,463
1898. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,012,619
1899. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,021,384
1900. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,354,579
1901. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,631, 193
1902..... tº e º e s e s e e º e e s e e s e e s a s e s - e s e *122,680,000
* Estimated from ten months.
Here (from 1889 to 1898) is the constant in-
crease we should look for.
year following. In short, the average annual 1
increase from 1893 to 1897 is only $1,689,633,
really a falling off considering the increase in
population. But look at the result since the
Dingley law went into effect. An increase of
over $40,000,000, Ör an average of $8,000,000
a year. We are increasing our expenditures
Hargely every year, and yet our revenues are in-
-creasing still móre rapidly till soon we will have
a self-supporting department and ultimately 1
In 1894 there is ani;
actual decrease and no material increase the li
gent postage.
Our rural free delivery is being rapidly ex-
tended till soon every farmer in the land will
have his daily mail delivered at his door, giving
him his daily paper, daily weather and crop
reports, and making him more expert in his
labor, more intelligent, and more prosperous and
happy. Thus protection scatters its blessings
with the increased sales of the postage stamps
as it does with the ton of rails or the huge loco-
motive. …” *
Telegraph and Telephone. — Somewhat
akin to postal business is that of our telegraph .
and telephone companies. To many the tele-
graph and telephone message is a necessity; to
others it is a convenience; to others a luxury.
in a most peculiar and significant way, them, the
statistics tell the story of prosperity. The fol- .
lowing table shows the receipts of the Western
Union felegraph Company since 1889:
1889. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26,783,194
1S90 tº e º - e. e. e. e. e. e. e. e. * * º tº º e s a * * * 22,387,029
1891. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,034,327
1892. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,756,405
1893. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , 24,978,443
1894. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,852,655
1895. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,218,619
1896. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , 82,612,736
1897. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,638,859
1898. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,915,733
899. . . . . . . . . . . * * * * * * * * * * * * * * * * * * * * . . 23,954,812
1900. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,758,570
i001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,354,151
902. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . *27,850,000
As in everything else, we see an increase up
to 1893, then a decrease till 1897, then a most
substantial increase since. This increase during
the operation of the Dingley law has been in
spite of a most phenomenal increase in telephone
business, an increase in the Postal Telegraph
Company's business, and private-wire business.
This increase in telephone business can be £een
from the following table, showing subscribers
and employees since 1894:
15

*-** * * *-** **
**s-rºººº...as º ºx-º “… *** * * * *
* Sub- EDm-
Calendar year. scribers. ployees.
1894 . . . . . . . . . . . . . . . . . . . . . . . 237,188 10,421 f
1895 . . . . . . . . . . . . . . . . . . . . . . . 243,432 11,094
1896 . . . . . . . . . . . . . . . . . . . . . . . 281,695 11,930
f e e º 'º e º 'º tº ſº º sº G & ºf e º º is g º e º 'º' 325,244 14,425
Avēśāše annûâſ increase.. 23,353 1,335
1898 ....................... 384,230 | 16,682
tº . . . . . . . . . . . . . . . . . . . . ...! 465,180 19,668
i866 ....................... 682,946 25,741
fººt ... . . . . . . . . . . . . . . . . . . . . 800,880 32,837 |
Average annual increase... 138,883 5,385
These figãfes show nearly five times the an-
ñtial fiſcréase under the Dingley law as compared
with the years under the Wilson-Gorman tariff.
And right here I want to show a comparison of
the annual number of telephone messages in dif-
ferent countries according to the latest avail-
able statistics:
Austria-Hungary, 1899 ............. 116,724,879
Rüssia, 1898 . . . . . . . . . . . . . . . . . . ... 103,426,088
Germany, 1899 . . . . . . . . . . . . . . . . . . . . 540,324,386
Fráncé, 1898 ...................... 141,226,883
Great Britain, 1900 ................ 639,476,448
United States, 1901 2,300,000,000
a t e g º e º 'º º sº e s p a sº a
We do more telephoning than all the rest of
the world put together at from 5 to 10 cents a
message. All this has been made possible by
the great prosperity brought to us by the Dingley
tariff law.
Savings and Surplus. – Our savings-
banks deposits represent a portion of the surplus
earnings of the masses. The capitalist, the
Íñáñtifácturer, and the merchant do not use the
savings banks. It is the wage-earner who uses.
that depository for a part of his surplus funds,
and now, Mr. President, I want to show just
what the amount of these savings have been
during the pâst ten years:
Number of
Year. depositors. Deposits.
1893 . . . . . . . . . . . . . . . . 4,830,599 1,785,150,957
1894 g e º e º 4 s g g º e º e º 'º e 4, 777, 687 1 ,747, 96t ,280
1895 . . . . . . . . . . . . . . . . 4,875,519 1,810,597,023
1896 . . . . . . . . . . . . . . . . 5,065,494 1,907,156,277
1897 . . . . . . . . . . . . . . . . 5,201,132 1,939,376,035
1898 . . . . . . . . . . . . . . . . 5,385,746 2,065,631,258
1899 . . . . . . . . . . . . . . . . 5,687,818 2,230,366,954
1900 . . . . . . . . . . . . . . . . 6, 107,683 2,449,547,885
1901 . . . . . . . . . . . . . . . . G,373,098 2,601,189,291
1902 . . . . . . . . . . . . . . . . 6,784,392 2,845,691,300
Including the savings in State banks, there
are now over $3,000,000,000 of savings in the
banks of the country against but little more
than half that sum in 1894. It will be seen that
in 1894 millions were withdrawn from the
savings banks and from 1893 to 1897 the .in-
crease was only $154,225,078, or an average in-
crease of $38,556,245 a year, while from 1897
to the present time the increase has been $906,-
315,265, or an average of $181,263,053 a year.
This is a small part of what protection is doing
for the people. And this is by fio means idle
money. Every dollar of it is at once put into
use. It is loaned on bond and mortgage and is
employed in buying construction and building
material, and in State, and county, and municipal
improvements—in the employment of labor at
every turn.
My own State, New Hampshire, hās had an
interesting experience in the matter of savings-
banks deposits. For the years 1894, 1895, 1896,
and 1897 there was an aggregate decrease of
deposits to the enormous amount of $13,222,416,
while for the years 1900 and 1901 there has
been an increase of $1,988,829.
But these savings-banks deposits by no means
measure the surplus of the people's earnings.
There are the building and loan associations, the
insurance premium, the installments paid on the
little home and on the furniture, the money
. . 16

spent for educating the children, and for the
luxuries and ornaments of the body and home.
Three billion dollars of savings put away for a
rainy day and increasing at the rate of $200,-
000,000 a year, and we are by no means a provi-
dent people. We are the most extravagant
people on earth, and we can afford to be under
8 protective tariff. It may be said that our
deposits are larger than those of any other
country because of our larger population. Let
‘me give a table showing the average to each
depositor in a few countries:
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $408
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
France . . . . . . . . . . . . . . . tº e º e º e º e s tº e s is e < e s s e s s 83
Belgium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ‘. . . . . 80
Prussia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Whether we take total deposits, number of
depositors, average to each depositor, or de-
posits per capita, the United States is not only
far in the lead, but increasing faster than any
other country. *
Our deposits exceed those of Great Britain,
France, Russia, and Austria combined, and these
countries have a population four times as large
as that of the United States. .
Insurance.—I have shown, Mr. President,
that we have nearly $3,000,000,000 deposited in
our savings banks by almost 7,000,000 deposi-
tors and that we are adding $200,000,000 a year,
and yet the insurance premium is but another
form of Savings bank, and we are paying annual
premiums and assessments upon life insurance
to the amount of $400,000,000. Let me present
some of the insurance figures since 1893 that
we may compare low-tariff times with protection
The statistics are from the New York
Insurance Report, but refer to the total business
of the United States:
times.
—ºn
Policies issued.
Year Total in-
tº Amount of COIſle.
Number. insurance.
1S93 404,236 || $1,058,659,846 $236,683,206
1894 396,843 985,520,033 256,624,478
1S95 366,565 864,815,534 266,897,202
1896 350,106 796,124,326 279,373,107
1897 431,457 923,804,876 301,268,179
1898 485,735 1,018,366,027 320,810,628
1890 632,704 1,304,306,028 355,946,005
1900 687,005 1,356,769,653 392,358,941
1901 7S7,747 1,470,317,887 437,935,469
In 1894, 1895, and 1896 there was a decrease
each year in number of policies issued and
amount of insurance written. Policies lapsed
by the thousands, and the loss was incalculable.
Now look at the figures since 1896, a constant
and large increase each year. More than double
the number of policies were written in 1901
than were written in 1896. Nearly double the
amount of insurance. This is a most significant
showing. It means hundreds of millions for
widows and orphans when the income earner is
taken away. - *
From 75 to 80 per cent of the income of our
insurance companies is from premiums, and here
is an addition of nearly $400,000,000 a year to
the $200,000,000 annual increase in savings, all
to be loaned on bond and mortgage, to be put
into commercial use, and most of it to find its
way into the laborer's envelope. Thirteen billion
dollars of life insurance in force in the United
States—more than double that of all the world
put together. But this is not all. We have
over $23,268,047,232 of fire risks in force, and
nearly $100,000,000 are paid in fire losses every
year.
But it is not alone the man who has an in-
creased income in good times who benefits from
a tariff like the Dingley law. The man with a
fixed income year after year benefits relatively .
*
17
just as much. In low-tariff times he is called
* upon by every relative and friend who is out of
work, and his income is cut down correspon-
dingly. Every man who was “touched” a dozen
times a week in 1895 and 1896 appreciates this
-point in these days when there are no appeals
from broken and hard-luck sources.
Foreign Commerce. — I have given
glimpses of our domestic trade under the Dingley
tariff and the wonderful advances we have made
under protection. How about our foreign trade
—the sale of our surplus abroad? In order that
we may consider the matter intelligently, I pre-
sent a table showing our exports and imports
since 1890, taking my figures from the Bureau
of Statistics of the Treasury Department:
Imports and eacports of merchandise, 1890–1901.
Year ending Imports Exports Total imports i Excess.
June 30— and exportS. Imports. Exports.
1890 . . . . . . $789,810,409 $857,828,684 $1,647,139,098 T. . . . . . . . . . $68,518,275
^ 1891 . . . . . . 844,916, 196 884,480,810 1,729,397,006 | . . . . . . . . . . 39,564,614
~-1892 . . . . . . 827,402,462 1,030,27S,148 1,857,680,610 | . . . . . . . . . . ** 202,875,686
1893 . . . . . . 866,400,922 847,665,194 1,714,066,116 * $18,735,728 . . . . . . . . . .
1894 . . . . . . 654,994,622 S92,140,572 1,547,135,194 | . . . . . . . . . . 237,145,950
1895 . . . . . . 731,960,965" 807,538,165 1,539,508,130 | . . . . . . . . . . 75,568,200
1896 . . . . . . 779,724,674 882,606,938 1,662,331,612 | . . . . . . . . . . 102,882,264
1897 . . . . . . ... 764,730,412 1,050,993,556 1,815,723,968 . . . . . . . . . . 286,263,144
1898, . . . . . . 616,049,654 1,231,482,330 1,847,531,984 . . . . . . . . . . 615,432,676
1 1899 . . . . . . , 697,148,489 1,227,023,302 1,924, 171,791 | . . . . . . . . . . 529,874,813
1900 . . . . . . 849,714,329 1,394,479,214 2,244, 193,543 | . . . . . . . . . . 544,764,835
1901 . . . . . . 823,171,165 1,487,764,991 2,310,937,156 | . . . . . . . . . . 664,592,826
. . The figures for the fiscal year 1902, while
they will show a falling off in exports (owing to
our short corn crop of last year and the great
home consumption of manufactures) and an in-
crease of imports, will compare favorably with
recent years. Under the operation of the Dingley
tariff we have become the leading export nation
of the world, passing Great Britain, with her
wonderful prestige of centuries. It will be seen
that our balance of trade differs very much now
from the years 1893 to 1897. In 1893 the
balance was against us, and for the five years
from 1893 to 1897, inclusive, the average was
- only $175,000,000, while during the past five
years the average has been about $600,000,000,
making a total favorable balance under the five
years of the Dingley law of $3,000,000,000.
We are changing under this trade balance
from a debtor nation to a creditor nation, if,
indeed, we have not already done 80. We have
an immense freight bill to pay annually, large
interest disbursements, and exchanges on ac-
count of tourists’ expenses abroad, so that with
much less than our favorable balance we would
have to ship gold abroad in large quantities to
pay our bill, as we have had to do in low-tariff
times. It will be seen from the table that our
exports are nearly double those of 1895. Nearly
$1,000,000,000, or two-thirds, are agricultural
products, which Europe must have regardless of
tariffs, and yet it is in exports of manufacture
that we have made the largest relative gain.
We are exporting double the amount of manu-
factured articles that we were under the Wilson- .
Gorman law, and we are gaining markets in
every quarter of the globe for every product of
our mills and factories, and still the free trader
keeps up the cry for “free raw material,” in
order that we may capture the markets of the
world, ignorant or forgetful of the fact that we
have already 99 per cent free raw material for
all that enters into exports of manufactures.
|
y -- 18
Right here want to call attention to our
great increase in imports, this increase consist-
ing mostly of crude or partly manufactured
articles which are consumed by our manufac-
turers in turning out their finished product.
Thus we see the perfect workings of the Bingley
kaw in our exports and imports. It is safe to
say that in another half decade, if our present
tariff law is undisturbed, our exports will exceed
$2,000,000,000 annually, which, while but a
small amount as compared with our domestic
Tozai value of ºmports and eaſports of gold and silver coin and bullion, 1893–1902.
trade, is still a remarkable exhibition of Añéri-
can progreSS.
Gold and silver.—I now wish to present
a table showing our imports and exports of gold
and silver for recent years. Trade balances are
not settled wholly in gold. There are credits'
and exchanges to be considered, but I fiotice that
our gold generally goes abroad in low-täriff
times and comes back in protection times. Here
are the figures under the Wilson-Gorman law
and the Dingley law:
3 gº - GOLI),
| Excess of • *
- - |
Year ending June 80– Imports. Exports. Imports | Exports
- OVer OWe!"
exports. imports.
i893 .............. e is e e s is e e s - e $21,174,381 $108,680,844 a e e º 'º - - - e º e $87,506;463
1894. . . . . . . . . . . e e s e g º e º e º e s = * * 72,449,119 76,978,061 e ‘º e º º e º a e ſ 4,528,942
1895 ... . . . . . . . . . . . . . . . . . . . . . . 36,384,760 66,468,481 sº º e º e º e º ſº tº º 30,083,721
1896 e e º e º e g c q e s e e s e s s e e s - * * .33,525,065 112,409,947 | . . . . . . . . . . . ,884,
1897 . . . . . . . . . . . . . . . . . . . . . . . . . 85,014,780 40,361,580 $44,653,200 ! . . . . . . . . . . .
1898 . . . . . . . . . . . . . . . . . . . . . . . . . 120,391,674 15,406,391 i04,985,283 • - - - - - - - - - -
1899 . . . . . . . . . . . . . . . . . . . . . . . . . SS,954,603 37,522,086 51,432,517 . . . . . …....?
1900 . . . . . . . . . . . . . . . . . . . . . . . . . 44,573, 184 48,266,754 | . . . . . . . . . . . 3,693,575
1901 tº g c e º e e º e º 'o Q tº e º 'º e º s a s e º 'º e 66,051,187 53,185,177 12,866,010 . . . . . . . . . . .
SILVER.
- º *
:- - -- Excess of ex-
Year ending June 30– ImportS, Exports. port over
* imports.
T 1893 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & e º e º e o e e º e $23,193,252 $40,737,319 $17,544,067
f894 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g º O - e - e. e º º 13,286,552 50,451,265. 37,164,713
1895 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 tº a º e º e 20,211,179 47,295,286 27,084,107
1896 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • * * 28,277, 186 60,541,670 31,764,484
1897. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . q_s o e e º e o o gº 30,533,227 61,946,638 31,413,411
1898 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,927,781 55,105,239 177,453
1899 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,675,056 56,319,055 25,643,990
1900 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,256,302 56,712,275 º;
1901 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,386,521 64,285,180 27,898,659 T


Sihwöf is 3 commodity, and the excess of ex-
ported over $200,000,000 in excess of the amount
-ports should be added to our trade balance, but
exported.
gold is the commodity or money used in settle.
ment. It will be seen that in the four years
1898, 1894, 1895, and 1896 we exported over
$200,000,000 more than we imported, while in
the four years 1897, 1898, 1899, 1900 we im:
The gold holdings of the United States fiów
aggregate $555,000,000, not only the Iargest
amount of gold ever held by the Treasury, but
for the first time the outstanding gold certifi-
cates, exceed in volume the amount of United
19
States notes or greenbacks. No longer ago than
1899 the outstanding certificates amounted to
only $34,500,000; now they amount to $347,-
000,000. In 1892 the circulation of gold cer-
tificates rose to $171,700,000, but during the
free-trade panic the circulation fell to $70,000,-
000. Our $555,000,000 of gold is the largest
amount possessed by any government in the
world.
Failures. – With such phenomenal advances
in all branches of business, with such a great
amount of increased capital invested and con-
Černs in operation, we should almost expect to
find an increased number of failures, for sus-
pensions and failures in business are as inevitable
as sickness and death in the most healthful com-
But sickness and the death rate
depend to a degree on sanitary and other condi-
munities.
tions, and suspension and failures in business
depend, it would seem by the figures I now pre-
sent, bn tariff conditions.
I take the following statistics of failures from
Dun's Review: -
Fałłures. ------
Calendar year. Number. | Liabilities.
1892 . . . . . . . . . . . . . . . . . . . 10,344 | $114,044, 167
1893 . . . . . . . . . . . . . . . . . . . . 15,242 346,779,889
1894 . . . . . . . . . . . . . . . . . . . . 13,885 172,992,856
1895 . . . . . . . . . . . . . . . . . . . . 13,197 173,196,060
1896 . . . . . . . . . . . . . . . . . . . . 15,088 226,096,834
1897 . . . . . . . . . . . . . . . . . . . . 13,351 154,332,071
Rºzo -º- • - - - - - - - - - - - - - - - - 12,186 130,662,899
1899 . . . . . . . . . . . . . . . . . . . . 9,337 90,879,889
1900' . . . . . . . . . . . . . . . . . . . . 10,774 || 138,495,673
1901 . . . . . . . . . . . . . . . . . . . . 11,002 113,092,376
These I assert are most significant figures.
In 1892 the number and amount of liabilities
In 1893, with the assurance of
some kind of a free-trade law, came panic and
ruin. The figures tell the story. In 1894 and |
1895 the figures; while a decrease from 1893,
were normal.
*
i
were still abnormal, but 1896 was another bad
year with nearly as many failures as in 1898,
though with somewhat lesser liabilities. But
what a change with the coming of protection l
Look at the figures for the past five years. The
amount of liabilities for the four years 1898,
1894, 1895, and 1896 average $229,000,000 a
year, while for the four years 1898, 1899, 1900,
and 1901 they average only half as much in spite
of the enormous increase in business enterprises. .
No argument I could make would teach a greater
lesson than the figures themselves.
Average Rate of Duty. —I now want to
call attention, Mr. President, to the free-trade
assertion that the rates of duty under the
Dingley law are exorbitant.
The average ad valorem rate of duty is not
determined by legislation, but by actual imports.
The ignorant free trader, in a spasm of assumed
indignation, may declare that Dingley duties are
the highest ever imposed, but he either does not
know what he is talking about or he is deliber-
ately trying to deceive.
It will be both interesting and instructive to
see just what the rate has been under the Dingley
law, and compare it with the rate of preceding
laws.
For the four years ending June 30, 1901, the
average ad valorem rates of duty on all imports
were: 1898, 24.77; 1899, 29.48; 1900, 27.62,
and 1901, 28.91 per cent. For 1902 the rate

! will be about 29 per cent. So we may safely
average the rate under the five years at 28 per
cent. This compares with about 21 per cent
under the three years of the Wilson-Gorman Aet.
But how does it compare with former protective
years? From 1870 to 1890 the rates were as
follows:
1870 & & 6 & 8 & 6 ë & * & & * * * * * tº a o 42.23
1871 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.94
1872 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
1873 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.95
1874 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.88
1875 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.20
1876 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.19
1877 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.68
1878 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.13
1879 . . . . . . . * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 28.97
1880 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.07
1881 -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.75
1882 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.11
1888 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.92
1884 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.44
1885 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.59
1886 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.13
1887 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.02
1888 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.99
1889 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.50
This is an average of over 31 per cent for the
twenty years. This, then, disproves the state-
ment that Dingley rates are excessive. In only
four years out of the twenty — from 1870 to
1890—were they so low as the average Dingley
rate. This proves that tariff framing is a
science, and that the Dingley tariff is not only a
wise and equitable measure, but a scientific
IIleaSure.
Again, as regards duties collected. I have al-
ready shown that as a revenue measure the
Dingley law is giving us a large and ample
amount of duty. But how does it average among
the people? The per capita duty collected under
the Dingley law has been as follows: 1898,
$1.99; 1899, $2.72; 1900, $3.01; 1901, $3.06,
and for 1902 it will be about $3.10. So, leaving
out the first year, when the amount of duty was
low and abnormal, we have an average per ca- |
pita annual duty of less than $3.
Now, taking the years from 1870 to 1890, we
find the per capita duty to be —
1870 & & O ſº tº . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.86
1871 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5:12
1872 ...................................... 5.23
1873 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,44-
1874 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.75
1875 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a 3.51
1876. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.22
1877 . . . . . . . . . . . . . . . . . . . . . . • - - - - - - - - - - - - - 2.77
1878 . . . . . . . .\ . . . . . . . . . . . . . . . . . .". . . . . . . . . . . 2.67
1879 . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . 2.73
1880 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.64.
1881 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.78
1882 . . . . . . . . . . . . . . . . . . . . . . . . . . : - - - - - - - - - - - 4.12
1883 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.92*
1884 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.47
1885 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.17
1886 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.30
1887 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.65
1888 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.60
1889 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.60
or an average duty of $3.73 per capita. And so
another “burden of the people” is dissipated.
Even if the entire tariff tax were borne by
Consumers, which is by no means the case, we
are each taxed only $3 a year (and actually fiot
more than $2) for the blessings and benefits of
Dingleyism.
, The proportion of the free imports is nearly
50 per cent, and was over 50 per cent under the
McKinley law, while from 1870 to 1890 it was
only about 30 per cent. So, whether we con-
sider the Dingley law from the standpoint of
duty rate, per capita duty, or per cent of free
imports, we find it to be the most just and equi. -
table measure ever framed.
*
Some per Capita Figures.--To show
that our great progress under the Dingley law
has far outstripped our rate of increase in popu-
lation, I will present a few per capita statistics,
as an example of all, from 1896 to and including.
1901:
sº 21
Per capita statistics.
; É & th j .8 tº Post-office.
--> p=4 cy r: c , *
5 § 5 : § £ 3, . .
E to E - H → c. c. º
Year. I'opula- $3 . == T. E. 5 § 3; 5
- tion. - E - º: #~ § ‘ā § g #
= ~ Pº # 3 : 2. #3 sº t– 2-3 gºl
9 c > o 4– * : dº Gº º 3. g 3.
E •r-4 hº 2. 5 * +: nº ..º. >: Gº) $4
•º ſº º ſº º Gº!
1896 . . . . . . . . . . 70,254,000 $25.62 $21.44 || $13.60 $0.40 $12.29 $1.17 | - $1.34
1897 . . . . . . . . . . 71,592,000 26.62 22.91 13.78 .48 14.42 1.15 1.34
1898 . . . . . . . . . . 72,947,000 28.43 25.19 | 14.08 .47 16.59 1.22 1.39
1899 . . . . . . . . . . 74,318,000 29.47 25.62 | 15.55 .54 16.20 1.28 1.41
1900 . . . . . . . . . . 76,303,387 30.66 26.93 | T 14.52 .44 17.96 1.34 1.46
1901 . . . . . . . . . . 77,647,000 31.9S 28.02 13.45 .38 18.81 1.44 1.49
Prices. –Mr. President, I have shown many
of the blessings, benefits, and advantages of
living under the Dingley tariff. Are there any
disadvantages? At once I hear the free trader
•ry, “How about prices? Isn't it costing us more
to live than we can make in increased earnings?”
I answer, No! The savings banks deposits of
$200,000,000 a year answer, No! The $400,000-
'000 annual premiums on life insurance answer,
No! The mortgages released answer, No! The
installments paid on the home and the furniture
answer, No! The luxuries enjoyed answer, No!
- And all these come out of the surplus after the
necessaries have been provided.
When we have low prices and low wages and
no wages, there is no surplus and there are no
luxuries. It is hard enough scraping to get the
necessaries. . But prices of many things have
- And right
here let me emphasize the fact that the price
risen while other prices have fallen.
of the greatest and most extensive commodity in
the land, a commodity that comprises 90 per
cent of all production — American labor — has
increased since the Dingley law went into opera-
tion fully 50 per cent.
I have shown that the railroad employees of
the country are getting 50 per cent more pay
than in 1895–96. I have shown that the work-
ingmen of all classes in Massachusetts are get-
ting from 40 to 50 per cent more earnings than
in 1896. I have shown that the farmers of the
country are getting from 50 to 100 per cent
more for their products than in 1896. And so I
believe that the income of the people of the
United States is to-day much more than 50 per
cent greater than it was in the summer of 1896
when one of the framers of the Wilson-Gorman
law, under which we were then trying to exist,
was asking the people to make him President in-
stead of William McKinley.
No ; we are not living in cheap times. • Pro-
It tends to
make prices equitable to both producer and con-
tection does not breed cheapness.
Sumer, but the millennium has not yet come, and
So we find occasional Wrong and injustice, and
sometimes the price of a single commodity will
be exorbitant for a period till the abnormal con-
ditions are adjusted by the inexorable process of
demand, supply, and competition. Sometimes it
is one thing, sometimes it is another. It may be
coal or meat, or it may be ice or eggs, but what-
ever the commodity or the cause, it is only tem-
porary.
But suppose steel rails are $5 or $10 a ton
more than they were in 1896. Is the railroad
passenger paying any more for his fare? Is the
22 -
freight shipper paying any more for carrying his
products? No; they are paying less, and the
dividends to stockholders are greater.
Protection is the great leveler; but it levels
up, not down. I now want to present the follow-
ing from Dun's Review, an absolutely impartial
source. It explains itself fully: -
tº Prices Proportioned to Consumption.
—In the following table the course of prices of
commodities is shown, with due allowance for the
relative importance of each. Quotations of all the
necessaries of life are taken, including whisky and
tobacco, and in each case the price is multiplied
by the annual per capita consumption, which pre-
cludes any one commodity baving more than its
proper weight in the aggregate. For example, the
price of a bushel of wheat is multiplied by 5.55.
representing, the annual per capita consumption of
4 2-3 bushels for food, and the remainder as al-
lowance for seed. The price per pound of coffee
is taken 9 times, of eheese 2.3, of chemicals only.
fractions of an ounce in some cases.
Thus, wide fluctuations in the price of an ar-
ticle little used do not materially affect the in-
dex, but changes in the great staples have a large
influence in advancing or depressing the total. For
convenience of comparison and economy of space
the prices are grouped in seven classes: Bread-
stuffs include many quotations of Wheat, corn,
oats, rye, barley, beans, and peas; meats include
live hogs, beef, sheep, and many provisions, lard,
tallow, etc.; dairy and garden products embrace -
oggs, vegetables, fruits, milk, butter, cheese, etc.;
other food includes fish, liquors, condiments,
sugar, rice, tobacco, etc.; clothing covers the raw
material of each industry, and many quotations
of woolen, cotton, silk, and rubber goods, as well
as hides, leather, boots, and shoes; metals in-
clude various quotations of pig iron, and partially
manufactured and finished products, as well as
the minor metals, tin, lead, copper, ete., and coal
and petroleum; miscellaneous includes many grades
of hard and soft lumber, lath, brick, lime, glass,
turpentine, hemp, linseed oil, paints, fertilizers,
and drugs. - r
The chief advance in the general level as com-
pared with the low-record prices of July 1, 1897,
will be found in the first three classes. Short
crops due to drought and the seasonable advance
in eggs and similar articles make the present"
position of food stuffs abnormal. The third deci-
mal is given for accuracy of comparison, thus
$101.587 representing $101.58 and seven-tenths of
a cent. This figure does not purport to show the
exact average annual cost of living on January 1,
1902, because wholesale prices are taken and all
luxuries omitted. Its economic value is in show-
ing the percentage of advance or decline from .
month to month. *
Indea: figure of prices, January 1.

Bread- Dalry | other | Cloth- &
Year. stuffs. | Meats. anºr. food. ing. Metals. *. Total.
1888 . . . . . . . . . t e < * * * $18.565 $8.920 $15.080 || $10.340 || $15,140 || $17,330 || $14.577 $99.902
1889 . . . . . . . . . . . . . . . . 18.195 8.705 14,670 10.480 15.170 17.360 14.496 99.076
1890 . . . . . . . . . . . . . . . 13.765 7.620 12.675 9.935 14.845 16.240 15.1.11 90.191
1891 . . . . . . . . . . . . . . . 19.725 7.810 16.270 10.215 14.135 15.875 14.217 98.247
1892 . . . . . . . . . . . . . . . 17.700 7.895 18.180 9.185 13.430 14,665 13.767 89.822
1893 . . . . . . . . . . . . . . . 15.750 9.315 15.290 9.505 13.900 15.985 14.320 | 94,155
1894 . . . . . . . . . . . . . . . 13.530 8.655 13.945 8.945 12,880 14.565 13.512 86.032
1885. . . . . . . . . . . . . . . . 14.311 S. 359 12.196 8.607 || 11.886 || 12.026 13.607 || 80.992
_1898 . . . . . . . . . . . . . . . 11.380 7.540 10.969 8.898 12.7S7 12.803 13.403 || 77.780
1897 . . . . . . . . . . . . . . . 11.729 7.327 10.456 8. 170 12.407 13.014 12.399 75.502
1898 . . . . . . . . . . . . . . . 13.511 7.336 12.371. 8.312 14.654 11.572 12.184 79.940
1889 . . . . . . . . . . . . . . . 13.816 7.520 11.458 9.096 14.150 11.843 12.540 | 80.423
1900 . . . . . . . . . . . . . . . 13.254 || 7.258 13.702 9,200 17.484 18,085 16.312 95.295
1991 . . . . . . . . . . . . . . . 14.486 || 8,407 15.556 9.504 16.024 15.810 .881 95.668
1562 . . . . . . . . . . . . . . . 20,002 9.670 15.248 8,952 15.547 15.375 16.793 | 101.587
Employment is What Counts. –It will
be seen that the total is but little above that of
1888 and 1889. Curiously, too, the index figure
ing years and lower than the year following, and
yet in 1892 we elected a low-tariff Administra-
tion in all three branches of the Government be-
for 1892 is less than for any of the four preced- cause of the false cry of high prices. In this
23
connection I want to quote from an address de-
livered by T. Z. Cowles, editor of the American
Fconomist, before the Society of Political In-
quiry at Morristown, N. J., April 11, 1902. And
right here I want to acknowledge my indebted-
ness to the American Economist and the Amer-
ican Protectiye Tariff League for much of the
information I have used in this speech.
Speaking of prices, Mr. Cowles said:
The American wage-earner is not finding very
much fault. Zealous friends on the free-trade side
are doing their utmost to convince him that he
is being crucified for the benefit of the trusts,
, and that the cost of living has far exceeded any
gain made in the shape of better wages, but they
are not making very much headway in carrying
that conviction to the mind of the Wage-earner.
In reply, he has only to point to the enormous in-
crease of nearly 100 per cent in the last five
years of deposits in the savings banks through-
out the country, and to an equal increase of in-
vestments in building and loan associations. That
certainly would not seem to indicate that the
wage-earner WaS getting very greatly the worst
of the situation.
One thing the wage-earner knows—that it is
not so much the price of an article as the ability
to pay the price that concerns him. If he can
buy a suit of clothes for $4 and does not have the
$4 in his pocket, the price is of very little con-
sequence to him; but if the suit of clothes costs
$5 and he now has $6 in his pocket, he can look
upon the situation with perfect complacency.
.Statistics of the census covering the year 1900
show in every State of the Union thus far enu-
merated not only an increase in the general rate
of wages, but a very much larger increase in the
gross sum of wages paid out. That is to say,
while the per capita rate of wages has undoubt-
,edly sincreased in the period of prosperity brought
about by protection, the gross sum of employ-
ment has enormously increased. That is what
<counts.
RNational Finances. – I have shown what
protection has done for agriculture and manu-
factures, for our railroads and Qur'foreign, com-
I now want to note its effect upon our
national debt and finanges. From the last re-
sport of the Secretary of the Treasury I quote
theiſallºſing:
Thºr'Cé.
On April 1, 1898, the interest-bearing debt of
the United States was $847,366,680. Incidental
to the war with Spain the debt was increased, so
that on November 1, 1899, its highest point, the
amount stood at $1,046,049,020. Two years later,
on November 15, 1901, the debt stood at $954,-
027,150, showing a reduction of $92,021,870.
This statement covers only the face amount of
the debt. Interest is as much a part of the debt
as is the principal, and this feature of the debt
has been anticipated and paid to an amount nearly
as great as has been the reduction of the prin-
cipal. By the application of $43,582,004 of the
public moneys, interest to the amount of $54,548,-
424, which would otherwise have been a charge
against the Treasury during the next seven years,
has been paid, so that, broadly speaking, the pub-
lic debt within two years has been reduced by the
sum of $146,570,294.
But this by no means tells the whole story.
The cash fund in the Treasury has risen from
$226,166,944 on April 1, 1898, to over $350,000,-
000 to-day. In a single year the annual interest
charge has been reduced from $40,347,884 to
$28,471,228, and yet Mr. Cleveland, in times of
peace, but also of low tariff, had to borrow
$262,000,000, and the bonds he sold bore 4 and
5 per cent interest. During the past year or
two much of our debt has been refunded on a 2
per cent basis, and to-day Uncle Sam's credit is
Such that he could borrow a billion at 2 per cent.
But Uncle Sam is not borrowing in protection
times. He is buying his own bonds, canceling
his debt, and reducing his interest charges. He
has $200,000,000 in the Treasury over and above
the $150,000,000 gold reserve legally required
There is in circulation $2,246,300,542, or $28.7%
per capita, against a circulation of $1,594,195
479 in 1895, and a per capita circulation ox.
$21,44 in 1896. There is an estimated surplus
of 80,000,000 for the fiscal year 1902 in spite
of a large reduction in taxation.
And what of the people of the United States?
The Secretary notes that they have a credit in
she stational banks of over $3,000,680,690. and
24
#
in the savings banks there are deposits of nearly
$3,000,000,000 more. Remarkable figures these.
Do you want any greater proof that low tariff is
a debt maker and protection a debt payer?
Astounding Statistics. – American finan-
cial and commercial statistics are to-day the
wonder of the world. Our wealth of $100,000,-
000,000, or $1,250 per capita; our net debt of
less than $1,000,000,000, or only $12.50 per
capita ; our savings bank and loan association
deposits of $3,000,000,000; our national bank
deposits of $3,000,000,000 more; our life insur-
ance of $13,000,000,000; our annual fire instir-
ance risks of $20,000,000,000; our bank clear-
ings of $100,000,000,000; our manufactures of
$15,000,000,000; our agricultural returns of
$8,000,000,000; our favorable balance of trade
of $600,000,000; our Government receipts of
$700,000,000 and expenditures of $600,000,000;
our Treasury fund of $350,000,000; our more
than $2,000,000,000 of money in circulation;
our $150,000,000 (coining value) product of gold
and silver; our 1,500,000,000 railroad earnings,
and, greatest of all, our actual turnover in com-
merce, trade, transportation, and general busi-
ness of more than $30,000,000,000—these are
figures to astonish the world.
We are the only nation of importance paying
off our debt. We could sell $1,000,000,000 of
bonds at 2 per cent in twenty-four hours. Money
is accumulating in our National Treasury faster
than we can use it. We are paying $140,000,000
a year in pensions. Since 1860 we have dis-
bursed nearly $3,000,000,000 in this way; have
paid off nearly $2,000,000,000 of debt, besides
paying $2,750,000,000 of interest.
These are remarkable figures for one of the
youngest nations of the earth. What they will
|be in another century or even in another genera-
tion cannot even be estimated. With a rehabili-
tated American merchant marine, an isthmian
canal, continued protection, peace, and prosperi-
ty the future must hold even more wonderful
results for the United States than any that have
transpired.
How We Compare with the Rest of
the World. — Our progress under the Dingley
tariff has been such that we no longer compare
the United States with other nations, but with
all the rest of the world combined. With less
than 5 per cent of the population and only 7 per
cent of the area, we are, nevertheless, about
equal industrially to half the remainder of man-
kind. $
We equal or surpass all the rest of the world
in corn, cotton, eggs, petroleum, leather products,
copper, and forest products.
Of the following we produce two-thirds as .
much as the rest of the world: Coal, pig iron,
steel, and three-fifths of the total food and agri-
cultural products and manufactures.
We produce one-half as much as the rest of
the world in silver, iron ore, fish; one-third as
much in gold, wheat, oats, hay, butter, and
cheese; one-fourth as much in hops and beer;
one-fifth to one-tenth as much in barley and
wool.
We consume, reckoned in value, twice as
much corn as all the rest of the world combined,
one-fifth as much wheat, one-third as much oats,
one-third as much cotton, one-fifth as much
wool, one-third as much sugar, one-half as much
fish, nearly as much coffee, one-fourth as much
tea, about three-fifths as much meat – all food
‘and agricultural products. - •
We have one-third as much wealth as all the
rest of the world, one-third as much gold, one-
fifth as much silver, one-tenth as many sheep,
25
*~~
one-third as many cows, as much forest area,
two-thirds the railroad mileage, or, counting
total track, about as much as all the rest of the
world combined. We have twice as much life
insurance in force, one-half as much savings-
bank deposits, we spend two-thirds as much for
education, we have one-fourth the spindles in
operation, nearly one-fourth as much shipping,
one-fourth as many exports, about one-tenth as
much revenue and expenditures, and less than
one-thirtieth as much debt. -
Taking everything into consideration we pro-
duce and consume about half as much as the rest
of the world combined. Remember, the com-
parison is not with the world, but with all the
rest of the world, besides ourselves.
There is not a much better index to a country's
condition than the freight carried. According
to the junior Senator from New York [Mr.
DEPEw], who should be an unquestioned authority
* on railroad business, the freight carried on the
railroads of the United States equals the freight
carried on all the other railroads of the earth
and by all the ocean shipping. To this should
be added our immense lake and coast trade.
Greatest of all Consumers. — Ex-Speaker
Reed estimated that the people of the United
States, when our population was about 70,000,-
000, were equal as consumers — as a market for
our own and the world's production — compared
with the rest of the world, to 700,000,000. The
same comparison seems to hold good to day,
and our 77,000,000 people are equal to 770,000,-
000, or one-half the rest of the world. That is,
every man, woman, and child in the United
States is equal to ten persons outside of the
United States, particularly as consumers of our
own and the world's products of agriculture,
mining, and manufacture.
As regards power of production, Mulhaſ has
shown that a farm hand in the United States
does as much as two in the United Kingdom,
three in Germany, five in Austria, and seven in
Russia. The farm laborers of Europe do nine
times the work to get double the result of the
farm laborers in the United States. That is, it
takes four and one-half Europeans to equal one
American. Extend the comparison to Asia and
Africa and we find that the average United
States producer is equal to ten the world over,
outside of our own country. This comparison is
emphasized by our coal consumption and steam
power, and finally by our products of manu-
facture.
We are to-day practically independent of the
rest of the earth.
our own sugar and fibers, manufacture our own
In a few years we shall raise
silk, and, in fact, we shall produce almost every-
thing used by mankind. -
The conclusion, then, is warranted that in an-
other generation, if the present system of pro-
tection is continued, the people of the United
States and Territories will equal or surpass in
production, consumption, and wealth the peoples
of the rest of the world combined.
The Foreign and Home Market. — I
quote the following from the American Econo-
mist showing the relative value of the foreign
and home market : *
Do the people who spend so much brain power
in seeking means for the enlargement of our for-
eign trade ever stop to think what a prodigiously
big thing they lose sight of when in search of an
infinitely smaller thing? Do they realize that
while our foreign trade in manufactured articles
of domestic production was $433,851,756 in 1900,
the total volume of our internal trade for that
year was over $30,000,000,000 2. It was estimated
three years ago that our commodities carried from
one part of the country to another for sale at
home were worth about $28,000,000,000 a year,
Which was thirteen times the value of our entire
26
foreign trade, and that the citizens of this coun-
try buy $40 worth of home products for every
dollar they expend for foreign commodities. The
foreign trade of the United States, therefore, is
of small importance in comparison with its home
COIEl Ider Ce,
According to the statistics of the Twelfth Cen-
sus, the gross value of our manufactured products,
which amounted in 1900 to over $13,000,000,000,
fairly represented the Volume of our internal trade
in manufactured articles, exclusive of the retail-
ing of the products of the manufacturers, which
Irepresents transactions involving an amount at
least as great, and consists of the reselling of
these products as they pass into the possession
-Of the ultimate consumer. The total money Wol-
ume of the wholesale and retail transactions in
the manufactured products of the United States
is unquestionably greater than the Volume of in-
ternational trade of all the principal countries of
the world, which equals the sum of $20,005,884,-
354, exports and imports added together. This
does not include our immense home trade in raw
materials that are not manufactured. It is likely
that the volunae of our total internal trade in
1900 was gyer $30,000,000,000.
The value of our internal commerce in propor-
tion to population is greater than that of any
other country, because Amerieans spend more for
food, clothing, rent, and many comforts of life
than any other people. At the end of the last
century the wealth of the United States, es-
timated at $94,000,000,000, was equal to the com-
bined wealth of Russia, Italy, and Spain, was
double that of Germany, and nearly double that of
France and a fourth larger than that of the United
Kingdom.
The point of the whole matter is the comparison
between the yalue of our own trade in our own
great fmarket, and the value of our trade with all
the rest of the World, viz.: Total internal trade
for the year 1900, $30,000,000,000; total foreign
trade for the year 1900, $2,201,282,823—more than
14 to 1. Is it not about time that the domestic
producer left off worrying about the $1, which he
already has, and can always keep—that is to say,
the foreign trade that cannot grow less, for we
have that to sell which the world must have and
will continue to buy—and devote his attention
more assiduously to the $14, which, as experience
- Shows, -may easily grow less as the result of eco-
homic blundering, but must inevitably increase if
Yºº keep to the safe line of looking after the great
home market. In short, can we afford to risk the
Gertainty of a trade worth $80,000,000,000 in the
doubtful Seramble for a trade worth less than
one-fourteenth of that amourit? The study should
be how not to decrease the purehasing power of a
population that every year consumes $30,000,000,-
000 of domestic products.
Our sales to the world outside of ourselves
amount to, say $1,500,000,000; our sales at
home amount to $30,000,000,000. That is the
relative value to us of the world's markets and
our home market. There are freights, commis-
sions, and profits to be considered in foreign
Sales, while in home sales all transactions add
to the income of the people.
Education.-Mr. President, there have been
more scholars in our public and private schools
and colleges the past year than ever before in
our history. I mean not only in the aggregate,
but relatively to population. There was hardly a
city in the country whose school facilities were
adequate last fall to accommodate the scolars
who sought admission. Many of our private
schools have been compelled to turn away ap-
plicants, and the entering classes of our colleges
showed record-breaking registry.
This was not the condition in 1895–96. What
has brought about the change? In the first
place, it is not necessary for so many children
to work in the mill. In the second place, the
Prosperous man need not keep the children from
school for lack of clothes and shoes. Again, it
costs money to go through college and technical
Schools. This all brings up the question of so-
called child labor.
my free-trade friend will ask. I answer that the
“Is it not on the increase?”
Census report shows an increase in some sections
of the South and West, but large decreases in
other sections. The very increased demand for
child labor when our adults are fully employed is
in itself an indication of increased prosperity.
While child labor should undoubtedly be regulated
by law, it is nevertheless a blessing when the
27
father is dead or disabled that the boys and girls
can get good wages and contribute to the Sup-
port of the family.
But the conditions are so immeasurably im-
proved over the years of the Wilson-Gorman
tariff that I cannot refrain from calling your
attention to the fact. We have the best system
of public schools in the world. We have the
best paid teachers, the most comfortable struc-
tures, and an army of scholars who are reaping
benefits far greater than ever before in our
history and far greater than can be found in any
other country, and as I have already shown we
are expending for education 40 per cent as much
as all the other countries of the world combined.
The Age of Luxury. —In a recent num-
ber of Leslie's Weekly Francis Curtis has an
article under the caption “The Age of Luxury.”
The term is most fit and the picture so true that
I want to quote from the article as follows:
We have had our iron age and our age of steel.
Cotton has been king. Corn and wheat have both
sat on the throne. Time was when there was
“nothing like leather,” and even the American
hog has ruled abroad as well as at home. Elec-
tricity has worn the crown, and one after another
of our productions has for a time held sway, giv-
ing place to some industrial rival, till, instead
of any one being supreme, We are foremost With
many.
So at this beginning of a new century we live
in an age as foreign to that of our fathers as
Steam and electricity compare with sail and
candle. Well may we call it the age of luxury.
It would be difficult indeed to define luxury as
found in the United States, or to draw the line
between luxury and necessity. Many of the things
which we have become accustomed to class among
the necessaries of life are thought of abroad as
luxuries or are not enjoyed at all. We might (but
think we cannot) do without a thousand and one
comforts and conveniences which our fathers
Would have considered extravagant and unneces-
sary. In our homes, at our offices, on our travels,
at every turn-of life, we enjoy luxuries innu-
merable. *
Instead of the old-time one weekly paper, we
now have our morning and evening daily, our illus-
trated, religious, and other weeklies, and one or
more monthly magazines. We have our luxuries
in food and our luxuries in dress. Even the dolls
of our children are better dressed and have more
“ things ’’ than did our grandparents themselves
when children. Our homes are filled with 3uxu-
rious furniture and bric-a-brac, our tables are set
with costly chima and glassware, and our rooms
are hung with the rarest pictures and curtains.
Our offices are equipped with easy chairs and -
rugs, with open bookcases and desks, with tele-
phone and mail-chutes. Our railroad, parlor,
sleeping, and dining cars are luxurious in every
detail, and Our hotels are palaces from entrance
to roof.
Milady's gowns and wraps and lingerle and
gloves and handkerchiefs are fit for any queen,
and every daughter is a princess in wealth of ap-
parel and comforts. In amusement there is no
limit to luxury. Millions and hundreds of millions
are annually spent at the theater, on yachting,
golf, football, receptions, dinners, teas, and balls.
We have our pianos, our phonographs, our automo-
biles, our bicycles, and our carriages for adult,
baby, and doll. We have our sealskins and furs,
our silks and satins and fine linen, our feathers
and boas, our velvets and laces, our paintings and
vases, our hand-painted Ware and ornaments, Our
diamonds and rubies and pearls, our watches and
clocks, our sweets and perfumes, and so on ad
infinitum.
We spend over a billion a year in drink, out-
side of tea and coffee; we spend over half a
billion in tobacco and a quarter of a billion in
Confectionery, fruit, and flowers. It is estimated
that our present annual bill for luxuries exceeds
$10,000,000,000. And only half a century ago our
fathers would have been amazed at even the
thought of such expenditures and would have
termed it folly.
And yet the making and production of these
luxuries form the basis of much of our prosper-
ity, and in turn it is our prosperity that enables
us to enjoy such comfort and luxury. We would
hardly want to go back to the days of Jefferson
and Hamilton and Franklin, or even to the days
of Lincoln and Seward. So here is to the age of
luxury, and may it be but a beginning of a still
higher plane of moral living and a still greater
enjoyment of the noblest things of life.
I,00king Southward. —If there still re-
mains any section of our common country whose
people cling to the traditions of the past and
decline to ré ognize the fact and the logic of the
28
A.
present, let us hope that they will turn their
faces to the great light of to-day, the light of
splendid progress and prosperity. They should
forget and remember — forget that they were
for a brief period alienated from sympathy and
good will toward neighbors and friends, and
remember that all past differences have been
wiped off the record and that they now stand
with all the people upon the exalted ground of
mutual patriotism.
- They may well forget that they have been free
traders for nearly three-quarters of a century,
and remember that their great apostle in eco-
nomic doctrine abandoned protection only be-
cause he believed that the control of the world's
supply of a great agricultural staple placed the
producers of that staple in the enviable position
of being able to sell in the dearest and buy in
the cheapest of markets with advantage and
profit. He did not foresee the tremendous pos-
sibilities connected with an industrial develop-
ment that under protection was to convert this
raw product into finished material at home, sav-
ing ocean transportation charges across and
back, and involving the investment of home
capital, the employment of home labor, and the
payment of home wages. He could not foresee
the tremendous unearthing of buried treasure in
the iron mines that under the Dingley tariff was
to follow the establishment of a gigantic produc-
ing industry upon the firm and enduring basis
that only protection could provide.
None of these tremendous possibilities, now
accomplished facts, were present in the mind of
Calhoun when he shifted from protection to free
trade, otherwise he would not have shifted. So
I say to our friends and neighbors to the south-
ward, “Forget that you were free traders, and
try to remember what protection has done, is
doing, and stands to do for you." Signs are not
wanting that they are forgetting and that they
are remembering. A little time may be needed
to complete the process of reversion, but I am
thankful to believe that they are on the right
track and not long hence will plant their feet
alongside of ours on the solid rock of protection
to American labor and industry.
Conclusion. — Mr. President, I have pre-
sented briefly many of the material benefits
which we as a nation and as a people have de-
rived from the operation of the Dingley tariff.
But I have by no means told the whole story.
We can estimate the production and consump-
tion of the necessaries and luxuries of life, but
the comforts and contentment and happiness of
the American home is inestimable. How can we
calculate the joy of the farmer or mechanic in
being able to give his sons a college education?
How can we calculate the pleasure of taking home
the latest book; of taking the wife or sweetheart
to the play or concert ; of buying the piano for
the daughter; of filling the vase with flowers;
of taking home the candy and toys for the little
ones? Why, it is Christmas the year round in
The birthdays are
joyful days. The summer trips to the mountains
millions of American homes.
and seashore and country in vacation time are
not to be measured by dollars -and cents in the
happiness and health they give to millions of
wives and children.
No, Mr. President, there is no computing the
blessings and benefits of protection. We cannot
measure happiness by the yard or pound or quart
or dollar's worth, but we can produce it and en-
hance it and continue it by continuing protection
and prosperity. I met an old farmer recently, a
sterling old man who voted for Franklin Pierce
and who has voted for every Democratic candidate
29
for President and Congress sº. I asked him,
," Well, how is the farm " Without answering,
he said, “Senator, I want to tell you something.
I am going to vote the Republican ticket next
fall and in 1904 and as long as I live.” “Why,
how is that ?” I asked. He replied : “Simply
because I am tired of voting against pros-
perity.” ---
* There is the whole thing in a nutshell. Not
only the truck farmer of New England, but the
wheat grower of Minnesota, the corn grower of
Kansas, the sugar grower of Louisiana, the cot-
ton planter of Georgia, back to the wool grower
of Ohio and the tobacco planter of Virginia and
Connecticut, way to the fruit grower of Califor-
nia—the capitalist, the millworker, the railroad
hand, the merchant and clerk, the professional
Timan— every one, from the most elevated posi-
tion to the humblest—must vote for or against
prosperity.
And right here let me quote again from Mr.
Cowles's address:
A wise wag once said in response to the toast,
“Here's to your prosperity. May you stand it
like a man.” “That's a better sentiment than
you think it is,” said he. “It takes a clever man
to stand prosperity. Any fool can stand advers-
ity; he has to.”
Our friends on the other side are looking for
an issue. They need not worry, the issue is
looking for them. Prosperity is the issue, and
all other questions are secondary. The American
standard of living, American manhood and Amer-
ican homes are but the resultants of Republican
legislation, the sequences of a protective tariff
which brought to us and will continue to give us
an unprecedented age of luxury, an unparalleled
era of prosperity,
I N D E X.
PAGE
AGE of fluxury ........ & ſº º ſº º e º ſº º ſº 27
- Agriculture . . . . . . . . . . . . . . . . . . . . . . . 4, 5
Agricultural prices . . . . . . . . . . . . . 22
Comparison of size and value of
our farm products during 1896
and 1901. . . . . . . . . . . . . . . . . . . . 5
Effect of these immense earnings
upon . . . . . . . . . . . . . . . . . . . . . . . 5
Exports of . . . . . . . . . . . . . . . . . . . . 6
A Protective Tariff insuites the
farmers . . . . . . . . . . . . . . . . . . . . 6
Tariff much to do with value of
eitops . . . . . . . . . . . . ". . . . . . . . . . 6
What made the increase in values 5
Astounding Statistics . . . . . . . . . . . . . . 24
Average Rate of Duty . . . . . . . . . . . . . 10
Wilson-Gorman and Dingley rates
Cofnpäred . . . . . . . . . . . . . . . . . . . 19
Average duty per capita . . . . . . . . 20
BANK-Clearances . . . . . . . . . . . . . . . . . 13
T)uring the Free-Trade and Pro-
tective periods . . . . . . . . . . . . . . . 13
Savings banks deposits . . . . . . . . . 15
Beet Sugar . . . . . . . . . . . . . . . . . . . . . . 10
Number of factories . . . . . . . . . . . 10
Production of . . . . . . . . . . . . . . . . . 10
CITATIONS.
Orange Judd Farmer . . . . . . . . . . 5
Senator Warren. . . . . . . . . . . . . . . . 7
Iron and Steel Association . . . . . . 9
Poor's Manual . . . . . . . . . . . . . . . . 11
Interstate Commerce Commission 11
Dun's Review . . . . . . . . . . . . . . . 19, 22
T. Z. Cowles . . . . . . . . . . . . . . . . 23, 29
Secretary of the Treasury. . . . . . . 23
American Economist . . . . . . . . 25, 26
Francis Curtis in Leslie's Weekly 27
President McKinley . . . . . . . . . . . . 3
New York Insurance Report . . . 16
Conclusion . . . . . . . . . . . . . . . . . . . . . . 28, 29
DINGLEYISM, Result of . . . . . . . . . . 4
Dingley Law,
An unqualified success . . . . . . . . 3, 28
Exports of manufactures under. . S
Our progress under . . . . . . . . . . . . 24
Per Capita Statistics . . . . . . . . . 20, 21
Prices under . . . . . . . . . . . . . . . . . . 21
Rate of duty under . . . . . . . . . ... . 19
* * * * * * * * *
PAGE
EDUCATION . . . . . . . . . . . . . . . . . . . . 26
General conditions . . . . . . . . . . . . 27
Child Labor . . . . . . . . . . . . . . . . . . 26
Employment and Earnings . . . . . . . . . 4
Earnings lost during the low Tar-
iff periods . . . . . . . . . . . . . . . . . . 4
Employment is what counts . . . . 22
Labor statistics of Massachusetts 4
Results of Dingleyism . . . . . . . . 4
Samuel Gompers' estimate on men
out of employment . . . . . . . . . . . 4
What idleness means . . . . . . . . . . . 4
Exports of Agriculture . . . . . . . . . . . . 6
Exports of Gold and Silver . . . . . . . . 18
Exports of Merchandise . . . . . . . . . . . .
FAILURES . . . . . . . . . . . . . . . . . . . . . . 19
Foreign Commerce . . . . . . . . . . . . . . . . 17
Exports double the amount under
the Dingley Tariff . . . . . . . . . . . 17
Imports and exports of merchan-
dise, 1890-1901 . . . . . . . . . . . . . 17
Leading export nation of the world 17
Our balance of trade . . . . . . . . . . 17
Why our imports increase . . . . . . 18
Foreign and Home Market . . . . . . . . 25, 26
GALLINGER Resolution, The . . . . . 3.
Gold and Silver . . . . . . . . . . . . . . . . . . 18, 19
Total value of imports and exports
of gold and silver coin and bul-
lion, 1893-1901 . . . . . . . . . . . . . . 18
Gold in the Treasury . . . . . . . . . . 18
HOME Market . . . . . . . . . . . . . . . . . . . . 25
How we compare with the rest of the
World . . . . . . . . . . . . . . . . . . . . . . 24
Greatest of all consumers . . . . . . 25
Produce two-thirds as much as -
rest of the world . . . . . . . . . . . . 24
IMPORTS and Exports of Gold and
- Silver . . . . . . . . . . . . . . . . . . . . . . 18
Imports and Exports of Merchandise,
1890-1901 . . . . . . . . . . . . . . . . . . 17
Insurance . . . . . . . . . . . . . . . . . . . . . . 16, 17
Low-Tariff times compared with
Protection times . . . . . . . . . . . . . 17
Iron and Steel Production . . . . . . . . . . 8, 9
Rolled iron and steel gross tons,
1892-1901 . . . . . . . . . . . . . . . . . . 9
Wire nails in kegs of 100 pounds 9
1
7
wºrs - 31
* PAGE
LOOKING Southward . . . . . . . . . . 27, 28
Protection and the South . . . . . . 27
Luxury, Age of . . . . . . . . . . . . . . ‘. . . . . 27
McKINLEY, President, on the need
of a New Tariff Law . . . . . . . . 3
McKinley, President, and the Passage
* of the Dingley Law . . . . . . . . . 3
Manufactures . . . . . . . . . . . . . . . . . . . . . 8
Beet Sugar . . . . . . . . . . . . . . . . . . . 10
Comparison of pig iron production
for past few years . . . . . . . . . . 8
Exports advance under Dingley
Tariff . . . . . . . . . . . . . . . . . . . . .
How wages in manufacturing af-
fect value of farm products ... 10
Increase in establishments during
last decade . . . . . . . . . . . . . . . . . 8
In the territories ......... . . ... 10
Iron and steel . . . . . . . . . . . . . . . . 8
Manufacturing output in certain
industries, 1890-1900 . . . . . . . . 8
Tin plate . . . . . . . . . . . . . . . . . . . . . 9
Massachusetts, Labor Statistics of .. 4
Mineral Products . . . . . . . . . . . . . . . . . 10
Comparison between 1896-1901 .. 10
NATIONAL Finances . . . . . . . . . . . . . 23
Astounding statistics . . . . . . . . . . 24
Cash fund in Treasury . . . . . . . . 23
Estimated surplus . . . . . . . . . . . . . 23
Our debt reduced under Protection 24
Tariff effect on . . . . . . . . . . . . . . . 23
Uncle Sam not borrowing in Pro-
tection times . . . . . . . . . . . . . . . . 23
POST-OFFICE Business . . . . . . . . . . 14
Uncreased under Dingley law . . . . 14
Postal receipts from 1889-1902. . 14
Prices . . . . . . . . . . . . . . . . . . . . . . . ... 21, 22
Index of prices, January 1 . . . . . . 22
Proportioned to consumption . . . 22
Protection and . . . . . tº gº tº e º e º º ſº tº e 22
Wage-earner and . . . . . . . . . . . . . . 23
Prosperity is the Issue . . . . . . . . . e 29
Prosperity, tired of voting against . . . 29
RAILROAD Business . . . . . . . . . . . . . 11
During low Tariff and Protection
times . . . . . . . . . . . . . . . . . . . ... 11
Effect of the Tariff . . . . . . . . . . 11
Freight carried on the railroads of
the United States . . . . . . . . . . . 25
Owners of railroads . . . . . . . . . . . 12
PAGE
Wages and earnings . . . . . . . . . . . 11
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 4
More than sufficient . . . . . . . . . . 3
Under the Dingley law . . . . . . . . 3
Under the Wilson-Gorman law . . 3
SAVINGS and Surplus . . . . . . . . . . 15, 16
Average to each depositor in a
few Countries . . . . . . . . . . . . . . . 16
New Hampshire's experience in
the matter . . . . . . . . . . . . . . . . . . 15
Our deposits exceed those of Great
- Britain, France, Russia and
Austria combined . . . . . . . . . . . . 16
Number of depositors and deposits
from 1893 to 1902 . . . . . . . . . . 15
Sheep and Wool . . . . . . . . . . . . . . . . . . 6, 7
Domestic production and imports
under the Dingley and Wilson-
Gorman laws . . . . . . . . . . . . . . . 6
Prices of Ohio fleece wool . . . . . . 7
Sheep and their value . . . . . . . . . . . . . 7
Shipping . . . . . . . . . . . . . . . . . . . . . . . 12, 13
Wessels built and total tonnage . . , 13
South, Progress and Prosperity in . . 27 28
TELEGRAPH and Telephone . . . . 14, 15
Comparison of annual number of
telephone messages in different
Countries . . . . . . . . . . . . . . . . . . . 15
Increase in telephone business . . . 15
Postal Telegraph Co.'s business . . 15
Receipts of the Western Union
Telegraph Co. since 1889 . . . . . 14
The Age of Luxury . . . . . . . . . . . . . . . . 27
The Foreign and Home Market . . . . 25, 26
Amount of our foreign and home
sales . . . . . . . . . . . . . . . . . . . . . . . 26
Value of our internal commerce . . 26
Tin Plate . . . . . . . . . . . . . . . . . . . . . . . . 9
Production and importation of . . 9
Toast to Prosperity . . . . . . . . . . . . . . . . 20
Tobacco Industry . . . . . . . . . . . . . . . . . . 7
Condition now as compared with
the low-Tariff times . . . . . . . . . 7
Production and consumption in
the United States . . . . . . . . . . . 7
WAGE Earner and Prices . . . . . . . . 22, 23
Wages in Manufacturing affect Value
of Farm Products . . . . . . . . . . . 10
Wool and the Tariff. . . . . . . . . . . . . . . . 6, 7
|AF
|T| 52. ºrniv. or Miotº
$3 2. .**
Fa DEC 20 tº
Reminiscences and
Experiences of the
Working of Foreign
Tariffs, by a Merchant
cf Fifty Years’ J'tanding
BY
I. J. Weinberg
D UN IDE. I.
Read to the J cottish Jociety cf Economists
on 15th January 1904
}}t intel by
WILLIAM B L A C K W OOD AND SONS
E D IN B U R G H : M C M IV
**.ºS.
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A&E////V/SCEAVCES AAWD EXAAER/EAVCES OF
THE WORKING OF FORE/GN TARIFFS,
A V A MERCHANT OF FIAPTY YEARS’
STA/VD//VG.
THE title of this short address which I am going to give
you speaks for itself. It necessarily will deal more with the
past, of which I know something, and its effect on the
present state of trade, but very little with the future, of
which none of us knows anything, and any theories advanced
must be more or less of a speculative nature, and any pro-
posals based upon them will be more or less in the shape of
an experiment.
I shall not confine myself entirely to the linen and jute
trade, with which I have been connected for over fifty years,
because that is only a part of the trade of the country, and the
discussion which occupies the public mind is the consequence
of the commercial policy adopted by this country long ago,
commencing with the repeal of the Corn Laws in 1846, and
followed up by the commercial treaty with France in 1860
made by Mr Gladstone and Mr Richard Cobden, whose name
has been so very frequently mentioned in the present dis-
cussion. At that time—in 1860—I went to Paris as one
of the delegates representing the Belfast Chamber of Com-
merce to give evidence before the French Commission. I
had considerable personal intercourse with the late Mr
Cobden, and although what I am going to say has been
repeated often of late in speeches and in the public press,
I fancy it will be of some interest to you to hear it from
the lips of one who discussed the matter with Mr Cobden
personally and received his reply from himself. I had
2
ventured to ask him the question on one occasion as to what
would happen if other nations did not follow the lead of
Great Britain and did not become free traders. His reply to
this was very short and emphatic—I remember his very words
perfectly—they were, “We cannot discuss this—that is sure
to come !” He firmly believed that all European nations
would become free traders, and that we were just giving
them the lead and showing them how to do it. It would
have been a very happy state of things if this had happened,
and in that case the present discussion which is agitating
the whole country would not have arisen. But, unfortun-
ately, the very reverse has taken place, and as years have
gone by the duties charged by foreign countries on the
imports from Great Britain have gone on increasing until
they have become in many cases entirely prohibitive. Had
Mr Cobden lived even for twenty years after the treaty
with France had been concluded and had seen what other
nations were doing in opposition to his expectations, he
would have been the first to acknowledge—as he was not
only a clever but a very straightforward and a very honest
man—that he had made a mistake, and might possibly have
been of opinion that we would have to meet the altered
circumstances with altered measures. I have always found
that when a very clever man makes a mistake—as will
happen even to clever men—it generally is a big mistake,
and sometimes very difficult to get over.
This country, although the first commercial country in
the world, for many years had as good as nobody to look
after its commercial interests in foreign countries. The
ambassadors sent from here were diplomatists who had no
knowledge of commercial matters and did not profess to
have any, and they had nobody attached to the embassies
at that time possessing any commercial knowledge. For
many years some of the Chambers of Commerce, notably the
Bradford Chamber, proposed the appointment of a Minister
of Commerce at the annual meeting of the Associated
Chambers. They never carried the proposition, because
there is no room for a Minister of Commerce in this country,
as commercial matters are partly attended to by the Board
3
of Trade, partly by the Foreign Office, as far as foreign
countries are concerned, and partly, as far as the colonies
are concerned, by the Colonial Secretary, for India by the
Indian office. When I was President of the Dundee
Chamber of Commerce in 1876, I proposed in London, in
opposition to the proposal of the Bradford Chamber of
Commerce, that there should be a properly constituted
commercial department at the Foreign Office presided over
by an Under Secretary of State, and also that there should
be commercial attaches at every British embassy abroad to
attend to commercial matters. The commercial department at
the Foreign Office had always been a subordinate department
in charge of a head clerk, and I believe it is so still, but it is
under the control of the Under Secretary for Foreign Affairs.
My proposition was carried, and since that time there have
been gentlemen attached to some of the embassies to give
their special attention to the commercial interests of this
country. The consuls abroad have also been asked to give
periodical reports on the commerce of the country in which
they reside, which they have done to the best of their ability.
Some of these reports are very interesting, but whether they
have been of much use to parties on this side engaged in the
export trade is questionable.
|Unfortunately there is a constant shifting and promotion
going on amongst these representatives, of which I can give
you several instances. I went to Vienna, I think in the
early 'Seventies, when a treaty of commerce was being negoti-
ated with Austria which greatly affected the interests of the
Dundee trade. I had an introduction from the Foreign
Secretary to Sir Andrew Buchanan, a Scotchman of the good
old school, who was our ambassador at Vienna. He was
very kind, read the letter of introduction, and then Said to
me in his deep tones, “I see this is a commercial matter.
You know I know nothing at all about commerce, but I
tell you what I will do for you. I will give you a letter of
introduction to our Consul - General at Buda-Pesth—Mr
Harris Gastrell — who I think knows something about the
matter and who will do what he can for you.” I went to
Buda-Pesth, and I saw Mr Harris Gastrell, who interested
4
himself in the matter, but while the negotiations were still
proceeding between this country and Austria-Hungary, Mr
Harris Gastrell was transferred from Buda-Pesth to Wal-
paraiso to assume the post of consul there, so I need not tell
you that nothing came of his efforts. On another occasion
when I was in Berlin I saw the late Lord Odo Russell, after-
wards Lord Ampthill, who was our ambassador—a most
intelligent man—who expressed his regret to me that he
had nobody in connection with his embassy conversant with
commercial matters, and that he had often asked the Foreign
Office to give him such a man as assistant, as without such
assistance he could do very little to help Chambers of Com-
merce in making arrangements with the German Government.
I can give you still another instance. Sir Edward Malet,
who for many years was our ambassador at Berlin, was
before that time attache of the British embassy in Rome, and
a treaty of commerce was being negotiated between Great
Britain and Italy — he travelled round the country and
interviewed Chambers of Commerce to get himself posted
up as to what was required. He came to Dundee, and I had
an interview with him and told him what was wanted. I
also went to London and saw Signor Luzzatti, who is at
present Minister of Finance in the Italian Government, and
who promised to do all he could to favour my views. But
as far as Sir Edward Malet was concerned, before the matter
was concluded he was transferred from Rome to Alexandria,
to take up his position there as Minister Plenipotentiary,
which he still filled during the time of Arabi Pasha's re-
bellion.
You will easily understand why, under this system of so
frequently transferring the officials who have got commercial
matters in hand, a satisfactory result is made very difficult if
not impossible. Besides this, we in this country have been
accustomed to let well enough alone. As long as trade was
fairly good we did not see the use of troubling ourselves
much about what foreign countries were doing. When the
present discussion arose or was brought on by Mr Chamber-
lain, I felt somehow as if the country had been asleep for
thirty years and had suddenly wakened up to discover the
5
great injury that was being done to this country by foreign
tariffs. But the same thing has been going on gradually for
many years, especially since the early 'Seventies. Before
that time in many branches of trade Great Britain had a
monopoly, not only in manufacturing different classes of
goods but also in making the machinery for spinning the
yarn and manufacturing the cloth. Notably this was the
case in Dundee, which was almost the only place at that
time where jute yarns were being spun and jute cloth
manufactured. After the Franco-German war of 1870-71,
when the French milliards found their way to Germany, the
Germans discovered that they could themselves manufacture
these goods, which they had been importing so very largely;
and between 1873 and 1880, as far as I remember, thirteen
jute factories were erected through the German Empire.
The duty was increased gradually, until it amounts to about
25 per cent of the average value of the goods, which has
proved sufficient protection, and Dundee has lost the very
large trade with Germany that it had been doing before.
The same thing happened in other countries. After the
treaty of commerce with France we did export to a con-
siderable extent there both flax and jute cloth, because they
did not make a sufficient quantity of the goods themselves.
They also increased the duty up to about 25 per cent,
which is the present rate for Dundee goods. But I want
you to understand that it was not only the duty that killed
the trade—it was the fact that they had increased the pro-
duction of their own factories. In the same way our
business was lost with other countries: with Austria, where
the duty is now 30 per cent ; with Italy, where it is also
30 per cent ; notably with Russia, where the duty is fully
100 per cent. The Russians when they do anything do it
very thoroughly—in fact, they go beyond what is necessary.
There was a time when the trade between Dundee and
Russia was a very large one indeed. I am going to betray
to you some of the secrets of my own business; but, as that
business is gone for ever, I am afraid that nobody will be
the better of knowing the secret. During the war between
Turkey and Russia in 1878, the commission I paid myself in
6
that year to two agents in Russia for the sale of jute bags
was £2000. I chartered a steamer—one of the Gem Line
of Dundee, called the Diamond—filled her with jute bags
made in Dundee, and sent her out to Odessa a full cargo,
which was on arrival sold for cash, and I received this cash
within two months from the time of shipment. Well,
gentlemen, that is all gone; at present there is not a single
bag goes from Dundee to Russia. They have erected their
own factories, and our trade has been entirely lost. On
Belfast linen goods, which also used to be a large trade, the
duty in Russia is 150 per cent.
Now, whatever the result may be of Mr Chamberlain's pro-
posals, I am afraid that no good will be done to the Dundee
trade, except perhaps through an improvement in the home
trade. The factories abroad have been built ; they exist, and
will continue to exist—although some of them not very
profitably; but at any rate they are able to supply their
home demand, and none of that will come back to this
country. Some of these factories—especially those in Italy,
Germany, and Austria—not only supply their home wants,
but have frequently a surplus left over for exportation to
other foreign countries, where they have been competing with
us for some years; and some markets that Dundee used to
supply entirely—for instance, some of those round the Medi-
terranean—have been lately supplied by the Italian manufac-
turers. The trade to Roumania has also, to some extent,
been taken by the Italian manufacturers, who sell cheaper
than we can do, partly enabled to do so through the geo-
graphical position of these countries being nearer to the
markets than we are.
I have been a free-trader all my life, and never wanted to
listen to anything that Savoured in the least of protection ;
but it should be free trade all round. I have always held
that a great mistake was made in 1860 by unnecessarily
repealing the duties on articles of luxury, or at all events
articles used by the better classes, for which, in my opinion,
there was never any occasion. I mean such things as French
silks, gloves, artificial flowers, ribbons, &c. The industries
of Spitalfields and Coventry were ruined by this wholesale
7
repeal without any necessity. In 1860 the duty was repealed
on about 130 articles in our tariff, and nothing was left for this
country to bargain with. All we could ask for was the most
favoured nation treatment. We did get cheaper claret from
France, called in those days the “ Gladstone” claret, which,
however, did not take root in this country, and is less used
now than it was thirty years ago. Great Britain never gave
up the right of treating with foreign nations regarding their
tariffs, but under the system of free trade this right has
never been exercised further than to insist on the most
favoured nation treatment. It has been tacitly understood
that this country is a free-trade country, and that no duty
would be put on the manufactures of foreign countries, and
that we were satisfied to be treated no worse than others.
It is now proposed to resume the right, which, as I have
Said, was never given up, of saying to foreign countries, We
want to be treated fairly; and if you persist in putting high
duties on our goods, we must put duties on yours. That
seems logical ; but I must tell you that I am afraid this
measure comes somewhat late, and that we shall never get
rid of the competition which we helped to create ourselves.
It is a well-known fact that in the beginning, at all events,
the machinery for these foreign factories was made in this
country, and some of it is still made here. The workmen and
women to teach spinning and weaving went out from this
country, and in this way we helped greatly to bring about
that competition which we now so much deplore. As far as
the Dundee trade is concerned, it would not be right only to
speak of the competition of foreign countries, because our
principal competitor is Calcutta, and the same thing that I
have described took place there. Some of our own merchants
went out to Calcutta, and helped to establish the jute mills
there; some transferred their works from Scotland to Cal-
cutta, teachers were sent out, until now the production of
the Calcutta jute mills is about double that of the Dundee
factories, and the principal markets—such as Australia,
Argentine Republic, and United States of America—are sup-
plied from Calcutta altogether, except in very rare and
exceptional cases. In this connection it is interesting to
8
mention that about half of the jute crop is now manufactured
in India, a quarter on the Continent, and a quarter in
Dundee. It was natural that these Calcutta mills would
sooner or later be established—because the jute grows
there, wages are ever so much cheaper than in this country
and labour more plentiful, while they are not hampered
by such strict Factory Acts as we are, and some of the
mills run twenty-four hours, worked by three different
sets of workers, being lit by electricity during the night.
After all, you cannot stop the wheels of progress, and
these mills, in any case, would have been established ; but
whether it was wise for some of our own people to help to
establish them, is a matter for private judgment. It has
been proposed, as a remedy to foreign competition, to put a
duty upon jute exported from India to all countries except
to Great Britain, but I do not believe that the Indian
Government will ever consent to such a measure; and if
ever an export duty is put on any article produced in India,
whether it be jute or anything else, it would be a general
duty to all countries equally and for financial purposes.
I shall now say a few words about the linen trade. Its
Seat is partly in Scotland—in Forfarshire, Fifeshire, and
Aberdeen, and there are also some linen goods made at
Barnsley and other places in England. But the principal
centre of the linen trade, as you are no doubt aware, is
Belfast. This trade has also greatly suffered from foreign
competition and foreign tariffs. Linen goods have always
been made in foreign countries, but the production has in-
creased so that Russia, for instance, which used to be a very
important customer, now produces itself the larger part of
its requirements. You will best understand the present
position if I give you a few figures regarding this branch
of business. -
The importation of flax and tow into Scotland, which was
about 59,000 tons annually between the years 1880 and
1887, has decreased to about 46,000 tons, which is the
average per year for the last eight years, from 1895 to 1902.
The importation of flax and tow into Dundee alone has not
increased, and is not greater now than it was ten years ago.
9
With regard to Belfast, Mr R. H. Reade, chairman of the
York Street Flax Spinning Company—the largest establish-
ment of its kind in Ireland—and a member of the Tariff
Commission appointed by Mr Chamberlain, lately made a
speech on the fiscal question at a meeting of the Belfast
Chamber of Commerce, in which he stated that “between
1872 and 1901 one hundred thousand flax spindles have been
stopped in Ireland, the buildings being demolished or applied
to other purposes; and 5000 work-people had been deprived
of the employment for which they had been trained.” The
production of Irish flax has enormously decreased. In 1880
Ireland had 157,534 acres under flax ; in 1885, 108,147
acres; in 1890, 96,896 acres; in 1900, 47,451 acres; and
in 1903, 44,667 acres. On the other hand, the importation
of foreign flax into Belfast increased from 18,464 tons in
1870 to 31,051 tons in 1900: this shows that other coarser
fabrics have come to be manufactured for which Irish flax
is not suitable. Another cause of the decrease is the emigra-
tion from Ireland and the tendency of the agricultural classes,
including labourers, to move from the country into the towns.
The principal customer for linen goods exported from the
United Kingdom has been the United States of America.
In the year 1866, which was a record year owing to the
demand caused by the American War of Secession, the
amount of linen goods exported to the United States from
the United Kingdom was about £9,000,000. In 1870 it was
£6,886,000; in 1880, £5,100,000; in 1890, £4,200,000; and
in 1900, £3,852,000. This trade has greatly suffered through
the McKinley and the Dingley tariffs: if these had not been
passed, the amount of linen goods imported into the United
States would have been double that which it is at present.
These tariffs, as far as linen goods were concerned, were not
put on for the purpose of protection, as hardly any linen
goods are manufactured in the United States: it must there-
fore have been done for revenue purposes, or in order to give
no advantage to any special branch of foreign industry. The
result of this has been that the Americans have accustomed
themselves to the use of cotton goods made in their own
country, instead of linen goods imported from the United
10
Kingdom | Whether these high tariffs would have been im-
posed if this country could have shown an inclination to
retaliate, I cannot say, it might have had an influence on
them; but, on the other hand, goods from protective countries
such as France, Germany, and others are charged the same
rates of duty as from this country. The Americans them-
selves do not ask leave of other nations with regard to their
fiscal policy: when they took over the Philippine Islands,
they immediately put an export duty of 30s. per ton on
Manila hemp shipped to any other country except the
United States . It is also a fact that no ships get leave
to trade or do business in the Philippine Islands or Cuba
except under the American flag, so that instead of the open
door the door is emphatically shut against all except the
Americans themselves |
The Belfast Chamber of Commerce, at their meeting early
in December last, passed a resolution that “the time has
come when, in the interests of the trade of the United Em-
pire, the Government should resume freedom of action in
fiscal negotiations.” Nobody can disagree with this resolu-
tion such as it is, and it seems an innocent one: as I have
pointed out already, I am not aware that the British Govern-
ment ever gave up their right to negotiate tariffs with other
countries, or to put a duty on imports from foreign countries,
under the sanction of Parliament.
I feel great hesitation in saying anything about the pro-
posal to give a preference to our Colonies. As I said before,
that is in any case an experiment and a matter for the
future: it remains to be seen what the Colonies will have to
say to it. At present they are not quite unanimous—they are
mostly protectionists: it remains to be seen what advantages
they are prepared to give the mother country for any prefer-
ence we may give them. It also appears to me that it will
be extremely difficult to devise a scheme which would treat
all the Colonies on the same equitable basis, as the difference
in their geographical position and their distance from the
mother country and consequently higher rates of transmission
would have to be considered, as for instance the difference in
distance to this country from Canada and from Australia. It,
11
however, seems to me that if what is called a policy of retali-
ation is adopted, it must necessarily lead to a preference
being given to the Colonies. If you say to Germany, or to
Russia, or to France, “If you do not do what we want, we
will put a duty on your goods,” I cannot conceive a state of
matters where we would say the same thing to one of our own
Colonies. Therefore, if this policy of retaliation towards
foreign nations is adopted, and the Colonies left out of any
such retaliation, that in itself will constitute a preference. I
would not, however, be surprised if the mere threat of retalia-
tion proved sufficient for the purpose this country might have
in view. This has been proved by the action of the German
Government towards Canada. They threatened to penalise
Canada for the preference given to Great Britain; but they
have, since the present agitation began, thought better of it,
and will not change their commercial policy towards Canada.
I notice that Mr Chamberlain has appointed a Tariff Com-
mission to go into the details of the customs tariffs that
might be established with foreign countries. Well, I may
say that these gentlemen have got their work cut out for
them, and if they succeed in forming a workable tariff they
deserve to get gold medals every one of them. The proposal
is, as far as I know, to put a duty averaging about 10 per
cent on foreign manufactures. Well, for protective purposes
that would not be sufficient. It would certainly not prevent
what is called “dumping” of foreign goods into this country.
Most foreign mills have extended too much : it seems to be
a passion with any one who has got a factory that when
there is a year of good trade he thinks it will last for ever,
and goes on extending his mill, and when the good trade
comes to an end he finds he has not got employment for the
whole place, and therefore he must find an outlet for his
surplus or stop machinery. That state of things will continue
to exist; and if, for instance, a manufacturer in Germany
can only sell 75 per cent of his production at home, and has
to export the remaining 25 per cent and to sell it at lower
prices to get rid of it, and by preference has sent it to Great
Britain, as being the only free market in Europe, a duty
of 10 per cent will never prevent him from continuing to
12
send us his over-production, and he would certainly reduce
his price sufficiently so as to make a moderate duty of 10
per cent have no effect. I can give you an instance, so to
speak, the other way about. When the Germans imposed a
duty on cotton thread, made in Paisley by Coats, Clark, and
other large manufacturers, these gentlemen continued sending
their thread to Germany, and sold it at the old prices. They
are doing so still—they pay the duty themselves: it is not
paid by the consumer in Germany. I am giving you this
instance to consider and form your own conclusions.
I was speaking to one of my friends the other day who is
a large flour-miller in this country, and naturally I asked
him about his own business. I suppose you are all aware of
the effect that the repeal of the Corn Laws had on the pro-
duction of wheat in this country. I understand that before
1846 there were 4 million of acres of wheat grown in
Great Britain, producing about 16 million bushels, whereas
now the area which is grown is reduced to about 1,600,000
of acres, producing 6 million bushels. Free - trader as
I am, I must confess I was sorry when the late Chan-
cellor of the Exchequer repealed the shilling duty on
grain which had been imposed the year before. You are
all aware that this so-called registration duty had always
been in force in this country from 1846 till about 1870, and
it was never felt by anybody. Neither was the shilling duty
felt now, nor would, in my opinion, a 2s. duty, such as is
proposed, be felt. It would take a much higher duty before
the people would feel that their bread was being taxed.
What the future has in store for us with regard to the
production of grain abroad we can only surmise. In former
years Germany exported grain very largely to this country,
especially from the Baltic ports, but since the bonus was
given on the manufacture of beetroot sugar the land
formerly under wheat was, to a very large extent, put under
beetroot, with the result that there was no grain left to
export. On the contrary, Germany had to import grain for
her own requirements. Now, after the Sugar Convention,
this bonus on beetroot sugar has been cancelled, it remains
to be seen what the German producers are going to do; but
13
it will be very troublesome and slow to change land which
has been producing beetroot back again into wheat land.
The quantity of wheat that is being produced every year is
increasing enormously, not so much in the United States,
where any such increase would be partly consumed by the
ever-increasing population, but in such countries, for instance,
as the Argentine Republic. This year—i.e., 1903—the total
area under wheat and linseed is 5,600,000 hectares (a
hectare is 2% acres), and there seems to be no limit to the
extension,--an advance of about 700,000 hectares in 1902,
and of 2,100,000 hectares in 1899-1900. It has been re-
ported to me that the crop of wheat and linseed of 1903-4
will amount to about 4% million tons. After deducting for
home consumption about a million tons, it leaves for export
2,700,000 tons of wheat and 800,000 tons of linseed. I
will give you a few interesting items in connection with the
production of food-stuff in the Argentine. The Customs
Bouse records report in 1903 an importation of 30,000 tons
of jute cloth for bags, against 18,000 tons for the correspond-
ing period in 1902. This large quantity comes mostly from
Calcutta. There were also 70,000 ploughs imported, against
40,000 the year before, 90 complete harvesters, and 100
threshing-machines, while importing firms in Buenos Ayres
and Rosario have received 6000 reapers, and expect 1500
more before the end of the year. During the same period
of 1902 only 3000 reapers were imported.
But to come nearer home, there is our great colony of
Canada, with an area estimated from 40 to 70 million acres
suitable for the production of wheat, and out of this enor-
mous area there is only a very small percentage utilised in
the meantime. It seems quite clear that within ten years,
or at any rate say twenty years, Canada will be able to far
more than supply the total requirements of this country as
far as grain is concerned : they will be able to supply the
whole of Europe. They can produce as much as the whole
of the United States of America if they had a larger agri-
cultural population. There is a great influx of American
farmers into Canada going on continually.
Regarding competition in other articles, there has been a
14
large quantity of steel imported by shipbuilders and en-
gineers from Germany cheaper than it can be produced in
this country or in Germany, as they sold it under cost, and
I understand that our shipbuilders are quite Satisfied with
this state of matters, as they find the competition in ship-
building already keen enough. If a duty was put on foreign
steel it would be unfavourable both for shipbuilders and
engineers, but I do not believe that any scheme will be
adopted that proposes to tax raw materials: it would do more
harm than good to many of our industries.
Chemicals, and especially aniline dyes, are, as you are
probably aware, imported from Germany, where this manu-
facture has been, and is, a very profitable industry. I have
been informed that the inventor of these dyes offered them
first to some of the proprietors of large dyeworks in this
country. It seems they thought it too troublesome to adopt
anything new, and refused to buy the patent, and it was
only after that refusal that the inventor took his invention
to Germany, where it was eagerly accepted, and has paid since
splendid profits. Generally speaking, the manufacturers in
this country like to go on making what they have been in
the habit of producing and what their fathers produced
before them, whereas abroad the manufacturer adapts him-
self very much more to the wants of his customers, and does
not mind a good deal of trouble in producing what they
require. With regard to many branches of industry, it is
well known that the technical knowledge of this country is
not equal to that on the Continent, especially in Germany.
I have seen the improvement of technical education
mentioned as a remedy for the ills from which trade in
this country suffers; but even if such education were more
generally adopted than it is at present, the results of it
would only become apparent in future generations. A great
deal would depend on the application to constant work
of the present and future generations of our young men:
they would not have to spend too much time in the exercise
of out-door sports. Their fathers worked hard and built up a
world-wide trade; it is for the young men to do their best to
keep it. If trade in this country is on the down grade, as
15
Mr Chamberlain tells us, a more immediate remedy will
have to be found. In my opinion, a case for careful inquiry
has been made out, a change in the fiscal policy of this
country cannot be rushed, and if any alteration on the
present system is to be made it can only be after having
given full consideration to all sides of the question. This
must be done from a wide, imperial point of view, and not
from the particular point of view of any selected industry.
This country has prospered under free trade, but the
prosperity has not been owing to free trade alone. We had
for many years almost a monopoly of many branches of
trade, but that is so no longer, and foreign competition
pushes on us more and more every year, and we must meet
this, not give it up.
It is much to be regretted that this controversy has not
been kept strictly within business lines, as it is entirely a
matter of business, and should not be used as a political
factor at all. But in this country it seems almost impos-
sible to start any great question without making it a party
question. I think it a great pity that this should be so.
In the views which I have tried to put before you I have
endeavoured to do so without any bias one way or another,
leaving it to you to form your own conclusions. Whatever
may be the result of the discussion going on throughout the
country at present, I trust that it may be for the benefit of
all concerned. I had considerable hesitation in complying
with the request of your President to give this address;
but I felt that in such an important question it was the
duty of any one having some experience of the subject to
give others the benefit of it, and to contribute to the best of
his ability to the great controversy which is now agitating
the whole country.
HOME AND FOREIGN TRADE
AS
AFFECTED BY TARIFF
BY
EDWARD BATTEN
kiRKcAldy
Read to the Jcottish Jociety of Economists
on 17th March 1905
33rintet fig
WILLIAM BLACKWOOD AND SONS
ED IN BU R G H : M CMV
AſOMAE AAV/O APOA’AF/GAV 7TA’A/OA. AS
AA'AºA2C 7TE/O AE V 7TAA’/AEA.
IT seems to the writer that although there has been much
discussion upon some sides of the Tariff question, on one at
least, and that an important aspect, there is need for more
careful study. This study is needed to show the bearing
which pure economic theory, as expounded by the recognised
teachers of the science, has upon manufacture and trade
now in actual operation in this workaday world. Many,
believing that an ostentatiously inflexible system of free
imports unmodified by any policy pursued by other coun-
tries is bad, flatly deny that a theory of economics which
forms the sanction of such a system can have any exact
connection with the ordinary affairs of commerce, and yet
they make little or no attempt to precisely define the way
in which the connection is defective.
Yet it is of the utmost urgency to make absolutely clear
how the conditions of the case differ from those assumed as
a basis for the theory. And so the aim of the writer is,
however imperfectly and insufficiently, yet in all honesty
avoiding sophism and fallacy, to do this. The free import
advocates in many cases assume that there is no controversy
of any kind between the economists themselves, whose teach-
ing they appeal to, but that the writers of the British school
from Adam Smith downwards have been in perfect accord,
at least in all their fundamental contentions; yet this is by
no means the case. Consideration of a few outstanding in-
stances of this may not be useless. Adam Smith wrote,
“Taxes upon necessaries, so far as they affect the labouring
poor, are finally paid, partly by landlords in the diminished
rent of their lands, and partly by rich consumers.”* Ricardo,
* Wealth of Nations, Book W. cap. ii. art. iv.
2
referring to this passage, says: “It is not true,” and “It is
from Dr Smith’s erroneous view of the effect of these taxes
that he has been led to the conclusion that,” quoting Adam
Smith, “the middling and superior ranks of the people, if
they understood their own interests, ought always to oppose
all taxes upon the necessaries of life.” Again Ricardo had
already decided to his own satisfaction, and the admiration
of the economists who followed him, the law of wages,
saying, “The natural price of labour is that price which
is necessary to enable the labourers, one with another, to
subsist and to perpetuate their race, without either increase
or diminution.””
MacCulloch, James Mill, and John Stuart Mill all ac-
cepted the theory from which this dogma was deduced,
and it was practically unquestioned by economists from
1820 to 1869. It is fair to add, however, that J. S.
Mill before his death acknowledged himself to have been
wrong on this matter.” On the top of all this confusion
of counsel amongst those teachers the Free Importers would
have us accept as infallible guides, W. Stanley Jevons writes
in 1879: “The conclusion to which I am ever more clearly
coming is that the only hope of obtaining a true system of
economics is to fling aside, once and for ever, the mazy and
preposterous assumptions of the Ricardian school. Our
English economists have been living in a fool’s paradise.” “
“When at length a true system of economics comes to be
established, it will be seen that that able but wrong-headed
man, David Ricardo, shunted the car of economic science on
to a wrong line—a line, however, on which it was further
urged towards confusion by his equally able and wrong-
headed admirer, John Stuart Mill.” ” These are strong words
for the accepted teachers of the science to apply to each
other's theories, and should certainly move us to carefully
weigh the theories themselves when urged upon us as an
* Principles of Political Economy, cap. xvi.
* Ibid., cap. v.
* Fortnightly Review, May 1869.
* The Theory of Political Economy. Preface, p. xliii.
* Ibid., p. i.
3
infallible light to guide our feet in the difficult paths of
manufacture and trade to the desired goal of national well-
being. This national wellbeing or prosperity is itself dis-
tinguished from simply the accumulation of aggregate wealth,
and certainly opposed to such accumulation, where the in-
crease entails more widespread poverty and misery. To all
good citizens the problem that most urgently calls for solu-
tion must always be the increase of wealth where the need
is greatest. This it is which is the true economy, for thereby
every smallest increment of wealth is so placed as to produce
its maximum effect; and that nation is following the sanest
policy which is so ordering its goings that, with the given
amount of land and natural wealth at its disposal, by its
mental and physical capacity for labour, with the aid of its
capital, it is producing the greatest possible quantity of things
which make for material happiness, and distributing them
where there is the greatest need. For the reason that
Political Economy from Ricardo's fallacious statement of the
“natural” rate of wages in 1820 down to J. S. Mill's belated
recantation of the wage fund fallacy in 1869 is in one of its
most vital limbs unsound, the Science as expounded in that
period must be regarded with suspicion, and its conclusions
recognised as not necessarily of any cogency, except in the
hypothetical circumstances assumed. The attempt to trans-
late such abstract laws into concrete regulations for the
Ordering of a nation's economic life is, if there be any
wide divergence between the hypothetical and the actual
factors involved, distinctly illogical. This has certainly
been recognised, and a more critical spirit has been in the
air from the time when Professor Jevons, in 1871, an-
nounced the true doctrine of wages, that “the wages of a
working man are ultimately coincident with what he pro-
duces, after the deduction of rent, taxes, and the interest
of capital.” Jevons was followed in America by Prof. F. A.
Walker of Harvard, who, in 1876, was looked upon as an
economic heretic in that country for Saying that “wages
are, in any philosophical view of the subject, paid out of
the product of present industry, and hence production
furnishes the true measure of wages.”
4.
Much of the dogmatic teaching of the laissez-faire school,
to the effect that a state was foredoomed to failure, or worse,
that under any circumstances in any way attempted to improve
its economic position by a tariff, was influenced by the fallacy
of Ricardo's, that the natural rate of wages is just sufficient
to support the labourer. For if it is generally conceded that
by Protection the producer may receive a benefit, and I do
not think even Free Importers deny this, then surely labourers
who produce more than they consume, under pain of consum-
ing nothing, form precisely the class who would profit by
Protection. But the Free Importers urge that the labourer
though a producer is also a consumer, and as a consumer he
would suffer from a protective tariff. He might do so; but
he producing more than he consumes must have more to sell
than he buys, and therefore his selling interest outweighs
his buying interest. If the Free Importers wish to pin
their faith to the Ricardian School as developed and ex-
pounded by its followers, then Protection can make no differ-
ence to the labourer, for his natural wage is as little as will
support him. If, on the contrary, his wages are ruled by his
productiveness, as began to be taught thirty years after the
Corn Laws in their then form were wisely abolished, and
if by Protection he can be enabled to increase the quantity
of goods he produces, then to that extent as a producer he
must profit, for he would have more to sell.
The first question, then, we have to consider is whether
by a tariff the amount of wealth produced by labour in this
country can be increased. This is an altogether different
question from whether by a tariff the amount of wealth
produced in the whole World can be increased. It is easier of
solution, it is the only one which nearly concerns us in this
debate, and may be answered in the affirmative, provided that
in this country at present labour is not employed to its full
capacity, and there is also capital available for the use of
labour in increasing its production of wealth. This may be
done in two ways. First, directly by a discriminating tariff,
—that is, a tariff which is higher upon imports whose value
consists largely of the labour spent on their production in
the country of origin, than it is upon raw material. Secondly,
5
a tariff may assist production in this country indirectly by
preventing withdrawal of capital from home and its invest-
ment abroad. This may be done by a tariff, for the £70,000,000
per annum of interest on foreign investments which is
received in this country must ultimately come in the
form of goods, and an import duty on these goods would
reduce the profits from the foreign investments, so tending to
make the employment of British capital abroad less remumer-
ative. More capital would therefore remain here, and be
available for use by manufactures in the general development
of production, with a consequent increased demand on their
part for workmen, so causing a higher rate of wages. One
cause of the failure of the Free Importers to see this is that
they assume that what might be wise for a communistic state
must be equally so for a state which is not communistic, but
this is not the case. For supposing a communistic state had
such large foreign investments that it annually received
sufficient interest from abroad in the form of imported goods
as would supply all its needs, the greater the quantity of
these goods the higher would be its material prosperity, and,
being communistic, the material prosperity of every individual
in the state. But if we suppose the same investment of all
capital abroad to obtain with a state which is Organised on a
private property system, and the capitalists to consume the
goods sent as interest, they indeed could live upon those
goods, but the people without foreign investments would have
no means of subsistence. Even in the case of a communistic
state, it is evident that any productive work which its mem-
bers engaged in would supplement its income, and add to its
wealth; for nations, let the products of their investments and
industry be distributed how they may, must always grow in
wealth by efficient production and economic consumption.
When we consider the case of a country such as ours,
wherein the vast majority of the people are so circumstanced
that they have no investments, and no means of livelihood
save the portion of the daily produce of their labour which
they are able by bargain to secure, it is obvious that for the
workmen everything which increases the supply of the fruits
of labour, without their aid, and without setting free capital
6
for their employment, reduces the demand for their work,
and so reduces the part of the profits of their exertion which
they might otherwise obtain as wages. But, in many cases,
foreign manufactured goods do more than this, for when they
are imported as interest they are not exchanged for exports,
but displace home workers, so actually reducing home pro-
duction and wealth. Thus possessors of capital remaining in
the country, whose capital is fixed in machinery, or in plant
and factory buildings, are in no better case than the displaced
workers. This is because the manufacturer and the labourer
are identically concerned as against the simple possessor of
free capital; for whatever increases the quantity of this
latter reduces the rate of interest, besides providing a further
supply of capital with which the manufacturer and labourer
may increase their produce. But in the sharing of the profits
between the manufacturer and the labourer after the interest
on capital has been deducted, their claims become antagon-
istic, and here it is that a true conception of the real nature
of wages is again important. Wages being, contrary to the
chosen economic teachers of the Manchester school, the share
of the profits of production which the labourer is able to
secure, it follows that wages form no part of the cost of
manufacture.
Let us be quite clear upon this. Labour is part of the
cost, but wages are part of the profits: any inefficient use
of labour, any ca’-canny policy on the part of the worker,
adds to the cost of manufacture, but an increase of wages
only changes the distribution of profits. To take a simple
instance of this: Suppose two persons,—a master using his
own capital, and a workman who makes boots which are
sold at a profit of £300 per annum,_after paying rent and
paying for the materials used in making the boots, the joint
net yearly value of their exertions and the use of the
capital is then £300—of which, say, £200 goes to the master
and £100 to the man. Now, if their production be reduced
to half, and we ignore the fact that less raw materials are
used, there will be a loss of £150; or, stated another way,
the same quantity of boots when made will have cost twice
as much to produce as before. On the contrary, any altera-
7
tion made in the shares of the profits divided between the
master and the man, such as raising the workman's wages,
does not affect the cost of the boots in any way. The
master's share may become less, the man's more; the cost
of the boots is still the same as it was originally. Indeed,
if the workman by reason of his receiving a larger share of
the profits lives upon a higher standard of comfort, he may
become more vigorous and intelligent, be able to increase his
output, and so by higher wages to cheapen production. But
we will suppose that, owing to competition amongst workmen
for employment, the bootmaker cannot obtain a larger share
of the profits of the industry by securing higher wages, yet if
the profits which the master makes are not consumed, capital
must increase relatively to labour, and, competing for invest-
ment with that being employed, increases the demand for
labour and therefore its price, depreciates the rate of in-
terest, and lowers the cost to the workman of commodities
generally.
But all this is assuming that the share of the profits which
the working bootmaker is not able presently to Secure re-
mains in the country to increase capital. If it be invested
in a competing industry in a foreign country the result is
altogether opposite: then a foreign bootmaker may benefit
by the use of capital produced by our home labour, and the
boots made abroad coming as profits to this country, the
market for the home-made article is depressed, and with it
the wages of the home workman to the lowest rate at which
labour capable of doing the work can be hired in any
country. Thus it is that the British workman's productive-
ness, and the Small share which he has been able to obtain
of the wealth he has produced, become the means by which
he may be reduced to destitution and misery. It is an error
to contend that the growth of such imports as these is good
for the community; for this so-called foreign trade is not,
strictly speaking, trade at all. Not a farthing's worth of it is
paid for by current exports, and any economists who do not
distinguish such imports from trade proper, ignore rudi-
mentary facts which must be reckoned with, or no sound
practice can be founded on the theory of economics.
8
But it is not in this alone that the abstract theory of the
orthodox economist fails to take account of important factors.
Hor this theory it is the same whether a nation exports a
million pounds’ worth of watch-springs or of iron ore, whether
a manufacturer exports his plant or goods made upon it. If
a farmer exports his harvest for seed and necessaries, or
harvest and stock for whisky, there is no economic difference.
Indeed by pure theory, as the total money value of his harvest
and stock, added to his import of whisky, would exceed that
of the export of only his harvest and the import of seed and
necessaries, the whisky exchange would be rejoiced over as
increased external trade. Surely this is sufficient to show
how unwisely precipitate it is to indiscriminately translate
the abstractions made by scientists for simplifying the con-
sideration of phenomena into practical maxims for an applied
art. A man to succeed in commerce or manufacture must
do so by proceeding on an exactly contrary plan, for he must
know and act upon the knowledge that he lives by virtue of
fulfilling a certain function in life. A merchant must discern
of the infinite variety of commodities offered for sale, which
to buy, as also of his property which to sell. A manufacturer
must buy what he can use in his work, and sell what he has
made on his plant, not the plant itself if he intend to continue
manufacturing.
The same is true of a nation; and the indiscriminating
citation of statistics of external trade without any reference
to the concrete significance of the figures is worthless for the
correct appreciation of a nation's economic progress or de-
cadence. Almost equally worthless are these figures when
separated into the two classes of imports and exports, and this
it is which largely accounts for the same statistics being used
to support absolutely conflicting propositions. It is as if a
public company claimed to give a sufficient statement of its
condition, yet issued only a profit and loss account, and that
consisting of but one item on each side of the statement. I
venture to assert that no commonly prudent investor would
base any conclusion upon such an apology for a balance-sheet.
By Some authorities we are told that when the total
importation exceeds the total exportation the balance of
9
trade is against us. Yet Yves Guyot" cites Jean Baptiste
Say as having showed that it is just the reverse, and says
that Bastiat has “clenched the demonstration by a conclu-
sive instance.” The instance is of a merchant who exports
goods to the value of 200,000 francs as per statement to
the Custom House; he receives in exchange cotton value
352,000 francs, also as per statement to the Custom House,
the difference being made up of charges for transport, insur-
ance, commission, and profit. Bastiat says: “The partisans
of the balance of trade theory conclude because of this differ-
ence between 200,000 and 352,000, France is on the road to
ruin.” In further development of his argument he proceeds:
“The merchant sent out another ship which foundered just
outside the port with total loss of cargo; meanwhile the
Custom House registers exports to the amount of 200,000
francs, and as there are no imports to register it follows that
the partisans of the balance of trade must see in this ship-
wreck a clear met profit to France of 200,000 francs.” So
here we have a particular instance where enlarged imports
meant an addition to the wealth of the importing country,
and relatively enlarged exports connoted a commercial
disaster, and this instance is cited as proving, for a general
proposition, that excess of imports over exports shows a
nation must be growing in wealth.
It is amazing any one should fail to see that the figures
prove nothing, except that certain dealings have been made
in the way of foreign trade. All the other information
Bastiat acquired was not, and could not be, from the Custom
House returns, but from his knowledge of the ultimate and
qualitative, as distinguished from the temporary and numer-
ical, significance of the several transactions. The Salient
point is, that owing to destruction of the goods whilst they
were still the property of the exporter, no exchange takes
place; and to show how absolutely worthless is Bastiat's
conclusive instance, except to prove that the figures are
insufficient when taken alone, we will just invert the case.
Suppose that the imported cotton which passed the Custom
House as of the value of 352,000 francs was, whilst still the
* Principles of Social Economy, Bk. V. chap. ii.
10
property of its exporter, destroyed by the burning of the
warehouse in which it was stored, and that therefore no
balancing export was made from France. Here you would
have the converse of Bastiat's classical case, as now that a large
relative increase of imports has been caused by a commercial
disaster, and no exchange has taken place, yet, on the evidence
of the Customs House returns, it would be claimed by Bastiat
that the wealth of the importing country had been largely
increased. An excess of imports over exports may represent
profits, interest on foreign investments, withdrawal of capital
from foreign investments, or investment of foreign capital in
the importing country. An excess of exports over imports
may represent losses in trade or transport, payment of interest
on foreign capital, repayment of borrowed capital, or invest-
ment of capital abroad. It is evident, therefore, that the
economical significance to a country of its foreign trade
cannot be deduced from the simple enumeration in two
classes as imports and exports of such heterogeneous
factors.
If a nation is to grow in wealth, it must support itself by
the productive exercise of its labour and capital, and its
foreign trade must be the exchange of commodities so pro-
duced, without diminution of either its capital or natural
resources in the exchange. So the tariff which practical men
want is, first, a toll on profits from abroad which are received
in the form of products of labour, that so foreign investments
may be discouraged, and the wealth produced here may be
employed here to the enrichment of the producers who created
it. Secondly, a tariff is desirable on the labour content of
even those imports which are paid for by exports—i.e., those
imports which alone form part of trade proper, as the import
of the produce of labour, by a nation which has capital and
labour of its own unemployed, is directly injurious to its
workers exactly to the extent the labour value contained
in the import exceeds that contained in the export. To a
country with an industrial system as fully developed as
ours, and with workmen insufficiently employed, there is no
advantage to them or to manufacturers in importing any
thing but raw material; and both workmen and manufac-
11
turers might be better off if both our exports and imports
were diminished, provided the reduction of our exports were
in those goods which derive their value least from the labour
and machinery used upon them, and, conversely, our imports
reduced only in the value that in the course of manufacture
had been imparted to raw material.
The kind of foreign trade which a free import country
does with one having a well considered tariff may be made
altogether to the advantage of the latter, for it can buy from
the free import country what it wishes, and pay for its pur-
chase with whatever commodity it least requires. The free
import country is helpless in the exchange, compelled to
export perhaps what it most needs, and to import what it
least desires. For the protected country may buy, say, iron
Ore from the free import country at market price, and pay
by exporting, say, cutlery to Sheffield, where it can be sold,
if it be just the turn of the market lower in price than the
Sheffield goods of the same quality. The protected manu-
facturer could always afford to undersell the unprotected,
provided the methods of each were equally efficient, as he
would be secured in his own market by a duty and so need
only sell part of his produce at the low price; but his goods
being offered at a reduction at Sheffield, would depress the
market for the whole of the Sheffield output. By proceed-
ing in a similar way, a manufacturer protected by a tariff
can entirely destroy the trade of one, with precisely the same
efficiency of means and method, who is established in a free
import country. Suppose that each of these two manufact-
urers by running his works fifty hours per week can supply
his own market, if the one who is protected run his factory
a hundred hours per week, he so doubles his output, but his
standing charges are scarcely at all increased, and he can
export the whole of his additional produce to the free im-
port country, and sell it at such a price as will ruin him who
has no protected market. The more elaborate and costly
is the machinery employed by the rival manufacturers, and
the greater the amount of capital fixed in the business, the
more completely is the one in the free import country at
the mercy of the other, for the fixed capital in use in the
12
protected country is not at all increased by doubling the
production, and if we suppose charges for that capital to be
50 per cent of the price, the protected manufacturer can
afford to undersell his rival by 50 per cent. Free import
economists prescribe for this state of things that the British
manufacturer turn his capital to some other use, and his
workmen change their trade. So pronounced a free importer
as Professor Shield Nicholson has said: “From Adam Smith
downwards it has been taken as an essential part of the
theory of the advantages of foreign trade that the labour
displaced from the industry can find other employment, and
it is only on that supposition it is maintained that on the
whole the productive power and the consuming power
(including real wages) are increased. In the pure theory
perfect mobility of capital and labour within the country is
assumed. So far as the mobility is imperfect, there may be
losses in the transfer.” Every man of business knows that
when once capital is fixed in special machinery, unless that
machinery can be worked at a profit, the capital is destroyed.
All skilled labour is of necessity specialised to the extent
that it is skilled, and can only change its character by pass-
ing through the ranks of the unemployed into those of
casual labour. These recruits are added to the unemployed,
at the same moment that by the ruin of an industry the
capital fixed in that industry is destroyed, and the wealth
of the country thereby diminished, so there is less prospect
for the displaced workers of even casual employment than
there would have been if, when the trade failed, the capital
had been mobile enough to have been saved, and therefore
available to employ labour in some other way.
It is contended by free importers that if prices of com-
modities be higher in a protected country than in one which
admits free imports, the raising of prices must be injurious
to its citizens. But high prices may have various causes,
and so represent extremely diverse conditions. They may
be caused by scarcity, and so denote national misery; and it
is only when so caused they are injurious to any but the
creditor portion of the community, and that only in the
transition stage, for what the creditor loses the debtor gains.
13
Commodities really cost the nation where they are produced
the amount of labour and capital spent in their production,
so that relative cost proper for similar goods depends only
on the sufficiency of the capital and efficiency of the labour
applied, and has nothing whatever to do with money prices.
So also the cost to a nation of the goods which it imports is
the cost of the commodities it gives in exchange, and as this
has nothing whatever to do with money prices, so high
money prices within a country need have no restrictive in-
fluence on its export trade. It follows, therefore, that the
way to increase wealth is, firstly, to increase the produce
from the capital and labour available, and secondly, in
foreign trade, to obtain the commodities in which we are
poor, by exchanging for them those in which we are rich.
The first is to be done by keeping all fixed capital invested in
such plant as is most economical, and while carefully guarding
this immobile capital from destruction, to use all circulating
capital for the support of labour in its most productive,
educated, specialised, and therefore immobile form. The
second is to be done to-day, and in our own case by ex-
changing the products of labour and capital for raw material,
and neither of these can be done under a policy of free im-
ports competing with protected countries.
HV
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Address of
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wiLLIAM G. sums ER, 13%-
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Professor of Political and Social Science in Yale University
At Dinner of the Committee OIl Tariff Reform
of the Reform Club in the
City of New York.
June 2nd, 1906.
Published by the
REFORMI CLUB
COMMITTEE, ON TARIFF REFORM
42 Broadway, New York, N. Y.
SERIES 1906. No. 4, AUGUST 15th, 1906.

º
ir
PROFESSOR: SUMNER'S ADDRESS.
Mr. CHAIRMAN AND GENTLEMEN–I think it must be now nearly
twenty years since I have made a free trade speech or been able to
take share in a free trade dinner. -
When I was invited here this evening I thought I would try to
come for the pleasure of hearing the gentlemen, especially the mem-
bers of Congress, who were announced to speak here. I have been
So out of health that it has been impossible for me to sit up evenings
Or to attempt public speaking in the evenings, but things are going
a little better and I will make an attempt to say a little this evening
—not very much, as the hour is now late.
Thirty-five or forty years ago I became a free trader for two great
reasons, as far as I can now remember.
One was because, as a student of political economy, my whole
: mind revolted against the notion of magic that is involved in the
notion of a protective tariff. That is, there are facts that are ac-
counted for by assertions that are either plainly untrue or are entirely
irrational. The other reason was because it seemed to me that the
protective tariff system nourished erroneous ideas of success in busi-
mess and produced immoral results in the minds and hopes of the
people.
I cannot say that I have got any more light on the matter within
the last twenty years, but it looks to me still as if the great objections
to protectionism were these two. No man who enjoys the benefit of
; a protective tariff, as he believes, can ever tell whether he gets back
anything for the taxes which he pays or not. He never has any
analysis of the operation and never knows whether he really recovers
what he pays in from the action of the tariff or not. -
I say now the taxes which he pays, because let us not make any
mistake about this. The matter we are talking about is one entirely
of Americans and between Americans. If the protective tariff oper.
ates so as to perform what is attributed to it, it prevents things from
being imported into this country. That may be a disadvantage to
the foreigner, it may disappoint him in his hopes, but we may leave
him out of account. Then the increase of the cost of these commodi-
ties for the American consumer at home is the source from which
the American protected manufacturer must obtain his benefit, if he
ever obtains any. Therefore, he has to pay also taxes to the other
protected industries on account of the operation of the system.
Therefore he is both paying and receiving, but whether he gets back
the part that he hoped to receive or not is an operation which he
never can sift and never can know. -
I should suppose myself that possibly the Pennsylvanian on his
coal and iron might stand a good chance of winning something. The
4
operation is direct and simple in that case and coal and iron are to-
day the very first conditions of industry. They must be obtained
as raw material, because they enter into everything, and it is possible
that under those circumstances the game might be sufficiently direct
so that its effect could be felt and perceived. But the Connecticut
manufacturer has to pay taxes on coal and iron and copper and the
other metals and he has to pay also the taxes on wool and the other
raw materials, and then comes the question whether he ever gets it
back again or not. He never knows; he cannot know; he cannot feel
it and he cannot possibly know whether the operation of the system
is to bring him back a return for his outlay or not.
We hear a great deal about a rightly adjusted tariff. It is a con-
stant ideal that is presented whenever the tariff subject comes up
again for discussion in Congress that it ought to be rightly adjusted,
and when it is, it is going to perform its beneficial operation.
How can a tariff ever be rightly adjusted unless the industry will
stand still? The taxes stand still for years without change. The
industries never stand still. There are new inventions in machinery,
there are new raw materials brought into use, there are new progesses
developed, and all that changes the character of the industry. These
inventions and improvements and processes are all ignored by the
protective system. It contains no allowance for them at all. But
our people are full of enterprise, they are fond of improvements,
they like novelties, and they adopt changes. The conseqeunce is that
the industry changes, and then again the decisions that are made
by somebody or other as to the doubtful questions in the interpreta-
tion of the law are also constantly changing, and then by and by we
find a lot of people who want the tariff changed. They say it needs
to be adapted to the time, it is out of date, it has fallen behind, it does
not fit the requirements of the moment, and they would like to have
a tariff revision; but they are told then, that they ought to keep still
and not make a disturbance which will bring up a discussion of the
entire tariff system, and that they ought to allow it to go on for the
sake of the “system.” - - - -
What is the system them? The system means that the import
duties that we have in this country have raised the prices of all
commodities in our market, I may say, thirty or forty per cent. on a
very low calculation. Is not that a very extraordinary thing when
you stand off and you try to realize it for a minute—that we have
raised the prices in the United States thirty or forty per cent.—per-
haps more nearly fifty per cent.—above the level of the prices for the
same commodities in the other civilized countries of our grade, and
we believe that we have done a grand and noble thing by raising
these prices, putting the whole level of life in this country on an
artificial plane that much above the level of the world’s market? In
fact, if you should listen to a protectionist he would make you believe
that this continent would not be habitable if it was not for the pro-
tective tariff that is here working this operation all the time on the
American market. - . - - -
I am of the opinion—I am not very confident about it, but it
5
looks to me as if it were true that a protective tariff wears out in a
little while—I mean, so far as its expected beneficial effect is con-
cerned.
Its effects are distributed, they are taken up and they are allowed
for all around the market until the expected benefit to the protected
people is lost and there remains nothing but the dead weight of the
system itself as an interference with the industries. There is then
a call for a new tariff in order to get another impulse or another fillip,
as I have heard it called, to give things a new start, to start them on
again. . t -
That has been the history of our tariff now for one hundred years,
that it has been restarted, reinvigorated from time to time in order
to give a new impulse. Then in the very nature of the case, there-
fore, it seems to me that a new impulse is constantly required.
As I said at the outset, the tariff system seems to me to teach us
to believe that a man needs a “pull" of some kind or other to make
any industry a success. It is an idea that there must always be a
provision of easy profit in connection with the industry that shall
cause no labor or no expenditure of capital to get it. That is the pure
doctrine of graft. The tariff teaches us to look for a fee or a gratuity
or a rake-off which will be a pure and net profit. -
People are told that tariff taxes are a rightful gift to the bene-
ficiary. Those who do not get that gain seek another one of the same
kind somewhere, and when they do that they have recourse to graft.
It is a shameful fact that this notion of graft, and this word,
should have come to us, as it has within the last four or five years,
and should have extended so far and become so familiar to us in con-
nection with a great many of the operations of business. It is cus-
tomary, as we have known for a long time, in some nations, for in-
stance in Russia, China and Turkey, and with us it has seemed to
spread and to win acceptance and currency in a most astonishing
manner. &
I cannot believe but what the tariff system has educated us in
this direction and prepared us to tolerate and accept the development
of this idea. It also seems to me that now, after one hundred years
of this system, the tariff is no longer properly an economic question.
It is a practical political question. The politics and the business are
interwoven in it inextricably. There is no economic discussion pos-
sible of the propositions that are made, economic in form, in connec-
tion with the tariff system. There is only a war of partial views an
of superficial inferences. s
Our American protectionism has grown out of the peculiar cir-
cumstances of this country. It is an old idea that has come down:
to us from Europe, and indeed, from the Middle Ages in Europe,
and here it found a chance for a new and verv remarkable develop-
ment. There were new conditions here and the chances here were
so big and grand that, as a matter of fact, the protective system has
never done more than exact a certain tribute from us on these
chances. It has never really touched us in an acute and sensible
way, and in spite of it we have enjoyed marvelous prosperity which
6
is due really to the circumstances of advantage and favor which we
have enjoyed here.
In the year 1892 we got an issue on this matter and went to the
electorate with it with the result that we all know. But the mandate
of the people was neglected and disobeyed by the government and
the purpose that the people showed at that time was defied.
We have also had opportunity to notice the great power of the
protected interests in Congress. The fact is that we are being gov-
erned at the present time by a combination of these protected inter-
ests which have got control of the machinery of government, and
have control of the personnel of the government to such an extent
that it is almost impossible, practically, to make any breach in this
system at all. That is because the political combinations have been
so thoroughly wrought out and so ingeniously developed that they
look at present as if they were impregnable. . - y
I look around to see if I can find some encouragement. I thought
that it was something of an encouragement when Mr. Dalzell made
this speech in Congress that Mr. Williams has referred to, in which
he poured such scorn on the idea of “incidental protection.” I have
never said anything so severe about any protectionist idea as that
which he said about incidental protection. But suppose that the
people of 1850, the middle of the nineteenth century, could come to
life again, the old protectionists of that time. What would they
think to hear a man speak with scorn of incidental protection? It
was what they believed in; it was the whole business to them. When
an old protectionist like Mr. Dalzell can turn around and pour scorn
upon incidental protection I feel as if we never could tell what they
might throw overboard next time in some paroxysm of some kind
or other, fear or hope or something, and we might get a chance that
we have not been able to get in the past. - • *
Then, as has well been said by other gentlemen to-night, there has
been within the last year or two a very great revolt in the public
mind against graft and political and business corruption. How far
will this go? We do not know, but it is, at any rate, an opening in
the public mind that is full of chances. It may go very far, it may
have very great effects, it is certainly something to be noticed and
taken advantage of. - - -
Then, again, there are new conflicts of interests arising. We have
become very great people in the world's commerce, with a billion
dollars’ worth of exports and imports in a year, and we are so inter-
woven with the whole world that it will not be possible for us to go
on with our our old policy of discouraging commerce and rejecting
it, and trying to stop it, and paying no attention at all to the remon-
strances of our neighbors. In future we shall be obliged to pay some
attention to these remonstrances. They are just, they are reasonable,
and they will command our attention, and then we shall have to make
concessions to them. In other words, we cannot any longer afford
to reject and neglect these remonstrances. - -
It may be, therefore, that in the time that is now before us we
shall have better chances for a practical war upon this system than
7
we have had hitherto. As long, however, as I can remember, and as
long as I have had any share in it, we have got along without any
encouragement in it at all. We have done what we could without
them. We got so we did not expect it. We knew that we should be
neglected and treated as persons whose opinions in these matters
were not of any importance or worthy of any attention, and so we
went on and kept up our arguments, as we considered them, to the
best of our ability and without very much results.
Now, it may be that we are on the eve of a different time, when
the circumstances will be more favorable, more hopeful, more full
of opportunities, and I certainly, for my part, most profoundly hope
that that is so.
I have noticed with some discouragement the efforts that Mr.
Williams has made on the floor of Congress to get some modifications
made of the tariff or some argument even opened there that might
give the matter activity and life in the legislative domain. They did
not seem any more éncouraging than what we used to see in the old
times. But it is certainly in the nature of things that the difficulties
and absurdities of this system must come out in practice more and
more distinctly as we go on, and the need for reform will therefore
force itself in the shape of a play of interests that will bring new and
counteracting forces into operation to which we may look for help
in the overthrow of the system.
. . . . * * * ~~.
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*~. F. 93ton, Mass,
Address of the
Hon. JOHN DeWITT WARNER
President of The American Free Trade League
at the Dinner of the Committee on Tariff
Reform of the Reform Club in the
City of New York.
June 2nd, 1906.
Published by the
REFORMI CLUB
COMIMITTEE ON TARIFF REFORM
42 Broadway, New York, N. Y.
SERIES 1906. No.ºf SEPTEMBER 1st, 1906.
ſy;©<>º2-*
§
MR. WARNER'S ADDRESS.
Mr. Chairman: I should not at this hour trespass upon the cour-
tesy of an audience already so instructed and entertained, except
that, on behalf of the organization which I represent, and I am happy
to say on my own behalf, I wish to record its and my uncompromising
dissent from much that has been said here to-night.
You are mistaken, sir, in the attitude of the Free Trade League.
It has not worked and is not working for “tariff reform.” It is
working for Free Trade. You are mistaken, sir, as to my attitude. I
believe that nothing that I have ever said, nor inference or omission
from what I have said, has for a moment left me capable of being
misunderstood as an advocate of mere tariff reform, instead of
standing for Free Trade. *
With us, sir, of the League, we believe in free trade; absolute,
sir—no tariff, even for revenue. We believe that as compared with
free trade, even free speech is shadowy. Because, sir, so far as we
have been able to read history, there have never been tyrants who
were not fools, who were not entirely willing that you should have
all the freedom you want so long as you are willing to take it out in
talk. Our experience, on the other hand, has shown us that the very
moment you resent the interference of government favorites with
your business, then you are face to face in deadly combat with the
meanest graft in existence—the tariff graft that curses us to-day.
Do not understand me that we do not appreciate that among
protectionists to-day, just as among brigands in other countries
in other times, there are comparatively high-minded men. But we
believe that tariff robbery, as well as other brigandage, should be
rooted out. We believe that if honest men would stand together
and insist on not being imposed upon by others, those who were
worth saving amongst protectionists would see the error of their
Ways and come to us; and we are glad to feel that as far as that is
not so—if we could strip the remainder of their chance to prey upon
us, round them up together and cast them out—that the world would
be better, brighter and cleaner for it.
It is more in Sorrow than in anger, sir, that we hear some of
our friends say, “Why not have a revenue tariff?” What is a revenue
tariff? As has been explained here to-night, it is a scheme by which
the government goes into such partnership with tariff thieves that it
gets a part of the plunder.
About the first question, perhaps, that might be asked is what
to call our friends, in Congress or out of it, who imagine that they
are intelligent enough, who assume that they have integrity enough,
to go into that business with that kind of allies and not come out
worsted. For our experience has been, as they will admit,
that we have never had a revenue tariff, so called, but what turned
out in the end to have been concocted by men, however innocent
4.
they were, who were used as catspaws for those who wished to prey
upon the American people. And in the end their work has each time
left the government swindled, and the protectionists who procured
their aid the gainers at the expense of their fellow-citizens.
Compared with framing a strictly protective tariff, the job of
adjusting a revenue tariff—a tariff with “incidental protection”—is
one that angels ought not to attempt and other people ought to shun.
It involves the same reliance upon the statements of gentlemen
whose interest it is to deceive in order that they may thrive at other’s
expense, and whose willingness thus to thrive insures that they will
stickle at no means to do so. It involves the same inducements to
falsification, the same opportunities for bribery, the same exploitation
of corruption and the same result against the American people as
does a protective tariff—every time. In other words, it involves the
same moral infection which has been properly stated here to-night
to be the chief curse of the tariff.
That we have lost a large part of the prosperity that should
have gone to our people; that the great mass of our people are to-day
poorer in order to enrich those who, not by their deserts, but by
their affrontery, have thriven at their expense, is but a small, the
Smallest factor of the damage that has been done this country. Its
paramount curse, after all, is the extent to which, by exploiting tariff
taxation, we have built up every sort of graft by which to-day we are
cursed.
The scandals of the tariff have become such that, as no one can
gainsay, there is no protectionist, however high his repute, who is
not universally assumed, and generally with truth, to have either
procured, or connived at, or gladly and willingly to have thriven by
the political corruption which has been so eloquently described by
speaker after speaker here to-night. There is not a single important
item of the tariff, as every man here knows, that has not been born of
bribery, begotten of perjury. -
There is not any such number of protected manufacturers who
have any conscience in this matter as to make it otherwise than a
perfectly proper statement that, generally speaking, however sincere
may be their philanthropy in other directions, they falsify in
order to steal, and do do it as regularly as do their wives prevaricate
in order to smuggle. It has become “the rule of the game,” into which
game no one goes who is not entirely aware of the price that he must
pay in the degradation of his soul in order to coin money at the
expense of his fellow-men. -
Even if those objections did not count, how can a revenue tarif
be defended as a decent, as a proper method of taxation? You know,
Mr. Congressman, we all know, that in order to be a reliable support
for government, a revenue tarift must be levied upon the necessaries
of life—those things which are used by the mass of our people, and
the use of which cannot be dispensed with, no matter how hard times
are. Otherwise the government revenue from a revenue tariff is
uncertain and shrinking just when most needed.
Now, is it decent to support the government by taxing want, in-
5
stead of wealth P Take tariff taxation under those circumstances;
it stands vigilantly and pitilessly by the side of the cradle in every
Workingman’s home. As each babe is added to that family, it adds
to the proportion of taxes which the father of that babe has to pay.
At the same time, it sleeps while bond is added to bond in the strong
box and acres are added to acres outside. Do I understand, sir, that
the Democratic party stands for that system 2 If so, sir, it is time we
knew it.
Again, even as to a revenue tariff. What is its effect upon labor?
Take a ship coming in and landing at one of our docks, from Europe,
laden as most of them are with goods upon their middle decks and
labor in the steerage. Let the workingman go down to that dock
and attempt to buy any of those goods and he is met by a government
officer—paid by the government, but in the service of the protected
manufacturer—to forbid that workman from purchasing those goods,
or to fine him if he dares do it, to make him pay a higher price for
the necessaries of life.
Now, let the employer go down to that very dock and attempt to
hire cheap labor. Does any custom-house officer stop him 2 Not much.
His tariff was not made that way.
Talk about “American standards of living.” When you raise
prices, by that very fact you make it necessary for the workingman,
having a given amount of money to live on, that is to live on a lower
standard—every single time.
We are having good news from New England. We have just heard
the man who probably to-day has the best right to be considered
as representing New England’s progressive policy and New England’s
successful self-supporting manufacturers. He wants, as he explained
to you, free raw materials—in order that American labor may have
greater employment—which means higher wages—and that our
markets may be extended—which means more employment and higher
Wages yet.
We of the American Trade League are with the late Governor
of Massachusetts and with our manufacturers of whatever party
in their demands for free raw material that New England may prosper
thereby, as he has stated. But we are also, sir, with him in that cause
which he has not yet undertaken to lead—although, I trust,
from what we have heard to-night, he cannot refuse his leadership
when the time comes—and that is free trade in everything that every
manufacturer in New England makes; so that, with their free raw
materials, with their better-employed labor and with their wider
markets, we and the rest of the country may share the prosperity.
Our League entirely concurs with him in expressing their deter-
mination not to be blackmailed by Virginia; by Ohio, by Pennsyl-
vania; and we of New York, sir, and of the great South and of the
great West are determined not to be blackmailed by the woolen manu-
facturers, or the cotton manufacturers, or any other manufacturer of
New England. -
The Parliament last elected in Great Britain, I believe, sir, was
the first of late years in which protectionism—and they call it “tariff
6
reform * over there, sir—was an issue. They are getting the first fruits
very promptly. #
Some ten days since I saw this in a press dispatch : -
“Void on Account of Bribery. Action on Election of
“Member of the House of Commons for Worcester. London,
“May 25. After a prolonged investigation, the election of
“G. H. Williamson, Conseravtive and Tariff Reform (protec-
“tion, that means) Member of the House of Commons for
“Worcester, was this morning declared void by the Election
“Court on the ground of bribery by the candidate's Sup-
“ porters.”
The dispatch continues:
“The investigation of the Worcester election attracted a
“great deal of attention in Great Britain on account of the
“ prominence of Mr. Williamson, who is a director of a tin-
“ plate manufactory of Worcester, and who has been twice
“mayor of that city and twice sheriff of Worcestershire.”
Mr. Chairman, I doubt if the British Court of Elections knew of
the responsibility it was assuming in giving that sentence—in taking,
as it were, the protection or so-called “tariff reform * issue out of
politics. Because if it had looked a little further it would have
seen, and must have appreciated, that the only way in which
that issue can be canvassed for is by bribery; that the first method
that would occur to any one who wanted legislation by which he
might be made rich at somebody else’s expense would be to buy some-
body’s dirty vote in order to do it; and that no voters of the least
intelligence could have the slightest excuse for voting money out
of their pockets into his pockets unless they were paid for it before-
hand. That is the process here; we have seen it in every election.
I would like to know if my friend (Mr. Williams) thinks that
the Democrats of this country want to perpetuate a system of taxation
of the kind that is involved in a revenue tariff—taxing the poor
inordinately as compared to the rich for the support of the govern-
ment—or whether he has not sufficient confidence in their intelligence
to tell them what he really believes—which I believe is Free Trade.
It seems to me, sir, that instead of being discouraged by the
Outlook, we ought to be encouraged by it. Because, sir, the times
are different to-day from what they were thirty years ago, when a few
men like Professor Sumner were crying in the wilderness. At that
time our people did not understand the tariff question. It
was assumed that there were two sides to it. Even free traders
were not at that time, I believe, so far posted as not to be sure but
that some important items of our tariff schedule might have been
put there by some one from patriotic motives.
There is no such delusion as that now current in any part of the
country to-day—neither among Democrats nor Republicans. Not that
our people have become tariff experts, but that they have become
informed as to one schedule and another until they have become
acquainted also with our American protectionists. They do not care
for more information; they are laboring under no delusions; they
7
know that every item of our tariff has been put there by Somebody
who wanted to steal, through somebody whom he had bribed to put
it there; and they are ready, whenever the trust question and the
insurance question and the railroad question shall be less pressing
upon their attention, to take up this question. And they will take it
up, sir, not with the philosophical distinctions of gentlemen who
want the government to go into this business with a minimum
tariff and a maximum tariff, but from the standpoint of men who
know that they have been robbed and who do not propose to be stolen
from any more; who want free trade and Such a basis for taxation
as shall directly tax ability to Support government, instead of taxing
wage-earners—not for government, but for their own well-to-do neigh-
bors. They are ready for that, sir, and whenever that issue comes We
shall conquer; and until we make that issue we shall not deserve to
conquer.
When that fight comes we shall not merely windicate Freedom, the
grandest and most inspiring abstraction that was ever Suggested, but
we shall get Free Trade, which is the most important factor of free-
dom in the world as it is growing commercial to-day. And, what is
more, we will windicate our right to be Free Men, which is the most
important of all.
Only one word more, sir. The Chairman has called our attention to
the fact that this meeting is held somewhat in view of the fact that
the congressional elections are upon us. I suppose most of us here
are Democrats. It is always a pleasure, Sir, to decimate our enemies.
It is an earlier duty, Sir, to keep our own house clean; and if this
Club, if that part of the so-called Democratic party that is really
Democratic, has the courage of its convictions, it will see to it that
if this country is to be disgraced—if “protection * is to have repre-
sentatives in Congress—they shall be Republicans and not Democrats.
Let no Democratic candidate be named who is not pledged to Free
Trade—straight, uncompromising—for the benefit of the whole people.
And if, by fair means or foul means, a man is put up as a nominally
Democratic candidate who is a protectionist, or who is in favor of
a revenue tariff, See to it that he is beaten and a Republican sent
there in his stead—in order that, as the tide of public indignation
rises up behind the dam of legislative obstruction, and when that is
swept away there shall be a Democratic party, deserving and having
the confidence of the country, to which the people can turn, Sure that,
if it is given charge of the government, it will administer it in the
interests of the whole people. In short, let us abandon Our cause
or squarely take our stand upon it.
- *:::::::::ss.
H. z. *SIVERSIijºs,
º *- # 4. §
*. -- - APR 2l 1914. #
PARTY PROMISE
PARTY POLICY?
tº ‘e The Republican party declares unequivo-
cally for a revision of the tariff. . . .
the aim and purpose of the Republican
policy being . . . to preserve, without
excessive duties, that security against foreign
competition to which American manufact-
urers, farmers and producers are entitled to.”
—Republican Platform, Chicago, 1908.
* *s - º º º
§
º
º $º







PARTY PROMISE
OR
PARTY POLICY?
* President Taft's recent talk to Minnesota republicans, comes
s as a distinct shock to the people of Minnesota and of the ad-
§ joining states which hold similar opinions upon the tariff.
& Mr. Taft is regarded in the west as the best fitted man, men-
h tally and by training, that the party has produced for many years.
... His fundamental knowledge and long training in affairs have be-
3 gotten a public confidence in the west, that make his decisions
2 on most subjects practically final. He is technically and prac-
:
*
§ tically the leader of his party.
* The republicans in the west would, therefore, regard it al-
most a personal grief if the progress of events shall compel them
to differ from him on public policy.
The very worst that was expected in the West was the frank
Statement that existing conditions had not permitted a real revi-
sion of the tariff as promised in the party platform, but that
something better could be expected in the future.
On the contrary, the president states in set terms that it is the
best tariff bill the republican party has ever passed. His speech
hardly holds forth any shred of promise that the party is to
make a real revision of the tariff in favor of the consumer. In
fact, he states that the tariff should not be altered in the present
or the next congress. -
sº
He also gives a very strong intimation that adherence to the
principles of the present tariff law must hereafter be taken as
the test of party loyalty.
This statement is made in a commonwealth which sent its
entire delegation of two republican senators and nine republican
congressmen to congress, with a direct mandate that they were
to attempt the substantial reduction of the tariff in compliance
with the promise of the party platform.
The Minnesota delegation in congress represented the almost
universal opinion of the people of Minnesota without regard to
party. When these men went down in the last ditch in open op-
position to the present measure, they received the general Sup-
port of the press and people of the state.
Minnesota is a state with practically no poverty, no paupers,
and 95 per cent of its people can read and write. Composed
of a population almost wholly from Anglo-Saxon, Germanic and
Scandinavian stock, its people have been accustomed for many
years to consider with intelligence the fundamental questions of
state and national policies.
The final opinion of its people after long consideration, is
therefore worthy of respect. That the representatives of Min-
mesota and adjoining states were wrong, and that they should be
open to either rebuke or defeat is abhorrent to every feeling of
justice and fairness.
On the contrary, the people of Minnesota retain entire con-
fidence in these representatives, and will continue to give them
their support until much better reasons are advanced than any
that have appeared up to the present date.
THE TARIFF PROMISE.
To the plain man, the support of the present tariff as a test
of party loyalty seems incongruous and impossible.
The tariff plank of the party stated flatly that the tariff was
to be revised. There was never an intimation upon any plat-
2
form during the campaign that it was to be raised, or that it
was even to remain where it was.
In the past campaign, every prominent republican leader
stated specifically that the tariff was to be revised downward,
and that such revision was to be made upon the great list of
articles consumed by the plain people.
It was also stated that this time the tariff revision was to be
honest and real, and that the party pledge was to be carried out.
No large body of republican voters in Minnesota or the ad-
joining states either wished or asked for a radical reduction that
would impair the system of legitimate protection. They only
asked and voted for a reduction that would do something to
reduce the constantly increasing price of articles that make up
the cost of living among ordinary people.
They did vote for a revision that would reduce the price of
woolen and cotton clothing and food, and the dozens of things
upon which the wages of plain, ordinary people are expended in
supporting their families upon a fair stand of living.
This they were certainly promised by the president, and
by the party platform, and it is not known that anyone denies
this fact.
That they really got this, or anything faintly resembling it,
is not claimed either by the president or by the party leaders
who passed this bill.
From a republican congress, elected solely upon the issue of
downward revision, issues forth this tariff creature that is
neither fish, flesh nor fowl. -
It is a hodge-podge of disassociated and dissimilar fragments
apparently thrown together as the result of long-continued and
sinister trades upon the part of the Senate conference committee,
which contained no single member in favor of real revision.
It is neither open nor honest nor fair. It smells all over of
trades and barters and juggles and deceits. To call the ac-
ceptance of this tariff a party or a public duty is an affront to
CO111111011 SC11S62. -
In the senate conference committee of seven, five members
were from New England, and naturally in favor of high pro-
3
tection. The house committee was also of a similar character,
and it is difficult to observe that any honest supporter of the
consumer ever had a real opportunity to alter the character of
this bill. Eventually it was found impossible to pass this meas-
ure without democratic votes, and these were apparently se-
cured by concessions to selfish local interests in order to break
a real republican majority in favor of keeping the party prom-
ise.
As a matter of fact, when the Payne bill was being torn to
pieces in the senate, no attempt was made to conceal the fact
that open trades were being made to prevent a real revision
that would be of benefit to the actual consumer. -
These daily juggles to defeat the party promise were faith-
fully reported by the press, and apparently regarded as a matter
of rich humor in the east.
The west has a different definition of a jest.
THE TARIFF SCHEDULES.
Stripped of all subterfuge, the tariff as affecting the neces-
sities of life used by plain people has apparently remained the
same, or it has actually been advanced. The president states
that none but an expert can understand the tariff schedule. Dr.
Shaw of the Review of Reviews is an expert on this subject
and his views will be accepted as final by a large part of the
reading public in the west.
In the September number of his journal it is stated flatly
that the tariff on many necessities had not been reduced, but
has in fact been generally advanced. In many cases where ap-
parent reductions have been made, the bill is so artfully drawn
that it means an advance in many lines.
While cotton is produced as cheap or cheaper in the United
States than any country in the world, the duty appears to have
been raised from 5 per cent to 100 per cent. Before this raise
in duties, cotton mills made as high as 66 per cent a year, ac-
cording to the Review of Reviews.
No reduction has been made upon the wool tariff, although
4
everyone knows that this rate is extortionate and is a cruel
wrong to the common people of the country.
It is also noteworthy that the increase in cotton and the heavy
duties on wool is upon poor goods to be worn by poor people.
These people are busy ten hours a day in plants and mills, earn-
ing a livelihood for the support of their wives and children.
They neither read nor understand the tariff schedule, and it
would not help them if they did.
While the tariff has apparently been reduced on various raw
materials, such a reduction is practically of no value as long
as it does not permit the real competition of foreign material
from abroad. This reduction is likewise a reduction in appear-
ance, but not in fact.
It is difficult to note an instance where any great reduction
has been made upon necessities used by ordinary people, who
constitute a great portion of the population.
Why then, should it be a matter of amazement that the peo-
ple should be bitterly disappointed in this bill?
THE PRICE OF LIVING.
Real protection should permit a high standard of living, that
will create a people well nourished, and, therefore, fit to vote.
This last measure, on the contrary, cuts directly at the
root of the living standard.
The price of living has gone up from 20 per cent to 25
per cent in the last ten years, while wages remain practically
the same. Men's and boys' clothing, women's and children's
clothing, will remain where they were, or, perhaps, they will
go higher through the insiduous wording of this bill.
Even in the present period of prosperity, working people
are finding it difficult to make stationary wages meet the con-
tinued increase in the cost of living. *
Already the great middle classes of the country who draw
salaries or have Small means are suffering cruelly from the in-
crease in the cost of living that compels them to cut down the
5
standard of life, get cheaper homes and pay less rent. Rents
must also remain high in proportion to wages, as the cost of
lumber and nails and similar articles remain the same or goes
higher.
What, then, are to be the exact economic and industrial re-
sults of this measure ?
The manufacturer, already rich, adds to the accumulations
which he does not need and possibly leaves a great fortune to
undermine and destroy the children he leaves behind.
What of the millions of American mechanics and working
people who have kept the party in power, thinking they were
supporting the traditions of Lincoln and the elder Americans
who first builded the party upon the basis of strictly moral
issues?
These people earn from $2 to $4 a day, and on this they
support a wife and an average family of three children, who
are hereafter supposed to continue the life of the republic. The
wages of an ordinary working man do not average more than
$600 a year.
This is a Sum not large for many an American woman to
spend upon a single dress, and she may wear this dress but
O11CC.
When the working man gets around shortly to buy his shoddy
woolen clothes he is liable to find the same advanced; the poor
grade cotton clothing worn by his children will likewise see
the same advance. When his wife takes the weekly wage to
market to buy a dozen different household things, she will now
find that she must Scrimp and scheme and bargain to keep the
family whole.
Why? -
To preserve the Solidarity of a great party that has been be-
trayed in the house of its friends.
PROSPERITY AND THE PEOPLE.
We talk loudly of the crude and bald material prosperity
which is said to exist in the United States, and is currently
6
measured by the gigantic fortunes accumulated by the few.
This prosperity is neither morally nor mentally great in many
of its aspects. -
Every man who studies the conditions of his country today
knows that the conditions prevailing among dense foreign pop-
ulations in Pennsylvania, New England, and our large cities
are little or no better than they are abroad. He knows that
poverty and ignorance and the decay of morals in great sections
of our people are the prices we pay for shop-worn noblemen
that we buy abroad.
Five million immigrants have landed on our shores in the
past eight years, and it is an Open question whether they have
not been actually damaged in their contract with our political
and economic system.
Our people of wealth and intelligence are kind-hearted and
would be really patriotic if they had the time. Their lives and
leisure give them little opportunity to know or see anything
really important in connection with our social life.
Would it not be well for some of them to stop off a day in
a Pennsylvania mining town, or in a cotton city of New Eng-
land, and there observe the Social conditions that are rapidly
taking shape in this republic?
Would it not be well for some of them to realize the tre-
mendous immigration of recent years, and their own neglect of
government is changing the type and character of the people,
and will soon open the question whether we are to maintain
republican government in this land P
Would it not be well for some of them to realize that the
future of our type and government is still swinging in the bal-
ance, and that neither the future of their children nor of their
great possessions is yet Secure?
It were dull and pedantic to repeat the old truism, that no
government of the people is possible or secure unless it is found-
ed on fair dealing between the poor and rich. Nevertheless
this dull truth still prevails.
Does the fair flower of our American womanhood that have
enjoyed every advantage that wealth and leisure gives, never
7
stop to think their grandfathers worked in their shirtsleeves in
the woods and upon the rocky farms ?
Possibly they do not stop to think they are living in a repub-
lic, and that the real wealth of the nation is produced by the
working people of the land.
Do the honest and really capable young men of the same
class, who are dawdling along with their trifles of life, never
stop to reflect that they owe some public duties to their coun-
try, and that it is the men of intelligence the country has edu-
cated, who must do their part if the government or the people
are to survive?
Possibly they are too busy with more important things.
Do none of us stop to think we are all of the same yeoman
and peasant Stock, and the working man in the mills was a
companion of our grandfathers Some fifty years ago?
When we get rich, we all try to persuade ourselves we are
descended from counts or dukes. All of us know, that the
American people came from very plain persons in the middle
and lower classes. We ought to be pleased that we did not de-
scend from diseased noblemen or from great families that often
started behind a throne.
Once in a while, let us talk old Gothic English, just for
luck.
THE FARMER AND FAIR PROFITS.
The Winona speech calls attention to the fact that 50 per
cent of ordinary expenditures are for food, and therefore not
affected by the tariff. {
As a straight economic proposition, the cost of food must
depend on the cost of its production, and the cost of such pro-
duction must certainly rise with the increasing cost of every-
thing a farmer uses in production. High lumber and high ma-
terial and farm machinery and clothing must result in a higher
price of food products. If it costs more to raise wheat and
meat, it is axiomatic that such wheat and meat must be sold at
a higher price.
This is largely true in the United States, where the farming
class is wealthy, and can now hold its crops until they receive a
fair return upon investments.
Nevertheless, it is stated that the price of products is wholly
made by the surplus of our exports abroad.
If such be the case, that the operations of the tariff in no-
wise affect food products and does not raise the price of farm-
ers' products, why has this statement been made by campaign
orators on a thousand western stumps for thirty years?
Why the time-honored statement in every platform that the
tariff is a boon to the people who raised food P *
Why, indeed?
TARIFF MADE BY MANUFACTURERS.
It is also stated that tariff rates were so framed because
manufacturers stated that their business demanded these
rates to make fair profits. Attention is likewise called to the
tariff plank which provides for such fair profit.
The question naturally arises as to what constitutes a fair
profit that the people of the United States are required to
Day.
As a full partner in the national economic system, the west
would regard a fair profit as a normal return upon real money
invested.
It does not conceive it to be a duty of the national life to
guarantee a profit on particular industries that are overcapital-
ized from 200 to 300 per cent. On this basis, the increase of
the tariff would only be limited by the capacity of printing
presses to turn out Stocks and bonds. Af
As a concrete example, the west sees no reason why many
million of its working people should shiver in shoddy woolen
goods sold at exorbitant prices, to the end that over-protected
mills may pay dividends of 25 or 50 per cent. -
If it shall finally appear a fact that the change in economic
conditions no longer permits New England to produce without
9
entailing the exhaustion of the general public, some day inquiry
may arise as to the duty of the whole nation to support one
small portion at an economic sacrifice to the whole.
Stranger things have happened.
THE OLD NEW ENGLAND.
Time was when wistful dwellers upon the prairies and in
the forests of the west looked back to the old New England
home as the wellspring of all ethics, virtue and the moral law.
Coming almost exclusively from New England and New York,
the natural leaders of the west remembered with deep affection
the sturdy civilization that they had left behind.
For a generation they supported without rhyme or reason
New England men and New England measures, because they
Still had confidence in the traditions of the place and people.
This was a time long, long ago, when New England stood
for duty and frugal virtue and patriotism, and the best ideals
of the English race. At this time her council halls were filled
with statesmen and every country graveyard was dotted with
the recent graves of Americans who had given up their lives at
Gettysburg and the Wilderness.
The old order changes and the west no longer looks to New
England for instruction in the economic or moral law.
The sturdy yeomanry that once worked the rocky hillsides
are long since moved away or dead or degenerated into a less
worthy stock.
The old homestead where patriotism and honest daily labor
once crowned the brow of a pure and frugal national life is now
mouldered to the ground or occupied by people of foreign lands.
The sweet village with its good old population of English
stock that nestled in every valley, now swarms with people
drawn from every race that will give its labor for the least pos-
sible price in ready cash. -
The old colonial house still sits upon its hill, but the old
Puritan gentleman, the patriot, the deep lover of his land, he
is long since gone.
IO
His successor polishes his mind, or runs his yacht in bliss-
ful ignorance that the destinies of his race and people are now
being solved in labor and tribulation by the American people now
living in other portions of the land.
Such is the price New England has paid for her own com-
mercial gain.
MIN NESOTA REPUBLICANS NOT DISLOYAL.
The republicans of Minnesota are not disloyal to their party
or their party principles. Neither will they tolerate any such
assumption in their future political life. Minnesota has cast
a republican majority upon all national questions for nearly
fifty years. It has never cast a single democratic electoral vote.
In times of need, when states like Connecticut and New Jer-
sey have voted for free trade and democracy, Minnesota and
the adjoining States have helped to keep republican presidents
in the chair. -
Neither, as has been intimated, are the people of this state
Selfish or Self-seeking as against the interests of the sister states.
They believe in the principle of the protective system as long
as it is reasonable and it does not become a burden upon
the plain people. They are a part of the union, and they realize
that the real interests of the country are the same.
Naturally, they want their fair average share of any benefits
that may arise from a strictly national policy.
Nevertheless, they do not need a bribe, such as the alleged
protection of lumber or grain, in order to keep them faithful
to the general economic welfare of the union. As a matter of
fact, 95 per cent of the people of Minnesota and the adjoining
States want free lumber. Pine Stumpage is worth twice as much,
and plain lumber twice as much, as it was ten years ago. With
these raw materials doubled in value, in the hands of the
present holders, it hardly seems necessary to keep the tariff on
lumber as against the interests of 95 per cent of the people of
the state. *
11
Neither is the tariff on grain of any particular value in
comparison with the tariff burden that the people of Minne-
sota have borne willingly upon the manufactured products of
other states. As a matter of fact, there has been no time in
the history of the state when its people did not believe that
the people of the east got the best of the tariff argument. Nev-
ertheless, they have continued to support the tariff because they
thought it was of benefit incidentally to themselves, but much
more to the United States at large.
Minnesota is consistently opposed to the system of tariff
by which the plain people of the United States are groaning
under the increased cost of living, due to the various monopolies
that are largely unchecked by outside competition.
They do not want destructive foreign competition to destroy
legitimate production, but they do want fair competition that will
reduce prices to a level that is fair to the producer and con-
sumer alike.
MIN NESOTA NOT SELFISEH.
The states of the Mississippi valley are now growing so
rapidly in wealth that they can endure almost any unjust eco-
nomic system. As they have done in the past, they can continue
to give up yearly an unduly large tribute and still be prosperous.
The farmers of Minnesota and the adjoining states are rich
and comfortable. Their crops are large, and the price of all
their products are high. They do not object to the present
tariff tax from any selfish motive. It is rather the laboring and
salaried classes of the manufacturing cities and the east that are
gradually being ground to pieces by this system.
While it may seem strange to political statesmen in the
east, the people of the west object primarily to the present
tariff because they think it is morally wrong, an unjust burden
to themselves and a greater burden to millions of plain people
in other portions of the land that are less able to bear the
brunt of increasing prices while wages and salaries remain the
S3L1116.
12
They also object because they come from a thrifty stock
and they deplore billion-dollar congresses, and the wholesale
waste and extravagance of a government that has to spend the
enormous sums collected by an unjust tariff.
They observe that it costs $200,000,000 more a year to run
this government today than it did ten years ago with only a
slightly smaller population.
If there are any $200,000,000 of fluid profits lying around
amongst the people of the United States they believe in leaving
it with the people who earned it and not wasting it in the colos-
sal extravagance that must take place when all this ready money
is at hand to spend.
They object, furthermore, because they feel the future of
the republic is imperiled by the vast accumulation of unearned
wealth in the hands of a few who are unduly favored by this
unjust system. They object likewise to the vulgar extravagance
and the barbarous waste among the favored newly rich who are
setting an example of bad morals and bad living to all the peo-
ple of the land. -
The people of the west do not object because they think
that plain citizens are getting poorer, but they do object be-
cause they think that the average citizen is not getting his just
share of the great profits of industry to which his common
citizenship entitles him.
They do not object to the great fortunes that men of talent
and industry are building up within the law. They do object
to the fortunes built under a system that taxes the great mass
for the benefit of a few.
They do not object to the men that made these fortunes, as
they do to the lax and unjust laws by which it is possible to
tmake them. #
The west does not want free trade or such a low tariff as
will injure legitimate industries that now nourish or employ their
fellow citizens in any portion of the land. Our people must be
employed. -
They do want a reduction of the tariff where it is not neces-
sary, and where it only serves to increase the cost of living
among common men.
13
INSTINCT OF THE WEST.
Fundamentally the west objects to the present system, not
because it makes an unjust levy on themselves, but because its
people wish wealth to be distributed more evenly, that the great
general average of the people will be able to maintain a republic
based upon average intelligence and average wealth. -
This may be heresy, but it is a natural instinct of men of
Anglo-Saxon and Germanic blood who love the republic, and
in their rude and laborious labors in field and forest think much
of the future of their country and of their children yet to come.
Happily, they are not yet reduced to the material or moral
poverty of some older regions, where patriotism is confounded
with trades and barters and all manner of crafty deceits to be
practiced upon one’s fellows in other states.
Happily, they are not yet paralyzed by the dry rot of Over
culture which emasculates and makes cynical the more elegant
and gifted residents of some older states.
This is the thought and instinct of many million people who
now reside in the great valley of the continent. .
The next census will probably show that some sixty-five out
of nearly ninety million people in this country now reside west
and south of Pittsburg.
Many of these people are so dull and commonplace that
they still talk among themselves about the battle of Lexington.
In their night camps in forests and upon the plains, old men
who fought upon both sides in the civil war tell the younger
generation about the charge at Fredericksburg and the slaughter
in the Wilderness. -
They believe in the republic, and are still Americans who
think seriously of the future of the land. These people face
the future with enthusiasm and hope and are not afraid. Deep
in their minds they know that the future of the land is in a
great valley between the coasts. While they do not analyze,
they know that the economic and moral salvation of the coun-
try lies in the younger civilization where life is free and honest
and the people still believe.
14
They expect and hope to keep their social and moral life
clean and pure, that in some future day here will be the leaven to
purify the national life in time of crisis.
ECONOMIC VIEWS ARE PERMAN ENT.
The economic views of people in Minnesota and the adjoin-
ing States are fixed and determined in their attempt to secure
a tariff that is just and fair to all men in the United States.
In a republican state that has elected a great democratic
governor three times in succession, public opinion will not be
greatly shaken by appeals to the party allegiance, when it asks
the people to support a thing that is wrong.
For a time these states may be out-voted, but they will con-
tinue to support what they believe to be the moral and economic
right. as
No party discipline will drive them to support the economic
wrong.
The republicans of Minnesota have a deep regard and per-
Sonal affection for their president whom they helped to elect.
They believe in his sincerity and sound sense and efficient pa-
triotism. They will follow him almost anywhere, and will take
his suggestions as final upon almost any public question of the
day.
They are sorry that they do not agree with him as to the
nature of the present tariff law.
They do not expect, nor are they liable to change their
mind.
They do not expect to leave, nor will they be driven from
the body of the republican party.
—W. D. Washburn, Jr.,
Representative Forty-first Legislative District, Minnesota.
Minneapolis, Oct. 3, 1909.
15
| T 52.
Pizz.
T EH E T ALIEE, IET EN
Univ. Of Miotſ'
SE2EE CEI NOW 5 1909
OF
Al-
HON. CHAUNCEY M. DEPEW - -
IN THE
SENATE OF THE UNITED STATES
MONDAY, \l A Y 17. 1909
W.A.S.E.IIIN G-TON
86.192—8383
1909
S P E E CIH
OF
H. O. N. C. H. A UN CE. Y. M. D EP E.W.
The Senate, as in Committee of the Whole, having under consideration
the bill (H. R. 1438) to provide revenue, equalize duties, and encourage
the industries of the United States, and for other purposes—
Mr. DEPEW Said : -
Mr. PRESIDENT: I doubt if it is possible to shed much new light
upon the question of the tariff. It has been the subject of legis-
lation for centuries. It has been the cause of many great Wars
and internal revolutions. The present discussion has Wandered
far afield. The experience which Senators have had with the
Wants of their constituents and the requirements of their States
has developed the almost insurmountable difficulties which are
in the way of the preparation of a fair and just bill. New York
“is the largest manufacturing State, and there is hardly an indus-
try in the 2,000 items in this measure which does not directly or
indirectly affect our citizens.
One result of this discussion has been to rescue the fame and
rehabilitate the reputation Of the lamented General E[ancock.
Little things, Single remarks, make and mar the careers of
statesmen. General Scott's request that he might delay his let-
ter accepting the nomination for the Presidency until he could
take a hasty plate Of Soup closed his campaign. General Eſan-
cock's answer to the Committee Of notification that the tariff
was a local issue in his State Of Pennsylvania laughed him out
Of the CanvaSS. In the cloud of generals who were famous in
the civil war he is nearly forgotten. I remember as if it was
yesterday the telegram which General McClellan sent to his
Wife after one of the great battles of the civil War, “ Hancock
Was Superb to-day.” All that is forgotten by the crowding events
Of advancing time. But now it is brought home to every Senator
and to the whole country that General Hancock uttered a preg-
86.192—8383 3
4.
nant truth, and his fame is likely to be embalmed in his phrase
“The tariff is a local issue '' everywhere. It is breaking party
lines in States where its productive energies are producing pros-
perity. The favorite method now of attacking the protective
principle is to proclaim loyalty to the principle of protection
and Oppose its application.
The wool schedule gave to the Senate and the Country one of
the most entertaining addresses ever delivered upon this fiodſ:
by the senior Senator from Iowa [Mr. DoDLIVERJ. We are apt
to think that wool is American as a political question. But
Wool created and then destroyed Florence and Flanders; im-
poverished and then enriched Great Britain. Without going
into a general tariff discussion, the history of wool is illuminat-
ing. In the middle ages the people of civilized countries were
clothed in woolen garments. Wool and its manufactured prod-
ucts were the commerce of the world. England grew the WOOl
and Sold it to Flălnders, Where it was turned into the finished
product. England did not have the machinery nor could she
procure from the Papal states alum, a substance absolutely
necessary in those days for the finishing of cloth. But in the
reign of Elizabeth alum was found in sufficient qualmtities in
England, and then began the tariff legislation which we have
inherited. England placed an export duty upon wool which
made it impossible for continental nations to compete with her
manufactures. She placed a tariff duty which shut them out
Of her market.
When Lancashire, the greatest Cotton-manufacturing center
in the World, demonstrated in a Small way that it could
make Cotton goods, Great Britain prohibited the importation of
Cotton goods from India into England. Then the great English
inventors, Arkwright and Eſargreaves, gave to their country
the perfected spinning jenny, and Great Britain controlled the
Cotton market Of the World. Her OWI) markets were Closed to
the foreigner, and the English statesmen saw that this little
island, with its growing population which had come from manu-
factures, must find foreign trade. The greatest of English States-
men, Pitt, saw that the philosophers whose ideas created the
French Revolution were controlling the policy of France. Know-
8619.2—8383
5
ing that Great Britain, because of her cheap coal and because of
her monopoly of inventions, could make woolen and cotton
goods cheaper than France, he proposed to the idealists that
there should be free trade, . The proposition was hailed by the
disciples of Rousseau and Quesnay as an approach to the mil-
lennium. In a few years every factory in France was closed.
There have been many causes assigned for the French Revolu-
tion. Undoubtedly tyranny and bad government had much to
do with it, but the French Revolution began in Paris, which
Was the manufacturing center of France, and then spread to
the other manufacturing cities. It was the starving unemployed
who had been driven from all occupations by the genius of the
British statesman and the folly of their philosophers which
more than anything else precipitated and prolonged the French
Revolution. Then came the struggle by the Jacobins to Sup-
port the people from the plunder of the nobility and the cutting
off of their heads; then the plunder of the rich business men in
every branch ; then the plunder of the farmers, because they
would not accept the Worthless paper money.
A million lives were sacrificed by the French terror, of whom
Only 2,000 belonged to the noble class and the rest to the pro-
ductives who still had a little property in their farms or in their
Small occupations and against whom was directed the rage of
the unemployed who had got possession of the Government.
Then, when the revolutionists had guillotined each other, Napo-
leon came to the front. His first idea was that France could be
Supported by the plunder of the Continent, but that great origi-
nal genius, when in Supreme power, soon saw his mistake and
built a tariff wall not only around France, but around the Con-
tinent, and the reviving industries of his country provided the
Imeans for his Wars and recruited, clothed, and fed his alºmies.
Two men have had dominating influence upon American indus-
tries, both men of extraordinary ability, and one a command-
ing genius Of all time. They were Alexander Hamilton and
Robert J. Walker. Hamilton was one of those marvelous intel-
ligences which can be accounted for by no rule, who have no
predecessors or successors. We know little or nothing of him
before he landed in New York at 17. He asked Princeton
8619.2—-8383 wº
6
if she would graduate him if he could do the four years in two,
and that sturdy old president, Doctor Witherspoon, said: “No ;
the curriculum must be gone through.” IXings College, now Co-
lumbia, in New York, accepted the proposition. Before he was
20 he had so stated in a pamphlet the American argument that
its authorship was ascribed to the greatest minds of the revolu-
tion. Eſe proposed to Morris, the banker of the revolution, a
scheme for refunding the continental currency which would
have Saved the national credit, and Which Was Substantially
adopted during and after the civil War. Eſe organized the cus-
toms and the internal revenue of the country upon a basis which
continues with few modifications to this day. He found our
country purely agricultural. He knew that Great Britain had
prohibited manufacturing in the colonies and the entrance into
the market of products of any other lands except the mother
country. Efe grasped as no other man of his time did the bound-
less natural resources of the United States. He saw that if we
remained purely agricultural We must be a country of limited
populations, widely distributed, and so dependent upon the rest
of the World that we never Could become a prosperous, powerful,
and productive people. He was the first to recognize the fact
that there is no limit of growth to a country of Sufficient area.
if it possesses both the raw material and productive power.
His report upon manufactures made as Secretary of the Treas-
ury to the Congress is the foundation upon which we have
builded the greatest industrial nation the World has ever known.
IRobert J. Walker lived and was educated in a part of Our
country whose almost Sole product was cotton. Its people
manufactured nothing. They even relied upon outside terri-
tory for their food and clothes. The practical question with
him was the cheapest products in clothing, food, machinery,
sund all the necessities of life for a people engaged in one form
of agriculture. But it was more than that which created
Robert J. Walker. If We read the speeches Of the Southern
statesmen. Of his period, We find in them a wealth of learning
in the classics of English literature and a complete absorption
in the theories of Adam Smith. Many of them were educated
in the best Schools abroad. They had leisure for wide reading
86.192—S383
7
and refined culture at home, and they had no touch with Or
understanding of those thriving industrial communities which
Were inviting immigration, building cities, Constructing railroads,
and planting factories beside the water powers. He declared
that the tariff should be levied for the purposes of revenue only,
and he committed his party to the principle.
The ideas of Hamilton and of Walker have been Struggling
ever since for the conquest of the World. Hamilton is master
of every State in our Union. No matter what plea may be en-
tered as to the purpose for which protection is desired, the
Senator who asks for it acknowledges at once the Supremacy
of Hamilton. Hamilton's policy has repaired the ravages of
war. It has created in the States which were-and some still
are—dominated by the Walker view new industries, which are
developing local and national Wealth and Supporting large popu-
lations. ' The ideas of Hamilton have CrOSSed the Oceans; they
have captured every country in the World except Great Britain ;
they have become the controlling policy in every one of the
British Colonies. The fight to the death is now going on in the
last citadel of Adam Smith, Richard Cobden, and Robert J.
Walker—the British Isles. It is a COIntest which I believe must
result there, as everywhere else, in the triumph of the ideas of
Alexander Hamilton.
Great Britain’s control Of the Wool and Cotton industries now
is shared with protective countries whose markets she formerly
monopolized. She is fighting With them a losing battle in
Asiatic markets, where all the World competes. Her great rival,
Germany, with as good machinery and cheaper labor and an
equal command of the raw materials, is entering the English
market under that well-known economic rule by Which manu-
facturers of every country, in order to keep their mills in opera-
tion and their men employed, sell the surplus practically at
cost in Other Countries. This process is filling the English mar-
ket and driving one industry after another to the Wall. Great
Britain is grasping slowly the economic fact that anything pro-
duced in another country and sold within her territory puts
Out of employment and reduces to public charity exactly the
86.192—83S3
S
number of men in England Wllo are employed in producing this
article in Germany.
The unemployed wandering idly about the streets looking
for any stray job, however poor it may be, to satisfy the pangs
of hunger, see in the shop windows everywhere the things upon
which they at one time worked and could make a good living for
themselves and families, marked “Made in Germany.” It is
stated that there are to-day in Great Britain 7,000,000 of un-
employed. How to care for them or furnish them support is
the most anxious problem of the British statesmen. John Mor-
ley has stated in one of his speeches that at one time in the
Course of their lives 45 per cent of the working men of Great
Britain who have reached 60 years of age have been in the
pauper class.
Great Britain made a tentative experiment recently in pro-
tection, though disavowing any such intention. A law was
passed affecting patents. Under it the goods manufactured
under a foreign patent must, to enjoy the advantages of the
patent, be made in Great Britain, otherwise the patent was
open for use to British subjects. Before that was in opera-
tion two years a hundred and thirty millions of continental
capital had been invested in England and tens of thousands of
the unemployed found again Temunerative labor and wages.
If England to-day had a tariff which Would equalize the cost
of production with Germany, Belgium, France, and Holland,
including fair Wages to her people, she might again become not
the Workshop Of the World, as She Once was, but very much
nearer to it than she is to-day. Anyway, she could hold her own.
The eloquent and learned speeches which have been delivered
here have developed a new kind of protection. The new school
believe in the principle, but oppose its application. Our Southern
friends reject the principle of protection, but believe in its appli-
tation to their own products. I believe if a committee were
appointed, composed exclusively of the Senators on Our side Wºllo
object most violently to this bill, that they would have more
difficulty in agreeing with One another than it is understood Our
Democratic Members had when they caucused the measure.
86.192—83S3
9
Human nature is fallible and so is human testimony. When a
committee whose ability, experience, industry, and integrity are
cordially admitted on all sides, after months of examinations
which have included the testimony of both sides, the manufac-
turer and the importer, and have had constantly at their sessions
and to aid in the review of this testimony the trained experts of
the Treasury Department, the General Appraiser’s Office, and the
custom-house, make a report, I hesitate to place my judgment
against theirs, when theirs is unanimous, upon Subjects On
which superficial inquiry and a limited amount of information
Only are possible to any Senator. I have found that I can do
better after hearing the statements of both sides to ascertain
if I have gained any information which was not available to
the committee in arriving at their conclusions. I know it is
possible in the many subdivisions of the different schedules for
SOme article to have had its relations to the markets SO changed
by invention or discovery that a new light has come Inot visible
before even to the parties most interested; but I have found in
all Such cases on a fair presentation of the matter if there was
anything new the committee had an open mind for a review.
There is Scarcely an article in these sehedules upon which I
have not received conflicting testimony from the parties inter-
ested, upon which it would be possible to base an argument on
either Side. But it would be an enormous and an impossible
task for any Senator to constitute himself a court of appeal
and claim that he had greater sources of information upon
Which to base a judgment than it was possible during all these
months for our committee to obtain. They had the benefit of
the 13 volumes of testimony taken by the Ways and Means
Committee of the EIouse as well as their own.
The Senators who have criticised so severely the Finance
COImmittee are especially severe upon its chairman, the dis-
tinguished Senator from Rhode Island. Some of these Senators
Complain that the Senate is not informed. Their argument
amounts to this: That if the Senate would sit as a committee
Of the whole month after month and listen to and question
the witnesses and sift the testimony, which work has been so
faithfully, ably, and laboriously done by the Finance Commit-
86.192—8383
10
tee, they would understand the bill. Such a system would
produce chaos from which eternity could not evolve Order.
Some Senators claim that they can not vote intelligently upon
these 2,000 schedules unless the chairman of the committee, the
Senator from Rhode Island, will furnish a detailed statement
with each item of the cost in the country or countries where
it was produced and the cost in the United States. Would
these critical Senators read the volumes which contained such
information after a couple of years had been spent in gathering
it? On the contrary, I fear that, still claiming they had no
access to information upon which they could intelligently vote,
they would demand of this most amiable, as well as most
capable, of chairmen, who has so superbly done the work which
We elected him to do for us, the data upon which he had fur-
nished these figures and then denounce the data as both in-
sufficient and incorrect. -
Nothing so amazes me as the frequent statement of certain
Senators that in some way they are deprived of their rights on
this floor by the chairman of the Finance Committee, and in-
sisting they will have them, as if anybody stood in their way.
There are 91 Members of this body ; we are all equals. We
have practically no rules. Any Senator can talk when he likes,
on any subject he chooses, and as long as he is able. We select
our own committees in our own way by vote, and the Committee
on Finance, which is so much criticised, received on its appoint-
ment the unanimous vote of the Senate. The intelligence of
the entire Senate is never So Seriously questioned as When such
statements are made.
The Senator from Minnesota [Mr. CAPF), in a very eloquent
and attractive address, feared that the Republican party was
rushing rapidly and blindly upon the rocks because the pledge
Of the party and the expectation of the people were that there
should be a general revision downward. In my judgment the
pledge of the party and the expectation of the people are that
we should do exact justice in this matter, upon every Schedule
in the bill, and upon every one of the 2,000 items which are
affected. I believe that the practice Of protection, which has
made our country what it is and Our people What they are, has
86.192—8383
11.
as firm a hold upon the electorate as ever. I believe that it is
thoroughly understood and assented to by the masses that we
should so arrange our tariff policy as to constantly enlarge the
area of production and employment within our own bordiers,
and do it by imposing a duty which will equalize the cost of
production, with due regard to the higher wage which We ex-
pect our artisans to have over those which prevail in COuntries
in Competition with us.
We have lost sight in this debate of changes in the cost of
production; that from 1860 to 1909 wages have more than
doubled; that they have advanced 25 per cent since the Dingley
bill was enacted; that the hours of labor have been reduced
from a third to a quarter; and that, inasmuch as in every
production labor is from 60 to 90 per cent of the cost, We have
thus increased our cost from 25 to 50 per cent. We have lost
sight of the fact that this beneficent but almost revolutionary
movement for the benefit of the Workers has not advanced in
anything like the same proportion in European countries. w
Our labor leaders recognize that one of the acute difficulties
Which meet them is that the immigrants who come here are glad
at first to accept from a quarter to a third less in Wages than
We are accustomed to. It is only the labor unions and the con-
tract-labor laws against immigration which prevent us being
swamped in this respect. Congestion of population always re- -
Sults in lower wages and longer hours. When the line is closely
drawn between employment and starvation, because there are
two, or three, or four, or ten hungry for a single job, there is a
loss of independence and individuality, and the doctrine of self-
preservation COImpels COnditions which are abblorrent to U.S. The
first principle of that American Citizenship upon which must rest
our future, as has rested our past, is adequate compensation for
the American Standard Of living and the comforts of the Ameri-
can home. Immigrants, when they first come here and receive
our Wages on a Scale to which they have never been accustomed,
are apt to live as they did in their own country, with the re-
Sult that they save 60 per cent, and in a few years are able to
return to the land of their birth as capitalists. That process
is going on Constantly with us to the extent of hundreds of
86.192—8383 -
12
thousands a year. It is not healthy for our body politic to have
that kind Of citizenship.
The telegraph, the cable, the flying steamers, have made prac-
tically all the world one. No country to-day of the highly or-
ganized industrial nations has any superiority Over another in
its machinery. The inventions of one land are quickly copied
and duplicated in another. The German chemists, who are the
most expert and patient Workers in the World, have produced
some 400 different articles out of coal tar. They have enor-
mously enlarged the pharmacopoeia of all nations. The formulas
are soon understood and other nations can use them. We have
the raw material. To the extent to which we can duplicate we
lmave that much more employment among ourselves. To the
eXtent that We purchase On the Other side We lose just that
amount of employment in our own country. If all the world
Was alike, if the cost of production was the same everywhere,
if Wages and hours were the same in all nations and among all
races, then we could have the same conditions that exist between
OUIT OWn States. -
The city of Dundee in Scotland had a very large industry in
the making from jute of cotton bagging. It was a monopoly.
They made the bagging for the cotton not only for the United
States, but for all the other countries. Our manufacturers
found that with a sufficient tariff this bagging could be suc-
- cessfully produced in this country. It led to the creation in
different States of some 300 mills with the employment of
many thousands of people. The tariff did not destroy the
Dundee factories, because it was not high enough to prevent
Competition, and the Dundee factories still had. Other fields than
the United States for their operation. But mills were estab-
lished in India where labor was 30 cents a day, against 75 in
Dundee and $1.50 to $2 in the United States. Great Britain
being a free-trade country the Dundee millers were bankrupted,
and a large population added to the already increasing numbers
of the unemployed. Now we are met with a demand to wipe
out our own mills and throw out of employment our own people
in Order to let in this cheap Indian production, with which it is
frnpossible to Compete except by tariff protection. Who WOuld
86.192—8383
13
be benefited ? There are no shrewder manufacturers and mer-
chants in the World than the English, and they control these
factories and are already in our market. When they have a
monopoly the Cost to the Cotton farmer Will be raised far be-
yond what he pays to-day and he will be utterly helpless.
You may say he could escape that by again renewing the tariff,
but it takes hundreds of thousands of dollars to Organize a mill,
and capital after such an experience would never enter upon the
uncertain sea of hysterical legislation.
Eighty per cent of the petroleum in this country is produced
from Wells owned by 500,000 farmers Who are independent pro-
ducers. It is purchased by the Standard Oil Company, which is
a refining corporation and not an oil-producing one, and by a
few independent refiners Who are still in business. There has
been discovered in Mexico, on the coast, an exhaustless field
of petroleum. It can be piped to the tank steamers of the
Standard Oil Company on the Gulf at 20 per cent of the cost
which carries the Oil from the Oklahoma field, Or New York, Or
Illinois, or West Virginia. The bogy of the Standard Oil Com-
pany creates a sentiment dangerous to the politician against
giving any protection to the American farmer who produces
oil for fear it might help the Standard Oil Company, When it
is as plain as two and two make four that the Standard Oil
Company would be the sole beneficiary at the expense of the
Allmerican independent producers Of the free trade in Oil be-
tween Mexico and the United States.
I might cite a hundred such instances where the changing
conditions of production and Of cost, as governed by Wages, by
hours, and by invention, make the rule of a revision downward
simply the adoption of practically free trade.
What has been accomplished by protection is happily in-
stanced in our State of New York annong many industries.
IHats have built up a thriving City at Yonkers and are building
other industrial communities in other parts of the State. The
protection for men's gloves has created a community of 30,000
people and reduced the price from tWO almd One-half to three
dollars, as it was When England had the monopoly, to a dollar
and a dollar and a half. Now, the great English manufacturers
86.192—S383
14.
sº
are moving to Gloversville. An equivalent protection for women's
gloves would lead in two years to the employment of 50,000
mon to the destruction of the foreign monopoly and Would give
to Our OWI) people an article much cheaper and better than they
have now. The same results have followed in a thriving CODOl-
munity of 80,000 in the finishing of lumber at Tonawanda and
corresponding results at Ogdensburg and Other places. I might
enlarge this list almost indefinitely. -
No country can show figures like these: That since Repub-
lican protection became a fixed policy the wealth of the United
States has increased six times, our foreign trade three times,
the wages in our factories three times, our railroad mileage six
times, Our foreign commerce three times, and the value of our
manufactured products Seven times, Our exports from 1897 to
1909 300 per cent. Except for these conditions we never could
have had our railroads carrying populations to the farms and
productive possibilities carrying the factory near to the raw
material; we never could have had manufacturing centers
which brought the markets to the farmer's door; we never
could have had the consumers, whose numbers and whose pros.
perity give the farmer his opportunity, the manufacturer his
opportunity, the merchant his opportunity, the railroad its oppor.
tunity, and the Steamboat and the canal their opportunities.
There never was greater nonsense than this attempt to estab-
lish irreconcilable antagonism between producers and consum-
ers. They are constantly interchangeable. Our country buys
one-third of the productions of the earth. Why? Because we
have the money. Why the money? Because we have the em-
ployment, and With the employment the wages, and with the
wages the acquisition of the habits which make the luxuries of
to-day the necessities of to-morrow.
My friend, the Senior Senator from Iowa, in one of the ablest
and most eloquent addresses delivered in this Chamber, has at-
tacked the wool and cotton schedules. That Speech has been
Very Widely quoted, more, I think, than any which has been
made here. A can of dynamite intelligently eXploded will get
more headlines and editorial comment than all the railroad
trains of the Country carrying the products of the farmer to the
86.192—S3S3 -
15
factories and the market, and of the markets of the country
in distributing the results of their Sales back to the farms and
the factories. Automatic prosperity is like the air we breathe-
it has to be questioned to interest anybody.
A close examination of the picturesque presentation of my
distinguished friend reduces his criticism more to the manner
of administration than to the Subject-matter of the law. No
tariff act could be prepared covering, as we are attempting to
do now, the whole field of protective legislation without having
paragraphs which are highly technical. wool at One time Was
used only for Clothes; now the subdivisions in Which it is used
are almost infinite. The difficulty of compressing within the
law language which will not permit the shrewd and dishonest
to escape its protection is exceedingly difficult.
The moment a tariff law is enacted tariff lawyers, importers,
and experts are at work to find out how its provisions may be
evaded by some change in manufacture or some device in the
mixture of other articles which will enable what was intended
to be placed under the highest duty to come in under the lowest.
That is the most subtle and ingenious method of smuggling. No
One can have read over even cursorily this testimony or listened
to the people from his own State who are engaged in these manu-
factures without learning to what extent this species of Smug-
gling is carried on. It is right here that the customs expert
must be both able and honest. A deficiency in this respect is
the opportunity of the importer and the injury of the domestic
manufacturer and home labor.
The appraiser, the customs officer, the treasury official on a
salary of five or six thousand dollars a year is thus pitted
against the $50,000 lawyer and the $25,000 expert in the service
of the importer. It is a magnificent tribute to the civil Service
of our Government that it has officers to do this work so ably
and honestly. There are men in these departments who have
ability sufficient to be at the head of great business enterprises
or to be Cabinet officers who are proud to serve their country
in these minor positions with an intelligence and devotion de-
Serving of the highest Commendation.
86.192—8383
16
There is nothing which gives me more pain than to have
my idols broken. I wish that those professors of destructive
criticism who have murdered William Tell and Arnold Winkel-
reid and almost destroyed our faith in George Washington
and Napoleon Bonaparte had never lived. The Bacon Cryp-
tograph which demonstrates that there never was a Shakes-
peare does not appeal to me. Much of the argument made
by professing protectionists has been to throw from their
pedestals the statues of William Allison, William McKinley,
and Governor Dingley. These three eminent creators and
advocates of tariff bills are charged to have known little
about what they were doing. No one charges them with dis-
honesty, either in thought or purpose, but the general impression
left by the criticisms upon them is that their countrymen were
never more mistaken than in the estimate which they have of
them that they were the most distinguished as well as the best
informed of protectionists. We must believe, if we are to credit
the mistakes and failures which they are alleged to have made
in 1892 and 1897, that no statesman ever occupied permanent
positions in either House who were so easily fooled. My faith
in them is unimpaired.
There is nothing new under the Sun, and the oldest of free-
trade Cries is the one of revision downward. In all the speeches
that have been made here, so far as I can recall them, the only
Open and direct attack upon the protective system as a policy
Or a System has been from the distinguished Senator from
Georgia [Mr. BACON], but attacks have, nevertheless, been ef-
fective and deadly, and have produced their impression upon
the COuntry because they came from Our Own household, from
those who proclaim their undying faith in the principle, but
claim that in practice it leads to nearly all the disastrous results
Which are charged against it by its open enemies. Congressman
Morrison presented the only true rule if we are to adopt a re-
Vision downward. He proposed a horizontal reduction in the
whole Schedule of 25 per cent. To have accepted his plea would
have been to admit his contention that there should be no such
thing as a duty upon any article which should equalize the cost
86.192—S383
17
of production between this and other countries with due regard
to the Wages Of American labor.
I was a delegate to the national convention at Chicago, and
mingled as much as anyone with the representatives Of the
Republican party. I Was One Of the Vice-presidents. At din-
nel's given to favorite SOnS I fresCOed and covered with flowers
of rhetoric their candidates, and while admiring friends prophe-
sied his success, we all, except him, knew that he was in the
class of those “ mentioned.” I Spoke at public gatherings and
in the halls of hotels for the candidate I wanted, and he, hap-
pily, as Vice-President, is the presiding officer of the Senate. I
Was up as late as the youngest and as early as the oldest mem-
ber of the convention. The absorbing question was not revision
of the tariff, but the hope that Roosevelt would accept and the
fear that he might take a renomination. The subject upper-
most in all minds was not the tariff, but whether anarchy or
sanity would prevail in the resolutions. When sanity won,
there were the same progressive predictions of disasters, which
were answered at the election by the largest of our popular
majorities for Taft and the platform. There was no discussion
of, public or private, and no committals to, public or private, any
method of the revision of the tariff. There was an understand-
ing, in which all Republicans are agreed, that the constantly
changing conditions of production and invention and in cost in
different countries not Only justified but demanded an exam-
ination of the tariff Schdules Which have been in existence for
ten years, with a view to doing equal and exact justice to
every one of these items within protective principles which
have been inserted in the Republican platform ever since the
formation of the party. -
There has been brought to my attention by COInstituents of
mine changes which have taken place within the last few years
which entirely alter the relations of the American manufacturer
to particular articles. There are many industries which have
grown up in this country since the Dingley tariff, in which
are invested many millions of dollars and employment given to
tens of thousands of people. I refer now Specially to indus-
tries where the raw material has come from India, South Almer-
86.192—S3S3 2
18.
ica, or the East. The change has come about by the English
Starting factories in the Countries. Where the Italy material is:
produced and where labor is nominal compared with ours. It
is easy to. Iname Several industries Which Were prosperous at One
time which, alre now struggling to live because the manufactured:
article comes into this country either under Ino duty, because it
was not produced anywhere else at One time, or under a duty
which is now wholly inadequate because the English manu-
facturer in India, South America, and the East has the raw
material at his door; has his wages at one-quarter those paid
in the United States, and much less when you consider the
length of houl:S; with wholm transportation is a negligible quan-
tity; alld Who, unless the revision is upward instead of down-
ward, will command the American market, drive our manufac-
turers. Out of business, and then, with his monopoly, make his
own prices to us, his helpless victims. Undoubtedly there are
other articles where the perfection of American machinery,
the command. Of the raw material, the opportunities for trans-
portation, and the elements of cost, including higher wages,
justify a reduction to a point where the tariff shall not be pro-
hibitive. Competition and not prohibition is the real object of
the principle for which we are Gontending.
The DeWSpapel'S tell us that France is on the eye. Of a revolu-
tion alld that it Originates, as always, in Paris. The remark
was Once made by a distinguished Observel: that, to maintain
peace and Order, Paris had to be shot over about once every
thirty years. I do not know that there is any truth in this.
broad, generalization, because broad generalizations are seldom
true, but it is true, and that has been our history, that it re-
quires a lesson in modified free trade to brilâg our people to a
full realization of its effects. The lambs in their gambols
frisked us fifteen years ago into a wool Schedule which reduced
the flocks from useful producers of national Wealth to expensive
Olºnalments on the plains and on the hillsides. The lambs of the
preselât day have forgotten their experience, and it may require
11-cent wool to smash, as it did twelve years ago, the rainbows
almál élreanas Of the college idealists and the political theorist.
86.192—S383
19
It has been charged here that the United States Steel Corpo-
ration made last year $9 a ton profit in excess of any legitimate
return to which they were entitled. As the duty on their prod-
uct was $7, if that statement is true, it is evident, after taking
the entire duty off, they would still have made $2 more than a
legitimate return upon their investment. There must be some
error in the calculation which would justify the remark quoted
by my eloquent friend from Iowa, that the chief practical use
of statistics was to keep the other fellow from lying to you.
Out of the Carlyle generalization has grOWI) an American One .
that figures will not lie unless a liar makes the figures. No
one charges and no One believes that there has been an inten-
tional misrepresentation of the figures which have been pre-
sented by any Senator on any of the Schedules in these debates,
but if the profits of the United States Steel Corporation had
been SO preposterous, then the independent companies which
are as Well situated, Without any Water in their capital, With
the latest machinery and the best of management, WOuld have
been able to make large money.
Even if it is true that the United States Steel Corporation made
$9 in excess of any fair and legitimate return, even if it is true
that the United States Steel Corporation can make iron $2 a ton
'cheaper than the independent companies, there would still have
been for the independent companies $7 of profit in addition to a
legitimate return upon their capital. As a matter of fact, they
got no return at all.
The question has been raised why we should keep a tariff
upon steel to protect independent producers, who have 50 per cent
of the business and employment, at the expense of the American
public. Why not, in order to reach the United States Steel
Corporation, take the tariff all off and let the independent
companies be absorbed and the Whole iron and Steel .business
Of the country placed in One great monopoly? No one would
dare argue Or lll:ge that, because the Sufferers Would be the
consumers On the One Side and the Wage-earners OIn the Other,
With no possibility of relief in sight. Then Why does not the
United States Steel Corporation, having the power, as it ap-
parently has, to produce more cheaply, Crush its independent
86.192—S3S3
20
rivals 2 The American business man above all Other quali-
ties has good sense. With equal opportunities he fears no
rivals. With too great Opportunities he fears public Opinion
and legislation. To Crush out the independent Steel Compa-
nies it would be necessary for the United States Steel Cor-
poration to forego dividends upon its common and preferred
stock and carry on its business on a scale of meager profits
for a number of years, while by dividing and leaving the mar-
ket Open to fair and reasonable con:petition, with the inde-
pendent companies controlling One-half of the Output and the
business, it is enabled to earn profits which keep its Works
up to the standard, which give value to its bonds and its pre-
ferred Stock, and Which now and then permit a return upon
the common. If it had a monopoly and the American market
Was thrown Open to competition, the laws of trade would lead
to an understanding with those gigantic trusts which control
the markets of Great Britain and of the Continent, especially
Germany, to whose tyranny and Operations the lamp post would
not be an effective remedy. You can hang a man, not a cor-
poration, You can hang a man upon a basis which would bring
about the terrors of the French Revolution and the disruption
of society, but the United States Steel Corporation is owned
by 100,000 stockholders, of whom 27,500 are workers in the
Imines, the mills, and the furnaces, and on the railroads, and
the steamboats Of the Corporation.
My eloquent friend from Georgia, in llis brilliant defense of
the South, claimed that the prosperity which has created a new
South Would have Colme without any protective tariff, and that
the protection which, in our judgment, has made the new South,
has Created a class who live by placing tax burdens upon their
neighbors who owe them nothing and receive no benefits what-
eyer from their existence. Now let uS See. At the close Of the
War the South, as he says, Was purely agricultural, and all its
property destroyed but land, and, as the Senator from Massa-
chusetts has so ably demonstrated, it was that which presented
Such a frightful handicap during the civil War upon as gallant,
brave, and resourceful a people as ever existed.
86.192—8383
21
Soon after the civil war protection enabled capitalists to take
advantage in the South of the principle that where the raw ma-
terial and the manufactory are side by Side there is prosperity
for both. Now, see this remarkable result: The manufactured
products of the South in 1880 were four hundred and fifty
millions; in 1900 one billion four hundred and fifty millions; in
1908 $1,908,000,000. In View of these figures, where is the claim
that the South is still an agricultural country and dependent
entirely upon agriculture for its living? There is not a person,
I believe, interested in the manufacturing industries of the
South, who intelligently understands them, who would a SSent
to-day to the repeal of the tariff upon cotton products and iron
products because protection is an oppression upon their farming
neighbors. -
Now, my friend the Senator from Georgia gave a very illumi-
nating exposition, as he always does, the Other day upon Con-
ditions in the South in reference to the principle of protection.
He is the only real, honest free trader who has spoken here,
and I love his COurage.
Mr. BACON. I will accept a part of it, but not the other.
Mr. DEPEW. The other means, I think, that there are others.
Mr. BACON. No, I am very much obliged to the Senator
for connecting my name with the very honorable epithet of
lmonest, but I am not such a doctrinaire as to be a free trader.
I believe in a very liberal tariff, but I do not believe in one for
the protection of any particular business at the expense of
everybody else.
Mr. DEPEW. That means that you are in favor of a tariff
for revenue only 7 -
Mr. BACON. The Senator has expressed it with absolute
aCCull'acy.
Mr. DEPEW. And that is free trade? -
Mr. BACON. No ; it is not. It has no relation to free trade.
They are as far awide as the poles.
Mr. DEPEW. The relationship is so near that it would take
a genealogist to describe the difference.
Now, in that admirable speech of his he defends the South.
The South needs no defense. In the North to-day, wherever
86.192—8383
you may find the northern man of to-day or the northern
Woman of to-day, there is nothing but fraternal feeling; and,
Imore than that, admiration for the courage and the sacrifice of
the Soutlu during the civil War for their ideas, under conditions
which to any other people than ours would have been absolutely
hopeless, -
As the Senator says, the South was handicapped so that she
could not Imake her arms, she could not clothe her people, she
Could not do any of the things necessary for her, except as she
got them from the outside. -
Mr. BACON. Mr. President, the honorable Senator will par-
doh me, but I Said no Such thing.
Mr. DEPEW. Substantially.
Mr. BACON. I did not mean to even imply any such thing.
On the contrary, I said that the resources were ample, but that
the odds were 5 to 1 against the South, and that the resources
there were in the Course of a mercileSS and bitter War abso-
lutely destroyed,
Mr. DEPEW. My memory is at fault. That was the state-
ment of the Senator from Massachusetts. Now we have come
to the point I Wished to make just now. All her industries
were destroyed, all ber property of a personal kind was de-
stroyed, ller houses were burned, her Stock was gone, and she
bāſūl the bare land to start anew On.
Now, accepting that, suppose there had been no protection,
Would capitalists have been found in the South for industry,
especially for the cotton and iron industry?
Mr. BACON. What is the Senator's question ?
Mr. DEPEW. Suppose there had been no protection upon
cotton and iron as protection, would capitalists have been
found in the South or elsewhere for the Cotton and iron
industry -
Mr. BACON. Mr. President, if the Senator will permit me
to reply, there certainly llas been no protection as to the pro-
duction Of Cotton. -
Mr. DEPEW. I mean the manufacture of Cotton.
Mr. BACON. And cotton has not been produced—
Mr. DEPEW. I mean the manufacture of cotton and iron.
S6192—S383
23
Mr. BACON. Well, Mr. President, the manufacture of cotton
and iron in the South has grown up after the prosperity had
been restored there, but their agricultural products, far from
having any assistance from the protective tariff, bore an onerous
and grievous burden all the time that they were thus restoring
prosperity. The manufactures of the South have been the
result of the Wealth which has been dug out Of the ground by
the agriculturists of the South, and without any aid either
from the protective tariff or, generally speaking, from any other
Source Outside of their own energy and their own perseverance
and labor.
Mr. DEPEW. The manufactures Of the South in 1880 Welle
$450,000,000; in 1900, $1,450,000,000; and in 1908, $2,000,000,000,
in round numbers.
Mr. BACON. And, Mr. President, all that magnificent growth
and development is the surplus profit which has been piled up
by the Southern people in the prosecution of their agricultural
interests at a time when they have borne a most tremendous
tax to the manufacturing producer under the protective tariff,
When they themselves were receiving no reciprocal benefits
from it.
Mr. DEPEW. Now, if that view of the Senator is correct,
and if his view is correct that no capital has come in from out-
Side Sources, and these manufacturing developments have been
wholly by the profits of agriculture in the South, then the
profits of agriculture in the South must be beyond anything
ever known in agricultural production and in surplus in-
come anywhere in the World. For instance, from 1865 to 18S0,
when the South is acknowledged to have had no personal prop-
erty, there was $250,000,000 capital put into manufactures.
Mr. BACON. Mr. President, what is $250,000,000 to a section
that makes $800,000,000 worth of cotton and its by-products a
year? Of course, when I speak of the agricultural industry,
mercantile and other kindred industries grow up with it, and
there are reciprocal benefits between those who produce the
cotton and those who furnish other things upon which the men
Who produce the Cotton must live.
86.192—8383 -
24.
As I have said, it has been the result of the agricultural in-
Clustry, and, Of course, other industries have accompanied it,
but they have been the industries of our own people. If the
Senator will figure a little, and not despise figures, as he indi-
cated just now he would be prone to do, he will find that the
Cotton crop of the South has Inot only enriched the South and
that Out of its profits have grown these immense industries of
other kinds, manufacturing included, but he will find if he will
examine the balance sheets that but for that cotton and but for
that agricultural profit Which has been made in spite Of the
protective tariff and not through any aid of it, the balance of
trade would have been frequently against the people of the
United States.
Mr. President, the cotton crop sends out of this country some-
thing like five hundred million dollars a year which is the
equivalent of gold, and it brings back into this country either
actual gold Or keeps gold from going out of the country by
furnishing bills of lading, which stand for gold.
Mr. ALDRICH. Will the Senator permit me to ask him a
question ?
Mr. BACON. With pleasure,
Mr. ALDRICH. What is it that makes the marketing of that
great cotton crop of the South possible?
Mr. BACON. The WOI’ld’s demand for it.
Mr. ALDRICH. It is the industrial prosperity of the world,
and the industrial prosperity of the United States is the One
important and controlling factor in that prosperity.
Mr. BACON. Mr. President, the prosperity of the United
States is not the factor Which makes the demand of the World
for Cotton.
Mr. ALDRICEI. If you will look at the statistics showing the
Consumption Of Cotton in the United States, you will find that
We are the great and important factor in the consumption of the
Cotton of the South.
Mr. BACON. Between two-thirds and three-fourths of the
cotton of the South is exported for the consumption of the
World—of the Whole World.
86192—8383
25
Mr. ALDRICH. Yes; but $73,000,000 of that comes back to
the United States in the form of manufactured goods, every
dollar’s worth of which should be produced in the Southern
States.
Mr. BACON. Oh, Well, what may be done is no matter, but
what is $73,000,000 compared with this $500,000,000 that comes
back in gold for the raw product? If I am not intruding on the
Senator from New York, I will say that of course I do not
underrate the importance of manufacturing. I am proud of
the manufactures of the South. The three States, North Caro-
lina, South Carolina, and Georgia, manufacture, I will not say
the most of, but much the larger portion of the cotton that is
manufactured in the South, and my State is close up to the
Other two, South Carolina being in the lead and North Carolina
following, and Georgia being behind them. In general manu-
facturing, the money product of Georgia leads the others. But,
Mr. President, the manufacturing industry of the South has been
the product and the result of the agricultural prosperity of
the South, and it is not due to the protective tariff.
Mr. ALDRICH. Mr. President, one other question. Where
would the price of cotton be to-day if you should lose the
American market, the market Of the producers of the United
States, of the men Who are employed in the mills and upon
the farms of this country? Does the Senator think the cotton
growing in the South would be prosperous if it were to depend
entirely upon the foreign market?
Mr. BACON. For What?
Mr. ALDRICEI. For purchasers.
Mr. SMITH of South Carolina. Let me ask one question.
Will the chairman of the Filmance Committee State where the
price of cotton is fixed ?
Mr. ALDRICH. The price Of cotton is fixed in the markets
of the World and it is fixed by the law of supply and demand.
Of that demand the United States furnishes by far the most im-
portant portion.
Mr. BACON. Mr. President, if there was not a bale of Cotton
spun and Woven in the United States there would still be the
demand for it and there would be the same price of cotton.
86.192—8383
26
There has got to be a certain amount Of manufactured Cotton.
If it were not manufactured in this country, it would be manu-
factured in another. I am not speaking about the question
Whether it is to our advantage to have any manufactured here.
I am Speaking of the question Whether the manufacture of cot-
ton here increases the price of the staple of the raw cotton.
The World requires more than 13,000,000 bales of cotton to
clothe the people of the World in garments that are made Out
Of Cotton.
I Will not trespass further on the time of the Senator from
New York. It is unjust.
Mr. DEPEW. Mr. President, to continue One moment. As I
said, from 1865 to 1880 the South got $250,000,000 of capital in
manufactures, from 1880 to 1890 she found $650,000,000, from
1890 to 1900 she found $1,150,000,000, and from 1900 to 1908,
$2,100,000,000. It Would make the farmers of the World stand
up and listen if told that that $2,100,000,000 came from the
surplus profits of agriculture in the South, by which in that
brief period people Who had no money and no perSOnal property
to begin with could give to manufactures such fabulous capital.
Mr. GALLINGER. And, Mr. President—
The WICE-PRESIDENT. Will the Senator from New York
yield to the Senator from New Hampshire?
Mr. DEPEW. Certainly.
Mr. GALLINGER. If we did not have a tariff On the finished
product of cotton, and foreign countries were Supplying us with
COtton goods, as they did in the early days, What would become
of the $2,100,000,000 now invested in cotton manufactures in
the South 2 -
Mr. DEPEW, I believe that if the protective principle was
taken Out Of Our legislation the Cotton industries Of the South
WOuld disappear.
Mr. GALLINGER. Of course they would.
Mr. DEPEW. And with that would come a paralysis of
all industries of the South. I believe that if this protective
principle was taken Out Of legislation, instead, as the Senator
from Georgia believes, the agriculturists contributing from
their surplus for the support of other people, they could do
86.192—8383
27
nothing for them, and the iron and coal industries of West
Virginia and of Alabama and of Kentucky and of Tennessee
Would be destroyed.
Mr. BACON. If the Senator will pardon me, I wish to make
a statement, in order that What I have said may not be misun-
derstood. When I speak of the manufacturing industries of
the South being solely the representative of the profit upon the
agricultural industry of the South, of eourse I do not mean
that absolutely the clear profit made is the only money which
has been invested in those industries. Of course the people
of the South have utilized their land and other property, which
bas resulted from this agricultural prosperity as a basis for
credit to secure money which they have invested in manufac-
turing enterprises. Money has been borrowed, but borrowing
money by our own people upon satisfactory security is a very
different thing from money being sent in by others for invest-
Imelnt. -
Mr. DEPEW. Repeal the protection upon cotton and you
wipe out the manufacturers in North Carolina, South Carolina,
and Georgia. Repeal the protection upon iron and the phenom-
enal progress and development Of Alabama, TenneSSee, and
West Virginia will cease. I do not wish to differ with my
friend from Georgia, but it is hard for me to understand, if his
statement is correct, that the South found its own capital for
these mantifacturing elaterprises, where a purely agricultural
people, who had no personal property in 1865, got two hundred
and fifty millions of capital in 1880, six hundred and fifty mil-
lions in 1890, one billion one hundred and fifty millions in 1900,
and two billions One hulhdred millions in 190S and that Inone of it
Was contributed from outside sources. The profits of Cotton
Imust be beyond precedent.
My friends from Florida, I think, state as fairly as any of
the Senators On the IDQllaOCratic side the Democratic position,
which is, that they wish the idea of protection to be entirely
eliminated from the schedules and that the tariff should be
based upon the Walker doctrine of only sufficient revenue to
yield the sum required for earrying on the Government. Upon
that basis the jūhior Senator from Florida made a most elo-
86.192—8383
28
quent appeal on behalf of a revenue upon pineapples, not for
protection, but purely for revenue. Under the schedule pro-
posed by Florida, the duty upon pineapples Will be raised to
128 per cent. The distinguished Senator, in the course of his
eloquent remarks, said the nerves of the human anatomy were
gathered at the base of the spine, and an injury to the base
Of the spine attacking the whole nervous system led to the
paralysis of the entire body. In the anatomy of our country,
with the head in Maine, the base of the spine, as he believes, is
ITlorida. Then, a failure to put 128 per cent, not for protection,
but for revenue, upon pineapples would lead to national paraly-
sis. We will take care of pineapples, but not on a revenue basis.
|Under the practice of protection, the national nervous System
will be unimpaired. -
New York is the largest manufacturing State and has the
greatest variety in the product of her mills and her factories.
I have been in receipt of at least a hundred letters a day for
months and have had at least a thousand. Of my COInstituentS
here upon these questions. They have been the manufacturers
and the elmployees, men and Women, in the factories, and the
farmers and the people of the localities in which these manu-
facturing industries are located. There is almost unanimity
of sentiment that they are all consumers as well as all pro-
duCerS.
The 30,000,000 people who are in gainful pursuits, eliminating
those Who are single, and giving an average family to those
who are married, make up nearly the entire population of the
|United States. In their living as well as in their prosperity
they are absolutely dependent upon each other. None of them
can live by himself and no occupation can exist by itself. It is
the interdependence of the industries of our States which con-
stitutes the strength of the American people and the Wealth
of the American Union. I was asked by Mr. McKinley in 1896
to make campaign speeches through the wheat and corn belts
of the West. I found the farmers everywhere looking to free
Silver or any other panacea for relief from their COndition.
Wheat was 60 cents and corn 15 cents a bushel. Upon that they
could not meet the interest upon their mortgages and they had
86.192—8383
29
difficulty in paying their taxes and there was no market for
their horses and Cattle. Why Was there this condition among
the farmers? We had a larger population in 1896 than we had
in 1890 when they were prosperous. It was because the ex-
periment of modified free trade had closed the factories and
turned 3,000,000 Wage-earners in possession of jobs to 3,000,000
Out of a job and Out of money. In other words, the farmer had
lost his market because the consumer had lost his job.
We have had since 1897 phenomenal prosperity, employment,
and Wages, the farmers now getting a dollar and twenty-five
cents a bushel for wheat and sixty cents for corn, and there is
an open market for their stock. The farmers have paid off
their mortgages, they have large surplus in the banks, and they
are enjoying a prosperity such as has never been known by
any agricultural people in the World and Inever known by Our
farmers before. It is because protection has created the market,
has created the money maker, has created the money Spender,
and has demonstrated the interdependence between the farm and
the factory and between the producer and the consumer. The
rise in the cost of living is not in rents, clothes, boots and shoes,
Or railroad travel, but it is in food. To suppose that under these
conditions the farmers of the country believe that under this
principle they are burdened alld Oppressed in Order to Support
their fellow-COuntrymen who are engaged in Other pursuits
and who, by being elngaged in these remunerative pursuits, are
their consumers and customers, is absurd.
I have admired the Senate all my life. The giants of the
early period—the great triumvirate, Webster, Clay, and Cal-
houn—Created the Sentiment that this is the most august a SSelm-
bly in the World. But their speeches, Wonderful in their liter-
ature, covering exhaustively a wide range of Subjects, very plati-
tudinous and lengthy, would not command a Senate of to-day.
They are devoid of humor, and humor is necessary for a modern
statesman. The thoughtful and thoroughly prepared speeches
delivered during this Session are worthy the best efforts of the
greatest reputation of the Senate and more interesting.
An income tax has been urged by the Senators from Texas
[Mr. BAILEY], Iowa [Mr. CUMMINs], and Idaho [Mr. BoRAH].
86.192—8383
30
It is advocated with great ability and a great array of prece-
dents is cited to support their contention, and the answer of
the Senator from Utah [Mr. SUTEIERLAND], who has just taken
his seat, has been most able and conclusive.
The Whole question rests upon these Words of the Consti-
tution :
Direct taxes are to be laid in such a manner that each State shall bear
a proportion of the Whole tax equal to its proportion of the whole
population.
In rendering the opinion of the court in the Pollock case,
Chief Justice Tuller summed up his conclusions as follows:
Our conclusions may therefore be summed up as follows:
First. We adhere to the opinion already announced that taxes on real
estate, being indisputably direct taxes, taxes on the rents or income of
real estate, are equally direct taxes.
Second. We are of opinion that taxes on personal property or on the
income of personal property are likewise direct taxes.
Third. The tax imposed by sections 27 to 37, inclusive, of the act
of 1894, so far as it falls on the income or real estate and of personal
property, being a direct tax within the meaning of the Constitution, and
therefore unconstitutional and void because not apportioned according
to representation, all those sections, constituting one entire Scheme of
taxation, are necessarily invalid.
The object and aim then Of these long Speeches Which are
as able as any ever delivered at any time in this body are to
have the Senate reverse the Supreme Court. It is better when
a decision of the court of last resort is against the judgment of
counsel to present to the public what the counsel would have
said if he had been a judge than to adopt the remedy which
Judge Grover, of our New York court of appeals, Said was the
only one left for the defeated attorneys and that Was to go
down to the tavern and curse the court. One Senator wishes
distinctly to challenge the Supreme Court With the idea that
the argument and decision in the Pollock case Will be reversed. .
Another Senator wishes to have it introduced as a principle in
our political economy, even if the tariff is to be reduced in order
that there may not be an excess of income Over expenditures.
Unless, as in war times, there is an absolute necessity for an
income tax, it is the most direct possible attack upon the pro-
tective system. The only way in which the Surplus revenues it
WOuld produce, and which are not now needed, could be taken
eare of, would be either a horizontal reduction of the tariff to
S6192—8383
31
bring the revenues down to the expenditures or else to enter
upon a bacchanakian Saturnalia. Of extravagance.
No One has been able to refute the conclusions of the Final Ice
Committee that the bill under discussion will yield several
millions in excess Of eXpenditures. It is claimed that the
income tax will produce between sixty and eighty millions of
dollars annually. This would create a dangerous surplus and
impose a burden for no other purpose than to establish a
theory. A theory which will cost the taxpayers of the country,
and, in the analysis of distribution, all the people, $80,000,000
which the Government does not need and for which it has no
use, is the most expensive educational propaganda, ever ex-
ploited. It has been suggested by its advocates that the tariff
could be reduced to meet the excess caused by the income tax,
but a reduction would lead to larger importations and greater
revenues and at the Same time take Our American market from
Our Own Workers and give it to their foreign competitors. On
the other hand, if a prohibitory tariff Was adopted to decrease
customs revenues, that would defeat the Republican doctrine of
competition With protection and create monopolies.
There is one point which strikes me in the question as to whether
the fathers in forming the Constitution intended that the clause
providing that direct taxes should be apportioned among the
States according to population referred Only to revenue from
land and not income from perSonal property. The Constitution
Was a compromise between the large and populous and the
Small and sparsely populated States. The Small States de-
manded that in Some Way they should be protected. The de-
Vice to protect them was that, regardless of their population,
each State should have in the Senate practically two ambas-
sadors with equal vote and equal power. There was as great
disparity then as there is Flow between the States of large
population and those of Smaller population. The taxing power
glnd its destructive possibilities were thoroughly understood,
and the great States of New York, Pennsylvania, Virginia, and
Georgia never intended that they should be outvoted and made
to bear undille burélenS because of the votes in the Senate. of
the Smaller States. There are 15 States with 30 Senators in
86.192—8383
32
this body whose aggregate population differs only a few thousand
from that of the single State Of New York With two Senators.
New York has one-seventh of the property of the country. It
has one-twelfth of the population. Yet, under an income tax,
it would pay 33 per cent of the burdens of the Government. It
is absurd to suppose that with the States rights views that ex-
isted among the statesmen of the formative period and in the
constitutional convention they ever intended that any system
Should prevail Which Would distribute SO unequally the burdens
Of the Government almong the Various States.
There is another view which strikes me very forcibly and
which has not been presented. The time has come to draw
the line between the Sources Of revenue for the Federal Govern-
ment and those which shall be left with the States. The
Federal Government has unlimited Opportunities for revenue
through the customs and by internal-revenue taxation Of al-
most limitless varieties and by other methods. The States
must deal directly with their people. I was talking a few days
Since With the EIOn. Edwin A. Merritt, Chairman of the com-
mittee on Ways and means of the lower house of the New York
legislature, who expressed alarm at the inheritance and income
taxes being absorbed by the ITederal Government. The expenses
of the States, with the public improvements which have become
necessary by the extraordinary development of the last quarter
Of a century, are increasing in geometric ratio.
When I was chairman of the committee On Ways and means
in the lower bouse of the New York legislature, forty-six years
ago, a tax levy of $8,000,000 would have led to a political revo-
lution. The tax levy this year is thirty-seven millions, and it
has increased from twenty-two to thirty-Seven within the last
decade. There was levied in the State Of New York in 1907
by direct taxes—that is, city, village, county, and town—$180,-
942,341.27, and by indirect tax, $32,339,707.49, making a total
of direct and indirect taxes of $213,282,048.76. A direct tax
for State purposes has been abolished in Our State. The State
government is carried on by indirect taxation. This came be-
'cause of the enormous burdens of local taxation, almounting to
$181,000,000 a year. Our indirect taxation Comes from taxes On
8619.2—83S3
33
corporations, organization of corporations, inheritances, trans-
fers of Stock, traffic in liquor, mortgages, and racing associa-
tions, according to the following table:
Tax on corporations $8,581, 223. 44
Tax on organizations of corporations 391, 423. 18
Tax on inheritance 5,435, 394. 97
Tax on transfer of Stock 5, 575, 986. 64
Tax on traffic in liquor 9, 697, 504. 24
Tax on mortgages 2, 442, 249. 73
Tax On racing associations z 215, 925. 29
Total 32, 339, 707. 49
It is evident from this that, with the budget five millions
Imore than the amount raised from these sources last year, the
State must soon find other sources of revenue. Several States
have already adopted an income tax. No One would advocate
that there should be double taxation by the General Govern-
ment and by the States, for the burden would be intolerable.
It Seems to me, therefore, that it is a fair claim on behalf of
the States that this direct contact with their citizens by inherit-
ance and income taxes should be left to their administration.
My Colleague, Sellator ROOT, clearly and ably answered the
Question the Other day as to Whether the property owners bore
a substantial part of the burdens of the Government by proving
What they paid and its percentage in the country as a whole.
This New York tax levy, I think, is a close and up-to-date
illustration of the same point from our own State. I know from
personal experience with the estates for which I am counsel
that real estate located in the best parts of New York City
pay to-day double the taxes whicl, they did eight years ago
and without any increase in rents. The effect of this is that
the income from real estate in New York is nearer 3 than 4
per Cent. •
The taxes on railroads in the State of New York are first
upon their real estate, at full value, in the Several towns, then
a franchise tax, then a tax upon capital stock, then a tax upon
bonded debt, grOSS earnings, and dividends. In the Case of the
New York railroads Which pay dividends, this announts to over
15 per cent of their net income. Of course this is an assessment
upon the income of the stockholders to that amount.
86192—8383—3
34
The income and expenditures of the Government can be cal-
culated for a series of years to come with almost mathematical
certainty. I have heard no criticism which successfully con-
troverts the conclusions of the Ways and Means Committee of
the House and the Finance Committee of the Senate. Includ-
ing pensions, 55 per cent Of Our total expenditure is on account
of War. Expenditures are not likely to increase as fast as
revenues, and there will necessarily come in the course of
nature, now that forty-four years have passed since the ClOSe
Of the civil war, an annual decrease in pension appropriations.
The civil expenditures are entirely in administrative control.
All European nations are burdened with gigantic national
debts. These debts are the inberitances of great and little Wars.
Our national debt has been so reduced since the civil war that it
is a negligible quantity compared with our resources. We should
enlarge the national debt, Inot for War but for the most benefi-
cent purposes of peace, if we are to enter upon a proper policy.
We have begun On the Tight COurse in the Panama Canal by
borrowing the money for its construction. It is proper that
posterity should bear their proportion of a burden of which
they are to be the principal beneficiaries. If we enter upon,
as We will in the future, an intelligent and thoroughly prepared
Scheme Of inland waterways, that also should be done by the
issue of long-time bonds, for posterity again will be the benefi-
Ciaries and Ought to bear their share Of the burden.
We are all in receipt of letters and resolutions of commercial
bodies in reference to the creation of a permanent tariff com-
mission. The Senator from Indiana [Mr. BEVERIDGE] and the
Senator from Nevada [Mr. NEWLANDS] have ably and elo-
quently presented the affirmative of that proposition. They base
their argument largely upon the success of the Interstate Com-
merce Commission, but there is no analogy between the duties
performed by and the obligations which rest on the Interstate
Commerce Commission and those which Would devolve On a per-
manent tariff body. It is the nature of a commission to seek to
enlarge its powers and to exploit its beneficence. A permanent
tariff commission, with a permanent lobby representing the
2,000 items in the tariff bill and backed by the influence of the
86.192—8383
35
Senators, and Members from the States. Where these particular
industries are located, would keep alive what the country most
deprecates and most fears—a perpetual tariff disturbance. PaSS
some law quickly and adjourn is what the country wants.
I believe in the Scheme Outlined by Our Committee on Finance
Of Creating from the experts Of the Government, Who are famil-
iar with every plase of this question and in constant touch. With
its administration, a body within the existing departments which
can inform the President, Congress, and the Secretary of the
Treasury Of the inequalities as they arise in the practical appli-
cation of tariff duties, so that without agitation, without an
eternal tariff War and a perpetual tariff lobby, with all that
Dmeans in the disturbance Of busineSS, an effective and InoiseleSS
machinery would be automatically solving problems as they
arise, Such a COmmission would meet the criticisms upon the
annbiguity Of the law and the mistakes in its administration,
which were so ably presented in the Specch. Of the Senior Sen-
atOr from IOWa.
I noticed in the papers of this morning that William J. Bryan
and Governor Johnson, Of Minnesota, deplored yesterday the
situation of the Republican party. They said that if this tariff
bill as suggested either by the House or Senate committee be-
came a law it Would lead inevitably to the election of a Demo-
cratic House of Representatives two years from now and the
Senate and the Presidency to follow four years from now. The
tears which they shed should have been Caught after the man-
Inel. Of the Pompeians, in a glass bottle, and preserved in the
archives of the Smithsonian Institution. I am SOrry for the
progressive brethren of our own household who are lamenting
With great earnestness the impending ruin which they are SO
fearful will follow if they fail to have their way. I say to our
distinguished Democratic sympathizers with Hamlet to the
ghost of his father, “Rest, rest, perturbed spirit.”
Mr. President, the Country wants speedy action upon this Sub-
ject. In all the phenomenal times of prosperity of the past
none of them equal the present in its Opportunities and its
promise. Large contracts for important construction are held
86.192—S383
36
up, the stocks of the merchants are depleted, the storehouses
Of the manufacturers are empty, the Supplies on hand have
been used up, and Ino Inew production undertaken for fear of
the result of the action Of this Congress.
The impatient horses attached to the car of progress and
prosperity are held in with difficulty, because of their im-
patience to enter upon the Marathon race of production and
development. The fate Of parties in power depends upon the
effect of their action on the country. If because of this bill,
When perfected, becoming a law We enter, as I believe We Will,
upon another decade surpassing in its beneficent results that
which began with the Dingley tariff, popularity will follow
prosperity and the party can confidently rely upon the judgment
Of the people.
O
\. univ. of miorºſ
\T 52. NOW 10 1909
Wºzz. - •
The Protective Tariff and
Railway Regulation
Tły rº.
SAMUEL O'BUNN \{\"\"
Reprinted from an article in
The World Today Magazine, August, 1909
.ºst
gº
}
THE PROTECTIVE TARIFF AND
RAILWAY REGULATION
Tły
SAMUEL O. DUN N
~~
Tariff revision and regulation of railways are, perhaps,
the two most important public questions now being consid-
ered in this country. Their simultaneous consideration calls
attention to marked differences between the way the national
government deals. with manufacturers and railways. Manu-
factures and rail transportation are, except agriculture, the
twó greatest industries of the United States. The nation
is committed equally to regulation of railways and to pro-
tection of manufactures; and the merits of neither policy,
per se, will be entered into here. But a statement of the
way these two policies affect and react upon the two great
industries mentioned will, it is believed, present aspects of
both policies that will be new to many readers.
The principal purpose of the protective tariff is to safe-
guard the manufacturer against foreign competition in the
home market. It restricts or prevents the sale here of
many foreign articles. Those who favor protection say that
this is a good thing because it enables the domestic manu-
facturer to get large profits, pay high wages and make some
things that he otherwise could not. *º-
The railway's plant is analogous to the manufacturer's
factory. It “makes” transportation. If it is expedient to
protect our manufacturers by imposing import tariffs, why
would it not be expedient to protect our railways by im-
posing tariffs (if this were constitutional) on goods that
are shipped into or out of the country via foreign railways
or steamship lines when they could be shipped via United
States railways? Whether such a policy would be expedient
or not, it never has been seriously proposed. The railways
of the United States have constantly to meet the full force
of the competition of the Canadian and Mexican railways
and of the steamships of those and other countries. The
Canadian Pacific competes with them for traffic from Pitts-
burg and other eastern points to the Pacific coast and the
Orient. The Grand Trunk competes with them for traffic
between Chicago and New York. The Tehuantepec Rail-
way competes with them for traffic between New York and
San Francisco. There is a constant struggle between
American railways and the British steamships for freight,
which may move from Pittsburg and Cleveland to Asia and
Australia either eastward by ocean or westward by rail to
the Pacific coast, and thence by steamship. -
*The government not only does nothing to protect the
railways against competition, but it is spending many mil-
lions of dollars building the Panama Canal, which will stim-
ulate competition against them; and it is preparing to spend
other millions in developing inland waterways further to
stimulate competition against them. The development of
waterways unquestionably is expedient and needful. But
it will be recalled that when Kansas appropriated money
to start a twine factory to compete with the manufacturers
of binding twine, and when it later appropriated money to
start oil refineries to cpmpete with the Standard Oil Com-
... pany, that state was warned that it was embarking on the
uncertain seas of Socialism. -
--"
Protection enables the domestic manufacturer to charge
higher prices for his products than he could get if he had to
meet foreign competition. The large majority in this coun-
try who favor protection think the high prices it causes are
advantageous not only to the manufacturer, but also to his
employes and the public. The railway’s charges for haul-
ing freight and passengers are its prices. If high prices
for shoes or steel rails. are a good thing, why would not
high prices for hauling shoes or steel rails be a good thing?
The manufacturers of the United States in 1905 paid out 21
per cent of their gross receipts in wages and salaries. The
railways in the same year paid out 40 per cent of their
gross receipts in wages and salaries. If high prices for
concerns that pay out 21 per cent of their gross receipts are
a good thing for wage-earners, why would not high rates
for concerns that pay out 40 per cent of their gross receipts
in wages and salaries be a good thing for wage-earners?
While, however, the national government, by the protec-
tive tariff, helps the manufacturers to get high prices, it
- [3]
has adopted a policy of railway regulation that tends to make
and keep railway rates low. The Hepburn amendment to
the Interstate Commerce Law empowers the Interstate Com-
merce Commission when it finds a railway rate unreason-
able, to substitute for it a “reasonable maximum rate.” It
does not give the Commission power to fix a reasonable
minimum rate. The assumption seemingly was that the
Commission would find rates that were too high, but never
would find any that were too low. Consequently, when
the Commission finds the relation between two rates or
Schedules of rates unfairly discriminatory, it must correct
...the unfairness by lowering the higher rate or schedule.
It may be said that as the railways are left free to raise
any rates that the Commission has not fixed, it is not neces-
sary for the Commission to have power to raise rates. But
the Commission is now asking Congress to give it discretion-
ary power to enjoin railways from advancing rates when it
deems this desirable. A shipper or community may as easily
be injured by having the rate of a competing shipper or com-
munity reduced as by having its own rate raised. Why,
therefore, does not the Commission ask for power to restrain
either an advance or a reduction ? Congress, in revising the
tariff on foreign manufactures, and thereby to a large ex-
tent fixing the prices of domestic manufacture, raises or
reduces the rates as it thinks best. - .
The different attitude of the government toward manu-
facturers and toward railways would naturally raise the pre-
sumption that the level of prices of manufactured goods in
this country is low and needs to be raised and supported,
while the level of railway rates is high and needs to be de-
pressed. But, in fact, the level of prices of manufactured
goods is much higher in this country than anywhere in
Europe, while the average freight rate per ton per mile in
the United States is 7.6 mills and in Europe is over 14 mills.
Does there not seem to be an anomaly in government pro-
tecting with one hand one class of industries in making ex-
ceptionally high prices, while reducing with the other hand
the rates of another class of industries that is already mak-
ing exceptionally low charges? s
Manufacturers are large purchasers of transportation.
As the tariff raises the prices that manufacturers can get for
their goods, so railway regulation tends to keep down the
[3]
prices for which they can buy transportation. On the other
hand, railways are large purchasers of manufactured prod-
ucts. As railway regulation tends to reduce the prices they
get for transportation, so the tariff raises the prices of the
things they have to buy. While both policies tend to in-
crease the profits of manufacturers, both seemingly tend to
reduce the profits of the railways. • ,
The railways are very large buyers, for example, of steel
and iron products, especially steel rails. The export price
of European rails varies from $20 to $24. If there were no
tariff in this country, European rails easily could be shipped
here and sold for $22 to $25 a ton, or even less. The United
States Steel Corporation could easily meet these prices, for
the cost of making rails in this country is lower, as Andrew
Carnegie has said, than anywhere else in the world, being,
according to different estimates for different mills, from
$14 to $20 a ton. But there is a tariff of $7.84 a ton on
foreign rails, which enables the domestic manufacturers to
charge American railways $28 a ton. Suppose, now, that the
railways, in order to recoup themselves for the high price
they have to pay for steel rails, should advance their rates
on iron and steel, and the manufacturers should complain
about it to the Interstate Commerce Commission. There is
not much doubt, in view of what the Interstate Commerce
Commission did in the Northwestern Lumber Rate cases,
that in such an event the raise in freight rates would be held
unreasonable and illegal. * -
There is a tariff on lumber and its products that bars the
importation of these commodities from Canada and else-
where. The railways buy immense quantities of lumber for .
stations and cattle pens, ties for tracks, etc. Between 1897
and 1907 the lumber manufacturers of the north Pacific
coast, under the protection of the tariff, raised from 73 to
171 per cent the prices of the various kinds of lumber that
railways use. In November, 1907, the railways attempted
to raise the freight rates on northwestern lumber and its
products 15 to 25 per cent. The Interstate Commerce Com-
mission held the advanced rates unreasonable and forbade
the railways to collect them. Through the protective tariff
the government enabled the lumbermen to raise from 73
to 171 per cent the prices they charged the railways, though
the Interstate Commerce Commission prohibited the rail-
[. 4.
ways from raising 15 to 25 per cent the rates they charged
the lumbermen.
One of the strongest arguments for a protective tariff
is that by enabling manufacturers to get high prices, it
enables them to pay high wages. But if manufacturers pay
high wages railways must do likewise, or they will not get
enough labor. And, in fact, the average salary-wage paid
by railways seems to be higher than that paid by manufac-
turers. According to the special census of manufacturers
for 1905, made by the Bureau of the Census, the average
salary-wage in manufactures that year was $539. Accord-
ing to the statistics of the Interstate Commerce Commis-
Sion, the average salary-wage paid by the railways in the
same year was $607; and in the year ended June 30, 1907,
the average salary-wage paid by railways was $640. r
If it is necessary for the manufacturers of the United
States to have protection and high prices in Order to pay
higher wages than the manufacturers of Europe, it seems
pertinent to ask how the railways of the United States man-
age to get along while receiving much lower rates than the
railways of Europe and paying wages not only much higher
than those paid by the railways of Europe, but almost 11
per cent higher than those paid by the protected manufac-
turers of the United States? Perhaps the fact that govern-
ment statistics, as analyzed by Mr. Logan G. McPherson,
show that in 1905 the net returns of the railways of the
United States were 4 per cent and the net returns of the
ſmanufacturers 15 per cent, may have some bearing on this
question. - - -
The explanation usually given of the wide difference
between the way that government and public deal with
manufacturers and with railways is that manufactories
are strictly private concerns, while railways are quasi-
public corporations and are therefore properly subject to
strict public regulation and control. But this explana-
tion is juridical, not economic or equitable. It tells why the
government legally can deal differently with railways, but
not why it should and does. Speaking morally and economic-
ally, it would seem that the government has as good a right
to regulate and strictly control manufacturers who, by a
protective tariff, it has enabled to build up large businesses, .
to charge high prices and to make large profits, as it has
[5]
to regulate and strictly control railways because they are
common carriers and exercise the power of eminent domain.
The true explanation of the difference between the ways
that these two great industries are treated is historical.
Thirty-five years ago national, state and municipal govern-
ments and the public vied in giving public lands, subsidies
and exemptions from taxation to promote railway develop-
ment, just as a protective tariff is now levied to foster the
development of manufactures. The change in the treatment
of railways is due largely to their own faults and offenses.
Each railway passes through numerous communities where
there is no other line. The roads in many instances abused
their power by discriminating unfairly against the com-
munities where they had a monopoly and in favor of com-
munities where they met competition. They also wrong-
fully discriminated between shippers. Those who owned
control of the roads usually lived distant from the proper-
ties and the people of many communities grew to regard
them as oppressive absentee landlords. The result was the
“Granger” agitation and legislation of the seventies, the
Interstate Commerce Act of 1887, and the Elkins Act of
1903. This legislation made unfair discrimination of every
kind unlawful. g -
The big shippers and the competitive points, finding that
the unfair advantages they had enjoyed were being taken
away, joined with the small shippers and the noncompetitive
points in demands for action to control and reduce all rates,
which resulted in the Hepburn Act of 1906—giving the
Interstate Commerce Commission power to reduce, but not
to raise rates—and in the wave of State anti-railway agita-
tion and legislation in 1907. The fundamental. cause of all
the legislation for the control of railways undoubtedly was
the feeling of the public that they were natural monopolies
against which any individual was powerless to protect him-
self, and that their power was being abused. r
The manufactory, on the other hand, is not a natural
monopoly. If it treats its customers unfairly, they can
usually buy of somebody else. Formerly, it was a large
manufacturing business that represented as big an invest-
ment as a small railway. People, therefore, did not fear the
power of manufacturers as they feared that of railways.
The owner of the factory formerly was usually a citizen
[6]
of the immediate community, in whose success his neighbors
took a personal interest and pride. Manufacturers are also
larger employers of labor than railways. The investment
represented by manufacturers and railways in this country
in 1905 was almost the same, being for the former $13,870,-
000,000, and for the latter $13,805,000,000. The railways
paid a higher average wage and laid out a larger percentage
of their gross earnings in wages. But the total number of
persons employed by manufacturers was 6,700,000, as
compared with 1,400,000 employed by the railways. Manu-
facturers also have always taken more pains to show their
employees wherein their interests are mutual and conse-
quently a large majority of the employees of protected in-
dustries can always be relied on to vote for candidates who
favor a protective tariff. ... •
In recent years some important changes have been taking
place in manufacturers. Large combinations and corpora-
tions have been getting practical monopolies of several lines
of manufacture, and the individual farmer or merchant has
begun to feel as helpless in dealing with them as he formerly
felt in dealing with the railway. Some of these combina-
tions and corporations have abused the power derived from
monopoly and the protective tariff by charging higher prices
and making larger profits than the public thinks justifiable.
Largely Owing to these causes, a strong public sentiment has
developed in favor of revision of the tariff downward,
especially on foreign articles competing with domestic arti-
cles made by trusts, and of some form of strict regulation
of these concerns. Meantime, railway managers and owners,
chastened by experience, have begun to deal with the public
with unwonted tact and circumspection, and to enlist their
employees in a campaign against what they regard as unfair
regulation. -
Whether the result will be a different policy by the gov-
ernment in reference to either manufacturers or railways
only time can tell. But there are certain very important
economic facts and principles that public and government, in
dealing with these great industries, can not afford to dis-
regard. There is always a large amount of capital that will
be invested in the line of industry that offers the largest
probable return. If public policy tends to attract capital to
One line of industry and to repel it from another, the amount
• y
[7]
*
invested in the former is apt to be disproportionately large
and in the latter unduly small. This will hurt the unfavored
as well as the favored industries.
Some years ago railway development in the United
States, owing to artificial stimulation, outstripped the growth
of commerce, and manufactures remained relatively back-
ward, while half the roads in the country became bankrupt
from want of traffic. Should the growth of manufactures
in future, from any cause, exceed the increase of facilities
of transportation, investors in manufactures would suffer
heavy loss through inability to get fuel and raw materials
to the factories and finished products from the factories to
the markets. It is equally requisite to the prosperity of the
country that the railways shall have plenty-of traffic to haul
and that producers shall be afforded facilities ample to
handle the traffic available.
*
f :
**V. of Micº’
ºr gº, $334
DOCUMENT No. 95
THE AMERICAN PROTECTIVE TARIFF LEAGUE
DEVOTED TO THE PROTECTION OF AMERICAN LABOR AND 1 NDUSTRIES
No. 339 Broadway, Between Worth and Leonard Sts.
NEW YORK, DECEMBER, 1909
THE TAx ON CORPORATIONs
UNFAIRNEss AND UNconstitutionALITY OF THE LAw set ForTH
| N A CA REF U LLY PRE PARED OPINION.
FULL TEXT OF THE O PIN | ON AND THE LAW.
At the request of THE AMERICAN PROTECTIVE TARIFF LEAGUE, Hon.
John S. Wise, a recognized authority on constitutional law, has prepared an opinion
on that portion of the Tariff of 1909 which provides for a tax of 1 per cent.
on the incomes of all corporations.
With an emphatic negative, as follows:
Is this law constitutional 7 Mr. Wise replies
Re: Corporation Tax Law.
The constitutionality of the Corporation
Tax law, which appears in the Tariff Act
of 1909, ought to be tested. Three classes
of people demand this—to wit: Those
called on to pay the tax, Démocrats who
think it invades the reserved rights of
the States, and Republicans who think
the radical Wing of the party is going
too far in the assumption and exercise of
Federal powers.
The proposal to levy a so-called excise
tax on corporations “with respect to the
carrying On Or doing business by such
corporations" emanates from President
Taft. In his message of June 16, 1909, he
characterized it as new. He also disclosed
an apprehension which, able lawyer that
he is, he could not but feel that it may
be held to contain features fatal to the
income tax, in the case of Pollock vs.
Farmers' Loan and Trust Company. The
President seemed to realize, too, that it
required all the prestige of his position as
President, and of his great reputation as
a constitutional lawyer to make it plain
that this proposed tax differs in principlc
| specious, if
from the income tax that was held uncon-
stitutional. His arguments in the mes-
sage in favor of the law are adroit and
not sound. But his refer-
ences to the tax, in speeches made since
the adoption of the law, as substantially
an in come tax on corporations, show how
close it is, in fact, to the former legisla-
tion.
The Argument of Convenience.
Both the President and Senator Root
have referred to the convenience of the
tax as furnishing the means of Federa
supervision over the affairs of the cor.
poration and information to the public
concerning the accounts and busines,
transactions of all corporations. This ar-
gument of convenience is always danger-
ous, especially when invoked concerning
measures the constitutionality of which
is doubtful. : .
Other writers have tried to justify th
tax by pointing out that other nations
notably Great Britain, Germany, and
France, have laws taxing the incomes of
corporations. The obvious answer is that
2
Great Britain, Germany and France oc-
cupy relations to corporations created by
them entirely different from that of the
United States to American corporations,
except the few chartered by Federal law.
Created by State Charters Only.
The creation, control and annulment of
corporate franchises in the United States
ls, in the - Vast majority of cases, commit-
ted to the care of the States composing
the Union, and the overwhelming major-
ity of American corporations are created
by State charters, and Can Only be ter-
minated by State authority. So true is
this that the Supreme Court of the United
States has held that a corporation chair-
tered by one State, seeking to do business
in another State, is not a citizen, in the
sense in which the word was used in the
. Constitution, and is not entitled to the
benefit of the guaranty that citizens of
one - State shall have all the rights, privi-
leges and immunities of citizens in an-
other State. From this holding of the
Supreme Court has a risen the well-known
ruling that any State in the Union has
it in its power to prescribe and determine
the conditions upon which a corporation
... chartered by another State may appear
and do business within its limits. In a
... word, it has been recognized from the
formation of the government that the cre-
ation, control and annulment of corpo-
rate franchises by State authority is part
of that “vast residuum of powers” which
was referred to by Mr. Justice Washing-
ton as remaining in the States after the
adoption of the Constitution, and not dele-
gated to Federal authority.
A Departure from Precedent.
The representatives of one of the great
parties of this country, assembled at Sara-
toga during the past Summer, expressed as
their leading objection to this corporation
tax that it was both in principle and in
- fact an obnoxious departure from prece-
... dent, in that it ignores the hitherto un-
questioned doctrine that matters pertain-
ing to corporations chartered by the States
are properly and exclusively cognizable in
State legislation. Sound or unsound, the
statement of that position is sufficient to
show that the declarations of half-baked
opinions appearing of late, that the United
States may do this thing because Euro-
pean countries have done it, is not ac-
quiesced in by all students of constitu-
tional rights.
President Taft and Senator Root are men
Of great character, great ability and great
learning in constitutional law. Their ut-
terances on questions like this are entitled
to respectful consideration and careful
Study. But neither of them is infallible,
and both have made records in some cases
Which have created the impression that
they belong to the most radical school of
latitudinarian construction of Federal
powers, and are inclined to find, some-
where in the Constitution, power to do
what they consider necessary, desirable or
even convenient, for the aggrandizement
of Federal administration. Indeed, one of
them has gone so far, unless he was mis-
quoted in the public prints, as to argue
that new interpretations may be placed
upon the Constitution, different from for-
mer interpretations, in view of changed
social and economic conditions.
Radical Latitudinarianism.
Without discussing the soundness of
that utterance, it is sufficient to refer to
it as evidence of the existence among
American statesmen of to-day of views
concerning the extent of Federal power
far beyond those of the most advanced
Federalists in the earlier days of the re-
public; and to that class belong those who
have propounded and passed the measure
under discussion. Giving President Taft
credit for perfect sincerity in wishing su-
pervisory control of corporations, there
are thousands of American citizens who
do not see the merit of such supervision
and control by the Federal government,
and look upon the attempt to gain it as
embarking the government in the exer-
cise of authority Over corporations which
it never was intended to have when the
Constitution was adopted.
Not Perfectly Sure.
Certain things said by President Taft
in his message show that he was not per-
fectly sure in his own mind of the power
of the Federal government to embark in
this character of legislation without Con-
stitutional amendments authorizing it, for
his first recommendation, preceding the
advice to adopt the Corporation Tax law,
was that Congress should pass a joint res-
olution proposing a constitutional amend-
ment granting to the Federal government
the right to levy and collect an income tax.
If Congress may do the second thing he
recommended, there will be little need of
adopting his first proposal. It may also
be fairly inferred from his message that
his legal judgment does not concur in the
3
soundness of the Supreme Court decision
in the income tax case, for, referring to
that decision, he said it had declared un-
constitutional taxes which had, until then,
been “generally supposed” to be within the
Federal pOWers of taxation. . Men seldom
pronounce decisions contrary to general
ideas unless they be contrary, to their own
ideas.
For all the above reasons we must take
the opinions of the President on the sub-
ject with a respectful grain of allowance,
in view of his well-known antecedents on
these questions, and his judicial and pos.
litical record, Congress took him at his
word and enacted this law upon the lines
recommended by him. -
Similarities and Differences.
A comparison between the Income Tax
law of 1894 and the Corporation Tax law
of 1909 shows a marked similiarity of
language in description of the subject of
taxation The act of 1894 provided for as-
_sessing, levying and collecting a tax of
3 two per cent. upon the gains, profits and
- Income received in the preceding calendar
2-year by every citizen of the United States
in excess of $4,000, etc. The act of 1909
G declares, “Subject to pay annually a Spe-
cial excise tax equivalent to one per cent.
Q of the entire met income over and above
! $5,000 received from all sources during
(ſº the year, every corporation, joint Stock
... company, etc., in the United tates. The
... differences between the two acts are radi-
-ºcal. The act of 1894 placed the tax upon
: the income of every citizen of the United
Østates, and upon the income from the
| business carried on in the United States of
persons residing out of the United States,
while the act of 1909 imposed a tax equiv-
alent to one per cent. Upon the net income
over and above $5,000 of every corporation
doing business in the United States. This
difference is in respect to the person Sub-
ject to the tax. In the first act the tax
was levied upon the income of all persons,
real or artificial, and in the second act it
was levied upon the income of artificial
persons only.
Limited and Defined PoWers.
In the first act the tax was levied as “a
tax of two per cent. upon the gains, profits
and income received in the preceding cal-
endar year.” In the new act the tax is
levied as a “special excise tax with respect
to the carrying on or doing business” by
the parties taxed, not upon the income, but
“equivalent to one per cent. upon” the in-
come. The words “special excise” are in-
Serted in the new act ahead of the word
“tax” and after the word “tax” and be-
fore the “per cent. upon income” the words
“With respect to . the carrying on or doing
business by such corporations, etc., and
equivalent to” are placed. The question
remains, do these changes eliminate the
obnoxious features of the earlier legisla-
tion ? To answer that question we must
look at a great many expressions in for-
mer decisions. That the Federal govern-
ment, notwithstanding the vast unques-
tioned powers it posseses, and the far-
reaching ramifications of these powers, is
never the less a government of limited and
defined powers, everybody must admit.
That “a vast residuum of .owers” were not
delegated by the States to the Federal
government when the Constitution was
adopted and still remain exclusively in
the States of this Union has been decided
too often to require citation in support
of the Statement.
Sacred Rights of the States.
At the moment when Federal power, as
a fact, was absolutely supreme, upon the
triumph in arms of the Federal govern-
ment Over the States that sought to with-
draw from the Union, the Supreme Court
held that the inherent duty of self-preser-
vation existing in the Federal government
and established by its triumph in arms
Was not more sacred than the I’ederal
duty of preserving to the States compos-
ing the Union the rights which they had
reServed to themselves when they entered
into the Federal compact and which had
been guaranteed by the Federal govern-
ment to the States under the Federal Con-
Stitution. The same der: 1sion: that justi-
fied the conquest of the States in their
effort to withdraw from the ljnion, and
declared that ºne Tjnijon was idissoluble,
also declared that the States were inde-
structible, and that the Federal govern-
merit had no higher obligation resting
upon it than the recognition and preserval-
tion of those reserved rights of the States
which had not been delegated to it. This
was the Federalism of Abraham Lincoln,
William H. Seward, Salmon P. Chase, and
the militant triumphant hosts of the Re-
publicans led by them. -
In Our day, in the light of advanced Re-
publican doctrine which we heat daily,
they must be regarded as conservative
Republicans in Jontra-distinction to those
who advocate later day radical I “ederalist
4
taxation.
doctrines, and in the head of their at-
tempts to do so have stated that the idea,
of the entity of the States had passed out
of usefulness.
Federal Power of Taxation.
In the present case the whole question
involved turns on the Federal power of
What is that Tederal power of
taxation? The wisest and most learned
among our law givers have condensed the
expression of that power into language
so simple that the most limited intelli-
gence may comprehend it. In the License
Tax cases (5th Wallace, 462-471) Chief
Justice Chase said:
“The power of Congress to tax is a very
extensive power. It is given in the Con-
stitution, with only one exception and
only two qualifications.”
The exception, he briefly states, is Con-
gress cannot tax exports. The two quali-
fications are stated as follows: “It must
impose direct taxes by the rule of appoI -
tionment’ among the States according to
population. It must impose indirect taxes
“by the rule of uniformity.”
Is It a Direct 's ax?
The Corporation Tax is not the tax
which was prohibited, for it is not a tax
on exports. It is, therefore, a tax within
the power of the Federal government, un-
less it be a direct tax, or a tax not uni-
form. Is it a direct tax?
In the Income Tax decision, in which
the tax considered was imposed upon all
property holders, the Supreme Court said
(page 558) : .
to the income yielded by their estates and
the payment of which cannot be avoided
is a direct tax.”
In the same case, discussing whether an
|
“A tax upon property holders in respect But there still remains a very grave ques-
in-come tax was a direct or indirect tax,
the Supreme Court declared that income
taxes had always been classed in Great
Britain as direct taxes. Notwithstanding
these declarations, a way has been found
to avoid that difficulty. Subsequently that
which was held a direct tax in the Pollock
case has since been held an in direct tax, in
the Spreckles case, by denominating it all,
“excise tax.” The Constitution, Article I,
Section 8, says:
- “The Congress shall have power to lay
and collect taxes, duties, imposts and ex-
cises * : * * but all duties, imposts and
excises shall be uniform throughout the
{ nited States,”
What Is an Excise Tax?
After the decision of the Income Tax
case, Spreckels resisted a Federal tax upon
the annual income of his sugar refinery,
claiming that, under the ruling in the
Income Tax cases, it was a direct tax.
The tax law challenged used the same lan-
guage as ... that now employed in the Cor-
pol’ation Tax law, and instead of describ-
1ng the tax as simply a tax, added that it
Was an excise tax “in respect to the privi-
lege of carrying on business.” The Su-
preme Court has repeatedly declared what
is an excise tax, as contra-distinguished
from a simple tax. It is a tax upon the
privilege of doing this or that. For exam-
ple, a tax on the privilege of distilling
liquors, or of riding in a four-wheeled
Carriage, or of manufacturing tobacco, or
of engaging in any kind of business de-
Scribed in the act. And so it has come to
this, according to the decision in the
Spreckels case, that if the Income Tax law
had expressed that it was imposed upon
eVerybody, not as a plain tax upon income,
but as a tax up On the privilege of doing
any kind of business, and if, instead of
declaring it to be one per cent. upon in-
Come, it had been declared to be an excise
tax equivalent to one per cent. of income,
the Income Tax law would have been valid
legislation. There is no escape, by any
Sophistry, from this conclusion, and lay-
men who study the matter sufficiently to
comprehend the attenuated thread of real-
soning by which the ultimate destination
of millions in each Case was determined,
are not likely to feel great respect for
the legal maxim that the law, in rendering
decisions, has regard for the Substance and
not the form of things.
Is the Tax Uniform?
It would seem, therefore, that the Presi-
dent was fully warranted in the expecta-
tion that if Congress would pass this cor-
p Oration tax and call it an “excise” tax,
the courts might not nullify its action, on
the ground that the tax is a direct tax.
tion concerning this corporation tax, to
wit: IS the tax uniform 2 The mandate
of the Constitution is that excises shal)
be uniform throughout the United States,
Granting this to be an excise, is it unj–
form 2 The Corporation Tax law, while it
follows the exact language of the Statute
construed in the Spreckels case, both Con-
cerning the character of the tax as an
excise, and in the declaration that it is
łmposed in respect to the business done,
does not adhere to the uniformity of the
act involved in the Spreckels case concern-
ling the persons upon whom the excise tax
was imposed, and Ormits from its Operation
every one but corporations. It was grave-
ly argued in the Pollock case that the true
meaning of the constitutional requirement
is that it prohibits inequality among per-
sons in regard to the same property sub-
ject to taxation, just as much as it pro-
hibits territorial inequality; that the gov-
ernment cannot levy a duty, an impost or
an excise upon one class of people having
the same character of property, and ex-
empt from the tax other people having
the same character of property,
5
Fanciful Classification Is Forbidden.
The government could not levy such a
tax upon individuals and exempt corpora-
tions. It could not levy it upon red-headed
men and not upon black-headed men. The
government itself has shown, by inn posing
this exact character of tax upon every-
body, citizens and Corporations alike, both
in the income tax case and in the tax in
the Spreckels case, that it regarded them
all of a class, all d as Sucli annenable to the
tax under the requirement of uniformity,
'and ought not to depart from that rule of
uniformity acknowledged and established
by itself, upon the idea that its jurisdic-
tion or authority over corporations is any-
Wise different from that which it possesses
OVer natural person.S. In the attempt to
do so it a SSumes a control and power of
regulation of corporations which it did
not create, which it cannot destroy, and
can not regulate, with out invading the re-
served rights of the States. It may indeed
treat Corporation creatures of the States,
as Subject to a uniform taxation, along
With natural persons of the States. It
has demanded, in the rulings of Federal
courts, that the States shall conform to
this standa.rd.
Cannot Discriminate.
But when it attempts, in levying taxes,
to discriminate between the real and arti-
ficial persons of the States, it a,bandon S
the rule of unifornmity essential to the
validity of any tax it levies. In the dis-
senting opinions in Pollock vs. Farmers'
Loan & Trust Company, it was said:
“Property and the gains and profits and
in conne derived from property belonging
to private Corporations and individuals are
subject to taxation.”
But in that case it was not hinted that
an attempt to levy a tax on the property
of the one, to the exclusion of the other,
would be uniform. The Spreckels case did
not touch upon this grave question of uni-
formity, nor do we find any decision in
the Supreme Court either conclusive or
... persuasive On this point. It is a very in-
teresting question. This discrimination
between corporations and individuals can
only be sustained by holding that the Fed-
oral government has the right, in laying
taxes, to discriminate between different
classes of persons in the States, notwith-
standing they became subject to its juris-
diction without discrimination.
States Only May Discrizºninate.
The power of the United States over
artificial and natural persons of the States
is exactly the same. States may discrimi-
nate between such artificial persons and
natural citizens by , in posing terms upon
which they may exist as artificial persons,
but after they conne into existence even
States must not discriminate between them.
in taxation. N. C. & St. L. R. R. v. Taylor,
86 Fed. Rep., 184 (1908.) The States
brought them into existence on terms ac-
ceptable to themselves, a not may well con-
tend that the United States shall not exer-
cise the power to discriminate between the
different kinds of persons of States. Any
attempt on the part of the United States
to do so in the imposition of taxes, by
Whatever name those taxes may be desig-
nated, is a departure from that rule of
uniformity imposed by the Constitution,
ural person who is untaxed ?
and which has so often been declared in-
Separable from and indispensable to the
imposition of taxes of any kind upon citi-
ZG Il S.
AS against the States themselves and the
Citizens constituting corporations in these
States this tax by the Federal government
takes Out of the pocket of a segregated
Cla.SS of citizens a tax, Without touching
the Same class of property in the hands
Of Other citizens or persons, and whatever
be the fiction and pretext on which the
tax is levied, it is not uniform as it bears
upon the subject of taxation, nor is it uni-
form in its burden upon the persons from
Who Se pockets the tax is taken. In the
Case of Nicol against Anne's, Mr. Justice
Peckham Said a classification to be up-
held must be reasonable arid not arbitrary
or Capricious, and while the Supreme
Court held in the inheritance tax de-
Cision (IKnowlton v. Moore) that the re-
Cluirement of uniformity meant only ter-
ritorial uniformity, it did not revise or
Overrule the language of the Nicol case
Concerning the rule of classification. The
tax is not even on the business of corpo-
ration S as corporations. It is only a tax
On business done by corporations, omit-
ting any tax on the same business done
by individuals or by partnerships. It is
plainly, to my mind, an arbitrary, capri-
cious and Oppressive discrimination be-
tWeen natural and artificial citizens en-
gaged in the identical pursuits and is not
based upon any just ground of discrimi-
lmation between them.
Would WOrk an Injustice.
Under this new law, citizens in a State
who own personal property on which they
receive an in come of five thousand dol-
lars are taxed, no matter whether it be
directly or indirectly, and other citizens
who have an income of five thousand dol-
lars on personal property, ennbarked in
the Same business, though not in corpo-
rate enterprises, are not taxed. It is a fic-
tion of law which works an injustice. The
TJnited States did nothing to create the
corporations, Cannot control their opera-
tion S under the laws of the State which
created them, and can not take away their
franchises if it would. Has it the power
to milk them, to regulate them, to de-
stroy them by taxation, When it gives
no more protection to the artificial
to the nat-
The Supreme
Court has said: “The question always is,
when a classification is made, whether
there is any reasonable ground for it, or
whether it is only and simply arbitrary.”
When the State of Tennessee made
person who is taxed than
the classification between individuals
and in dividuals, the law Wals held
void, the Federal court saying: “Prop-
erty of the same kind, in the Salme condi-
tion, and used for the same purpose, must
be taxed by a uniform rule without regard
to ownership.” That is true of the Fed-
eral power as of State power. -
It is a rule of classification. It cannot
be a good rule of classification for a State
and a bad rule for the United States.
The Supreme Court is committed to it as
applicable to all cases of classificatin”.
- OHN S. WISE.
20 Broad Street, New York, November
909,
**
6
THE CORPORATION TAX LAW AS ENACTED
Sec. 38. That every corporation, joint
Stock Company or association, Organized
for profit and having a capital Stock rep-
resented by shares, and every insurance
Company, n'OW Or hereafter Organized un-
der the laws of the United States or of
any State or Territory of the United States
or under the acts of Congress applicable
to Alaska. Or the District Of Columbia, or
now or hereafter organized under the laws
of any foreign country and engaged in
business in any State or Territory of the
United States Or in Alaska. Ör in the Dis-
trict of Columbia, shall be subject to pay
annually a Special excise tax with respect
to the carrying On Or doing business by
Such Corporation, joint Stock company or
association, or insurance company, equiv-
allent to One per centum upon the entire
net income Over and above five thousand
dollars received by it from all sources
during Such year, exclusive of a mounts
received by it as dividends up on Stock of
other corporations, joint Stock companies
or associations, or insurance companies,
subject to the tax thereby imposed; Or if
organized under the laws of any foreign
country, upon the amount of net income
Over and lab Ove five th:O usand dollars 1 C-
ceived by it from business transacted and
capital invested within the United States
and its Territories, Alaska, and the l’is-
trict of Columbia, during such year, ex-
clusive of alm Ounts So received by it as
dividends upon Stock Of Other Corp Oral-
tions, joint stock companies or associa-
tions, or insurance companies, subject to
the tax thereby imposed: provided, how-
ever, that nothing in this section con-
tained shall apply to labor, agricultural
or horticultural organiz:u Éions, or to fra-
ternal beneficiary Societies, orders or a S-
sociations operating under the lodge Sys-
tem, and providing for the payment Ol
life, sick, accident and other beneſits to
the members of such Societies, Orders ()1
associations, and dependents of Such men) -
bers, nor to domestic building and loa. 1.
associations, organized and operated ex-
clusively for the mutual ben fit of their
members, nor to any Corps) ration Or a SSG-
ºciation organized and operated exclusive-
ly for religious, charitable, or r-ducallonal
purposes, no part of the net income of
which inures to the benefit of any private
stockholder or individual.
Second. Surh net in conne Shall be ascer-
tained by deducting from the gross amount
of the income of such corporation, joint
stock company or association, or in Sur-
ance company, received within the year
from all sources, (first) all the Ordinary
wind necessary expenses actually paid
within the year out of income in the
maintenance and operation of its busi-
ness and properties, including all charges
such as rentals or franchise payments, re-
quired to be made as a condition to the
continued use or possession of property;
(second) all losses actually sustained
within the year and not compensated by
insurance or otherwise, including a real-
sonable allowance for depreciation of
property, if any, and in the case of insur-
ance companies the sums other than divi-
dends, paid within the vear on policy and
a minuity contracts and the net addition, if
any, required by law to be made within
the year to reserve funds; (third) interest
actually paid within the year On its bond-
ed or other indebtedness to an almount
of such bonded and Other indebtedness not
exceeding the paid-up capital Stock of
Such corporation, joint. Stock company or
association, or insurance company, out-
Standing at the close of the year, and in
the case of a bank, banking association
or trust company, all interest actually
paid by it within the year on deposits;
(fourth) all sums paid by it within the
year for taxes imposed under the author-
ity of the United States or of any State
or Territory thereof, or imposed by the
government of any foreign country as a
condition to carrying on business there-
in ; (fifth) all amounts received by it with-
in the year as dividends upon stock of
Other corporations, joint stock companies
Or associations, or insurance companies,
subject to the tax hereby imposed; pro-
vided, that in the case of a corporation,
joint stock company or association, or
tnsurance company, organized under the
laws of a foreign country, such net in-
come shall be ascertained by deducting
from the gross amount of its income re-
ceived within the year from business ,
transacted and capital invested within :
the United States and any of its Terri-
tories, Alaska, and the District of Colum-
bia, (first) all the ordinary and necessary
expenses actually paid, within the year out
Of earnings in the maintenance and oper-
tion of its business and property within
the United States and its Territories,
Alaska, and the District of Columbia, in-
cluding all charges such as rentals or
franchise payments required to be made
as a Condition to the continued use or
p OSSession of property; (second) all losses
actually Sustained within the year in busi-
ness conducted by it within the United
States or its Territories, Alaska, or the
District of Columbia, not compensated by
in Surance or otherwise, including a real-
Sonable allowance for depreciation of .
property, if any, and in the case of insur-
ln Ce COmpanies, the Sum's Other than divi-
lends, paid within the year on policy and
in nuity Contracts and the net addition, if
nºny, required by law to be made withil,
the year to reserve funds; (third) interest
actually paid within the year On its bond-
2d or other indebtedness to an amount of
Such bonded and other indebtedness not
exceeding the proportion of its paid-up
2apital Stock outstanding at the close of
the year which the gross a mount of its
income for the year from business trans-
nicted and capital invested within the
TJnited States and any of its Territories,
Alaska, and the District of Columbia bears
to the groSS a.mount of its income derived
from all sources within and without the
TJnited States; (fourth) the sums paid by
it with in the year for taxes imposed under
the authority of the United States or of
any Sate or Territory thereof: (fifth) all
amounts received by it within the year
as dividends upon Stock of other corpora-
tions, joint stock companies or associal-
tion, and . insurance companies, subject to
the tax hereby imposed. In the case of
assessment insurance companies the ac-
tual deposit of sums with State or Terri-
torial officers, pursuant to law, as addi-
7
tions to guaranty or reserve funds shall
be treated as being payments required by
law, to , reserve funds.
* Third. There shall be deducted from the
amount of the net income of each of such
Corporations, joint stock companies or as-
SOClation S, or lnsurance companies, ascel -
tained as provided in the foregoing para-
graphs of this section, the sum of five
thousand dollars, and said tax shall be
Computed upon the remainder of Said net
in Come of Such corporation, joint stock
Company or a SSociation, or insurance com-
pany, for the year ending December 31,
1909, and for each calendar year there-
after; and on or before the first day or
March, 1910, and the first day of March
in each year thereafter, a true and accu-
rate return under oath or affirmation of
its president, vice-president or other prin-
cipal officer, and its treasurer or assistant
trea,Surer, Shall be made by each of the
COTP Orations, joint stock companies or as-
Sociations, and insurance companies, sub-
ject to the tax imposed by this section, to
the collector of internal revenue for the
district in which such corporation, joint
Stock Company Or association, or insurance
Company, has its principal place of busi-
neSS, Or, in the case of a corporation, joint
Stock Company or association, or insur-
** ance company, organized under the laws of
a foreign country, in the place where its
principal business is carried on within
the United States, in such form as the
Commissioner of Internal Revenue, with
the approval of the Secretary of the Treas-
ury, shall prescribe, setting forth, (first)
the total amount of the paid-up capital
stock of such corporation, joint Stock conn-
pany or association, or insurance company,
Outstanding at the close of the year; (sec-
Ond) the total annount of the bonded and
other in debtedness of such corporation,
joint Stock Company or association, Or in-
surance company, at the close of the year;
(third) the gross annount of the income
of Such corporation, joint Stock Company
or association, or insurance company, re-
ceived during Such year from all Sources,
and if organized under the laws of a for-
eign country, the gross annount of its in-
come received with in the year from busi-
ness transacted and capital invested with -
in the United States and any of its Terri-
tories, Alaska, and the District of Colum-
bia; also the amount received by such cor-
poration, joint stock company or associa-
tion, or insurance company, within the
year by way of dividends upon stock of
other corporations, joint stock companies
or associations, or insurance companies,
subject to the tax imposed by this Section;
(fourth) the total annount of all the ordi-
nary and necessary expenses actually paid
out of earnings in the naintenance and
operation of the business and properties
of such corporation, joint Stock Company
or association, or in Surance Company,
within the year, stating separately all
charges such as rentals or franchise pay-
ments required to be made as a condition
to the continued use or possession of prop-
orty, and if organized under the laws of
a foreign country, the amount so paid in
the maintenance and operation of its busi-
ness, within , the United States, and its
'Territorjes, Alaska, and the District of
Columbia.; (fifth) the total amount of all
losses actually sustained during the year
and not compensated by insurance or Oth-
pany,
erwise, Stating separately any amounts
all OWed for depreciation of property, and
ln the case of insurance companies the
Sums other than dividends, paid within
the year on policy and annuity contracts
and the net addition, if any, required by
law to be made Within the year to reserve
funds; and in the case of a corporation,
joint Stock company or association, or
All Suran Ce Conn pany, Organized under the
la WS of a foreign country, all losses a,c-
tually Sustained by it during the year in
business conducted by it within the United
States Or its Territories, Alaska, or the
District of Columbia, not compensated by
in Surance or Otherwise stating separately
any announts allowed for depreciation of
property, and in the case of insurance
COImpanies the Sums other than dividends,
paid Within the year on policy and annuity
contracts and the net addition, if any, re-
quired by law to be made within the year
to reserve fund ; (sixth) the amount of in-
terest actually paid within the year on
its bonded or other indebtedness to an
a.m Ount Of Such bonded and other indebt-
edness not exceeding the paid-up capital
Stock of Such Corporation, joint Stock com-
pany Or a SSociation, or insurance company,
outstanding at the close of the year, and
in the case of a bank, banking associa-
tion nor trust company, stating separately
all interest paid by it within the year on
deposits; or in the case of a corporation,
joint Stock company or associtalion, or in-
Surance Company, organized under the
laws of a foreign country, interest so paid
On its bonded or other indebtedness to
an almount of such bonded or other ir:-
debtedness not exceeding the proportion
Of paid-up capital stock outstanding at
the close of the year, which the gross
amount Of its income for the year from
busin eSs transacted and capital invested
Within the United States and any of its
Territories, Alaska, and the District of
Columbia, bears to the gross amount of
its income derived from all sources within
and with out the United States; (seventh )
the amount paid by it within the year for
taxes innposed under the authority of the
|United States or any State or Territory
thereof, and Separately the almount So
paid by it for taxes imposed by the gov-
ernment of any foreign country as a
condition to carrying on business there-
in ; (eighth ) the net income of such cor-
poration, joint Stock company or associal-
tion, or insurance company, after making
the deductions in this section authorized.
All Such returns shall as received be trans-
mitted forth with by the collector to the
Commissioner of Internal Revenue.
Fourth. Whenever evidence shall be pro-
duced before the Commissioner of Internal
Revenue which in the Opinion of the Com –
missioner justifies the belief that the re-
turn made by any corporation, joint stock
company Or association, or insurance Com-
- is incorrect, or whenever any col-
lect or shall report to the Commissioner
of Internal Revenue that any corporation,
joint stock company or association, or in-
surance company, has failed to make a
return as required by law. the Commis-
sioner of Internal Revenue may require
from the corporation, joint stock company
or association. or insurance company mak-
jny such return, such further informa-
tion with reference to its capital income.
losses and expenditures as he may deem
8
expedient; and the Commissioner of In-
ternal Revenue, for the purpose of ascer-
tainlng the correctness of such return or
for the purpose of making a return where
n One has been made, is hereby authorized,
by any regularly appointed revenue agent
Specially designated by hinn for that pur-
pose, to examine any books and papers
bearing up On the mattel's required to be
included in the return of such corporation,
joint Stock company or association, or in-
Surance Company, and to require the at-
tendance of any officer or enn ployee of such
Corporation, joint Stock company or asso-
ciation, or insurance company, and to take
his testimony with reference to the mat-
ter required by law to be included in such
return, with power to administer oaths
to Such person or persons; and the Com-
missioner of Internal Revenue may also
invoke the aid of any court of the United
States having jurisdiction to require the
attendance of such officers or employees
and the production of such books and pa -
pers. Upon the information -o acquired
the Commissioner of Internal Revenue
may annend any return or make a return
where none has been made. All proceed-
ings taken by the Commissioner of In-
ternal Revenue under the pro visions of
this section Shall be subject to the alp-
proval of the Secretary of the Treasury.
Fifth. All returns shall be retained by
the Commissioner of Internal Revenue,
who shall make assessments there on ; and
in case of any return made with false or
fraudulent intent, he shall add 100 per
centum of such tax, and in case of a re-
fusal or neglect to make a return or to
verify the same as aforesaid he shall add
50 per centum of such tax. In case of
neglect Occasioned by the sickness or a b-
sence of an officer of such corporation,
joint stock company or association, or
insurance company, required to make Said
return, or for other sufficient reason, the
collector may allow such further time for
malring and delivering such return as he
may deem necessary, not exceeding thirty
days. The amount so added to the tax
shall be collected at the same time and
in the same manner as the tax Originally
assessed, unless the refusal, neglect Or
falsity is discovered after the date of
payment of said taxes, in which case the
amount so added shall be paid by the de-
linquent corporation, joint stock company
or association, or insurance company, im-
mediately upon notice given by the Col-
lector. All assessments shall be made and
the several corporations, joint Stock Com-
panies or associations, or insurance com-
ſpanies, shall be notified of the , annount
for which they are respectively liable on
or before the first day of June of each
successive year, and said assessments shall
be paid on or before the 30th day of June.
except in cases of refusal or neglect to
make such return, and in cases of false
or fraudulent returns, in which cases the
Commissioner of Internal Revenue shall,
upon discovery thereof, at any time with-
in three years after said return is dué,
make a return upon information obtained
as above provided for, and the assessment
made by the Commissioner of Internal
Every sincere Protectionist should regularly
Nevy York,
$2.00 a year. Address 339 Broadway,
Revenue, there on shall be paid by such
Corporation, joint Stock company or asso-
Ciation, or insurance company, immediate-
ly upon h Otification of the amount of such
alsSeSSInent; and to any Sunn Ol' Sums due
and unpaid after the 30th day of June in
any year, and for ten days after notice
and demand there of by the collector, there
shall be added the Sunn of five per centuna
On the amount Of tax unpaid and interest
at the rate of One per Centum per month
upon Said tax from the time the same
be ocumes due.
Sixth. When the assessment shall be
made, alsº provided in this section, the re-
turns, together with any corrections there-
Of which may have been made by the
Commissioner, Shall be filed in the Office
of the Commissioner of Internal Revenue
and shall constitute public records and
be Open to in Spection as such.
Seventh. It shall be unlawful for any
collector, deputy collector, agent, clerk or
other officer or employee of the United
States to divulge or make known in any
manner whatever not provided by law to
any person any information obtained by
him in the discharge of his Official duty.
or to divulge or make known in any man-
ner not provided by law any document
received, evidence taken or report made
under this section except upon the special
direction of the President; and any of-
fense against the fore going provision shall
be a nisdemeanor and be punished by a
fine not exceeding Oile thousand dollars, or
by imprisonment not exceeding one year,
or both, at the discretion of the court.
IEighth. If any of the corporations, joint
Stock companies or associations, or insur-
ance Companies, aforesaid, shall refuse Or
neglect to make a return at the time Or
times herein before specified in each year,
Or shall render a false or fraudulent, re-
turn, such corporation, joint stock Com-
pany or association, or insurance Com-
pany, shall be liable to a penalty of not
less than one thousand dollars and not
exceeding ten thousand dollars.
Any person authorized by law to make,
render, sign or verify any return who
makes any false or fraudulent return or
statement, with intent to defeat or evade
the assessment required by this section
to be made, shall be guilty of a misde-
meanor, and shall be fined not exceeding
One thousand dollars or be imprisoned not
exceeding one year, or both, at the discre-
tion of the court, with the costs of prose-
cution. -
All laws relating to the collection , re-
mission and refund of internal revenue
taxes, so far as applicable to and not in-
consistent with the provisions of this sec-
tion , are hereby extended and made ap-
plicable to the tax imposed by this Sec-
tion.
Jurisdiction is hereby conferred upon
the circuit and district courts of the
United States for the district within which
any person summoned under this section
to appear to testify or to produce books,
as aforesaid, shall reside, to compel such
attendance, production of books and testi-
mony by appropriate process.
read the AMERICAN ECONOM IST,


TARIFF TEACHERS
CROSS-EXAMINED

BY
GEORGE RRICKETT, PUBLISHER
MELROSE, MASS.
Copyright, 1910, by George Brickett
BOSTON
(Lije QLubor 33regg
1910
PREFACE
THE purpose of “Tariff Teachers Cross-
examined ’’ is to attract the attention of
the reader to the injustice of a law which
the majority of voters instructed our repre-
sentatives to enact.
It is not the intention of the author to
express a word against the Congress and
the president who enacted “The Tariff
Act of 1909,” or against the advocates of
a protective tariff who advised the Com-
mittee of Ways and Means in preparing
the various schedules.
There is no new truth, but, by a homely
presentation of old tariff truths, it is hoped
that some reader may be led to see his
error in instructing Congress to “protect
industries with a reasonable profit” to
their owners.
GEORGE BRICKETT.
HERE are twenty million voters in
the United States who say they do
not understand the work of a tariff, and
more than fourteen million of them in
November, 1908, voted to revise the tariff
of 1897. Why should they vote to revise
a tariff whose work they did not under-
stand It is assumed that they had been
led to believe that the tariff was costing
them too much, and they voted to reduce
the cost, which they thought might be done
by revising the tariff downward.
Two pledges for immediate revision
were offered. The Republican party de-
clared: “In all tariff legislation the true
principle of protection is best maintained
by the imposition of such duties as will
equal the difference between the cost of
production at home and abroad, together
with a reasonable profit to American in-
dustries,” and the Democratic party prom-
ised to reduce import duties and gradually
“restore the tariff to a revenue basis.”
6 TARIFF TEACHERS
By a plurality of 1,200,000 we voted to
maintain protection, and, as we live under
an agreement to abide by the will of the
majority, Congress revised the tariff in
obedience of our instructions.
Since the revision of the tariff of 1897,
many who voted with the majority in 1908
have expressed dissatisfaction with the re-
vision. Why are they dissatisfied ?
During the campaign of 1908, the senti-
ments expressed by the press and by
speakers who favored protection im-
pressed voters that the revision of the
tariff would be downward, and the dissatis-
faction seems to be for the reason that
Congress obeyed the votes of the majority
rather than the persiflage of campaign
speakers. By our votes we directed Con-
gress to maintain protection “with a rea-
sonable profit to American industries.”
Congress spent weeks in revising the tariff
of 1897 and maintaining protection. “The
Tariff Act of 1909" is the revision.
CROSS-EXAMIN ED 7
TARIFF For REVENUE
A tariff law is a schedule or schedules of
duties imposed on imported articles. A
duty is a tax on an imported article which
is paid to the government by the importer.
For illustration: Suppose an importer
buys in a foreign country one dozen pairs
of cotton stockings, for which he pays the
foreign manufacturer one dollar. Under
the tariff act of 1909 there is imposed a
duty on such stockings of “seventy cents
per dozen pairs,” and “fifteen per centum
ad valorem,” amounting to 85 cents, which
the importer must pay to the government,
thus advancing the price from one dollar
per dozen pairs to one dollar and eighty-
five cents. The eighty-five cents paid to
the government helps to provide revenue
for the expense of army, navy, pensions,
interest, salaries, etc.
PRIMARY TRUTH — A tariff advances the
price of imported articles that Americans
buy.
8 TARIFF TEACHERS
This might be called the raw effect of a
tariff and it is easy to understand. The
finished work of a tariff is not so easy to
understand, but we can learn something
of it by a brief examination and study.
THE TARIFF ACT OF 1909
The title of the tariff act of 1909 is: “An
Act to provide revenue, equalize duties, and
encourage the industries of the United
States, and for other purposes.” The first
purpose, “to provide revenue,” is accom-
plished by advancing the price of imported
articles that Americans buy, the advance
being paid to the government by the im-
porter.
THE ONLY REQUIREMENT of the act
is to impose duties on imported articles,
thereby advancing the price, and, therefore,
to “equalize duties and to encourage the
industries of the United States,” by the
tariff act of 1909, must be to advance the
price of articles that Americans buy.
There are 375 rates of duties in the law,
CROSS-EXAMIN ED 9
5
but they do not “equalize duties” on
borax, camphor, grindstones, handker-
chiefs, and four thousand other articles.
There is a duty of eleven cents a pound on
wool. This duty advances the price of
wool that our manufacturers buy. Foreign
manufacturers do not have to pay this ad-
vance in price. The duty of eleven cents a
pound on wool places our manufacturers
at a disadvantage when competing with
foreign manufacturers in the sale of cloth,
dress goods, underwear, blankets, flannels,
clothing, etc., made wholly or in part of
wool. To equalize duties in the wool
schedule means to impose duties on cloth,
dress goods, etc., that shall compensate
our manufacturers for the advance in
price that they pay for wool above that
which foreign manufacturers pay. The
duty on dress goods valued at fifteen cents
a square yard is “seven cents per square
yard,” and “fifty per centum ad valorem.”
This makes a total duty of ninety-six per
cent on woolen dress goods valued at
10 TARIFF TEACHERS
fifteen cents per square yard. Of this
total duty forty-six per cent is imposed
“to equalize duties,” and the ninety-six
per cent is to protect our manufacturers
in the sale of their productions.
On clothing composed wholly or in
part of wool “the duty per pound shall be
four times the duty imposed by this sec-
tion on one pound of unwashed wool,”
and “in addition thereto, sixty per cen-
tum ad valorem.” On a suit of clothes
weighing five pounds, and valued at $10,
the duty would be five times 44 cents, which
is $2.20, and in addition 60 per cent of
$10, which is $6, thus making a total duty
of $8.20 on clothing valued at $10 and
weighing five pounds.
No one can explain how a duty of
eleven cents a pound on wool equalizes a
duty of $8.20 on clothing valued at $10.
Twenty million voters are justified in
saying they do not understand “equaliz-
ing duties” as exemplified by the tariff
act of 1909. They would be justified in
CROSS-EXAMIN ED 11
saying that the phrase, “to equalize duties”
seems like an attempt to apologize for the
schedules of duties imposed by the law.
The third purpose of the law is “to en-
courage the industries of the United
States.”
As the only requirement of the law is to
advance the price of articles that Ameri-
cans consume, and, as there is no industry
that can be encouraged by an advance in
price of articles it buys, the intention of
the law must be to encourage some in-
dustries that produce articles to sell.
IMPORTANT INDUSTRIES
In the United States Census Reports for
1900 there is a table of industries. Ar-
ranging this table in the order of numbers
engaged in the various occupations, and
beginning with the largest number, it
would appear as follows: “Farmers, la-
borers not farmers, servants and waiters,
retail dealers, clerks and copyists, sales-
men and saleswomen, carpenters and
12 TARIFF TEACHERS
joiners, steam railroad employes, miners,
teamsters and hackmen, teachers, laun-
derers and laundresses, dressmakers, iron
and steel workers, machinists, painters and
glaziers, bookkeepers, cotton mill opera-
tives, manufacturers and officials, agents,
tailors and tailoresses, engineers and fire-
men, not locomotive, boot and shoe work-
ers, sawmill operatives, masons, house-
keepers and stewards, printers, seam-
stresses, physicians and surgeons, tobacco
and cigar workers, barbers, watchmen,
policemen and firemen, nurses and mid-
wives, lawyers, butchers, stenographers
and typewriters, clergymen, plumbers,
commercial travelers, musicians, bartend-
ers, milliners, government officials, saloon
keepers, boatmen and sailors, peddlers and
trucksters, telegraph and telephone opera-
tors, bankers and brokers, woolen mill
operatives, and ninety industries not here
named. The number of farmers in 1900
was 10,381,765, and the number of woolen
mill operatives was 73,196.
CROSS-EXAMIN ED 13
A FREE TRADE Docum ENT
The table of occupations in the United
States Census Reports is the best educa-
tional work to study for one who does not
understand the tariff, provided he will study
it with the knowledge that a tariff advances
the price of articles that Americans buy,
and also the price of some articles that
some Americans sell. For example: Take
any one of the industries named, say
“plumbers,” and study: — What do
plumbers buy What do plumbers sell ?
They buy food, clothing, shoes, fuel, light,
rent, amusement, working tools, etc. They
sell labor. Would an advance in price
of food, clothing, etc., encourage a plumber
Would an advance in price of his labor
encourage him Can there be a duty
imposed on foreign articles that will ad-
vance a plumber's wages Would a duty
on leaks in water pipes advance a plumb-
er’s wages
This may seem ridiculous, but the stu-
dent will learn that plumbers are directly
14 TARIFF TEACHERS
injured by the tariff on articles they buy
and they cannot be directly benefited by
a duty on work such as they do. To learn
this is not ridiculous.
The student may here say: “The
plumber in the United States receives three
times the wages of a German plumber.”
If the American plumber receives three
times the wages of a German plumber,
for the reason that a duty on leaks in a
water pipe prevents the German plumber
from mending it in Germany, then such
a duty should encourage the American
plumbing industry. If the American
plumber cannot be encouraged by a duty
on leaks, then the entire schedule of duties
injures the plumbing industry. How does
an American plumber get three times the
wages of a German plumber 2 Is it by a
duty on sugar, clothing, working tools,
etc., or is it by his own contract with his
employer :
If the student will study the table of
occupations in this way, taking separately
CROSS-EXAMIN ED 15
the plumber, the servant, the salesman,
the teamster, the teacher, the carpenter,
etc., he will learn that forty-nine of the
forty-nine named industries are injured
by a duty on articles they buy, while there
are only six that can be encouraged by a
duty on articles they have to sell. The
forty-nine industries buy the productions
of the six. The six industries are en-
couraged by a duty that advances the price
of their productions. The forty-nine in-
dustries pay the advance in price.
Why should Congress enact a law to
encourage the industries of the United
States when a superficial examination
seems to show that it injures eight indus-
tries to one that it encourages f For the
reason that we, by a pluralty vote of 1,200,-
000 in November, 1908, instructed Con-
gress to enact such a law.
INDUSTRIES NOT EQUALLY RE-
PRESENTED
When the Committee of Ways and
Means were preparing to revise the tariff
16 TARIFF TEACHERS
of 1897, representatives of various indus-
tries appeared before the Committee to
advise “such rates of duties as will equal
the difference between the cost of pro-
duction at home and abroad, together with
a reasonable profit to American industries.”
There were more than twenty-five repre-
sentatives of the wool-growing, the wool
manufacturing, and the ready-made
clothing industries who appeared urging
the committee to impose a duty on wool
that should advance its price.
If other industries had been equally
represented, for each one that represented
the woolen industry, there should have
been 140 to represent farmers; 25 to repre-
sent servants; 8 to represent carpenters;
2 to represent barbers, etc.
In framing the schedules of the tariff
act of 1909, our “industries” were not
equally represented. Carpenters, masons,
bookkeepers, bartenders, etc., did not
offer suggestions to the committee. Our
“voters” were faithfully represented. We
CROSS-EXAMINED 17
ordered Congress to maintain protection,
and agents of protected industries aided
Congress to carry out the will of the voters.
How A DUTY ENCOURAGEs
How does a duty on an imported ar-
ticle encourage an American industry :
To illustrate: Suppose an American shall
import one dozen pairs of stockings, cost-
ing in Germany one dollar. Suppose an
American manufacturer makes a dozen
pairs so similar that a United States ap-
praiser would value them at one dollar.
The duty of 85 cents on the German
stockings would advance the price from
the value $1.00 to the cost $1.85. The
importer must sell the dozen pairs for
more than $1.85 in order to do business
profitably. The American manufactured
stockings being similar could be sold for
more than $1.85. They were valued at
$1.00, but the duty on the imported stock-
ings enables the American manufacturer
to get 85 cents more than their value, and
18 TARIFF TEACHERS
that is called “encouraging the industries
of the United States.”
This does not mean that the American
manufacturer makes a profit of 85 cents on
a dozen pairs of stockings valued at $1.00,
but it means that the Americans who buy
them have to pay 85 cents more than their
value.
The duty 85 cents when paid by the
importer to the government is a revenue
duty, and when it enables an American
manufacturer to sell his productions at
any price above their value it is also a
protective duty.
PRIMARY TRUTH: A protective tariff ad-
vances the price of domestic articles, the
advance being paid to the protected industry
by the Americans who buy them.
CAUSE OF CONFUSION
After the tariff has been in effect several
years its work is not understood by 20,-
000,000 voters, for the reason that by con-
fusing us we have been led to think it a
CROSS-EXAMIN ED 19
very complex question in which funda-
mental truths do not remain true. In
studying the complex question we ought
to keep in mind the primary truth that a
tariff advances the price of an imported
article on which a duty is imposed, and in
some cases advances the price of domestic
articles. We ought to discriminate be-
tween the tariff that produces revenue, and
the tariff that protects. We ought always
to bear in mind that both a revenue tariff
and a protective tariff are an extra expense
to Americans who buy the goods they want.
The revenue tariff costs precisely what
the law imposes, and the protective tariff
costs an indefinite sum.
We have been confused by cries of
“Pauper Labor,” “Infant Industry,”
“Diversified Industries,” “Glorious Home
Market,” “Employment of Labor,” “Pur-
chasing Power,” “Tariff Reform,” “Re-
ciprocity,” “Equalizing Duties,” “Maxi-
mum and Minimum,” “A Tariff Commis-
sion,” etc. These cries have drawn our
20 TARIFF TEACHERS
attention from the primary truth that
“an advance in price of goods we buy.”
is the real appeal.
What creates a home market for the
sale of woolen manufactures : A pro-
tective tariff that advances the price of the
goods. What stops a woman from buying
a dress pattern for $3.00 and forces her
to pay $5.00 for a similar pattern ? A
protective tariff that by creating a home
market for the sale of goods creates also a
home market for the buyers of them.
What transfers a “Purchasing Power”
from the earnings of those employed in
self-supporting industries to the treasury
of industries that need protection ? Why
is a “Tariff Reformer” Why is a
“Treaty of Reciprocity” Why is a
“Equalizing Duties” Why is a “Maxi-
mum and Minimum” Why is a “Tariff
Commission”? “A protective tariff that
advances the price of articles that Ameri-
cans buy” is the answer to each and all
of the questions.
CROSS-EXAMINED 21
No PRINCIPLE
There are tariff reformers and there are
advocates of treaties of reciprocity. These
do not maintain either a principle or a
policy, but, when a tariff law is enacted,
they recommend changes. If in their
recommendations there were principle
or policy, their platform might be ex-
pressed as follows: “We believe the present
tariff causes sickness. We believe in sick-
ness, but not to the extent of our present
suffering. We therefore would revise the
tariff toward health. We believe health
would kill us and therefore we would have
the tariff treated by doctors who believe
in sickness.”
FREE TRADE NATURAL
Free trade is natural. We do not have
to vote for a law to enjoy free trade. We
do vote on a proposition to stop some free
trade. When in November, 1908, we
voted to maintain protection, we voted
22 TARIFF TEACHERS
to stop some free trade, and by the quali-
fying phrase, “with a reasonable profit to
American industries,” we voted to have
it cost those who do the protecting as rea-
sonable a sum as conditions would permit.
Is protection a wise policy It costs
something. The cost is paid to the owners
of protected industries. It is paid by
those who consume protected goods. We
cannot figure the exact amount of cost.
The owners of protected industries to
whom it is paid can make an estimate of
the cost closer than can be made by the
millions of consumers. We have their
estimates, a study of which should be in-
teresting to the voter.
In the platform of the Republican plat-
form adopted at Chicago, Ill., June 18,
1908, is the following declaration: “In
all tariff legislation the true principle of
protection is best maintained by the im-
position of such duties as will equal the
difference between the cost of production
at home and abroad, together with a rea-
CROSS-EXAMIN ED 23
sonable profit to American industries.”
In November, 1908, by a plurality of
1,200,000 votes, we approved that declara-
tion, thereby instructing Congress to revise
the tariff of 1897, and maintain protection
in the manner of the pledge. It was
proper for our representatives to ask
representatives of industries that wanted
protection to come before a committee and
explain to our representatives “the differ-
ence in cost” and the “reasonable profit.”
In response many experts in protected
industries gave testimony and advice to
the committee. Day laborers, servants,
professional men, carpenters, teamsters,
etc., did not appear, for their work has to
be “produced at home” and their “rea-
sonable profit” is a matter of agreement
with the managers of their industries.
Representatives of fourteen industries
of some importance and a few of less im-
portance appeared before the committee
and gave the information that resulted in
the tariff act of 1909. Among these ex-
24 TARIFF TEACHERS
perts were representatives of wool and
manufacturers of wool whose testimonies
and advice were accepted by Congress as
authority for imposing duties that “will
equal the difference between the cost of
production at home and abroad, together
with a reasonable profit to American in-
dustries.”
Mr. J. A. Delfelder, a wool grower of
Wyoming, said: “Wool product of Wy-
oming is 36,000,000 pounds,” “have been
in business since 1894,” “I had $960 when
I went into business,” “I am worth
$100,000 to-day.” “I ask that the tariff be
raised.”
“Mr. William Whitman, of Boston,
president of the National Association of
Wool Manufacturers, stated his associa-
tion asked for no reduction on raw wool,
and believed the existing rate should be
maintained.” He asked that the present
protection of wool manufactures be main-
tained, and said that “a reduction of the
tariff would reduce wages and profits.”
CROSS-EXAMIN ED 25
*
Mr. Theodore Justice, of Philadelphia,
Pa., said “the Dingley bill was all right
and should be maintained.” “The United
States can now make better and cheaper
clothing than England or Germany.”
He said, “The suit I have on, weighing 74
ounces, costs $6.69 to manufacture, and
the difference between free and protected
wool was 97 cents.” He showed that
“an American with four in family, buying
eight suits a year, was out of pocket;7.76 by
reason of tariff on wool,” and “to offset
this he has received 200 per cent more
than German wages.”
Congress enacted a law to protect the
wool and woolen industries precisely as
advised by Messrs. Delfelder, Whitman,
and Justice. While examining “Schedule
K” of the law we should bear in mind
that it is “our” law, that we ordered Con-
gress to enact it and that we have no cause
to complain of the act of Congress or the
advice of experts. If we kick, justice de-
mands that we kick only ourselves.
26 TARIFF TEACHERS
Cost OF PROTECTION
Congress imposed a duty of 11 cents a
pound on wool “to equal the difference
between cost of production at home and
abroad, together with a reasonable profit”
to wool growers. This difference of 11
cents a pound on 36,000,000 pounds, the
product of Wyoming, amounts to $3,960,-
000. This means that in the November,
1908, election 7,637,676 men voted that
Americans who buy the wool grown in
Wyoming must pay the wool growers of
that state $3,960,000 more than the value
of the wool, and also pay the same rate of
advance for wool grown in other states.
In 1900 the population of Wyoming
was 92,521, and the amount of advance
given to the wool growers was equal to a
gift of $42.80 to each man, woman, and
child in the state. This equals a gift of
$179.20 to a family of four. It does not
seem probable that 7,637,676 men would
vote to revise the tariffin that way. Never-
theless they did instruct Congress to pro-
CROSS-EXAMIN ED 27
tect wool growing, and Congress was in-
formed by Mr. Delfelder and others that
a duty of 11 cents a pound on wool was
absolutely necessary.
The reader may notice that Mr. Del-
felder started in the business of wool-grow-
ing in 1894, the year that wool was put on
the free list, and instead of having his
capital of $960 “wiped out,” he has accu-
mulated $100,000. We may notice this,
but we are under a moral obligation to
refrain from criticising him. He did not
force us to protect wool growing. We
forced him to get $100,000, more or less, to
encourage him to continue in the business.
The duty on ready-made clothing, ad-
vised by Mr. Justice and Mr. Whitman,
and imposed by Congress, is 44 cents per
pound, and 60 per centum ad valorem. On
a suit such as Mr. Justice wore at the exhi-
bition, the duty would be three and a half
times 44 cents, amounting to $1.54, and 60
per cent of $6.69, amounting to $4.01, mak-
ing a total of $5.55 on a suit costing $6.69 to
28 TARIFF TEACHERS
manufacture. The duty $5.55 is imposed
to stop Americans from buying an imported
suit that costs $6.69 to manufacture, when
our manufacturers are making better suits
for the same cost. As Mr. Justice said
that the United States can now make better
and cheaper clothing than England or
Germany, there is no need of a duty “to
equal the difference in cost of production
at home and abroad,” and therefore the
duty on clothing must have been imposed
to cover the “reasonable profit” principle
of protection. The reader may think
that a manufacturer’s profit of $5.55 on
a production costing $6.69 is unreasonable,
but he must not forget that we instructed
Congress to protect the clothing industry.
SENATOR LODGE's THOUGHT
In explaining the revised tariff, Senator
Lodge, in an address at Tremont Temple,
Boston, said: “There are 41,000 wage
earners employed in our worsted and
woolen mills, and, when my colleague
CROSS-EXAMINED 29
and I were called upon to deal with the
wool schedule, we thought of them first.”
Why should Massachusetts Senators
think of 41,000 Armenians, Greeks, Poles,
Canadians, and Americans, and forget
500,000 other Americans, Canadians,
Poles, Greeks, and Armenians, wage
earners in Massachusetts There is no
evidence in the revised law that Congress,
while considering the wool schedule, gave
a moment's thought to the clergymen,
teachers, bookkeepers, day laborers, team-
sters, etc.
The result of the special thought given
to 41,000 woolen mill operatives was im-
posing a duty upon articles that they buy,
thereby advancing the price, including
the goods that the 41,000 were making.
Congress had no authority to enact a law
taxing directly the wage earners of the
country and distributing the amount col-
lected to wage earners in a few industries,
but it had authority to advance the price
of goods that the wage earners of the coun-
30 TARIFF TEACHERS
try consume. Congress did impose a
duty on goods similar to those made by
the 41,000. The 30,000,000 wage earners
of the country have to pay an advance in
price of the goods made by the 41,000, and
it was hoped that a portion of the advance
might finally be given to the 41,000.
An industry is impersonal, and when
we voted to protect the woolen industry,
we voted virtually to impose duties that
shall enable the National Association of
Wool Manufacturers to sell to Americans
for $1.85 goods valued at $1.00. What-
ever kindness that Congress wished to do
for the 41,000 was done for the employers
of the 41,000.
We have mentioned particularly the
schedule of wool and wool manufactures,
and, as the treatment of other schedules
was similar, it may be accepted as a just
illustration of the intention of Congress in
enacting the tariff act of 1909.
While Messrs. Delfelder, Whitman, and
Justice were giving information and ad-
CROSS-EXAMIN ED 31
vice to Congress regarding wool, other
experts were giving information and ad-
vice regarding chemicals, earthenware,
metals, etc., and while Senator Lodge
was explaining the wool schedules, other
Senators were telling their constituents
how much they thought of the wage
earners in the borax industry, the cod-
liver oil industry, the porous plaster in-
dustry, etc.
WHAT we SEE
Let us examine the wool manufacturing
industry. We see a large factory. We
see “thousands of wage earners” em-
ployed. We know the wages of the opera-
tives make a “purchasing power” that
is spent for productions of our farmers
and our manufacturers. We know the
wage earners are paid higher wages than
is paid to the wage earners of Germany.
We know that we have to pay more for
the productions of the factory than the
world’s price of similar productions. In
32 TARIFF TEACHERS
his testimony before the Committee of
Ways and Means, Mr. William Whitman,
president of the National Association of
Wool Manufacturers, said: “The present
duties do not prohibit importations.”
“A reduction of the tariff would reduce
wages and profits.” In 1907 the average
duty on woolens collected by the govern-
ment was $89.42 on goods valued at $100.
Mr. Whitman affirms that a reduction
would reduce wages and profits. This
is also affirming that woolen manufacturers
are now selling for $189,42 their produc-
tions valued at $100, and would be so
valued by a United States appraiser. We
do not know, what would become of the
73,196 woolen mill operatives employed
in 1900, should we refuse to pay $189.42
to our manufacturers for goods valued at
$100. And we become confused. We do
not understand it. We forget primary
truths. We vote to protect the wool man-
ufacturing industry.
HE writer would come closer to the
readers. He asks them to assume
the character of pupils; not his pupils, but
simply pupils. This makes him assume
the character of teacher; not their teacher,
but simply teacher.
Pupils! In your study of the work of a
tariff, remember that God has given you
reason, a gift more valuable to you than
any that can be offered by a free trader, a
protectionist, or a political party. Should
there ever be a conflict between any teach-
er’s word and the pupil’s reason, the pupil
should trust his own reason. As you are
not my pupils, I do not address you as
freetraders nor as protectionists, but I
address you as voters, and I ask your at-
tention to a few short tariff studies.
34 TARIFF TEACHERS
A. CoMPARING INDUSTRIES
Why is the wool-manufacturing industry
taken to represent protected industries :
For the reason that it is considered an im-
portant industry, employing “ thousands
of workmen,” and the National Association
of Wool Manufacturers recommends pro-
tection to the extent of advancing the price
of its principal raw material. In every
agitation of the tariff we hear the im-
portance of the woolen mill.
In 1900 the teaming industry employed
538,933 workingmen, while the woolen mill
employed 73,196, but the importance of the
teaming industry has not been impressed
upon our minds. We may have met ten
men on the street and only one of them
attracted our attention. He was a beggar
who asked us to help him. The teaming
industry has not attracted our attention,
but the woolen industry has attracted us,
just as the beggar, by asking us to help
the “thousands of operatives.” Direct
CROSS-EXAMIN ED 35
•)
begging is prohibited in some states, but
indirect begging is made respectable by
United States law. -
Another reason that the woolen industry
is deemed important while the teaming
industry is overlooked is this: The woolen
industry is grouped while the teaming in-
dustry is scattered. The population of
the woolen industry in 1900 is comparable
with the city of Lynn, Mass., or Rich-
mond, Va., while the population of the
teaming industry is comparable with the
city of Boston or Baltimore. If the pupil
will look at the census table of occupations
he will see that the population of the
clerk’s industry was larger than that of
St. Louis, and the population of the car-
penter’s industry was fifteen times as large
as that of Lincoln, Nebraska. -
The relative importance of the woolen
industry and the teaming industry can be
seen by closing them. Close up the woolen
industry of our country immediately, and,
while there would be a disturbance of
sº *
**- A.
36 TARIFF TEACHERS
business in the vicinity of the mills, the
business of the country would continue.
We would not suffer for clothing, but
would have an abundant supply. Close
up the teaming industry and the business
of the entire country would be paralyzed.
Close up the teaming industry and the
woolen industry would have to close.
Some protected industry had to be taken
to illustrate protection, and we took the
woolen industry and shall continue to
use it as a representative protected in-
dustry.
PROTECTIVE TARIFF, A CLUB
If a man having twenty yards of dress
goodsworth $5 asked you to give him $8 for
the cloth, and on your refusal, if he seized
a club that your were carrying and raised it,
saying: “I am not a robber, but I am a
business man, and I demand that you
give me $8 and take the cloth,” you might
open your eyes. By aid of a protective
tariff, a club that you gave him – that
CROSS-EXAMIN ED 37
man for several years has made you pay
$8 for cloth that is sold in the markets
of the world for $5. He is sometimes
unjustly called a robber, but he is a busi-
ness man using advantageously a club
that you, by your votes in November, 1908,
instructed your representatives to leave
in his possession for future use in selling
his productions. Respect Congress for
obeying your instructions. Respect the
woolen manufacturer for selling you
goods at your price. When you shall open
your eyes, you may revise your instructions.
The thought still haunts you; what will
become of the operatives if we do not
protect the woolen industry : . If they
shall be thrown out of employment, it will
be proof positive that our farmers can, as
traders, supply us with woolens from
abroad at a lower price than we are now
paying. It would be proof positive that
we are depriving farmers of a natural
profit in trade, that the woolen manufac-
turers may receive an unnatural though
38 TAR IFF TEACHERS
“reasonable profit.” It would also be
proof that we are now supporting the
73,196 operatives in a way similar to the
way we are supporting 80,000 people in
almshouses, the dissimilarity being that
while we support the 80,000 by direct
taxation, we support the 73,196 by indi-
rect taxation.
“WHAT WILL BECOME OF THEM f"
This question has been and still is a
favorite one of protectionists, and is usually
asked as a lamentation. We do not know
what will become of any workman when
he shall leave any industry, and the ques-
tion cannot be answered specifically.
During the year 1907 there were 1,147,-
005 immigrants over fifteen years of age
who entered our country. On their arrival
there was not a protectionist standing at
the wharf bewailing and crying, “What
will become of you ?” They entered our
country and a vast majority of them have
CROSS-EXAMIN ED 39
earned their living and contributed to the
support of the woolen industry.
If an intended immigrant was not able
to earn a living, our government officials
would not allow him to land. If he had
pleaded with the officers and declared his
ability to earn nine tenths of a living while
our prosperous workingmen would con-
tribute one tenth, he would not be allowed
to enter our country. That is the way we
treat an individual, but to an “industry”
confessing its inability to earn a living we
give a different treatment. We have
welcomed it, we have nourished it, we have
encouraged it, and in response to its con-
tinuous confession of inability to earn a
living, we continue the encouragement.
We give it $1.75 for each dollar it earns.
If 1,147,005 foreigners can come into
our country in one year and earn a living,
the 73,196 operatives, some of whom have
been here ten years, should be as able,
and, though we may not know what will
become of them, there is no need of lamen-
40 TARIFF TEACHERS
tations over the conundrum. During the
ten years 1898–1907, there were 6,334,381
immigrants over fifteen years of age who
entered our country. What has become of
them While there has been lamentation
over the thought of 70,000 workmen
“thrown out of employment,” ninety times
70,000 have come into our country and
found employment.
CREATING A PURCHAs.ING POWER
5
You see a “purchasing power” in the
$25,000,000 wages paid to woolen mill
operatives. You see that it will be used
by the operatives to buy their wants. You
see that this purchasing power will benefit
other industries, and because you do not
keep primary truths in mind, you vote to
create that purchasing power.
§ Suppose, for illustration, a meteorite
dropped on my land and it proved to be
worth $25,000,000. However frugal I
might be, there is no doubt that the com-
munity would receive a benefit. Protec-
CROSS-EXAMINED 41
tionists look at the $25,000,000 that drop
into the possession of the woolen manu-
facturers, precisely as you look at the
meteorite, but the $25,000,000 they re-
ceive does not drop from the sky. It is
the accumulation of the nickels, dimes,
and dollars that in a continuous perform-
ance you drop from your earnings into
their treasury. After you drop it into
their treasury, you see the mansions, the
automobiles, the servants, and the benefit
to the community, and you forget that it is
your nickels, your dimes, and your dollars
that is doing the work, for you see the
factory and your dimes have passed from
your sight.
DUTY ON DRESS GooDs
The duty on dress goods valued at 15
cents a square yard is 14% cents a square
yard. The president of the National
Association of Wool Manufacturers told
the Committee of Ways and Means that,
if that duty was lowered, it would reduce
42 TARIFF TEACHERS
wages and profits. This is asserting that
the manufacturers are now taking the full
amount of protection. It is saying that
for a dress, pattern valued at $1.50 the
manufacturers receive $2.95. If you have
to work six hours to earn the $1.50 to pay
for the value of the goods, you have to work
five additional hours and 48 minutes to
earn the $1.45 to give to the manufacturers
to encourage them. This you do because
you have heard the cry “competing with
foreign pauper labor.”
CoMPETITION
If you earn 25 cents an hour, you have to
work six hours to earn a dress pattern
valued at $1.50 by United States appraisers.
You do work eleven and four fifths hours
to pay our manufacturers for a similar
dress pattern. In one case you work six
hours, in the other you work eleven hours,
and in either case you receive $1.50 in goods.
Instead of competing with foreign pauper
labor, you are competing with your own
CROSS-EXAMIN ED 43
labor. You reduce the exchange value of
your own wages from 25 cents an hour to
13 cents an hour for the eleven hours you
work to earn the value of the goods you
want. You stop the importation to en-
courage our manufacturer and give him
“a reasonable profit.” You refuse to
give six hours of your labor for goods
made by foreign “pauper labor,” and you
make pauper laborers of yourselves for
eleven hours to get similar goods of the
same value. While you 20,000,000 voters
have been confused to believe that the
wage earners of the United States are
competing with “the pauper labor of
Europe,” you, when buying protected
woolen manufactures, have been compet-
ing with your own labor.
How To EQUALIZE WAGEs
Our woolen manufacturers unassisted
cannot compete successfully with foreign
manufacturers in the sale of woolens.
They say it is on account of the low wages
44 TARIFF TEACHERS
paid abroad. There are two ways to
“equalize” wages. One way might be toº
advance the wages of foreign operatives.
This we cannot do. The other way is to
reduce the wages of our operatives. This
we do not do. And, nevertheless, our
manufacturers sell their productions to
Americans. This is done by a protective
tariff that reduces the exchange value of
your money wages.
Six hours of your labor at 25 cents an
hour should buy cloth valued at $1.50.
Your employer does not reduce your
wages. He pays you 25 cents an hour,
but a protective tariff reduces its exchange
value, so that it takes $2.95 to buy cloth
valued at $1.50. You now exchange 11
hours of your labor for cloth worth $1.50,
thus making the exchange value of your
labor 13 cents an hour.
A protective tariff does not advance
foreign pauper wages. It does not reduce
the wages of workmen in protected in-
dustries. It does reduce the exchange
CROSS-EXAMIN ED 45
value of your labor for the time you work
to pay for the protected article you buy.
B. REDUCING ExPENSE IS NOT
REDUCING WAGEs
You have been told that your wages
would be reduced if you do not protect the
woolen mill.
Is a primary tariff truth true when you
are told what may happen if you do not
protect the mill Is the tariff an ex-
pense to you ? Is buying a cigar an ex-
pense ? Is paying for amusement an
expense Is losing a dime an expense
Would your wages be reduced if you
should stop buying cigars, stop going to
theatres and games, stop losing dimes :
Would your wages be reduced if you should
stop expense The woolen mill prospers
for the reason that it is an extra expense to
you caused by protection. Would your
wages be reduced if you stopped extra
expense : Does the word of any teacher
who says that stopping an expense will
46 TARIFF TEACHERS
reduce your wages conflict with your
reason f
It is the fact that you have wages that
you do incur expenses of cigars and amuse-
ment. It is for the fact that you do have
wages that you are asked to pay the ex-
pense of a tariff protecting the woolen mill.
You have the wages, and by stopping ex-
pense you might deposit the amount saved
in a bank.
Expend $10 for cigars; you think you
get the benefit. Expend $10 for amuse-
ment; you think you get the benefit. Lose
$10 and the finder gets the benefit. Ex-
pend $10 for protecting the woolen mill,
and the National Association of Wool
Manufacturers gets the benefit. The
cigar manufacturer and the amusement
provider give you a satisfying equivalent.
The finder of your $10 and the National
Association of Wool Manufacturers give
you nothing.
Your wages gave you a purchasing
power of $40. You used $20 of it in pur-
CROSS-EXAMINED 47
chasing what you wanted. You trans-
ferred the remaining purchasing power
to the finder of it, and to the woolen manu-
facturer for them to use in purchasing
their wants. From your earnings in the
year 1907 you transferred a purchasing
power of $3,960,000 to the wool growers
of Wyoming, and they asked Congress to
enact a law requiring you to transfer a
larger portion of your earnings. Would
your wages be reduced if, instead of trans-
ferring $3,960,000 of your earnings to the
wool growers of Wyoming each year, you
deposited it in savings banks, or used it
as a purchasing power for your own bene-
fit The $3,960,000 is deposited in banks
by the Wyoming wool growers. You
clergymen, physicians, teamsters, rail-
road employees, bookkeepers, clerks,
masons, carpenters, day laborers, ser-
vants, etc., receive wages, and when you
buy woolens you pay for the wool, and in
addition you pay the expense of protect-
ing wool growing amounting to $3,960,000
48 TARIFF TEACHERS
for the state of Wyoming alone. Would
your wages be less if you should stop the
expense ?
C. PROSPERITY CAUSED BY
ExPENSE
During the year ending June 30, 1907,
our government paid expenses amounting
to $762,488,753 and added $84,236,587 to
the treasury. That was prosperity. The
government did not earn one cent, but it
prospered. You made it prosper. You
were continuously paying to the govern-
ment duties and taxes of two cents, five
cents, etc.
Our army and navy, our senators and
representatives, our clerks and pensioners,
our president and judges, do not earn money
for our government to spend, but our
government gives them money that you
earn. You are willing to earn money to
give to the government, and you have
voted to earn money to give to protected
industries. You had to have employment
CROSS- EXAMIN ED 49
to earn six cents to buy a pound of sugar
before the government could collect the
two cents tax from you. Your wages were
six cents, and if you should pay the gov-
ernment only one cent or nothing your
wages would still be six cents. Reducing
your expenses does not lower your wages.
Protectionists say that reducing taxes
that you pay to protected industries will
lower your wages. If their statement
conflicts with your reason, it is for you to
choose which shall be your guide.
Our government is an expense to you.
When our representatives appropriate
money collected from you for erecting a
government building, for battleships, for
dredging harbors, for the army and navy,
for pensioners, etc., they intend to spend
the money for your benefit.
Protected industries are an expense to
you. The officials to whom you contribute
a portion of your wages do not spend it
in your interests. When they appropri-
ate money for mansions, automobiles,
SO TARIFF TEACHERS
etc., it is not intended for your benefit.
Occasionally a protected official may give
his native town a library which is intended
for your benefit. There is a building in
Washington, D. C. It is ours. It was
paid for with money that we earned.
There is a castle in Scotland. It is “his.”
It was paid for with money that we earned.
Our government prospers, and our pro-
tected industries prosper. The Salva-
tion Army prospers and the barrooms
prosper. The government and the pro-
tected industries prosper by force of law.
The Salvation Army and the barrooms
prosper by our individual choice. They
are each and all an expense to us. If we
choose, we can stop every expense but
that of the government, and that we can
regulate.
D. A PROTECTIONIST’s
DEFINITION
I have said “A protective tariff advances
the price of domestic articles,” but I am
CROSS-EXAMIN ED 51.
not a protectionist. It is only fair to give
a protectionist's definition.
The Home Market Club, Col. Albert
Clarke, secretary, publishes a magazine
whose purpose is to inform readers. In
the June, 1906, number of The Protec-
tionist, protection is thus defined: “Its
object is not wholly to exclude foreign
goods, but only to put them on a cost
level with domestic goods in the home
market.” To further define it The Pro-
tectionist indorses the words of Joseph H.
Walker: “It requires the foreign producer
to pay the United States treasury the money
that he has saved by not paying his work
people so much as we pay ours.” No
one is more competent than the Home
Market Club to give a protectionist's
definition of protection.
Protectionists enacted the tariff of 1897
and the tariff act of 1909. Each of these
laws provides: “That when imported
materials on which duties have been paid
are used in the manufacture of articles
52 TARIFF TEACHERS
manufactured or produced in the United
States, there shall be allowed on the ex-
portation of such articles a drawback equal
in amount to the duties paid on the mate-
rials used, less one per centum of such
duties.”
Now why should the United States give
the drawback to the exporter, if the for-
eign producer had paid the duty :
American travelers returning from for-
eign countries and bringing dutiable goods
affirm that they are required to pay the
duty.
You might wish to know the motive of
the Home Market Club in saying that
protection requires the foreign producer
to pay the duty, and at the same time in
aiding Congress in framing a law demon-
strating error in its definition.
Whatever may be the motive, it serves
to confuse and hold you in the condition of
not understanding the work of a tariff.
Why should you care for the motive of a
club that tells you the foreign producer
CROSS-EXAMIN ED 53
pays the duty, when our government re-
funds the amount of duty to the American
who paid it
The United States census reports show
that in the Massachusetts clothing in-
dustry for the year 1904, on the production
of goods valued at $10 there was paid
$1.38 as wages. The duty on imported
woolen clothing valued at $10, and weigh-
ing five pounds, is $8.20. If the object of
protection be to put foreign clothing “on
a cost level with domestic goods,” the
“Home Market Club” when urging Con-
gress to impose a duty of $8.20 to equal
the difference in cost of production at home
and abroad with a reasonable profit, must
have reckoned high on “reasonable profit.”
E. THE CONTRACT OF PROTECTION
Thus far I have used the woolen in-
dustry to represent our protected indus-
tries, but as no woolen manufacturer has
admitted that he has accumulated a suffi-
ciency of wealth, I take the steel industry
54 TARIFF TEACHERS
to illustrate the contract made by Ameri-
cans when they vote to protect it.
Mr. Carnegie, a protectionist, and a
competent judge of the steel industry, said
that it no longer needed protection.
When that industry was in its infancy,
it confessed its inability to pay expenses,
and we, by a protective tariff, contracted
to pay its expenses until it should grow
to be self-supporting. It was still drawing
expenses when Mr. Carnegie began his
successful career in the steel industry.
We continued to pay the expenses until,
as Mr. Carnegie says, it is self-supporting.
The steel industry has prospered and
has gained wealth of $1,000,000,000 in
possession of one owner, $500,000,000 in
possession of another owner, $250,000,000
in possession of another owner. And so
on till we come to an owner possessing but
$50,000.
You made yourselves partners in the
business, but should you seek a dividend,
you would awaken to the fact that, by
CROSS-EXAMINED 55
your contract, you furnished funds for
development expenses, that you have been
paying assessments yearly for further
development, and that the tariff act of
1909 continues to assess you, while divi-
dends are paid to the owners of the in-
dustry who are not ready to cry “Enough!”
You are partners in the business of a
protective tariff, you furnish the money
for expenses and the only dividend you
receive is the declarations of the owners
of a protected industry that your refusal
to pay expenses would result in a reduc-
tion of wages and profits, and that you
yourselves would be out of employment.
This teaches you to say that you do not
understand the work of a tariff.
F. LEsson OF THE LUDLow
STRIKE
The Boston journal, November 30,
1909, has a story of labor trouble in Lud-
low, Mass. The writer of the story says:
“This morning Michael Kissell, leader
56 TARIFF TEACH ERS
of the Polish residents called a meeting
of the strikers.” “They voted to lay
before the immigration authorities the
prospectuses that reached them in far
away Poland extolling the virtues of
Ludlow and its principal industry.” The
correspondent writes that Agent Stevens
gives the company's side as follows: “We
were hard hit by the tariff in not being
amply protected from Indian competition.
They work for seven or eight cents a day
there and we were forced to curtail the
cost of labor production.”
There are two ways for a tariff student
to criticise this story. To criticise it as a
protectionist one would say: “Protection
has built up a large industry in Ludlow,
employing 2,700 American workmen who
receive good wages and are good consumers
of American productions. Many of them
starting in poverty now have pianos in
their homes. Their productions are sold
in our home market and we keep the trade
ourselves. We don’t know what would
CROSS-EXAMIN ED 57
become of them if we should cease to
protect the owners of the industry.”
An anti-protectionist would criticise as
follows: “The productions of this industry
are sold to Americans. Therefore Ameri-
cans, when they buy them, pay the cost
of material, wages, expenses, and profits.
Were it our principle to admit foreign goods
free, Americans could hire the Indian
workmen to do our work in their country
for eight cents a day. The policy of pro-
tection forbids this opportunity and causes
circulars to be sent to Poland to induce
Poles to come here and receive wages $1.25
a day for work we might have had done
for eight cents. In one day’s work of
one wage earner, protection has made it
cost $1.17 more than free trade. There is
no controversy over a statement that, if
an American loses $1.17 and a Pole finds
it, the Pole is benefited. Inducing Poles
to come to Ludlow to work is not protecting
American labor. It is robbing American
labor to protect Poles.”
58 TARIFF TEACHERS
These two criticisms are intended to be
such as the pupil has heard in campaigns
of education. The statements of the pro-
tectionist and the anti-protectionist are
true. The Ludlow manufacturer pays
wages $1.17 a day more than the Indian
wages. There are 2,700 employees, and
2,700 times $1.17 amounts to $3,159.
When Americans buy one day’s produc-
tion of the Ludlow factory we have to pay
$3,159 more than the value of the goods
to equalize cost of labor at home and .
abroad.
The cost of labor of 2,700 men at 8 cents
a day is $196, and at $1.25 a day it is
$3,375. The Republican party, in its plat-
form of June 18, 1908, declared that the
true principle of protecting the Ludlow
manufacturer is to impose duties that shall
make the American buyers pay $3,375 a
day for work they could hire for $196, and
in addition give the manufacturer a rea-
sonable profit. “The true principle of
protection” makes you who buy the Lud-
CROSS-EXAMINED 59
4
low production pay $1.25 for labor when
you can buy fifteen times as much labor
for $1.25. One reason that you do not
understand the work of a tariff is that you
do not understand how the true principle
of protection is a benefit to those whom
it injures, and as you do not understand
it you vote for protection.
Wool growers, the National Association
of Wool Manufacturers, the Ludlow As-
sociates, clothing manufacturers, and
others understand the true principle of
protection. It encourages them, and
every dollar of encouragement that it gives
to them is the price you will pay for in-
struction until you do understand.
G. A TARIFF COMMIssion
If we shall continue to make the tariff
a partisan question, “a tariff commission”
may serve to hold voters from a suspicion
that protection is an unjust policy. “A
tariff commission” is an additional con-
fusion which we do not understand.
60 TARIFF TEACHERS
A tariff advances the price of articles
that we want to buy and a few individuals
want to sell. A tariff commission may
recommend a higher advance or a less
advance.
One purpose of a protective tariff is “to
give employment to labor” in a protected
industry. The commission may travel in
foreign countries, and may study for years.
They may learn many truths that Con-
gressmen do not know, but they cannot
create a call for a clergyman, doctor, or
teacher. They cannot provide work for
a servant, a day laborer, a motorman,
nurse, clerk, salesman, or merchant. They
cannot create a job for carpenter, mason,
painter, plumber, butcher, or blacksmith.
All they can do is to advise Congress how
much to advance the price of protected
goods so as to maintain the “true principle
of protection.”
It is protectionists who want a tariff
commission, and the usual reasons given
by protectionists apply to the commission.
CROSS-EXAMIN ED 61
“It will give employment to a dozen men
at good wages. They will have a purchas-
ing power of $200,000. We don’t know
what will become of them if we don’t em-
ploy them in the tariff commission in-
dustry, and we may have our wages
lowered if we don’t hire the commission.”
One reason given by enthusiasts for a
tariff commission is that Germany has had
one and she has made wonderful progress
in export of manufactures.
With all this progress under the advice
of a commission, protectionists affirm that
the wage earners of Germany are paid only
one third the wages paid in the United
States, thus confirming the statement that
a tariff commission can do nothing for
clergymen, servants, carpenters, etc.
CoMMIssion of 1866
In 1866 the United States had a com-
mission to devise the best means to raise
money for the government, and a portion of
their duty was that of a tariff commission.
62 TARIFF TEACHERS
The chairman was David A. Wells, who
visited foreign countries and studied
various means of raising money for govern-
ment expenses. He left the United States
as a protectionist. He returned as an
anti-protectionist. Our prosperous, pro-
tected infant industries had no further use
for such a commission. Congress then,
as now, accepted advice of the Delfelders,
the Whitmans, and the Justices of 1867,
and we may reasonably expect that in the
next revision of the tariff by protectionists,
the advise of a tariff commission will have
to be approved by the Delfelders before
accepted by Congress. If, however, we
are to continue to maintain the true
principle of protection, let us have a com-
mission. It cannot advise a worse tariff
than Congress constructs in response to
your votes. .
It would be better that you be your own
commission to advise Congress to revise
the tariff by introducing a schedule whose
purpose is to attract the first thought of
our representatives to yourselves.
CROSS-EXAMIN ED 63
H. INNOCENT VOTERS OF A MAssACHU-
SETTS CITY
The officials of a Massachusetts city
appropriated $10,000 for the improvement
of one of its streets. The matter was re-
ferred to the people who voted against the
appropriation. The amount, $10,000,
would have been provided for by taxing
the wealth of the city, and though some
property owners voted against the appro-
priation, it was killed by the votes of those
who would not have been assessed one
Cent.
In November, 1908, by a very large ma-
jority this city voted to take from its citi-
zens $200,000 yearly to improve the con-
dition of the treasuries of various protected
industries outside the city limits. Those
voters who would not have had to pay one
cent of the $10,000 appropriation will
have to pay $100,000 of the amount given
to outside industries, for the reason that
they consume one half of the productions
64 TARIFF TEACHERS
of those industries that are consumed in
the city. -
This city of 15,000 population paid in
1907 a tax of $3.84 each to the govern-
ment as given in United States statistics.
That makes an amount of $57,600 paid to
the government, and the estimate $200,000
paid to protected industries is conserva-
tive. The pupil, however, should make
his own estimate. The United States is
filled with cities and towns, all of which
have to do what the Massachusetts city
voted to do to encourage industries “with
a reasonable profit.”
The owners of protected industries in
Lawrence, Mass., and Philadelphia, Penn.,
and the wool growers of Wyoming and
Montana, can stand this condition as long
as the voters of our country shall thrust it
upon them.
A PICTURE
If I were to illustrate this, showing the
mighty injustice that is also thrust upon
CROSS-EXAMINED 65
sufferers, I would present a picture of a
widow with three children, in the Massa-
chusetts city, working nights to earn money
to buy stockings and clothing for her
family, and forced by our voters to hand
five dollars a year to the owners of the
hosiery factory and the woolen mill. I
would then show the automobiles in Law-
rence, Philadelphia, Wyoming, and Mon-
tana, bought with her money and the
money of other working women and men.
And lest you might misinterpret the pic-
ture, I would show you the 7,637,676 voters
who, in November, 1908, instructed our
representatives to enact a law that would
inspire such a picture.
I. PRODUCING OR MANUFACTURING
Pupils should notice in the declaration
of protectionists the expression, “differ-
ence between cost of production at home
and abroad,” and learn to discriminate
between “producing,” and “manufac-
turing.”
66 TARIFF TEACHERS
Stockings may be “manufactured’ in
Pennsylvania or in Germany. They
are “produced” in New York by traders.
Wool may be grown in Wyoming, or in
Australia. It is produced in Boston by
traders.
The true principle of protection is to
make it cost traders to produce stockings
and wool as much, or more, as it costs
manufacturers to produce them.
Suppose a farmer shipped to Germany
productions which he sold for gold, and
with the gold bought stockings which he
shipped to New York. He is the pro-
ducer in the United States of stockings
made in Germany. For the very reason
that the farmer, as a trader, can produce
in the United States the stockings that
our people want, and produce them at a
less cost than our manufacturers “the true
principle of protection” imposes a duty
that shall stop the farmer and encourage
the manufacturer. Protecting the manu-
facturer is discouraging the farmer and
CROSS-EXAMINED 67
depriving him of a profit he might get as a
trader. -
Now if conditions wereº reversed, if
manufacturers could produce stockings
at a lower cost than farmers, would you
prohibit the manufacturer Would you
tell the manufacturer that he shall not
make stockings, for you wish the farmer
to get the profit If conditions were re-
versed would you protect the farmer ?
Would you give the farmer $1.85 for stock-
ings that the manufacturer offered for one
dollar *
J. An INCREASE OF 20 CENTS
CoSTs 85 CENTS
Duties were increased on several articles
by the act of 1909, and the reason for the
increase was “to increase the manufac-
ture of goods in the United States.” As
an example of the increase, the duty under
the law of 1897 on cotton stockings valued
at $1.00 per dozen pairs was 65 cents per
dozen pairs. In the tariff of 1909 this
68 TARIFF TEACHERS
duty is 85 cents per dozen pairs. This
may seem to make the stockings made
here cost the consumer just 20 cents more
than under the law of 1897, but let us
examine closer.
An average man is willing to pay his
portion of tax to raise revenue for expenses
of the government, which portion we will
assume to be $4.00 for illustration. When
under the law of 1897 he paid $1.00 for
value of stockings he also paid 65 cents
of his tax. When under the law of 1909
he shall pay $1.00 for value of stockings
he will have to pay 85 cents to our manu-
facturer, and he is still owing $4.00 to the
government. The revised law requires
him to pay 20 cents more, and owe the
government 65 cents more than was re-
quired by the law of 1897. Although the
advance of duty is 20 cents, the revision
costs the consumer 85 cents.
CROSS-EXAMINED 69
K. SENATOR LODGE's REASON
FoR PROTECTION
Senator Lodge in closing his address,
to which I have called attention, said:
“Abolish your protective duties and all
the cheap labor of the world will rush in
in the form of manufactured goods. That
is the whole case. That is why I am a
protectionist.”
This is worthy of the closest study, and
the pupil can afford to spend time and
thought in giving it an analytical exami-
nation.
“Abolish your protective duties” and
only those industries that are dependent
upon duties that advance the price of
their productions will suffer.
“Abolish your protective duties” and
10,000,000 farmers will keep right on
working. The iron and steel industry,
the manufacturers of agricultural imple-
ments, sewing machines, typewriters, au-
tomobiles, watches, chemicals, cotton
5
70 TARIFF TEACHERS
goods will continue to manufacture to the
extent of their export trade, and they will
continue to manufacture for us, if they will
sell at prices such as they get abroad.
Abolish your protective duties and clergy-
men will continue to preach, doctors to
practice, teachers to teach, carpenters,
masons, painters to build, teamsters to
team, railroad employes to work, barbers
to shave, servants to serve, day laborers to
labor, policemen, watchmen, and firemen,
to watch, retail dealers to deal, salesmen
to sell, commercial travelers to travel,
bookkeepers to keep books, typewriters
and stenographers, agents, brokers, bank-
ers, blacksmiths, plumbers, shoemakers,
dressmakers, milliners, and those engaged
in a hundred other occupations, to con-
tinue to work, and they will buy their
wants at prices not advanced by the pro-
tective duties.
Why will there be a rush in of manu-
factured goods if we abolish the protective
duties : Only for the reason that our
CROSS-EXAMINED 71
consumers want them. Why should you
be frightened at a rush in of goods that you
want to buy Why should you be fright-
ened at a saving of expense
Suppose that every time the tide ebbs
and flows it left upon our shores the goods
you wanted, would you accept them :
What matters it to you whether there be
no labor or “cheap labor” in those goods :
The ocean does not give you an oppor-
tunity to save one hundred per cent in the
cost of your clothing, hosiery, woolens,
and underwear, but, by allowing our
farmers to “produce” them from across
the ocean, you can save from 50 per cent
to 75 per cent in the cost. “The true
principle of protection” forbids the saving.
In that portion of Mr. Whitman's testi-
mony which is published in the Congres-
sional Record he said: “A reduction of
the tariff would reduce wages and profits,
causing the industry to lose capital.”
Accepting his knowledge as authority,
we must admit that “abolish your protec-
72 TARIFF TEACHERS
5
tive duties” would throw out of employ-
ment the 41,000 wage earners in the woolen
and worsted industry of Massachusetts.
They are able-bodied men, women, and
children who will be out of employment
should you cease to support them, and in
addition give Mr. Whitman “a reasonable
profit.”
You are now supporting 80,000 men,
women, and children in almshouses.
You do this for the reason that they are
not able bodied. If they were able bodied
would you continue to support them,
even though the overseer of the poor
should tell you that without your support
they would have to leave the almshouse and
he would lose his salary
It is not I who says that the wage earners
in the woolen industry are supported as
paupers. It is the president of the Na-
tional Association of Wool Manufacturers
who says it, and Congress endorses his
sentiments by enacting a law which forces
you to support them and give the manu-
CROSS-EXAMINED 73
facturers a reasonable profit.
“Abolish your protective duties” and
you will have no able-bodied men to sup-
port as paupers. You cannot gain in
wealth by increasing the number of persons
you support.
MAXIMUM AND MINIMUM
The tariff act of 1909 authorizes the
president, by proclamation, to impose an
additional duty of 25 per cent ad valorem
on dutiable imports from a foreign country
whose acts, in his judgment, do not give
the United States a “square deal.” This
additional 25 per cent is the maximum.
It is human and it seems just to punish
a foreign country that seems to be punish-
ing us, but it is wise to examine the effect
of the maximum duty in its punishment.
To illustrate: Germany buys American
meat products. The United States buys
German stockings. These meat products
and stockings are bought by importers,
74 TARIFF TEACHERS
not for the governments, but for the citi-
zens of the two countries.
Now, if in the judgment of the
president he shall decide that Germany
is not giving our meat products a square
deal, he may impose on German stockings
valued at $1.00 per dozen pairs a duty
of $1.10 per dozen pairs. That is to say,
the president by proclamation may ad-
vance the price of stockings that Ameri-
cans buy. That is to say, the president
is authorized to punish Americans until
Germany gives Armour a square deal.
While it may at first seem that a maximum
duty would be punishment to Germany
for her treatment of Armour, it is punish-
ing Americans who wear stockings.
The minimum duty on stockings valued
at $1.00 per dozen pairs is 85 cents per
dozen pairs. The maximum duty on
same is $1.10 per dozen pairs.
The minimum duty advances the price
to $1.85. The maximum duty advances
the price to $2.10. Stockings might be
made free and the price $1.00.
CROSS-EXAMINED 75
If you were permitted to buy stockings
for one dollar per dozen pairs, would you
choose to pay $2.10 per dozen pairs until
the president is satisfied that Germans are
buying Armour's meat products
It is probable that you do not buy a
dozen pairs of stockings at one time, but
you might buy several dozen pairs before
Germany's tariff would permit her citi-
zens to afford the luxuries that Armour
supplies.
If a German, either by his own choice
or by force of law, will not buy American
beef, pork, lard, etc., will you, by your own
choice refuse to buy from a German for
one dollar an article that you want, and
pay a price varying from $1.85 to $2.10
for a similar article : . Under the plea of
forcing a foreign country to buy American
goods, the tariff of 1909 authorizes the
president to force Americans to pay the
penalty of an additional 25 per cent as
long as it may please that country to punish
her citizens.
76 TARIFF TEACHERS
THE PRESIDENT’s VIEws
The president speaking to the Repub-
lican Club in New York, February 12,
said: “We did revise the tariff.” “Noth-
ing was expressly said in the platform
that this revision was to be a downward
revision.” “The one substantial defect
in compliance with the promise of the
platform was the failure to reduce woolens.”
“The present customs law is the best
customs law that has ever been enacted.”
He said that the first six months of the
operation of the Payne law show a reduc-
tion of rates on dutiable imports of 12
per cent and an enlargement of about the
same percentage of the free list.
The president is the chosen representa-
tive of protection, and his praise of the
Payne law should be regarded as the pro-
tectionists’ boast which may properly be
criticised.
In the beginning every article was on.
the free list. A tariff has taken 4,500
CROSS-EXAMIN ED 77
articles from the free list, and protection-
ists boast of restoring a few. Now, if
you had $10, and if a thief stole $8 from
you, though you might be thankful for $1
that he restored, you would still be a loser
of seven dollars. So, if protectionists
boast of restoring articles to the free list,
there are 4,000 articles not restored.
Protectionists boast of a “12 per cent”
reduction of rates on dutiable imports.
Such a reduction will be a benefit to you,
or it will be an injury. Protectionists are
not boasting of the injury, and therefore
they boast of the benefit they do you by
reducing the rates on dutiable imports
12 per cent.
If reduction of 12 per cent is a benefit
to you, there is reason for you to think
that a reduction of 25 per cent, of 50 per
cent, or of 100 per cent, would be a much
greater benefit. When protectionists wish
to “encourage industries,” they say “pau-
per labor” and impose duties of per cent
even above one hundred, and when they
78 TARIFF TEACHERS
wish to encourage you they boast of a re-
duction of 12 per cent, when there was a
possible reduction of 100 per cent. This
boast is virtually a confession that a duty
on imports cannot encourage industries
and at the same time encourage you. You
voted to encourage industries. Protec-
tionists obeyed. They imposed duties on
imports to encourage industries, and they
hope to encourage you by telling you that
they reduced the rates a little in spots.
FAILURE TO REDUCE WoolENs
Protectionists did not promise to revise
the tariff on woolens downwards. The
president of the National Association of
Wool Manufacturers, Mr. William Whit-
man, informed the Committee of Ways
and Means that “a reduction of the tariff
would reduce wages and profits.” Mr.
Whitman ought to know the cost of manu-
facturing woolens better than Congress-
men who are not members of his associa-
tlC)1).
CROSS-EXAMIN ED 79
*
If President Taft spoke his personal
views when he said “the one substantial
defect in compliance with the platform
was the failure to reduce woolens,” then
he evidently does not believe the testi-
mony of Mr. Whitman. If the president
spoke as the chosen representative of
protectionists, then protectionists dis-
credit their own witnesses.
I ask pupils to bear in mind that no-
where in the preceding pages has a free
trader called a protectionist a liar. When
I have tried to show you that the tariff on
woolens should be removed, it was done
by accepting the testimony given by pro-
tectionists. If it be necessary that pro-
tectionists must lie in order to get encour-
agement, possibly that may be the reason
that you do not understand the work of a
tariff. The president as representative
of protectionists, when he speaks of the
failure to reduce the tariff on woolens,
warns you 20,000,000 voters to beware of
the testimony of protectionists.
80 TARIFF TEACHERS
The president also said: “It will doubt-
less take the actual operation of the tariff
bill several years to show to the country
exactly what the legislation and its effects
are.”
Noting especially the time, “several
years,” pupils will find pleasure in criticis-
ing this and learning the wish and hope
of protectionists. A free trader might say
that when protectionists have constructed
a tariff that so exemplifies their policy,
they may well adopt for their slogan the
maxim, “Procrastination is our best
policy.”
L. How REVENUE MIGHT BE
RAISED
You want to know how we could raise
tº C & º *
revenue if we “abolish your protective
duties.” All protectionists, and many
so-called free traders, want to know how
we could raise revenue, if we abolish pro-
tective duties.
As the revenue raised by a “protective
CROSS-EXAMINED 81
duty " is paid to the owners of protected
industries, we shall not have to raise that
revenue, if we abolish the protective duty.
The revenue that our government collects
is not raised by a protective duty, but by a
revenue duty. If you intended to learn
how we could raise revenue for the govern-
ment, if we abolish revenue duties, the
intention is worthy of consideration.
Before you seek this information you
should be convinced that by the tariff you
are not only supplying revenue to the
government, but also to the owners of
protected industries. If this be your un-
derstanding, and if you wish to continue
to supply such revenues, vote for a revenue
tariff, and also for “the true principle of
protection.”
The Republican platform adopted at
Chicago, June 18, 1908, stated the wealth
of our country to be $110,000,000,000 and
United States statistics confirm the state-
ment. A tax of one half of one per cent on
this wealth should produce $550,000,000
82 TARIFF TEACHERS
This is $249,000,000 more than was
raised in 1909 from duties on imports.
There are two ways by which revenue
may be raised for the government. One
way is by taxing consumers of sugar,
clothing, stockings, etc., 75 per cent of the
value of these articles. Another way is
by taxing the wealth of the country one
quarter to one half of one per cent. Your
opinion of the way nearer just is as good
as that of the most successful politician in
the country.
Before you express an opinion you
might wish to argue the matter and say
that taxing the wealth of the country, as
taxing incomes, is unconstitutional. The
response would be 20,000,000 voters can
make it constitutional.
M. No ATTACK, No DEFENCE
I am impressed with the thought that
some pupil might wish to learn a protec-
tionist’s defence for what may seem to be
an attack.
CROSS-EXAMINED 83
There is no attack. United States sta-
tistics are not an attack. Quoting the
words of Delfelder, Whitman, Justice,
Stevens, and Senator Lodge, is not an
attack. Arithmetic is not an attack.
You say you do not understand the work
of a tariff. A free trader has not attacked
a protectionist. By using United States
statistics, the words of prominent protec-
tionists, and arithmetic, I have tried to
aid you to understand it. You surely do
not wish to defend yourself against a possi-
bility that you may understand it. Then
be friendly and receive from me only that
which seems reasonable to you. If I
have misquoted the words of Messrs. Del-
felder, Whitman, Justice, Stevens, and
Senator Lodge, I beg your and their par-
don. If what I have taken from United
States statistics is an error, it is not my
error. If my arithmetic and my reason-
ing conflict with yours, abolish mine and
use your own arithmetic and reason. Be
friendly until you discover in me something
84 TARIFF TEACHERS
more unfriendly than simply repeating
protectionists’ reasons for protection.
Not one word have I written denouncing
the friends of protection or the Congress
that prepared and enacted the tariff act
of 1909. If that act be unjust, you should
remember that Congressmen are voters
and they may have been as innocent as you
when voting for “the true principle of
protection” that reduces the purchasing
power of a portion of your earnings.
Owners of protected industries had an
opportunity to be selfish in advising Con-
gress, but they too are voters and they
may have been innocent as you in the belief
that a transfer to them of a portion of
your wages without an equivalent is bene-
fiting you as well as them.
N. THINGS To REMEMBER
In studying the tariff question you
should always bear in mind certain truths
that are true whatever may be the lesson
you are studying.
CROSS-EXAMINED 85
1. A duty paid on an imported article
advances its price.
2. This advance is finally paid by the
consumer of the article.
3. A duty becomes “protective” when
it stops wholly or in part the importation
of articles, and enables an American pro-
ducer to sell similar articles at any price
higher than their value.
4. This advance in price is paid to the
American producer by the consumer.
5. When we protect an industry we
pay the advance in price to individuals, of
whom Mr. Delfelder, Mr. Whitman, and
Mr. Justice are examples.
6. To protect an industry by a tariff,
there are two interested parties, one is the
protector, the other is the protected; one
pays an advance in price, the other re-
ceives it; one is able bodied, the other as-
sumes the character of a cripple; one is
the support, the other is the burden; one
buys the goods, the other sells them.
86 TARIFF TEACHERS
How TO STUDY
To know how a protective tariff works
you should take one protected article,
for example “stockings,” and ask: “Do
I wear stockings f" “Is it a benefit to
me to pay for them more than their value **
“Who besides myself in the United States
wears stockings f" I assume that your
conclusion will be that as buyers of stock-
ings a protective tariff injures every indi-
vidual who wears them. Then ask:
“How can an injury to each individual in
the United States be a benefit to them f°
Next consider the effect upon the people
as producers of stockings to sell. Ask
questions: “Do I manufacture stockings to
sell ?” Is it a benefit to a manufacturer to
sell stockings for more than their value **
“Who in the United States does manu-
facture stockings to sell ?” The question
you would then naturally ask is this:
“Should we have a protective tariff that
injures each one of 85,000,000 people for
CROSS-EXAMINED 87
the purpose of benefiting a thousand man-
ufacturers ?”
Now, instead of “stockings” take some
other protected article and go through
the same questioning, take earthenware,
spectacles, table knives, nails, watches,
handkerchiefs, etc., and you will arrive at
the point where you will ask: “How can
a positive injury to each one of 85,000,000
people be a benefit to all f"
Ask the hosiery manufacturer the ques-
tion and he will probably tell you that
“we are linked together, and while the
watchmaker pays me an advance in price
of stockings, I pay him an advance in price
of watches and thus we preserve the home
market, which is a benefit to all.”
Then look at the United States census
of occupations and notice the farmers,
day laborers, servants, railroad employees,
and a hundred other occupations who
pay the advance in price to the hosiery
manufacturer and to the watchmaker,
but do not receive the compensating ad-
88 TARIFF TEACHERS
vance in price, their work being sold at
prices that cannot be advanced by a tariff.
Then you should see that a protective tariff
is a mighty injustice. Then, even though
you do not see, you should be willing to
consider an estimate that a protective
tariff costs the people of our country $10
per capita, or a total of $850,000,000 a year.
The great majority of our people are
working men and women and their chil-
dren, and they consume the great portion
of protected goods. If $850,000,000 be
approximately the correct estimate of the
cost of protection, the working people pay
$800,000,000 of the cost.
# Then, seeing the mighty injustice, you
are as competent as a Congressman, a poli-
tician, a protected manufacturer, or a
freetrader to say protection is worth or it
is not worth what it costs. If you shall
decide that a protective tariff that costs
working people $800,000,000 a year is
worth the cost, be satisfied with “the
tariff act of 1909.” If you are not satis-
CROSS-EXAMINED 89
fied with the present tariff and wish to have
it revised, think whether you wish it re-
vised by friends of protection or by your
friends.
When the friends of protection to-day
attempt to show you farmers, you laborers,
you 30,000,000 working people, what they
have done for you in revising the tariff of
1897, they name an article on which the
tariff of 1909 has lowered the duty from
47 per cent in the Dingley law to 44 per
cent in the revised law. If the friends of
protection do you a mighty benefit by re-
ducing the duty on an article 3 per cent,
a reduction of 95 per cent, 75 per cent, 50
per cent, or 10 per cent on four thousand
articles is for your consideration.
O. ONE MORE PROTECTED
INDUSTRY
There are 85,000,000 people in the
United States. To construct a tariff law
that shall make 85,000,000 millionaires
is a problem that Congress cannot solve.
90 TARIFF TEACHERS
Tariff tinkers and Congress have been suc-
cessful in framing a law that has made
a few millionaires, but the people still
have to work for taxes and a living. It
is easy by taxation to make one millionaire,
as may be seen in the following illustra-
tion.
The yearly amount of wool grown in
the United States is approximately 300,-
000,000 pounds. To encourage wool-
growers Congress imposes a duty for
revenue of 11 cents a pound on wool.
This duty is also protective, and so affirmed
by protectionists and by Congress.
You are the consumers of that wool.
You pay the advance of 11 cents a pound.
You pay yearly 300,000,000 times 11
cents, or a total $33,000,000 to encourage
the industry. You see results. You see
50,000 men employed as herders, shearers,
etc. You don’t see that the exhibition
costs you $33,000,000.
Now suppose a United States law forced
you to give another $33,000,000 to en-
CROSS-EXAMIN ED 91
courage another industry of which I am
the owner. With that encouragement I
will employ 60,000 workmen at wages of
$500 a year. This will take $30,000,000
of the encouragement and leave $3,000,000
for me. By taxation it is easy to make
one millionaire.
You vote to pay an advance in price of
wool so that labor may be employed.
Would you vote to give me the amount
that wool-growing costs you so that I
might employ 60,000 men ; I am sure
you would not treat my proposition as
you do treat the man who asks protection
and does not show the figures in a way
that you understand. He says “pauper
labor” and you give him $33,000,000.
I do not cry pauper labor, but I promise
to employ more wage earners than he
employs, and you refuse to encourage me.
... There is not a single claim made by
protectionists in favor of a protective
tariff that is not as reasonable a claim in
favor of my proposition. 1st. I employ
92 TARIFF TEACHERS
60,000 workmen. 2d. I pay them
wages higher than is paid in Europe. 3d.
My workmen have $30,000,000 as a pur-
chasing power to use in buying the pro-
ductions of our farmers and our manu-
facturers. 4th. Sixty thousand work-
men in one locality will make an industry
known in all civilized countries. 5th.
You don’t know what will become of
these 60,000 men if you refuse to give me
$33,000,000. 6th. Our country will
grow in wealth when my industry is es-
tablished. 7th. Though this may not
be a protectionists’ claim, I will employ
only workmen who were born in the United
States, I will not advertise for Poles. I
will protect American labor.
Why should you refuse to give me the
encouragement that you so readily give to
another man Perhaps you would like
to know the kind of employment that I
would give to the 60,000 men. You will
see that I can pay the $30,000,000 wages
and add $3,000,000 to my wealth without
CROSS-EXAMINED 93
even asking my men to work. If you
insist on making me tell you the kind of
work, you will see that if they earn any-
thing at any kind of work, their earnings
will add to my wealth, for their wages are
already paid.
I will buy woolen cloth in England,
France, and Germany. I will pay the
duty to the government. I will put my
men to work making clothing. I will
export the clothing. I will ask the govern-
ment to give me the drawback of 99 per
cent of the amount of duty that I paid on
the cloth. If the Home Market Club
protests that the foreign manufacturers
paid the duty, I will get the drawback all
right. I will sell the clothing to the
English, French, and Germans at prices
that will more than cover cost of cloth,
trimmings, and freight, and as wages are
paid, by encouragement, I will make a
profit.
All this I will do without disturbing any
existing industry in the United States.
94 TARIFF TEACHERS
Now will you encourage me : I might
cut down the wages of my men 15 per cent,
thus adding $4,500,000 to my wealth, and
still pay them higher wages than is paid
in the woolen industry and in the ready-
made clothing industry, but I promise
not to reduce wages. I will not employ
a child. I will have the cleanest and
healthiest protected industry in the United
States. Now will you encourage me and
give me 300,000,000 times 11 cents I
think you understand my proposition well
enough to say you cannot encourage me.
The owners of protected industries de-
scribe their proposition in phrases “pauper
labor,” “home market,” “flood of foreign
goods,” “scientific revision,” and, as you
do not understand their language, you
give them the $33,000,000. Instead of
making me a millionaire by an under-
standing, you make another man a mil-
lionaire by a misunderstanding. In both
cases the proposition is to assess a tax that
you pay.
CROSS-EXAMINED 95
HOPE IS FREE
I hope you will see the cost of a protec-
tive tariff. I hope you will see the in-
justice of a protective tariff or a revenue
tariff. Seeing the cost and the injustice
of any tariff you 20,000,000 voters who
say you do not understand the work of a
tariff will understand enough to be the
“tariff commission” to recommend a
“scientific revision of the tariff.”
I do not expect to convert a protectionist.
A man believing an error must convert
himself. It is his own reason that is the
converting power. If what I have pre-
sented shall awaken a protectionist to
think in the peace of his own consciousness,
and to learn truth by thinking of error,
be it the error of a free trader or a protec-
tionist,- my purpose is accomplished.
Hope is the free trader's encouragement.
The
Telegraphic Blunder
of 1891
A STORY OF GREENBAcks, TREASURY NOTEs,
CLEVELAND BOND Issues
AND
THE DEMOCRATIC PARTY
A lot of history in a small pamphlet
‘Price Io cents
George Brickett, Publisher
MELROSE, MASS.
1910
tº NIV. ºf Mięźit.
JU; 9 1913
THE TARIFF AND PRICES
SPEECH
A
HON. E." L. HAMILTON
OF MICIELIG-ANſ
OF
IN THE HOUSE OF REPRESENTATIVES
THURSDAY, MAY 19, 1910
sº
W A SHINGTON
G. O.W E R N M E N T P R INT IN G O FFIC E
* . - 19 10
44333—9061
S P E E CH
O
EIO N. E. L. H. A. MIL T ON .
The House being in Committee of the Whole House on the state of the Union and having
under consideration the bill (H.R. 25552) making appropriations for sundry civil expenses
of the Government for the fiscal year ending June 30, 1911, and for other purposes—
Mr. HAMILTON Said : -
Mr. CHAIRMAN : After about nine months of trial, criticism, and analysis the
Payne tariff bill stands with a record of increasing revenues and increasing
prosperity.
At the outset the Republican party itself in its platform declared the stand-
ard by which it proposed to revise the tariff, viz, by the levying of duties which
Should equal “the difference between the cost of production at home and abroad,
together with a reasonable profit to American producers,” and by that standard
the party and the bill are entitled to be judged. -
Deviations from perfection have of course been magnified by foreordained
partisan bias, but it would perhaps be unnecessarily unkind to say that the
Whole COuntry Would have Smiled at the use of the Wilson bill as a standard of
COImpalliSOn, and no Delanocrat even would have accepted a Colmparison of ſtepub-
lican achievement with Democratic achievement as reflecting the slightest
Credit upon Republican achievement. .
It is Of course a worn-out truism to say that no tariff bill ever was or ever
Can be a perfect measure.
It is not given to the Sons of men to attain perfection. Each man-made thing
in the course of human progress naust give way to some other thing better de-
Vised to do the Work required of it.
- CENTRALIZATION.
The Payne bill was passed near the consummation point of an era of commer-
cial centralization which began about 1898, but for which the world had been
for a long time preparing by the discovery and increasing use of stealm, Supple-
mented by electricity, by the invention and constantly increasing use of Ima-
chinery, by the invention and constantly increasing use of means of communica-
tion, transportation, and exchange, and by the increasing adaptation of the COT-
porate form of Imanagement to industrial enterprises.
Of the 185 corporate combinations consisting of “a number of formerly
independent mills,” mentioned in Census Bulletin No. 122 as having been
organized down to May 31, 1900, only 65 had been organized before 1897, and
the movement swept on with increasing force into the Opening years of the
twentieth century.
This celltralization movement, however, is not Confined to America, but
extends througi, out the commercial nations of Europe, Without regard to the
kind of tariff levied at their boundaries.
It represents the efforts of men by combinations of capital to produce at
central points commodities to supply increasing zones of trade created by
increasing facilities of transportation and Communication, resulting from the
increasing application of steam and electricity to the World’s industrial System.
As a result of this swift evolution of industrial COInditions machinery has
scarcely been installed before it has had to be thrown upon the scrap heap.
The opinions of political economjºts have Scarcely been in print before they
have had to be revised, and the panoramic views of politicians have Scarcely
been thrown upon the moving Slide before the moving slide has slid on.
One thing, I think, is certain, that outside of a certain kind of politician
who always desires to attach political significance and incidentally himself
to every movement whenever possible, few men how hold the tariff responsible
for industrial Centralization.
2 - 4.4333—9061
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TEIE COMMERCIAL WORLD.
We live in a tariff World and a World Of centralization in which industries
have centralized regardless of whether the policy. Of the nation Of their Organi-
zation has been free trade Or protection, and a tariff bill has to be passed with
reference to things as they are, not with reference to things as we might like
to have them, and inasmuch as there are 90,000,000 of us, We might not all be
able to agree on how we might like to have things, any Way.
Therefore, in passing the Payne tariff bill legislators had to consider that
any tariff policy which would share our 90,000,000 population market with
foreign capital and foreign labor by permitting the free or approximately free
inportation of foreig. commodities which we ourselves can grow, manufacture,
and produce as well as foreigners—
1. Would admit to our markets the products of foreign nations which protect
their markets against us and Confer no corresponding reciprocal benefits
upon uS.
2. Would lower the level of American citizenship without raising the level
of foreign citizenship.
3. Would stimulate foreign production while depressing our own.
4. Would increase the employment of foreign labor while reducing the em-
ployment of our own labor.
5. Would send American money abroad instead of keeping it in circulation
here.
6. Would drive Small domestic producers to the Wall, and having driven them
to the wall, would leave the industrial field in the possession of strong monopo-
lies which could fix the wages Of labor and the prices of Commodities to suit
themselves, and make internatioſial trade agreements beyond the reach of our
law.
& PROTECTION IT'S OWN ARGUMENT.
The policy of protection justifies itself, and its continuance is a continuing
argument in favor of its continuance, and in the last national election, more
than seven and a half million voters declared for its continuance.
The energy generated by the confidence of 90,000,000 people in the stability
of the policy of protection has Set in motion and kept in motion 600,000 fac-
tories, having an annual output of more than $13,000,000,000 and paying out in
wages $3,000,000,000 to 6,000,000 people, whose purchasing power depends upon
their employment.
One gentleman who has spoken here has referred to what he called the “pro-
tected sections" of our country, but the fortunes of all our people—North,
South, East, and West; farmers, manufacturers, artisans, laborers, and pro-
fessional men—alºe all bound together. -
Long ago, when the ratification of the Federal Constitution was under con-
sideration in the Massachusetts assembly, Jonathan Smith, a farmer from the
Berkshire Hills, in reply to One AmOS Singletary, put the whole question in a
nutshell then and for all time when he said:
These lawyers, these moneyed men, these men of learning, are all embarked in the same
cause with us, and we must all Sink or SWim together.
This policy of protection has added to the gold dug from American mines
foreign gold paid for the products of American labor.
It has kept all the Wheels, shafts, and bands of production in motion until
they have developed an aggregate of 15,000,000 horsepower, equivalent to the
power of 90,000,000 men.
It has built railroads by giving them something to carry from place to place,
and cities and towns and factories have Sprung up along their rights of Way.
It has built cities by locating factories in their midst, and the factory makes
all the difference between the Village and the City.
It has cleared and improved farms and made farmers prosperous by giving
them a market at their doors for what they raise to sell.
It has fostered and encouraged American industry until Our Own internal
free-trade commerce Over our Own rivers, lakes, and railroads is estimated
at $25,000,000,000.
It is justified by our prosperity, gathered from the legitimate spoils of trade,
in which both labor and capital have participated; justified by the policy of
other nations and justified by the declarations of their Statesmen.
4.4333—9061
4.
It is justified by the quality of American citizenship as compared with the
quality of foreign citizenship, justified by the savings of labor, and justified by
every home owned by an American workingman under the American flag. [Ap-
plause.]
COOPERATION.
But the growth of centralization has forced upon the public mind the con-
viction that while we have been growing more democratic in religion, education,
and politics we have been growing more autocratic industrially;
That We have passed out of the era. Of industrial individualism ;
That industries are being reduced to a few large units run by a few large
units which are Cooperating rather than COmpeting ; -
That combinations have become monopolies and that consumers pay prices
dictated by monopoly; and
That small concerns exist on sufferance of their stronger neighbors and copy
their price lists.
I spoke of this to a Massachusetts manufacturer not long ago, and he said:
th º yes; the big fellows hold the umbrella for the little ones; there is no doubt about
&lt.
TJnder conditions prevailing even as late as 1897 it was easy to demonstrate
that as a rule domestic competition reduced domestic prices below even the
duty exacted on similar imported articles. -
There are probably few Republicans here who have not time and again gone
to the people with lists of American commodities the prices of which have
been reduced by domestic competition below even the duty exacted, in suc-
cessful refutation of the Democratic theory that “the price is increased to the
consumer by the amount of the duty exacted.”
It was believed then “that the strife of multitudinous private interests if
freely followed would lead to the maximum of common gain.”
It was believed that “the essence of economic Wisdom was to keep hands
off,” that struggle and compromise would lead to the greatest good of the
greatest number, and that when everybody takes care of himself care is taken
of all.
Now it is freely asserted among business men that “good business” must
set the limits of competition by Organized COOperation ; that “good business ''
means cooperation—not competition.
It is matter of common knowledge that at informal social gatherings of
gentlemen engaged in like industries gentlemen casually volunteer their views
as to prices for the coming year, and that before the meeting is over all gen-
tlemen present have volunteered their views as to prices for the coming year,
and that by a singular coincidence prices coincide with their several coinciding
Views for the COInning year'.
Of course, now as always, there are legislative political economists intent
ſupon getting their names connected with measures for political advertising,
but among men who feel the Serious responsibility of their relation to affairs
there is now no dispute that the Occupations Of Imen require increased govern-
mental regulation, and the Only dispute is as to the forms these regulations
should take.
In what I have to Say, I desire to COnsider:
1. How far centralization has resulted in monopoly.
2. How far nionopoly has destroyed COmpetition. - -
3. How far the method of levying duties ought to be changed by reason of
changed conditions.
4. The question of high priceS.
MONOPOLIES.
First, then, as to monopolies.
It is matter of common knowledge that great enterprises, themselves the re-
Sults of former Innerger's, have beell merged into gigantic COrporations for the
purpose of reducing competition and controlling trade.
It is also matter of common knowledge that when several corporations com-
bine the total capitalization of the Combination is always larger than the sum
of the capital Of the COIllbining COrporations, and does not all represent assets of
capital or cash paid in.
For illustration, by the census of 1900 it appears that 2,160 distinct establish-
ments were merged into 185 trusts; that before these 2,160 distinct establishments
4.4333—9061 -
5.
were merged into 185 trusts their total capital was $1,461,000,000, but after they
were merged into 185 trusts the total authorized capital of the 185 trustS into
which they were merged was $3,619,000,000.
Ror further and specific illustration take the case of the United States Steel
Corporation, which was formed by the merger of 10 constituent companies, many
of which had been formed by the merger of lesser companies like the American
Steel and Wire Company, which had been formed by the merger of 19 Com-
panies; the American Bridge Company, which had been formed by the merger of
24 companies; the American Sheet Steel Company, which had been formed by
the merger of 28 companies; and the American Tin Plate Company, which had
been formed by the merger of 39 companies.
Having obtained control of the market to the point of Sole or' cooperative
monopoly, what restraint is there upon the monopoly So formed as to the prices
it may charge?
It would be idle to say that the element of conscience enters into the transac-
tion. Human nature is Selfish, and it is never less Selfish When Organized into
CorpOrationS.
But it is said that there is a law of trade which automatically fixes the limit
of possible extortion, by virtue of which consumption is curtailed when prices
are too high ; that when Consumption is Curtailed Output must be curtailed; that
When output is curtailed profits are curtailed; and that combinations of merged
industries, having to pay dividends on stock representing inflated values, and
being under the necessity of running steadily to keep men and steam-driven
machinery steadily employed, are Sensitive to fluctuations of consumption, and
are therefore careful not to raise prices inordinately, and this undoubtedly
Operates as a restraint to Some extent.
However, in this age of extravagant expenditure, this law of trade Would
probably allow considerable latitude before reaction would set in.
SHARE OF MANUFACTURE BY INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS.
The census report of 1900 classifies the principal industries into 15 groups,
including 1 group covering miscellaneous industries and 1 group covering the
hand trades.
This census was taken in the midst of the centralization movement, and the
report shows that of 512,254 factories, making more than $500 worth of goods
per annum, 21 per cent had no employees, the work being done by the owner
or owners;
Forty-five per cent had less than 5 employees;
Twenty-two per cont had from 5 to 20 employees;
Eight per cent had 21 to 100 employees; and
Two and four-tenths per cent had from 100 to 1,000 employees.
By this report it appears that of these 512,254 factories, capitalized at
$9,817,000,000, employing 5,308,406 people at wages amounting to $2,322,000,000,
producing an annual output of $13,000,000,000, nearly three-fourths were owned
by individuals, but individuals made only about one-fifth of the total value of
all the goods produced ;
About one-fifth were owned by partnerships, but partnerships made only one-
fifth of the value of all Of the goods produced ;
While corporations owning less than One-twelfth of all the factories made
three-fifths of the value of all the goods produced, amounting to $7,734,000,000.
In this statement of industries run by corporations, railroad, street car, and
steamship companies are not included.
SELARE OF TOTAL OUTPUT MADE BY CERTAIN CORPORATIONS.
How far these corporations have become trusts in the current acceptation of
the term, statistics do not show, but—.
In the manufacture of cotton goods Corporations make 93 per cent of the
product value and own 81 per cent of the total number of mills;
In the manufacture of iron and steel and their products Corporations make
89.7 per cent of the value of all goods produced;
In the manufacture of vehicles corporations make 89.6 per cent of the value
of all goods produced;
In the manufacture of chemical products corporations make S5.5 per cent of
the Value of all goods produced;
In the manufacture of metals and metal products Other than iron and Steel
corporations make 84.9 per cent of the Value of all goods produced;
4.4333—9061
6
In the manufacture of liquors and beverages corporations make 84.6 per cent
of the value of all goods produced ;
In the manufacture of worsted and woolen goods corporations make 75 per
cent of the value of all goods produced and own 51 per cent of the mills;
In hosiery and knit goods corporations produce 63 per cent of the value of all
goods produced and own 44 per cent of the mills; and
The wholesale slaughtering and meat-packing industry is almost wholly
controlled by Corporations.
This—
The census report says—
has been due to the trade necessity of centralizing slaughtering at a few points convenient:
both to a large Supply and to transportation facilities for quick delivery to the principal
distributing markets in the United States and foreign countries and to the advantage of
locating and supporting agencies in these markets.
It appears, therefore, that while large-scale manufacturing permits the
growth of and frequently creates small-scale manufacturing, and while there
are certain forms of delicate manufacturing which more particularly require
the direct personal knowledge and supervision of the owners themselves, still,
the great bulk of manufactured products is produced by large corporations, and
cold statistics justify the common belief that the industries of this Country are
passing under the control of large corporations, -
The law sanctions and upholds corporations, and the laws of various States
facilitate their formation, and a man has a right to choose his business, and his
business is “his property and right,” and he is entitled to protection of his
business so long as he conducts it lawfully, whether his business is an incor-
porated business or otherwise. But “the object and end of government is to
promote the happiness and prosperity of the community,” not of Some, but of all.
Therefore when the people through their legislatures, by statutes framed for
that purpose, confer upon those desiring to avail themselves thereof the right Of
incorporation, they do so not for the purpose of conferring Special privileges
upon them, but that the people themselves may be benefited in lower prices,
larger output, and cheaper means of transportation.
What, then, are the rights and limitations as to governmental regulation?
GOVERNMENTAL REGULATION. )
As to occupations “affected with a public interest,” the right of the Federal
Government to regulate those doing interstate business and the right of the
States to regulate those doing intrastate business is clear.
That is, when a man “devotes his property to a use in which the public
has an interest, he, in effect, grants to the public an interest in that use and
must submit to and be controlled by the public for the common good to the
extent of the interest he has thus Created.”
For illustration, a man may run a ferry for his own use and lawfully run
it as he pleases, but when he begins to run it for the public and begins to
charge a public toll, his business becomes “affected with a public interest”
and is subject to public regulation.
As to occupations not “affected with a public interest,” the right which the
Federal Government has at COInn Innon law to prevent COmbillations in 1:estraint
of trade and combinations in restriction of competition, doing interstate busi-
ness, which has been crystallized in the Sherman antitrust law, has been ad-
judicated.
And, the right of the States at common law and under statutes framed to
reenforce and extend the common law, to prevent “contracts in restrail)t of
trade ’’ and “contracts in 1'estriction of competition,” has been adjudicated.
But the right of the Federal Government or of a State to reach and regulate
Occupations not “affected with a public interest,” which have grown to colossal
proportions, not by “contracts in restraint of trade ’’ or in “restriction of
competition,” but by increase of business whether conducted by individuals,
partnerships, or corporations, nowhere appears,
TEIE REPUBLICAN TARIFE PLANE.
What then is the relation of the tariff to centralized monopoly, whether con-
ducted by individuals, partnerships, or corporations? i
In my judgment a tariff levied within the rule prescribed in the tariff plank
of the Republican platform, whereby duties are to be So levied as to equal
4.4333—9061 -
7.
the difference in cost of production at home and abroad, with proper Safe-
guards against the foreign custom of Selling cheaper abroad than at home,
operates in restraint of monopolies and in the interest of American consumers.
That plank provides a limit: upward, as well as a limit downward.
A limit upward, Why? To prevent domestic monopolies from Overcharging
domestic COInSUl Illel'S.
A limit downward, why? To prevent foreign monopolies from participating
in our markets, why? To maintain the Standard Of Anherican citizenship and
American wages; because if we should permit foreign Combinations which con-
tribute nothing to the Support of our institutions, and which pay lower wages
than are paid here to enter our markets without tariff restraint, it would force
American wages and American citizenship down to the level of foreign Wages
and foreign citizenship. -
Neither do I shirk nor evade the necessary corollary that when We protect
American labor from the importation Of the products of underpaid foreign
labor, We ought also to protect American labor from the importation of foreign
labor itself by the reasonable regulation of innmigration.
A protective tariff, in a general and impersonal way, protects all industries
not upon the free list, and a protective tariff ought never to be anything else
than general and impersonal. -
Therefore in the very nature of things a protective tariff can not and should
not attempt to differentiate here and there among industries, Selecting for pro-
tection those that can file a certificate of good character, and rejecting those
that Can not do SO.
That rule would be as difficult to Work among individuals as among CorpOra-
tionS.
Neither can it nor should it act as a probate court for the incompetent, and
attempt to regulate the various shares which various degrees of talent or of
capital ought to take from a general condition of prosperity.
Neither can the duty be removed from all articles the like of which are made
by domestic monopolies, because if the arguments of the advocates of this
policy are worth anything at all, the removal of duty would first destroy Small
independent producers and, having driven them to the wall, would leave the
industrial field either at the mercy of foreign monopolies Or domestic monopo-
lies, or to both combined, under international trade agreements which Could not
be reached by Our laws.
But duties can be so levied as to “equal the difference between the Cost Of
production at home and abroad,” with a reasonable allowance against foreign
cut-rate prices on imported goods, and thereby protect American labor and at
the same time protect American consumers from being Overclarged by American
monopolies.
Under present conditions, when “good business '' is said to require coopera-
tion, not competition, I believe it to be a proposition So nearly Self-demonstrat-
ing as to be an axiom, that by so much as you raise duties above the difference
in cost of production at home and abroad, after making due allowance for the
foreign custom of selling goods cheaper abroad than at home, by that much you
permit domestic monopolies to overcharge domestic consumers.
Therefore that plank in our platform providing a limit upward as well as a
limit downward was framed in the interest Of the average Imall.
CONFLICTING INTEREST.S.
But What are the difficulties which confront a legislator in framing a tariff
bill?
Imagine a Committee on Ways and Means sitting to hear testimony as to the
levying of duties. The importer demands low duties or no duties, and is perhaps
backed by newspapers in which he advertises to the extent of whole pages.
A manufacturer with Small capital appears and shows that he can not con-
tinue business Without high duties. -
Another with larger Capital is content with lower duties.
A whole Section wants high duties on Some commodities to protect it against
its neighbors across the international boundary line who pay less wages to labor,
as in the case of lumber and coal in the Northwest; while another section, not
a producer, Wants these Commodities as cheap as it can get them.
New England, the South, the Middle West, the Rocky Mountain region, and
the Pacific Slope have their joint and several interests, their cooperating and
contending interests, their harmonious and their adverse interests, and all their
interests have to be reconciled, compromised, and harmonized in a single bill.
4.4333—9061
8
Fr. The result fs that the committee, after hearing all the testimony, arrives at
appear before it, but among those who make up the committee. -
When the bill is reported, if the schedules and items are open to amendment,
the war among sections goes on, and no partisan line ordinarily divides meli in
their efforts to drive the best tariff bargain possible for the constituents whoni
they represent.
The Republican believes in protection. The Democrat denounces protection as
robbery and gets as much protection as he can, calling it tariff for revenue only.
In the passage of the Payne bill, the course of Democrats suggests a new defi-
nition of tariff for revel) lie, viz, that a tariff for revenue is a protective tariff on
all articles in the production of which Democratic States or congressional dis-
tricts are interested. -
THE NEEE OF A STANDARE). ... • *
In my judgment, there ought to be some standard whereby duties can be
measured. I believe the Republican proposition to so levy duties as to equial
the difference in the cost of production at home and abroad, making due allow-
ance for the foreign custom of selling goods cheaper abroad than at home to
be the right measure of duties, but in an effort to levy duties in accordance with
this policy We are constantly met by a conflict of interested testimony and a con-
flict among the interests of various sections. w
In construing, the term “cost of production,” however, it ought to be borne in
mind that it can not be treated as a term of mathematical accuracy. The cost
of production in England is one thing. It is another thing in Germany, another
in Austria, another in France, another in Belgium, another in Italy, another in
Japan, and another in America ; and everywhere the corporation, firm, or indi-
vidual with a milliop dollars capital can malıufacture cheaper per unit than the
corporation, firm, of individual with a thousand dollars capital.
But, in my judgment, there ought to be some standard whereby conflicting
claims can be measured, so that when a man testifies that duties in certain
schedules ought to be high or low or medium his testimony can be compared with
known facts. - - -
To that end I Would have a bureau in the Department of Commerce and Labor
whose business it should be to do continuously not only what the tariff board is
now doing temporarily, but more, and in the performance of that work I would
have connected with such bureau a corps of eXperts who could speak the neces-
sary foreign languages. whose business it should be to ascertain and report
from time to time to the Department of Commerce and Labor the selling prices
of foreign-made goods sold abroad and here, and who should further be charged
with the duty of ascertaining as nearly as possible the labor cost entering into
the cost of producing goods made abroad and here, such reports to be filed in
the Department of Commerce and Labor for tabulation and reference, and when-
ever hereafter the revision of the tariff shall be under consideration I would
have these reports at hand to furnish a Standard by which to test and measure
the testimony of witnesses as to whether a duty should be raised or lowered.
What is the purpose of protection? It is not to protect “infant industries”
except here and there. Our industries have grown up. It is not to protect
special interests at the cost of the public. That would be indefensible. But it
is to protect the American people in the maintenance of a civilization which lifts
the average of American citizenship above the average citizenship of any other
coullatry on earth.
If we let that tariff down we can not pull the rest of the world up to our level,
but we must go down to the level of the rest of the world. * -
Therefore the tariff is more than a question of dollars and cents. It is ari
ethical question, and means the preservation of the standard of American man-
hood. We are engaged luot alolae in making things and raising crops. We are
raising men.
EIIGIEI PRICES.
The country was never more prosperous. When William H. Taft was elected
it is said 400,000 cars and 10,000 locomotives lay idle on side tracks and in
foundhouses. Now every car and every locomotive is out on the road being
worked to its full capacity and every factory in the Country is running full time
at full capacity.
We have more money in use and circulation now than ever before, more money
per capita than ever before, more gold than ever before, more money deposited
4.4333—9061
in savings banks than ever before, more farm products than ever before, bringing
more money than ever before, because there is more work for more people than
ever before, and because people are living better than ever before, and the
contrast between now and thirteen years ago is one On which no Democrát ever
dwells With pride. - -
But the very fact that we have more gold than ever before and more credit
built on gold than ever before is one of the causes assigned for high prices.
Prices are high and times are good, and good times and high prices generally
go together, and bad times and low prices generally go together, because good
times mean getting good prices for what we have to sell, and bad times mean
getting low prices or no prices for what we have to sell. -
We all like high prices, but we like them for what we have to sell, and we all
like low prices, but we like them for what we have to buy. - -
That is, we all like high prices and we all like low prices, but we all like high
prices and we all like low prices when they are coming our way—the same way.
Mark Twain said he liked criticism.
Recognizing this element in human nature, and also recognizing another
element in political human nature, it is fair to assume that in the coming cam-
paign our Democratic brethren, when addressing city audiences who buy what
farmers have to sell, will put the burden of high prices on the Payne bill, and
when speaking to agricultural audiences, who sell to city consumers, will con-
gratulate them with unction upon their prosperity in spite of the Payne bill;
and this will perhaps succeed well enough if the agricultural audiences do not
happen to read the Speeches delivered to the city audiences, and if the city
audiences do not happen to read the speeches delivered to the agricultural
audiences.
But we have free rural mail delivery now and the telegraph and the tele-
phone, and there are very few people now who deny the rotundity of the earth,
the attraction of gravitation, or the utility of the multiplication table, and the
field for that kind of campaigning is being reduced.
Inasmuch, however, as every man is himself a buyer as well as a seller, a
producer as well as a consumer; and inasmuch as a general condition can not be
made to order to fit a few, but must spread over all; and inasmuch as we can
not sell for high prices unless We buy for high prices; and inasmuch as We can
not buy for low prices unless we sell for low prices, we must all go up or down
together, with those whose incomes are least responsive to change suffering
most by change or gaining Hāost by change.
It is better to have good times and high prices, with money going freely from
hand to hand, provided we all go up together, than it is to have bad times and
low prices, even when we all go down together, as we did when money was
driven to cover by panic and hidden away in fear during the years from 1893
to 1897.
But it is better still, whether prices are high or low, to have steady prices,
fairly distributed, with money going freely from hand to hand.
UNIVERSAL EIIGEI PRICES.
Courts take judicial notice of certain historic, geographic, and scientific facts
without proof, and, likewise, in the investigation of present conditions, we need
no commission to tell us that prices are high—high here and high the world
OFW eE.
In England, France, Germany, Austria, Switzerland, Africa, Australasia,
China, Japan, North America, and South America prices have been advancing
for the last ten years. -
Where there is a universal condition it is reasonable to look for a universal
cause, and the increase Of gold is Said to be that Cause.
Take four facts as premises:
1. Prices are up the World. Over. (~
2. Price is the value of commodities measured in money. \ *:
8. The money of the World is gold and promises to pay in gold; that is, it
is gold and credit based on gold.
4. The gold production of the world for 1896 was $202,251,000, and the gold
production of the world for 1908 was $435,000,000, an increase of more than
100 per cent in thirteen years,
Efence, Scientists Say, since price is the value of commodities measured in
money, and Since money has increased in quantity and has beeome cheaper in
4.4333—9061
*
10
º
its relation to commodities, therefore it takes more money to buy commodities
and prices are said to be higher.
It is said that prices were raised for a hundred years by the importation
of gold and silver into the circulation of Europe from Mexico and Peru in
the sixteenth and seventeenth centuries.
For the increase of money, however, to affect prices it is indispensable that
it should be money in use and circulation—money that “goes into the mar-
kets of commodities and is there exchanged against Commodities,” which ex-
plains why, when money is withdrawn from circulation by reason of lack of
confidence, industry stagnates, even though the actual Volume of money may
be large.
As bearing upon the quantitative theory of money, Professors Taussig and
Carver, of Harvard University; Professors Summer and Fisher, of Yale Uni-
versity; Professor Seligman, of Columbia University; Professor Jenks, of
Cornell University; Professor Kinley, of the University of Illinois; Professor
Cook, of Amherst College; Professor Clark, of the College of New York; and
Professor Johnson, of the New York University School of Commerce, some of
them free traders and SOIme Of them protectionistS, all agree that the funda-
mental cause of high prices the world over is the increased quantity of gold.
That more money makes higher prices will hardly be denied by Democrats,
who in 1896 declared that more money makes higher prices, and proposed to
free COin Silver to make more money to make higher prices, and as a further
means of relief proposed to make the 40-cent Silver dollars so coined legal tender
in payment of debts contracted at 100 cents on the dollar.
But against a universal background of high prices, for which a universal
cause is assigned, various local causes are assigned in various countries, and
here in America, inasmuch as a political Campaign is approaching, it is inevitable
that a partisan effort should be made to hold the party in power responsible
for everything it is thought the people may not like.
Therefore, inaSImuch as the people may like a thing in one place and not like
it in another place, gentlemen Will probably find it expedient to go into town
and weep on the necks of city purchasers of farm products because prices are
high, and from the rear platform of the first train out of town congratulate
farmers on the prices they are getting for What they sell to city purchasers.
IN CONSISTENCIES.
Gentlemen when addressing city audiences will probably tell them that high
prices are due to the tariff.
But when they tell their audiences that high prices are due to the tariff, how
will they explain to them the rise of prices in England, Where there is no
protective tariff 2
Duties were raised by the Payne bill on certain articles of luxury, like per-
fumes, wines, liquors, and Silks, but no complaint is made of this except by
those who are able to pay the bills.
But when gentlemen tell their city audiences that high prices are due to
the tariff, how will they explain to them the fact that prices have gone up as
well on articles On which the duty Was lowered as On articles on Which the
duty was raised?
Outside of luxuries, like perfumes, wines, liquors, and silks, the duty was
raised on articles consumed in this country Only to the amount of $300,000,000,
while it was lowered on articles Consumed in this country to the amount of
$5,000,000,000.
When gentlemen tell their audiences that the tariff has raised prices, how
will they explain to them that prices have gone up on articles consumed in this
country to the amount of $5,000,000,000 on which the duty was lowered as well
as on articles consumed in this Country to the amount of only $300,000,000 on
which the duty was raised?
When gentlemen tell their audiences that the tariff has raised prices, how
will they explain to them the fact that prices have gone up on articles on which
duties were left undisturbed as Well as On articles On which duties were raised
and as well as On articles On Which duties were lowered?
The duty was removed from hides and lowered on Shoes, sole leather, and
harneSS leather.
When gentlemen tell their audiences that the tariff has raised prices, how
will they explain to them that prices have gone up On hides, Shoes, Sole leather,
and harness leather?
4.4333—9061
11
* We lowered the duty on lumber, and I voted for free lumber, and I did this
notwithstanding my high opinion of the judgment of Mr. Pinchot, who, at the
Tequest of a divided Ways and Means Committee for his opinion as Chief For-
ester as to the relation of the conservation of timber and the price of lumber
to the tariff, gave it as his judgment that “free lumber under present condi-
tions Would have no effect on the price to the consumer,” and “ that the con-
Servation of the forests '' would not “be aided by a reduction of the tariff.”
But when gentlemen tell their audiences that the tariff has raised prices, how
Will they explain the fact that prices are no lower on lumber 7
We lowered the duty on dressed meats by 25 per cent.
When gentlemen are telling their audiences that the tariff has raised prices,
let them explain why the price of meat is up, notwithstanding lower duties.
The revision. On iron and Steel and on the ope, which is the basis of the iron
and steel industry, was downward by about 50 per cent.
When gentlemen tell their audiences that the tariff has raised prices, how will
they explain to them why prices are no lower on iron and steel?
There is no duty on hard coal, and the duty On Soft coal was reduced 33 per
Cent.
When gentlemen are telling their audiences that the tariff has raised prices,
how will they explain to them the fact that prices are no lower on coal?
There is no duty on rubber. . &
But when gentlemen are telling their audiences that the tariff has raised
prices, let them tell them why the price of rubber has advanced.
There is no duty on petroleum, countervailing Or otherwise.
When gentlemen are telling their audiences that the tariff has raised prices,
let them explain to them why the prices of petroleum and its products have not
golne dOWn.
There was no increase of duty on wool and hemp.
When gentlemen are telling their audiences that the tariff raised prices, let
them explain to them why prices have not remained the same On WOOlen and
linen fabricS.
There was no change in the duties on women's gloves, except a downward
change on Schma Schen gloves.
When gentlemen are telling their audiences that the tariff has raised prices, let
them tell them why dealers have raised the prices of women’s gloves, notwith-
standing the fact that the only change of the duty On gloves was a downward
change. -.
When gentlemen are telling their audiences that the tariff causes high prices,
let them tell their audiences that prices are up in Canada as Well as here.
Let them tell their audiences that the Canadian minister of agriculture has
been conducting an investigation as to the cause of high prices in Canada.
And let them tell their audiences what benefit it would be to American pro-
ducers and American Consulmers to remove the duty from Canadian products and
let Canadian products into our markets free to compete with the products of
American farmerS.
Our duties on farm products are designed to protect our farmers, and the
same reason exists now for protection to American farmers under high prices
as existed for the protection of Americal) farmel's under low prices, because
prices have gone up on both sides of the border line. -
Not only are our duties on farm products designed to protect the American
farmer, but the Whole system of protection results in his benefit, because the
more people there are at work the more people there are to buy what the farmer
has to Sell. --
The more people there are to buy what the farmer has to sell, the better price
the farmer gets for what he has to Sell.
And the better price the farmer gets for what he has to sell, the more he buys
of what the manufacturer makes to sell. .
And the more the malnufacturer Sells of What he makes to sell, tile more men
he elmployS.
THE LAW OF SUPPLY AND DEMAND.
Another cause of high prices, older and more inexorable even than the quanti-
tative theory of money, is the law of supply and demand. -
We have a higher Ståndard of living now than ever before, and more extrava-
gange than ever before.
4.4333—9061
12
Demand is crowding supply, and as Mr. James J. Hill has Suggested, the cost
of high living is in part responsible for the high cost of living.
A few years ago boys wore out their father's old clothes made over according
to a neighborhood pattern, and the year was divided, as David Harum says,
between “chilblains and stun bruises.” NOW, they have to have Store Clothes
and socks to match their neckties and a College yell. .
A few years ago a man was considered Well off if he kept a horse and buggy.
Now he has to have an automobile if he has to mortgage the place to get it,
and in the language of Mr. Dooley, “The man with the automobile is constantly
steerin' between the poorhouse and the county jail, and if the police don’t land
bim in Wan, the automobile will land him in the other.”
TO meet the increasing demands of an increasing population and an increas-
ingly extravagant population the products of our farms are not sufficient, not-
withstanding the fact that our farms yielded last year $8,760,000,000, an in-
crease over the yield of 190S of $869,000,000. -
Between 1890 and 1910 our population has increased about 43 per cent, and
by an estimate by the Secretary of Agriculture beef cattle have increased only
about 15 per cent, milch cows 32 per cent, sheep 40 per cent, while hogs have
decreased 17 per cent.
We are not getting enough out of our soil and we are not giving enough back
to it. France produces 310,000,000 bushels of wheat a year. We produce in the
|United States 700,000,000, and France is considerably smaller than the State
Of Texas.
TEIE FARMER.
Among the causes assigned for the failure of farm products to keep pace with
present demands are :
Scarcity of farm help and consequent inability of farmers to obtain the best
results from their lands.
The drift of young men and women from farms to towns, thereby reducing
the number of Original producers.
Nonscientific farming.
Carelessness in the housing and protection of tools and machinery,
Lack of proper care in the selection of seed.
Failure to 1))}lke dule return to the Soil for What is taken from it.
Waste of feed on Scrub Stock, when less feed would maintain better stock.
Neglect to properly Drune, Spray, and care for Orchards.
Failure to devote sufficient attention to the breeding and care of poultry.
But here and there in every locality scientific farmers are setting an example
to their neighbors, and the grade of farming is constantly rising.
In my judgment the farmer is receiving only a fair price for what he has to
Sell, but middlemen are charging too much for handling and trying to make the
public believe the farmer is responsible for the prices they charge.
The time has gone by, however, When Shifty gentlemen can take toll of the
farmer and toll Out Of the COInsumer and fool both at the same time.
For years the farmer has been at the mercy of every trade combination that
Sold him Supplies Or handled his product. -
Now he is prosperous and is not obliged to dump his crops upon the market
the next day after harvest to stop interest on some debt, but he can hold or sell,
as his judgment dictates, and by means of the telegraph and the telephone and
free mail delivery he is in touch. With the markets Of the World—in touch. With
the thought of the world.
The farmer has come into his Own, and I am glad of it.
He has been caricatured by cheap city humorists, preyed upon by grasshop-
pers, locusts, and money sharks, and misled by predatory politicians. Now he
is able to take care of himself.
He is One of the safest, SOundest, cleanest elements in Our civilization.
The city would have dried up, rotted, or exploded but for the country that
came to town day before yesterday.
Too much of the country has been Coming to town, though.
It is said that 50 per cent Of Our population is being congested in cities and
towns. That movement ought to stop, and the people who live in alleys and
work in Sweatshops ought to begin to learn that there is work to be had on
farms at fair wages under healthier and happier conditions.
With free rural mail delivery, the farmer reads the daily papers now, yellows
and all, but he is learning to discriminate between them, and he still represents
the sober second thought of the Country.
44333—9061
13
And throughout the country, green with its forests and meadows, golden with
its harvests, the country home, where the old-fashioned virtues of honesty,
frugality, and clean living are still taught and practiced, constitutes the bulwark
and safety of Our Republic.
,t ČOLD STORAGE AND UNSCRUPULOUS DEALERS.
The cold-storage system, while performing a beneficial function, is also held
in part responsible for high prices. It preserves foods and preserves prices. It
buys and receives commodities in time of normal plenty and carries them into a
time of normal dearth, thereby decreasing supply in time of plenty and con-
trolling supply in time of dearth.
The Boston Herald states that—
According to a statement recently made by the president of the American Warehouse-
man’s Association, 1,500,000,000 eggs welre in cold storage the 1st of September, being
held there in order that the egg market might be controlled and the price of eggs kept at
a high level. It is said with equal authority that a similar amount of butter was being
held in cold storage for similar purposes. In other words, $55,000,000 worth of food
products were withdrawn from the markets of the country and an arbitrarily high level
created which had no connection with the law of supply and demand, which should be the
ruling force in an open and competitive market. * * * With the facilities of storage
a sufficient amount of the natural market can be withdrawn at any time to create an
effectual corner and to put prices at any desired point. •
According to figures taken from the Ice and Refrigeration Blue Book by the
New York World, there are now held in 55S cold-storage plants 14,000,000 cattle,
6,000,000 calves, 25,000,000 sheep and lambs, 50,000 hogs, which makes “one
entire animal for each adult in the United States, with enough whole animals
left over to give two to each family.” -
The cold-storage system makes it possible, if not customary, for the frozen
remains of an ancestor to remain in cold suspense until its progeny has grown
to middle age, and then for them to meet in fricasseed reunion on some bill of
fare, both as strictly fresh.
Other causes assigned are (1) that unscrupulous dealers raise prices, alleging
that duties have been raised, when duties have not been raised; (2) that dealers
take advantage of an increased demand to unduly raise prices; and (3) that the
Tetail business in large cities is Overdoñe. 3.
Secretary Wilson argues that 20 or more small shops divide the retail busi-
ness within a given area that could be served by one large shop, and that cus-
tomers therefore pay for Tent, clerk hire, and delivery service of 20 shops
when one large shop could do the business. This proceeds upon the assump-
tion that a local monopoly would charge less than a local combination; I say
combination, because, as a rule, there is such a coincidence in prices among
dealers as to raise the presumption that there is no competition among them.
And yet these are not the people who live in palaces and own private yachts.
AN ANCIENT PROBLICAI.
This question of prices is not new. -
In the reign of Edward III they passed the statute of laborers, which under-
took to regulate wages and prices of food.
In the same reign they undertook to define by law what men should eat
and what they should wear. -
In the same reign they passed laws against engrossing, forestalling, re-
grating, and badgering, by which buying and selling at wholesale and holding
for a rise was made a crime, and they were repealed in the reign of George III,
because they discouraged growth and enhanced prices.
In the reign of Edward IV they tried to define by law “the length and
breadth of cloth to be sold.”
In the reign of Edward VI they passed laws to punish “Victualers” who
conspired to sell victuals too high, and to punish laborers who had “con-
federated in respect to their WOrk.”
In the reign of Elizabeth they tried again to fix by law “wages according
to the plenty, scarcity, or necessity in respect to the time.”
In 1777 the Continental Congress recommended that the several States ap-
point commissioners “to regulate and ascertain the price of labor, manufac-
tures, internal produce, and commodities imported from foreign parts; * * *
also to regulate the charges of innholders,” and several of the States passed
such laws and then repealed them, because, as the governor of Rhode Island
declared, they resulted in an “almost entire stop of vending the necessaries
Of life.”
4.4333—9061
14
YEIURRY AND CONGESTION.
The Whole Situation is filled With ContradictionS. The air is filled With bicker-
ings to locate the blame for high prices, which everybody likes when they are
Coming his Way.
Bills, resolutions, investigations, commissions, boycotts, antimeat Societies,
antiegg societies, antifood-trust Societies, and vegetarian Societies Occupy the
headlines.
And in the midst of it all gentlemen on the other side, after their time-hon-
Ored custom, are going about diligently trying to Convert discontent into votes.
“And the thing that hath been is that which shall be “until the millennium
dawns and the voice of the leather-lunged demagogue is no longer heal’d in the
land.
I have undertaken to discuss only two questions—the tariff and prices.
Other questions are crowding for consideration and we are doing Our best to
Solve them.
We can not solve them all at Once, though, and SOme questions are beyond
legislative solution and must await the slow solution of time and evolution.
We have grown in territory, population, Wealth, and the COmplexity Of Our
problems far beyond the foresight of our founders. *
From an occasional mill seated in parochial content upon the bank of Some
stream with its village surroundings, “keeping time to the click of the mill,”
we now have about 600,000 factories, employing about 6,000,000 people, keeping
time to the demands of 90,000,000 people.
From 23 miles of railroad in 1830 we have 235,000 miles of railroad now,
Over which 57,000 locomotives are hauling 2,000,000 freight cars loaded with
the products of the prosperity of 90,000,000 people, the value of whose products
is increased or diminished accordingly as men alre employed Or unemployed or
partly employed.
From an occasional steamboat creeping along Our Shores and inland Waters
in 1830 great ships now ply like ferries between the continents.
The average business man does business with a telephone at One ear, a ste-
nographer at each elbow, a telegraph office next dOOr, a Wireless Station within
easy reach, and an automobile at the door, and before many years he will Want
a flying machine to avoid the Crush in the Street below.
To paraphrase Carlyle, the proper epic of the world is no longer “arms and
the man ; ” it is tools and the man, machinery and the man, money and the man.
To define and Tegulate “the rights of persons and the rights Of things ’’ in all
their complicated relations and ramifications, the Supreme Court, the circuit
courts, and the district courts of the United States, and the courts of 46 States,
4 Territories, the District of Columbia, the Canal Zone, Porto Rico, and the Phil-
ippine Islands are grinding out decisions, and the States and the Territories and
the districts and the territory “appurtenant to and belonging to ” the United
States are making new laws, until Our System of jurisprudence is getting to be
what Cromwell said the laws of England Were, “a tortuous and ungodly jumble.”
“Times are changed and We are changed With them.” The impersonal, un-
maternal, wholesale incubator has become the mother of the Chicken and a
type of some conditions.
Federated plants managed by Salaried intermediaries are required to produce
the largest possible results at the lowest possible cost, and the old personal and
direct relation between employer and employee has necessarily become a thing
Of the past.
We are getting farther and farther away from the ground, and farther and
farther away from the old fundamental human relations that sustain and con-
sole folks, bind them together, and make then an invincible whole. I say this,
notwithstanding the fact that we are spending more for charity and the allevia-
tion of misfortune than ever before.
The World is getting smaller by reason of the annihilation of distance, but We
are not getting closer together except in great emergencies.
Here in America we are always going Somewhere and going very fast, and we
generally go Our Ways Separately, although We jostle One another On the side-
WalkS. r
This is an age of hurry and congestion and steam enginism. We run the
machine and the machine runs us.
It is also an age of great exploitation. Our statistical output amazes and
delights us. We never question it unless it does not seem big enough, and we
have only recently begun to consider whether our resources are inexhaustible.
4.4333—9061
/f
!
15
POLITICS, MEN, AND LEADERS OF MEN.
But invention, machinery, and money do not wholly measure the World’s
progress. In the long run unmechanical, unlimercenary ideas and principles are
the things that count most. -
The most powerful influence for the regeneration and progress of the world
came from a little barren province of Rome some two thousand years ago, long
before the uses of Steam almd electricity had been dreamed of,
The machine, the factory, the statue, the painting, the law, is the visible shape
Which the thought takes On. -
In this way the thought becomes a visible fact. In this way the talk on the
street to-day becomes the law to-morrow, and in a free country it makes its way
to the statute books through the instrumentality of politics. -
Politics is a mere human a SSOciation, and the association is seldom better than
the men who compose it—Sometimes it is worse—but it is the best means known
to men for the sifting and winnowing of political principles.
Politics means parties, and parties mean the people, and parties have to have
leaders and chief priests and Scribes and pharisees and camp followers, ap-
parently. - .
But there is no country in the world where the individual citizen, the aver-
age man, is more intimately associated with the purposes and ideals of his
government than here in America, and the time has gone by when the common
people—the rank and file—formed the unregarded background for the exploita-
tion Of the few.
I was up in Maine a few weeks ago, and they told me a saying of Hannibal
FIamlin. He was asked Why his leadership was uniformly successful, and he said:
Well, I look over my shoulder every once in awhile to see how they want to be led.
This is the golden age of the spot-light, opera-bouffe, whirling-dervish form of
politician, who leads for a while. -
But the true leader of to-day or to-morrow, whoever he may be, can never
win success for himself or for any party unless he seeks to build party success
upon fundamental principles of right.
|
Eſe must Stand for things that are close to the hearts and consciences of men.
He must be in touch With men—not machines.
He must be a man among men, touched with the feeling of their infirmities,
but helpful to aid them in their infirmities. -
He must be inspired by the breath of their inspirations.
He must interpret them to themselves, and when he speaks they must feel
their thought expressed through him.
And when he acts and decides, after the tide of public opinion has swept this
way and that, it must be as if he announced and Sealed the public judgment as
the incarnate representative of the collective spirit of the average man.
Powerful influences are stirring among the people, but so long as the best in
men is uppermost, and SO lollg as the best men are uppermost almong men, We
shall go forward on the upgrade.
The Wealth of this country depends upon the labor of the average man. It
also depends upon the ability of the exceptional man to multiply the value of
the products of the labor of the average man, and both are entitled to their
Teward.
But three things, I believe, the people of this country have definitely deter-
mined upon—one, that there shall not grow up among us a privileged class which
Shall be above the law ; another, that this Government Shall Wisely control men
and associations of men ; and, another, that the people Shall Control the Govern-
ment to the end that this Nation, the first in human bistory to be “consecrated
to liberty and dedicated to the proposition that all men are created equal,” shall
not fail of its high mission almOng Imen.
APPENDIX.
The following table shows— ge # * >
1. The average retail prices of certain articles of common use in the fourth district of
Michigan for the months of February, 1890, 1900, and 1910, and average prices of the same
articles in Windsor, Ontario, in May, 1910; also the reductions or increases in duties in the
Payne law as compared with the Dingley law. Where no reduction or increase is indicated,
there has been no change of rates.
2. That of 58 articles of common use in the fourth district of Michigan and in Windsor,
Ontario, the average prices of 36 articles are higher in Windsor than in the fourth district,
the average prices of 14 articles are lower in Windsor than in the fourth district, and the
prices of 3 articles are the same. . On 5 items accurate comparison is impossible, by reason
of misunderstanding of inquiries or differences in basis of calculation.
4.4333—9061
16
Prices.
Duties.
Article. United States. Canada.
1890. 1900. 1910. 1910. Reduction. Increase.
Per cent. | Per cent.
Butter------------------------------- $0.15 $0.18 $0.28 $0.315 ------------|----------
Tºggs -------------------------------- .12 .18 .28 .22 l------------|----------
Flour-------------- per 100 pounds__ 2.35 2.20 3.15 3.15 ------------|----------
Sugar, refined ---------------------- .06 .055 .06 .055 (*) ----------
Beans-------------------- per (Illart-- .06 .07 .08 .09 ------------|----------
Molasses---------------- per gallon-- .40 .45 .50 -50 ----------------------
Tea---------------------------------- .50 .50 .50 .43 (b) (b)
Coffee------------------------------- .26 .21 .22 .325 (b) (b)
Kerosene ---------------------------- .12 .10 .10 .18 (c) (9)
Potatoes---------------------------- .40 .50 .45 -50 ------------|----------
Beef:
Roasts -------------------------- .08 .10 .12 .15
Porterhouse--------------------- .12 .13 .16 .19 25
Sirloin -------------------------- .11 .13 .15 .18 || “ --------- gº
Round--------------------------- .10 .10 .13 .15
POrk:
Hams --------------------------- .10 .12 .16 .21 20 l----------
Sausages------------------------ .09 ... 10 .13 .15 |
Tresh pork---------------------- .09 .10 .14 .19 25 --------- º
Salt side pork------------------- .09 .09 .14 .15 J
Mutton: -
Roasts -------------------------- .11 .12 .16 .165 il 25
Chops.--------------------------- .12 .13 .18 .165 || “ ----------
Live stock:
Beef----------------------------- .028 .032 .049 .11 ------------|----------
Mutton-------------------------- .037 .039 .053 .145 |------------|----------
Pork ---------------------------- ,036 .046 .087 .125 ----------------------
Suits, low-priced-------------------- 11.00 11.75 15.00 * 5.00 ------------|----------
Hats -------------------------------- 2.00 2.00 2.35 1.50 ------------|----------
Shirts------------------------------- .85 .S5 1.00 1.375 ------------|----------
UnderWear-------------------------- 1.00 1.1() 1.25 1.375 ------------|----------
Gloves------------------------------- .90 1.00 1.25 1.375 ------------|----------
Shoes:
Ladies'-------------------------- 2.25 2.40 3.00 2.50
Men's---------------------------- 2. () 2.75 3.25 3.00 - 60 ----------
Children's----------------------- 1.10 1.35 1.60 .75
WOOd:
• Hard---------------------------- 1.60 2.00 2.60 8.00 ------------|----------
Soft----------------------------- 1.15 1.30 1.80 3.00 ------------|----------
Coal:
Anthracite ---------------------- 6.90 6.75 7.65 7.00 (b) (b)
Bituminous --------------------- 4.05 4.05 5.05 6.00 33 ----------
PlovyS:
Riding--------------------------- 37.50 37.50 41.00 45.00
Walking------------------------- 12.00 11.25 11.50 13.00
Harrows---------------------------- 14.00 1] .50 12.00 14. 75
Cultivators ------------------------- 16.00 16.00 17.00 19.15 25 ----------
Mowers ----------------------------- 4:1.00 43.50 46.00 50.00
Rakes ------------------------------- 20.00 21.00 24.00 31.00
Binders------------------------------ 123.00 120.00 130.00 135.00.
Wagons, farm---------------------- 56.00 57.00 G9.00 60.00 ------------|----------
Buggies, medium ------------------- 53.00 54.00 61.00 85.00 ------------|----------
Wheat------------------------------- .78 .67 1.20 1.00 l----------------------
Corn -------------------------------- .36 . 40 .62 •00 ------------|----------
Oats--------------------------------- 24 .2S .47 -35 ------------|----------
Rye---------------------------------- 43 .47 .76 •05 ------------|----------
Lumber:
2 by 4---------------------------- 10.80 15.00 20.00 24.00
2 by 6---------------------------- 11.40 16.00. 20.00 24.00
2 by 8---------------------------- 11.80 16.00 20.00 24.00 37;
2 by 10--------------------------- 11.80 16.15 20.00 24.00 ( : [- - - - - - - - - -
2 by 12--------------------------- 11.90 16.35 21. 40 24.00
Sheathing----------------------- 9, 60 13.60 16.50 20.50
I'looring ------------------------ 17.00 21.80 25.15 32.50 35
Siding--------------------------- 15.00 19.30 22.60. 27.50 9 i----------
Shingles------------------------- 2.60 2.85 3.50 3.50 ------------ 663
Lath ---------------------------- 2.65 4.05" 4.55 5.00 20 ----------

a Reduction, $1.95 to $1.90.
b Free under both laws.
• Free, and countervailing duty removed.
d And
Ul]).
NOTE.--The price of butter at Windsor, 313 cents, is an average between the price of dairy
butter, which is 30 cents, and creamery butter, which is 33 cents.
The price of fiour at Windsor, $3.15 per 100 pounds, is an average between the price of flour
made from Ontario Wheat, $2.75, and the price of that made from wheat from the Northwest, $3.50.
The price of suits at Windsor is the price of t
is for an average ready-made suit.
he lowest grade sold there. The American price
The price of wood as given at Windsor is the price for a cord of 4-foot wood, whereas the
American price is for 18-inch wood.
The prices of live Stock as given at Windsor are evidently for dressed carcasses
live stock on the hoof, for which the American prices are given.
4.4333—9061
O
, and not for
HY - 2 ºversiºs,
\-A-52. - .x. r
Wºz
- () ~\
$º MICHigº
THE WOOL SCIPIEDULE
THE ROAD TO FREEDOM
Tree Trade and a Single Tax to Open the Avenues
Of Production
SPEECH
OF
HON. HENRY GEORGE, JR.
OF NEW YORK
IN THIE
ATIVES
EIOUSE OF REPRESENT
JUNE 10, 1911
WASFIINGTON
GOVERNMENT IPRINTING OFFICE
458–1()150



1011
SPEECH
OF
H O N. H E N R Y G E O R GE, J.R.
The House being in Committee of the Whole House on the state of the Union and
having under consideration the bill (H. R. 11019) to reduce the duties on Wool and
manufactures of Wool— -
Mr. GEORGE Said :
Mr. CHAIRMAN : In the times of Alexander the Great the Macedonian plmalanx
was the invincible military formation of the World. It originated in Macedonia
before Philip and Alexander, was greatly developed by them, and then Was
taken up by the Greeks. For centuries it swept all before it.
This formation consisted of spearmen. They were heavily armored and car-
ried great oblong shields to hide the body. They bore but One weapon—a Spear
16 feet long. They formed in close order, shoulder close to shoulder, their
spears extending. They were ranged in ranks, close together, four, six, eight,
and even more deep. Those behind had their Spears extended between those
in front. They made one solid mass of moving armor and Spear points; a for-
Imation at first 4,000 men strong, then 6,000, and at last up to 20,000; a great,
slowly advancing wall, flanked on either side with armor almd Spears and
likewise backed.
Advancing over flat ground, this huge living military machine carried all
before it until it tried to conquer Italy. Under Pyrrhus the plmalanx went
down into the dust before the free formation of ROlme.
The Roman soldier, carrying bis lighter body armor, his Smaller shield, his
short double-edged Sword, was quicker, more ninble, COuld move Over the field
in Open or close order. But when he met the phalanx he had a new military.
problem on his hands; Spears, Spears, Spears, a gigantic Oblong of Spears;
whether in front, on either flank, or in the rear. They bristled like a vast
porcupine. How was he to get within arm's reach of the body of the Greek
soldier, for do this he must to use his weapon—the short sword. Then was
Roman genius called upon to invent a weapon that should destroy the plmalanx.
The Weapon was produced. It was the pilum, a lance or short Spear that could
be hurled with great force and accuracy 50 feet or more. Each Roman soldier
marked out an individual behind the Wall of Spears. Watching for an exposed
part, he hurled the pilum. If a Spearman fell, he made confusion and a breach
in the line of Spears. That was the ROman Chalnce. The legionaries ran in
between the points and with their Swords had the Spearmen, helpless in heavy
armor, at their mercy. One such breach made, there was a wedge-like rush
from the Roman ralllks and the whole phalanx was destroyed. Thus was
Pyrrhus vanquished. The Roman with his broadsword and his pilum became
the World’s lmaster. • ..
!
OUR PIHALANX AND PILUM.
Mr. Chairman, the tariff beneficiaries have been the economic and political
phalanx for long years in the United States. They have formed one great
compact united body. Realizing that they must stand together or be destroyed
in detail, they have acted as a mass, their shields Spread, their spears advanced;
from time to time moving for Ward to new ground of vantage; making at all
times a common bristling defense against all general attack.
And so it has been until this CongreSS. In this Special Session the method of
attack On the tariff phalanx has Chalnged. The pilum has now come into use in
this Democratic House. This wool bill which we are now debating; the Cana-
dian reciprocity bill and the free-list bill which We have passed; the other
schedule bills that may hereafter pass are Our Roman lances which we hurl at
2 458–101.50
3 -
weak points in the tariff ranks. We break down the spears here, we break
down the Spears there, we make a breach and widen, it with a rush, and then
the Cry in the tariff ranks is each for himself. Small and insignificant as these
bills may appear, they carry destruction. Hurled by the Democratic side in this
Congress, the tariff army line will at points be pierced and breached, and the
monopoly phalanx which, SO long as it could stand intact, was invincible, Will
end in utter rout and destruction. [Applause On the Democratic side.]
Therefore, Mr. Chairman, I have great joy in voting for this Wool bill. I do
not regard it as much Of a bill, but since it unites the Democratic side in battle
Order it Will do. My preference Was to have free Wool and free WOOlens, too. I
Would have liked the bill to declare for free trade in wool and Woolens. [Ap-
plause..] But, thank you, I shall take What I can get. [Applause.] -
I believe that the gentleman from Georgia [Mr. BRANTLEY J is perfectly right
in Stating that any tariff at all involves protection. I am against any protec-
tion Whatever, and therefore I am altogether against a tariff. [Applause..] I
am against a tariff for revenue, for I regard it as one of the Worst Ways for
raising revenue. -
But, Mr. Chairman, Suppose that We reach a revenue basis; Suppose We Cut
out much of the tariff, how are we to supplement the revenue? Shall we go to
an income tax? Some 30 States have approved of a change in the Constitution
that Will enable UIS tº do that, and some half dozen more States approving it,
Congress Will have authority to pass such an act. If I should be a Member of
this House at that time, I should take great pleasure in Voting for it. [Ap-
plause..] It has one merit over a tariff tax; it is direct. You can see it; you
know just exactly what you are paying. Who in the World knows What he is
paying under a tariff tax?
A MEMBER. Or who gets it? -
Mr. GEORGE. Aye, or who gets it? For, as has been said of old, the tariff
is a device for getting the most feathers With the least Squawking. [Laughter
and applause.]
But, While an income tax is better than a tariff tax, I am Opposed to it. Why
tax inconnes? Men toil away their days in trying to get incomes. Why should
they not keep them to spend as they please? Why should the Government tax:
any part into the Public Treasury 7 To support the Government, it is said. But
to get support in that way is all a mistake. The British have had a high in-
come tax, but they are now lowering it. The whole trend of taxation is away
from that idea. The march of enlightenment Opposes a tax of any kind upoly
production. It opposes personal property taxes. It Opposes taxation upon the
improvements On land—upon dwellings, stores, factories; upon the buildings of
the fal'Imer, his fences, ditches, drains—Opposes the taxation of anything and
eyerything that comes from human toil.
THE SINGLE TAXI.
To him that produceth, to him should go the fruits thereof. This is getting
to be the current of thought. Consequently I believe that just so surely as this
country shall establish an inCOme tax that Surely will the mass Of those Who
pay it become active in quest of some substitute tax. They will be far more
active against an income tax than they may nOW be against a tariff tax, because
an income tax is direct in its incidence. It can be seen plainly by the man who
pays it. Therefore income-tax payers will rebel against this tax upon their
industry. They will look for a tax that will raise revenue, but not tax thrift.
What tax will do that? A tax on land values will do it; do it absolutely. It
Will fall on privilege, and not any part of it on toil.
This brings us to a consideration of, the single-tax philosophy. I am a single
taxer. I do not believe in taxes upon any kind of industry, or upon anything
that comes from industry. I believe the whole burden of taxation—Federal,
State, and municipal—should fall upon monopoly. I believe it should fall upon
the mother of all monopolies; upon the earth ; upon that value which comes to
any piece of land not by reason of the toil of its owner—for all improvements
should be exempted—but from the development of the community; from social
growth' and Social improvement. -
That part of New York City known as Manhattan Borough, Manhattan
Island, Comprises land Officially Valued at more than three thousand million
dollars. The island was bought from the Indians by Dutch traders in the
Seventeenth century for $24 worth of Calico and glass beads. Yet now that
458—101.50 -
4
same piece of land stands on the tax books at three thousand millions. That
is the Official value of the ground alone. It does not include the value of
buildings or other improvements of any kind. Who made the increase in
value from $24 to three thousand million dollars—who but all the people?
The coming of population did part; the birth of babies did part; the laying
out of streets, the making of great public improvements, the general toil, the
building this island into a great center of production, Of manufacturing and
trade made parts. Social growth and social improvement brought the value
to that piece of land. Why should it not be taken into the Public Treasury
for social uses? Why not abolish all other taxes and take by taxation this pub-
licly-made value for the uses of government—municipal, State, and Federal?
Now, such action is not so far away. Bills are in the State legislature to
abolish the personal-property tax and to reduce taxation. On improvements On
land. This would involve a corresponding increase in the tax now falling On
the ground Value. -
To tax land values, ground values, alone is not a mere dream. It is not the
utterance of a man so far in the advance of practical affairs as just to be
listened to for a brief hour and then be dismissed. My Colleagues, it is a prin-
ciple that is now and here. It is claiming the grave attention, Shaping the
legislation, of the advanced nations of the earth. It is in the Orient; it is in
the Occident; it is in the Antipodes; it is amongst the progressive people to
the north of us With whom we are seeking closer ties; it has made a mo-
mentous, convulsive drive forward in Great Britain.
IN PROGRESSIVE JAPAN.
In progressive Japan, for instance, they have just made a substantial ad-
Vance in this method of taxation. It has come through the Simple process of a
better valuation of the land. Japan has all manner of taxes. It has tax-
burdened production in a multitude of ways. It has had great need of revenue.
It is a country long given to agriculture and now beginning to manufacture.
It has within 15 years sustained two great Wars, one with China, the greatest
power in Asia ; the other with Russia, supposedly the greatest military power
in Europe. It has large and growing public expense—COSt Of railroads, for the
railroads there are GOVernment roads, as are the telegraphs and the telephoneS.
It has. Cost of rural roads, public buildings, Schools—the School System Of OurS
transplanted. It has cost of reconstructed cities, with public water and sewer
Service, with Wide and straight streets; cost of modern Occidental administra-
tion and police. Then, since it is in the midst of volcanic nation-making and
Ination-destroying Asiatic eCODOmic and political forces, it needs, or believes it
needs, a large military establishment—a big army, more and better ships.
All this requires revenue. Where get it? The premier, Marshal Marquis
Katsura, found the Way. He put through the Diet an act for a new valuation
Of the lands of the cities. The cities had grown enormously in the last four
decades. Individuals had made fortunes out of rising land values. The land-
tax rate was very small and there had been no revaluation in 35 years. FIis
act called for a new valuation. It was made; and, the same tax rate being ap-
plied, brought a handsOme increase in the revenue.
TAXIING LAND WALUES IN GERMANY.
In Germany the constant cry has been for more revenue. It has been the
problem of practical statesmen, such as faces every legislature in the World.
HOW raise enough revenue? It had long been realized that land Was valued
in Germany following methods of the Middle Ages. The value was determined
by the yield of the land, not its market price. The small farmer’s land and
the Small merchant's land yielded a relatively large produce; therefore it was
Valued high. The great lord’s parks and hunting grounds and the speculator's
unimproved tracts about a growing city yielded little or no produce; therefore
that land was set at a low valuation. Various of the German States had
authorized their municipalities to make new valuations, abandoning this yield-
Of-the-land process and adopting the market-price method. It worked admir-
ably. It brought in revenue and discouraged the holding of idle lands.
The Reichstag presently followed that same line. It put through a bill to
make a Selling-price valuation of land, then to tax that. But since the munici-
palities claimed this land-values tax as a municipal privilege, the Imperial
458—101.50 t **
5
Government compromised with the lesser governments. It divided the revenue
So raised with the other governments. Tifty per cent Of this revenue was to
go to the imperial exchequer, the other 50 per cent to be divided between the
local and the State governments. &
In this way a land-values tax is raising an abundance of revenue where for-
merly it yielded next to nothing. The Small landowner is paying little ; the
great landowner much. Should Germany carry that policy further and increase
the tax, there would be in land Values—values made by the population of
Germany and not by the landowners alone—a sufficient revenue to meet all the
governmental needs, Imperial, State, Ol' municipal. Then all the Other taxes—
tariff taxes, income taxes, stamp duties, and every other tax devised for revenue
raising—could be reduced, and, if desired, totally abolished.
IN AUSTRALASIA.
But it is when we turn to the people of our own stock and language—to the
people in the antipodes, for instance—that we see how easily this principle of
taxation might be applied to our conditions in this country; for in New
Zealand they have many taxes, but they raise one-sixth of their revenue by a
tax. On land Values. In determining this value they COI) sider grOUInd alone—
what the political economists call the “economic rent of land.” It is that value
attaching to a given piece of land exclusive of any Value of improvements
upon it. -
In Australia they have what Henry D. Lloyd called the “Australian tax.”
It is merely a small ground-value tax. It was resorted to to hit the Specula-
tors who went in advance Of the pioneers, acquiring the land and holding it
against use until they got their price. They would not use it themselves;
they would allow others to use it only at the price of being bought Out. They
penalized production.
Mr. NORRIS. In fixing the value of the land for the purpose of taxation,
you would not take into consideration any improvements?
Mr. GEORGE. As though it had no improvement on it; what it would sell
for in the Open market. That market price is the Sulm Of advantages in the
situation ; if there be public streets or other public improvements, for instance;
if there be improvements On adjoining lots—all Such COnsiderations enter into
Value.
Mr. NOT&TIS. So that you would not consider the improvement of the land
you are fixing, but you would consider the Other improvements On other land
that llad a tendency to put a value into that land which you were taxing?
Mr. GEORGE: Yes; but you would not have to bother about that. You
Simply determine the Selling Value Of the land.
WAN COUVE2.
Mr. GEORGE. Up north of us, in Vancouver, British Columbia, they have
applied what is called the “single tax.” So far as local revenues are con-
cerned, it is a single tax ; but it is not the single tax I am advocating, since
it is very small in amount—not sufficient to check the great land “boom " now
in progress there in conscquence of the exemption of buildings and all other
improvements from taxation.
The city began Some years ago by exempting 25 per cent of the Value of
improvements from taxation. That worked so well that 50 per cent were ex-
empted. Then they exempted 75 per cent; and for two years, I think it is, they
have entirely removed improvements from the tax rolls. The course of per-
Solnal-property exemption was similar. No personalty tax now exists there.
The sole Source of revenue in that advancing city is the land value, ground
yalue; the value called “economic rent '' by the political economists.
As a result, Vancouver has increased in improvements faster than any city
in the World. I was informed by Mayor Taylor during a visit there that the
increase in Vancouver’s improvements during the last year was 87 per cent.
There being Ino tax. On buildingS. or other things a man might put on his land,
industry and thrift are encouraged. .
Indeed, there is so much benefit from this policy that land values are rising.
There is very active speculation in land, The advantages from the exemption
of improvements is likely to be absorbed by land Speculation. Against this the
458—10150 -
6
people of Vancouver will be compelled to defend themselves by increasing the
tax rate On land ValueS. - -
But this aside, the idea of exempting improvements from taxation is spread-
ing all through western Canada. Wherever tried, it is working most prosper-
ously. And nowhere, in Canada, Australia, or anywhere else, is there the least
disposition to go back to the old taxes. The people in Washington and Oregon,
as you can find if you go out to those States, are looking with amazed eyes at
Canada and her exemption of industry from any taxation. Attracted by that,
many are going up over the border. Many more will most assuredly go unless
those Western States shall adopt a similar policy of exempting improvements
from taxation.
Some say the farmers would object to this single tax. But have we not seen
in the newspapers how the Canadian farmers from the West went to the Do-
minion Parliament and asked for the adoption of the reciprocity treaty with
us? They offered to make up any loss of revenue by Submitting to a tax upon
land Values. They believed that they would get benefits from even that SD]all
measure of free trade with the United States, and Were Willing to pay for such
benefit by accepting a tax upon ground values—on the ground values alone, of
course, less all improvement value. Certainly, this is an answer to any who
say that the farmers of this country would never bear such taxation. For, let
me repeat, this tax is upon land values exclusively. When you come to con-
sider the values in a farm you find that they are largely betterments—ilmprove-
ments the farmer's labor has Wrought. DXempting them, the value that remains
to be taxed is very much shrunk up. Moreover, Speculative value in the land
would lessen. Indeed, Speculative value would disappear with heavy taxation
Of land Values.
TI-IE BRITISH BUDGET FIGEIT.
But it is to Great Britain that we must turn for the most extraordinary in-
stance of advancement along this line. The budget fight, of which the World
has heard, was nothing but a fight with landlords over a tax upon land values.
The Right Hon. Lloyd George, chancellor of the exchequer, framed the budget
and led the fight. He is, I believe, the most Wonderful politician in the World.
He rose from the ranks. He came from the Welsh Hills, ate of the bitter bread
of poverty, practiced humbly as a lawyer, and then reached Parliament. He
came face to face with all the great Social and political problems of his day.
None were more difficult than the taxation problem. The Conservative, or
landlord, party was proposing to revive protectionism in the United Kingdom
and So make privilege more Secure. George Struck at this with a land tax. He
brought in a budget in most respects just like other budgets of many years run-
ning in its main features. His budget contained a slight difference. It was a
little bit of an item—a tax to fall on land values. The tax was divided into two
parts: A part was to fall upon the value of land at the time of its sale; the
Other part was to be an annual charge.
When presenting his budget to Parliament, Lloyd George explained that, pre-
ceding the laying Of the tax, there would have to be a revaluation of the land
Of the United Kingdom ; that SOme had not been Valued since the time the
Stuarts were kings; and that Some stood valued as it was in the days when the
Norman William Crossed the channel and took the crown from the Saxon
E[arold. * *
The matter of Valuing was not to be done by public officials, as is our common
practice. Under the budget it was to be done by the landlords themselves.
They were to make out Schedules upon which the tax would be imposed.
Imagine any proposition of that sort in this country | Imagine the delight of
our great trusts, at whose core is the most valuable land, coming to the
tax office and making their own valuation for public taxation 1 And yet Lloyd
George invited the British landlords to do just this.
And upon a valuation so derived he proposed in the first instance to lay a
tax. How much of a tax do you suppose? Why, one-fifth of 1 per cent! Why
should there be any hullabaloo about that? One-fifth of 1 per cent . The land-
OWImers of New York City paid more than 2 per cent on their land values this
year. They paid more than ten times the amount the British landlords were
under the Lloyd George budget asked to pay !
There was the other part of the budget proposition. The Government pro-
posed to take note of the valuation any owner should make for taxation pur-
458–101.50 -
7
poses, and again when the land should be sold—six months, a year, five years,
or whenever afterwards. Should the value at the sale show any increase over
the value made for taxation purposes, the Government was to treat it as an
“unearned increment"—that is, as unearned by the landlord. Of this “un-
earned increment’’ the Government was to take 20 per cent. *
As for the amount of revenue to be raised under this tax on land values, it
was preposterously small. It actually called for only £600,000–$3,000,000 of
our money. What would we say to a Federal tax that was going to raise
$3,000,000? Why, $3,000,000 would not pay a third or a fourth part of one of
the Super-Dreadnought killing machines that We think. We have to add to Our
TNavy, in these days of profound peace. Why, Mr. Astor, the ‘gentleman Who
expatriated himself and went over to England to become a British subject,
could have paid out of his Manhattan Island rents, which he still exacts, that
amount of money andl not thought Of it. He had just bought an old castle—
I do not know what date it goes back to-and he was fixing it up and refurnish-
ing it. He will, first and last, spend several times $3,000,000. The Duke of
Westminster, the Duke of Bedford, or any other of the half (lozen great London
landlords, ..could have paid that $3,000,000, or £600,000, and not been hurt one
bit; indeed, Scarcely noticed the amount. - - -
THIN EDGE OF TEIE WEDGE.
Why, then, all the opposition we have read of ? Because the lords perceived
in this small tax the thin edge of the Wedge. A Small tax rate this year; but
with a valuation made, the tax might be heavy next year and heavier the year
after.
Besidics, the chancellor of the exchequer had in public speeches invited mu-
nicipalities to consider whether they would not like to take this imperial land
Valuation as a basis for a little IOCal revenue raising, knowing, as all the King-
dom knew, that London, Glasgow, Dublin, and a hundred other of the chief
cities and local governing centers had petitioned Parliament for just such
permission. -
What wonder, then, that the lords rose up and howled. They called Lloyd
George a thief. Worse than that—listen, you lawyers in this House—they
called him an attorney ! If there are any Welshmen here, beware for When
their wrath broke all bounds they called bim a “Welshman ''
And of the Liberal Party the lords cried : “They are pulling down the pillars
of the State. They are destroying the British Constitution. They are dragging
to the grave the greatest nation On earth.” -
Let me tell you, gentlemen, ILloyd George and his progressive party were pull-
ing down coroneted landlordism. The tax was Small, but British privilege
Rnew its import. The tax was small then, but it is going to be increased, not
only as an imperial tax, but as a basis for local reyenues.
So here We have the Way made clear to us. The great people from whom
our institutions have come, from whose loins the body Of Our people Originally
sprang, have fought down any proposal to return to protectionism; they have
reduced income taxation, and in furious political Conflict they have laid the
foundations for taxing land monopoly. And in all this the English, Irish,
. Scotch, and Welsh radicals have stood together as never before in the politics
Of the United Kingdom. -
Great Britain has much freedom of trade. They do not tax imports that
compete with things produced in Great Britain. They do tax Some of the things
not produced there, but purely for revenue purposes. These taxes may go be-
fore a great while. The land-values tax is Small now, but it is likely to grow
fast because of those who oppose it—the landed aristocracy.
Why should we in this country not go to land values for all our revenues?
We get part there; why not all? Abolish the tariff and other taxes on pro-
duction and increase Our present taxation. On land Values. If the Older coun-
tries find it good, if the newer parts of the World, Australia and Canada, find
it good, why should not this country find it good?
Is there in any part of the World a greater, more damaging, more damning
kind of land monopoly than in this COuntry? Can you find in any part of the
World landlords so great, SO mighty 7 Where will you find, among the peerage
of Europe, dukes or earls Or Counts Or viscounts So powerful from their landed
possessions as are simple citizens Of Our Country?
458—10150
8
A steel trust has vast possessions. Those possessions form the very core of
its monopoly. An oil trust has great landed possessions—vast possessions, of
which it choses to used only a small part, shutting all the rest off from use by
anybody. You will find the roots of most of the trusts in land monopoly. Why
not apply the single tax? All the revenue raised in this country—Federal, State,
local—amounts in round numbers to $2,000,000,000 a year. The ground-rent
roll of the country probably approximates four thousand millions, so that there
is an ample source of revenue for all needs.
Mr. NEEDFIAM. It may interest the gentleman to know that the irrigation
district in which I live in California has within the past two weeks, by popular
vote, voted to exempt the irrigation improvements from all taxation in the
State of California. *
Mr. GEOIRGE. I congratulate the State of California. &
Land monopolies such as find example only, if there be any comparison what-
ever, in the imperial days of Rome, exist here. The great Warwick, the king-
maker, could go to Parliament with 600 liveried men. But a simple citizen, a
Garnegie or any one of a large number that any of us might name, could, if he
chose, have not 600 but 6,000—we might Say, in some instances, 60,000–
retainers, should he choose to go abroad in such a style.
Whence comes all this? Primarily from ownership of the soil. That is the
very essence of these monopoly fortunes. Given a condition where the few own
the Soil that all others there must use for their subsistence, the few are the
masters of the many.
Mr. SHERLEY. The gentleman has alluded to Mr. Carnegie. Does he
think he is accurate in giving the impression that Mr. Carnegie's fortune came
as the result of the ownership of land?
Mr. GEORGE. Yes, I do ; mainly. Mr. Carnegie Was born in Scotland. He
came to this country and worked as a boy in a cotton mill in Allegheny City,
Pa. Then he worked as a telegraph operator in Pittsburg, across the river;
then as an employee of the Pennsylvania Railroad, later as its Pittsburg super-
intendent, and from that position, with the Pennsylvania Railroad to back him,
he stepped out into the manufacture of iron and steel. What did he know
about iron and Steel? He could not make a ton of iron Or steel. But he had
two things: He had a SSociated with him a genius who could make iron and
Steel, and he had the Pennsylvania Railroad behind bim, With the same kind
Of Secret contracts or understandings that Rockefeller had about that time
With the railroads for the carriage of Oil. Carnegie not only had orders for
rails, wheels, bridges, and other structural iron and steel, but he had special
rates for the carriage of finished and unfinished products to and from mines
and mills. By reason of these rates he was enabled to underbid all com-
petitors.
Much of this is told by Mr. Carnegie himself in his brief biographical sketch.
But in his most recent book, “Problems of To-day,” he describes in exact terms
and with precise instances the greatest factor in the production of the great
ºtions and great individual fortunes. He says it lies in the monopoly,
of land.
It was by holding a monopoly of the Connellsville coal fields, the best coking
coal in the world, and subsequently by possession of practically all the best or
most available iron and Steel ore in the country that the United States Steel
Corporation received material advantage over all competitors, sufficient, at any
rate, to force a gentlemen's agreement with competitors here, while the tariff
shut off competition from without.
Mr. SEIERLEY. If the gentleman will permit, I am not in any sense defend-
ing, even by questions, the method by Which Mr. Carnegie obtained his fortune.
Neither am I criticizing it. The gentleman’s Statement did not seem to me to
indicate wherein in any accurate use of the word “land ” Mr. Carnegie's
fortune was dependent upon it. I Wopuld like to have the gentleman define
just What he means by “land.”
Mr. GEORGE. By “land ” I do not mean mills, I do not mean railroad
tracks, I do not mean anything made by labor. By “land ” I mean the super-
ficies of the earth. By “land ” I mean the thing on which We stand, from which
We came, to which we return.
Mr. SHERLEY. Let us define the definition, because the very question of
what is meant by land, to my mind, is the crux of the whole proposition upon
which the gentleman builds his Superstructure of land values and land taxation.
He Says he means that which, if I may paraphrase his language, is the gift of
458—101.50 -
9
nature and not the result of man's handiwork. Does he consider iron ore when
it comes out of the land to be land within the meaning of his definition?
| Mr. GEORGE. No.: I do not.
i Mr. SHERLEY. Then, to the extent that the general ownership of iron ore
produced the fortune, it did not relate to land?
Mr. GEORGIC. I call land that which nature offers to man before man has
put his hand to it.
Mr. SHERLEY. In that sense, there is practically nothing; there is no value
at all ulntil he puts his hand to it.
Mr. GEORGE. I can have a vacant lot here in Washington, and it may lie
just as it was at the time the Indians occupied it. I can sell it for a price. Yet
Inot a Stick or a stone has been touched upon it.
; Mr. SHERLEY. Yes; it has a potential value.
Mr. GEORGE. It has an actual value, for value proceeds not only from
labor, but also from a power to exact labor.
Now, Mr. Chairman, observe the Coal Trust. I do not believe that any
amount of regulation, any amount of examination into financial accounts, any
amount of acts here in COTigress for the reorganization, if you please, of the
Coal Trust will do any lasting good. You pass regulations and set up regulators,
and then you have got to have somebody regulate the regulators. [Laughter.]
The only way to hit a combination like the Coal Trust is to hit the monopoly
principle underlying it.
TEIE ANTHRACITE-COAL TRUST,
Take the Anthracite Coal Trust in Pennsylvania. It possesses practically all
of the hard-coal land of that State. Nature has put into eastern Pennsylvania
a great deposit of hard coal. It has been the business of the anthracite railroad
companies, beginning With the Reading Railroad years ago, to get possession
Of these deposits by purchase, by long lease, and by contract for the carriage of
the coal. These railroads acting together have in these Ways got control of the
hard coal of all eastern Pennsylvania. The purpose has not been to mine coal.
It has been, rather, mot to mine coal. Their purpose has been to limit the Output
and to force up the price of coal—to work Only part of their land, a Small part,
and to let the relmainder lie idle, as though it did not exist, and to keep Othel'S
from the use of it. Why could they do that? There was no tax upon it, no
penalty on their doing it. The law does not discourage it; nor does even public
opinion. People do not realize that it could and should be stopped; that it could
be absolutely destroyed by the simple process of taxation. The law of Pennsyl-
vania requires a tax on the market value of that land. The actual practice is
not to assess at the market value, which would be as valuable mineral land.
The practice is to assess it as inferior agricultural land. Then, the tax upon
that preposterously low valuation is very small, So that these great Coal barons
go practically Without taxation upon their holdings. t
But if we were to make an absolute market value and put that upon the tax
books, and then increase the tax upon that valuation, you would See Whether
the Anthracite Trust could hold its lands idle Or keep the price Of its COśll high.
Its purpose then would not be to make a Scarcity in Output in Order to put up
prices and keep down the wages of labor by limiting opportunities for employ-
ment. A heavy tax upon the real market value of these lands Would compel
their use. Their use Would mean more demand for labor. The price of labor
would go up in the hard-coal regions. Because of the larger Output Of coal,
the price of coal would go down. Consumers in the United States would get
cheaper coal. Ilaborers in the coal regions would have higher wages, Shorter
hours, and God knows their little boys would not have to work in the breakers
or their little girls go into the silk mills to help get the family Subsistence.
[Applause.]
Mr. HAMILTON of Michigan. I wish to ask the gentleman a question
simply for information. I am very much interested in his statement. The
method of taxation which the gentleman is expounding So Very ably Would
result in What is known as expropriation eventually, would it not, of the coal
lands? That is to say, the title of the coal lands Would pass to the State,
Would it not? ---~~~~
Mr. GEORGE. No, sir.
Mr. HAMILTON of Michigan. You think that the corporations would be
able to continue to pay the tax and to Sell the coal?
458—10150 -
10
Mr. GEORGE: Yes; the whole policy would be to use land, not to hold it
out of use. Instead of high prices and Small Sales of the mined Coal, there
Would be large Sales at low prices.
Mr. FOCHT. I will ask the gentleman two questions. The assertion was
made by the gentleman from New York that under some changed conditions
the boys would not be allowed to work in the breakers of Pennsylvania. Is
the gentleman not aware of the statute there that prohibits boys from Work-
ing in the breakers? -
Second, with reference to the labor problem, does not the gentleman know.
that in the mining section there is a perfectly Satisfactory agreement between
the United Mine Workers of America and the producers Of coal?
Mr. GEORGE. The law, Inot only in Pennsylvania, but ill Califormia, in New
York, and in the South and all over the United States forbids children under a
certain age from Working at all, but their parents, driven by poverty, have to lie
about their children’s ages. [Applause On the Democratic side.] -
The gentleman asks me if I am not aware that there is a Satisfactory relation
between the United Mine Workers and the mine owners of Pennsylvania. I
know that it is satisfactory in a state of war. I do not deny that. I am not
talking about that. I am talking about a COndition where men do not have to
join labor organizations in Order to get even a Small measure of social justice.
[Applause..] I Stand for unions. I am the SOIn Of a trade-unionist. I went to
the printer’s trade myself. If I were working at a trade, I should certainly be
an active trade-unionist ; but I do not COnsider that a natural condition. It is
an unnatural condition. It is a condition where men who have nothing but their
labor to Sell must band themselves together into an Organization, Offensive and
defensive, to make the best terms of sale they can in respect to price, to time,
and the like. [Applause..] I do not regard that as natural. I regard it as
unnatural. That is the kind of arrangement that has to be made by men in a
State of industrial warfare. I am talking of Imen in a state of freedom, where
every man can look every other man in the eye as a free man.
Mr. SELERLEY. Now, if the gentleman will permit, assuming the correct-
ness of his statement, that a tax of this kind would result in the lowering of
the price of coal because of the necessity to mine and sell it, does the gentleman
also think that Such a tax would help Conservation of the natural resources?
Mr. GEORGE. Mr. Chairmall, I do not care anything about this conservation
of natural resources if I am permitted to apply the single tax. What do the
conservationists want to do—keep the public lands out of the hands of monop-
olists and speculators? Well, if you hit land monopoly with taxation, no man
will want to own land Simply for monopoly’s Sake. Monopoly’s profit would be
gone. This single tax Would tax land Inonopoly to death in the United States.
Any value attaching to land would be taken into the Public Treasury and used
by all. Therefore there would be no advantage in getting hold of farming land •
or mineral land Or timber land Or urban or suburban land unless to use it.
Mr. SHERLEY. Does the gentleman consider that there is any difference in
principle as to the View that the Government should assume toward private
property that consists of land and private property that consists of things other
than land; and, if So, what is the basis for it? - *
Mr. GEORGE. Yes; a very great difference; for who made this world? God
Almighty. And for whom did he make it? For all men, without any dis-
tinction whatsoever; and if anything in man's laws belies that everlasting
truth, it must in the end go down. But as to other things—this building, a
newspaper, a book, glass, iron, things that we see here about us, or any similar
things outside—they have come from man’s exertion. Their title springs
originally from labor. . I See a vast difference, for instance, in property in the
Ocean and in property in the fish taken by labor out of the Ocean.
Mr. SHERLEY. Very well, but can the gentleman state any condition of
land Ownership that does not have a Value as the result of man’s labor 2 -
Mr. GEORGE. Does the gentleman mean the owner's labor only 7 i
Mr. SHERLEY. Oh, we are not discussing the labor of the owner. We are
discussing man’s labor. The gentleman undertakes to make the distinction
between those things that are the gift of God and those things that are the re-
sult of man’s labor. Now, it is a perfectly proper distinction if it exists, but
if it is applied artificially to things, then the Whole fabric based upon it must
fall. i
Mr. GEORGE. I said that that value should be taken into the Public Treasury
which was the consequence of social growth, meaning increase of population;
458–101.50
sº
11
and of social improvement, meaning the laying out of streets, the putting in of
grades and bridges, the erection of public buildings, the watering, sewering,
lighting, beating, the providing of transportation for the city, and matters of
that sort. This value comes from the exertion of the community and the in-
crease in numbers of the community. It is a public value, and should be so
considered and be publicly taken. &
Mr. SHERLEY. If the gentleman will permit me, I am not quarreling with
that statement, that So far as an unearned increment is concerned it belongs
more to the community than to the individual who is the fortunate possessor
of it; but the proposition the gentleman announced in answer to my question
was that he differentiated between private land ownership and private owner-
Ship of other property, and when I asked him why, he said because he con-
sidered land to be the gift of God and private property to be the act of man’s
labor. When I asked him to further evolve that he brings me back to the prop-
Osition. Of unearned increment.
Now, the whole meat of the gentleman’s position, as it was of his father's
book—One of the most interesting and epoch-making books ever written—was
that very question. It is the crux of the whole proposition, whether land, as
he uses the word “land,” represents something that belongs to the community
at large any more than the other property.
Mr. GEORGE. Yes; the land was made by God, and the value that attaches
to it may be quite apart from the Owner’s labor. The owner may do nothing.
Any value that attaches to that particular piece of land is a public value.
To illustrate : Here you have in the center of Washington a lot, a vacant
piece of property. It has nothing whatever upon it. It has never been im-
proved in any way. Yet it has a selling value and will increase in price. Who
made that value? Surely not the labor of the man owning the land. He did
not turn a hand. He might have gone into the mountains as did Rip Van
Winkle and slept for 20 years, and returning, found a value in his land that
he had nothing to do with making. Why should not such Wallie be taken as
a public value? I certainly separate it from any value that might be put
upon that land in the Way of a house or a machine. Such value perfectly,
clearly is a private value and belongs to labor.
Mr. Chairman, this land-value tax meets, as no other kind of a tax does, the
four canons of taxation. First of all, as laid down by Adam Smith, the
father of political economy, in his “Wealth of Nations,” it is the most equal
kind of a tax.
Mr. HAMILTON of Michigan. Just a moment. A little while ago the gentle-
man stated that by the operation of the method of taxation which he is advo-
cating monopoly would be destroyed, a monopoly of coal holdings, for illustra-
tion. I want to know where the title of the property would go When the
Inonopoly is destroyed by this method of taxation.
Mr. GEORGE. The title of the land would stay Where it is. We do not
propose to change titles. You kill monopoly’s powers by taxing the value of
land. You force the land into use. The power Of monopoly is the power to
hold land out of use.
Mr. HAMILTON of Michigan. But could not the monopoly, having to pay
the increased tax, charge the increased tax upon the consumer ?
Mr. GEORGE. I invite the gentleman to consider the political economists.
This is One thing in political economy that is not in dispute. - -
Mr. HAMILTON of Michigan. Might he not undertake to do that, as he does
it now in coal properties? - -
Mr. GEORGE. No, sir. When you put a tax on production, you limit pro-
glūction. Men Will not produce unless they can get compensation for the tax.
They add the tax to the price of the product, and thereby they get recompensed
for the tax. But not so when you tax land values. By putting a tax on land
values you do not lessen the amount of land. You can not lessen it by one
grain. It is just the same in amount. But you will increase the available
quantity. You will force land into use that has been kept out of use by
speculation. This will put down the price of land, instead of putting it up.
Mr. HAMILTON of Michigan. Precisely. Now, if I understand the gentle-
mala, this coal monopoly which he is discussing is a monopoly which controls
Coal lands and is lying dormant so far as the actual mining of a part of its
lands is Concerned. It is proposed, then, to tax it so as to compel it to dig all
Of its Coal as rapidly as possible and put it upon the market, so as to be able
to pay the increased tax, and that, failing to do this, the monopoly must die.
458—101.50
12
But the gentleman denies the monopoly would actually die So far as the actual
mining of coal is coucerned. Am I right that it would have to be more active
and Innine Innore C0&ll ?
Mr. GEORGE. If the trust shall itself use the land it is now holding shut up,
then it practically becomes broken as a trust, because the feature of monopoly.
has gone, the essential part of which is to withhold from use the natural
resources and thereby make a bigher price for the product from Such parts as
alſe USed.
Mr. HAMILTON of Michigan. Suppose the gentleman's theory, then, is
correct, and the Dublic refuses to pay the increased price of coal which the Cor-
poration has been obliged to impose in order to pay the increased tax, and then
the monopoly is unable to pay the tax, does not the monopoly then lose its Coal
property, and does it not, then, go to the State?
Mr. GEOI&GIL. No, sir. If the land contains valuable coal, and the trust
will not pay the tax, then somebody will take the land who will. Valuable
land does not run around without an owner. Somebody will use it. If the,
Coal Trust Will not use that land, Somebody else Will, Subject to the tax.
Mr. HAMILTON of Michigan. The grantee himself takes it at the same rate
as the Original Owner, does he?
Mr. GEORGIC. If the owner does not Want to use the land and yet, because
the tax is too heavy be can not afford to hold it idle, he will sell it for what-
ever he can get, Subject to the tax by the State. I am not proposing to Change
titles. I am not a Socialist. I do not propose to put the land into the bands
Of the Government. I do not propose Government management of land. I
prol)Ose the plain application of the Thomas Jefferson principle of the least
DOSSible govel'Illuent. I propose to tax. Out Speculators and monopolists and to
throw land Open to private initiative.
Mr. RAKER. Suppose the taxes were so high the Iman could not pay them ; is
it your idea, then, that this land should eventually go back to the State, and
then as the people wanted it the State Would sell it back to some One Who de-
Sired to put it into actual use?
Mr. GEORGE. No, sir. If a landowner did not pay the tax, he would get
Sold out for taxes. Who ever bought would buy subject to taxation.
MT. It AKER. You do not quite get my question. Suppose the tax is so high
that the Iman who owns the land can not pay it. Somebody else must take the
land, must he not?
Mr. GEORGE. The owner simply lets go if he does not pay his tax,
Mr. RAKER. Who will get the title to the land when it is sold for taxes?
The State will get it, will it not?
Mr. GEORGE. No ; the buyer. Somebody will buy it if it has any value at
all. The application of a single tax should not be a hundred per cent applica-
tion. It should fall short just enough to leave enough value in the land untaxed
to make a basis for Sales. This basis for sales will become the market basis
for valuation and taxation. Now, if a man, we will say, who is a speculator,
a monopolist, or who is “land Door” can not or will not pay the tax imposed,
he Will have his land sold for taxes and he will lose it.
The land will go into the hands of a new man. That man will have to pay
the tax. If the value of the land should fall, then the tax would correspond-
ingly diminish. If the value should disappear, then there would be nothing to
tax, and the OWIler would hold his land Subject to no tax Whatever.
The hope Of Speculation gone, it is probable that there would be an abundance
of free land Open to whoever might wish to use it. Instead of having to go
away out to the remote fastnesses of our mountains to find free land, we could
then find free land accessible to our city populations, and some part of the
people going out upon it, city Congestion would be relieved.
Mr. RAKER. Now, for instance, in the State of California, all the public
Sales under taxation are to the State. There are no private sales in the first
instance. -
Mr. GEORGE. That is the Torrens system?
Mr. It AIXER. Yes. Now, the point I Wanted an answer to Was this . When
these sales are made to the State in the first instance, is it your intent and
purpose, under this single-tax system, that the State then, in turn, after it gets
the title, would Sell it Out to the public at the best price it could get for the man
Who Wants to take it and actually use it?
458—10150
y -
13
Mr. GEORGE. The gentleman is asking me how the single tax would apply
under the Torrens System. This Torrens system is an introduction from
Australia or New Zealand, I have forgotten which. By it the government—
in this instance California—at a transfer guarantees the title. That is to say,
in the transfer of land, the title must go through the hands of the government,
which thereby guarantees the title. The application of the single tax would
not change this. The present Small tax on land values does not affect it. Why
Should a large tax? All I am proposing with respect to land is to increase the
amount of the tax—now existing—now imposed on the ground, or what is at
times called the “site ” value of land.
Mr. CAMPBELL. The gentleman from New York would break up the coal
monopoly by taxing the land it owns in its mining enterprise. Suppose, in-
Stead of owning the land, it took a lease upon the land of other people, or of
Several other people, What effect would taxing the land have upon the monopoly
in that instance?
Mr. GEORGE. It would fall upon the owner; and in the leasing of land,
the man who took the land would take it subject to the taxation condition.
Mr. CAMPBELL. But there are several owners in this instance, and the
mining COrpOration Simply OWInS the personal property, which is not taxed
at all. -
Mr. GEORGE. The mining corporation, like any individual, should not be
taxed. On its perSonal property; as to the land, it should pay on its market,
its real Selling Value. Idle land it would sell off; get rid of. It could not
afford to pay taxes on valuable idle land.
Mr. HARDY. I do not want to interrupt the gentleman, but I am inter-
ested Very much in the gentleman’s observations, and the purpose of the gen-
tleman is, I think, exactly the purpose I would have in legislation. But what
I Want to ask is this question : We understand there is a vast carrying occu-
pation in this COuntry. All Our c0ast-line Vessels are engaged in transporta-
tion. Our railroads, likewise, are engaged in transportation. Now, I would
like to know what Solution there is in the gentleman's theory as to a monopoly
of transportation, particularly on the ocean? What shipping line has to-day
Such a monopoly?
GOVERNMENT OWNERSEIIR OF RAILROADS.
Mr. GEORGE. In the first place, the railroads have the most Valuable kind
of land. The terminals have a very great value. Besides, most railroads,
especially the Western railroads, have very valuable lands: Ore beds, oil de-
positS, timber tracts, Water rights, agricultural lands, lands in and about cities.
The taxation of land Values would fall upon that. But as to railroads, I would
go further, and this is beyond this taxation question. I would treat them as
public highways. I think there is no getting away from that. The railroads
must be taken into public hands as public highways, along with telegraphs
and telephones and every function of a public highway. We must have them
in Our Civilization. Yet it is impossible to have permanent competition in re-
Spect to them. Some individuals, getting the privilege to the exclusion of
Others to engage in the transportation business, will thereby get a Serious ad-
vantage over others in the community. It therefore becomes a function of the
State to perform.
Mr. HARDY. Mr. Chairman, I do not think the gentleman answered my
question as to monopoly and Water transportation. For instance, across the
Water the shipping company does not own the wharf, but the Government has
made Vast improvements in order to have a port. Now, there is a company Or-
ganized that monopolizes the transportation from New York to Liverpool. Its
ºpºrts is all on the water. How Would the gentleman's land tax affect
that ?
Mr. GEORGE. It would not affect it directly, assuming that the company
itself owned no land; for instance, no wharf or warehouse privilege. But
there Would be a very material indirect effect. Removing taxation from steam-
Ships and steamship building would tend to beget competition. Opening idle
lands of every kind to production would increase demand for such shipping
competition, and then beyond this, changing railroads from private administra-
tion to public administration would be the greatest stimulus to compétition;
for now the railroads feed traffic to particular ocean carriers which they
COIntrol. -
458—101.50
14
By taxing land values you would throw open the bounties of nature to labor
and increase the productive power of the country to such an extent as has
never been Witnessed in the United States. This would make a demand for
Vastly greater capacity for Ocean carriage and feed competition. i
Mr. GRAPLAM. Mr. Chairman, in my State, in my Section Of it, hundreds
Of thousands of acres of Coal rights have been bought up by combinations of
capital, and much Of the Coal Can not possibly be taken out, perhaps, for gen-
erations yet to come. On the other hand, some of that coal is being taken out
from time to time. - * *
Now, the two estates in land are separable and are separated, the farme
Owning the surface and all but the coal, which he has conveyed to the grantee.
Is the grantee’s estate there land, as you understand it, or not? " . .
Mr. GEORGE. I should say that the Whole earth is land, whether it be the
Surface or underneath, Or altogether. -
Mr. GRAELAM. Would you tax the coal right to the person or combination
Of persons Who Owned it? -
Mr. GEORGE. I. Should. º
Mr. GRAELAM. And so heavily that they could not afford to retain possession
Uf it? -
Mr. GEORGE. On its nnarket value. - * { |
Mr. GRAELAM. Well, they could not possibly use it for many years to come.
Mr. GEORGE. Very well. -
Mr. GRAELAM. . How would you make a distinction in that particular
acreage from which they were then removing the Coal from the other acreage
from which they could lot remove the coal for a long time?
Mr. GEORGE. You are asking me whether I should tax land that is at a
disadvantage in production. I should, but not at the value of land having more
advantage. That is, I should be governed by the One thing by which men are
governed Ilow, namely, the market price. If coal is actually underlying certain
lands, but for One reason Or another that Coal can not be got out and mined,
that land would have a distinctly low price in the market; whereas other land
no l'icher in mineral, but more get-at-able, would have a high market price.
I should assess the one kind Of land low, the other high. I should
place each piece Of land on the tax list at its market value, and then tax
that Value. *-
Mr. GRAELAM. Would you tax the coal which would not be mined for many
years to Come So heavily that those who have possessed themselves of hundreds
Of thousands Of acres Of it. COUlld not hold it? .
Mr. GEORGE. I should if the assessment were based on the market price. I
should discover what such lands would sell for. That is easily obtainable. To
find just what that is is the business of people who buy and sell land, whether
it be coal land, iron land, copper land, salt or other mineral land, farming
land, urban or suburban land. Finding the market price, I should tax only
that. - .
Mr. RARER. For instance, a man OWThed a good deal Of coal land. You
would tax it to the extent that he had to use it to make a profit out of it, and
if he did not do that the land WOUlld be SOld.
Mr. GEORGE. I Would not pay any attention to whether he used it OT not.
I would tax it on its value. It is the owner’s business to pay the tax and keep
the land out of use or to use it. My belief is that a man who pays a heavy
tax upon idle land would very rapidly discover that too much of a burden. He
Would use the land or get rid Of it. `
Mr. RAIKER. How would you make the application to timberland? -
Mr. GEORGE. I would put timberland on the tax roll for the price that
it Would sell for. If it has good trees On it it would Sell for Such and Such a
price; if poor trees, a less price. Do not men every day buy and sell timber-
lands? Take that price and tax the land. On that.
Mr. RAKER. The owner can use but little of it as he goes along.
Mr. GEORGE. It does not matter whether he can use little or much. If
he wants to monopolize it, he must pay the price. The price is the market
price. Tax that.
THE CANONS OF TAXATION.
Now, Mr. Chairman, I have been very much interrupted, and I want to make
just a few connected observations before I close. I want to explain that I
458—10150 -
15
believe that this single tax would meet better than any other form of taxation
the four canons of taxation. It is the most equal tax. It falls upon men
according to the natural bounties they have in their possession. The man who
has little pays little. The man who has much pays much, so that it is the
most equal kind of a tax. -
Then it is certain. It is not intermittent and Wavering. It falls regularly,
So that all dependent matters can be arranged accordingly.
In the next place, it is direct. It can not be shifted. It stays where it falls.
{There can be no addition of this tax to the value of the land. The landowners
are getting as much as they can get now. They are not waiting for taxation
to put up the price of their land. On the contrary, any proposal to put a tax
On Values immediately causes a discouragement. On the part of Some Owners
who have idle lands, and the tendency is for the price of land to go down.
This tax can be seen. It is not the kind of a tax that falls and no man
knoweth how much or where. There lies the land and there lies the value and
there falls the tax. *
' And then it is the most economical tax in its incidence. It lays no burden
beyond the revenue received from it. It is cheap in the collection. This
tax is not like a tariff tax. That falls upon things coming into the country.
To the extent of the tax and the volume of the things so imported is the revenue
that goes into the Public Treasury. But the tax on imports enables an in-
crease in the price of similar commodities made in this country. There is
not a cent of revenue from this home production. In the case of the tax on
land values, the more the tax the less the Speculation, and, therefore, the
lower the price Of land. So that in application, it is the most economical Of
all taxes.
TEIE GREAT INDUSTRIAL QUESTIONS.
But, Mr. Chairman, I do not stop with the canons of taxation ; for that,
after all is said, is a fiscal question. I want to direct attention further. It
relates to the great industrial questions of our country. This land tax does
not mean merely a better Way Of raising revenue, a more economical Way, a
more direct Way, a more just Way. It means far more than that. It means
the Opening to the use Of labor and Capital the Vast quantities of land now
shut off by speculation.
There is no real scarcity of land anywhere. There is no scarcity even in
the city of New York with its great population. With all its great tenements,
With all its SWarming humanity—and Within Certain blocks there are four and
five thousand beingS-I Say that With all that COngestion, the most concen-
trated population on the globe, it has been computed that there is land enough
inside the corporate limits of the city to give to every head of family from
one-eighth to one-quarter of an acre of good ground. I am not proposing to
divide the land. I am explaining that there is no such thing as a scarcity of
land there. There is land enough, but most Of it is held Out of use. Great
areas are vacant on the outskirts, and you can go along Broadway and Fifth
Avenue, the greatest and proudest thoroughfares on the whole hemisphere,
and find vacant lots, and One and two Story Shacks and Shanties Where there
Ought to be imperial buildingS.
Why is this? Because the penalty of holding land out of use is so slight that
men can pay the Small tax and yet, owing to social growth and social improve-
ment, and the consequent increase in Value, realize handsOme profits by the
speculation. Some men acquire fortunes in a short time by simply getting hold
of a piece of land, sitting down, and letting Society do the rest.
This is so in every State; it is SO in every Village, town, and hamlet Of Our
country. It is so throughout the agricultural regions; it is so throughout the
mineral and timber regions. Apply this tax and you tax Out the Speculators,
you tax in the users, you produce a new order in the United States.
We, of all the peoples of the World, Ought to be the most advanced. We have
drawn from the nations Of the earth their best in brawn, their best in heart
and hope; not the old, not the diseased, but the young, plastic with youth,
ready to mold themselves into our conditions. They have poured in, as to the
land of promise, their many bloods and produced the richest mingling that ever
gave the life fluid to a new country. Soon we shall number a hundred millions,
Scattered over a vast territory more Varied in Soils and climate than has ever
458—101.50
16
before been the heritage of a nation, welded into a homogeneous whole, with
One language, One body of institutions, One Code of laws, One democratic form of
government. We ought to be the greatest people, because we have the greatest
possible opportunities. But what are we doing to rise to these opportunities?
We have instituted a condition by which a few own the country. A few here,
a few there, practically control villages, towns, cities, counties, and almost
whole States. We have a landlordism greater than anything conceived in Great
Britain or Germany or in the Orient. We have the greatest landlords that have
ever been seen. Should we meet this condition, should we apply taxation to
land values SO as to break down land monopoly and throw open the soil of Our
country to Our fast-growing population, a prosperity Will come such as Will
dumfound mankind and give to America the glory of carrying civilization to
a point higher than ever reached in the destinies of the race. [Applause.] -
458—101.50 .
O
AW.
- \-l Sº.. 3.xii, # -
P | $2. 2. * ~ y” . . º *.
AUG to 1912
, (4) .
*** * *****:...º.º.º. . . . . tº . • . " t
- ** * £-sº **:: * ~...~... * * ... ' -
“I am speaking against the foreign control of our markets; I am
speaking against the foreign influence or competition in the field of pro-
duction and sale.” *
“The farmer will have no market for his products in a bankrupt
P R o T E cT I o N.
w H | C H
P R O T E c Ts
- speech of sº • * -
HoN. WELDON B HEYBURN
of IDAHO ~
IN THE UNITED states senate
May 25, May 28, May 29, May 30, 1912.
(Part of Congressional Record)
PROTECTION WHICH PROTECTS.
[From the Congressional Record of
May 25, 1912.]
Mr. HEYBURN, of Idaho. It would
be a very great impropriety to vote upon
a Tariff measure at this time, especially
upon this metal schedule. The details
of the measure have been dealt with
at some length, but I think I am Safe
—in saying that there are other Senators
Sº who will give them further considera-
tion. I have not yet completed the lay-
- ing out, so to speak, of the proposition
< under consideration. The table is not
C; fully spread. Some of the items are be-
** fore us and some are not.
J The result of this legislation is going
Y to affect the prosperity of people out-
... side of Congress more than it will the
§ Members of the two Houses. When I
ſº say affect them, I mean in their pros-
t; perity and their right to enjoy pros-
& perity.
There has been much discussion here
*about great business organizations now
sº existence and as to how these sched-
ules would affect business enterprises
now existing. I have not given one-
tenth of the attention to that side of it
that I have given to the question of new
enterprise and the establishment and
rmaintenance of conditions that will en-
able new enterprise to grow and flour-
ish. If we were to legislate merely
that those in business might continue
º in 5usiness, one rule would be applicable,
but
i
s
We Are Here to Legislate for the
Opportunity of Others Than Those
Now, Engaged in Business to Estab-
- lish New Enterprises.
(ZY
wº I want to see considered the condi-
> tions that will affect the new steel mills,
every turn.
the new mines, the new enterprises. If
We were to consider only—take it in the
case of mines—the mines that now exist,
we would be giving our attention to a
fading proposition, and we would be
protecting something that would de-
stroy itself, regardless of the Protection
it received, by the exhaustion of the
subject. The legislation we should give
attention to is that which will affect
the mines of to-morrow and to-morrow
and to-morrow. Those who have been
so situated as to be able to observe the
conditions of naining know that all
mines reach an end. No mines are per-
petual. The farm produces and repro-
duces, but with the mine it is a ques-
tion of exhausting its own capital by
every torn of ore that is taken from it.
I am looking to the use and employ-
ment of capital that is not now engaged
in these enterprises. That is opportu-
We meet opportunity at
Suppose a duty is proved
to-day to be sufficient, based upon exist-
suppose all the mills
nity again.
ing conditions;
now in operation might
operate under existing conditions;
we to give no consideration to the mills
of to-morrow, to the capital of to-mor-
row, to the men of to-morrow 2 Are we
going to exhaust ourselves in this gen-
eration? The very purpose stated in the
first Tariff act that was enacted was that
it might encourage the building up of
industries.
continue to
8,I’6
First Tariff Act: “It Is Necessary for
the Encouragement and Protection
of Manufactures, that Duties Be
Laid on Goods Imported.”
Mr. President, I see it stated that Øn
yesterday, I believe, in speaking of the
Republican Tariff platform, I am cred-
4
ited with speaking of the platform of
1864.
was an accidental remark on my part.
There was no Tariff platform in 1864.
Were busily engaged in other matters.
But I intended to refer to the platform
of 1860. I am going to call the atten-
tion of Senators to the platform of 1860,
because that was practically the begin-
ning of the Republican Party and its
Tariff legislation. It reads:
That is either a misprint or it
“That while providing revenue for the
support of the General Government by
duties upon in ports, sound policy re-
quires such an adjustment of these
imposts as to encourage the develop-
ment of the industrial interests of
the whole country; and We commend
that policy of national exchanges Which
secures to the working men liberal
WageS, to agriculture remunerative
prices, to mechanics and manufacturers
an adequate reward for their skill, labor,
and enterprise, and to the Nation conn-
mercial prosperity and independence.”
That is the kind of ringing declara-
tion which seems to have been forgotten
at times since then. It is pretty nearly
as strongly expressed in the first Tariff
act, before the making of platforms.
The act of July 4, 1789, had a preamble,
- which reads:
“Section 1. Whereas it is necessary
for the support of Government, for the
discharge of the debts of the United
States, and the encouragement and Pro-
tection of manufactures that duties be
laid on goods, wares, and merchandises
imported.”
That is the first declaration of Con-
gress on any subject. The departments
of the Government had not been Organ-
ized at that time. Congress did not
wait to organize the Government before
enacting Tariff legislation. There was
no State Department or Secretary of
State at . that time. There was no War
Department or Secretary of War at that
time. There was no Treasury Depart-
ment of the United States at that time.
They were looking first to making pro-
visions for something to put in the
Treasury. They were looking first to
We
were not dissimilar,
making provisions for supporting the
departments of the Government and
giving them duties to perform. Be-
tween the enactment of the first Tariff
bill, the preamble of which I have read,
and the purposes therein set forth, 23
days elapsed before we created the De-
partment of State; nearly 3 months
elapsed before we created the War De-
partment; and more than 4 months
elapsed before we created the Trcasury
Department.
In Order that the Wheels of Industry
Might Begin to Revolve.
In order that people might start off,
that the wheels. of industry might be-
gin to revolve, it was necessary to over-"
come the conditions that had grown up
and then existed out of the English
Tariff laws affeeting our country, where
not under the law make a
horseshoe nail in this country, where
we could not under the law engage in
any enterprise in competition with an
We could
equivalent enterprise in England.
Will Senators wonder that we stand
here persistent, even to the point of
stubbornness, in the interest of Protect-
ing our people against the foreign in-
We do it because there is
We had spent
eight long years Protecting them against
the
England, and We turned Our attention
innmediately, when that was accom-
plished, to Protecting them against com-
mercial and industrial war.
I call attention to that at this time
in connection with the declaration of
the Republican Party when it first as-
dustrial foe 2
nothing SO important.
general governmental policy of
sumed the direction of the Government.
The conditions following the Revolu-
tion and those confronting us in 1860
in that they in-
volved on both occasions the preserva-
y
-
the consideration of
importations,
tion of the possibilities to the people to
make a Government and to sustain it.
As I said, in 1864 and 1868, the Tariff
question was not an issue, because there
were some undecided questions at that
time which must necessarily precede
industrial condi-
tions.
In 1872, which was the next succeed-
ing national convention, the Republicans
made this declaration: s &
“Revenue, except so much as may be
derived from a tax. On tobacco and
liquors, should be raised by duties upon
the details of which
should be so adjusted as to aid in Secul'-
ing remunerative wages to labor, and
promote the industries, prosperity, and
growth of the whole country.”
The Very Essence of the Protective
Tariff Policy of the Republican
Party.
Now, that platform breathes the very
essence of the Protective Tariff Policy
of the , Republican Party. We were then
confronted with the rehabilitation. Of the
industries of the country that had been
in some directions to Some extent inter-
fered with by the conditions that eX-
isted prior thereto.
In 1876, at the next recurring national
convention, the Republican Party de-
clared as follows:
Qurrent
“The revenue necessary for
expenditures and the obligations of , the
public debt must be largely defived
from duties upon importations, which,
so far as possible, should be adjusted
to promote the interests of Anherican la-
bor and advance the prosperity of the
whole country.”
. In those days we attached special im–
portance to the labor, and we used that
Capital is
Only . dross in the absence of labor. It
word then in a broad Sense.
can afford no livelihood for the people,
- ter was last before the Senate.
not even for the possessor of it, except
in connection with labor.
a handful of gold out on the highway,
and you will find that it represents moth-
ing more than a handful of pebbles un-
You may take
til you come in contact with labor and
its products. There for the first time
your gold has the capacity of value.
Promises Made and Declarations of
Principle That Are Binding To-day.
[From the Congressional Record of
May 30, 1912.]
Mr. HEYEURN of Idaho. Mr. Presi-
dent, the Senate is evidently in an in-
dustrious mood and desires to further
consider the measure before the Senate.
The zeal of Senators is rather unusual;
but very gratifying. No greater mis-
take could be indulged in than to think
that this measure has received that .
consideration which it will receive or
must receive before being sent out. to
the country as an enactment, so far as
the Senate is concerned. - *
I was engaged at a Very interesting:
point to the Republicans when this mat-
I know .
that the Democrats take very little in: .
terest in platform. I.
know that Republicans are presumably ,
very greatly interested in the principles,
of their party. I am going to test it,
because my remarks will be addressed to
the Republicans for a few moments.
Then if, the Democrats are still in evi-
dence I will address some remarks to
them.
Yesterday I was calling the attention
of the Republican Members to the prom-
ises they had made and declarations of
principles that are as binding upon them
to-day as they were when they were
announced. The principles of a Govern-
ment do not change. The declarations of
principles are to be respected. - -
I am going to call the attention of
Senators to what the Republican Party.
told the people it stood for in 1884, and
that is not very far back.
a. Republican
Most Sena-
tors were then actively engaged or in-
terested, at least, in the affairs of the
Government. This is the declaration,
6
and it is as much a part of the Republi-
can policy and principles to-day as it
was when it was published by the con-
vention in 1884: -
“It is the first duty of a good govern-
ment to protect the rights and promote
the interests of its own people. e
“The largest diversity of industry is
most productive of general prosperity
and of the comfort and independence of
the people. - -
“We therefore demand that the impo-
sition of duties on foreign imports shall
be made not “for revenue only,’ but that
in raising the requisite revenues for the
*Government such duties, shall be so
levied as to afford security—”
Security to Our Diversified Industries
and Protection to the Rights and
Wages of the Laborer.
-- - Bear that word in mind; I will revert
to it directly—
“security to our diversified industries
and Protection to the rights and Wages
of the laborer, to the end that active
and intelligent labor, as well as Capital,
may have its just reward and the la:
boring man his full share in the national
... prosperity, - º c
“Against the so-called economic Sys-
tem. of the Democratic Party, , which
would degrade our labor to the foreign
standard, We enter our. earnest protest."
- ºr :: -
• “The Republican Party pledges itself
to correct the inequalities of the Tariff
ºn nă to reduce the surplus.” ©
Now, the first part of that platforma,
the Protective part of it, was good Re-
publican doctrine, and it would have Won
the election for the Republican Party in
that year. But the Democrats Were
making the campaign upon the cry Of
surplus. They made nearly as much
noise about it as they now make on the
Tariff question, and some—enough—Of
the members of the committee that
framed this platform were deceived by
that noise, because they were charged
with the iniquitous crime of so conduct-
ing the affairs of the Government as to
produce a surplus that they immediately
took to the woods and promised they
would not do it again. The result was
the American people said, “Well, if you
are not for Protection and the fruits
of Protection, we will give you a chance
to think and they elected a
IPresident of the United
it over,”
Democrat
States.
So what they did—and this is a warn-
ing against giving heed to the cry of
those who have it in mind to scare you
away from the principles which they
fear—the committee went on and said:
“The Republican Party pledges itself
to correct the inequalities of the Tariff
and to reduce the surplus.”
The Republican Party, running before
the charge made against them by Demo-
crats; ambitious for power and office, re-
treated and lost out to the Democrats.
You ought to be very careful that that
lesson is not repeated,
. No One Ever Charges the Democratic
Party with So Administering the
Affairs of Government as to Create
a Surplus.
I read that platform and emphasized
it particularly because we repeated that
mistake in 1892. We apologized for be-
We asserted the doc-
Of Republicanism, asserted the
benefits that had been derived from it,
and then, because the Democrats were
making so much noise that some of the
people thought there must be something
in their cry, we retreated from it and
apologized and said we would not do it
again.
ing Republicans.
trine
So the Democrats carne in, and
they got rid of That is
No one ever charges,
the surplus.
their strong point.
the Democratic Party with so adminis-
tering the aſ "airs of the Government as
to create a surplus. That is one thing
they are not guilty Of.
shifting:
In that platform, however,
as it was, we declared specifica}}y for.
the dº ty
on wool The Republican
Party said: .
“We recognize the importance of
sheep husbandry in the United States,
the serious depression which it is now
experiencing, and the danger threatening
its future prosperity; and we therefore
respect the demands of the representa-
tives of this important agricultural in-
terest for a readjustment Of duties upon
foreign wool.”
They had that in mind, but they pronº-
ised a change. Well, the people had put
them in power because of what they
were, what they stood for, and the people
expected them to remain hitched, but
because somebody gave a long yapping
at their heels they broke loose and ran
away. We have seen that kind of thing
‘happen not only in conventions but else-
where.
and Quit
Apologizing for Being Republicans.
We Learned. Some Sense
Now I come to a platform that com—
mended the Republican Party to the
the in 1888. We
learned Sonne Sense from the chastise-
ment that we got in 1884, and we quit
apologizing for being Republicans.
I have heard some discussion here in
Connection with these Tariff schedules
where I think, without realizing just
exactly the effect of the words, there
- has been some apology for Republican
- legislation and a tacit promise to undo
it. I am not in sympathy with that
kind of talk or action. * .
e Now I beg your attention to the plat-
form that speaks Republicanism, that of
1888, when we nominated Benjamin Har-
rison for President of the United States
On a real Republican platform. This
is it:
people, next One
“We are uncompromisingly in favor
terests of America. We accept the issue
and confidently appeal to the people for
their judgment. The Protective system
must be maintained. Its abandonment
has always been followed by general dis-
aster to all interests except those of the .
usurer and the sheriff.”
They had gotten a. little Republican
vigor into them by that time, and they
realized the effect Of their declarations
of apology. The usurer and the sherift
came pretty soon afterwards, when we
did have a Republican administration.
“We condemn the proposition of the
Democratic Party to place wool on the
free list—” . - -
And yet we heaf men in this body,
in this Congress and in the last Con-
greSS, On the Republican side of this.
Chamber, who are willing to compromise
They
Stand here and engage in cheeseparing
for free wool or its equivalent.
and quibbling and refining of figures to
try to prove that we could possibly live
if we did not have what we are en-
titled to. Bear that declaration in
mind when we come to consider the
Woolen schedule— -
“and we insist that the duties thereon
shall be adjusted and maintained so as to
furnish full and adequate Protection to
that industry throughout the United
States. -
of the Anherican system of Protection:
We protest against its destruction as
proposed by the President—”
Cleveland—
“and his party. They serve the inter-
ests of Europe; we will support the in-
of prosperity.
“The Republican Party would effect
all needed Reduction of the national
revenue - by repealing the taxes upon to-
bacco, which are an annoyance and
burden to agriculture, and the tax upon
spirits used in the arts and for mechani- '
cal purposes.” -
We have already legislated that last
declaration into law. -
|Upon that platform we elected our
President, and we entered upon an era.
During that administra-
tion we enacted the McKinley Tariff
bill. In 1888 both parties boasted of
their prosperity. .
8
This Democratic Destruction of Pros-
perity—Used to Know How to
Count Republicans.
. [From the Congressional Record of
May 28, 1912.]
Mr. HEYEURN, Mr. President, for
some reasons I regret that the bill is
not yet ready to be reported to the Sen-
ate. I was calling attention yesterday
when the Senate closed its session
to the position in which the Re-
publican Party stands in regard to
this question. It ought to interest
them, and it would interest them
if they were as zealous as the Demo-
crats. I have been somewhat interested
during the discussion of this question
to observe that, while the Dennocrats
have raised the cry—and I am afraid
have impressed some Republicans with
the seriousness of that cry—that there
is a great demand for this legislation;
that the interests of the people individ-
ually and collectively are at Stake—I
have been interested to see the measure
of zeal shown by the attendance of
members upon the other side and their
participation in this debate.
If I thought this measure, this Demo-
cratic destruction of prosperity, was SO
vital as they seem to think it is, I
would stay in my seat, if I sat on the
other side, as long as my physical Con-
dition would permit, and I would Speak
on behalf of my belief as long as 'my
voice could be heard. They have been
content in the arrogance of power—and
I do not use that word in an invidious
sense—and in the possible expectation
of an alliance with some members of
the Senate on this side to allow it to
go without a word of recommendation or
I am rather astonished. Are
you so sure that you are going to get
the assistance on this side that you
anticipate? Senators on the other side.
must be well aware of the fact that
without it they can not pass the bill,
ºnd yet they are going along gloriously,
a \suming that they will pass this bill.
I say—and I base my statement upon
my faith in Republicans—that they will
not pass it. If I lose in that proposi-
tion, it will be because I have made a
miscount of the Republicans. I used to
ir - to count them.
A Temptation to Those Who Deal in
Mexican Ores to Build Their Smel-
ters on That Side of the Line.
defense.
reduction of the duty upon lead?
and proposed
Mr. President, it is obvious that the
Other side rely upon gaining some votes
upon this side; but we have made some
history to-day. We had a vote here a
few monnents ago in Which there seemed
to be a degree of harmony most gratify–
ing and which has not always existed.
I will pin my faith in men on Very Small
things sonnetimes, and I believe that
men Who go Wrong on theil' judgment
may always be brought back to a proper
conception of the right. I have faith, a.
VaSt. annount of it, and I am not going
to yield it up until I see somebody who
Gomes here wearing a Republican badge
voting with the Democrats. So I am
in rather a happy and contented frame
Of nmind On that subject.
Do you suppose, Mr.
a Senator representing
President, that
the great in-
dustry of lead mining could be counted
upon by the Other side to vote for a,
Yes-
terday the Senator from Iowa. intro-
duced an annendment that proposed a.
reduction of $5 a ton upon lead bullion.
He provided for a duty upon lead Ore
a reduction of $5 a ton
upon lead bullion. I have been in the
lead Country a long time, and super-
vised a good many settlements for ore.
The Settlement for lead Ore is based
upon the bullion value and contents, so .
that the proposition really struck at the
whole lead industry. The reduction
suggested by the Senator would merely
be a tennpfation to those who deal in
Mexican mines and Mexican ores to
build smelters On that side of the line,
reduce their ores into bullion, and send
it over to compete in our field of pro-
duction With our bullion—
Mr. CTU MIMINS. The Senator has
stated the case accurately, but possibly
all Senators did not follow the lead
Schedule With Sufficient Care to know
just What the Statement Of the Senator
from Idaho means. At the present time
the duty on lead in ore is $30 per ton,
and the duty on lead in bullion is $42.50
per ton. My amendment did not reduce
the duty on lead in ore, but it reduced
the duty On lead in bullion from $42.50
per ton to $37.50 per ton; and if the



9.
fuse the lead ore.
Sumption that you mine lead.
to introduce into the charge certain
Other metals or minerals in order to
So I have been somewhat impatient
With the discussion of the question of
the duty on lead based upon the as-
We do
not mine lead. We mine vast quanti-
ties of rock in which there is lead. If
you sell the ore without treating it, .
you get the bullion value. If you trèat
it, you reduce it to bullion.
There is the difficulty with the propo-
sition of the Senator from Iowa. You
pay exactly the same wages to the main
Who breaks the barren rock that stays
in the mine or goes over the dump.
You not only spend your money for the
5 tons that goes to the concentrator,
but you spend in addition to that your
money for rock that never goes any-
where, but stays on the dump of the
mlne. . . .
There Are Great States in the Union
To-day Which Would Not Have
Existed Except for the Mines.
Senator from Idaho can convince the
Senate that in this country it costs to
reduce lead ore to lead bullion in ex-
cess of $7.50 a ton over the cost in
other countries he will have convinced
me of error. I simply wanted the Sen-
ate to know what the total duty was
on lead bullion and lead ore,
Displacement of Our Product by
Mexican Bullion Would Birminish
Our Markct for the Bullion .That
... We Produce.
Mr. HEYBURN. Mr. President, the
difficulty with the Senator from Iowa.
is that he starts to reason from a false
premise. In the first place, it is the
bullion that regulates the price of the
Ore, and the displacement Of Our product
in bullion by Mexican bullion would di-
minish our market for the bullion that
We produce. Nobody uses Ore; it has to
be reduced to bullion before it is ready
for use.
Mr. President, this is not only a large
item, but, inasmuch as we produce the
Head that we use in this country in
equivalent quantities, it is more import-
ant than the Ordinary schedules, and
there is a wide margin between the
production and the use.
To produce a ton of Ore you mine 6
tons; I will say 5 tons to be conserval—
tive. You mine 5 tons of raw material
out of the ground. You break it down,
and hoist it to the surface, and you
carry it to the mill in order to get 1
ton of lead ore. That ton of lead ore,
when you have reduced - it by concen-
tration or other processes, will contain
about 60 to 62 per cent. lead, and the
balance is waste, and when you send
that to the smelter you pay the wages
incident to the transportation and you
pay the freight on the waste, and When
you get to the smelter you pay the
smelting charges on the Waste. So you
have been mining and shipping and
smelting waste all along the line in Or-
der to get a ton of ore, and When you
have that ton of ore. it represents the
wages and the expense incident to the
*mining of 5 tons of rock.
It costs just as much to mine barren
rock as it does rich ore. It costs just
as much to send it over the railroad or
the transportation line. It costs just
as much to put it through the smelter.
In fact, it costs more, because you have
mines.
No one has taken that into considera-
tion at all. It was assumed, I say, that
you mine lead. Nobody mines lead.
The reason the industry is . Of Such Su-
preme importance is because it has been
the foundation of States. There are
great States in the Union to-day which
would not have existed except for the
The pioneer goes there, not be-
cause of the climate or the scenery or
the soil, but because of the existence or
supposed existence of these ores, and
being there he first directs his atten-
tion to the thing he went for, and not
being fortunate in securing a foothold
in mining and being in the country
looking around for other possibilities,
staying there for other purposes, he,
with the other men coming in, have
developed the foundation upon which
the State rests. w
The State of Colorado was a mere
prospecting ground. It was not known
for anything within its boundaries ex-,
cept the metals and Ores. The same is
true of the States of New Mexico and
of Arizona. -
The same is true of the States of
Montana, and Idaho and California. No-
body ever went to those States origi-
•v---
10
nally with any idea of doing anything
| except to mine. Idaho had passed through
its gold-mining experience for years
and had produced more real wealth than
any State east of the Mississippi River,
and there was an interval during which
...time men were estimating the possibili-
ties and reaching out for new discov-
eries. It resulted in developing agri-
... culture and horticulture and industries
of all kinds that were a safe founda-
tion for a . State.
That is something in the making of a
State. The miner either realizes his
desire in mining or goes down into the
valley or into the fertile portions of
the State and stays permanently. He
never would have gone there to Settle
except that he went there to mine. The
people who engage in mining in all its
branches, seeing around them possibili-
ties for home building, engage in it.
So there is a Whole lot more involved
in this question than the mere matter
of how many dollars were taken out of
the ground. There are the growth and
the increase of the resources of the
State in timber, in agriculture, in horti-
Culture, and grazing that Stand very
high in the estimate of the wealth of
this country,
A City Produces Nothing Except the
Disposition of Men to Engage in .
Gainful Enterprise.
We are not to be overlooked by the
trader, by the money changer, by the
huckster, and the broker. They can
not stand and point the finger of su-
periority at us. We furnish them with
the material with which they do busi-
ness. A city is merely a place of ex-
change. It produces nothing except the
energy and the disposition of the men
to engage in gainful enterprise. That
is all a city does.
It is fashionable for those who live
in cities to assume a superiority over
those who live in the country. NO
greater mistake ever was made in the
World. You picture a man from the
country in lines of derision, when, as
a matter of fact, he is the furnisher of
everything upon which you base your -
prosperity. -
Mr. President, that applies to this
industry. It supports 1:00,000 families
destroy this industry?
in the United States. If it did not Sup-
port them, who would? Can SOme
Senator tell me who would support these
100,000 families if you withdraw or
Could they be
taken up by the commercial world of
the East?
the commercial world. Without them
They are the customers of .
the profits of the commercial activities
of the country would be diminished, if
1not destroyed.
It is my intention that when this
measure goes out—whether according to
the prophecy of the Senator from
Georgia, or not—it shall be accom-
panied with a biography and a history;
that it shall go out tagged, so to Speak,
that those who come to inspect it tWO
years and four years from now Will
know what it means. You have seen
things written in invisible ink, and
when you hold them up to the light
there will appear something you did
not suspect existed. When, two or four
years from now you hold up to the light
the tag which I propose to place upon
this bill, you will find written upon
that tag, “Destruction to American in-
dustry and prosperity,” That is what
this legislation means. -
I do not believe that Senators have
the right to legislate by general con-
Sent in regard to these measures. There
is a duty resting upon Members of this
and the other branch of the Congress
of the United States to give their real-
sons, because the people will want to
know their reasons. I want to caff at-
tention to just one item of history that
I have here before me, in which I par-
ticipated, and in which
Senators present who participated,
They Confessed Themselves Scared by
the Noise That Was Being Made by
the Democrats.
I refer to the mistake of 1892. In
1892 the Republican Party in conven-
tion made a cowardly platform. They
confessed themselves scared by the
noise that was being made by the
Democrats, and the country said, “If
you are not brave enough
principle and stand up to it we will
have none of you,” and they turned
the Republican Party out of power and
turned into power a party that pro-
to have a..
I See Othef e
11
fessed what they would do rather than
recited what they had done. Just think
of a platform of an national party going
before the people, situated as Our
people are, making this declaration:
. “We believe that all articles which
can not be produced in the United
States, except luxuries, should be ad-
mitted free of duty—’’
The Democrats had said that before
and We had repudiated it.
“And that on all imports coming into
competition with the products of Anner-
ican labok...there should be levied duties
equal to tºe difference between wages
abroad and at home.”
They deserved defeat, and they got
it. They not only defeated the political
organization but they defeated the
American people in their homes. They
took away from them their prosperity
by substituting the pretentious pre-
tensions of the other party. It was my
fate to be a member of the committee
that made this platform. Those words
were not written in it with my con-
Sent.
What does. it say? Let us look at it.
That there should be duties levied
equal to the difference between wages
at home and abroad. I want to make
a reference to that. That was equiva-
lent to saying that in this country
those who sustain it in War and in
peace should have no better standing
than the people of other countries Who
contend with it in both War and peace.
A more unreasonable declaration never
was made in a platform. The men Who
made it—a number of them were my
friends and still are my friends—for-
got that they lived in the United States'
of America. They did not know in that
Thour of unwisdom that an American
citizen is entitled to more, in or out
of the United States, than any for-
eigner is entitled to,
They Talk About Putting Us Upon
an Equal Footing with Germany,
France and England.
They talk about putting us upon an
equal footing with Germany, Frange,
and England without making any pro-
vision for the fact that we support this
Government and the foreigners Con-
tribute nothing to it; that we maintain
the institutions and pay the taxes and
they do not; that we pay taxes upon
the very goods which they send here
under the doctrine of free trade. If
a cargo comes in from England or
Germany and lands in New York, upon
landing it becomes the property of an
American citizen, and he has to pay
taxes on the very thing that destroys
his market. The people with whom
they are seeking to put us on an equal
footing pay no taxes upon the articles
of manufacture either there or here.
And then again this cheeseparing has
fretted me from the beginning of this
discussion—to see Senators stand here
and shave down to the very quick in
estimating how much torture the
American producer can stand; upon
how low a basis he can live; with how
little he can get along without starving.
That has been the spirit of too much
of the discussion on the Tariff ques-
tion.
I look at it from just the opposite
standpoint. The question with me is
how prosperous can we make the
Annerican citizen; how can we improve'
the conditions that surround him; how
easy oan we make it for him to com-
pete in the markets or abroad? That
is the point of reason from which the
Tariff should be considered by Ameri-
cans, and not how tolerable it might
be for him were conditions changed.
This is a place for controversy and
contest and decision; not a place to
come in and put a nickel in the slot to
record your action. This is a chamber
for consideration, and consideration
among men in council of responsibility
means an interchange of ideas. What
we say here goes to the country; it
goes to our masters. They elected us
to this position in order that ‘We may
use our judgmerat and wisdom in the
best manner for the benefit of their
best interests. If we come here and
divide up into coteries and then absent
ourselves when the hour of responsi-
bility comes, the people will know what
to do. They will not need any recall.
They will forget the men who did it at
the next election, and they ought to
forget them. One might imagine in
this Chamber sometimes that there was
nothing of interest before the Mem-
bers of this body except what they may
12
...be chattering about among themselves
in their little coteries of two or three.
That is doubtless interesting to them.
A Man Makes a Promise that He
* “ . Will Support Legislation Imposing
: ... Protective Duties.
Now, Mr. President, of course, we
will assume that when we come to vote
every Senator Will have Innastered e Very
question upon which he votes, and the
people will probably accept that hy-
pothetical condition until they learn
better. A man makes a pronnise, upon
the strength of which he comes to
Congress, that he will support legisla-
"tion imposing Protective duties upon
wool and lead and lead ores. The
people expect him to keep that prom-
ise. That is the solemn pledge of the
Republican Party.
In 1892 they did not get a chance to
put it in operation. They had just be-
fore - declared themselves so inefficient
or their intentions so uncertain that
the people said, “Just go home and
stay there until you know what you
‘ want to do, and then present yourselves
to us and we will tell you whether we
want you to do it or not.”
* send the Republican Party into retire-
ment at that election and they elected
a Democratic President and Congress.
I am not going to dwell upon their ac-
'tion. I never was fond of these ex-
‘‘hibitions of chambers of horrors. I
never visit them. I let that rest.
* There will be some chambers of hor-
rors for the individuals who have for-
götten the pledges that the
- Tariff question, but they will each of
them enjoy it in his own way,
... The Republican Party Has Stood for
Prosperity in the Past when It Was
Sane. .
How can a man be a Republican and
not be in favor of a Protective Tariff
...that protects? How can a rºman be a
: Republican and come here and engage
: in , cheeseparing down to the very quick
... to determine whether or not the people
of the country can barely live rather
“ than how they can be certainly pros-
perous? -
servers of four
They did
party
placed them under in regard to this
The Republican Party has stood for
prosperity in the past When it was sane.
I will pass from that platform of 1892,
which was the Waterloo of the Repub–
lican Party, and, in my judgment, for-
feited all claim that the party might
have ult: On the people, and I Will go to
1896, after the earthquake, and the vol-
canoes, and the nightmares, and the
distress, and the poverty of four years,
and I find new leaders, at the head of
the columns. I find constructive states-
"men in the place of the shivering time
years before. I find
Then Who knew what they wanted and
dared to proclaim it in the great con-
vention of 1896. They knew how to
take the rank and file of American in-
dustry and organize it so that its
march would be to the certain goal of
prosperity. They did it with as true
a hand as eyer guided a purpose to a
destiny.
You Strike Down Their Prosperity
and the Chimax Is Close at Hand.
Mr. President, we have heard noth-
ing in the consideration of this bill on
behalf of the real merchants and the
people who deal with them. The large
manufacturing establishments could
not reach the people except through
lesser establishments that constitute
the means Of distribution Of What the
largel' Concerns produce. They have
not been heard. They were not heard
before the committee that prepared
this bill for consideration. Yet it de-
pends upon those people as to whether
the products of the large mills will
ever reach the people at all. . They are
the medium of distribution. Their .
prosperity tells infinitely more for the
welfare of the people than does the
prosperity of the large manufacturing
plants. They are the people who are
looking most anxiously to Congress
awaiting its action. You strike down
their prosperity and the climax is close
at hand.
You may take away all the profits of
the large plants that have been dis-
cussed so much, and the owners prob-
ably would go down to the Waldorf-
Astoria or to the seashore or to Eu-
rope and live the rest of their lives
without any suffering, while these in-
dustrial enterprises that depend upon
13
them would suffer all the agony that
belongs to poverty, disappointment, and
distress. It would change the lives
and the destiny of millions of people
who never saw the United States Steel
or any of these large enterprises that
have been discussed as though they
were all there was to be considered.
You strike down the prosperity of the
country for a day and you change the
destiny of millions of people any day
and change their course of life from
that time to the end. You shut down
the mills in a village or any one of
these manufacturing centers for six
months and thousands and thousands
of people will have been compelled to
change their residence, to change their
plans of life, both in regard to the
adult members who toil and in regard
to the children who depend upon them.
The possibilities of the education of the
hundreds of thousands of children in
this country are vitally affected by
every shutdown or strike from what-
ever source it may originate.
You Have Changed the Destiny of
the American People; Millions of
Them. -
You bring about a condition such as
we had in 1893, 1894, and 1895, and you
have changed the destiny of the Ameri-
ean people; millions of them, who with
that four years of standing ground
Would have attained their cherished
ambition, never again can reinstate
themselves. . The period of education
passed for many during those four
years of financial distress. . The pe—
riod that was selected by their parents
in which they were to be educated
passed, and their opportunity was lost
because of the inability of the parent
to carry out the purpose. Instead of
being well-equipped citizens, they were
forced to this shuffling industry of op-
portunity. - * .
Who was responsible? The Demo-
cratic Party as a party and the people
they were able to deceive into support-
ing or believing in the doctrine of com-
parative Free Trade. How many millions
of people in this country were so af-
fected by that period of stagnation that
they never can recover from it? In-
dustry closed, the door of opportunity
to the apprentice is closed. The boy
who would have entered without diffi-
culty to learn, his trade or occupation
in the mills and industries of the coun-
try was deprived, because the mills and
industry had no opportunity to afford
him, and instead of being on the way
to prosperity, he was a victim of con-
ditions and circumstances over which
he could exercise no control. -
This question of the prosperity of the
people is a very serious thing; and
when we are dealing with those ques-
tions that will affect it one way or the
other we can not be too serious. We
can not grow inpatient—we dare not
—with the consideration of them. The
Congress of the United States that
passed the first Tariff bill spent three
In Onths in its consideration. We read
it on three pages, and we are apt to
think they did it over night. They gave
serious consideration to those , ques-
tions, realizing that they were laying
the foundation of the prosperity of the
people of that age. Well, we lay the
foundation of the prosperity of the
people every two years or four years
in this Country, or every time we take
up the question whether our people
shall be classed as the people of other.
countries, on an equal footing, as was
laid down in that foolish platform. I
have never yet forgiven the unwis-
dom of that hour, notwithstanding that
I participated in the making of the
platform; but I did not agree to the
provisions that lost us the election,
Days When Republicans Were Really
Republicans, and Not Dickering
and Trading. +
What was done in the last national
platform 2 I want to read a phrase,
however, in the intermediate platform.
These were the days when Republicans
Were really Republicans, and they were
not dickering and trading as to how they
could "Support this and that amendment
and receive in return the support for
SOrme Other. These are the closing
words in the Tariff platform of 1896,
when intelligence and patriotism ruled
the convention. After declaring in fa-
vor of the Protective Tariff policy of
the party, they say: • * : * * ~ * ' . .
14
“The country demands a right settle-
ment, and then it wants rest.”
In referring to the duties not agitated
every day, not revision by schedules, not
revision by fugitive amendments upon
other bills, -
Democracy, they said the country
wants to return to the conditions un-
der which it was prosperous, upon the
theory that like conditions produce like
results. When they said that they put
the clinch on it. Let me read the
WordS—
“The ruling and uncompromising prin-
ciple is the Protection and development
of American labor and industry. The
country demands a right Settlement,
and then it wants rest.”
That is the way to talk.
Mr. CUMMINS. I agree to that.
There is nothing in the world that we
need so much as a right settlement of
the Tariff question, followed by a long
rest. I want to say to the Senator
from Idaho that personally I very
greatly prefer the platform of 1896 on
the Tariff question over the platform
Of 1908. -
Mr, HEYEURN, So do I,
The Democracy Has Succeeded in
Making a Lot of People Believe
that the Word “Tax” Is a Word
of Opprobrium.
Mr. President, I said a few moments
ago, that I am looking now into the
Republican rank and file in this coun-
try for the man or men who can dupli-
cate, the wisdom of that convention. I
ann looking for the man who can get
away from personal advantage and skir-
mish for Office, write a platform like
that, and go before the people with the
result that those men went before the
people. That is what I am looking for.
This cheeseparing, lead-pencil Tariff
declaration of the last platform, which
meant, if it meant anything, that the
Government would guarantee a reason-
able profit without . determining the
tribunal in which the question of real-
sonable profit should be determined.
That is what I call “a lead-pencil plat-
form.” This is not.
“This true American policy taxes for-
eign products.”
after that nightmare of
It taxes them. They were not afraid
to use the word “tax” merely because it
was hurled back at them by the Democ-
racy. The Democracy has succeeded in
making a lot of people believe that the
word, “tax” is a word of opprobrium. I
have heard it used here and before the
committee in considering these Tariff
questions as though it was enough to
condemn a man to charge him with
wanting to tax the foreign producer
for coming into our market; but those
men Were not afraid to do it, and the
American people sºlstained them. Just
look at this phrase: - -
“And encourages home industry—”
They do not say by what per cent.
You do not require any lead pencil to
determine what the Republican Party
meant that wrote that platform.
“It puts the burden of revenue on
foreign goods; it secures the American
market for the American producer.” :
The Law and Gospel of the Republi-
can Party That We . Ought to Be
Sounding Here. -
That is the law and the gospel of
the Republican Party that we ought to
be Sounding here and up and down the
lands as We march against the common
enemy of the American people.
“It upholds, the American standard
of Wages for the American working-
man.” -
It does not say how nearly it can
put the American Workingman on a par
with the German or the English or the
French or the Mexican or the Canadian
workingman; it declares that it is in
favor of putting him before those
people—above them—in the standard
and Scale of compensation and prosper-
ity. -
e’
“It puts the factory by the side of the
farm.” - -
We here have lost sight of that. Who
has considered the effect upon - the sale
of farm products and the encourage-
ment to the productions of the farm in.
dealing with the steel schedule?. With
the billions of dollars represented by
the enterprise, they have sought only
to account for it along the trail of the
money changers. How much of it have
15
they traced into the country and sought
- to apply to the development of the re-
Sources of that great element of our
population, with 16,000,000 of laborers,
wage earners, and with 35,000,000 of
population? How much of this great
wealth have they sought to trace to
them?
In those days of Republicanism that
was the first thought in their minds;
that was the front banner in the pro-
cession—the relation between these in-
dustries and the people who supported
them. Let us get back to those lines
of Protection, and we shall have the
confidence and the support of the
American people. Those are grand
words.
“It diffuses general thrift, and founds
the strength of all on the strength of
each. In its reasonable application it
is just, fair, and impartial; equally Op-
posed to foreign control and domestic
monepoly.”
I am speaking against the foreign
control of our markets; I am Speaking
against the foreign influence or com-
petition in the field of production and
sale. The farmer is interested in hav-
ing a market, and his market can only
be based upon the purchasing power of
the people of the country. If you de-
stroy or impair their purchasing power,
it affects the market of every man and
woman in this country for whatever
they may have to sell, whether it be
the skill and energy of the man or the
woman, or whether it be the fertility
of the soil or the vicissitudes of life.
They are all at stake in this balance.
There Was Desperate Poverty; There
was a Lack of Reward for In-
dustry.
When we made our declaration in re-
gard to domestic policy, we were
speaking of recent history. We did not
have to read it; we knew it; We had
lived through it. It had been subjected
to the sifting process of no man's real-
soning power. We knew that yester-
day and last year and last month.
There was desperate poverty; there Was
a lack of reward for industry; there
was no market for industry. We knew
those things, and when we Wrote into
the platform— *
“We denounce the present Democratic
Tariff as sectional, injurious to the pub-
lic Credit, and destructive to business
enterprise—”
we knew What we were talking about
it was not a question of cheeseparing
and hairsplitting. -
Then, there is the threat—because it
is a threat—that is continually going
out that we are going to elect to buy of
a foreigner unless . Our people at home
will be dictated to by somebody else
as to what they shall receive for their
labor or enterprise.
If I had my Way, so far as the dis-
closures Of the Tariff are concerned,
you would not know there was another
government or another people on the
face of the earth except as we saw them
come creeping through subject to our
control, not coming through with a
mandate as to what our markets should
do with them when they came, but with
a plea for admission to the advantages
belonging to our Government,
I Would Maintain. This GOvernment
for Its Own People First.
And I am not envious of those who
grow rich; I am not envious of the men
of millions, about whom we have heard
so much. There is one solution to all
ambition, and that is that we all die.
It has solved many a question in this
world annong men. There are not 2
per cent. Of the fortunes to-day in the
hands of men whose fathers had them.
The field of opportunity has opened the
door of fortune to those whose fathers
knew Only labor. What is the use in
bothering ourselves because some man
is rich 2 If he is righ within the law,
it is his right. If the law is - wrong
that enables him to be rich, change the
law as to the man affected, but do not
repeal and amend laws affecting a hun- .
dred thousand other people in order to
get at the one man. Go after the man
hinnself. -
These are pertinent, considerations in
dealing with this great business ques-
tion of the country, because it is the
Government itself. The issues that
have been headlined in the papers for
the last few weeks and months, and
which have been discussed and wired
over the World, are of no consequence
to the people; they do not affect the
16
prosperity of the people nor their hap-
piness or comfort; they represent only
the rivalries annong men, the strife of
men to attain not something for the
benefit of their generation and their
country, but something that will add to
their physical or mental comfort as in-
dividuals. I am not interested in that
question. They can have what they
gain under the law and keep it without
making me envious or jealous. We
have been dealing with the wrong end
Of the question; and I do not suppose,
from the conditions that surround this
discussion now, that we are going to
get back into the right track until the
people put us there. It may be in this
generation, or it may be in the next.
I merely call attention now to the fact.
There Seems to Be a Disposition to
Disregard Old Lines and Old Prin-
ciples.
It may not seem a reasonable thing
for me to stand here and criticize the
platform made by the last Republican
national convention, but I am speak-
ing to Republicans when I refer to it,
and I am doing SO because there seenhs
to me to be a disposition, hore to dis-
regard the old lines and the Old prin-
ciples under which the party dominated
the country for the country's good and
the good of the people. Think of adopt-
ing a plank like this and then attempt—
ing to live up to it and misconstruing
it and adding to it:
“The Republican Party declares un-
equivocally for a revision of the Tariff
by a Special Session of Congress innme-
diately following the inauguration of
the next President.”
That was a concession to the taunts
of the Democracy. We were then
living under a Republican system of
Tariff and we ought to have obtained a
reputation by that time for wisdom
enough to ask the people to trust the
Republican Party to do the thing with-
out putting it in those apologetic terms,
apologizing to the Democracy, trying
to look more like a Democrat than a
Democrat in the hope that Democrats
would support us, not knowing us from .
the Democrats, and hoping that the Re-
publicans would remember us when we
took off the disguise, That is What we
f
were confronting and what we have
been confronting of late.
Here was a Republican convention
promising to jump at the snap of the, h
Democratic whip and telling them just
Thow we would do it. We were not con-
tent to say, “Well, Miss Democracy, we
have dealt with this question before,
and I guess you will have to trust us
to deal With it again, relying upon our
Wisdom and conservative judgment to
do it right.” That was not enough—
that was not bid enough for Democratic
Support, for the support of the discon-
tented between the lines.
Then, again, see what we said:
“In all Tariff legislation the true
principle of Protection is best nain-
tained by the imposition of such duties
as Will equal the difference between the
COSt Of production at home and abroad.”
is, the cost of production
-
That
abroad—
“together with a reasonable profit.”
Is It Not Absurd to suppose that We
Can Determine the Cost of Produc-
tion Abroad? *-
Whoever conceived that last sentence
would be a curiosity to me—“a reason-
able profit.” Who is going to deter-
mine? The profit to no two men is
equal. The profit of men engaged in
the same business on the same block,
buying of the same man and selling to
the Same class of customers, would not
be equal. Profit depends upon skill and
management and expense and all the
Other considerations that enter into it.
Mr. GALLINGER: I will ask the
Senator if it is not equally as absurd
for any man to suppose that we can
determine the cost of production abroad,
which is a varying matter from day
to day and month to month?
Mr. HEYBURN.
Mr. GALLINGER. It is absolutely
impossible to determine that accurately.
Mr. HEYBURN. There was the un-
derlying fallacy of it. The cost of pro-
duction of one article that I have in
mind in Germany varied more than 100
per cent. in 90 days—I referred to it
the other day in my remarks—and it
did so because there had been certain
Strikes and economic conditions sur-
It varies every day. .
**-
17
rounding that particular productive sec-
tion of the country, and the cost of
the item there had been enhanced. Then
when they resumed work under the con-
ditions of the employers the price went
clear down below where it was when
they started.
It is the fluctuation. How could a
manufacturer in this country know the
cost of production abroad unless he
cabled every day ? You have only to
take up their trade sheets to see the
vast shipments and the frequent and
continuous change in the cost of produc-
tion. Men go out ‘On a strike for 25 per
cent. increase in their pay, and they get
it. That adds to the cost of production.
Times are hard and men are hunting
employment in numbers, and that de-
preciates the cost of labor.
What Kind of a Basis to Rest On Is
the T)eclaration in That Platform”
Then, again, this proposition takes no
account Of the different conditions—the
cost of the buildings, and so forth. I
think anyone who has been personally
in a position to inspect it will agree
with me when I say that the large ma—
jority Of the manufactured products
in countries like Germany and espe-
cially in Germany are made in inexpen-
sive buildings. There are great work-
shops, there are finely equipped estab-
lishments, but the great majority of
the products of that country are made
in cheap Workshops, made by people
who live in cheap homes, made by
people who are content to work for
low wages.
What kind of a basis to rest on is the
declaration in that platform—the differ-
ence in cost between abroad and home?
Where is the element of stability and
certainty that the business world re-
quires as the condition of doing busi-
ness? That was written in that plat-
form. They first tried to forge new
principles. They undertook to write in-
to it a phrase from the Democratic plat-
form of the same year—a pledge of the
party to a revision downward.
Now I am going to ask the Senator
from Iowa, whether or not, in his judg-
ment, there was in the Republican plat-
form any pledge for a revision down-
Ward 2
Mr. CUMMINS. I think there was a
pledge for revision downward
Mr. HEYBUFN.
publican platform.
Mr. CUMMINS. Not in the, WOrds of
the platform, but when it is remem-
bered that that part of the platform
was adopted after a very long cam-
paign insisting upon a reduction of du-
ties, I am sure the Senator from Idaho
can not doubt that it was the general.
understanding that the platform would
be followed by a revision reducing gen-
erally the Tariff duties,
I said in the Re-
They Did Not Say They Were in
Favor of Revision Downward.
Mr. HEYETURN. That is rather a.
Secondary process of reasoning. There
had been agitation upon this subject,
and the minds of the people were alert,
and presumably the men in the conven-
tion had in mind whether they would
adopt it, and they affirmatively did not,
and the Senator arrives at the conclu-
Sion that they meant something just the
opposite of what they did when they
were alert. If the question had not
been agitated at all, if men’s minds
were not alive to it, he might have
claimed that it was through lack of at-
tention and by inadvertence that they
did not say they were in favor of revi-
SiOn down Ward, but the Senator’s state-
ment that the minds of the people were
alert precludes the possibility that they
Onitted it through inadvertence.
The Democratic platform had declared
for a revision downward; and were we
in such harmony with the Democratic
convention and the Democrats that we
would go and write into our platform
in Specific language the declaration of
the Democratic platform 2
* I do not think that anyone is justi-
fied in concluding that the national Re-
publican Party and those who sent the
delegates there ever for a moment in-
tended to concede that there was error
in Republican legislation and that the
Republican duties should be written
down under a pledge to get up in the
morning. before breakfast and do it.
Now, Mr. President, they went on.
They said they would do this on the
basis of a reasonable profit to Ameri-
can industries. There never was such
reckless language written into a plat-
form as those Words—a reasonable
profit to American industries, Who was
18
to determine the reasonable profit?
Cân the man who does business in an
expensively equipped business house
make the same profit as the man Who
does it under a tent? Can the main who
has a large investment in buildings in
Which he does business Compete On the
basis of profits with the man who has
no expense? Do not the rents and the
cost of the buildings enter into the
question whether or not he can make
What may be termed a reasonable profit?
Is it a reasonable profit for the man
who sells $10,000 worth of goods in a
year to make 5 , or 6 per cent. On them
as against the man who sells a million
dollars worth of goods out of a less
expensive establishment and makes 6
per cent. on them? Can you possibly
take that as a basis?
A Word of Warning that They May
Not Repeat Such Mistakes.
This platform is history, and I am
only speaking, as I say, to Republicans
a word of warning along Republican
lines, that they may not repeat such
mistakes, and inasmuch as we were not
pledged in dealing with the question of
Tariff duties to reduce them downward
or at all, I feel perfectly free, without
being Open to the charge of attacking
my party or its platform, in calling at-
tention to a just and proper interpreta-
tion of this language. No matter what
the men who wrote it intended, we are
entitled to enterpret it by the dictionary
of Republicanism.
I have been for three years here in
this body fighting and contending against
the assumption that
Party was pledged to that which Sena-
tors have been continually insisting it
... should do; that is, to revise the Tariff
downward. Republicans here have be-
come so obsessed with that idea that I.
think they really believed there was
moral obligation resting upon them to
revise the Tariff dOWnward. Their
wires had become crossed. They had
been reading the declaration of the Dem-
ocratic platform probably without know-
ing it. The very fact that it was writ-
ten in a Democratic platform would put
me on notice.
Mr. POINDEXTER. The Senator will
concede, I suppose, that this part of the
Republican platform of 1908 was adop-
the Republican.
ted on account of the public agitation
of the Tariff question for a long time
preceding it. Does the Senator contend
that there had been any agitation to in- .
crease the duties on any important
schedules Of the Tariff law 2 -
Mr. HEYEURN. We had made a dec-
laration in favor of a Tariff system, and,
We had followed that with a declaration
“Let that stand,” and we were not agi-
tating it. The worst thing that hap-
pens in this country is the frequent agi-
tation Of this question.
Mr. POINDEXTER. ‘ I agree with the
Senator there.
Mr. HEYBURN. And changes in con-
ditions do not warrant
Mr. POINDEXTER. The Senator
Changes in Conditions Do Not War-
rant Interference with the Tariff.
Mr. HEYBURN. Pardon me. And
changes in conditions do not warrant in-
terference with the Tariff unless you
proceed upon the assumption that you
will make a change every day to COm-
ply with extraneous or outside condi-
tions. Then you would have to change
it every day. If you are going to revise
or make a Tariff based upon the chang-
ing conditions you would have to make
it every day. *
I now yield to the Senator from Wash-
ington. --
Mr. POINDEXTER. I agree with the
general statement which the Senator
makes. Of course, that has nothing to
do with the particular inquiry as to the
proper construction of the platform of
1908. I think myself the Tariff ought
to be taken out of political campa,” “n S.
It could be taken out, and the country
ought not to be continually agitating
the question. But it was agitated; it
was the subject of general agitation
and the leading public question in this
country for a long time before the plat-
form of 1908 was adopted, and the
only insistent demand that was made
with regard to changing the Tariff in
any way whatever was that it should
be reduced and not increased.
Mr. HEYEURN. I want to say some-
thing to the Senator from Washington.
This is an opportune time. The Sena-
tor from Washington says the senti-
ment was in favor of Tariff reduction.
outside of Congress. That is the effect
\
19
of what he said. There never was a Senti-
ment of that kind that met the fa.V.Or
of the American people and there never
will be. There are a lot—I do not know
how I ought to designate them and still
be respectful—of unoccupied, Would-be
politicians who can always teil how the
other man can perform his task; but,
fortunately for the people, they never
perform any of their own. They are
like the man on the fence who tells the
farmer how he can plow a furrow or
a man who sees a mechanic at Work and
tells him how to do the work. There
is no one I know of that favored such
a proposition who was ever intrusted
by the people—I mean Originally; I
know where it started—with the respon-
sible duties of Government. They start-
ed the propaganda, and it afforded a
convenient nucleus for the men who
wanted something the people would not
give them. By and by it got to be quite
a big, floating body. Senators have Seen
seaweed start from one little plant Or
leaf and others attach themselves to
it, until it begins to think it is an island,
and by and by a continent, and now
these people begin to think they are
the earth.
Mr. SIMMONS. Mr. President
The PRESIDING OFFICER.
the Senator from Idaho yield to the
Senator from North Carolina? -
Mr. HEYBURN. Certainly.
-Mr. SIMMONS. I wish to inquire of
the Senator from Idaho if we will not
agree on some hour to-morrow at Which
to take a vote on this bill?
Mr. HEYEURN. ... Let me say to the
Senator that I have a work to per-
form. I am performing it at the right
place. It is not the work of converting
the Democracy. I have converted Only
a few Democrats, to my own personal
knowledge. I have had some Who Were
influenced in their judgment by What
I have said; but I am talking for the
Republican. Party, I hope and believe,
beyond the walls of this building as
well as within it. I am trying to do
that which will help to lay the foun-
dation for the success of Republican
principles—if not to-day, then some
other day. - . -
Trying to Lay the Foundation for the
Success of Republican Principles.
The work that I am engaged in is too
Does
serious for me to pause and consider
whether or not my own convenience or
that of others would be served by fix-
ing a time to vote. I do not for a mo-
ment imagine that I can stand here and
talk On this question indefinitely. But
I am going to talk it until I have said
What I think Ought to be said, and as
I think it ought to be said, as nearly.
as I can. I am not at all impatient with
the duties of government. I am not at
all impatient that we should make a
mistake in this hour by our action. I
ann not at all inpatient that we should
be left in a position where the Republi-
cans of the country will say, “You had.
the Opportunity and the power to say
to the American people where you stood
and why you stood there, and merely
because a combination was made be-
tween Democrats and some other people
you thought best to retreat from the
field.” I would never retreat from a.
field of action or controversy where my
duty required me to remain and fight
it Out.
Has There Ever Been One of These
Freaks That Started from the Re-
publican Party and Started to Swim
Out Into the Ocean of Controversy
and Contest, Who Reached Either
Shore? -
[From the Congressional Record of
May 29, 1912.]
Mr. HEYBURN. Mr. President, yes-
terday at the close of the session I was
engaged in Some discussion that was
intended particularly for the ears of the
Republican Members of this body. The
fact is that any discussion of this ques-
tion from a Republican is appropriately
addressed to the Republican Members of
the body. -
The matter under consideration is one
of political policy, and I use the term
“political” as the equivalent of govern-
mental policy. These propositions, sub-
mitted by those who are neither Repub-
licans nor Democrats, do not, in my
judgment—and I say it in all kindness—
come within the Same class; that is, of
political questions, governmental ques-
tions. They originate from the spirit
of dissatisfaction and discontent and
antagonism in the contest for office. I
attack no man’s good faith when I say
20
that. Men become obsessed with the
idea that they want office, and they come
to believe that in order to do so they
must stand in a class by themselves;
that there is no hope for them within
the ranks of party organizations. They
are Often mistaken. It is Often true
that men who go outside of party or-
ganizations to seek preference in office
WOuid Sticceed better if they adhered
to the recognized principles of their
party. But their zeal misdirects then,
and when they once, get a certain dis-
tance from the shore it is very difficult
for them to swim back, and very often
they attempt to go toward the other
side, and drown on the way. Can any-
ône cite me to an instance in the politi-
cal history of this country when he
did not drown on his way in the at-
termpt?' I say it in all kindness. Has
there ever been one of , these freaks that
started from the Republican Party and
started to swim otit into the ocean of
controversy and contest who reached
either shore, and did not despair? I
recall none in the history of the party,
and I have taken that question up with
some degree of care, and now I make
the statement and the challenge to any-
one to point to a single instance where
a political offshoot ever started from
either side where it was not lost be-
, tween the lines and sunk into oblivion
as a political Organization. It has been
going on all of my lifetime, and his-
tory records that it has been going on
since the beginning of the Government.
There Are Some Members of This
Party Who Entertain Discontent,
Combined with Ambition.
I may be engaged in a vain enterprise
when I am talking to the man who rep-
resents that place in politics.
But there are present some members
of this party, who entertain discontent,
combined with ambition. They are per-
sonally up to the standard of the Sen-
ate so far as their individual honesty
is concerned, but I can find no better
word than to say that they are obsessed.
They see one thing. They fix their eye
upon it. It is an ignis fatilus. It is
a star of deception, but they will fall
into a thousand ditches in trying to
walk directly to it, and by and by they
walk into some ditches that are so deep
that they drown and you just see the
bubbles rising where they have gone
dOWI).
It is possible that men are going to
follow that in the hour of responsibility,
With the lessons of the past in front of
then) 2 -
The Republican Party is going to a
great national contest. It is strong
enough and right enough to win. It is
entitled to the support of Republicans,
and those Republicans should face the
flag at the head of the column. The
Only possible thing that can defeat the
Success of the Republican Party is that
these dissatisfied elements will under-
take to march in a different direction
from that being taken by the Republi-
can Party. -
The Republican Party is not always
perfect. It is not always up to the high
Standards that should control it, as I
Spent some time yesterday in pointing
Out, but it is better than any other
party, and the only field of hope lies
Within the scope of its horizon. There
is no hope out in the floundering, wal-
lowing ditches; there is no hope in a
Single sail upon the ocean; there is no
fleet of strength and concentration of
principle that will take it up in the
midst of the ocean and rescue it from
the Waves and the turnmoil that sur-
round it in its loneliness, to which to
Say, “Lead us; become our leader.”
There is no hope for such a condition
as that. -
There is no moral reason why such a.
condition should exist. Every code of
morals of a community in government
Or individually is against such a prob-
ability. Why should they 2 They have
run a Way from the body of responsibil- .
ity. They may be sailing in fancied
sunshine and smooth waters, but to
what end are they sailing? They have
deserted the ship, the fleet to which
they belong. Do you think you can go
Over into the Democratic fleet, take the
leadership there, or ever be recognized
as anything more than a useful ad-
junct to that party for temporary pur-
poses? -
Do You Believe in the Principles of
the Democratic Party? Then Go
There.
Do you believe in the principles of
the Democratic Party? Then go there
~, - - 21
and do not claim to be Republicans hy-
phenated and multiplied. Qld J Ohn
Hickman, who sat in Congress 60 years
ago, in a political speech made when
I was a boy—and it made an impression
on me, and, of course, it was not then
new—described that kind of politics as
assuming the cloak of virtue for the
purpose of enabling you to do that Which
you dared not do openly. I recall an-
other man who sat in Congress who
said it was stealing “the livery of the
court of Heaven to serve the devil in.”
Either of those expressions covers the
field. - 4.
Senators who profess to be Republi-
cans, who go into Republican caucuses,
whose names are listed among the Re-
publicans of this body have no right to
go out of caucuses and disregard the
rule of the majority of the Republican
caucus. . They have no right to do it
in dealing fairly among men.
thing they have to do, if they can not
agree with their party as an organiza-
tion, is to sever themselves from it,
either refrain from activity in political
life or join the other party or attempt
to make a new party and go down
among those I have described. But do
not claim to be Republicans and to write
that honored and honorable name upon
your banners unless you are going to
be Republicans.
Mr. President, I have it in mind to
draw some comparisons Without going
into specific figures, on the Tariff ques-
tion as it affected certain industries
within this schedule. But before I en-
ter upon that subject I desire to refer
to a memorandum . I have made, without
detaining the Senate. Inasmuch as I
have it in my mind to complete my re-
marks to-day, I will refrain from the
temptation of dealing in specific figures,
because this question should be de-
cided upon principle, with due reference
to figures. It is a question between the
producer and consumer in this coun-
try primarily. I am not going to comi-
pare the American producer with the
producer of any other nation in deter-
mining as to the measure of prosperity
that our people are entitled to. A man
is entitled to make a thousand per cent.
in this country, if he can do it without
disregarding the rights of another per-
• son, and I would not admit that be-
cause that person could supply himself
The only
from Germany or some other country
with the commodity involved in the
purchase Congress could put a penalty
upon our own citizens who would pre-
fer to deal with our own citizens.
We use our foreign commerce for the
purpose of producing a margin in our
favor and drawing money from abroad.
We have $2,000,000,000 invested in for-
eign commerce. I say “we”; -I mean the
people of the United States have $2,-
000,000,000 invested in that kind of com-
In eI'Ce,
We Can Cut the Foreign Commerce
Off and Be Always a Solvent
People. - -
Mr. President, we have a great many
times that sum invested in Our OWn
home business. We can cut the foreign
commerce off and be always a solvent
people. We can cut it out entirely,
disregard it, and be a solvent people.
We would not accumulate wealth as a
whole. That is only accumulated by
drawing upon the wealth of the out-
side world, with the exception of
the production of gold and silver.
We have added to our wealth, re-
gardless of foreign trade or com-
merce, something over $3,000,000,000 by
the production of money metals. That
represents half of the wealth of the
United States. We produce that from
the ground. Producing agricultural
crops or the forest proceeds adds noth-
ing to our wealth, because we consume
it. We keep nothing of it except the
buildings made from the lumber and
the improvements upon the land, and
that class of things, but from that
which we eat or consume we gain no
added Wealth. •.
What has this to do with the Tariff
question? It has this: A people who
can do that are entitled to the oppor-
tunity to do it without encroachment
or competition or resistance from out-
side the country. That is what the
Protective Tariff Stands for. It stands
to keep out of , our field of production
the people of other countries. We have
no responsibility for them whatever. It
is utterly immaterial to the people of
this country from either a moral or a
physical standpoint whether the people
of Germany or England or France or
any other country prosper or not, I
\
22
an Speaking now from a sense of gov-
ernmental responsibility. We have no
responsibility whatever for those peo-
. . ple, and we have a responsibility for our
OWn people and their success.
We Lose Sight of the Distinction Be-
tween Destructible and Indestruc-
tible Wealth.
The wealth that enters into the build-
ing of permanent things, that last prac-
tically forever, is more desirable than
the Wealth which goes into the daily
comfort and livelihood Of mankind. One
gives comfort temporarily and neces-
sarily; the Other is the foundation of
government. Government, reduced down
to the last analysis, is substantially lo-
cated and occupied humanity. Human-
ity unoccupied and unlocated does not
and could not constitute government. It
would be the government of the Arab in
his tent, the government of the Indian
on the trail, and that is not govern-
ment in the sense that we use it. What
we want is government fixed to the soil,
with its houses, its fences, and its
barns, and, above all, its titles, because
that is the basis of right.
There must be as a basis for govern
ment man and man's rights. Neither
can Stand alone. The right disasso-
ciated from the man is like the Sun-
shine of the bygone centuries; the man
disassociated from rights is helpless;
he is in the same position as the In-
dian on the trail or the Arab in the
desert. No government can rest upon
such conditions; none could be founded.
- That is a very fertile source for use-
ful consideration when we are dealing
with these questions, because I am
talking for the rights of citizenship at
home as distinguished from any pos-
sible responsibility that we may have
for the consideration Of the citizenship
of other countries. I have attempted
to picture the beginning of the homes of
this country. Those people are a part
of the Government, not ornaments.
They bear the relation to the Govern-
ment that the most responsible wheel in
its machinery bears. They are the pro-
du CerS.
We have heard a great deal about the
consumers here. Speeches have been
made covering days in talking about the
rights of the consumer. There would
be nothing to consume if it were not
for these producers. People could not
live in the country as consumers ex-
Cept that the producing element is pro-
tected and sustained that it might pro-
duce; and I am talking about producers.
The Cat Thinks the Cook Is of Much
More Importance Than the Master
of the House.
I am talking about sections of this
Country and interests and enterprises of
this country that produce that which
the consumer must have, and if we are
let alone, if we are protected in the
right that comes from settlement and .
the building up of government, we shall
produce all that the people need in this
Country, and we shall produce a great
deal more. Is not that a better presen-.
tation of the question under considera-
tion than was the presentation based
upon the consumer? That based upon
the consumer is like the cat and the
Cook. The cat thinks the cook is of
much more inportance than the master
of the house. Senators are not hungry,
but they conjure up in their minds a
Condition of starvation and hunger, and
then plead for it. It is basing your
argument upon a dream; and when you
Wake up the dream and the argument
have both passed away. My idea is to
build up production, to encourage it so
that the consumer will never lose a mo-
ment's sleep as to whether or not he is
going to have enough to eat to-morrow.
That is the ideal condition of govern-
ment. The idea of discussing this ques-
tion from the standpoint that we are at
the mercy of the world and must have
its products does not appeal to me.
We are not. We can build a wall higher
than the imaginary Tariff wall around
this country and multiply it many times,
and we shall have within that wall the
raw material for government and pros-
perity and greatness and happiness. If
in the division of the water and the
land there had been only this country
above the Walter, it would have been
a World equal to every opportunity and
every demand of mankind; we would
have been as prosperous and as happy
had we never known of any other coun-
try than this. If between now and to-
morrow morning you would cut the
Cables and Sink the ships that connect
23
d
4
..us with other countries, we would be
sufficient unto ourselves. We lose sight
of that and assume that we must of ne—
cessity have the help of some other
country and some other people in order
that We may exist at all.
It Is That Basic Error That Lies at
the Bottom of All This Talk.
And the cheeseparing and hair-split-
ting that we have heard here as to the:
probabilities and the possibilities that
if Germany should do this and Italy
should do that and England should do
something else, what Would happen to
us? Nothing would happen to us that
would tend to our destruction or dis–
comfort. Our Own side of the house has
fallen into that mistake to Some extent-
They have considered how intolerable
it would be to lose the results Of Ger–
‘man labor and of German enterprise,
rather than how, tolerable it would be:
to produce the things ourselves. That
we get the right point of view is im–
portant.
I was starting to say that I have
here a statement from the head of the
labor organization in Our immediate.
mining country. It is not the American
Federation of Labor or any of its
branches, but it is an orderly Organiza-
tion of our miners that succeeded the
disorderly organization that we drove
out. I will show you what he says as
to the effect of existing conditions upon
actual business affairs. His name is
John A. Rook, of PCellogg, Idaho. He
is at the head of the organization of
those who labor in the mines. We Work
about 4,000 men in those mines, and they
produce from $15,000,000 to $22,000,000
a year. It is wealth that is never de-
stroyed. It is not eaten up; it will be
in existence—that is, the result of the
labor will be in existence—when We are
all gone, as a part of the substantial
equipment of the affairs of men. That
is the kind of industry that We eSpe-
cially want to protect, but We must pro-
ºtect them all.
The Underwood Bill a Grave Menace
to the Present Prosperity of the
District.
Appearing before the committee, Mr.
Rock said;
“The miners of the Coeur d’Alene dis-
trict feel that the proposed lead sched-
ule of the Underwood bill is a grave
menace to the present prosperity Of the
district; and they feel that if a change
is made that causes a drop in the lead
º they will be the first ones to
Suffer.”
“There is another thing that I should
like to have you know. The mining
companies confine their business to min-
ing. There is no mining Company in
the district that forces its employees
to board at a certain Company boarding
house in which it has an interest Or
forces its married men to live in com-
pany houses. The residences of the dif-
ferent towns, which vary from $500 to
$1,500 in cost, are quite generally owned
by the miners themselves. In fact, I
may say that the companies help their
Imen in this way: That they will build a
house for them and allow them to make
payments on it until it is their own.”
I pause there to say that the condi-
tion of affairs that makes this necessary
is the direct result Of the Sustained
market for the products of those mines,
and it is sustained by reason. Of the
Tariff duties that discriminate in favor
of the American product, because I need
not bring proofs to establish the fact
that Mexico can produce all the lead
we produce and multiply it and that
IMexican lead is produced under condi-
tions where no man Owns
home, where the standard of living is
at the lowest, where the Wages are
from 30 to 50 or 60 cents a day, and
they produce lead under conditions not
known in this country; that is to say,
in many instances the lead is produced
in connection with a higher percentage
of silver than ours and at infinitely less
cost both of production and of transpor-
tation and smelting or concentrating.
Advantage of $5.00 a Ton Against
Our Mines Producing Lead in Our
Country. º
The Senator from Iowa [Mr. CUM-
MINS] offered an amendment to this
bill in which he proposed to reduce the
duty on lead bullion $5 a ton. That
would Only mean that they would smelt
their lead ore on the Mexican side of
the line—across the Rio Grande River,
if you please, or wherever it was con-
venient—and ship it in with the advan-
tage of $5 a ton against our mines pro-
ducing lead in Our country. The re-
sult is Obvious -
Mr. SMOOT. In this connection I
his OWI)
24
would like to call the Senator's atten-
tion to the fact that when the miner
who produces lead sells that lead to
the smelter the settlement is made not
upon the price of the ore, but it is made
upon the price of bullion.
Mr. HEYBURN. I was just coming to
that.
Mr. SMOOT And if the rate upon the
lead bullion is reduced, it would mean
a reduction to the producer and not al-
together to the smelter.
Mr. HEYBURN. Mr. President, the
Senator from Utah has stated the situa-
tion accurately. I was proceeding to
.state it. There is no value in lead ore
so long as it remains ore, any more
than in building stone or road-making
material. It has no Value at all except
for the bullion that it will produce. If
you reduce the duty on bullion $5 a.
ton—and that is a very large reduc-
, tion—you give the Mexican miner and
ore producer the advantage of $5 over
the American producer. The result
would be that the smelters now Operat-
ing in America upon the product of the
American mines would go south of the
line—and some of them have only to
cross the river—and they would smelt
Mexican ores produced by Mexican la-
bor instead of smelting American ores
produced by American labor. The re-
sult would be that the wages paid for
mining ores would be paid in Mexico
to Mexicans, and there would be com—
paratively no wages paid to American
lead miners. The money paid for
Smelting ores and the capital invested
in smelting would be a Mexican invest-
ment; and, of course the corresponding
value Would be lost to the American
side of the line. If you invest a million
dollars in a mining and smelting plant
in Mexico, it is of no benefit to those
On the American side of the line, except
that they may buy machinery on this
side of the line, and that advantage is
growing less and less all the time, for
they can buy machinery in Germany or
in England; and the Mexicans are just
as close to those people in a business
way as they are to us, and a little more
SO.
The Situation as Affected by the
Amendment Which Proposes This
Reduction on Lead Bullion.
They came pretty near slipping it into
the Payne-Aldrich bill, but I discovered
it before it got too far and pulled it
out. Of course there are always combi-
nations of men and capital waiting for
an opportunity of that kind, *
I will proceed a little with this state-
ment, because it is authentic and abso-
lutely accurate. I have dealt with the
question of the independence and free-
dom from control of monopoly or trusts
that is enjoyed by the workmen in the
lead mines. They do not have to live in
boarding houses owned by the mines and
have the price taken out of their pay .
roll; they do not have to deal ºptº com-
pany stores and have the amount of
their bill taken out of their pay roll;
they get the amount of wages they
have earned clear and free from every-
thing, except that they themselves may
have given orders against it. So that
there is no grinding monopoly or trust
over these men, who are strictly the
product of the Protective Tariff policy
of the Republican Party. During the
time when we did not enjoy the benefit
Of that Protection we did not have these
conditionS.
There is another point in connection
with that. It seems to be assumed here
that the product of the mines is uni-
form. Any mine and all mines will
produce different qualities of ore. If
the duty on lead is reduced to the level
of the Tariff duty under the Wilson-
Gorman bill, lead goes down to 2%
cents a pound, because foreign competi-
tion can bring it in.
*
In the Last Days of That System of
Tariff Duties, -
Lead in the Coeur d’Alene country,
the largest lead-producing country, was
worth only 2% cents a pound. That is
$50 a ton. In order to get that ton Of
lead you had to mine 5 tons of rock,
and it costs as much to mine a ton of
rock as it does to mine a ton of solid
ore or any other valuable thing. You
had to mine 5 tons of the crude, as We
called it and you had to take that to a.
concentrator which is a very expensive
instrumentality, and concentrate it 5 in-
to 1. That 1 ton would contain 60 per
cent. lead and the balance would be
waste, except for the silver that was
in it. In the average mine the ore would
carry about 30 ounces of silver, 80 per
25
cent, lead, and the balance is Waste.
Now, that had to be shipped to the
smelter and freight paid on the Waste
just as well as on the metal value.
That was the condition, and When you
reduced the Tariff so that the lead Was
worth only 2% cents a pound after all
this expensive process or treatment We
had to leave 3 tons of ore on the dump
to 1 that we could send to the mill, be-
cause those 3 tons that we left behind
were not quite rich enough to yield any
profit. Sometimes we could not send in-
to market at all ore that required the
reduction of 5 into 1. We kept it on
hand, either in the mine or On the
dump or in ore -bins, because it would
not pay the cost of production. So We
had to do what we called rob our mines,
taking out the high-grade ore that
would bear the expense of treatment
and shipping. It results not only in
robbing the mine or else suspending
operations, but it results in the Waste
of a very large percentage of the real
{{uantity and value of the Ores.
Are You Going to Turn a Lot of Men
Loose to Look for Employment
Where There Is No Employment for
Them?
Are you going to do it in the inter-
, est of the laboring men of Europe Or
the laboring women of Europe? Are
you going to take the chances on doing
it? That is more important. It is easy
enough to say, “We are not going to
de) that; our policy will afford these
people just as much opportunity to la-
bor and prosper as that which you
propose.”
But you have only to read back within
your own easy recollection; and I ask
you, Are you going to take a chance
on it? Have you a right to take the
chances? You canne here to represent
those people. They individually are not
capable of running a government. They
are capable of exercising the rights of
citizenship, and those rights Vary a C-
cording to the capacity of the citizen.
It is all nonsense to say that one man
is as capable as another to engage in
the direct election of a President Of the
TJnited States, or of a United States
Senator, or of any other officer. They
are capable to. perform that part of the
duty adapted to their ability; that is
all.
I have seen a lot of twaddle in the
papers, and have heard a lot of it in
speech, condemning men who dared to
say that all men are not equally Cap-
able of being judges, or Senators, Or
Presidents, or bricklayers, or carpenters,
or any other labor. Yet you are going
to try—I hope you will not succeed—
but you are going to try to take a Way
from these people the opportunity. Be-
cause you want to give it to the for-
eigner? Would-you rather have for-
eign goods than home-made goods? No
nnatter how cheaply you could buy them,
would you rather buy your coat of a
foreigner and thus deprive your Own
fellow citizen of Khe right, at least, to
contribute toward the making of it; to
furnish something that went into it?
You will say that you would not pre-
fer to see a foreigner make your coat
than to have it made at home,
Would You Rather Have a Coat
Made of Foreign Wool Than of
Domestic Wool?
Would you rather have a coat made
of foreign wool than of domestic Wool,
if you could get it for the same price?
Yet you have said in defense of the
measure that you are urging that you
want to put them on an equal footing.
Even one of the foolish platforms upon
which the Republican Party went down
to defeat said that. The people Said,
“No ; are we not any better or have
we not any more rights than a foreign-
er? Has the Republican Party reached
that stage of degradation that it would
put us only on an even footing with a
Mexican or a foreigner of any coun-
try 2 Is there nothing to be proud of
in the fact that you are an American
Citizen? Are you not distinguished
above all men. On earth because you are
an American citizen? Then why be
content with saying we shall be exactly
On an even footing with foreigners in
the great household of the government
of production and consumption.”
Now, if you put our mines where we
will be in competition with Mexican
miners you will close Our mines. That
is no idle boast, because men are not
going to mine ore merely for the sake
of being industrious. I have said about
all I desire to say in regard to the
lead Subject.
26
The conditions that exist in Idaho
in regard to this matter are not dis-
similar to those that exist in Missouri,
or in Colorado, or in Utah, and Some
other leading mining sections. The re-
sult of a reduction of the duty upon
the product of these mines Will be
about the same, varying only accord-
ing to the variance in local conditions.
I do not imagine that any one of those
who are acting with the Democracy in
regard to this matter will strike this
blow at lead and the lead-mining in-
dustry. Yet it rests exactly on the
same principle as other articles.
Mr. President, it was not my inten-
tion to confine myself to a discussion of
the lead schedule. - *
What Is True of the Lead Schedule
Is True of the Zinc Schedule,
a text. We have other industries resting
upon the same basis. We have spent
millions of dollars to irrigate our lands,
in order that they might produce crops.
That is in southern Idaho, in What is
known as the semiarid region. Of what
avail is it to have expended that money.
if we destroy the market for the crops
that grow upon the land by reason of .
the expenditure of that money? If you
are going to destroy the market—that .
is, the market for the American pro-
duct— ... "
Of What avail is it to those people
that the factories can run on foreign
raw materials 2 - * . .
When we come to discuss the wool
bill We Will be confronted with that
proposition. When we come to discuss
the lumber schedule we will be con- .
fronted with an equally important one.
But it is the schedules in the aggre-
gate that count and that are important.
No Greater Evil Was Ever Inflicted
Upon the Country Than This Idea
of Revising the Tariff by Schedules.
There is no possible opportunity to
balance them one against the other.
There is no single schedule in our
Tariff law that does not bear directly a
lead in
the
or the items of zinc and
Schedule C. Zinc is mined under
same circumstances.
miners are the same, the cost of produc-
tion is the same. We have zinc mines
and zinc concentrating mills right in
the midst of our lead mines and lead
mills. - -
Mr. Samuels, who is the principal
owner of one of these mines and mills,
appeared before the committee and made
a statement that is unanswerable in fa-
vor of his contention that a reduction
of duties would close the mill. Senators
have doubtless given attention to it in
reading the report of the proceedings
before the connmittee. The zinc industry
is very new in that country, but its pos-
sibilities are unlimited, and the ques-
tion is whether the mines will lie there
in idleness or whether they will be de-
, aloned, whether they will produce oc-
runation for labor, whether they will
: #ford opportunity for commercial in-
“s ºn ent and business enterprise, or
they shall lie there as they
... ; ; ; ; ; ; liknown centuries. The real
x -: , it h ºf this country is in the ground,
and the people have a right to have the
opportunity to avail themselves of the
benefit of that wealth. It is a right.
It is not something to be doled out to
them at the pleasure of a coterie of
men. We are sent here to protect the
people in their rights, and it is a duty
that rests upon us.
I have taken a single State merely as
* : * : « : l i * . ."
; : . . t
The wages of the
responsible and dependent relation to
eVery Other schedule. The men who
work in the mines are the market for
the men Who Work on the farms. The
men who work in the foundries are the
market for the men who till the land,
who make the shoes, who weld the iron,
who mine in the ground. How can you
intelligently establish a schedule in-
volving a class of articles without con-
Sidering at the same time the effect
that it will have upon every other sched-
ule? I have stood here for years con-
tending against this fragmentary way of
dealing with the Tariff law. The Re-
publican Party has denounced it as im-
practicable and inn possible. Of What
avail is it to make rules that would
insure prosperity to the iron and steel
schedule unless we at the same time
take into consideration the rates and
duties that affect the men who are en-
gaged in the enterprises that foster and
Support and make a market for the pro-
ducts? What matters it if the Steel
Trust can produce a thousand tons or
a million dollars' worth of an article
27
- or commodity if it has no market for
... it? How can it have a market unless
the people to whom it would sell have
prosperity and money enough to buy
their product? How can those people
have prosperity and money enough un-
less they too in their turn are Pro-
tected against the encroachment of for-
eign competition in what they produce
and what they use? Of what avail is
it if we Protect the farmer if the
farmer has no market? How can the
farmer have a market annong unpaid
and unemployed people? How can he
have a market among those who have
nothing where with to buy? I am sim-
ply illustrating the fallacy of this idea.
of revising a Tariff by schedules,
The Farmer Will Have No Market for
His Products in a Bankrupt Com-
munity of Laboring Men.
law between those commodities.
If we pass this steel schedule and
have done all the harm” that we can to
those who mine ore and convert it into
articles of usefulness and then do not
revise any other schedule, we have de-
Stroyed the balance in the commercial
Sup-
pose we revise the steel schedule or
the metal schedule, and then revise the
lumber Schedule, we have put in an-
tagonism two of the greatest indus-
tries of this country, an antagonism that
they themselves are powerless, under
the law which we have laid down for
them, to adjust. Suppose that we open
the competition of foreign production
to the products of the farm, as was
sought to be done in the Canadian reci-
procity bill, so that the farmers of this
country have not sufficient Protection to
keep out the products of their neighbor-
ing countries, where is the market for
the products of the people of this coun-
try? Will they sell to the Operatives
of the metal schedule and those who
make iron in its various forms ? They
will be out of business; they will be
closed up; the OWners will be off en-
joying the spas of Europe while the
working men will go home wondering
and waiting. . when they will again be
employed. The farmer will have no
market for his products in a bankrupt
... community of laboring men. I repeat
that it is impossible intelligently to re-
form the Tariff laws by schedule, and
especially do I insist on that to the
Members of this side who have been
carried away with such a theory.
For Whom Is It We Are Proposing
to Make This Sacrifice,
Mr. President? We are proposing to
give employment to men who neither
owe nor contribute to citizenship of this
country in time of war and who fight it
in time of peace. The Other day, in
One Of the courts in the State of Wash-
ington, a man applying for papers of
citizenship was asked by the judge
Whether in time of war he would fight
for Italy or the United States. He
was a candid man, and he said, “I
would fight for Italy, of course.” . And
the judge refused to grant him citizen-
ship. We are proposing to take these
nonproductive people and give them an
advantage, I will say, in order to be
conservative, equivalent to Our Own
citizens without imposing upon them
any Of the responsibilities or burdens
of citizenship. Will we do it? That is
the question. If Congress does it, will
the American people sustain them in
doing it? The American people never
have sustained them when they have
attennpted to do it. It has always been
a single lap with the party that did it.
Mr. NEWLANDS. May I ask the
Senator from Idaho whether, in his in-
vestigations in committee regarding the
Tariff, he has found any duty which
can be safely reduced without injury
to the American working men or with-
out turning over their jobs to foreign
working men 2
Mr. HEYEURN. First, by paring
down the profits in this country.
Mr. NEWLANDS. I will ask the
Senator whether, in his investigation,
he has found any such duty 2
Mr. HEYE3URN. I have found a great
many duties that might be pared down
by paring the individual down to fit
the duty; but I was opposed to that.
I am not in favor of paring the Ameri-
can citizen down to the size of a for-
eigner.
Mr. NEWLANDS. What I wished to
ask the Senator was, whether, con-
sistently with the Protective principle
and with the full Protection which he
stands for of the American workers,
certain reductions could not. be made
in what are regarded as the excessive
28
duties of this Tariff and whether any
Such have come under his Observation?
Mr. HEYBURN. Mr. President, I saw
no place where the paring down of the
duty would not pare down the prosper-
ity of the American citizen.
Prosperity Seems to Be a Beast of
Hideous Mien to a Democrat.
My attention has been most forcibly
called to that. I am not making any
invidious comparisons when I say that.
I am speaking of the Democrat who is
the composite of all Democrats, so that
he has no personality about him, and
I can Say what I please about him. In
1884 Republican prosperity had resulted
in a large surplus of $60,000,000. We
would think it large now, and I heard
those figures rolled Out in Oratorical
beauty up in the country where I live.
Men were going up and down talking
about the surplus. It surprised them.
A Democrat had never seen a surplus,
you know, at all. I could name a lot
of them who were old dyed-in-the-wool
Virginia and West Virginia, and Ken-
tucky Democrats. That surplus made
them miserable. They would sit up
nights and worry about the surplus.
That was their whole argument—surplus
prosperity to the whole people. Now,
their cry is the same in that it is
that the individual is too prosperous.
You want to shave him down to fit
within the armor of the antiquated De-
mocracy. It is just like we see to-day
men trying to put themselves into the
armor of the days of the Lilliputians.
We will not engage in that with you. We
will stand out in the opposite direction,
and not try to see how closely we can
pare the prosperity of American oiti-
zens, but will see how broad we can
build them and what margin of expan-
Sion we can give to them. We are not
content ever with the prosperity of the
American Citizen. We want him to have
the opportunity to increase it.
I was talking Of the rharket of the
producer. The market is as variable as
the product.
zens bear to this Government? I hear
it discussed here every day from the
standpoint that the citizen is a vassal
and that the Government is a naster.
Many men have gone on the rocks upon
that mistake, The men who grow conn-
What relation do Our citi-
*
fortable and smug in office are danger-
OuS to themselves and to the people, be-
CauSe no man has title to an Office ex-
cept at the will of , the people.
Would You Dare Say that the Great
Republican Party Has Not Been
Progressive? g -
I am tired of this word “progressive.”
I am tired of hearing men usurp the use
Of a word as a watchword to which they
are not entitled. Is it progressive to
attempt to change the Organic law of
the land by destroying a part of it?
Is it progressive to take away from the .
judgment of the courts that finality that
has stood as a bulwark of our institu-
tions 2 Is it progressive to turn over
the exercise of representative govern-
ment to the hands of an irresponsible
democracy? Is that progress 2 I said
they have usurped the word. They have
undertaken to usurp a great word as a
name for their proposed action to be
written upon their banner. I will not
COn Cede it to them. *.
IS not a party progressive that has
administered the affairs of this Govern-
ment from the days of its puny exist-
ence until this time, with the results
that confront us? Would you dare say
that the great Republican Party has not
been progressive when it has shown it-
self capable of saving the Nation from
destruction and reorganizing it, of re-
Organizing the great financial system
of this Government, of inaugurating a
settlement system that has resulted in
the population of a vast territory that
was vacant when they found it, and of
bringing about the prosperity of the in-
dividual and the combination of indi-
viduals? Do you say that is not a pro-
gressive party? We are doing what we
have done too often. Měřely because
somebody claims something we are con-
ceding that they are entitled to it, be-
cause we are too tired to combat their
contention; and it is to this element
that we are to-day indebted for the
difficulty that confronts us in enacting
this legislation—the element that has
arrogated to itself the right to be termed
“progressive” and that has denounced
the Republican Party as being-, retro-
gressive. This organization has no rec-
ord to stand on ; it never accomplished
anything.
, 29
Compare Its Record with That of the
Republican Party and the Com-
parison Becomes Odious.
I want to locate the trouble this after-
noon and place the responsibility upon
it, and say to men, “Are you going to
insist on the stand you have taken, or
are you going to be manly and say, ‘We
were mistaken; we thought we had cor-
rect ideas of government, which, if ap-
plied, would be beneficial; but experi-
ence has taught us that our wisdom,
measured individually or in the aggre-
gate, is not the equal of that of the
Organized Republican Party.”
The F&epublican Party is a principle;
it is not men. Men come and go; they
live and die; and it makes no differ-
ence What name a man bears Who is
chosen to speak for the principles’ Of
the Republican Party, just as Our Gov-
ernment itself has stood for a principle
from the beginning.
I am not making these animadver-
sions upon those who have undertaken
to build up a new party with any spirit
of malice or disdain on my part. I rec-
ognize the fact that we are confronted
by a grave situation, and we come to
you with pleadings, with respectable and
respectful insistence, and ask you to
stay the hand that would despoil a great
party with a great history; to be patient
in the councils of that party; and to
yield to the majority of it. That is all
we ask of you. We ask of you not to
give aid and comfort to the enemy of
the Republican Party. Is that an un-
reasonable request? Suppose you are
right, you are more likely to obtain
what you seek in the Republican Party
than you are out of it.
The Republican Principle of Protec-
tion, Which Is Protection Which
Protects. -
There is not a Democrat on the
Other side who will change his views On
the Tariff question because of anything
said on this side, and while I am pleased
to give them the benefit of what I may
say, I am not hoping to obtain any con-
verts. But I do hope and I do pray that
those who would resist the Republican
principle of Protection, which is Protec-
tion which Protects, will see the error
of their way, come into the Republican
Party, and stay there; and if you do
not get what you think you are entitled
to just as Soon as you arrive, wait and
labor and fight within your own party.
The Situation is like a man who, be-
longing to one army in struggle with
another, goes out between the lines and
jumps up and down and hollers, de-
nouncing both, one at one time and an-
Other at an Other time, and lands no-
Where, while he is liable to fall between
both fires. Stay by the army that you
enlisted with. . If your cause is just,
you are more apt to win in the Repub-
lican Party than anywhere else, and if
it is unjust you ought not to win any-
where. There is no place in the world
that will more nearly convince a man
of his errors than in the party; but
he does not want side conferences.
When a tree is growing, in its early
stages or at almost any stage, we often
See Sprouts that go up from the roots—
suckers they call them—and if you leave
them on the tree they draw from the
life of the tree. When you go out to
look for fruit, you do not look on the
sprouts for it; you expect the fruit
to be on the tree. There is no hope
for the sprout. There never comes a.
time when the sprout accomplishes or
a mounts to anything. You have to de-
pend upon the tree, and that is all that
this movement neans.
I feel that I am not spending my time
in vain. I am going to sow seed, Some
of which may germinate and grow. I
would not assume the position of a
critic. I am criticizing not men, but
men's acts and deeds. I have Seen
good men, men for whom I have a very
high personal regard, attempt this on
Several Occasions before.
Ht Is Easier to Get Out of the Repub-
lican Party Than to Get Back
Into It.
I remember, when the Greeley move-
ment came along, hearing Gov. Curtin,
of Pennsylvania, try to argue my father
into the belief that the Republican
Party had performed its nnission, and
that there was nothing left of it than
just a hulk, as described by the Sena-
tor fronn New Jersey, and the only way
to be a man at all and have a right
under the law was to join that move-
ment. My father said to him, “Gov-
ernor, it is easier to get out of the Re-
30
puplican Party than to get back into
it. Just take warning.” And history
has proved that to be true. .
I afterwards lived to see Gov. Curtin
Sit in Congress as a Democratic Mem-
ber from Pennsylvania. He got so far
from the Shore that he could not swim
back. There is a wide ocean lying be-
tween the Democratic Party and the
Repubrican Party, and if a man just
goes plunging forward on the waves
from the Republican Party long enough
he will wind up in the Democratic
Party.
I want Senators to think of it. I feel
that I have a right to submit this propo-
sition to them. I prefer to do it in
open council rather than -to assume to
talk to them individually about it. I
do not regard their position as a pri-
ºvate affair when it is attempted to be
applied in legislation. I regard it as
entirely a private affair when you con-
verse in private life, and therefore I
would not feel at liberty to reason or
argue with Senators on these questions
except as I do here in connection with
the performance of a duty which I re-
gard as a great one. I do not assume
or presume that I have the power to
convince or to convert men, but I have
the power and the right, which I am
exercising, of putting before the Senate
and before the American people for com-
parison these two positions. That is all.
There Is No Greater Danger to a
Political Organization Than the
Connivance and Council of a Few.
I would offend no man by criticizing
his conclusions or his actions from a
personal standpoint. We go before the
people—Senators among those whom I
refer to—and plead with men for their
support of certain principles, and we are
here in the position that any of us
Would Stand in if we were before the
people discussing political questions.
We may argue and we may plead as
We might not have the right to do un-
der the rules of propriety in individual
COnversation.
I Want to see the Republican Party
have all the strength and power and
wisdom in unity of council rather than
Counciling in bunches here and there.
There is no greater danger to a politi-
cal Organization than the connivance and
council of a few. Men conceive that
they are leaders, and they will select
two or three men or Senators and get
them off in a coterie and agree upon
Something without knowing whether or
not other Senators agree with them.
They can not make it work. There will
always be found in the party men who
can be Republicans without the support
or Without the consent of any other
man, who do not need the approbation
of any men or any man or any coterie
of men to be loyal and true Republi-
cans. - -
I have seen it in other days in this
body when just a few who had made
the mistake of thinking that they were
—what was it they used to call thern-
Selves; they had a name, topnotchers, I.
guess—conceived the idea that they were
running the Government. I have seen
them go down to defeat many and many
a time because of it. I want to know
something of the idea of every man with
whom I am to act in cooperation in
politics. I do not allow any man to
go off by himself and formulate the
destiny of any measure and carry, it
Out.
do I will not vote against my judgment
because he has offended, but I will be on
the alert.
I may agree with him, and if I.
31
That Is Political Jockeying, Just as
Reputable Here as on the Race
Course.
Mr. President, those remarks are ad-
dressed to those who are responsible for
the prophesied defeat of the Republican
Party in the vote that will come to-
day. It is said that they will Vote
against the Democratic bill and then the
bill
openly and candidly and come back and
take the bill that they voted against
only yesterday and enact it as a Demo-
IDemocrats will condenhn their
cratic measure—condemn it to-day and
approve it to-morrow. For what? How 2
Is power to be desired above principle?
Consider that.
acted here not long ago similar to the
one I have described. Do you Suppose
that the country—the thinking, intelli-
gent people of this country—approve
of £hat? That
jockeying, and it
here as it is on the race course, and
There WalS a SCene eIl-
is jockeying, political
is just as reputable
no more so. It is high time We under-
stood it.
In the best days of this Government, in
the most responsible days of this GOV-
ernment, it would not have been tol-
erated for a moment.
the Senate would have condemned it as
the opinion Qf the country would have
The opinion of
condemned it. I am now talking to all
the Republicans and all the Democrats.
I am not talking against time.
pose that whatever may happen in the
vicissitudes of life to leave permanently
I pro-
here a condennnation of that kind of
legislation. I intend to leave of record
here my appeal—and it comes from my
heart and my judgment—to those who
are stepping out of the Republican or—
ganization, to do what? To lay the
foundation of a new party? Great
heavens, they certainly have not so wild
a dream as that! A new party made of
what? Made up of Republicans? Such
a thing is absolutely impossible.
Mr. President, I Wish there Were
weeks instead of hours to elapse be-
tween this time and the vote upon the
pending bill. I wish that men might
go into council. With themselves and
thra.Sh we all must do at
intervals in our life great questions
But unfortu-
nately this is the hour of passion. It
Many a
if he could have thinking time,
Would save himself and his position
and his party against error.
Mr. President, I heard the testimony
it out, as
that affect Our destiny.
is not the hour of judgment.
Inlan,
. Of these representatives of industry be-
fore the Committee on Finance of this
body, and it was nearly all directed to
the large producer. I was impressed -
With the mistake at that time, as I have
always been impressed with it. I have
in my library all the hearings and pro-
ceedings in connection with the great
McKinley bill, and with the Dingley bill,
and I read them from end to end—every
One of them. I first commenced my
Studies of this question of political pol-
icy under the tutorship of Henry C.
Carey, than whom no greater disciple
of Republicanism ever lived.
When We Abandon That Principle We
Are Giving Away the Rights of the
American People.
When I was a boy I read his book
until I wore it out, and I have followed
all that has followed on that subject—
the proceedings in Congress and out of
it—and I know that when we abandon
that principle even a little we are giving
a Way just that much of the rights of the
American people.
It is with a feeling of dread that I
See this measure come to a vote—not
this first vote; this first vote will be
harmless, but it is with a feeling of
32
dread that I see the Republican Party There Will Be an Interrogation Point
... put itself in the position of explana- - g f
-> tion when it ought to be the master and
- recognized as such. That is true not
only with this schedule, but those that
will come teeming up like horrors to
confront us throughout this session. It
gives me a feeling of dread to know
that there is a policy here as to Which
the Republican Party is going to take
to the woods. It is going to get be-
hind trees so that it shall not be seen
when the hour of responsibility comes.
My dread is not for the future so much
as the present conditions by Which We .
must be confronted within a few brief
months, because I know that there are
Republicans in the United States in-
telligent enough and brave enough to
fight for the principles, of their party
as they did in 1896, when the leaders
who sent the party down under the
waves of defeat in 1892 were drowned in
the sea of political—pretty near, coward-
ice, under the threat of the Demoeracy;
and I know that when the old ship
comes up again there will be now com—
manders on her deck, new men at her
wheel and at her guns, and that the
chart and the compass will be in the
hands of men who know how to point
the Ship of State to the destiny of suc-
CôSS. -
trial Enterprise.
But between now and then what con-
fronts us? A condition of legislation
that, is not only a menace to-day, but
will be a realization when the Demo-
cratic Party shall have compared Ameri-
can citizenship and American industry
with those of other lands and rendered
Of those of
Other lands, and when there will be an
their judgment in favor
interrogation point before every proposi-
tion of industrial enterprise. I can see
that confronting us, with all the con-
sequences that will follow the four
At my time of life I look upon
it as a desperate situation—and that it
should be brought about in the face of
a Republican majority by a defectien
of men who have no substitute to offer,
only just that the totalizing wedge may
slip on either bevel to one party or the
Other, voting with the Democrats to-day
and against them to-morrow and with
them another day and so on—when there
is no necessity for such a desperate
condition to arise, to see it pressing
on us, as the hands of the clock move,
We have only the satisfaction—aye, we
have no satisfaction,
years."
except in the
knowledge that at the end of the admin-
istration that is to follow there will
come the redemption of the people.
B R H E F
--~~
Submitted on behalf of a Committee
appointed at conferences of American
Manufacturers of Metal Products,
held at New York City, November
and December, 1912, relative to the
Tariff on Lead and its products.
COMMITTEE ON BRIEFS
*
MILTON L. LISSBERGER
E. C. MILLER J. E. POPE
HON. OSCAR W. UNDERWOOD, .
... Chairman Committee on Ways and Means,
House of Representatives, Washington, D. C.
Sir : . . . . . . . . * * . . . . . .
For Some not clearly apparent reason, the customs tariff
laws of the United States, at least since 1872, have imposed as
1 elatively heavier duty upon pig lead than upon any other
analogous crude material. The Act of 1872 made the duty on this
metal 2 cents per pound, while the duty on pig iron was $7.00 per ,
ton, and on copper 5 cents per pound. The Act of 1883 reduced
the rate on iron to $6.00 per ton and on copper to 4 cents per
pound, and the law of 1890 made further reductions to 1%.c on
copper without changing 1ead or iron. Under the Wilson bill of
Atigust 28, 1894, the duty on lead was reduced to 1 cent, on iron
to $4.00 per ton and copper was put on the free list.
Under the Tariff Act of August, 1909, the duty on pig iron
was reduced from $4.00 to $2.50 per ton, the former duty was
equivalent to an ad valorem of 36 per cent, while the latter is
-equivalent to an ad valorem of 17.4 per cent.
† When the law of 1897 was under consideration in Congress,
º the “silver States” became an energetic factor in the arrangement
º of duties, and as lead was an important constituent of most of
* the silver-bearing ores, a demand for a higher rate of duty on this
* metal was acceded to and a rate of 2%C was imposed.
in Under the Tariff Act of August 5, 1909, the duty...on pig lead
was not changed, remaining at 2% c per pound, although the bill.
as reported from the House contained a reduction to 1%e per
º pound. The present tariff is equivalent to an ad valorem
y duty of over 57 per cent at present price of foreign lead, but at
the average price of foreign lead during 1908-9-10 thead valorem
equivalent is over 70 per cent. . . . . . . .
The ad valorem equivalent of the duty on iron has never
exceeded 50 per cent and since 1894 has been less than 25 per
cent, while the duty on copper, which averaged equal to 35 per
cent from 1873 to 1883, was only 9:30 per cent under the Act
of 1890, and was wiped out by the Act of 1894. The duty on
lead, meanwhile, has never averaged below 61 per cent except
under the Wilson bill, from 1894 to 1897, when it averaged 50
per cent. The duty imposed by the Dingley law was, at the time
of its enactment, equal to 123 per cent of the price in Europe.
and it has āveraged over 67 per cent during the eleven years the
law was in force. * , , , - . . . . . . . . . . .
* .
The Tariff Act of August 5, 1909, imposed a duty of $2.50
per ton on pig iron (Schedule C. Sec. 117), equivalent to an ad
valorem duty of about 17 per cent.
The position of those metals as products of three separate
industries, as well as their respective relations to other industries
of which they constitute the raw materials, do not differ in any
respect so widely as to justify the inequalities of the duties.
Statistics of the lead industry clearly indicate that at no
period in the last thirty-two years has an increase of duties been
necessary for its development, nor has that development, even
under the stimulus of the excessive protection afforded by the
Acts of 1897 and 1909 been allowed to exceed largely the con-
sumptive requirements of the country. There have been periods
in the last twelve years when a surplus domestic product of some
magnitude was exported at from 30 to 40 per cent below the price
charged the domestic consumer. Latterly, however, the control of
production has passed so completely into the hands of the smelting
interests, that production is so far regulated as to prevent any
considerable surplus over the consumptive requirements of the
country, this being a more effective means of maintaining prices
than the exportation of a surplus which might tend to break
prices in the foreign markets, where there is good reason to
believe that the largest American producer of lead is a party to
the so-called convention which by artificial methods succeeded
during 1912 in advancing lead to the highest price (with one
exception—1907) touched in more than thirty years.
Indeed it would appear that the contingency of American
competition in foreign markets is carefully guarded against, and
that the product of Mexican ores, smelted and refined in bond in
the United States and exported direct from the refinery, is not
allowed to go out in sufficient quantities to produce a surplus
abroad, where a steadily advancing price during the past three or
four years has undoubtedly been effected by the support given to
that market by those who controlled the supply from America.
Prior to 1862 there was no provision for lead ores in the
tariff, but the law enacted that year made them dutiable on the
basis of 1 cent on the lead in the ore, while the duty on pig lead
was fixed at 2 cents, and there was no change in these rates until
1883, when the duty on lead ore was made 1% c, though silver
ores containing lead were admitted free. The law of 1890, how-
ever, extended the duty of 1%.c to the lead content of all ores, and
no change was made in the Tariff Act of 1909.
4
Under the several tariff laws in force since 1873 the average
yearly production for the period covered by each law was as fol-
lows:
Act of 1872, 10 y’rs., av'g. 83,186 tons,
Act of 1883, 8 y’rs., av'g. 142,580 tons, av'g. increase 59,395 tons
Act of 1890, 4 y’rs., av'g. 169,882 tons, av'g. increase 27,302 tons
Act of 1894, 3 y’rs., av'g. 190,000 tons, av'g, increase 20,118 tons
Act of 1897, 10 y’rs., av'g. 285,000 tons, av'g, increase 95,000 tons
Act of 1909, 3 y’rs., av'g. 399,079 tons, av'g. increase 114,079 tons
(1912 estimated).
Statistics of consumption prior to 1890 are not available, but
from that date forward they are shown by the accompanying
table to correspond closely to the sum of the supplies from all
sources. That there was a similar correspondence between 1873
and 1890 is indicated by the records of stocks for the several
years of that period, which show that there were no important
accumulations at any time. From 1890 forward the figures are
from official records, and in that period, it will be noted that,
with exceptional years, the production followed very closely the
variations in the consumptive requirements of the country. In
1895, under the reduced duty, the increased consumption shown
was provided for by an increase of imports, while in 1902 the
apparent increase in consumption was met by no visible in-
crease, either of production or importation, and was really not
an actual consumption, but rather a transfer of surplus stocks
at reduced prices from the smelters to the consumers. That the
heavy imports of 1895 were to some extent speculative and did
not represent so large an increase of consumption, is probably
also true, as stocks at the beginning of the year were notably
light, and foreign prices during a portion of the year were at a
point which encouraged importations at the prevailing rate of
duty at a parity with the cost of domestic lead. The domestic
price was held so high during those years that importations of
pig lead were permitted by those in control of the situation, to
meet the excess of consumptive demand over the domestic sup-
ply. In a general way, however, the increased consumption has
corresponded to the industrial growth of the country, although
for ten years or more prior to 1908, the use of lead in electrical
equipments has made a consumptive demand largely in excess of
5
what would have resulted from the expansion of what had
previously been the normal outlets for the metal.
In the briefs submitted to the Payne-Aldrich Committee in
1909, on behalf of the miners, it is contended that 4 cents is the
minimum price for pig lead at which they can operate profitably.
It appears, however, from the same testimony, that the necessity
for a 4 cent price for pig lead in New York is due to the exactions
of the smelters, rather than to the cost of mining, and that these
exactions constitute an unwarranted tax upon the consumer. For
illustration, it is asserted that the miner contributes an allowance
of 10 per centum for wastage in smelting, whereas the real loss
is admittedly not over 2 per centum, leaving a clear gain to the
smelter of 32 cents per 100 pounds, on lead at 4 cents per pound.
Then, too, a freight charge of $1.25 per hundred pounds is de-
.ducted, which is an unwarranted assumption that all of the lead
smelted has to bear the cost of transportation to New York.
This charge could not be justified by the actual cost of
transportation, since a large share of the distribution is to
Western points, it is perfectly evident that no such average is
warranted, nor is the arbitrary allowance made by the smelters
for other than New York deliveries sufficient to offset the ex-
travagant charge which they make to the miner. The smelting
charge of $8.00 per ton of ore as stated in the testimony referred
to, is, we believe, largly fictitious, as most of the ore is furnished
in the form of concentrates, and instead of the $8.00 being charge-
able against an 8 per cent ore, which would be 5 cents per pound
on the lead content of such ore, it is really chargeable against a
ton of concentrates in which the percentage of lead is much
higher. -
“The Mineral Resources of the United States (page 312),
issue of 1883,” states in relation to costs of production of lead
in Missouri: “It is believed that the majority of the large pro-
'ducers are capable, of laying their lead down at St. Louis at a
coštºvarying between 3 and 3% c per pound.”
4. An analysis of all deductions made by the smelters from the
New York price in their contracts with the miner shows an ex-
cessive profit to the smelters, and indicates clearly that under rea-
sonable charges for Śrheiting and transportation the miner would
'be as well off at 3% c as he snow is at 4 cents. Reference to the
'accompanying table shows that in only eight out of thirty-nine
'years would a difference of 1 cent over London have resulted in
a price below 3%c at New York, while in twenty-five years it
6
would have given a price of 3% c or higher, and in twenty-one years
over 4 cents. That a reduction of the price below 4 cents would
prove so disastrous to the mining industry as is pictured, is not a
reasonable conclusion from the statistics of prices and produc-
tion appended hereto. In 1893, which was a year of business de-
pression, the price of lead fell to 3.73 cents, New York, and the
production was reduced to 163,982 tons, although there was a
consumption of 197,000 tons, the deficiency being made up by
importations. For the five years following, which included the
period of the Wilson bill, the price averaged 3.37 cents, but the
production increased from 162,686 tons in 1894 to 222,000 tons in
1898, a larger tonnage increase than had ever before occurred in
any like period, and one which had been but slightly exceeded in
any five year period since, although conditions both as to price
and consumptive requirements have all been more favorable.
“Mineral Resources of the United States,” 1883 (page 311)
recites, “The sharp competition between the smelters in Lead-
ville, in Pueblo and in Denver keeps prices for ores high.” These
circumstances all contribute to a heavy production. “High
Ores” benefit the Miner. “Heavy production” benefits the Con-
Sll 111eſ. t
The immediate effect of the increased duty under the law of
1897 was an effort to consolidate the smelting interests, and this
so far succeeded that the American Smelting and Refining Co.
was incorporated on April 4, 1899, with a capital of $65,000,000,
of which $54,800,000 was issued, and thirteen properties were
acquired, representing a very large proportion of the Silver and
lead smelting interest of the United States. That this consoli-
dation was not forced by the unprofitable character of the busi-
ness is evident from the fact that the prospectus of this com-
pany stated that the net earnings of the properties it had ac-
quired amounted to $3,100,000 in 1898, when the price of lead was
the same as it had been in 1897. Still greater earnings were
promised as the result of the economies of consolidation, and
these were so far realized from this source and from advanced
prices, that during its first fiscal year the company made $3,524,-
960. During its second year the capital was increased to $100,-
000,000, for the purpose of acquiring- additional mining and
smelting properties, and the profits increased to $6,585,103, in-
cluding those of the acquired properties for the full period. For
the following fiscal years the Company's profit and loss account VV 21S
credited as follows:
t w i
i
Year ended April 30, 1902. . . . . . . . . . . . . . . . . . . . . . . . $7,038,681
Year ended April 30, 1903. . . . . . . . . . . . . . . . . . . . . . . . 7,576,786
Year ended April 30, 1904. . . . . . . . . . . . . . . . . . . . . . . . 7,905,573
Year ended April 30, 1905. . . . . . . . . . . . . . . . . . . . . . . . 8,458,720
Year ended April 30, 1906. . . . . . . . . . . . . . . . . . . . . . . . 10,482,775
Year ended April 30, 1907. . . . . . . . . . . . . . . . . . . . . . . . 13,397,028
Year ended April 30, 1908. . . . . . . . . . . . . . . . . . . . . . . . 13,408,219
Year ended April 30, 1909. . . . . . . . . . . ... . . . . . . . . . . . . 15,251,269
Year ended April 30, 1910. . . . . . . . . . . . . . . . . . . . . . . . 16,797,547
Year ended April 30, 1911. . . . . . . . . . . . . . . . . . . . . . . . 13,047,511
The capital of the company is equally divided between pre-
ferred and common stock, and the value of the properties, aside
from good will and Other intangible assets, is estimated to be pos-
sibly two-thirds of the capitalization, while the net profits since
the second year of its existence have exceeded 7 per cent an-
nually upon the par value of the entire issue of stocks, which
basis of the underwriting is shown in the following extract from
the Commercial and Financial Chronicle of 1899:
FROM CHRONICLE-MARCH, 1899.
American Smelting & Refining Company (Underwriting)
“The underwriting of this new project, it is stated, is on the
basis of $1,000 cash for ten shares of Preferred and seven of Com-
mon stock. Of the authorized issue of $65,000,000 capital stock,
$54,000,000 (half Preferred) will be issued at once to provide for
the purchase of properties and to supply $7,500,000 working
capital. The Preferred Stock is 7% Cumulative and is preferred
as to assets as well as dividends. By the present issue of Com-
mon and Preferred, provision is made for acquiring the follow-
ing concerns engaged in smelting and refining lead and silver ore.
“The plants, machinery, tools, appurtenant property, patents,
etc., of the following: -
“Omaha & Grant Smelting Co., with plants at Omaha, Neb.;
Denver & Durango, Colo.
“United Smelting & Refining Co., with plants at Chicago,
Great Falls and Helena.
“Colorado Smelting & Refining Co., plant at Pueblo.
“Pueblo Smelting & Refining Co., plant at Denver.
“Globe Smelting & Refining Co., plant at Denver.
“Germania Smelting Co., plant at Salt Lake City, Utah.
“Hanauer Smelting Works, plant near Salt Lake City.
“Pennsylvania Lead Co., plant at Pittsburg.
“Pennsylvania Smelting plant at Salt Lake.
“Bi-Metallic Smelting Co., plant at Leadville, Colo.
“Also capital stock of Kansas City Smelting & Refining Co.,
which owns two plants at Leadville (Arkansas Valley and
Union); one plant near Kansas City; one plant at El Paso,
Texas, and large mining and other properties in Mexico.
“The net earnings of the above named companies are stated
as having exceeded $3,000,000 in 1898, and it is thought will be
largely increased by consolidation.”
. An extract from the official circular of the American Smelt-
ing & Refining Company, giving information about the new com-
pany, was published in the New York Journal of Commerce May
12, 1899:
From the Journal of Commerce, May 12, 1899.
“The American Smelting & Refining Company has issued an
Official circular giving information about the new Company.
“A representative of the Company said yesterday that he
believed the new industrial companies should recognize that the
public was entitled to a certain amount of information about such
companies, inasmuch as the Stock was offered for public pur-
chase.
“The circular in part is as follows:
“‘This Company owns or fully controls the business
and plants of the following corporations, viz.:
“‘The United States Smelting & Refining Company,
Helena and Great Falls, Mont. ; National Smelting
Company, Chicago, Ill.; Omaha & Grant Smelting
Company, Omaha, Neb., and Denver, Colo, ; San Juan
Smelting & Refining Company, Durango, Colo.;
Pueblo Smelting & Refining Company, Pueblo, Colo.;
Colorado Smelting Company, Pueblo, Colo.; Hanauer
Smelting Works, Salt Lake City, Utah; Pennsylvania
Lead Company and Pennsylvania Smelting Company,
Salt Lake City, Utah, and Pittsburg, Pa.; Globe
Smelting & Refining Company, Denver, Colo.; Bi-
wº 9
Metallic Smelting Company, Leadville, Colo.; Ger-
mania Lead Works, Salt Lake City, Utah; Consoli-
dated Kansas City Smelting & Refining Company,
Kansas City, Mo., and El Paso, Texas; Chicago &
Aurora Smelting & Refining Company, Chicago and
Aurora, Ill., and Leadville, Colo.
“‘The above properties will be free and clear with the
exception of the Omaha & Grant Smelting Company
First Mortgage 6% Bonds, due March 1, 1911, $1,133,-
000, and the Consolidated Kansas City Smelting &
Refining Company First Mortgage 6% Bonds, due
May 1st, 1900, $1,000,000.’
“Extracts from certificate of incorporation, fourth para-
graph : -
“‘The Preferred Stock shall be entitled in preference
to the Common Stock to Cumulative dividends at the
rate of 7% yearly, payable quarterly, half yearly or
yearly ; that is to say, dividends may be paid upon the
Common Stock only when the Preferred Stock shall
have received dividends at said rate from the time of
issue thereof. The Preferred Stock shall also have a
preference over the Common Stock in any distribution
of assets of the corporation, other than profits, until
the full par value thereof, and 7% per annum thereon
from the time of issue shall have been paid by divi-
dends or distribution. The Preferred Stock shall not
be entitled to dividend in excess of 7% per annum,
nor to any share in the assets in excess of said par
value and the amount then unpaid of such Cumulative
dividends; but only the Common Stock shall be en-
titled to any further dividends or any further share in
distribution.’
“The authorized capital and the amounts outstanding are
stated as follows:
Authorized Outstanding
$32,500,000 7% Cumulative Preferred Stock. . . . $27,400,000
32,500,000 Common Stock . . . . . . . . . . . . . . . . . . . 27,400,000
“Par value $100.
“No personal liability.
“Balance of authorized in Treasury of Company.
10
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“Officers—E. W. Nash, President; Barton Sewell, Vice-Pres-
ident; Edward Brush, Secretary; Thomas B. Adams, Assistant
Treasurer. - -
“Directors—E. W. Nash, A. Eilers, M. D. Thather, D. H.
Moffat, R. S. Towne, J. B. Grant, Guy C. Barton, W. S. Gurnee,
Barton Sewell, G. B. Shcley, Dennis Scheedy, A. R. Meyer, N.
Witherell, H. H. Rogers and Leonard Lewisohn.”
Concerning its relation to the mining and smelting industry,
Mr. Daniel Guggenheim, President of the American Smelting
and Refining Co., issued the following statement on December
18, 1908, which was published in all the leading New York news-
papers:
“As regards the lead smelting business of the Ameri-
can Smelting and Refining Company: Fully 90 per
cent of all the lead ores of the United States and in
the Republic of Mexico are now controlled by owner-
ship of mines and by long-time contracts. These ores
are either controlled by the American. Smelting and
Refining Co., or by its present competitors. And I
wish to state further that the earnings of the smelting
company at the present time, as well as of the securi-
ties company, are considerably in excess of the divi-
dends that are being paid.”
How far this 90 per cent control is vested directly in the
American Smelting and Refining Company, it is impossible to
State, for the reason that its relations to those concerns that are.
nominally its competitors are probably known to no one outside
of its own directors. If the history of the industry for the past
ten years may be accepted as a criterion of its future, there is
every reason to fear that its “present competitors,” whatever
their number, are likely at any moment to pass under its domina-
tion if not ownership. - -
This practical control of the mining and smelting industry
is now vested in less than a score of men, who having thus ac-
quired complete domination of the sources of supply, have al-
ready extended their influence into the industrial fields where its
product of metal is chiefly converted into the commodities of con-
Sumption. In 1903, the American Smelting and Refining Co.
interests formed the United Lead Company with a capital of
11
$25,000,000, by the amalgamation of some thirty concerns manu-
facturing white lead, sheet lead, shot, lead pipe, and other
plumbing materials, through which it sought to complete a
monopoly of the production and distribution of this metal. Its
subsequent transfer of the United Lead Company to the National
Lead Company is not assumed to have lessened its control of the
situation, if, indeed, it has not strengthened it, as may reason-
ably be inferred from its representation on the Board of Direc-
tors of both these corporations, and through them its control of
the competing interests represented in the Hoyt Metal Company
and the Magnus Metal Company.
As illustrative of the continuing reaching out for control of
and over all avenues through which its product, when manu-
factured, can reach the ultimate consumer, it should here be
noted that the Matheson Lead Co. of New York, which in 1908
and 1909 was the only important manufacturer of White Lead,
outside of the National Lead Co. and United Lead Co. in the
East, has during the past year passed through stock control under
the domination of the National Lead Co.
The formation of the United Lead Company was furthered by
the danger that concerns which did not participate in this con-
solidation would have their supplies of lead cut off, and the fear
which this danger, whether anticipated or openly threatened, was
intended to inspire in those whose participation was solicited.
Besides its wide ownership in these distinct although related
industries, its power over competitors is augmented by the rela-
tion which it bears to the transportation companies. It is possi-
ble that the enormous extent of its shipments would be regarded
as justifying this relationship, but its effect is none the 1ess said
to have been seriously felt, especially at the mining and smelting
centres, where competition has been gradually but effectually
checked during the past five years. -
Imports of pig lead are possible only under conditions which
involve the depression of all foreign markets without a corre-
sponding depression here, and a study of the statistics given here-
in shows that like influences affecting the value of 1ead have in
the past operated simultaneously in the markets of the United
States and Europe. When they are permitted to operate naturally
the American miner has no reasonable ground for asking that
their operation be stayed, and the American consumer has every
reasonable ground for asking that it be not interfered with.
With the smelting interests organized as they are at present in
12
this country, the admission of lead from foreign ores into con-
sumption here is only possible through the channels which control
these ores. Competition from foreign pig lead is therefore out
of the question except on a basis of lead made from foreign ores
in an American smelter which, being so controlled, nullifies it as
a factor in supplies for the American consumer. That basis
could not now exist, even were the duty on pig lead the same as
on lead in the ore, as is proven by the fact that the United States
exports largely every year of pig lead made from Mexican or
British Columbian ores smelted here in bond and sold in the
European markets at the prices prevailing there, less the cost of
transportation. - - i
It is admitted, we believe, that nowhere else in the world is
smelting done at less actual cost than in this country, and under
the operation of the Tariff law existing prior to the Act of
August, 1909, the smelter was given a bonus of from 7 to 8 per
cent on all the lead smelted from foreign ores, by being permitted
to export 90 per cent in full settlement of his bonded importa-
tion, the 10 per cent remaining being an allowance for wastage.
As the actual wastage was but 2 to 3 per cent, the balance of
7 to 8 per cent was thrown into domestic consumption by him
without the payment of any duty, an annual average of 7,000 to
8,000 tons. - - -
We believe the elimination of this species of graft, which is
noticeable by a comparison of previous Tariff acts with that of
August, 1909, was due to the publicity given thereto by this
committee. - :
Moreover, the Western smelter has a good measure of pro-
tection on his pig lead in competition with imported pig, in
the difference between the cost of transportation on his product
from the smelter to Eastern markets and on the foreign
material, landed at Atlantic ports for shipment to the West. The
freight rate on pig lead, St. Louis to New York, is 15 cents
per 100 pounds, while from New York to St. Louis, it is
29 cents per 100. So far at least as the chief consum-
ing points west of the Alleghenies are concerned, the Western
smelter has a protection of from 4c to 4 c per pound, in the cost
of transporting imported pig lead from the Coast to the interior.
In his testimony before the Payne Committee, on December
16, 1908, Mr. Edward Brush, Vice-President of the American
Smelting and Refining Company, is reported to have said that
13
“The duty on bullion can stand a reduction of half a
cent a pound, while pig lead can dispense with an un-
necessary three-eighths of a cent now accorded it. But
these reductions, he said, marked the lowest limits
that the industry to-day can stand.”
We believe, however, that there is no necessity, existing or
likely to occur, for any protection to the smelting interests in
excess of the duty on lead in the ore, and our recommendation
will be that they be made the same.
We do not believe that a material reduction in the present
duty would result in largely increased importations, except on
the rare occasions when domestic consumption exceeded the
productive capacity of those mines which should be regarded as
available sources by reason of their producing costs bearing some
reasonable ratio to the costs of production in other producing
countries. It is manifestly unfair to the American consumer that
the cost of lead to him should be predicated upon the exception-
ally high cost of production in the most unfavorably situated
mines, or those operated with the least economy, especially when
those mines do not represent a large proportion of the domestic
supply. The known cost of mining in the most productive mines
indicates that they are capable of furnishing an abundant Sup-
ply for all normal domestic consumptive requirements at a price
competing with any cost at which foreign lead could be laid
down here under a duty of 1% cent per pound. The effect of such a
reduction would be, however, to bring the foreign and domestic
markets to a close parity and render the domestic consumer in
some measure independent of the interests that now control the
supply of metallic lead.
In view of the facts stated in this brief, and all that has been
brought out in the testimony bearing upon this subject in the
hearings before the Payne Committee and the Underwood Com-
mittee, we respectfully urge, on behalf of the independent pro-
ducers, as well of the consumers of 1ead products, the following
amendments to the present tariff law :
1. That paragraph 181 of the present law shall be repealed
and that the new law shall contain no provision for sampling ores,
but shall leave to the Treasury Department the making of such
regulations as shall safeguard the Government, but at the same
time shall not, as does the present law, absolutely preclude the
1 4
possibility of a small smelter bringing in Lead Ore. The Treasury
Department can thus be held by appeal to the courts, if necessary,
to make such regulations as will not put undue expense upon the
small smelter for sampling, but will make the Government assume
the cost of the sampling, as it does in the case of every other im-
ported article.
2. That Paragraph No. 182 read as follows: Lead Dross,
Lead Bullion or Base Bullion, Lead in Pigs or Bars, Old Refuse
Lead run into Blocks or Bars, Old Scrap Lead fit only to be re-
manufactured, Lead in any form not specifically provided for in
this act, and the Lead contents contained in Lead bearing Ores
of all kinds; all the foregoing at c. per pound; Lead in Sheets,
Pipe, Shot, Traps, Braziers, Lead and Lead Wire c. per pound.
We have named no rate of duty in the preceding paragraph
for the reason that while we regard a duty of one cent per pound
the maximum that even the statements of mining interests which
have appeared before your Committee could justify, we still be-
lieve and strongly urge that any rate above one-quarter cent per
pound will not be productive of revenues. At the same time we
are of the opinion that a reduction even to one-half cent per
pound would check the absolute control of the market by any
single interest, and prevent the fixing of fictitious values upon pig
lead as was done by the smelters in 1906, providing it was stated
that combinations, agreements or participation in conventions
designed to regulate the price or production of lead ores or
products as well as the blacklisting of any consumer or con-
sumers, dealer or dealers for any cause whatsoever should de-
prive the party so acting of all privileges accruing to them under
the law.
3. Manufactures of Lead other than those in clause 182 of
the Payne-Aldrich Bill should also bear a proportionate reduc-
tion to that made on Pig Lead.
We are appending to this brief a Schedule of the changes in
price made by the American Smelting & Refining Co. for the years
they have been practically in control of the market, which control
was officially recognized by the Government in the Report of the
United States Geological Survey as early as the year 1904.
A perusal of these prices will distinctly show that the changes
could not have possibly been dictated solely by the law of supply
and demand. The admission that many long period contracts
with miners have been based upon Pig Lead at 4 cents at New York
15
is clear evidence that this was considered at least a fair price by the
miners; and the fact that since these contracts were made,
at no time until the panic of 1907, was Pig Lead as low as 4 cents
per pound, demonstrates that the benefits accruing under the
tariffs of 1897 and 1909 were not enjoyed by the miners, but
rather by the smelters, who certainly by their own evidence have
established the fact that they need no protection.
Further proof of this is seen in the fact that with the ex-
ception of manufacturing companies closely affiliated with the
smelting interests, it has been impossible to buy imported Lead
for the purpose of manufacturing for export, except such Lead
as bore 2% c. per pound duty, for the reason that during most of
this time Lead made from foreign Ore, plus the duty of 1%.c.,
would have netted less than the price of domestic Pig Lead. •r
Notes on the Refining of Foreign Lead in Bond.
Under the Tariff of August 28, 1894—The allowance for loss
in wastage through Smelting of foreign ores or Base Bullion in
bond was fixed at 2 per cent. The allowance under the Tariff Act
of 1897 was 10 per cent for loss in wastage through Smelting of
Foreign Ores in Bond; this we contended was excessive. We sub-
mitted as authority on this subject, to Payne Committee in our brief
of December, 1908, the Official records of the United States Govern-
ment and quoted from the “Advance Chapter of Mineral Resources
of the United States Calendar Year 1907,” published by the De-
partment of the Interior—United States Geological Survey. This
phase of the law of 1897 was repealed in the Act of 1909, doubt-
less as a result of the publicity then given to so noticeable a case
of special privilege to the Smelting interests.
As to official figures of production, we quote from “Mineral
Resources,” published by the Department of the Interior, United
States Geological Survey (issue of 1902), page 208: “In the
beginning it was possible to arrive at the net American produc-
tion by deducting from the total Pig Lead production of the
works, the Lead contents of the foreign. Base Bullion and Ores.
The commercial Statistics and the Domestic Production Statistics
were identical. Later on the supply to the home markets in-
cluded besides the product of our own mines, varying quantities
of “exempt” Lead, being a certain tonnage of Lead obtained from
foreign material which did not pay a duty.” • --
16
We reproduced the figures of the United States. Geological Sur-
vey showing the production of refined Lead in the United States
froni foreign ores and bullion, during the years prior to the law of
1894. During the term of that Law, 1894, 1895, 1896 and 1897,
showing that the product of Lead smelted in bond from such foreign
ores and base bullion increased during the period from 59,739 tons
in 1894 to 83,671 in 1897. We then claimed that any allowance
for a smelting loss exceeding two per cent. (2%) was therefore
either equivalent to a payment of a bounty to Foreign Producers of
Lead Ore Smelted in this Country. or to a bonus given to the Smelt-
ing Companies and amounting to the current rate of duty upon
such foreign, Lead Ores upon such excess over said two per cent
(2%) allowance. Under the Tariff Act of 1909 we were gratified
to note that our recommendations regarding the smelting of Lead in
bond as above outlined were adopted. * . . .
We call attention to these facts here, as we have reason to be-
lieve that an effort will be made to reincorporate the features of the
law of 1897 relative to such smelting in bond into the tariff legisla-
tion now in process. . * , & ge
The Wilson Tariff went into effect August 28th, 1894—The
following table shows the production of refined Lead in the United
States from Foreign Ores and Base Bullion for the period of three
(3) years prior to August 28th, 1894, when the Wilson Bill became
effective, for the years from 1894 to 1897 while the Wilson Bill
was in force, for the years 1897 to 1900 after the repeal thereof
and until the enactment of the Tariff Law of 1909 and following
years:
Production of Refined Lead in United States.
From Foreign Ores and Base Bullion.
Short Tons.
1891 1892 1893 1894 1895 1896 1897 1898 1899
23,852 39,957 65,351 59,739 76.738 77,738 83,671 99,945 95,926
1900 1901 1902 1903 1904. 1905 1906 1907
106,855 112,422 100,606 88,324 95,850 80,793 68,546 76,849
1908 1909 1910 1911 1912
97,761 102,857 108,553 94,134 81,649
l,
Notes on Exports of Domestic Lead.
“Mineral Resources of the United States, issue of 1883.”
In reviewing the Lead Market of 1878, states (Page 317): “The
effort proved” (to hold the price at four cents, New York) “a com-
plete failure, and Lead fell steadily until 3% cents was reached in
June. The falling off in the production of Utah and the shipment
of surplus supplies of Nevada Lead to China began to strengthen
the position somewhat.”
“Mineral Resources of the United States, issue of 1897,” (Page
240) states: “The Bureau reports also exports of 8,180 short Tons
of Domestic Lead, and notes a decline in stocks of Foreign Lead in
Warehouse from 9,865 tons on January 1st, 1896, to 4,124 Tons on
January 1st, 1897.” - * *
The report of the Lead industry in the United States contained
in “Mineral Industries of the United States,” published by the De-
partment of The Interior, U. S. Geological Survey, 1883, contains
these words (Page 306): “For a long period the output of the
Mines of Missouri and of the upper Mississippi region constituted
the bulk of the make of our Country, and during the period between
1840 and 1848 it became so heavy that considerable quantities of
the Metal were exported, the maximum being reached in 1844 when
8,223 tons went abroad.”
In conclusion, we submit that neither the mining of Lead, nor
the smelting and refining thereof, are infant industries in any sense
of the term; that the present duty on lead is prohibitive, and brings
no adequate revenue to the Government, but has produced a prac-
tical monopoly benefiting very few interests and imposing an unjust
and burdensome tax upon every class of consumers.
It is not alone the burden imposed upon the consumer by the
extravagant profits of these interests, from which relief is sought,
but equally the financial power with which such profits endow those
in control, and the monopoly of a vast industry which is being
rapidly acquired through the misapplied “benefits” of a prohibitory
tariff.
All of which is respectfully submitted.
(Signed) MILTON L. LISSBERGER,
Chairman.
STATISTICAL TABLES REFERRED TO IN
FOREGOING BRIEF.
Production, Imports, Consumption and Prices.
U. S Innport for Price Price
Production Consumption.,,..., U.S.,..., New York London Difference Duty
U. S. Geo. Ore, dross Consumption Cents CelhtS U, S
Survey, Tons and pig per lb. pep lb.
1873. . . . 42,540 36,212 632 500 132 200
1874. . . . 52,080 23,102 601 477 124 200
1875. . . . 59,640 16,392 585 488 97 200
1876. . . . 64,070 7,165 ($13 466 147 200
1877. . . . 81,900 7,292 549 445 104 200
1878. . . . 91,050 3,358 361 362 © tº tº 200
1879. . . . 92,780 608 414 309 105 200
1880. . . . 97,825 3,362 504 353 151 200
1881. . . . 117,085 2,164 481 324 157 200
1882. . . . 132,890 3,050 491 311 180 200
1883. . . . .143,957 2,319 432 280 152 200
1884. . . . 139,897 1,536 - 374. 241 133 200
1885. . . . 129,412 2,933 * 395 249 : 146 200
1886. ... 130,629 9,149 | 463 287 176 200
1887. . . . 145,700 3,935 450 278 172 200
1888. . . . 151,919 1,335 . 442 302 140 200
1889. . . . 156,396 1,550 393 283 110 200
1890. . . . .143,630 15,210 170,305 448 291 157 200
1891. . . . 178,554 22,042 200,026 435 270 165 200
1892. . . . 173,305 27,920 210,900 409 22S 181 200 .
1893. . . . 163,982 26,224 197,079 373 216 157 200
*1894. . . . 162,686 36,045 192,371 329 207 122 200/100
*1895. . . . 170,000 77,310 241,044 323 230 93 100
*1896. . . . 188,000 24,190 213,901 298 244 54 100
*1897. . . . 212,000 23,545 219,248 358 224 134 100/2125
1898. . . . 222,000 8,461 227,452 378 2S4 94 2125
1899. . . . 210,000 5,150 226,315 447 327 120 2125
1900. . . . 270,824 6,942 269,302 437 377 60 2125
1901. . . . 270,000 6,964 274,020 403 275 128 2125
1902. . . . 270,000 13,472 335,485 407 244 163 2125.
1903. . . . 280,000 25,063 304,483 424 254. 170 2125
1904. . . . .307,000 18,167 223,766 436 262 174 2125
1905. . . . 322,000 39,000 361,000 471 301 170 2125
1906. . . . 347,000 35,000 382,000 566 395 171 2125
1907. . . . .357,000 28,000 385,000 532 413 119 2125
1908. . . . 298,672 97,761 396,433 423 293 130 2125
1909. . . . .345,255 102,857 448,112 430 283 147 2125
1910. . . . 361,827 108,553 470,380 449 2SO 169 2125
1911 . . . . 397,814 89,706 .487,520 446 301 145 2125
1912. . . . 393,262 S7,703 480,965 448 388 60 2125
*Wilson Tariff Production (notwithstanding 1 cent duty and average selling price in
New York of 3.27 cents per pound) increased from 162,686 tons to 212,000 tons annually
or 33 per cent.
19
Imports of Lead I -
- - (Tons of 2,240 Lbs.)
$
}{ritish
nto United States, Classified by
t
Countries. . .
EX ports ill
Year Europe No. Amner. Mexico Sundries BOInd
1895 20,000 6,500 70,000 . . . . . . 18,632
1896 1,174 10,968 58,001 781 45,254
1897 1,280 16,750 61,639 94 52,846
1898 - 141 16,441 65,218 149 76,355
1899 200 9,000 76,000 500 66,720
tº 1900 . . . 404 15,190 79,841 2.295 91,856
tº 1901 . 487 23,748 73,005 3,782 85,721
1902 1,350 8,094 82,005 2,375 67,287
1903 1,520 8,300 83,019 1,533 65,972
1904 . . 572 7,842 89,903 283 75,448
1905 1,789 . , 8,974 76,275 635 53,159
1906 8,060 8,514 56,491 185 - 41,597
1907 - 5,055 4,311 62,164 534 46,996
1908 2,302 575 92,798 456 66.349
1909 3,115 1,842 91,207 3,385 78,594
1910 - 3,111 49 87,213, 5,876 60,893
1911 : 1,964 9 75,622 3,053. , 89,051
1912 233 77,030 1,921 .. 56,944
In 1894 the total importation was 38,000 tons, and the total
exports 26,809. - - . . . º . . .
In 1905 the importation was very heavy, while the exports
were small. : .
* . " Smelting Company’s Prices.
U. . . . * - . .
The prices for common lead at New York, as made by the
American Smelting and Refining Company, and as compared
with London prices on even dates, are as follows: -
1900 : . c. rºy ºf
t . . . . • ‘ . . . . . . . . . in £ per tº . per lb.
January 2 the price was . . . . . . ... 4.75° 16 5 0 = 5.62%
May 7 price reduced to. . . . . . . . 445 ' ' ' ' 17.2 6 = 5.84%
May 10 price reduced to. . . . . . . 4.30 º' 17 3 9 = 5.86
May 14 price reduced to. . . . . . . . 4.05 17 2 6 = 5.84%
June 5 price reduced to... … 3.87% 17 "3 9 = 5.86
June 13 price reduced to . . . . . . . . .3.75, 17 5 0– , 5.87%
June 25 price advanced to. . . . . .
June 26 price advanced to......
July 2 price reduced to. . . . . . . .
July 9 price reduced to. . . . . . . .
August 1 price advanced to . . . .
August 27 price advanced tº
1901 :
December 17 price reduced to. .
1902:
January 3 price advanced to. . . .
1903:
March 10 price advanced to. . . .
March 13 price advanced to . . . .
April 27 price reduced to. . . . . .
June 16 price reduced to. . . . . . .
September 15 price advanced to
November 16 price reduced to..
December 14 price advanced to.
1904 :
January 13 price advanced to . . .
August 29 price advanced to . . .
December 1 price advanced to..
1905: -
January 23 price reduced to. . . .
March 20 price advanced to. . . .
July 25 price advanced to. . . . . .
August 24 price advanced to. . . .
November 1 price advanced to..
November 16 price advanced to.
December 21 price advanced to.
1906 :
February 14 price reduced to . . .
April 20 price advanced to . . . . .
May 3 price advanced to . . . . . . .
4.10
4.35
4.65
4.35
4.10
4.40
4.10
4.25
4.40
4.50
4.35
4.25
4.20
4.10
4.20
4.60
4.45
4.50
4.60
4.85
5.15
5.25
5.60
5.35
5.50
5.60
Price Of
Imported
Lead
C. F. I , N.Y.
in £ per toll
f
17
17
17
17
S.
10
10
10
10
18 . .
10
2
10
11 . .
13
13
10
12 . .
11
11
11
11
11
11
11.
| T
11
11
11
12
12
12
13
14
14
15
17
15.
15
16
12
16
11
10
15
18
1.
O
Ó
F
i
:
:
:
:
-
–
Cost
pei.a.)
Duty of
2 Cents
per lb.
5.92%
5.92
5.92
5.92
6.92
5.84%
4.40.
4.54
5.06
5.11
4.73%
4.56%
4.56%
4.52%
4.54
4.65
4.69
4.57
4.63
4.62
4.57
4.68
4.93
4.90
4.83
5.03
5.17%
5.25
5.46
5.85
5.53
5.59
5.62
May 14 price advanced to. . . . . .
December 13 price advanced to.
1907: -
June 3 price reduced to. . . . . . .
July 3 price reduced to . . . . . . . . .
September 6 price reduced to...
1907: t
November 18 withdrawn.
1908:
Open market.
1909 :
Opening price . . . . . . . . . . . . . . .
February 5 price reduced to. . . .
February 23 price reduced to...
March 29 price advanced to....
April 12 price advanced to . . . . .
April 15 price advanced to. . . . .
May 6 price advanced to . . . . . .
May 12 price advanced to . . . . . .
May 27 price advanced to. . . . . .
August 12 price advanced to. . .
December 9 price advanced to..
Decemebr 15 price advanced to.
December 20 price advanced to.
1910: . .
March 14 price reduced to. . . . .
March 21 price reduced to. . . . .
May 4 price reduced to. . . . . . . .
May 10 price reduced to . . . . . . .
November 18 price advanced to
1911: -
October 5 price reduced to. . . . .
October 10 price reduced to. . . .
November 10 price advanced to
November 27 price advanced to
}912 :
February 3 price reduced to. . . .
February 5 price reduced to....
March 20 price advanced to....
6.00
5.75
5.25
4.75
4.20
4.10
4.00
4.10
4.15
4.20
4.25
4.30
4.35
4.40
4.50
4.60
4.70
460
4.50
4.45
4.40
4.50
4.35
4.25°
4.35
4.45
4.10
4.00
4.10
Price Of
Imported
in £ per th
£
16
19
S
17
7
20 ..
20
19
12
13
13
13
13
13
13
13
12
12
13
18
10
13
13 . .
13
13
12
12
13
15
15
15
15
#15
15
16 5
:
3
17
12
15
d.
6
6
=
.
:
:
º
6
0
COSt.
penal
Duty Of
2 CentS
per lb.
5.79
6.45
6.47
6.73
6.42%
4.90
5.04
5.07
5.00
4.97
4.99
4.99
4.97
4.83
4.80
4.95
4.94
4.97
4.95
4.79
4.82
4.97
5.40
5.40
5.54
5.54
*5.49
5.52
5.64
22
March 21 price advanced to. . . . 4.20 16 5 0 = 5.64
June 12 price advanced to. . . . . 4.50 17 8 9 = 5.89
July 3 price advanced to . . . . . . 4.75 18 11 3 = 6.13
August 5 price reduced to..... 4.50 #19 5 0 = #6.29
August 26 price advanced to . . . 4.65 20 5 0 – 6.50
August 30 price advanced to. . . 4.85 2012 6 = 6.57
September 9 price advanced to. 5.10 23 15 0 – 7.25
November 4 price reduced to... 4.75 18 11 3 = 6.13
November 21 price reduced to. . 4.50 18 . . 0 = 6.02
December 3 price reduced to. . . 4.35 18 2 6 = 6.04
* February 3rd, Saturday, no cable; London quotation of
Monday, February 5th.
† No London cable August 5th ; London quotation of Au-
gust 6th. - -
CONTROL OF THE LEAD INDUSTRY.
From the Mine to the Consumer.
As illustrating the close affiliation of interest existing be-
tween the American Smelting and Refining Company, Smelters
and Producers of Pig Lead, and certain combinations of Manu-
facturers of Pig Lead products entering into the daily consump-
tion of a commodity vitally necessary to the great mass of the
people of the United States, we give the following details taken
from Moody's Manual, issues of 1905, 1906, 1907, 1908 and 1912.
(1) Guggenheim Exploration Co.,
(2) American Smelters Securities Co.,
(3) American Smelting and Refining Co.,
(4) The United Lead Co.,
(5) The Magnus Metal Co.,
(6) The National Lead Co.
Guggenheim Exploration Co. (Moody's Manual 1912–2920),
Incorporated June, 1899, under New Jersey Laws, controls a
number of Mining. Properties in Mexico and United States, and
23
Canada. In March, 1905, the company transferred a number of
its properties to the American Smelters Securities Co., receiving
in exchange therefor $15,400,000 preferred stock “A,” $2,000,000
preferred stock “B,” and $11,249,000 common stock in the latter.
Capital Stock Authorized $22,000,000, issued $20,319,910.
Dividends 10 per cent per annum, quarterly.
Balance Sheet Dec. 31, 1905–6–11.
Assets. 1911. 1906. 1905.
Treasury Stock . . . . . . . . . . . . $1,206,700 $1,680,700 $4,000,000
The Smelters Securities Co., - -
Series A Stock. . . . . . . . . . 13,860,000 13,860,000 $15,400,000
Series B Stock. . . . . . . . . . . . . . . . . . 1,800,000 +2,000,000
Common Stock . . . . . . . . . . . . . 1,500,000 #1 #1
Other Property and Invest-
ment . . . . . . . . . . . . . . . . . . . . 21,061,358 14,327,444 2,711,538
Furniture, etc. . . . . . . . . . . . . . 2,704 7,711 4,603
Bills and Accs. Collectible. . . 121,483 47,472 440,954
Cash and Demand Loan . . . . . 7,721,933 4,052,487 611,470
g $45,474,178 $35,775,815 $25,168,566
Liabilities. 1911. 1906. 1905.
Capital Stock . . . . . . . . . . . . . $22,000,000 $22,000,000 $17,000,000
Bills and Acts. Pay. . . . . . . . . . . . . . . . 14,861 1,301,317
Surplus . . . . . . . . . . . . . . . . . . . 23,474,178 13,760,954 6,867,249
$45,474,178 $35,775,815 $25,168,566
+ Par Value $11,249,000.
+ Par Value.
Note their surplus increased from $6,867,249 at end of 1905
to $23,474,178 at end of 1911, or (in six years) $17,606,929, al-
though they reduced the valuation of their American Smelters
Securities Stock, Series A and B, $3,040,000 in the same period.
Directors—Daniel Guggenheim, S. R. Guggenheim, Morris
Guggenheim, Isaac Guggenheim, Leopold Friedrich, C. K. Lip-
man, H. P. Whitney, John Hays Hammond, Geo. S. Field, Pope
Yeatman, O. B. Perry.
American Smelters Securities Co.. (Moody's Manual, p.
1899): “Inc. March 31, 1905, in New Jersey as The American
Smelters Exploration Co., name changed as above in May, 1905.
At its inception the Company acquired from the Guggenheim
24
Exploration Co. various mining properties and interests in Col-
orado, Missouri, and Mexico, and also received from that Com--
pany about $5,000,000 in cash to complete certain purchases.
Subsequently purchased other properties in Washington, Cali-
fornia, Utah, Missouri and Mexico. Control of the Federal Min-
ing and Smelting Co. was acquired in May, 1905, and of the Utah
Copper Company in November of the same year. In addition to
the Mining interests of the Company, which are operated largely
as a base of supply for its various Smelting Works, it had in
successful operation at the time of its organization the following:
Lead Smelting & Refining Works of the Selby Smelting &
Lead Co., at San Francisco; Lead Smelting & Refining Works of
the Federal Lead Co., at Federal, Ill., and Lead Smelting &
Copper Smelting and Refining Works of the Tacoma Smelting
Co., at Tacoma, Washington.
Capital Stock Authorized and outstanding, $30,000,000 Com-
111 O11. -
Capital Stock Authorized and outstanding, $17,000,000 Pre-
ferred A.
Capital Stock Authorized and outstanding, $30,000,000 Pre-
ferred B.
In April, 1905, the American Smelting & Refining Co. ac-
quired $17,751,000 (a majority) of the Common Stock. Preferred
Stock “B” is unconditionally guaranteed both as to the principal
and dividends by the American Smelting & Refining Company.
American Smelting & Refining Co.
(Moody's Manual, 1908, page 1897.) Incorporated April 4th,
1899, in New Jersey.
“Owns and operates plants for the Smelting of Ores and
the treatment of Lead Bullion, Copper Bullion and Copper Matte
in Montana, Utah, Colorado, Kansas, Nebraska, Illinois, New
Jersey, Mexico, and elsewhere. Bar Gold and Silver, Pig Lead,
Electrolytic Copper and Blue Vitriol are the principal merchant-
able products. The output of Lead and Silver is understood to
be about 85 per cent of the production of the United States.
In April, 1901, acquired the Smelting and Refining business
of various corporations controlled by M. Guggenheim Sons, thus
very largely increasing the size and scope of the Corporation.
The Guggenheim properties included Smelting Plants at Pueblo,
25
Colorado, Monterey and Aguascalientes, Mexico, and Perth Am-
boy, New Jersey. In addition to the properties mentioned above,
the Company owns a controlling interest in the United States
Zinc Company, whose plant is at Pueblo, Colorado, and owns
the entire stock of The American Smelters Steamship Co., which
operates steamers in its interests between New York and other
ports in the United States and Mexico. In April, 1905, acquired
$17,751,000 (a majority) of the Common Stock of the American
Smelters Securities Co., the latter owning a controlling interest
in the Federal Mining and Smelting Co., the Utah Copper Com-
pany.
Since the close of the fiscal year ended April, 1906, the Com-
pany has effected a sale of a portion of the Stock of the United
Lead Company, owned by it. (See National Lead.)
Balance Sheet, American Smelting and Refining Co.:
Assets. 1910. 1911. 1911.
- Apr. 30. Apr. 30. Dec. 31.
Property . . . . . . . . . . . . . . $86,845,671 $75,000,000 $139,963,733
Investments . . . . . . . . . . . 2,058,388 18,086,081 1,585,670
Metals . . . . . . . . . . . . . . . . 18,069,229 17,001,784 26,492,981
Material . . . . . . . . . . . . . . 1,278,098 1,341,497 21,566,873
Net current assets . . . . . . . . . . . . . 1,545,909 . . . . . . . .
Cash and demand loans. 11,620,400 3,915,276 9,082,757
Deferred charges . . . . . . . . . . . . . . . . . . . . . . 704,167
Reserve Fund account. . . . . . . . . . . . . . . . . . . 232,555
Total . . . . . . . . . . . . . $119,871,786 $116,890,547 $185,599,108
Liabilities. 1910. 1911. 1911.
Apr. 30. Apr. 30. Dec. 31.
Capital Stock . . . . . . . . . $100,000,000 $100,000,000 $100,000,000
Deb. Bós. Am. S. S. Co. . . . . . . . . . . . . . . . . 15,000,000
Cap. Stock Am. S. S. Co.
not owned by Am. S.
& R. Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,000,000
Omaha & G. S. Bds. . . . 121,000 . . . . . . . . . . * G - e º s º
Net Current Liabilities. 431,551 3,295,891 8,810,110
Unearned Invst. charges 2,521,688 . . . . . . . . . . . . . . . .
Reserve Funds . . . . . . . . . . . . . . . . 546,903 1,089,272
Profit and Loss. . . . . . . . 16,797,547 13,047,753 13,699,726
Total .............SLI2,871,786 $116,890,547 $185,599.108
26
Federal Mining and Smelting Co.
(Moody's Manual, 1911-1912.)
“The Company acquired all the Mining property formerly
owned by the Empire State Idaho Mining and Development Co.,
The Standard Mining Co., and also the Mammoth Mines in
Idaho and certain Smelting Property at Everett, Washington;
the Smelting property has since been disposed of without loss.
Recently acquired Morning and You Like Group in Hunter Dis-
trict, valued at $3,000,000.
In May, 1905, control of the Company was acquired by the
American Smelters Securities Co., controlled in turn by the
American Smelting and Refining Co. The mining properties
consist of Four Groups of Silver Lead Mines and Claims, situ-
ated in the Coeur D'Alene Mining District, Idaho, as follows:
The Wardner, near Wardner, on the main lines of the Oregon
River & Navigation R. R.; The Mace, located at Mace, Idaho;
The Burke, situated in Burke, Idaho, and The Morning and You
Like Group of Silver Lead Mines, situated near Mullen, on line
of Northern Pacific R. R., seven (7) miles from Wallace, reached
by a short railroad which is the property of the Company. The
Company estimates that its properties contain Silver Lead Ores
Such as is now being mined, as follows:
Wardner Mines—In sight, 200,000 Tons; in reserve more
than 700,000 Tons.
Burke Mines—In sight, 180,000 Tons; in reserve, 3,000,000
Tons.
Mace Mines—In sight, 200,000 Tons; in reserve, 2,000,000
Tons.
Contract:-The Federal Mining & Smelting Co. has entered
into contract with the American Smelting & Refining Co., by
which it is agreed that for a period of six years from September.
1st, 1903, the Federal Company will sell to the Smelting Com-
pany and the Smelting Company agrees to buy its entire output.
This contract has since been extended to September, 1930.
Authorized Capital.—$20,000,000 7% Cumulative Preferred
and $10,000,000 Common.
A majority of Common Stock is owned by the American
Smelters Securities Co. . . . . - - - -
The Preferred Stock has no voting power whatsoever except
g
7
on a vote of stockholders (Common and Preferred) to increase
or to authorize the increase outstanding Preferred Stock.
Outstanding—$12,000,000 Preferred, $6,000,000. Common.
Dividends
- - - . - Preferred Common
Earnings Net, 1904-5. . . . . . . $1,242,688 7% 9
Earnings Net, 1905-6. . . . . . . 2,685,300 7% - 14%
Earnings Net, 1906-7. . . . . . . 2,532,507 7% 18%
Earnings Net, 1907-8. . . . . . . 1,067,037 7% 1%
Earnings Net, 1908-9. . . . . . . 1,185,947 7% * * 1%
Earnings Net, 1909-10. . . . . . 944,706 - 7%
Total Surplus, 1904-5. . . . . . . $484,241 .
Total Surplus, 1909-10. . . . . . 1,015,510
(Metal) Production Years ending Aug. 31. Lead in Tons, Silver
in ozs. -
1904-5 . . . . . . . . . . . . . . . . . . . . . 44,137 2,689,867
1905-6 . . . . . . . . . . . . . . . . . . . . . 63,029 3,920,824
1908-9 . . . . . . . . . . . . . . . . . . . . . . 48,155 2,801,309
Tons of Ore Mined 1906–7 . . . . . . . . . . . . . . . . 888,950
Tons of Ore Mined 1908-9. . . . . . . . . . . . . . . . . 741,650
Metal Contents Lead in Tons, 1906–7. . . . . . . 59,746
Silver in Ozs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,689,298
Among the TDirectors we find the following:
Jos. Clendenin (one of the officers of the United Lead Company).
F. W. Hills (also Assistant Treasurer of the American Smelters
Securities Company). -
T. J. Phillips (the Manager of the Sales Department of th
American Smelting & Refining Co.).
Judd Stewart (also Director in the American Smelting & Re-
fining Company).
Edwin Brush (Vice-President of the American Smelting & Re-
fining Company, Member of the Executive Com-
mittee of the American Smelting & Refining Co.,
Vice President of the American Smelters Securi-
ties Co., Director of the American Smelters &
Securities Co., Director of the National Lead
Company, Director in the United Lead Com-
pany).
Moody’s Manual of 1912 states: “As to the present interest
(if any) of American Smelters Securities Co. in the Federal Min-
ing & Smelting Co., no official information could be obtained by
28.
the Manual.” All information previously given by the Manual is
omitted in that issue.
National Lead Company.
(Moody’s Manual, 1908, Page 2136.)
In 1904 this Company was capitalized as follows:--
Common Stock. . . . $15,000,000
Preferred Stock. ... 15,000,000
$30,000,000
During 1905 the capital was increased
Common . . . . . . . ... . $25,000,000
Preferred Stock. ... 25,000,000
$50,000,000
During 1905 Daniel Guggenheim, Murray Guggenheim and
Edward Brush (all of whom were Directors of The American
Smelting & Refining Company) became members of the Board
of Directors of The National Lead Company, and shortly there-
after the Capitalization was increased to $50,000,000, the in-
crease being largely for the purpose of purchasing the control
of the United Lead Company heretofore held by interests identi-
fied with The American Smelting & Refining Co.
The National Lead Co. was incorporated in New Jersey,
December 7th, 1891.
"The property of the Company consists of White Lead
Works Smelters and Refineries in New York, Pennsylvania, Mis-
Souri, Ohio, Massachusetts, Illinois and other States, and com-
prises 26 Plants. It manufactures White Lead, Oxides and Kin-
dred products, also Castor Oil, Linseed Oil Cake and Meal, and
smelts and refines Lead.” . . . . -
In February, 1907, the Company purchased the Magnus
Metal Company, and for this purpose. Three Million Seven
Hundred and Fifty Thousand Dollars ($3,750,000). Preferred
Stock was issued. - - . . . . . . . .
29.
(Moody's Manual, 1912, Page 2285.)
“In March, 1910, the Company acquired an important inter-
est in the United States Cartridge Co., of Lowell, Mass. (Capital
Stock authorized and issued, $500,000), one of the oldest manu-
facturers of fixed ammunition, and a large consumer of Lead.”
Moody’s Manual (1912, page 2286) gives the following as
companies controlled by National Lead Co.: Magnus Metal Co.,
Incorporated July, 1899, to consolidate The Buffalo Brass Co.,
Brady Metal Co., E. Blunt Manufacturing Co., Fort Pitt Bronze
Co., Stiles Metal Co., United Lead Co., and Chadwick-Boston
Lead Co.
The United Lead Company.
(From Moody's Manual, 1908.)
Incorporated under the Laws of New Jersey in January,
1903, by interests affiliated with the American Smelting & Re-
fining Company, the latter a Guggenheim property; the pur-
pose of the Company being to consolidate the various Lead and
Manufacturing Plants. The following is a complete list of the
Concerns whose plants were originally taken over by the United
Lead Company:
James Robertson Lead Company. . . . . . . . . . . . . . . Baltimore, Md.
Omaha Shot & Lead Company. . . . . . . . . . . . . . . . . . . Omaha, Neb.
Northwestern Shot & Lead Company. . . . . . . . . . . St. Paul, Minn.
Callier Shot Tower Works. . . . . . . . . . . . . . . . . . . . . . St. Louis, Mo.
Bailey & Farrell Shot Works. . . . . . . . . . . . . . . . . . . . Pittsburg, Pa.
Markle Lead Works. . . . . . . . . . . . • - - - - - - - - - - - - - - - St. Louis, Mo.
Gibson & Price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cleveland, Ohio
Le Roy Shot & Lead Works. . . . . . . . . . . . . . . . • * * * * * * * New York
Union Lead & Oil Works. . . . . . . . . . . . . . . . Brooklyn, New York
Sportsmens Shot Works. . . . . . . . . . . . . . . . . . . . . . Cincinnati, Ohio
Chicago Shot Tower Co. . . . . . . . . . . . . . . . . . . . . . . . . Chicago, Ills.
Hoyt Metal Co. . . . . . . . . . . . . . * * * * * * * * * g e º e e g º e º e e St. Louis, Mo.
Tatham & Bros. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . New York
Raymond Lead Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chicago, Ills.
E. W. Blatchford & Co. . . . . . . . . . . . . • * * * * * * * * * * * ... Chicago, Ills.
Thomas W. Sparks. . . . . . . . . . . . . . . . . . . . . . . . . . Philadelphia, Pa.
Chadwick-Boston Lead Works. . . . . . . . . . . . . . . . ... Boston, Mass.
30
Lanston Lead Works. . . . . . . . . . . . . . . . . . . . . . . . . . . Chicago, Ills.
McDougall Whitehead Co. . . . . . . . . . . . . . . . . . . . . . Buffalo. N. Y.
In September, 1904, the Plant & Trade Mark of Tatham
Bros., Philadelphia, was acquired, the consideration being One
million, half Cash, the balance Bonds. - -
Capital Stock. Originally there was Fifteen Million One
Hundred Thousand Dollars Stock, $100,000 of which was 7%
Preferred, but in May, 1903, this was increased to Twenty-five
Million of the last named amount, Ten Million 6% Cumulative
Preferred, balance Common : Bonds, Twelve Million Debenture,
GOld Five. .
BARTON SEWELL, President,
DANIEL GUGGENHEIM,
MORRIS GUGGENHEIM,
T. F. RYAN, -
BARTON SEWELL,
E. W. NASH,
J. D. MORS,
Directors.
Magnus Metal Company.
(Moody’s Manual, 1905.)
Incorporated New Jersey, in 1899, to consolidate the follow-
ing Companies engaged in the Manufacture of Brass and Metal
Goods.
Fort Pitt Bronze Co.,
Stiles Metal Co.,
Buffalo Brass Co.,
Brady Metal Co.,
E. Blunt Manufacturing Co.,
The Hewitt Mfg. Co., Chicago, Ill.
In 1907 they took Gerdes Bros., Pittsburg, the Atcheson
Lead Co. of Runkuch, The Lead Pipe Manufacturing Depart-
ment of the Standard Sanitary Co., and The Nevin White Lead
Works, Pittsburgh, Pa. . . ... -
31.
LEAD–HOW THE SUPPLY IS CONTROLLED.
Reports from Eastern financial centers carry assurance that
the American Smelting & Refining Company, which has held the
metal producer by the throat for so long, will at last be called
upon to meet real competition supplied by a rival strong in the
possession of unlimited resources and whose position will be
rendered all the more impregnable by the bitter animosity which
has been engendered by the high-handed treatment accorded the
producer in the past. - -
Competition is the life of trade and lack of competition has
undoubtedly been the financial death of many a worthy producer
who has spent his time and money in mining development only
to be put out of business by an inordinate greed and lack of de-
cent treatment which has made the name of the Guggenheims
execrated from one end of the Western producing States to the
other. -
The recent announcements are fraught with more than ordi-
nary interest to the Southwest owing to the fact that the plans
of the rival company include the building of its initial plant in
Utah at a point which will ensure competition for the ores of
Nevada, Arizona and the southeastern portion of California.
This, however, is but the nucleus of a system of reduction works
which will enter into direct competition with the Guggenheims
in all parts of the country and, if present plans are adhered to,
there is little question that the burdens of the producer in all
parts of the West will be rendered much lighter.
Those who remember the conditions which existed prior to
the formation of the present smelting trust will not need to be
reminded that the producer was, to some extent, his own master
in those days—and that, in spite of the arguments of the trust
representative that amalgamation has resulted in decrease of ex-
pense of operation and a consequent resultant benefit to the pro-
ducer. The smelting trust has enjoyed a practical monopoly of
the business for many years and has signally failed to win the
confidence of the producer upon whom it depends for existence.
It is a subject for deep congratulation that the days of monopoly
seem to have passed and that the producer will at last come into
at least a portion of his own. -
–American Mining Review, Los Angeles, Cal—Ed.
LEAD.
Eight Pounds of It Used Annually by Each of the Eighty Million
People of the United States.
A recent brief submitted to the Ways and Means Committee
Of the House of Representatives showed to a greater degree than
most people realize how much lead enters into the every-day life
of the present age. -
Of course, everyone is familiar with the fact that the best
paints (whether used for buildings, exterior or interior, railroad
cars or carriages, signs or the masterpieces of art) are those made
from lead, and that way back to the Biblical times lead was con-
sidered the ideal conveyor of drinking water. Almost from the
inception of plumbing lead has been used for that purpose. How
Often has thought been given to the fact that it is the presence
Of lead in solder that has made possible the large canning indus-
try? That it is the lead in type, monotype, electrotype and
Stereotype metal that has made possible the enormous amount
of printing that is done in this country? For lead is the basis
of every one of these metals. All fire insurance underwriters
favor the metal roof, and the chief metal for this purpose is terne
metal, commonly called “tin plate.” This plate is a thin sheet
of iron or steel, coated with a mixture of lead and tin, the mix-
ture being commonly of the proportion of seventy-six per cent
of lead and twenty-four per cent of tin. The balance on the
dumbwaiter is made of lead. The growth of the use of the tele-
phone at the start was retarded by the escape and the crossing
of currents. This has been overcome by the use of lead covered
cables. Our gas pipes in our houses are tightened with litharge
or red lead, which is simply oxidized lead. The enamelled tubs,
lavatories, signs and pretty nearly all enamelled goods have a
large percentage of lead in the enamel. Our metal beds are put
together and weighted down with lead. When you play the
piano, the weight that brings the keys back to the original posi-
tion is made of lead. No fancy glass window or sign can be
made without the use of strips of lead called “cames.” The man
or officer who carries for the protection of life and property a
weapon depends upon lead in the cartridges. The sportsman
who shoots either for pleasure or for the purpose of supplying
the market with game uses for his missiles lead. All tea that
comes to the market has tea boxes lined with lead rolled into
33
thin sheets and covered with paper Very nearly every bottle
that comes into the market has a foil top, the chief ingredient of
which is lead. Most of the small cheeses, chewing gums, smok-
ing tobacco, and many other articles of daily consumption are
put up in foil the chief ingredient of which is lead. When we
have a sprain we bathe it with sugar of lead. Radium can only
be handled successfully in lead, the one shield impervious to the
X-ray is lead. Many of the toys that children play with are only
obtainable at reasonable prices through the use of lead, and this
particularly applies to modern mechanical toys. Many beautiful
silver plated articles of table service, for toilet use, desk ac-
cessories, handles for canes and umbrellas have for their base
lead.
All machinery bearings are lined with what is known as anti-
friction or babbitt metal, and the material principally used in the
composition of these metals is lead. Every railroad car and
engine has the bearing box in which the axles rest lined with a
bearing metal of which the chief ingredient is lead. The under-
ground electrical trolley lines are only made possible by the use
of 1ead. The utilization of the water power of the streams of
the country at long distances from the streams has only been
made possible by cables covered with lead. The tremendous gas,
water and sewer mains running through our cities are jointed
together by means of caulking with lead. The innumerable cars
for the transportation of freight are sealed with lead. Our sail
boats have lead for ballast. The dies which are used for stamp-
ing many articles of brass and other ornamental sheet metals are
generally composed of lead. Acids that we use are made in
chambers of or casks lined with lead. Nearly all the essential
oils come in flasks made either of lead or a composition of tin
and lead. In masonry, every arch has a wedge of lead. In order
to make anything of tin plate, galvanized iron, or to put on a
roof of terne plate, or to cover a roof, necessitates the use of
solder, and all solder contains at least one-half, and generally a
larger proportion of lead. In fact, to join almost any two articles
together, solder must be used, and such use means the use of
lead. Our big defense guns in the forts of the country are
weighted down with lead. * -
To name all of the uses of lead would fill too many columns,
but from the examples given it is easy to realize what a great
part lead plays in our every day lives, and what an incentive there
is for an organization to get the entire control of lead.
34
The control of lead in this country practically rests in one
company, known as the American Smelting & Refining Company,
which alone controls, either through ownership or long-time
contracts for their output, a great part of the lead mines in this
country, and the smelting of pretty nearly all of the ores, and
also through companies in which the directors of the American
Smelting & Refining Company are also directors, and thus are
clearly proven affiliated, if not subsidiary companies, controls
Over sixty-five per cent of the articles made from lead, or com-
positions of which lead is the principal part. These affiliated
companies not alone make enormous profits through the mining,
smelting and refining of lead, but are practically granted a sub-
sidy and monopoly by the present tariff.
Lead in Europe is at present selling at about 2% cents per
pound, and the duty is 2% cents per pound, which in round
figures is about 78 per cent ad valorem. Further, the Govern-
ment’s own statistics clearly show that no pig lead has been im-
ported into this country for years except for the purpose of being
re-exported in manufactured form, thus having the duty rebated
thereon. Lead, therefore, is not and has not been a source of
any revenue to this Government. In other words, the prohibitive
duty on lead has been maintained since 1897 simply for the
benefit of the Lead Trust, thereby making every one of us pay
tribute to that trust. . . . . .
Neither the mining of lead nor the smelting and refining
thereof are infant industries in any sense of the term. The
present duty on lead is prohibitive, and brings no adequate reve-
nue to the Government, but has produced a practical monopoly,
benefiting very few interests, and imposing an unjust and bur-
densome tax upon every class of consumers. It is not alone the
burden imposed upon the consurners by the extravagant profits
of such interests, but equally the financial power with which
such profits endow those in control, and the monopoly of a vast
industry which is being rapidly acquired through the misapplied
“benefits” of a prohibitory: tariff, that has caused the outcry
against the maintenance of any such conditions in the tariff bill
now being in the making. It is conditions such as these that
have caused the feeling of dissatisfaction with the Dingley tariff,
but whether the new bill will rectify these conditions depends
upon how plainly the people of this country let their representa-
tives understand how they, the people, feel in the matter.
35
LEAD TARIFF.
In another column of this issue will be found extracts from
a brief recently submitted to the Committee on Ways and Means
of the House of Representatives on behalf of the independent
lead producers of the United States and in which excellent
reasons are given for a reduction of the tariff which has existed
for the past twelve years. -
The subject is undoubtedly an intricate one and one which
can only be intelligently treated in extenso by those who have
made it a close study, and yet the brief presented by the inde-
pendents will supply food for very sericus thought for those who
are apt to think for themselves. It is accompanied, in the orig-
inal, with statistics of undoubted authenticity and by which it
is proved that the benefits of protection have gone into the
pockets of the smelter trust and not to the advantage of the pro-
ducer himself. - . .
There is little question that the Guggenheim corporation is
most vitally interested in the retention of the present high tariff,
and it is not surprising, therefore, that it has done, and is still
doing, all that lies in its power to stifle the agitation for a reduc-
tion of the existing rates. Producers of the Coeur d’Alene dis-
trict have sent a committee to Washington to argue against a
disturbance of the present rates, but the strength of its case is
seriously impaired in the eyes of those who know that the Gug-
genheims control the major portion of the output of that district.
Through its subsidiary corporation, the Federal Mining & Smelt-
ing Company, it controls reserves of more than 5,500,000 tons,
and it can therefore be understood that the retention of high
tariff rates is worth some effort. With a capital of $20,000,000
seven per cent cumulative preferred and $10,000,000 common
stock, this company managed, in the year 1906-7, to take care of
its preferred stock interest charges and declare dividends equal
to 18% per cent upon the outstanding common stock.
There is, therefore, every reason why the Guggenheims
should take keen interest in the matter, entirely apart from the
patriotic motives which they assume. There appears, however,
little reason why the ordinary producer should not be just as
well off with a lower tariff. The benefits of the present protec-
tion now find their way into the pockets of the trust, pockets
already bulging to the bursting point. Protection has protected
$500,000,000 into the pockets of a Carnegie and it has protected
36
a Guggenheim into the United States Senate. It looks as if the
basic reason for high tariff had failed and that the many are con-
sistently robbed to enrich the lucky few.—American Mining Re-
view. -
LOS Angeles, Cal, Feb. 6, 1909.
. . THE ILLEGITIMATE CHILD OF THE TARIFF.
(Speech of Hon. Breck Perkins, of New York, delivered in the
t ". House of Representatives—April, 1906.)
Mr. Chairman, a person who ventures to speak in the com-
parative solitude of Saturday afternoon I think is entitled to one
privilege which I shall ask, and that is that the few who are here
will kindly keep quiet. . . . . . . . . . . .
Mr. Chairman, in view of the statement recently niade by
the leader of the Republican side that no revision of the tariff
would be allowed at this session, it might seem superfluous for a
Republican to debate further this question; but the distinguished
leader of the Republican party, though he has said that we can-
not vote, has not said that we cannot speak. (Applause.)
. There are those who really believe, and I am one of them,
that the tariff ought to be reformed by its friends. We not only
say we believe it, but we do believe it, and we know it needs no
prophet to say that if it is not reformed by its friends it will be
Sooner or later, and perchance sooner, be modified by those who,
in my judgment, will bring to it neither the same kindly feeling
nor the same degree of intelligence to deal with the question. It
is not the first time, in the world’s history that it has been sol-
emnly announced that present conditions should remain un-
changed, and it will not be the first time in the world’s history
that such solemn resolutions have come to naught. So I purpose
to-day not to discuss the tariff in any detail, but to call attention
to one schedule which I have had occasion to examine. It is a
schedule where it can be easily seen what effect it has produced
upon prices. It can be easily seen who has got the benefit of
the change in prices, and who have paid the additional price.
Whether those results are desirable it is for this House and those
whom they represent, to say. Doubtless they are desirable to
those who reap the benefit, and how far they may influence others
we shall see. ... : . . . . . . " -
T will say, in passing, that I am by no means one of those
37
who occupy time in denouncing what are called the trusts. The
great business combinations in this country are to a large extent
the result of the operation of natural economic laws. If any man
Or any corporation can in conformity with economic laws accu-
mulate millions or hundreds of millions, I know no reason why
the Government should interfere, and certainly I would be one
of the last to rail at the results. But, Mr. Chairman, what I
wish to present this afternoon is a somewhat different question
—not, Shall the Government interfere and seek to dissolve any
great combination of business interests that it may find 2 but,
Shall the Government allow, by the operation of a law which it
enacts, the building up of such a combination and the creation
of enormous amounts of wealth which rests, and rests alone,
upon the positive legislation of the Government?
Mr. Chairman, the article of lead is one of universal use. It
is used by the rich and it is used by the poor. Lead is used in
enormous quantities, for instance, by the great corporations that
manufacture telephonic apparatus. It is used in enormous quan-
tities by other great manufacturers, and it is used by the poor
man who puts a sink in his kitchen and has a lead pipe to assist
in carrying off the water. So there we strike something of uni-
versal use. Used as it is by all, any increase in the price of lead
must be paid by all of this multiplicity of users. If the price
of a pound of lead is 5 cents instead of 3 cents, it is evident to
every one that that additional price is paid by all the people of
all sorts and kinds who either in private life or business com-
bination have occasion to use lead. So I think that all will agree
that any increase in the price of this article falls upon the entire
community. If it falls upon a manufacturer it has one of two
results. Either it lessens his profits or else it compels him to
enhance the price of his goods, and that is paid by the consumer.
If it falls upon the small consumer, of course he pays it himself,
and therefore we may fairly say that the price of such an article
as that should not be enhanced by the Government unless there
are persons especially entitled to the Government’s aid.
The next question that we come to is, Who reaps the bene-
fit; who has derived the benefit of the duty which has been im-
posed upon lead ore and pig lead 2 Without at all wishing to
join those who are vociferous in their attacks upon trusts, ...I
would commend to the eloquence of any gentleman who desires
to make that an object, as a most excellent example of what is
claimed by them to be an evil, the American Smelting Company.
38
I have taken the pains to have prepared statistics in reference
to the company, and the organization created by it, and which
form a portion of it, which I shall very briefly state to the House,
as the figures which I have thus collected are necessary in order
to reach the conclusion which I shall seek to establish.
The American Smelting Company was organized in 1899,
very shortly after the passage of the Dingley bill. It was made
up by a combination of smaller companies, and was organized
with a capital of $65,000,000, one-half preferred at 7 per cent.
and one-half common stock, which was afterwards increased to
$100,000,000, one-half preferred and one-half common. Out of
that hardy tree has grown a considerable number of vigorous
offspring. There have been since organized and are owned or
controlled by that corporation, first, the Federal Mining Com-
pany, with a capital of $30,000,000, $20,000,000 preferred and
$10,000,00 common stock; next the American Smelters' Securi-
ties Company, with a capital of $77,000,000, $47,000,000 preferred
and $30,000,000 common stock; last, the United Lead Company,
with a capital stock of $25,000,000, $10,000,000 preferred and
$15,000,000 common stock. -
In reference to all these corporations we may safely say
that the preferred stock that was issued not only represented
the original cost of all the smaller or subsidiary companies which
were taken into it but more than that. It represented a valua-
tion placed upon them higher than had ever been placed until
this combination was made feasible, and I think we can Say with-
out the least danger of contradiction that the common stock of
these various corporations represented not one dollar of prop-
erty, but only the hope of a profit that would be made as a result
of the combination. There is in this company more than $100,-
000,000 of common stock, and it is safe to sav flat every dollan
of that is pure water requiring no filter; unadulterated by one
dollar's worth of actual property going into the corporation
above the preferred stock. Now, it is apparent that if a com-
bination such as that can be made, and it is possible to create
$100,000,000 of common stock based upon the hope of future
profits, and if actual value can be projected into it, and the $100,-
000,000. more or less, thus issued can be rendered of large value,
there is a possibility of the accumulation of the enormous for-
tunes which do undoubtedly at times stagger our minds in these
present days of American development.
We now come to the effect of the duty. There is a duty im-
39
posed by the Dingley bill on lead ore of 1% cents per pound.
The duty on pig lead is 2% cents per pound. The American
Smelting Company, I believe, claims not to own the actual min-
ing companies, which dig up the ore, but it controls them ; it is
the only person that, buys from them ; it is the only person
that smelts their goods; it is the only person from which their
goods can be bought, so it has control of that portion of the lead
production of the United States of which it has obtained con-
trol. Now, we have its own reports, Mr. Chairman, because
the figures I have given are not obtained from loose talk, but
are based upon the official report and statistics furnished in
every case. In 1903 the American Smelting Company, according
to its own report, controlled 85 per cent of the lead production
of the United States. At the present time it undoubtedly con-
trols because it has added somewhat since then, 90 per cent. So
of the lead sold in the United States 90 per cent, is sold by the
American Smelting Company. In other words, it has practical
control of the market. Now, let us see what effect that has
produced upon the price. In 1896 the price of pig lead in New
York was 3 cents per pound. In 1899, the American Smelting
Company was organized, the Dingley bill, had been passed, and
the price of lead was raised by it in the year 1899 to 4% cents
per pound. . There is a very interesting feature that one study-
ing the effect of tariff laws can easily ascertain. The difference
between the price of a foreign commodity and the price at which
it is sold in this country will not be equal to the amount of the
tariff ordinarily so long as there is still competition in the busi-
ness. In other words, though there may be a tariff of 2 cents
a pound on lead, yet if there are a number of different competi-
tors each one endeavoring to cut down under its adversary,
ordinarily the price in this country is not raised to the full
amount of the tariff duty. - - . . . . . . -
But when some offe corporation or combination obtains
practical control of the entire market it does what anyone would
do ; it raises the price to the full limit covered by the difference
in the tariff. And so we find, coming down to January, 1906,
that the price of pig lead sold in London was 3.65 cents, per
pound; that the price of pig lead sold in New York City was 5.6
cents per pound. In other words, allowing for the small fraction
of a cent that the lead would cost to be sent from London to
New York, the price that is now asked on lead, which is paid
by every man in the United States, from the largest manufac-
41)
turer to the smallest mechanic who builds a house or puts in a
sink, is increased about 2 cents a pound. Who gets the benefit?
The American Smelting Company, controlling 90 per cent of
the product sold in 1903—about 485,000,000 pounds. Its sales
at the present time are at least 500,000,000 pounds. Assuming
that it is only charging the difference of the tariff on lead ore,
that amounts annually to seven and a half million dollars. If
they get 2 cents, the amount that is allowed on pig lead, it
would amount to about $10,000,000. Let us take the lowest
amotint and we have an enhanced price for the lead sold by the
American Smelting Company, according to its official report, of
at least seven and a half million dollars. .
There can be no dispute, Mr. Chairmar, that this is made
possible by the duty. In the absence of that people would buy
lead in London and have it sent to this country. But we can
come nearer. In the city of Toronto, just on the other side of
the line, lead is purchased by manufacturers for from 2 to 2%
cents less than it is purchased by manufacturers in the same
business that live in the cities of Buffalo, Rochester and Syra-
cuse. Without the duty the Canadian market, like any other for-
eign market, would be open to them. - -
Is the price, the enhanced price of 5.6 for which pig lead is
now sold in the city of New York, necessary in order to cover
the enhanced cost of lead in this country P. In other words, if
lead can be sold at London at 3.65 cents and can be sold at
Toronto at the same price, is it necessary to have a duty of 2
cents in order to cover the enhanced cost of getting out the lead
in this country P ... •
To that, Mr. Chairman, there are two answers. In the first
place, I do not believe there is a man in this House or out of this
House who believes that with the richness of American mines,
with the facilities of American machinery, with the enterprise
of American operators, lead ore can not be produced in the
United States as cheaply as it can in any other part of the world.
I believe it can be produced more cheaply here. (Applause.)
But there is another answer, Mr. Chairman. We have seen
these corporations organized with, I will say, preferred capitaliza-
tion of, roughly, $100,000,000 that represented, doubtless at a very
liberal valuation, the cost of the various plants the capital that
had gone into mines and smelters. Certainly they were entitled
to a fair profit on that, and if it was necessary to have a duty
upon lead, pig lead, or lead ore to enable those engaged in that
4
business to obtain a fair profit, I for one would be entirely will-
ing to support such a measure. But the report of the smelting
company shows a profit, a net profit, for the last year of $9,000,-
000. Its report and that of the other subsidiary companies show
that if the $7,500,000 additional cost of lead sold by this company
had not been obtained; in other words, if the profits had been
$7,500,000 less, it would have made enough to pay liberal divi-
dends upon every dollar of the preferred stock of these various
corporations. In other words, the enhanced price of lead has
furnished the possibility of paying dividends upon $100,000,000
Of common stock.
The $7,000,000 which it is estimated the American Smelting
Company and its subsidiary companies made by reason of this
tax pays itself a dividend of 7 per cent. on a hundred million
dollars. In other words, as the result of this specific schedule
On lead—and here I come up to the precise question—it is pos-
sible to give value to a hundred millions of stock that repre-
Sented nothing but the paper upon which it was printed, and the
increased price of lead which has made this profit possible has
been paid by every man that in the United States uses lead. Is
a Schedule to be forever retained that makes possible the creation
Of imaginary property and yields a profit on it, a profit which
is paid by those who certainly are quite as much entitled to the
benefit of the Government’s friendly hand? Take the American
Smelting Company. Its common stock when first issued rep-
resented no property. Some was sold early in its history at 20,
30 and 40, and that was clear profit. The subsidiary companies
received preferred stock for their property and a vast amount of
common stock as bonus, and the man who sold this and got 30 or
40 cents on the dollar did well. -
But the most sagacious man who held on did better, because
as a result of the enhanced price which the American Smelting
Company, controlling 90 per cent. has been able to fix upon lead,
all this stock has become valuable. It pays dividends. The last
report of the smelting company showed that on its $50,000,000
Of common stock it had earned 11 per cent. It is not necessary
to trouble this House with the earnings of the other subsidiary
companies. The common stock of the smelting company, which
sold at first for 30 or 40, now sells at 160 to 170, and its friends
say that there is yet before it a great future. The common stock
of the Federal Mining Company has not advanced so much, but
it has advanced over 75 points.
42
In other words, if the figures that I have submitted are cor-
rect, the common stock of these various corporations is now
worth at a present valuation justified by their earnings, at least
$150,000,000. That is what it would sell for roughly, to-day.
That is what it is worth to-day judged by the earnings it makes
and the returns it is enabled to pay.
Mr. GILLESPIE : Mr. Chairman, will the gentleman yield?
Mr. PERKINS: Yes.
Mr. GILLESPIE: I should like to know the gentleman's
opinion whether from his investigation of that concern it does
not exist in violation of the Sherman anti-trust law.
Mr. PERKINS: I do not know anything about that. I
have not investigated that question at all. In these remarks,
Mr. Chairman, I have wished only to call the attention of the
House, and possibly the attention of some of those outside of the
House who may sometimes read what is here said, to some prac-
tical phases of certain schedules of the tariff. It is to be consid-
ered whether if there are schedules which when exposed to public
attention will, as it seems to me, excite public animadversion, it
is wise to say that for all time the consideration even of an item
like this shall be closed to the House of Representatives. I
should be loth to say, Mr. Chairman, that the tariff is the mother
of trusts; but sometimes we do see an illegitimate child, a misbe-
gotten monster, that does look as if it owed to the tariff its exist-
ence and its growth. (Applause.)
*
WILLIAM LANY ON ON MISSOURI LEAD AND ZINC
MINING PROFITS.
*-*.
ST. LOUIS, Feb. 16, 1909–A special to The New York
Journal of Commerce reads: “The newspapers have had much
to say about the duty on zinc ore, but, to my notion, the sub-
ject has not been intelligently discussed because the writers are
not familiar with the subject, or, perhaps, had an ax to grind.”
That is the way William Lanyon started a discussion yes-
terday. Mr. Lanyon has been engaged in the manufacture of
zinc, and is intimately informed as to all condiitons of the busi-
ness for upward of thirty years. He said further:
43
“It seems the usual method to attempt to throw dust in the
eyes of the public by using the laboring men and their wages as
an argument. This has been diligently used of late. As a mat-
ter of fact, the tariff on zinc ore cuts no figure as regards the
wages paid by the operators of mines in Joplin and other similar
districts, because they have never paid any more wages than
they are obliged to and never will.
“Take, for instance, the matter of copper produced at mines
in Montana, Arizona and throughout the West. The wages paid
there to employees have for years and do now average from 40
to 50 per cent higher than in the Joplin district, and yet copper
ores and copper metal have been on the ‘free list' for some time.
The wages of the Joplin miners, I think, have not varied more
than 25 cents to 50 cents per day in the past ten years. The
men have been getting a comparatively small advance in their
wages the last few years compared to the time previous to the
year 1900, although zinc ore has averaged almost double in price.
The zinc ore market may go up or down $10 or more per ton
without the miner knowing the difference, so far as his wage is
concerned. - -
Land Owners’ Agitation.
“This whole agitation emanates from the land owners and
their lessors, the mine operators, for the purpose of increasing
their income and profits. The land owner gets a royalty out of
ore produced and has no risk or expense. With ore at $40 a ton,
his income is double in comparison with ore at $20 a ton. The
lessors, who are operators of the mines, are, in the main, com-
panies which were formed since 1898, and are grossly overcapi-
talized. These companies were formed for the purchase of pro-
ducing mines from the original discoverers and operators at what
appeared even to the vendors fabulous prices. The price paid
appeared cheap to the promoters, or at any rate, they, in turn,
doubled or even more grossly watered the values and then ad-
vertised their stocks to pay 1 per cent, per month, and probably
in most cases disposed of it on that basis. -
“Hence, the bane of the ore producers' business is that with
which the commercial world generally to-day is suffering—the
watering of values and gross Overcapitalization. -
4 4
High Hand at Joplin.
“For the last ten years the average price of 60 per cent. zinc
ore at Joplin has been at least $40 per ton. For ten years prior
to that date the average price did not exceed $20 per ton. It is
clearly to be seen that the increased capitalization involved the
necessity of getting a higher price, and this was achieved mainly
by combination, or ‘community of interest' of these concerns.
For a number of years they carried things in Joplin with a high
hand, forcing the price of zinc ore at times as high as $55 per
ton. When the price fell they would shut down their mines for
weeks at a time, leaving their men idle and without any remu-
neration during such periods. They also combined to export a
portion of their output at extremely low prices, compared with
what they were demanding from the American smelters for the
same, all with the object of forcing a high price for the bulk
of their output.
“At numerous times during the last ten years the price of
zinc ore was thus carried to such a ridiculously high figure that
there was a loss for the smelting works in handling it. The
Smélters found it impossible to procure a price for the zinc metal
commensurate with the price of ore plus the smelting cost.
Many furnaces were obliged at times to shut down on this ac-
count. This naturally forced some of the Western smelters to
seek another Supply, if possible, and considerable zinc ore, al-
though of much lower grade than the Joplin product, was pro-
cured from Colorado and New Mexico, and later from Old Mex-
ico, with a very small quantity from Canada . -
Mexican Position.
“The zinc ore from Old Mexico being almost entirely of the
non-Sulphide variety, was usable only by a few of the smelters,
as the largest and greater number of the smelters required sul-
phide ores and were still compelled to get this from the Joplin
and Wisconsin districts. The Mexico ores are a very low grade,
containing Only from 30 to 45 per cent. of zinc metal, whereas
the Joplin product averages close to 60 per cent., and with spel-
ter (zinc) at below 5 cents per pound, it is scarcely feasible to
import these ores. The high rate of freight and low zinc con-
tents would cut the price of the ore to below the cost of the
product even in Old Mexico.
“Just now the Joplin operators are trying to convince the
people that the recent decision of the United States court defi-
nitely construing the tariff as ‘duty free’ on zinc ores has been
the cause of the recent drop in price of their product from about
$42 to $38 per ton. Such is not the case, as there is no more *
Mexico ore being brought in than usual. -
Supply and Demand.
“The real cause of the drop in the price of ore is ‘supply and
demand.’ Demand for the metal has recently fallen off very
abruptly, and the price consequently is declining. This apparent-
ently is the case with lead, copper and most other metals at the
present time. But with zinc ore at $38 per ton, what have they
to complain of, when only a few years ago $30 per ton would
have been a pipe dream’?
“The ministers of the gospel in the Joplin district who re-
cently prayed to the Almighty for an enactment of tariff on zinc
ore, perhaps do not realize that they have made themselves the
laughing stock of at least all the rest of the country outside of
the Joplin district. The fact is, they were apparently too ignor-
ant to know that they were simply playing into the hands of the
wealthy mine operators and land owners, because these are the
ones who would reap the benefit of any such an enactment, and
the laboring men would never know the difference. -
“Now, I am a Republican, but not a ‘standpatter.” The last
Republican platform demands tariff revision, and Mr. Taft and
the most of us recognize this to mean downward, of course, and
not upward. If the days of capitalization of the tariff in this
country have not passed, then it is time they had, and it must
come beyond question in the future. If the Republican party
doesn’t see this light dawning, the independent vote may force
it to step down and out.
The Tariff on Spelter and Lead.
“Tariff on spelter is $1.50 per hundred pounds, and on sheet
zinc it is $2 per hundred pounds. . These figures should be re-
duced to not exceed 75 cents per hundred on the former and $1
per hundred on the latter. This is ample protection, and in case
of an attempt to overdo the price in this country by speculation,
it would at times let some metal in from abroad for the relief of
46
the market. This same policy should govern with regard to
lead. The duty on pig lead is 2% cents per pound. This should
be reduced to 3/4 cent per pound, because the total cost of smelt-
ing a ton of pig lead does not exceed $5 per ton, or 25 cents per
hundred pounds. With a duty of double the total smelting cost,
is it not easily seen that the protection is ample?
“Pig 1ead to-day is quoted in London at about $2.85 per
hundred pounds, and although the market here has declined
recently from $4.50 per hundred, it is still quoted at $4 per hun-
dred pounds. Why should lead be so much lower in London
than in this country? The reason is because the output in this
country is controlled by one or two concerns, principally by one
concern, and very naturally they will get as close to the foreign
price with duty added as they can. The concern I refer to has
$50,000,000 of common stock, all of which is water and on which
it is endeavoring to pay 8 per cent. dividends. It manages to do
this partly by manipulating the metal market, putting the price
down during dull times in which to buy ore, and then during
better times putting the market way up and unloading it on the
public, thus making not only a manufacturer’s profit, but a huge
speculative profit; working the miners who produce the ore on
one side during one season and the public, who consume the
goods, on the other side during the other season. All this they
are enabled to do by the tariff duty.
“The lead sold in London is largely produced in Australia,
Canada and other places where labor is paid fully as high as it
is by the concerns in this country. -
“It is certainly time for the American public to wake up to
the fact that it is being continually ‘buncoed' by concerns using
the tariff as their shield in their operations. We hear a great deal
about the consolidation of industries into new companies for
the purpose of reducing expense of operation and to cheapen the
price of the output to the public, but we know what the result
usually is. They probably economize on their management all
right, but take advantage of their power to boost the prices of
their products materially above the prices previously current
when the business was subject to the natural competition of the
concerns which they combined.
“I notice references to the ‘Smelters Trust.’ By this, of
course, is meant a trust or combination existing among the smel-
ters of zinc ore. The fact is, there is no such a trust or combi-
nation, and never has been in the zinc-smelting industry. There
47
is probably no other considerable industry in this country that
has been operated and is to-day operated by the separate con-
cerns entirety independent of and thoroughly in competition with
each other, as is the case of the zinc-smelting industry.”
New York, January 22, 1909.
Dear Sir :
In reply to your inquiry as to the effect of the American
duty on 1ead ores produced in Mexico, I desire to say that the
duty at present is prohibitive. It is doubtful if any lead ores
could be imported from Mexico with the duty even as low as one
cent a pound on lead in ores.
- There's not a mine in Mexico worked for lead alone. The
lead produced there is in the nature of a by-product in the min-
ing of silver and gold. Furthermore, many of these mines could
not be worked at a profit were it not for the fact that the ores
they produce are necessary fluxes in the smelting of high grade
silicious ores. By high grade silicious ores I mean ores carrying
high values in silver or gold but with very little or no lead in
their composition. As you probably know, in order to smelt ores
economically, a certain mixture of silica, iron and lime is neces-
sary in the furnace, and a certain percentage of lead to collect
the precious metals. Mexican lead ores of a silicious character
are usually sulphides and are concentrated before shipment to
the smelters, but a large quantity of lead ores, notably those pro-
duced in the camps near the cities of Chihuahua, Monterey,
Mapimi, etc., are what are known as basic ores, i. e., ores con-
taining a large percentage of iron and lime, with low percentages
of silica. These ores are commonly low grade in silver but com-
paratively high in lead and are used as fluxes for the high grade
silver ores. * - º
The difference in the cost of production of lead ores in Mex-
ico as compared with the cost of production in the United States
would be hard to fix, as the conditions vary so much in the vari-
ous camps. American labor is fully a hundred per cent. better
than Mexican labor. While the Mexican is paid a much lower
wage than the American miner, the higher cost of fuel, machin-
ery, general expenses and maintenance, with the low efficiency
of the Mexican labor, largely offset any advantage that Mexican
production of ores may have over the American production,
through the nominally lower wages of the miner.
48
The general custom of the smelters in the United States who
smelt in bond, has been to export the desilverized lead when the
price in the United States less the duty is lower than the Euro-
pean price for the metal. When the American price advances to
a point that the duty can be paid and the metal sold in the
United States, no lead is exported.
Most of the Mexican lead-producing mines are situated at
some distance from the seaboard, six hundred to eight hundred
miles usually. The freight rates in Mexico by rail are about the
same, mile per ton, as they are in the United States. The shorter
haul to the seaboard gives the Mexican production some advan-
tage over the mines of Colorado and Utah. I am not familiar
with the rates from Utah and Colorado to the seaboard, but I
take it that there is little difference.
On the other hand, coke, coal and supplies of all sorts used
in mining and in reduction of ores, are very much higher in
Mexico and of inferior quality usually to those obtainable in the
United States.
The principal effect of the levying of the American duty on
lead in ores has been to build up the smelters of Mexico. With-
out a duty on lead in ores the tendency in Mexico would be to
revert to the former plan of shipping these ores to the United
States for reduction, where they are badly needed as fluxes for
many of the American silicious ores. The building of large
smelting plants in Mexico is of comparatively recent origin and
due almost directly to the levying of the American duty on Mex-
ican ores. While this duty may benefit a small number of lead
mine owners in the United States, it is on the whole detrimental
to the American mining industry, as it enables the smelting com-
panies to levy a higher rate for smelting dry ores, that is, ores
without lead, than they would be able to enforce were it pos-
sible to import lead fluxing ores from Mexico without a prac-
tically prohibitive duty. -
If my humble opinion was of any value to you, I would say
that it would be of great benefit to the American business men
generally to cut out the duty entirely on Mexican lead ores, fos-
tering the relations between the two countries and enabling the
American manufactories to ship manufactured lead products to
Mexico in return for the lead ores shipped to the United States
for reduction. There are no manufactories in Mexico for lead
products and our manufactories could well fill that field if they
49
were able to reduce in the United States Mexican lead ores, re-
turning manufactured products, to Mexico.
Very truly yours,
BRITTON DAVIS.
AMERICAN SMELTING AND REFINING COMPANY.,
165 Broadway.
New York, February 8, 1909.
To the Stockholders:
I take pleasure in enclosing copy of Assets and Liabilities
of the Company as of October 31st, 1908, and copy of Profit and
LOSS Statement as of the same date, showing earnings for the
first six months of the present fiscal year, which are in excess
of 8 per cent. per annum on the common stock!
The business and earnings of the Company declined from
the beginning to the end of the fiscal year ending April 30th,
1908. Since the beginning of the present fiscal year, however,
the earnings have been gradually improving month by month.
The Company has not, in the past, issued reports to the
stockholders with reference to the business of the Company oft-
ener than at each annual meeting, principally for the reason
that it is both difficult and expensive to accurately cut off the
business of the Company oftener than once a year, on account
of the large value of precious metals in process of smelting and
refining. Your Board of Directors believe, however, that the
desire of the stockholders for accurate reports as to operations
and profits of the Company as often as is practicable is war-
ranted. } -
DANIEL GUGGENHEIM,
President.
, PROFITAND LOSS STATEMENT.
Fór the Six' Months Ending October 31, 1908.
; º *
} J T. j. x , t , -" " -
y
wº-
• * - . . . e … . ; - . . . , Y * * - i. • J. * . . . .
Net Eagnings frpm Qperations. . . . . . . . . . . . . . . . . . $3,917,683.55
Constructigº,and, Improvements. . . . . . . . . . . . . . . . .73922 82
$3.841,760 78
Dividends:
Preferred, 3% per cent. . . . . . . . . . . $1,750,000 00
Common, 2 per cent. . . . . . . . . . . . 1,000,000 00
2,750,000 00
Net Surplus to Profit and Loss. . . . . . . . . . $1,091,760 73
STATEMENT OF ASSETS AND LIABILITIES.
October 31, 1908.
ASSETS.
Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $86,845,670 51
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,858,616 95
Metals (Refined Values) . . . . . . . . . . . . . . . . . . . . . . 18,218,784 68
Material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,249,561 01
Cash and Demand Loans. . . . . . . . . . . . . . . . . .. . . . . 8,629,550 45
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . $117.802.183 60
LIABILITIES.
Capital Stock....... . . . . . . . . . . . . . . . .... . . . . . . . .3100,000,000 00
Bonds (Omaha & Grant Smelting Co., 1st Mort- |
gage) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , 349,000 00
Net Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . . 804,644 85
TJhearned Treatment. on Metals in Process. . . . . . 2,148,559 35
Profit and LOSS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,499.979 40
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . $117,802,183 60 .
51
GUGGENHEIM EXPLORATION CO.
ANNUAL REPORT SHOWS NET INCOME $57,849 IN
EXCESS OF DIVIDENDS:
Surplus Shows a Decrease of $100,563 During Year, But $158,412. sº
Was Charged Off on Account of Securities Disposed Of-
The 10 Per Cent. Dividend Paid Despite Financial
Depression—Will Issue Quarterly State-
ments—The Outlook.
Stockholders of the Guggenheim Exploration Co. will re-
ceive to-day a financial statement of operations for the year 1908,
signed by President Daniel Guggenheim.
The statement shows that the 10 per cent. dividend was paid
to the shareholders notwithstanding the general depression last
year in the metal markets. The book value of the stock is shown
to be $230 a share, taking the holdings in the company’s treasury
at the present market prices and excluding $11,249,000 of Amer-
ican Smelters Securities Co. common, which is carried on the
books at a nominal value of $1.00. -
With a surplus of $13,643,688 and assets of $36,647,220, the
company starts the year 1909 in a financial condition which
President Guggenheim and his associates believe should be emi-
nently satisfactory to the stockholders in the big corporation.
An important announcement as to the future policy of the
Guggenheim interests is also made, as follows: -
“It is the intention of the copper companies in which we
are interested to inaugurate a system of issuing quarterly state-
ments, copies of which will be mailed to our stockholders.”
Referring to operation, President Guggenheimer says:
“It is only within a few months that all the smelters and
refineries of the American Smelters Securities Co. (six in num-
ber) have been completed and in operation. The profits now
earned by the Securities Co. indicate that its common stock will
in the course of time be a very valuable asset.” *
As to the future, President Guggenheim says:
52
“Last year we stated that in the opinion of our engineers
Utah Copper, Nevada Consolidated Copper, Cumberland-Ely
Copper and Yukon Gold companies would probably earn divi-
dends during the year 1908. This prediction has been practically
realized. Utah Copper Co. commenced dividend payments on
the third quarter of last year upon a basis of $2 per share.
“The Nevada Consolidated and Cumberland–Ely Copper
companies were both more or less delayed in the completion of
their equipment but have been making regular shipments since
August, and their output and earnings are increasing steadily
month to month. Both give promise of dividend returns to their
stockholders beginning in the last half of the year.”
The assets and liabilities of the company follow :
ASSETS.
December 31, 1908: -
Treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,319,900
American Smelters Securities Co. (A.) . . . . . . . . . . . 13,860,000
American Smelters Securities Co. (B.) . . . . . . . . . . . 199,890
American Smelters Securities Co., common. . . . . . . 1.
Other properties and investments. . . . . . . . . . . . . . . . 17,589,486
Furniture, fixtures and equipment. . . . . . . . . . . . . . . 7,705
Bills and accounts collectible. . . . . . . . . . . . . . . . . . . . 2,083,436
Cash and demand loans. . . . . . . . . . . . . . . . . . . . . . . . . . 1,586,800
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,647,220
LIABILITIES.
Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . $22,000,000
Bills and accounts payable. . . . . . . . . . . . . . . . . . . . . . 1,003,531
Surplus. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,643,688
Total … $36,647,220
Details of the item “other properties and investments” fol-
low :
December 31, "1908:
Cumberland-Ely Copper Co............ ~ $912,808
Esperanza, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 337,359
Nevada Consolidated Copper Co. . . . . . . . . . . . . . . . . 1,671,588
53.
Neyſada, Northern Railroad Co. bonds. ... ::: .….....sº l;650,000.
Utahj Copper:Qo. • ?: <&s... . . . . . . . . . . . . . . . . . . . . . . . . .'; 4,788,647.
Yukon: GQl d; GQ t; * , ; s:- 3.3 º: #. 4 * * * **:: . •... • * > . . . . . .. • • ‘r. • * * ...' .. * . ..' . p ºf 8,222,062.
Miscellaneous investments..... . . . . . . . . . . . . . . . . . . . . . . . . 7,020
*
- ... . . . ~ * : * * ... → : S \, , , , , , , : " - c. . . . . . . . . . . . * • • , - r———, , - e. r-e ‘ ‘
. . . . . . . ; :* N. ºf . . . . . . . . . . . . . . . . . - - - • , . . . . . ." i • * * * * - * -
- * g t -
~ 3 - - - , ,-- ** - - :G). 2. .* * * : * * * *** 2° tº ‘s’ > * > . , s , , s: • * * : * * * • a a. .Y.4 °.
3’.... ". . . tººk cº. . . ... •2.2. S3, . . . . . .” gº : . . . . . . . . . . sp.-L ( ; O,O J STVov .
ºil of the ab
• : º, C.
QYºgiftems are carried at cost. . . .
sº º *. ‘. R
•) - - • *- -- - . . - g - * * .. . - - -
; : #fit..." iii..... 3-1; i. i* {* 1 ...º.º.º. 3. ....: , ; - E-41 -------------------. . .
* ºffié Présidéfit's letter carries the following comment:
*ść…:::::::::::::::::#3:... ſº..….… 1 ºz. ....…' ...: - . . . . . -- - -
*Čomparison witHäästöännual statement will show decrease
iñºsiºplus 6;&#00:563." The net income was $57,849 in excess of
dividerids; Bütºwe ºiaiged of $158,412 on account of securities”
disposed of diiring the year: * . . . . º ºr
W e. continue toº &rry American Smelters Securities Co.'s
common stock, of which we own , $11.249,000 par value, upon
our books at a nominal valuation of $1.
Calculating the value of American Smelters' Securities Co.
(A) shargs, upon which dividends are paid at the rate of 6 per
cent.p.g.annum, at $90 per share, and the remainder of our stock
hºldings (exclusive of American Smelters, Securities Co. com-
mon) at their present market prices, the book value of Guggen-
heim. Exploration Co. stock would be $230 per share, exclusive
of good-will. Assuming the present value of American Smelters
Securities Co. common to be $40 per share, the book value of
Guggenheim Exploration Co. stock would be $251 per share, ex-
clusive of good-will.—Wall Street Journal, Feb.
FIGHT GUGGENHEIM CONTROL.
Federah Smelting Minority Says Losses Were Forced on
- Company.
(From New York Times, February 7, 1913.)
“The complaint of Sidney. Norman and other minority stock-
holders of the Federal Mining and Smelting Company, attack-
ing the contract between it and the Guggenhełm"interests which
wäßiſcontrol, was...served yestedray Qn the defendants and
tlièstifºwill probably be filed on Monday. The plaintiffs.declare.
thät if it had not been for this contract the product of the Federal’
54%
Company since Aug. 31, 1909, the date of expiration of the pre-
ceding contract, could have been sold for $1,500,000 more than it
got from the Guggenheims. The existing contract was made
after the Guggenheims had got control of the Federal Company
and four years before the expiration of the old contract.
The defendants in the suit are the Federal Company, the
American Smelting and Refining Company and the Directors of
the Federal Company, some of whom are also Directors in the
Guggenheims’ companies.
When the original contract was made, the Federal Com-
pany was controlled by the Rockefellers and George J. Gould.
It provided the Smelting and Refining Company should pay for
the Federal Company’s ore 90 per cent. of the market price for
lead on 90 per cent, of the lead contents, unless the price went
above $4.10. In that case it was to pay the same as on the $4.10
basis, with half the excess price, instead of 90 per cent, added."
This contract was made in December, 1903, when 1ead was
selling for $4.16, and was to run for six years. The plaintiffs
cite figures to show that in the next two years the price kept
advancing and in October, 1905, stood at $4.85. -
At that time, after the Guggenheims had got control of the
company and put in their own Directors, a new contract was
made, to begin at the expiration of the old one, on exactly the
same terms, to run till 1930.
It is alleged that the Directors have not only worked the
mines of the Federal Company for the benefit of the Smelting
Company, but have also used the funds of the Federal Company
to purchase other mines to be worked on an unprofitable basis
t!nder the contract.
The minority stockholders, through their attorneys, G. J. &
S. N. Carr, ask that the contract be declared void and that the
Smelting Company be required to account to the Federal Com-
pany for the difference between what it has paid and the market
price. They also ask an injunction to prevent the Directors from
working the mines or acquiring other mines.”
55
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Refined Sugar
per Pound.
1.90c.
PRESENT RATES
Raw Sugar
96° Test
per Pound.
1.685c.
Assessed Difference
per Degree
per Pound.
.035c.
RATES WE PROPOSE
Refined Sugar
per Pound.
.62c.
UNDER RECIPROCITY TREATY,
Raw Sugar
96° Test
per Pound.
.60c.
Assessed Difference
per Degree
per Pound.
.006c.
IMPORTATIONS FROM CUBA
PAY 20% LESS, IN BOTH CASES
COMMITTEE OF WHOLESALE GROCERS
CARL SCHUSTER
Koenig & Schuster
New York City
B. F. PERSONS
Parsons & Scoville Co
Evansville, Ind.
R. E. COLLINS
Collins & Co.
Birmingham, Ala.
G. T.HALEHEIMER
Syracuse, N. Y.
F. J. DESSOIR
R. C. Williams & Co.
New York City
W. E. SMALL
The A. B. Small Co.
Macon, Ga.
A. BLANTON
A. Blanton Gro. Co.
Marion, N. C.
F. J. DESSOIR
W. H. BAEER
Baker & Co.
Winchester, Wa.
H. C. BEGGS
Dillworth Bros. Co.”
Pittsburgh, Pa.
R. E. BENT LEY
Bentley, Shriver & Co.
Baltimore, Md.
A. S. HAMMOND
Monypeny Hammond
Co., Columbus, O.
W. E. COOPER
Cooper Bros.
inchester, Wa.
EI. T. GATES
E. W. Gates & Co.
Richmond, Wa.
E. L. WOOD ARD
E. L. Woodard & Co.
Norfolk, Va.
JACOB ZINSMOEISTER
J. Zinsmeister & Bro.
Louisville, Ky.
A. BRINELEY
A. Brinkley & Co.
Norfolk, Va.
ISAAC HORNER
Pſy. Horner & Co.
Chicago, Ill.
E. P. McKINNEY
McKinney & Co.
Binghamton, N. Y.
EI. Y. McCORD
McCord Stuart Co.
Atlanta, Gá.
A. S. WEBSTER
Webster Grocery Co.
Danville, Ill
EDWARD CUMPSON
T. & E. Cumpson
Buffalo, N. Y.
FRANK C. LOWRY,
Chairman
Secretary
;
.i
:s
s
i
º
EFFECT OF TARIFF UPON PRICE.
Testimony before the Hardwick Committee showed that
the Tariff on sugar increases the price to consumers from
one and one-half to two cents per pound, and Mr. C. A. Spreckels,
President of the Federal Sugar Refining Company, estimated
that it cost the American People I4O Million Dollars annually.
This is forcibly illustrated by the following comparison of
domestic and export prices: -
REFINERS QUOTATIONS, April 27, 1912, on Granu-
lated to the Domestic Trade (Willett & Gray): .
In New York . . . . . . . . . . . . . . . . . . 5.O5C. to 5.2OC. per pound
In Philadelphia . . . . . . . . . . . . . . . . . - 5.2OC. per pound
In New Orleans . . . . . . . . . . . . . . . . . 5.2OC. per pound
In Boston . . . . . . . . . . . . . . . . . . . . . . 5.2OC. per pound
In San Francisco, where only do-
mestic beet or Hawaiian cane U Cane. ... 5.5oC. per pound
sugar is sold on which no duty
has been paid. . . . . . . . . . . . . . . . Beet. . . . 5.3Oc. per pound
EXPORT PRICE in New York on same sugar free on
board steamer is 3.50c. to 3.55c. per pound.
Let those, who through unfamiliarity with the situation, do
not believe that a reduced Tariff would mean a lower price on
sugar to consumers, refer to the year 1891, when the Tariff law
became effective April Ist, removing the duty of about 2 cents
per pound on sugar, and they will find that Refiners’ quotations
fell from 6%.c., as quoted on March 26th, to 4%.c. On April 2nd,
and by May 14th, granulated sugar had reached 4% c. per
pound. -
The Federal Sugar Refining Company recently made the
Government a price of 5.35C. On a 700,000-pound contract,
calling for summer delivery, with a proviso that, if the Bill,
passed by the House of Representatives, placing sugar on the
free list, became a law before they are called on to make de-
livery of the sugar, their price will be reduced 1%.c. per pound,
because Of the fact that they will not be required to pay any
duty on the raw sugar imported. (Senate Hearings, Page 460),
. 1
INTERESTS FAVORING HIGH TARIFF AND WHY |
There is absolutely no question but that the consumer will
get all the benefit from “free sugar,” or a reduction in the Tariff
rate on raw sugar, with a corresponding reduction in the rate
on refined sugar. Those in the Sugar Trade fully recognize this.
It is also shown by the Domestic producer's anxiety. He well
knows that a reduced tariff rate means that he will have to sell
his product at a lower price. If it were not so, he would not
be working so hard to have the present rate maintained, but
in the hope of confusing the issue, he does a lot of talking about
it being useless to reduce the rate because the “consumer will
not get the benefit,” knowing that this is “rot.”
This is not a question that should be settled only on what
this or that “interest” wants, but let us see who it is that wants
the present rate maintained, so that consumers will continue to
be taxed for their benefit? First we have the American Sugar
Refining Company, commonly known as “The Sugar Trust.”
Their interest in the matter is clear.
The Hardwick Committee developed the heavy interest which
the Sugar Trust has in the Domestic Beet Sugar Industry (Hard-
wick Hearings, Pages 58, IOO, 2,884 and 2,992). These factories
obtain a heavy indirect bounty through our present high tariff
on sugar, and the Trust, becoming fond of the Government
“pap” fed to its offspring, naturally desires it to be continued.
They are clearly on record to this effect; as reference to the
Payne-Aldrich Tariff, Hearings Igo9, shows a brief, Pages 3430–
3440, filed by the American Sugar Refining Co., urging that the
present Tariff rate be maintained. This is the official position
taken, and it has never been changed. To insure this they have
worked mainly through their domestic Sugar allies.
The American Sugar Refining Company also profits by a
contract which it has with the Hawaiian Planters, which insures
their getting all the sugar produced in Hawaii with the exception
of that shipped to the C. & H. Refinery in San Francisco, which is
said to be controlled by the Hawaiian Planters. (See Hardwick
Hearings).
The American Sugar Refining Company also profits by very
favorable contracts which they have been able to make with the
Louisiana Planters. (See report of Hardwick Committee, page
19) which enables them to purchase Louisiana Sugars below the
ruling market in New York.
As the price of all sugar in this country is based on the in
bond price of foreign sugar, plus the duty and cost of refining,
it is apparent that the value of all sugar produced inside our
Tariff wall, Porto Rico, Hawaii, Philippines, Louisiana and do-
mestic beet is enhanced “to the extent of the Tariff on sugar.”
2
Naturally, these interests desire that the present rates be con-
tinued.
The Free-Sugar Bill, passed by the House of Representa-
tives, brought forth the usual wail from these interests, who claim
that “ruination” stares them in the face if the Bill became a law.
They did this when the Hawaiian sugars were admitted free, and
a similiar cry arose when the Porto Rico sugars were admitted
free, and was repeated when Cuba sugars were admitted at a
20% reduction, and was again repeated when Philippine sugars
were permitted to come in free up to 300,000 tons. For the
present Tariff to be reduced one mill would bring forth the
same outcry. . #
INTERESTS FAVORING REDUCTION AND WHY |
A material reduction in the Tariff on sugar would reduce
the price. It, therefore, would be to the advantage of the Con-
Sumers, manufacturers and dealers handling sugar. They have
Šent thousands and thousands of petitions to the Ways and Means
Committee asking for a reduced rate.
A few independent cane sugar Refiners have declared them-
selves in favor of lower duties. A lower Tariff rate would reduce
the price of sugar, resulting in an increased consumption, which
means an increased business. In addition, the Independent Re-
finer would, no doubt, be glad to have the Government discontinue
the heavy subsidy which their chief competitior, “The Sugar
Trust,” is now receiving from the indirect bounty which the
present Tariff grants to their beet sugar plants.
The National Canners’ Association has passed resolutions in
favor of a reduction in the duty on sugar and the American
Bottlers' Protective Association has passed resolutions in favor
of “free sugar.” Thousands of petitions have also been sent to
Congressmen signed by individuals, firms, corporations, granges,
etc., asking that the tariff rate on sugar be reduced.
When the Tariff on sugar was removed in 1891 the con-
sumption increased in one year 23 per cent. Such an increase
would be double last year’s production of beet sugar in the
United States. Consider what an advantage this increase in
business would mean to Jobbers, Retailers, Manufacturers, Re-
finers, Transportation Companies, etc.
THE UNITED STATES, BECAUSE OF ITS PROXIM-
ITY TO CUBA, AND ITS INSULAR POSSESSIONS
PORTO RICO, HAWAII AND THE PHILIPPINES, AS
WELL AS FROM THE FACT THAT BEET SUGAR CAN
13E PRODUCED IN OUR WESTERN STATES AT A VERY
*
J
LOW COST, SHOULD HAVE CHEAPER SUGAR THAN
ANY NATION IN THE WORLD. From these sources, with
their natural advantages, we are assured not only of an ample
Supply of Sugar but this supply can be obtained at a minimum
cost if it were not for the high duty which enhances the price.
THE QUESTION IS, ARE THE PEOPLE TO RECEIVE
THE BENEFIT OF OUR NATURAL ADVANTAGES, OR
ARE THEY TO BE EXPLOITED FOR THE BENEFIT OF
THE PROMOTERS OF OUR DOMESTIC BEET AND
CANE SUGAR INDUSTRYP THE PRESENT HIGH
TARIFF MEANS THE LATTER. - t
ANALYSIS OF POSITION OF TARIFF-FAVORED IN-
TEREST.S.
Analyzing the Domestic Sugar Producers’ position we find
that, aside from the fact that the present Tariff rate helps them
to make enormous profits, to overcapitalize (Hardwick Report,
page 26) to pay dividends on “watered” stock, to locate plants
where nature never intended sugar to be produced economically,
their claim that they must have the present rates has no merit.
Porto Rico, Hawaii, the Philippine Islands are natural sugar
producing countries. In the past they have worked successfully
without Tariff protection. While the Industry has received
enormous benefits from our Sugar Tariff, no one attempts to
justify the continuation of a policy to tax consumers in the
United States, over $125,000,000 each year so that these interests
can make excessive profits.
Hawaii which boasts, and with reason, that its sugar industry
is Operated in the most scientific way of any industry in the
world, whose cane yields 14 to 15 per cent... sugar (much better
than Cuba), produces raw sugar at a cost of about 2c. per pound
for 96 test. Messrs. Willett & Gray show that the average duty
paid price of raw sugar, 96° test, which is the basis on which
Hawaiian sugar is sold, for the last ten years has been 3.97c.
per pound. Is it necessary that the Hawaiian Sugar Manu-
facturers, who employ almost entirely Japanese labor, should
make such excessive profits?
It is commonly reported that the crop of 1911 was sold for
fifty-two million dollars, with the planters profits about twenty
million dollars, or 38 per cent. of the total sales. Our consumers
are being taxed nearly 20, per pound in order to produce this
result. -
- Similar conditions exist in Porto Rico where enormous
profits are being made in the same way. A reduction in the
4 2 *
Tariff to the rate we urge would only mean that these abnormal
profits would be reduced. It also would no longer be profitable
to grow Sugar on the tops of mountains where Nature never
intended sugar should be produced Or to pay Spanish landlords
the annual rental of $20 per acre as is done in some cases.
It is not our understanding that the American people desire
to be taxed so as to produce either of these results.
The Philippine Islands have many times been referred to
as the greatest natural Sugar producing Country in the world.
They are a part of the United States, just as is Porto Rico and
Hawaii. Why should not the people of the United States benefit
by these great natural advantages? The greed of the domestic
sugar producer will not permit this. Our Beet Sugar Producers
are afraid that the Philippines may attempt to sell sugar too
cheaply to the American Consumer Some day, and had a clause
inserted in the Payne-Aldrich Tariff expressly drawn to hamper
the production of sugar on a large scale in the Phillipine Islands
(see Senate Hearings page 445).
“Let us produce our own sugar” is the cry of the domestic
beet sugar men, but they add that they must be the dictators of
where that sugar is to be produced and they try to hamper the
production in that section which Nature has equipped for doing
that particular work at a minimum cost. They know Porto
Rico and Hawaii have reached their limit of production and so
do not fear this competition, but in the Phillipines possibilities
have almost no limit if properly encouraged.
It is the old story. Are the people to receive the benefit
of our natural advantages or are they to be exploited for the
benefit of promoters?
LOUISIANA SITUATION.
This leaves only what is called our “Home” product to
be considered.
Louisiana produced in 1894-95 319,000 tons; 1910-II only
3OO,OOO tons. Domestic beet production in 1906-7 was 433,0IO
tons. Last year it was 455,220 tons. Our consumption in 191 I
was 3,351,391 tons (see Willett & Gray).
Louisiana tells us it is good business for the Government to
tax consumers nearly 140 million dollars each year SO that
they may produce a crop the annual value of which is about 25
million.
If evidence were needed to show the fallacy of the claim that
it is good business for the Government to foster an industry,
under unnatural conditions, by a high protective tariff, we have a
clear example in Louisiana. They have presented the strongest
5
possible indictment that could be drawn against them when they
Stated that it costs them about 3% cents per pound to produce
raw Sugar, while the cost of production in Cuba is about 2 cents
per pound. They cannot show that this difference in cost is due
to the high price of labor. The negro men and women of Louis-
iana are not high-priced labor. A reference to pages 1816 and
1817 of the Hardwick Hearings will show that Mr. Wilkinson
testified that in Louisiana male laborers were paid from 75 to
85 cents per day, and $1 and board in harvest time, and women
were paid 75 cents per day. That 75 cents per day was paid
to the women in the grinding season, and less at other times.
He also said that 25 per cent. of the labor in the grinding season
was women’s labor. In Cuba, on the other hand, the rate is
from $1 to $1.25 a day per man, and the women will not work
in the fields. The old days in Cuba, when labor could be gotten
at 80 cents, have passed. But in any event the labor cost in a
factory per pound of sugar produced is a small item.
If they show any increased cost in the mill they only prove
their own inefficiency. The trouble is that this “infant industry”
has been trying to produce Sugar, under unnatural conditions,
for nearly a hundred years. The constant fear of frost requires
them to begin cutting the cane in October, before it has properly
matured. The result is that their Sugar yield is only 6 per cent.
to 7 per cent., as compared with II per cent. to I2 per cent. in
Cuba, with an occasional yield of I4 per cent., and I4 to 15 per
cent. in Hawaii. Overlooking the fact that year after year repre-
sentatives from Louisiana have gone to Washington and held out
great hopes to our legislators for the future of the industry, their
claim for further protection is now reduced to the simple one
that “the Government has protected us at a high rate for so
many years that in justice to ourselves they should continue to
tax the rest of the country for our benefit.”
Because of the help given for the last one hundred years
must consumers continue to be penalized because these gentle-
men persist in trying to produce sugar under unnatural conditions
and do not choose to divert their efforts into other and more
profitable channels?
They tell us that the lands on which this sugar is produced
in Louisiana are the most fertile in the South. Therefore it is
apparent that their claim is untenable that they cannot be put
to some other use. Taking their own figures, their claim that
an investment of $119,000,000 will be wiped out by the removal
of the tariff on sugar needs careful analysis. When this is done
it is found that according to their own estimates but $35,OOO,OOO
is invested in factories. They claim they have $70,000,000
invested in lands, buildings, and field improvements. The lands
and buildings could without doubt be put to some other use,
6
for which they are equally well if not better suited ; and the
field improvements certainly would not be any handicap to the
production of some other crop. The $LO,OOO,OOO invested in
mules would not be interfered with. It is beyond all reason
that they should ask that the American people be taxed well
Over $125,000,000 annually, so that they may produce a crop,
the total value of which is in the neighborhood of $25,000,000.
The far-seeing men in Louisiana will to-day admit that
it would have been a blessing to their State if the tariff on sugar
thad been removed 25 years ago, as in that event their lands
would now be producing other and more suitable crops, and
the grower would be on such a sound basis that he would not
llave to ask for the assistance of anyone.
After receiving subsidies, both direct and indirect, through
either direct bounties or a high protective tariff for Ioo years the
sugar industry of Louisiana, if it can not stand alone, has no
further claim on the American people.
We believe we should look to industries that can be of
service to the American people and not to industries that the
American people must servel
EUROPEAN TARIFFS AND THE BEET SUGAR
SITUATION. -
In this connection a comparison of our sugar tariff with
that of European countries is interesting.
Duty per pound, Production Iglo-II
Raw. Refined. beet sugar.
\ Cents. Cents. • Tons.
United States . . . I.685 (96°) I.90 455.22O
Germany . . . . . . . . .47 .52 2,600,000
France . . . . . . . . . . .47 .52 72O,OOO
Austria . . . . . . . . . .47 .52 I,538,000
Holland . . . . . . . . . — - 222,OOO
Belgium . . . . . . . . . 47 .52 285,000
It will be noted that our beet-sugar factories now have
practically three and a half times as much “protection” as those
of Germany, Austria, and France. In the old days when the
European countries gave a direct bounty to their sugar industry,
this only amounted to O.259 in Germany, O.I.37 in France, and
•o.2O3 in Austria. So that it will be seen that if, in addition to
the tariff, the European countries were still giving direct bounties
similar to the above, the total subsidy, direct and indirect, given
to the industry would be less than half that now given by the
*United States,
In addition to the duty referred to above, importations to
European countries must pay what is called a “consumption
tax.” Their domestic sugar must also pay the same “consump-
tion tax” so that the “protection” is the Tariff rate stated above
or 47c. per hundred on raw sugar and 52c. per hundred on
Refined sugar. • - - .
Noting the very heavy “protection” given by the United
States, as compared with the countries of Europe, and the rel-
atively small production of beet sugar, it might appear at first
glance that the industry in this country had some unusual handi-
caps, which might be accepted as sufficient reason for our aband-
oning it, but closer investigation shows that this is not a fact.
The two advantages enjoyed by our domestic beet-sugar
industry are, first, the high protective tariff, and, secondly, the
additional protection the factories now have by reason of their
saving in freight rates. The beet-sugar factories are located in
the interior, and to a very large extent in the Western States,
and market their sugars near home. They base their selling
price on the delivered price of cane sugars, which, of course,
includes the heavy freight from seaboard to destination. As the
beet-sugar factories pay a much lower freight rate to reach their
distributing markets, the difference between the rate paid by them
and that charged their customers gives them a very substantial
extra profit. -
The Hardwick Committee showed that where beet-sugar
factories in this country are properly located, thoroughly equipped,
and honestly capitalized, they have nothing to fear from a ma-
terial reduction in the duties on sugar. Therefore the present
sugar tariff is not for the legitimate protection of the industry,
neither is it an equitable revenue measure. We clearly see the
promoters’ reasons for desiring “protection,” in the capitalization
of our beet-sugar plants, which exceeds $129,000,000. These
factories produced only 450,595 tons of Sugar in 191O-II. A
cane-sugar refinery in New York, with $10,000,000 capital,
can produce an equal amount of refined sugar. This shows how
the promoters of our domestic beet-sugar industry have capital-
ized the tariff (Hardwick Report, page 26), and require it to
be continued, only that they may pay excessive dividends on
watered stock.
With normal prices in 1910, at least one factory, Union
Sugar Co., paid a 100 per cent. dividend, and the Michigan
Sugar Co. declared a stock dividend of 35 per cent. in
addition to their regular quarterly dividend of 134 per cent. On
their capital stock.
Eighty-four and seventy one-hundredths per cent. of this
beet sugar is produced in California, Colorado, Idaho, Michigan,
and Utah, where 47 factories are located; 7.46 per cent. is pro-
*
8
duced in Nebraska, Ohio, and Wisconsin, where 8 factories are
located; 7.84 per cent. is produced in Arizona, Illinois, Iowa,
Kansas, Minnesota, Oregon, Montana, Washington, and Nevada,
where there is but I factory in each State, and these, it has
been contended, were located for strategical purposes.
On this point I might refer to Mr. Atkins's, Vice-President
of the American Sugar Refining Company, testimony before the
Hardwick Committee, page I67, he says: -
“They never have been able to get a reduction of duties on
sugar, for this reason: There are 17 States in the Union pro-
ducing beet sugars. Every one of those States has two Senators.
There are 34 Senators, and every one of those Senators is a
Republican. * * * They never have had any opportunity to
get that reduction down. The probability is that they cannot
get any reduction now, in the face of such a strong opposition
as that is.”
You will note that he does not treat on the merits of the
case, but feels that the Senators from these several States will
be more concerned about protecting large profits for the Beet
Sugar Factories, than in protecting the Consumer. -
With the exception of the 20% reduction given in 1903 on
importations from Cuba, and the absurd reduction of five one-
hundredths of one cent per pound, made in the Payne-Aldrich
Tariff, on refined sugar (practically none of which is imported)
the present rates were reached at the time of the Dingley Bill
in 1898, and those in position to know, freely state that there was
nothing “scientific” about the way in which rates were reached
at that time. The consumer got scant consideration and the
manufacturers got what they wanted.
* For years our tariff laws have been drawn so as to “protect”
the factory; let us now have a tariff that will “protect” the
COMS.1477ter / - -
FARMER's POSITION IN BEET sugAR INDUSTRY.
The beet-sugar industry is divided into two parts. First,
the production of sugar beets, in which the farmer is interested:
secondly, the production of beet sugar, in which the factories are
interested. In the natural course of events, however, one is
dependent upon the other. *
We will first consider the farmer's position. Much is said by
the beet-sugar lobbyists about our domestic beet-sugar production
making us independent of foreign countries.
The reverse is true. We are absolutely dependent on Europe
for our sugar beet seed, all of it being imported, and no encour-
agement given to the farmers in this country to raise sugar-beet
.9
seed. There is a tariff rate on ordinary garden beet seed, but
the sugar factories, who import beet seed from Europe and sell
it to the farmer have seen to it that this comes in free of duty,
because they desire to purchase it at the lowest possible cost.
What would be our position if the countries of Europe should re-
fuse to sell us sugar-beet seed P
The Department of Agriculture says: “As a rule the farmer,
if he grows beets to any extent, does not have on his farm suffi-
cient labor to take care of the work of thinning, bunching, hoeing,
and harvesting the sugar beets.” (Report on Progress IQoI, p.
I9.) - .
“Not only does the typical American farm and farm com-
munity lack the number of laborers required, but the labor itself
is of a kind distasteful to our farmers.” (Ibid., 1906, p. 24.)
The manner in which this need of extra labor has been
met is instructive, not only as regards the beet-sugar situation
itself, but also as regards the general trend of industry in the
United States during the last generation. - -
Almost everywhere in the beet-sugar districts we find labor-
ers who are employed or contracted for in gangs—an inferior
class utilized and perhaps exploited by a superior class. The
agricultural laborers in the beet fields are usually a very different
set from the farmers. On the Pacific coast they are Chinese
or Mexicans. Except in southern California, where the Mex-
icans are near at hand, most of the work is done by Japanese
under contract, there being usually a head contractor—a sort
of “sweater”—who undertakes to furnish the men. In very recent
years Hindus (brought down from British Columbia) also have
appeared in the beet fields of California. In Colorado, “immi-
grants from old Mexico compete with New Mexicans (i. e., born
in New Mexico), Russians, and Japanese.” Indians from the
reservation have been employed in Colorado, and boys have
been sent out under supervisors from the juvenile court of
Denver. At one time convict labor was used in Nebraska.
In some parts of Colorado, in Montana, and the beet
fields of the single factory in Kansas, Russian Germans are
employed. These curious and interesting people are Germans
who were imported into Russia by the Empress Catherine. They
persistently maintained their race and language and religion. In
recent years they have been driven from Russia by persecution.
They now center about Lincoln, Nebr., and are shipped under
contract to the beet fields, where they are assiduous and much-
prized workers. They are much more welcome than the fickle
Indians and Mexicans; more welcome even than the Japanese,
who are quick and capable, but often break their contracts. The
German-Russians camp in whole families at the beet region for
the summer; men, women, and children toil in the fields. In
TO
Michigan the main labor supply comes from the Polish and Bohe-
mian population of Cleveland, Buffalo, and Pittsburgh. The
circulars issued by the Department of Agriculture and by the
State boards and bureaus repeatedly call the attention of the
beet farmers to the possibility of employing cheap immigrants.
The troublesome labor problems, it is said, need not cause worry;
here is a large supply of just the persons wanted. “Living in
cities there is a class of foreigners—Germans, French, Russians,
Hollanders, Austrians, Bohemians—who had more or less experi-
ence in beet-growing in their native countries. * * * Every
spring see large colonies of this class of workmen moving out
from our cities into the beet fields.” (Report on Progress, 1904,
p. 37. Compare the report of the Kansas State Board of Agri-
culture cited above, p. 19).
Thus we see that so far as the cultivation of sugar beets is
concerned, the high-class American laboring man, who must be
protected, is a myth.
AMERICAN AND EUROPEAN PRICES FOR BEETS
COMPARED.
From the previous bulletin it will be seen that Sugar Beets
are cultivated under vastly different labor conditions than our
other farm products.
Let us see how the position of our beet growing farmer, who
acts to a great extent in the capacity of an overseer, compares
with the beet grower of Europe. -
Quite naturally the beet sugar factories in America desire
to purchase their Sugar Beets from the farmer at the lowest
possible price. They began by paying the farmer $4.50 per ton
for beets, without reference to the sugar contents. Finding the
farmers would not grow sufficient quantities at this figure, the
price has slowly advanced.
In some Western States a flat price per ton is still paid, but
the highest basis that is paid anywhere in this country for Sugar
Beets, is on the following scale: “$4.50 per ton for beets when
the sugar contents is I2%, and 33 I-3 cents per ton advance for
each 19% increase in the Sugar content.” --
The average sugar contents of Beets in the United States
is between 15% and 16%, which is about the same as in Europe.
In some of our far Western States the test frequently runs
up to 18% and 19% or more, probably higher than in any other
country in the world.
Take as a basis I5% Beets, for which test the highest
price paid in the United States would be (short ton). . . . . . $5.50
Mr. F. O. Licht who is recognized all over f
the world as the leading statistician of Europe, gives the
average price paid the farmer for Sugar Beets in Germany
(where the tariff on raw sugar is 47c, per hundred against
Our rate of $1.685, and on refined sugar 52c. against Our
rate of $1.90) per long ton, as follows:
I909-IO . . . . . . . . … $5.3O
I9IO-II . . . . . . . . . . . . . . . . . 5.44
I9 II-I2. . . . . . . . . . . . . . . . . 5.56
He also states that “conditions in the other European
Beet Sugar countries do not differ much from those in
Germany,” and adds, “except that the average beet price
per long ton in Russia is about. . . . . . . . . . . . . . . . . . . . . . . . $9.42
L. Behrens & Sohne, for Belgium and Holland, sea-
Son IQII, fixed the price per long ton at . . . . . . . . . . . . . . . . $5.79
These prices, however, do not tell the whole story.
F. O. Licht states: “We might add, for your information,
that the Beet growers of Europe receive other returns for their
beets, besides the cash, viz., they are furnished with beet seed
free of charge, (in the United States the farmer buys his beet
seed from the factory), they receive allowances for freight, and
get from 40% to 60% of the pulp returned to them, without
charge.”
In the United States no beet pulp is returned to the farmer
without charge, but this by-product of the factory is sold to the
farmers, and nets the factory a very nice return. (Senate Hear-
ings, page 404).
* A ton of 15% beets contains a possible 300 pounds of Sugar,
so that even if the farmer in the United States received $1.00 per
ton more than the farmer in Europe, it only would be at the rate
of 33 I-3c. per Ioo pounds of sugar. (The full tariff on raw
sugar is at the rate of $1.685 per IOO pounds, and $1.90 on
Tefined). t
ANALYSIS OF PRICE PAID AMERICAN FARMERS.
Mr. F. O. Licht also says in regard to the position of the
beet grower in Europe: . - -
“In answer to your question whether the beet growers are
interested in high sugar prices, we must say that some of them
do profit by them. In Germany beets are procured in the follow-
ing manner: about half of the beets are grown either by the
factories on fields which they own or lease, or by individual
I 2
partners, and stockholders of the factories. The other half of
the beets are grown by independent farmers and sold to
the factories by contracts which are renewed annually.
A fixed price is agreed upon for these beets when the
contracts are made and the growers of these beets naturally
neither gain nor lose by any subsequent changes in the price of
sugar. On the other hand conditions that govern the sale of
beets that are grown by the factories or their stockholders are
entirely different. As a rule a minimum price, which is always
very low (this accounts for Some of the low prices that have
been given), is fixed and the growers receive further payments
out of the factories’ profits." At the end of each year the net
profits are proportioned and distributed among the beet growing
stockholders according to the quantity of beets that each one
furnished.
“It is evident, therefore, that the growers of about one-half
of the beets grown in Germany are vitally interested in the
movements of Sugar prices.”
Our Beet Sugar Factories delight in dilating upon what
wonderful things they do for the farmer, and at times boast
that they “pay the farmer as much as $6.50 per ton for Beets.”
Let us analyze this statement, and ascertain exactly what
it is they pay for their raw material, before it enters the factory:
First, the factories are not buying beets, they are buying
sugar. When they buy a fon of beets, they are buying the sugar
that is contained in those beets, and they pay on the basis of
sugar contents.
When they pay the farmer:
$4.50 per ton for I2% Beets containing 240 lbs.
sugar they pay the farmer for the Sugar that is
in the beets at the rate of . . . . . . . . . . . . . . . . . . . . . . I.87c. per lb.
$5.50 per ton for I5% Beets containing 3OO lbs.
of sugar they pay the farmer for the Sugar that is t
in those beets at the rate of . . . . . . . . . . . . . . . . . . . . . 1.83c. per lb.
$6.50 per ton for 18% Beets containing 360 lbs.
of sugar they pay the farmer for the Sugar that is
in those beets at the rate of . . . . . . . . . . . . . . . . . . . . . I.8Oc. per 1b.
When they pay $6.50 for 18% beets, they are actually
paying less for the sugar in the beets (which is what they are
buying), than if they paid $4.50 for I2% beets or $5.50 for I5%
beets. It is clear that the reverse should be true because of the
greater value to the factory of the higher test beets.
If the factories were honest with the farmer and paid for the
18% beets (which are of greater value because they are easier
to work) the same basis as On the lower test they would pay
$6.73 per ton instead of $6.50 per ton.
In this way the factories take from the farmer, who they
I3
“love,” a part of the benefit derived from the fact that the beets
have been properly cultivated and the Lord has sent His rain and
Sunshine at the proper time and in sufficient quantity to produc
the best results. -
FACTORY POSITION TOWARD FARMERS.
The Beet Sugar Factories have for many years paid partic-
ular attention to Our tariff laws, maintaining at all times in
Washington what is credited as being the strongest “Lobby” there.
The American Beet Sugar Association has an office in Washing-
ton, and their name appears in the telephone directory, although
they do no sugar business in Washington. What kind of tariff
law is it that meets with their approval?
As a further indication of the beet factories' lack of regard
for the beet farmer, let us refer to the fact that for years they
have been trying to get the Government to allow Sugar Beets
to come in free of duty. They did succeed in the Payne-Aldrich
Tariff, in having the duty on Sugar beets (in which the farmer
is interested), reduced from 25% to IO% ad valorem. The
rate on the ordinary garden beet remained unchanged, at 25%.
The rate on Sugar Beets was reduced, so as to permit the
Michigan factories to import sugar beets from Canada, in come
petition with the Michigan farmer. .
The Treasury Department’s figures show that importations
of Sugar Beets from Canada, through Detroit and Port Huron,
in 1909, were 30,731 tons; in 1910, 56,950 tons. These importa-
tions paid a tariff rate of 45c. per ton. The Sugar contents of
the beets in 1909 was about 16%, IQIO I5%%, an average of
I534%, which means that each ton of Beets imported contained
315 lbs. of sugar, on which the duty was 45c., making the tariff
rate on sugar in the beets at about I4c. per hundred pounds.
SUGAR BEET SEED, which the farmer in this
country might grow, but which, as a matter of fact, is
all imported by the factories from Europe. . . . . . . . . . . Duty Free
SUGAR BEETS, in which the farmer is also in-
terested, pays per IOO 1bs, for the Sugar in Beets a
duty equivalent to. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I4C.
SUGAR IN THE SACK, in which the factory is
interested, pays a duty per IOO 1bs. On refined sugar... $1.90
and if it is 96 test raw sugar. . . . . . . . . . . . . . . . . . . . . $1,685
and 20% less if imported from Cuba.
The fact that the factories “protection” is all out of pro-
portion makes it perfectly clear that the “lobbyists” who have had
so much to do with our tariff laws, and who have been paid by the
sugar factories to look out for their interests, have earned their
I.4
money. Yet they still go to our legislators and insist that they
“want the present tariff for the benefit of the farmer.” Such rot!
It is the beet sugar factory that gets the great benefit from
the present high tariff rate and not the sugar beet grower.
Reduce the tariff to the rates we propose and the farmer
will find his position unchanged and there is ample testimony to
show that he is now reasonably well satisfied
The beet factory proposed and put through a Io9% tariff for
the farmer who grows sugar beets. We now propose approxi-
mately a 24% rate for the factory, but the latter cries “ruina-
tion ſ”
FACTORY cost OF PRODUCTION.
We have now established that, in the United States, the
Beet Sugar Factories' first cost is not very different from the
first cost of the Beet Sugar Factory in Europe.
It is, therefore, perfectly clear that there is no excuse for
their finished cost being materially higher than in Europe.
Turning Sugar Beets into Sugar is entirely a mechanical
process.
The Beet Sugar men boast that their product must be very
pure, because it is “not touched by a single human hand from
the time the beets are delivered at one side of the factory until
the sugar is ready for shipment at the other side of the factory.”
Therefore it is apparent that the so-called “high cost of
American labor” is not a material factor in the operation. The
total labor cost in a properly equipped Beet Sugar Factory is
less than 15c. per IOO pounds of sugar produced. If at the
lower price at which fuel can be obtained in America, as com-
pared with Europe, Our Beet Sugar factories could show that
their factory cost was much different than in Europe, they would
only prove their own inefficiency.
On the authority of a Beet Sugar manufacturer, we can
say that the total stripped manufacturing cost, without selling
expenses, etc., in a properly equipped Beet Sugar Factory, is
$IO per ton, or only 3%.c. per pound. This was also confirmed
by Mr. E. W. Coombs of Colorado, who appeared before the
Hardwick Committee (pages 3258–3348).
The factory cost in Europe is about the same.
Testimony before the Hardwick Committee showed that
Beet Sugar had been produced, not once, but many times, at
under 3C, per pound, and as low as 2.70c. per pound.
The same Committee showed that based on the Beet Sugar
men's own , figures, which certainly included everything they
could possibly think of, taking good, bad and indifferent factories,
I5
the average cost, not of producing, but of producing and market-
ing Beet Sugar in this country, was 3.54c. per pound.
In the trade this price is known to be too high; and it is
recognized that under proper conditions, the price should be
around 3c. per pound, and under this figure when conditions are
especially favorable. -
The Beet Sugar Factories are located in the interior and
sell their sugar above the New York price, but Messrs. Willett
& Gray show that the average price on granulated Sugar for the
last seven years in New York has been 4.98c. per pound, show-
ing that the Beet Sugar Factories, based on their own figures,
which are known to be high, are making a clear profit over cost
of from I}%C. to 2c. per pound, or over 43% of the cost of pro-
duction, as a result of the present excessive tariff on sugar.
A Cane Sugar Refinery in New York is much pleased when
their profits average 3-16c. per pound, and Willett & Gray show
that the average difference between the Cane Sugar Refiners
first cost and their selling price on granulated was in 1911–
.892c., in 1910—.784c., and in 1909 only 758C. per pound, Out
of this the cost of operation, packing and all other expenses must
be deducted before any profit can be figured.
There is absolutely no justification for the present rates on
the factory side of beet sugar production.
EFFECT OF “HOME” PRODUCTION.
The beneficiaries of our high protective tariff use the shop
worn argument, “Keep the tariff where it is and let us reduce the
price by producing all our Sugar at home.”
The weakness of this argument has been shown time and
time again in other lines, but fortunately, in the case of Sugar, we
do not have to resort to theory. -
At the present time in our Western States all of the Sugar
that is being consumed is of domestic production, either being
imported from Hawaii, on which no duty is paid, or the product
of our Beet Sugar Factories. Let us see what the prices are.
The following are the quotations for Granulated Sugar,
quoted May 4th throughout the United States by cane refiners
and beet sugar factories, subject to a cash discount of 2% :
Cents Per Pound.
New York . . . . . . . . . . . . . . . . . . . . . . . 5.050. to 5.2OC. Cane
Philadelphia . . . . . . . . . . . . . . . . . . . . . . 5.2OC. Cane
Boston . . . . . . . . . . . . . . . . . . . , - - - - - - - - 5.2OC. Cane
New Orleans . . . . . . . . . . . . . . . . . . . . . 5.2Oc. Cane
Buffalo . . . . . . . • - - - - - - - - - - - - - - - - - - 5.2OC. to 5.35C. Cane
Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . 5.27%C. to 5.42%.c. Cane
Cents Per Pound.
Hawaiian Domestic
Cane. Beet.
San Francisco, Cal. . . . . . . . . . . . . . . . . . . 5.50C. 5.3OC.
Salt Lake City, Utah. . . . . . . . . . . . . . . . . 5.950. 5.75C.
Colorado Springs, Colo. . . . . . . . . . . . . . . 5.8Oc. 5.6Oc.
Kansas City, Mo... . . . . . . . . . . . . . . . . . . 5.48c. 5.43C.
Minneapolis, Minn. . . . . . . . . . . . . . . . . . . 5.45C. 5.4OC.
Detroit, Mich. . . . . . . . . . . . . . . . * G - © e º Q. C. N. Y. Cane 5.27% c.
5.22% c. to 5.37% c.
There is no theory about this. The above shows that in
actual practice prices are higher in our Western States, where
the Sugar used is of domestic production, and pays no duty, than
it is in the East, where the sugar pays a duty. - -
It shows that the cost of production has no relation to the
selling price of domestic sugar, and that the domestic producer, in
arriving at a selling price, bases his price on the value of im-
ported sugar plus the duty and cost of refining, and not only
adds the duty, but adds the freight from seaboard to distributing
markets as well. -
Are the people of our Western States, who are paying these
high prices, receiving any benefit from the fact that this domestic
sugar, both beet and cane, is being produced at a cost of around
3c. per pound for granulated? -
-. There is only one way to reduce the price and that is by
reducing the duty.
LOWFY TARIFF PLAN.
The present tariff on sugar enhances the price for the pro-
ducers in Porto Rico, Hawaii and the Philippines, so that the
owners of the mills (who as a rule live in the States), are making
an enormous profit at the expense of the American consumer, but
the sugar industry in these islands, before they became a part
of the United States, flourished under conditions of absolute
free trade.
It is, therefore, apparent that any tariff that we might have
would enhance the value of the product of these Islands by the
amount of the tariff, so that it is clear that any tariff means just
so much eaſtra profit to those engaged in producing Sugar in
these Islands.
The tariff rate we propose is equal to $10 to $12 per ton.
Let us now consider how our domestic beet sugar industry
would fare under the rate which we propose. e
It is well known in the trade that where factories are prop-
17
erly located and thoroughly equipped, there should be no difficulty
in producing beet sugar at 3c. per pound (see Hardwick Hear-
ings), and the Beet men themselves boast of this when seeking
financial assistance.
Taking their own figures, the cost of pro-
ducing and selling in good, bad and indifferent
factories, the Hardwick Committee shows that .
the average cost was only. . . . . . . . . . . . . . . . . . . . . 3.54c. per lb.
Messrs. Willett & Gray show that the aver-
age New York refiners price for the past seven
years On refined Sugar has been . . . . . . . . . . . . . . . . 4.98c. per lb.
The Department of Commerce and Labor,
Bureau of Statistics, No. 240, page 517, shows
that the average cost per pound, free on board in
foreign countries, of the raw sugar imported,
I905-191 I, inclusive, was . . . . . . . . • - - - - - - - - - - - - - 2.378c. per lb.
Add the freight, to get the average cost laid down -
at U. S. ports, say. . . . . . . . . . . . . . . . . . . . . . . . . . . .I.4c. per lb.
Making the in-bond price delivered at U. S. Ports 2.518C. per 1b.
Add the Duty which we propose on 96° test, 60c.
on full duty Sugar, and 48c. on Cuban importa-
tions, making average rate actually paid, say. . . . .53c. per lb.
Making refiners’ first cost, duty paid. . . . . . . . . . . . 3.048c. per lb.
Add the margin between price paid by refiners for
Raw Sugar and their selling price on refined, the
past Seven years . . . . . . . . . . . . . . . . . . . . . . . . . . . . .859c. per lb.
Making refiners’ average selling price, under pro-
posed new rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.907c. per lb.
New York.
The beet sugar factories are located in the interior and sell
their sugar above the New York price (see Bulletin No. 12),
but, as this advantage is partly offset by the fact that the trade
will not pay as much for beet sugar as for cane, we have not
taken this advantage in price into consideration in this calculation.
We find that the rate we propose would give beet sugar
factories who produce at 3%.c. per [b. a profit, as a direct result
of the tariff, of .407c. per lb., or $8.14 per ton.
And those properly located and equipped, and who produce
Sugar at 3c., a profit of .907c. per 1b., or $18 per ton.
A Cane Refinery in New York is very glad to make an
average profit of 96 c. to 3-16c. per 1b.
As the average price of granulated, under the present tariff,
has been 4.98c. per pound, the saving to the American people,
under the proposed rate, would be over Ic. per pound, or over
seventy-five million dollars on the amount of sugar consumed
in 1911. .
It is, therefore, apparent that the rate we propose will amply
I8
protect, for all legitimate purposes, the sugar industry of Porto
Rico, Hawaii, Philippines, and also our Domestic Beets. It will
only prevent the over-capitalization of beet sugar plants, and
the improper location of factories, where natural conditions are
not such as to produce the best results. The industry would be
on a much better footing if the Tariff were revised so as to
prevent both of these conditions, which are fundamentally so
unsound.
IN ALL OUR CALCULATIONS WE HAVE PRO-
VIDED FOR THE BEET GROWER TO RECEIVE THE
SAME PRICE THAT HE NOW RECEIVES FOR HIS
SUGAR BEETS. So that, while there is ample room for dis-
puting some of the statements regarding the farmers’ “indirect
benefits” for the purpose of this argument, we can admit all that
is claimed by the Beet Sugar Factories.
ANALYSIS OF BEET SUGAR FACTORY PROFITS.
We have previously called attention to the fact that in all
Our calculations we have provided for the farmer to receive the
Same price, under the reduced tariff rate that we propose, as he
now receives. Therefore the only change will be that the Ameri-
can People will save over seventy-five million dollars annually
On their sugar bill, and thereby receive the benefit of our great
natural advantages (due to our ability to produce cane sugar
at low prices in Porto Rico, Hawaii, the Philippines as well as
leet sugar in our Western States and also on account of our
proximity to Cuba), instead of having the present “special priv-
ilege” tariff that permits these advantages to be exploited for the
benefit of the promoters of those several sugar industries.
If any further evidence is needed to show that these pro-
moters never intended that the beet grower or the consumer
should receive any benefit, we have it in the fact that they have
actually capitalized the tariff’’ (Hardwick report, page 26) when
issuing their stock and require that present rates be continued
only so that they may continue to pay dividends on an excessive
amount of watered Stock.
A fair example is the American Beet Sugar Company.
'They have five million dollars preferred stock, fifteen million
dollars common stock or a total capitalization of twenty million
dollars. They produce only about one and one-half million bags,
say seventy-five thousand tons per year. A cane sugar refinery
in New York with ten millions capital can produce over three
hundred and fifty thousand tons in one year.
This shows why the Beet Sugar Company wants the tariff to
increase the price from I} to 2 cents per pound.
I9
Look at the last statement of the American Beet Sugar Com-
pany and we find their increase in gross earnings was $588,151
for the year ending March 31st, 1912. After paying a 6% divi-
dend on the preferred they had available for dividends on the
common I.3%% compared with Io.95% the previous year.
All this was after they had allowed “$756,976 for depre-
ciation” (note preferred stock is only $5,000,000).
And So it goes. The Union Sugar Company last year paid
IOO% and the Michigan Sugar Company 35% in addition to
the regular dividend of 7%.
These are the people who tell Congress that they “want the
tariff for the benefit of the farmer” and that they will be “ruined”
if it is reduced.
Under a legitimate tariff they would pay a legitimate divi-
dend on a legitimate capitalization.
It is clear that he was quite right when Mr. William Bayard
Cutting, one of the first in this country to engage in the production
of beet sugar, stated: “That the beet sugar industry is profitable
under conditions of absolutely free trade, and that the United
States, being an argicultural country, the industry has nothing to
fear even from the annexation of Cuba.”
LOWPY REVENUE PLAN
Another feature to be considered in connection with the
sugar tariff is the revenue feature. In 1911 the high tariff, which
we have on imported sugar, produced for the Government about
52 million dollars, but this money was collected on only about
50% of the amount of sugar which we consumed, as only this
much was imported from foreign countries and paid duty. The
balance comes from Hawaii, Porto Rico, the Philippines and our
Domestic Beet and Cane productions. The selling price of this
sugar is based on the in-bond value of foreign sugar plus the
duty and its value is enhanced, at least, to the extent of the
Tariff, so that a like amount (52 million dollars) to that collected
‘by the Government is handed to these Producers as an indirect
subsidy. -
Because the Tariff rate on sugar is so high, the 52 million
dollars collected by the Government as a revenue from one-half
of the Sugar we use is 17% of the entire Customs Revenue
of the United States. Is it right that a single necessity of life
should be called upon to bear such a heavy part of the burden?
There is a great difference between a protective tariff and a
revenue measure. The protective rate which we propose would
have produced for the Government in 191 I about $18,OOO,OOO
2O
in revenue. It seems to us that in doing this sugar is producing
its proper share, but if Our Legislature should determine that
sugar alone must produce more revenue, then all the sugar which
we consume should share in producing this revenue, and we
should adopt the revenue or “consumption tax” just as has been
done all over Europe.
Every time a tax of 94.c. per pound is placed on the total
amount of Sugar consumed in the United States, about $19,000,-
OOO is produced.
If, in addition to the $18,000,000 or more collected on imports,
$19,000,000 more revenue is needed from sugar, then require
the refiners of both Cane and Beet sugar in the United States to
pay a tax of 25 cents per IOO lbs. on their production. This would
be purely a revenue measure, like the countries of Europe
have adopted as a proper way of raising revenue, but at a much
lower rate, and would be levied purely from a revenue stand-
point and could be dropped whenever the revenue was not
required.
Under such a provision there need be no tax on raw sugar
made in our insular possessions, Porto Rico, Hawaii, and the
Philippines, or in Louisiana, as the tax of 25 cents per IOO lbs.
would be paid on these sugars by refiners before they were put
on the market. It would, however, be necessary to have a pro-
vision in the law that any refined sugar they might make or any
raw sugar imported from any source for direct consumption
would have to pay the revenue or “consumption tax” of 25 cents
a hundred pounds.
Allowing for a proper increase of, say, IO% in consumption,
such a revision of the sugar tariff would have produced in IQII, a
revenue for the Government of about $39,000,000, and has the
added advantage that it will yield more revenue each year as the
consumption increases. Under the present ruling this is reversed;
and, notwithstanding the fact that our consumption has increased
over 25% in the last seven years, the Government derives less
revenue from sugar now than it did seven years ago.
Such a readjustment as we propose would materially reduce
the price of sugar to the consumer, give a greater protection to
our domestic industry than is granted by Germany, Austria,
France, Holland or Belgium, where beet sugar is produced so
extensively, and afford the Government of the United States a
very handsome revenue.
This method of producing revenue is the one followed by
the various countries of Europe, where beet sugar is produced
so extensively. These countries have adopted what is called a
“consumption tax,” which all sugar, whether of foreign or do-
mestic origin, is required to pay. In Germany this tax amounts.
to 1.5Ic. per pound, in France 2.36c. per pound, Austria 2.39c. per
2I
pound, Holland 4.82c. per pound, and Belgium 1.75c. per pound.
Such heavy taxes as these would be entirely unnecessary in this
country, but it would be perfectly feasible for us to collect all
the revenue required from sugar in this way, and the rate could
be reduced or increased as warranted by the situation.
A favorite plan of those who profit by our tariff is to add
the duty and the consumption tax and hold this up as the “pro-
tection” given the beet sugar industry in Europe. They will
say: “The tariff in Germany on raw sugar is 1.98c.” They add
to the 47c, rate of duty the consumption tax of $1.51 and get
$1.98 but they do not say that all sugar produced in Germany
must also pay the consumption tax of $1.51 so that the protection
is only the tariff rate of .47c. per pound.
This is, of course, only one of the many ways of getting
tariff favors by false information.
TARIFF HANDICAPS TO EXPORT BUSINESS.
Our domestic sugar industry contends that the Tariff is not
a handicap to a domestic manufacturer or preserver doing an
export business. This is not a fact; it is a serious handicap.
(Senate Hearings, pages 457-458). -
The matter of collecting drawback is a serious proposition
to the small manufacturer. He cannot afford to be without his
money three, six or nine months as is required in getting settle-
ments of drawbacks from the Government. These drawbacks
are collected through the Customs House Brokers in New York,
and a great deal of that business is done on the basis that the
Customs House Brokers shall be paid a percentage of the amount
collected. s
The exporter is required to get certificates of origin from
the Refiner, and, of necessity, there is a great deal of red tape
connected with these drawbacks.
Another serious difficulty is that when a manufacturer pur-
chases sugar he does not know its origin. He may manufacture
his product from that sugar, quote a price for export based on
the assumption that he is going to receive drawback, secure the
business and make the shipment, after which he makes applica-
tion to the Refiner for a certificate or origin only to find that the
sugar has been manufactured from Porto Rican, Louisiana,
Hawaiian or Philippine Raw Sugars, on which no duty has been
paid, and therefore, no drawback can be collected; so that the
manufacturer attempting to do this export business is simply
out that much money. -
To the knowledge of the writer this has often happened, and
22
under such conditions it does not take long to discourage an
export business.
A reduction of the Tariff on sugar would not end with the
direct benefits derived by consumers and those handling sugar,
Such as jobbers, retailers, transportation companies, refiners, etc.,
but it would also widen the market for American canners, pre-
servers, and other industries, in which sugar is an important
factor, who are, at the present time, unable to do much in the
way of an export business, because of the high prices they are
forced to pay for their sugars.
A material reduction in the sugar tax would at once enable
our canners to greatly increase their exports, thus creating a
demand for the fruits, berries, etc., of our farmers, which now
go to waste for lack of a market. It would likewise increase the
demand for all products used in these industries, such as tin
plate, glassware, labels, cases, etc. The advantages to our farm-
ers and people generally from the increased markets for these
products are certainly worthy of consideration.
PHILIPPINE SITUATION.
PHILIPPINE SUGARS.—We have referred, in Bulletin
No. 4, to the fear which the Domestic Beet Sugar Factories have
of Sugar production on a large scale in the Philippine Islands.
There can be no question but that the Philippine Islands have
great natural advantages for producing Sugar, but they now
have three serious handicaps. First, lack of suitable labor; sec-
ond, the long distance from the American market, which is quite
a handicap because of the heavy freight rates which must be
paid, and, because it takes Sugar sixty days from the time it is
shipped until it reaches New York. Buyers are seldom willing to
purchase so far ahead, So that this sugar has to take the risk
of the market while in transit; third, because of the fact that
the Sugar now made in the Philippines is of a very low grade.
There is much loose talk by the lobbyists for the Domestic
Industry to the effect that sugar in the Philippines can be pro-
duced for I}4c. per pound, and that it is unfair to expect our
domestic sugar to compete with this product. What they fail
to state is that the sugar which is being produced at this figure
is low in grade, testing 80° to 88° and sells from 7Oc. to 1%.c.
below the price of the 96° Centrifugal raw sugar, which is the
standard basis.
To produce sugar in the Philippines on a large scale will
require the installation of modern centrals so as to produce a
23
better grade of sugar, and when this is done it will probably
be found that the cost of production is not much different from
the cost of producing the same grade of sugar in Cuba or Hawaii.
Capital would be attracted to the Philippines and modern
centrals established if it were not for the “joker” in the Payne-
Aldrich Tariff due to the efforts of our Beet Sugar Producers,
who, by having the following clause inserted in the Bill, got the
better of President Taft’s desire to do the right thing by the
Philippine Islands and admit their sugar free of duty without any
restriction. The clause we refer to reads as follows:
“After the admission of 300,000 tons in one fiscal year, any
further importations from the Philippines shall pay regular duty,
as though they were imported from a foreign country,” and it is
further provided: “That under rules and regulations to be pre-
scribed by the Secretary of the Treasury preference in the right
of free entry of sugars to be imported into the United States from
the Philippine Islands, as provided herein, shall be given to pro-
ducers of less than 500 tons in each fiscal year.”
This limits free importations and appears to cater to the
small producer but in fact it effectually stifles the production of
sugar in the Philippines on a large Scale.
The only method by which the industry can be successful in
the Philippines is by following along the same lines as in Porto
Rico, Cuba, Hawaii, Java and all the large sugar producing
countries. Large centrals or sugar mills must be established and
these own or lease large tracts of land and also contract with the
farmers in the surrounding country to supply them with Sugar
Cane. The Mills grind this cane and produce raw sugar, which,
in turn, is sold to an exporter, who contracts with Refiners in
the States for the sale of entire cargoes of Sugar, ranging any-
where from 3,000 tons to 5,000 tons each.
It is just as impracticable for the Small sugar planters in
the Philippines to manufacture and sell to the New York Refiner
his own sugar, as it would be for each farmer, in the States, who
produces wheat, to have his own flour mill. •
It is unreasonable to expect capital to go to the Philippine
Islands and build these centrals when they know that just as
soon as the industry has been placed on its feet, and a production
of 300,000 tons annually made possible, the law expressly pro-
vides that they will be the first to be discriminated against in their
shipments of sugar to the United States.
The crude methods now employed in the Philippines result
only in the production of low grade sugar, testing around 80'
to 88°, for the sale of which in the States they are to a great
extent left to the tender mercies of the Sugar Trust, as the
other refiners greatly prefer to melt only centrifugal sugar, testing
around 96°, and only use the low grade sugars in a small way.
24
If high grade sugar was made the Islands would at once have
a broader market.
“REFINERS’ DIFFERENTIAL.”
As a general misunderstanding regarding the purpose and
application of “Refiners’ Differential” seems to prevail, we wish
to explain just what it comprehends and why it is retained in our
present Tariff Law.
As explained before the Senate Finance Committee, the
actual difference in the Tariff tax between raw and refined sugar
is only seven and one-half hundredths of one cent per pound, the
duty on raw sugar, 96° test, being I.6850. per pound. The Payne-
Aldrich Bill making provision for .035 of a cent degree to be
added, if above, and substracted, if below, 96°. For example:
Sugar 96% pure pays a Tariff rate of I.6850. per pound.
Sugar 97% pure pays a Tariff rate of 1.72c. per pound.
Sugar 98% pure pays a Tariff rate of I.775c. per pound.
Sugar 99% pure pays a Tariff rate of I.79c. per pound.
On the same basis IOO%, or refined sugar, would pay a duty
Of I.825c.; but the duty upon refined sugar is I.90c., and the
difference between 1.90c. and I.825c. is seventy-five one-thou-
sandths of one cent. This is what is called “Refiners’ Differ-
ential,” and is what Senator Lodge proposes to abolish. Because
the first cost of the Refiner's product is increased by the Tariff,
naturally their finished cost is higher as a result. To offset that,
Refiners, under the present Schedule, have a protection of but
seventy-five one-thousandths of a cent per pound. It would be
perfectly proper to give our Refiners no protection whatever on
their finished product if their first cost was not increased by the
Tariff, but it is manifestly unfair to increase their first cost in
this manner and then require them to compete with a foreign
refiner, who does not labor under this handicap. All countries
recognize this feature in their Tariff laws, even where the Tariff
is low, as in Germany, Austria, France and Begium, Refiners
have a protection of .050. per pound, the import duty being 53c.
on refined and 48c. on 98° test raw sugar.
When raw sugars were placed upon the free list in 1891 the
duty of 50c. per IOO pounds (which was excessive and out of all
reason) was retained on refined, thereby admitting the right of
refiners to protection when the raw material was free. While
this emphasizes the point that we make, we do not agree with
the theory that a scientific Tariff would give Refiners, in this
country, any protection on their finished product, if raw sugars
were admitted free, as our Refiners should be able to operate as
25
cheaply as Refiners anywhere in the world; but we do contend
that a Tariff increasing Refiners’ first cost on their raw material
would be most unscientific if it gave those Refiners no protection
on their finished product. The desire expressed by Senator
Lodge in his Report for the Finance Committee to heavily protect
the Domestic Cane and Beet Industry, and, at the same time,
attempt to do this by abolishing “The Refiners’ Differential,”
exhibits cross purposes and lack of scientific understanding of
the situation. Such a proposition would make us appear ridicu-
lous in the eyes of the sugar men the world over.
A scientific Tariff, based on the principle of protection, must
necessarily maintain the protective theory throughout, and this
cannot be done by taxing imported raw sugar at high rates, and
at the same time abolish Refiners’ Differential.
“THE DUTCH STANDARD."
Plausibly pretending concessions, while, actually, practicing
deception, the Senate Finance Committee advocate abolition of
“The Dutch Standard” which they, craftily, nullify, by inserting a
“wood-chuck” branding clause. Willett & Gray comment on this
in their Statistical Sugar Trade Journal, of May 23, as follows:
“No foreign refiner is likely to go to the trouble and expense
of branding the polariscope test on packages of soft sugar and
guaranteeing them to pass the United States customs and Pure
Foods Laws within one-half of a degree after an ocean voyage.
The clause being in a tariff bill, it was, at first, supposed to apply
on foreign imports only; but we learn that Senator Lodge states
that it is intended to apply to domestic refined sugar also. Here
again the clause defeats its purpose, for it is a well known fact
that all soft sugars, raw and refined, deteriorate rapidly in polar-
iscope test with changes in transportation and weather. If pack-
ages are branded at refineries on a stated date and the sugars
re-tested at a latter date, either at refinery or in the country,
a greater loss than one-half a degree is certain to be found and
even two degrees difference might appear,
“This feature foreshadowing trouble under the Pure Food
Law, together with the extra trouble and expense attending the
testing and branding, indicating increasing cost to consumers, is
almost certain to curtail the manufacture here of soft sugars and
defeat the object of the clause.
“There is no infringement of the Pure Food Law in the
present manufacturing of soft refined sugar, as can be clearly
shown from an analysis of such manufacture. Polariscope test
26
may be changed, but intrinsic merit of soft sugar is not changed
thereby, as shown by the more perfect test of analysis.”
The elminination of “The Dutch Standard” without any
clause qualifying the effect of its operation, would lead to the
following natural and inevitable consequences. It would expose
the American Refiner, and, especially, Louisiana Planters to
unequal competitive conditions.
“The Dutch Standard” in the present law, which requires all
sugars over No. 16 Dutch Standard in color to be taxed as refined
Sugar, has prevented foreign refiners from semi-refining raw
Sugars and manufacturing a product light in color, but low in test,
to be exported to the United States and sold to the trade for
direct consumption; the import duty on same being assessed at
the same rates that our refiners would have to pay for raw sugar
of the same low saccharine content. The value of this sugar
to the trade is not based upon the saccharine content but upon
its color, character, etc. Only about IO% of our consumption
consists of yellow or soft sugar.
Under free sugar, or a low rate of import duty, such as the
European countries have, there is no reason for this clause, the
Only excuse for it being when our refiners' first cost is materially
increased as it is under the present rates of duty.
It, therefore, appears that the only object, at this time, in
removing the “Refiners’ Differential” and “The Dutch Standard”
clause is the recognition of the popular demand that “something
must be done” with the Sugar Tariff and the desire to make
as little real change as possible, at the same time go before the
voters next Fall with the statement that “we have revised the
Sugar Tariff,” just as this element in the Republican Party made
the same claim two years ago, when they reduced the Tariff on
refined sugar (of which none is imported) five one-hundredths of
one cent per pound, knowing in their hearts that by no possible
chance could it reduce the price of sugar one mill to the consumer.
EFFECT OF OUR TARIFF WALL AND CUBAN
RECIPROCITY.
The full duty upon 96° test centrifugals (the standard of test
upon which all raw sugars are sold) is 1.6850. per pound, the
Payne Bill also providing for .035c. per degree to be added if
above, or substracted if below 96° test. On Refined Sugar the
duty is I.90c. per pound. This represents the height to which
our “Tariff Wall” has been raised for the protection of the
Domestic Sugar Interests against foreign invasion. By a breach
in the Tariff Wall raw sugars from Hawaii, Porto Rico and to
the extent of 300,000 tons in any one year from the Philippines,
27
/
are allowed to enter free of duty, so the sugar interests of these
islands take advantage of the full protection accorded the Do-
mestic Interests. -
By reason of the maintenance of this high Tariff Wall against
the world at large, the consumer derives no benefit from the
Open door attitude assumed towards Porto Rico and Hawaii, or
the limitation placed upon the Philippines, because the selling
price of this sugar is based upon the in-bond value of foreign
Sugars plus the duty.
In recognition of our moral obligations to Cuba, a Reci-
procity Agreement with that island was concluded on December
28, 1903, by which, in return for concessions made to Our imports,
we agreed to allow the entry of Cuban sugar at 20% under the
full tariff rates, or upon the basis of I.348c. per pound for 96°
test raw Sugar. - -
This was done for the purpose of stimulating, in Cuba, the
development of their principal product, by affording a certain
market, and thus assisting her towards the establishment of a
settled form of government, founded upon a sound financial
basis. Any intention of lowering the price to the American
consumer was not involved. -
Since this Reciproicty Agreement, however, an impression
has been spread abroad by opponents of tariff reduction that
the real basis of protection to be considered is now the Cuban
rate of I.348c., instead of the full rate of I.6850. per pound on
raw sugar or I.90c. on refined. What gives rise to this supposi-
tion is the fact that almost all of the duty-paying raw sugars,
which comprise half of our importations, come from Cuba, and
since they are allowed to enter upon the basis of I.348c. per pound
they must be sold at a lower duty-paid price than the in-bond
price of foreign sugar, plus the full duty. Let us show how
this does not necessarily follow. • ‘
Taking the record of the Department of Commerce and
Labor Bureau of Statistics, No. 240, page 517, it shows that the
average cost per pound free on board in foreign countries of the
raw sugar imported 1905-191 I, inclusive, was 2.378c. per pound.
To this we must add the freight to get the average cost laid
down at United States ports, . I4c., making the in-bond price
at United States ports 2.5180. During these seven years the
margin between the price paid by Refiners for their raw material
and the selling price on refined was 859c. per pound. If Refiners
did not have to pay any duty and added this margin to the in-bond
price of the raw material, 2.5180. per pound, it would have made
their average selling price for these seven years 3.377c. per
pound. Willett & Gray show that the average New York Re-
finer's price for these years was 4.98c., or an increase by the
Tariff of I.603c. per pound. -
28
It is, therefore, apparent that our high Tariff enhances the
value of the domestic producers’ sugars at least to the extent
of I.603c. per pound, which is handed to them as an indirect
bounty. In the same way we have placed Cuba inside our Tariff
Wall, not on the ground floor, but 20% from the top, and the
ability to take advantage of this concession is entirely in the
hands of the Cubans. The American consumer has received some
benefit from this reduced Tariff rate due to the demoralized
methods of the Cubans in disposing of their product; but this
condition will be changed when they hold back their product as
the Planters do in Hawaii and Porto Rico, where they enjoy
full concessions. Here the Sugar Interests have banded to-
gether in an Association so as to insure their getting all the
benefits from the full height of the Tariff Wall to the same
extent as do the Domestic Sugar Interests.
Hence it is evident that only by lowering our Tariff Wall
so as to invite competition from the world at large, rather than
by confining concessions to Hawaii, Porto Rico, the Philippines
and Cuba, can the abnormal price to the American consumer be
reduced. r
CAUSE OF THE TARIFF BOARD.
The Republican National Platform of 1908 went on record,
in a special manner, in favor of tariff revision, and declared for
protection based on the “difference between cost of production
at home and abroad together with a reasonable profit to American
industries.” In order to obtain the information necessary to
carry into effect this policy, President Taft recommended to
Congress the creation of a Tariff Commission to be composed of
experts to investigate conditions and propose revisions. This
was vigorously opposed by the conservative, stand-pat element,
because impartial investigation along such proposed scientific
lines would expose the fallacy of the prevailing high tariffs. A
Tariff Board to work under the direction of, and report to the
President, was finally created, in the belief that it would serve
to expedite the cause of scientific tariff revision.
EFFECT OF THE TARIFF BOARD.
This Tariff Board (of which so much was expected), has
been in existence for over three years, and appears to have made
little or no progress towards the end for which it was created.
Ignoring the immediate practicable advantages to be derived
by the public through consideration of the simple Sugar Schedule
(which is burdened with 17% of our entire customs revenue),
they have (at someone's suggestion) directed their attention to
29
an examination of the intricate Steel and Chemical Schedules.
Hence, the Tariff Board, as now constituted, has only served to
afford a pretext for delay to the very element which opposed its
creation. Their plea is, “How can we determine what ‘the differ-
ence between the cost of production here and abroad' is, until the
Tariff Board reports?” “How can we act intelligently without
this information ?” Thus they, craftily, make use of the means
intended for expedition to indefinitely postpone revision of the
very Schedule over which the people are expressing the most
dissatisfaction.
WHAT IS THE COST OF PRODUCTION?
Forced to take some action on the Sugar Schedule by the
passage of the Free Sugar Bill through the House by a large
vote, the Senate, a majority of whom are Republicans who desire
to do little or nothing in the way of real Tariff revision, is now
attempting to maintain the present rates, but it makes no effort
to justify this position on the “difference-in-cost-of-production”
theory. Were they disposed to act on their platform theory we
desire to inquire “What is the basis of cost?” -
Is is to be the $2.70 per hundred pounds reported as the
average cost to produce granulated sugar for the year 1910 by
the Spreckels Beet Sugar Co., of California, on page 2379 of the
Hardwick Hearings, or the other extreme of $8.O2 per hundred
pounds reported as the cost “to produce and sell” for the years
1908-1909 by the Las Animas Beet Sugar Factory, of California,
on page 342O of those same Hearings? Is it to be the $3.75 per
hundred pounds it is reputed to cost to produce Louisiana raw
cane sugar, together with the expense of refining that increases
the cost of granulated sugar to $4.35 per hundred pounds, or
is it to be the $3.54 per hundred pounds that the Hardwick Com-
mittee unanimously report as the average cost to produce beet
granulated sugar P Are the costs to produce several of The Great
Western Company’s factories, ranging from $2.76 to $2.98 per
hundred pounds to enter into the calculations? Out of this chaos
of costs, what would be arrived at as the basis of difference?
HOW AND WITH WHOM WOULD COST BE
COMPARED P
Would our cost to produce beet sugar be compared with the
costs of Germany and Russia, and our cost to produce raw cane
with that of Cuba? If so, could we ever reconcile the discrepan-
cies that would, inevitably, arise or arrive at any common basis
upon which we could predicate a cost to produce either here or
abroad P - -
3O
Again we ask, “What is the cost to produce here? How is it
to be determined P. With whom abroad and in what manner
is this cost to be compared P Why did the last Republican Plat-
form abandon this basis? s
A DELUSION.
In order to delude Congress and thus preserve the present
high rate of duty for their special benefit, representatives of estab-
lished Beet Sugar companies resort to endless cunning expedients.
A common decoy is the hypocritical attitude of philanthropy and
sacrifice they assume towards expansion of the beet sugar cause,
in general, so as to convey the impression that they are prompted
by purely “disinterested” motives in advocating this extension.
They even go so far as to claim that the principal effect of main-
taining the present Tariff will be to promote exclusive develop-
ment of beet-sugar production through the formation of new
companies and the establishment of additional plants. They
endeavor to hide the fact that four large companies now produce
over 70% of our total beet-sugar production. In other words,
they adopt the anomalous positon of seeking protection against
foreign invasion, and intrusion from the independent cane-refiners
of the Atlantic Coast, while they appear to welcome the more
demoralizing competition of rival beet sugar factories in their
very midst. In order to expose this delusion and the insincerity
of purpose that actuates it, let us consider how this expansion
would be apt to work out in actual practice and just what have
been the results of past experience.
CONTROL OF BEET SUGAR TERRITORY.
The desirable localities for the profitable production of beet
sugar are certain sections of California, Colorado, Utah, Idaho
and Michigan, and this territory is now well covered with, and
dominated by, formidable concerns. Would the heralded expan-
sion begin in California, where the Trust and the American Beet
Sugar Company have preémpted the most available locations and
Operate the four largest factories in America on such a scale
that that State turns out 27% of the whole country’s beet-sugar
productions and ship out to all parts of the West?
Would it be encouraged in Utah or Idaho where now the
Trust, in co-operation with the Mormon Church and the Mor-
mons, controls all of the eleven factories through consolidation
and absorption of rival companies? Would it be attempted in
Colorado, where the territory is divided between the Trust and
the American Beet Sugar Co., the former controlling nine fac-
3I i i- * * > -s - a -
tories in the North, through the Great Western Beet Sugar Com-
pany, and the latter, three in the South, out of a total of sixteen
factories? In the Trust territory rival companies have been
either exterminated or absorbed, and, according to the testimony
of Chester S. Morey, of the Great Western Company, his pre-
decessor, H. O. Havemeyer, served notice upon prospective
investors that he regarded this territory as exclusively his. Would
Michigan, already dotted with eighteen factories, of which the
Trust controls eight through the Michigan Beet Sugar Co. and
two smaller companies, be sought as a field P As the Trust also
maintains profitable factories in Montana and Nebraska, as well
as strategical ones in Minnesota, Iowa and Ohio, where would
this expansion be apt to meet with the necessary impetus? It
looks as though this expansion receives its welcome only before
Congressional Committees? * - -
PAST EXPERIENCE.
The Department of Agriculture mentions 355 beet-sugar
projects that were abandoned between 1897 and IQIo. Since
the Tariff, by which they might have been affected, has remained
the same, does this bear out the theory of expansion through the
instrumentality of the Tariff P Doubtless the prospective in-
vestors, after looking over the field and weighing all considera-
tions, were restrained rather by the form of competition they
would be obliged to encounter than any apprehension over the
Tariff. After reflection, they concluded they needed more stimu-
lation than the Tariff to cause them to expand.
Hence it is both perfectly safe and apparently plausible for
the representatives of the Beet Sugar Factories, dominated by
the “Sugar Trust,” to pose for this. kind of competition which
they know will never materialize. Having arranged the field so
formidably that they have already frightened away 355 projects,
no wonder they are anxious to have the Tariff maintained so that
they may continue to reap an exclusive harvest!
So the alleged purpose of maintaining the Tariff turns out
to be a delusion, and the expressed desire for expansion by build-
ing new and independent factories the usual sugar-beet myth !
TESTIMONY OF COLORADO BEET GROWERS.
In a previous bulletin we have pointed out the improbability
of beet sugar expansion on account of the preoccupancy of avail-
able territory by companies controlled by the Trust, and other
companies already in the field, even with Tariff stimulation.
32
We now propose to show from evidence taken before the
Hardwick Committee how the farmers and growers feel about
engaging in this expansion, and what restrains them. On page
3270 of the Hardwick Hearings, Mr. Combs, of Colorado, after
expressing the opinion that the way to promote expansion was
by co-operation between the farmers and the factory, whereby
the farmer would have a share in the factory profits, is asked
this question:
Mr. Fordney: “You would have no trouble about doing that
if you were Satisfied that the Tariff on Sugar was not going to
be tampered with P’’
Mr. Combs: “Yes, naturally we would. People are afraid
of what is termed the Sugar Trust. We know of some factories
that have been started and put out of business; they are out of
business at least to-day, and capital is about the most timid thing
we have. They will say: “We do not want to go against the
Trust proposition.’” - \
On page 327 I the following testimony appears:
Mr. Malby: “How will the consolidated interests, say of the
Great Western Sugar Company, affect you?”
Mr. Combs: “In a great many ways. I will give you one
instance. In the case of this Brighton factory, the party made
an arrangement with a man, ‘I will operate this factory, but
when I commence to put the finished product in the warehouse, I
will not get the money to conduct this campaign, and will you,
furnish me the amount of $3 a bag on this sugar as I put it in
the warehouse and take warehouse receipts for it?” He answered
that he would ; he agreed to it. Well, he started in and on the
first five carloads he asked for his money, and the man said:
‘Well, I do not know ; you are not running this factory right, or it
does not look just right to me, and there is some danger perhaps,
and I believe I cannot furnish you with the money.’ Well, he
was out of the race, of course. He had no funds. On investi-
gation he found out that this individual was a director in the
Great Western Sugar Co. So then he was broke.”
Again, on the same page: -
Mr. Malby: “Of course, there are indepednent bankers and
moneyed men who would be willing to lend money under usual
trade conditions in Colorado as well as elsewhere?” t
Mr. Combs: “Yes; but if they could be shown before
the time comes that it would be more to their interest not to do
it, the money would probably not be available. * * * My
experience in twenty years of business has taught me something,
and I know the rules and tricks and how those things come about,
and whether you can prove them or disprove them does not
matter.”
On pages 334I and 3342 of the Hardwick Hearings occur
33
these observations of Mr. Dakan, of Colorado, regarding invest-
ment in new factories and the relation of the Tariff to expansion:
Mr. Dakan: “I want now to get at the result of this con-
ference. I asked him, why it was, if the profits were as great
as he said they were 30 to 40 per cent. On the investment required,
that he could not get the independent capital to build the factory,
and he did not know. He said capital was too timid to go in
alone, and that the farmers would have to join.”
Mr. Fordney: “HE DID NOT TELL YOU THAT THE
A GITATION OF THE TARIFF WAS THE BIGGEST
STUMBLING BLOCK ?”
Mr. Dakan: “NO.”
Mr. Fordney: “THAT IS TRUE, THOUGH, IS IT
NOT”
Mr. Dakan : “NO.”
Mr. Fordney: “WOULD YOU PUT YOUR MONEY IN
IF YOU KNEW. THE TARIFF WAS GOING TO BE
TAKEN OFF SUGAR.?”
Mr. Dakan. : “I WOULD NOT PUT MY MONEY UP
AGAINST THE GREAT WESTERN SUGAR CO.”
Mr. Fordney: “I did not say against the Great Western
Sugar Co.” -
Mr. Dakan: “In Colorado P”
Mr. Fordney: “Anywhere; on Pike's Peak?” -
The Chairman: “THE QUESTION WAS: ‘WOULD
• YOU PUT YOUR MONEY IN NORTHERN COLORADO
IF YOU THOUGHT THE TARIFF WOULD BE TAKEN
OFF SUGAR.’” Y
Mr. Dakan: “YES: I THINK THE BEET SUGAR IN-
DUSTRY IN NORTHERN COLORADO IS SO FA VORED
BY CONDITIONS-CLIMATE, SOIL AND WATER AND
OTHER CONDITIONS-THAT SUGAR CAN BE PRO-
DUCED THERE CHEAPER THAN IN. MANY OTHER
SECTIONS.”
Mr. Fordney: “COULD BE PRODUCED IN COMPE-
TITION WITH FREE FOREIGN IMPORTED SUGARS,
AND YOU WOULD NOT HESITATE TO PUT IN YOUR
MONEY 9”
Mr. Dakan: “AS FAR AS I CAN DETERMINE, I
THINK THAT IS TRUE.”
So even with the Tariff maintained there would be little
likelihood of beet sugar expansion in Colorado in the preserves
controlled by the Trust on account of the fear of extermination
through its methods of competition. And this is just the state
of fear that the Great Western Sugar Company, controlled by
the Trust, aims to bring about in order to avoid competition and
monopolize trade in that desirable field of operation |
34
TESTIMONY OF COLORADO BEET GROWERS.
We have called attention, in a previous bulletin, to the solici-
tude beet Sugar interests feign toward the farmer (while in Wash-
ington). Through testimony taken before the Hardwick Com-
mittee we wish to show how genuine this solicitude is, how they
carry it Out in practice (away from Washington), and how the
farmer regards the Beet Sugar Companies.
On pages 3218 and 3219 of the Hardwick Hearings, this
testimony, by a beet-grower of Colorado, appears:
Mr. Fordney: “Do you want to tell us why you are in
favor of a duty on sugar?” t
Mr. Bodkin : “No ; I do not want to particularly.”
Mr. Fordney: “You are just in favor of retaining the duty
anyway?”
Mr. Bodkin : “Yes; I thought maybe you would want to
know why I am in favor of it.”
Mr. Fordney: “Yes; I would like to know why. I want
all the facts in the case.”
iMr. Bodkin : “I believe I stated that yesterday. We figure
that as it is the Great Western is paying us this price and if
there was no Tariff they would not pay up any more money; and
he said that if they took off the Tariff, then he could never get
the farmers to raise the beets, and therefore he had to make the
money while he could.”
Mr. Fordney: “Who made that statement to you?”
Mr. Bodkin : “Chester Morey.”
Mr. Fordney: “Chester Morey P’’
Mr. Bodkin : “Chester Morey, the President of the Great
Western Sugar Company. Then we figure that if the Tariff was
taken off he would still tighten down on us, instead of loosening
up, but if he would loosen up one of those dollars we would cover
him up with beets, and perhaps it would not hurt the welfare of
the Nation.”
Mr. Fordney: “But he did not loosen up with that dollar?”
Mr. Bodkin : “No ; but we have got him in a fair way.”
Mr. Fordney: “Well, that is good, and I am glad to hear
it. You should have your fair share of profit in the business.”
Mr. Bodkin : “That is all we have got to say concerning the
Tariff. If we could get a little of it, we would favor the Tariff,
and we favor the Tariff in hopes to get a little of it, because we
need it.”
On page 3267 this testimony, by another beet-grower, may
'be found :
Mr. Jacoway: “Another thing we would like to have you
state to the Committee, what is the attitude of the farmers toward
the factory P’’
35
Mr. Combs: “Well, generally, pretty bitter.”
'Mr. Jacoway: “Do all the farmers entertain hostile feelings
towards the factory P’’
Mr. Combs: “Apparently so. You could go out and talk to
a hundred men who grow beets, and while they might not be
hostile individually they express no personal hostile sentiment
or anything of that kind, still they all feel like they were working
for the sugar refiner without any profit to themselves. This is
the way they feel.”
Mr. Jacoway: “But your grievance is that the man who
plants the beets and tills them and brings them to fruitage, and
sells them to the factory, gets far too little as compared with
what the factory gets after he takes his beets and produces the
sugar and sells the sugar to the Consumer.”
Mr. Combs: “That is where the whole trouble arises.”
Mr. Jacoway: “You say that the farmer just about breaks
even on the average from One crop to another?”
Mr. Combs: “Practically so; that is the way the figures
show. That is the way they all seem to talk, too. Of course,
Some of us make money, just as I did, but we have to break
the average to do it and have to be lucky.”
On page 3270 appears this testimony:
Mr. Combs: “But we have to take all these things into con-
sideration, and that is why I say the grower gets no profit. We
are looking to the indirect benefits that Mr. Truman G. Palmer
tells us about. We have not seen them yet, but they may come.
* * * But I do object to one class of individuals getting
all of the benefit of this duty.”
On page 3331, Mr. Dakan, of Colorado, complains:
Mr. Dakan: “That institution, the Great Western Sugar
Company, pockets the tariff and the farmer pays it, and there
is no benefit from it in the way of revenue to the Government,
while the man that consumes the sugar that is imported, pays a
revenue to the Government. The Government gets a revenue
from that sugar, but we of Colorado pay our money into the
coffers of the Great Western Sugar Company, and they pocket
that tariff by adding the amount of the tariff. They not only
add to the price of sugar the Tariff, but they add the freight.”
This interesting revelation occurs on page 3276 of the Hard-
wick Hearings: -
Mr. Raker: “Did anyone discuss with you about your coming
here and discuss the conditions of the farmers in Colorado, and
the sugar conditions there, related to the Great Western Sugar
Company?” -
Mr. Combs: “YES, SIR. THE GREAT WESTERN
SUGAR PEOPLE DID.”
Mr. Raker: “What was the purport of the conversation.”
36
'Mr. Combs: “Well, they were very much concerned about
what we were going to say down here, and the PRINCIPAL
THING THEY SEEMED TO BE CONCERNED ABOUT
|WAS MY ATTITUDE ABOUT THE TARIFF.”
The Great Western Sugar Company is one of the companies
organized by the Sugar Trust.
So it would seem as though the only time the Beet Sugar
Interests are concerned about the farmer is when they want to
intimidate him or use him as a cat's-paw to rake away objections
from a burning Tariff issue !
LATER COMPARISONS OF EUROPEAN AND AMER-
ICAN PRICES FOR BEETS.
The representatives of the Beet Sugar Factories, when in
Washington, continually harp on the need of a high protective
Tariff, but make no effort to justify their position by showing
that the cost to produce beet sugar in this Country is materially
different from the cost of production abroad. What is it that
enters into the cost of production in this Country that would make
it higher than abroad?”
In the production of beet sugar, there are two distinct opera-
tions. The growing of the beets by the farmer, and the manu-
facture of these beets into sugar, by the factory. In which, if
either, of these two operations is the cost greater here than in
Europe? Sugar beets are an agricultural product, and it is evi-
dent that our beet sugar factories do not admit that the cost to
produce sugar beets in this Country is higher than in Europe,
'because they refuse to pay the farmer a higher price for his
beets, delivered at the factory, than is paid in Europe. Testimony
to this effect was presented before the Hardwick Committee,
Page 3369, and before the Finance Committee of the Senate,
Pages 32O and 322, and it was shown that the average price
received by the farmer for beets in this Country did not exceed
$5.50 per short ton. It was also shown that in Europe the aver-
age price for 191 I-1912 was $5.56 per long ton, in addition to
which the farmer received his beet seed from the factory free and
he was returned 40 to 60% of the beet pulp without charge. Here
the farmer must buy his beet seed from the factory and none of
the pulp is returned to him, but it is sold as a by-product by the
factory at a nice profit.
We now desire to amplify and reiterate this point by quoting
from the “Balance Sheet and Trade Report of the Dirschau (Ger-
many) Sugar Factory, for the Season 1911-1912,” as follows:
37
“We have followed the example of other factories and have
increased beet prices M.–.40 per IOO kilos for IQI2-1913, viz.:
“$5.80 per long ton—shipment by end of October.
“$6.O4 per long ton—shipment first half November.
“$6.28 per long ton—Shipment from November 16th to clos-
ing down of Factory. e
“Rebates for freight will be paid as usual. The beet growers
will receive additional payments if the profits ‘of the stockholders
amount to more than 6%. (Our factories that have paid as much
as IOO% dividends would regard this as ‘confiscation of prop-
erty.”) During the past year, 1911-1912, we have made additional
payments to beet growers, as per contract, at the rate of 89C.
per ton, and we have voluntarily paid our regular shippers an
additional rate of 79c. per ton.”
In the annual report of F. O. Licht, Statistical Bureau for the
Beet Sugar Industry of the German Empire for the Season
191 I-1912, the following occurs:
“The official (average) price of beets during the years 1910–
II were 5.44; 191 I-I2, 5.56.”
So it develops that our beet sugar factories themselves present
the proof that the grower in this Country is entitled to little or
no protection. tº
Certainly it cannot be successfully contended that the factory
cost of manufacturing beet sugar is greater in this Country than
abroad. The operation is a mechanical one. The cost of labor per
pound of sugar produced is very small. The cost of fuel here is
less than in Europe and the average size of the factory is larger,
so that operating expenses here are reduced in this way.
It is apparent, then, that our high protective Tariff is main-
tained solely in the interest of the promoters of the American
beet-sugar factories, who enhance their price of sugar to the
consumer to the full eatent of the Tariff, and deal with the farmer
on practically a free trade basis. .
BASIS OF COST AND CAPITALIZATION OF BEET
SUGAR COMPANIES.
In previous bulletins, we have exposed how the Beet Sugar
Interests attempt to justify the Tariff by feigning solicitude for
the welfare of the farmer (while in Washington), which they fail
to carry out in practice, at home. -
We now propose to show that, the main use they make of
Tariff concessions (which they should, in fairness, share with
the farmer) is, to float watered stock and promote over-capitaliza-
tion, in their several companies. *
38
THE BASIS OF COST OF BEET-SuGAR FACTORIES.
At the Tariff Hearings, before the Payne Committee of
1908-1909, F. R. Hathaway, Secretary of the Michigan Sugar
Company, estimated the cost of a beet-sugar factory investment,
on the basis of $1,000 per ton, of daily slicing capacity. Tariff
Hearings, Ways and Means Committee, Page 3292. Henry T.
Oxnard, of The American Beet Sugar Co., made the same basis
of estimate before the Hardwick Committee. Hardwick Hear-
ings, Page 376. This was also the estimate of Charles W. Nibley,
the promoter and organizer of the Amalgamated Sugar Co., of
Utah. Hardwick Hearings, Page IOOO. s
E. U. Combs, of Colorado, testified before the Hardwick
Committee, of an estimate of $367,OOO submitted to him, for the
erection of a beet-sugar factory of 600 tons daily slicing capacity,
which would be on the basis of less than $600 per ton, instead
of $1,000. Hardwick Hearings, Page 3283.
Before the Hardwick Committee, Hon. Joseph L. Fordney,
Member of Congress from Michigan, and a most uncompromising
beet-sugar advocate, made this admission :
“I think, Mr. Chairman, we have it in evidence, over and
over again, that the contract price is $1,000 per ton.” Hardwick
Hearings, Page 3285. So the basis of cost of a beet-sugar factory
may, safely, be said to be, no more than $1,000 per ton, of daily
slicing capacity.
BASIS OF CAPITALIZATION OF BBET-SUGAR
COMPANIES.
According to the Census Report of 1910, the combined daily
slicing capacity of 68 beet-sugar factories in the United States was
52,750 tons. On a basis of average cost this would permit of a
capitalization of $52,750,000. These factories, according to the
same Census Report, were capitalized for $129,629,000, or 2%
times their cost. These factories produced 457,000 tons of Sugar.
See “The United States Beet Sugar Industry and the Tariff,” by
Professor Roy G. Blakey, of Columbia University, Table Page 51.
According to the same authority the capitalization per ton
of daily slicing capacity has been INCREASED FROM THE
NORMAL BASIS OF $1,097 IN 1889 TO $2,458 IN 1909.
CANE-SUGAR CAPITALIZATION.
In contrast to this Beet-Sugar inflation, the total capitaliza-
tion of all Cane-Sugar Refinining Companies approximates $163,-
OOO,OOO, allowing a valuation of $12,OOO,OOO for the Co-part-
nership of Arbuckle Bros. and $1,500,000 for the Henderson
Refinery of New Orleans. See Table Pages 136–137-138 of
“The Petition of the United States of America vs. The American
39
Sugar Refining Company and Others,” filed in the Circuit Court
of the United States for the Southern District of New York.
This total includes $3,500,000 of stock of the American Sugar
Refining Company of New York, $5,000,000 of the Spreckels,
and $5,000,000 of the Franklin of Philadelphia, and $5,128,000
of the National of New Jersey, all owned by the American Sugar
Refining Company of New Jersey, or Trust, for the purchase
of which, a portion of its $90,000,000 of stock was issued.
It also includes $25,000,000 of this $90,000,000 capital stock,
issued in 1902 for the purchase of over $23,000,000 worth of
stock in Beet-Sugar Companies. Substracting these amounts (in
order to arrive at a fair relative comparison), we find:
Production Period of
W. & G., 1910 Operation
Capitalization. Tons. Months.
Total Cane, about . . . . $120,000,000 2,81 I,445 I2
Total Beet . . . . . . . . . . I29,600,000 457,OOO 3
These Cane Refining Companies produce over six times as
much as the Beet Sugar Refineries.
All of the larger Beet-Sugar Companies now pay a dividend
upon their common stock (which was originally added as a
bonus). The Michigan Sugar Company now pays 7% upon
their common as compared with 6% upon the preferred. In 1910
this Company had a surplus of $3,025,OOO, Out of which it paid
a stock dividend of $2,000,000, or 35%, and carried $1,025,000
to surplus. Its common stock was then quoted in Detroit at 121.
It has a daily slicing capacity of 4,450 tons, and is capitalized for
$12,500,000, or, approximately, three times its cost. The Ameri-
can Beet Sugar Company up to last year paid 6% upon $5,000,000
of preferred stock only, and this year started in to pay 5% on
$15,000,000 common. This past year it earned sufficient to
pay 13%.9% upon the common and the year before Io9%%. The
total daily slicing capacity of its combined factories is 5,2OO tons.
It is capitalized at $20,000,000, or at the rate of about four
times its cost. Last year this company charged up over $751,–
OOO to “depreciation,” or about 8%% of its earnings. The
Great Western Sugar Company, of Colorado, pays 7% upon its
preferred stock and 5% upon its common. In 1910 it had a cash
surplus of $5,500,000. It has a daily slicing capacity of 9,700 tons
and is capitalized for $30,000,000, or at the usual rate of more
than three times the cost of its factories. -
This interesting and illuminating letter, in regard to the
affairs of the above company, was written by its President, Ches-
fe. S. Morey, on March 19, 1910, to Washington B. Thomas, who
was then President of the American Sugar Refining Company:
4O
“MY DEAR MR. THOMAS :
Enclosed here with I hand you copy of the financial ex-
hibit and income statement. This is the form in which we
expect to publish these statements, and they will also be used
when we make application to list our stock on the New
York Exchange.
You will notice that this year, in addition to the regular
2% per cent. depreciation which we have been deducting for
the last three years, we have set up $1,000,000 in deprecia-
tion reserve. I do not want this year's earnings to appear
as large as they would if we had not made this entry. Of
course, this can be changed if the board of directors does
not approve of it.
You will note that our total surplus is shown by these
statements as a little over $5,000,000. This does not in-
clude any surplus from the Billings Co., the Great Western
Railway Company and other corporations, which really add
nearly $2,OOO,OOO.
Our Sugar is invoiced at 4 cents and judging from pres-
ent market indications there is at least $1,000,000 profit that
will show up in next year's business. The value of our real
estate and railroads over and above the amount at which
they are carried is at least $5,000,000, so that the actual sur-
plus is nearer $9,000,000 than $5,000,000.
Am pleased to say that at some of our factories the
farmers are signing up acreage and feel more encouraged
than I did a week ago.
The details of these statements I will bring with me
when I come to the stockholders’ meeting.”
Owing to the high price of sugar, the year following the
date on which this letter was written was, unquestionably, even
more profitable to the Great Western Sugar Co. than any of the
preceding years, which seem to have yielded abnormal profits,
as this company, only organized in January, IQO5, had, by March
19, 1910, accumulated a surplus of $9,000,000, in addition to
having paid regular yearly dividends. Yet these are the “inter-
ests” who whine at the doors of Congress in Washington that
“ruination” stares them in the face if the Tariff on sugar is
reduced -
As compared with these Beet Sugar Companies, the National
Sugar Refining Company, of New Jersey (Cane Sugar), though
in operation for more than I2 years, does not now pay a dividend
on its $10,000,000 Common.
The Beet Sugar Companies are enabled to do this, because
they are not obliged to base their selling price, to the consumer,
upon their cost of production (which is around 3c. per pound)
41
in contrast to Eastern Cane Refiners’ average of more than
4%.c. per pound (a full I}%C. of which is due to the tariff).
Thus the beet sugar companies capitalize their cheaper
cost of production, freight and Tariff protection, at the
expense of the consumer, with no thought of sharing any
advantage with the farmer. THE SUGAR BEET COM-
PANIES DEAL WITH THE LATTER UPON A FREE
TRADE BASIS, FOR HIS BEETS, AND CHARGE THE
CONSUMER UPON THE HIGHEST PROTECTIVE
BASIS, FOR THEIR PRODUCT. Hence, little sympathy
should be wasted upon this Tariff-favored element, on account
of the disposition shown, to exploit the benefits, so generously
conferred at the expense of the public at large, whom Congress
represents. -
INTEREST OF TRUST IN DOMESTIC INDUSTRY.
It has been the invariable rule for representatives of the
Domestic Beet and Louisiana Cane Sugar Interests to charge,
both in the literature they disseminate and at Hearings before
Congressional Committees, that the Cane Refining Interests of
the Atlantic Seaboard ALONE are anxious for a reduction of
the Tariff, for the Sole purpose of annihilating the Domestic
Sugar Industry, So as to give the former a complete monopoly
of the sugar market and the regulation of prices. What these
respective representatives are careful not to divulge is the close
alliance between the Beet Sugar Industry and The American
Sugar Refining Company and the monopoly of the Louisiana
'raw-cane sugar crop, this Trust enjoys!
According to the Findings and Report of the Hardwick Com-
mittee, the American Sugar Refining Company, or Trust, controls
over 62 per cent. of the Cane Refining Industry and, according
to the allegations in the suit brought to dissolve it as a Trust
and Monopoly in restraint of trade, it exercises control over Do-
mestic Beet Sugar Companies that produce 64 PER CENT. of
the beet-sugar.
It dominates the Michigan Sugar Company, with six factories
in Michigan. The Great Western Sugar Company, with
nine factories in Colorado, and one each in Montana and
Nebraska; the Utah-Idaho, Amalgamated & Lewiston, or “Mor-
mon Group,” with all of the II factories of Utah and Idaho; The
Spreckels (the largest beet-sugar factory in the world), and
Alameda in California; the Continental Sugar Company, with
factories at Blissfield, Mich., and Freemont, Ohio; The
Iowa Sugar Company, with a factory at Waverly, Iowa;
the Carver County Sugar Company, with a factory at Chaska,
42
Minn., and the Menominee River Sugar Company, with
a factory at Menominee, Mich. Prior to 1907 it held $7,500,-
OOO worth of Stock in the American Beet Sugar Company,
with factories in Nebraska, Colorado and California, but, since
that time, has disposed of these holdings. This action has been
explained, by the President of the Trust, to have been in retalia-
tion to the action of Henry T. Oxnard (one of the officers of
the American Beet Sugar Company), in repudiating a contract
he had entered into with the Trust (in behalf of his company),
to allow the former to act as agent for the latter, in the disposal
of the latter’s product, until 1913, upon the basis of a quarter
of a cent per pound commission. This concession, by The
American Beet Sugar Company, at that time, was for the purpose
Of conciliating the Trust and preventing it from again dropping
the price I}% cents per pound without warning, as it had done,
in the Fall of 1901, over night, in Missouri River Territory, to
the utter demoralization of The American Beet Sugar Company’s
trade. The par value of the stock which the Trust owns in these
Companies is $23,133,990. &
Through intimidation, it compels the Louisiana Planters to
deal with it in the disposal of their raw cane-sugar product,
and upon its own arbitrary terms, which, among other things.
comprehend a fictitious reduction, based upon the cost of freight
'between New Orleans and New York, though the Trust refines
all of its Louisiana product at New Orleans and Chalmette.
Only, on one or two occasions, has a Refinery, independent of the
Trust, been able to induce the Louisiana Planters to deal with it.
With this exception, the trust has enjoyed an exclusive monopoly
of the Louisiana raw-cane productions ever since it was organized.
It owns or controls Companies that operate 6 cane-refineries
in New York and vicinity, 3 in Philadelphia, 2 in New Orleans,
Jersey City, and San Francisco, and I in Boston.
From the nature of the control it exercises over both indus-
tries, it has an unfair advantage over independent cane-refiners,
as it can compete with them from both directions, and absolutely
regulate the method of prices in its exclusive beet-sugar territory.
Mr. Edwin F. Atkins, its Acting President, declined to
express an opinion about a change in the present Tar-
iff before the Hardwick Committee, though he ex-
pressed a willingness, if the opportunity were afforded him,
before a Congressional Tariff Committee. He had this oppor-
tunity offered through the recent Hearings before the Senate
Finance Committee, but he did not appear. Perhaps he con-
sidered his Company sufficiently well represented, through its
Beet Sugar Allies?
But what Mr. Atkins gives as a reason for the Trust’s invest-
ment in Beet Sugar Companies explains, exactly, its interest
43
in the present Tariff. He testified, on Page 79 of the Hardwick
Hearings, as follows:
“I think Mr. Havemeyer had tried for many years to
get a REDCTION OF DUTIES, and he made NO HEAD-
WAY; and then he thought he might as well JOIN THE
PROTECTIVE FORCES AND TAKE ADVANTAG E
OF THE HIGH RATE OF DUTY ON SUGAR PRO-
DUCED IN BEET FACTORIES; and that, I understand,
was his object in building these beet factories—SO AS TO
COME UNDER THE PROTECTIVE INFLUENCE.”
So it would appear as usual, that this is a subterfuge resorted
to for the purpose of exciting sympathy and diverting attention,
so that the Trust may continue to expand and thrive, at the
expense of its independent cane refining rivals, and the Domestic
Beet and Cane Interests to exact and exploit, at the expense of
the American consumer, through the maintenance of a hold-up
Tariff •
THE BRUSSELS CONVENTION.
On Page 3 of the Senate Finance Committee's Report occurs
this exaggerated description:
“To remove the duty from sugar imports would mean the
removal of our countervailing duties, when Russia, which pays
heavy export bounties, could flood us with bounty paid Sugars,
crush out our home industry, capture our markets and make
us dependent upon the whim of one country for our annual Supply
of a food necessity.” -
As the maximum production of Russia has never exceeded
2, IOO,OOO tons in any one year, out of which she supplies her own
needs and is obliged to keep on hand an “indevertible reserve” of
Io per cent. besides supplying Finland, from whom she receives
preferential treatment, Persia and Turkey, her contiguous cus-
tomers, China, The Far East, and England to the extent of 200,-
OOO to 300,000 tons per year, it is utterly preposterous, in the face
of natural conditions, to presume that we would ever become
“dependent upon the whim” of this “one country for our annual
supply of a food necessity,” since our present requirements ap-
proximate 3,500,000 tons per year. This same Report, on Page
4, refers to the Brussels Convention and inconsistently, observes:
“Moreover, it must be remembered, that the foreign coun-
tries, adhering to the Brussels Convention, if we take the duties
off sugar, would only have to declare the United States Con-
ventional Territory to enable them to control our supply of
sugar and fix the price we should pay for it.”
In the one place, the Committee points out the grave danger
44
we would subject ourselves to by abolishing the duties; and, in
the other, the manner in which we would be saved, automatically,
from the consequences of our rash act.
All appear to be agreed that the industries of the United
States should not be required to compete with bounty fed prod-
ucts from other nations so that if the Committee felt that we
were in danger it would have been a very simple matter to have
made the present countervailing clause, in our Tariff Law, ap-
plicable. This provides that any imports, on which a bounty
has been paid, shall be assessed a countervailing duty, equivalent
to the amount of bounty paid.
These vague and contradictory assertions prompt us to
describe The Brussels Convention and explain the effect of its
Operations, upon Russian imports of sugar to the United States.
The Brussels Convention is the designation given to an Assembly
of the Representatives of various European Countries at Brussels
in 1902 for the purpose of arriving at Some basis of regulating or
abolishing bounties upon exports of sugar by International
Agreement.
Prior to this Convention, European Nations, engaged in
fostering beet-sugar production, were accustomed to encourage
exports of Surplus Sugar, through a system of bounties so liberal,
that producers were able to dispose of their product abroad,
even cheaper than the actual cost of production, at home. This
gave rise to such intense rivalry that the financial stability of
certain nations was threatened by the excessive export bounties
allowed to sugar.
The Brussels Convention of 1902 was participated in and
signed by Austria-Hungary, Belgium, Denmark, France, Ger-
many, Italy, The Netherlands, Spain, Sweden, Luxembourg,
England and, later, Switzerland. Russia, one of the chief pro-
mulgators of the bounty system (by indirection, through favors,
Ostensibly, granted to promote domestic production), did not
join. The underlying principle governing the parties to this
Convention was the abolition of export bounties, in every con-
ceivable form, by a mutual agreement to countervail, to the
extent of such bounties. Hence, Russia was mainly affected.
The immediate effect of the action of this Convention was
to bring about an increase in price to the consumers of those
countries, who had been beneficiaries of the bounty system, in
the past. This rise was, particularly, felt in England, where the
amount of consumption per capita is the largest in the world,
though they are entirely dependent upon imports for their sup-
plies, and where they had formerly reaped the full benefits of
the bounty excesses. This agreement was to last for five years.
Hence, in 1907, when preliminary arrangements were being made
to continue the Convention for another five years, England in-
45
sisted that Russia be allowed to join upon terms that would
be more liberal than those of the Original Protocol. Through
the insistance of England, and her threat to “bolt” the Conven-
tion, unless her demands were complied with, Russia was per-
mitted to join on the basis of a limitation of one million tons
export of bounty-paid sugars to “Conventional Territory” during
six years, the maximum in any one year to be no more than
2OO,OOO tons. This concession to Russia has been extended, in
the latest Protocol (renewing The Convention, until 1918), to
I,250,000 tons.
All of this was lost sight of by Members of the Senate
Committee on Finance, who did not follow or seem to understand
the clear exposition of this subject given by Mr. Morris Jacobson,
Statistician of the Inter-State Commerce Commission.
The real fear to be apprehended from the operations of The
Brussels Convention is the classification of our sugars as bounty-
fed, owing to our high protective Tariff. This question has not
yet been mooted, because we have not yet become such a large
exporter of sugar, that our competition has been felt abroad. So
far as Russia is concerned, we are “Convention Territory,” in the
view of the Brussels Convention, instead of having to be
“DECLARED” so, as, erroneously, stated in The Report. It
would only require an affirmative declaration (in the light of
former constructions) on the part of the Brussels Convention,
to have our sugars classified as bounty-fed, in consequence of the
nature of our high protective Tariff. This decision will become
inevitable whenever we become such a large exporter of sugar as
to affect the European markets. -
t
46
CONSUMPTION OF SUGAR IN THE UNITED STATES
FOR 1911—W. & G.
Tons.
Louisiana (Cane) . . . . . . . . . . . . . . . . . . 28O,931
Texas (Cane) . . . . . . . . . . . . . . . . . . . . . . . 7, I43
Domestic Beet . . . . . . . . . . . . . . . * * * * * * 506,825
Domestic Maple Sugar . . . . . . . . . . . . . . 8,OOO
Foreign Molasses . . . . . . . . . . . . . . . . . . 8,910
Total Domestic Production . . . . . . . . . . . . . . .
Hawaii (Cane) . . . . . . . . . . . . . . . . . . . . . 482,231
Porto Rico (Cane) . . . . . . . . . . . . . . . . . 28O,622
Philippine Islands (Cane) . . . . . . . . . . . I68,408
Total Imported Duty Free . . . . . . . . . . . . . . .
Total Duty Free
Cuba (Cane) Assessed a Duty of I.348c per
Pound, basis 96" - . . . .
Tons
Foreign Raw Cane . . . . . . . . . . . . . . . . . I83,34I
(Java, I 38,470; San Domingo, I2,-
I6I ; Demerara, II,959; Brazil,
IO,976; Surinam, 5,933; Peru,
5,780 tons) - .'
Foreign Raw Beet (Europe) . . . . . . . . . . I 3,915
Total (Assessed a Duty of 1,685c per Pound,
basis 96) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Refined Beet . . . . . . . . . . . . . . . 43O
Foreign Refined Cane . . . . . . . . . . . . . . . I,373
Total (Assessed a Duty of I.90c per Pound)
TOTAL CONSUMPTION . . . . . . . . . . . . . .
Tons.
8II,809
931,261
I,743,070
I,4O9,259
197,256
I,803
3,351,388
There were exported in 191 I, IQ,019 tons of refined Sugar,
which would make the TOTAL PRODUCTION of the United -
States for the year IQII, 3,370,407 tons.
47
EUROPEAN BEET SUGAR
Con-
Production 191 I-I2. sumption
F. O. Licht. I9IO-II.
Tons. Tons.
Germany . . . . . . . . . . . . . . . . . . . . I,500,000 I,373,575
Austria . . . . . . . . . . . . . . . . . . . . . I, I45,OOO 666,362
France . . . . . . . . . . . . . . . . . . . . . . 522,000 692,558
Belgium . . . . . . . . . . . . . . . . . . . . . 235,000 IOO,626
Holland . . . . . . . . . . . . . . . . . . . . . 255,OOO I 18,852
Russia . . . . . . . . . . . . . . . . . . . . . . 2,050,000 I, I 34,000
Other Countries . . . . . . . . . . . . . 633,OOO Consumed locally
Total . . . . . . . . . . . . . . . ... 6,340,000
MERCHANTS’ EUROPEAN BEET SUGAR ESTIMATE
2,850,000
I,850,000
90O,OOO
615,000
6,215,OOO
2,OOO,OOO
64O,OOO
FOR 1912-13.
Tons.
Germany . . . . . . . . . . . . . . . . . . . . . . . . . . 2,650,000 to
Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . I,750,000 to
France . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850,000 to
Holland, Belgium and other Conven-
tion countries . . . . . . . . . . . . . . . . . . 547,000 to
5,797,OOO to
Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . I,8OO,OOO to
Other Non-Convention countries. . . . 578,OOO to
Total . . . . . . . . . . . . . . . . . . . . ‘. . . 8,175,000 to
8,855,OOO
The Principal Sugar Producing Countries of the World,
Outside of Europe, the United States and the latter's usual
Sources of supply, are:
48
Tons.
Argentine (Cane) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I7O,OOO
Australia (Cane) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I8O,OOO
Brazil (Cane) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,000
British India (Cane) (consumed locally) . . . . . . . . . 2,300,400
Formosa, Japan (Cane) . . . . . . . . . . . . . . . . . . . . . . . . 22O,OOO
Java (Cane) (exported mainly to Holland, Great
Britain and the United States) . . . . . . . . . . . . . I,395,000
Mauritius (Cane) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I6O,OOO
Peru (Cane) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I5O,OOO
TOTAL WORLD'S PRODUCTION.
I9II-I2
(Willett & Gray) | Consisting of }
15,863,589 Tons
I9IO-II
(Willett & Gray) Consisting of
16,998,793 Tons)
8,986,589 Cane
6,877,000 Beet
} 8,438,447 Cane
8,560,346 Beet
The Consumption of the United Kingdom for
the year 1910-11 (all of which was imported) was
1,879,352 Tons, and their price for sugar less than
in any other country.
PER CAPITA CONSUMPTION OF THE PRINCIPAL
COUNTRIES OF THE WORLD.
- Lbs. Lbs.
Austria-Hungary . . . . 28.53 Italy . . . . . . . . . . . . . . . . IO. IO
Belgium . . . . . . . . . . . . 38.37 Norway . . . . . . . . . . . . . 46. IO
Denmark . . . . . . . . . . . . 84.23 Russia . . . . . . . . . . . . . . 22.49
England . . . . . . . . . . . . 91.68 Spain . . . . . . . . . . . . . . . I3.69
France . . . . . . . . . . . . . . 42.84 Sweden . . . . . . . . . . . . . 57.98
Germany . . . . . . . . . . . . 47.91 Switzerland . . . . . . . . . 76.34
Holland . . . . . . . . . . . . . 45.67 United States . . . . . . . 82.OO
AUSTRALIA. . . . . . . . . . . . IOO lbs.
The average per capita consumption of the World is
about 22 pounds. The average per capita consumption of
Europe is 34.88 pounds.
49
IMPORT AND INTERNAL REVENUE TAXES
LEVIED UPON SUGAR IN EUROPEAN
COUNTRIES.
Internal Total
Import - Revenue Both
Tax Tax Taxes
per Pound. per Pound. per Pound.
Austria-Hungary . . . . . . . . .52C 3.50C 4.O2C
Belgium . . . . . . . . . . . . . . . . .52C I.75C 2.27C
Denmark . . . . . . . . . . . . . . . I.2 IC .49C I.7Oc
France . . . . . . . . . . . . . . . . . . .52C 2.53C 3.O5C
Germany . . . . . . . . . . . . . . . .52C I.5IC 2.O3C
Holland . . . . . . . . . . . . . . . . e tº e e 4.92C 4.92C
Italy . . . . . . . . . . . . . . . . . . . . 244c 6.23C 8.67c
Russia . . . . . . . . . . . . . . . . . . 6.O6c 2.50C 8.56c
Spain . . . . . . . . . . . . . . . . . . . 3.49C 3.06c 6.55c
United Kingdom . . . . . . . . .4OC e tº e º e .4OC
The import taxes alone represent the protection accorded
domestic production. All sugars, DOMESTIC as well as IM-
PORTED, must respond to the payment of INTERNAL
REVENUE TAXES.
The countries of Europe collect a certain amount of revenue
from sugar, but do so by taxing all the sugar consumed, while in
the United States only the half that is imported produces any
reverue; the balance being untaxed. Thus half of the sugar
that we consume yields no revenue and domestic producers in-
clease their price to consumers to the full amount of the Tariff
levied on the imported half.
The rates of duty imposed by the United States
are 1.90c per pound on refined, 1.685c per pound on
full duty-paying raw, 96 degree test, and 1.348c per
pound on Cuban sugars of the same test.
INDEX
Pages
A
American Beet Sugar ASSOciation, Lobby of, at Washington. . . . 14
American Beet Sugar Co.: s
Analysis Of Financial Statement Of... . . . . . . . . . . . . . . . . . . . . . . . . 20
Capitalization of Companies of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Dividends of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Nature of Contract with Trust. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Reason for Contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Repudiation of Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Result of Repudiation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
American Bottlers’ Protective Association, Tariff Views of . . . . . . 3
American Sugar Refg. Co., or “Trust”:
Amount of Stock Held in Beet Sugar Companies by . . . . . . 43
Contract of, with Hawaiian & Louisiana Planters. . . . . . . . . . . 2
Control of Beet Sugar Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
. In Favor of Present Tariff. . . . . . . . . . . . . . • - - - - - - - - - - - - - - - - - 2, 43
Interest in Beet Sugar Companies. . . . . . . . . . . . . . . . . . . . . . . . 42, 43
Interest in Cane Sugar Companies. . . . . . . . . . . . . . . . . . . . . . . . 42, 43
Interest Equally Divided. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Methods of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43, 44
Reason for Investment in Beet Sugar Companies. . . . . . . . . . . . 44
American People, Annual Cost of Tariff to . . . . . . . . . . . . . . . . . . . . . 1, 5
Analysis of, Attitude of Tariff-R'avored Interests. . . . . . . . . . . . . . . 4. 5
Analysis of, Beet Sugar Factory Profits. . . . . . . . . . . . . . . . . . 15, 16, 39, 40
Analysis of, Prices Paid American Farmers. . . . . . . . . . . . . . 12, 13, 14, 15
Atkins, Edward F., Acting President of Trust:
Opinion Why Havenmeyer Invested in Beet Sugar Companies. 44
Opinion Why Tariff Would Not be Apt to be Reduced by
Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
B
Beet Sugar Production :
European, 1911-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Merchants Estimate of, for 1912-13. . . . . . . . . . . . . . . . . . . . . . . . . 49
United States, 1910–11, 1911-12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40, 48
Peet Sugar Territory:
Control of by Trust & American Beet Sugar Co. . . . . . . . . . . . . 31
Blakey, Roy G., Capitalization of Beet Sugar Companies. . . . . . . . 39.
Increase of Capitalization Between 1889 and 1909. . . . . . . . . . 39
Bodkin, Colorado Beet Grower, Testimony of . . . . . . . . . . . . . . . . . . 35
Pounties, Amount of in Austria, France and Germany before
Abolished . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Abolished by Brussels Convention. . . . . . . . . . . . . . . . . . . . . . . . . 45
Brussels Convention, Explained. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44, 45
C
Cane Sugar Industry: - *
Annual Cost to Maintain Domestic. . . . . . . . . . . . . . . . . . . . . . . . 5
Capitalization of Companies of, Compared with Beet. . . . . . 40
Less Than Beet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Condition of, in Hawaii. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 5
Louisiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 6, 7
Porto Rico. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ‘. . . . . . . . . . . . . . . 4, 5
Philippines . . . . . . . . . . . , s a e s s • s e e s s e e < * * * * * * * * * * * * * * e s e s is * * * * : * e 5, 23, 24
Period of Operation of, Entire Year. . . . . . . . . . . . . . . . . . . . . . . . 40
Production of, Compared with Beet. . . . . . . . . . . . . • . . . . . . • * * * * * * 40
5 I
r’ageS
Six Times as Much as Beet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.
Refiners' Margin in, During 1909, 1910, 1911. . . . . . . . . . . . . . . . 16
Combs, E. U., Colorado Beet Grower, Testimony of . . . . . . . . . . . . 33, 36
Committee Of Wholesale Grocers: -
Members of Committee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Title Page
Rates of Duty Proposed by . . . . . . . . . . . . . . . . . . . . . . . . . . Title Page
Consumption Tax, Amount of, Advocated in U. S. Under Lowry
Revenue Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Amount of, in European Countries. . . . . . . . . . . . . . . . . . . . . . . . . 50
Domestic as Well as Imported, Sugar, Subject to . . . . . . . . . . . 50
Levied in Europe Besides Small Import Tax. . . . . . . . . . . . . . • 50 .
Consumption of Sugar: -
In Europe, 1910-11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47, 48
Other Countries, 1910-11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47, 48
United Kingdom, 1910-11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
United States, 1911-12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Cuba. :
Annual Production of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Cost of Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Effect of Reciprocity with . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27, 28, 29
Labor Cost in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Selling Price of Raw Sugar in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Tariff Rate With . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.
Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Cutting, Wm. Bayard, Statement by . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 20.
D
Dalkan, James F., Colorado Beet Grower, Testimony of . . . . . . . . . 36, 37
Department of Commerce and Labor:
Report No. 240, Bureau of Statistics. . . . . . . . . . . . . . . . . . . . . . . . 18, 28
Domestic Beet Sugar Industry:
Attitude Towards Tariff Concessions to Various Countries. . 3
Basis of Capitalization of Companies of . . . . . . . . . . . . . . . . . . . 39, 40
Cost of Factories of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39, 40
Beet Seed of, All Grown in Europe. . . . . . . . . . . . . . . . . . . . . . . . 9, 10
Furnished to Farmers Free in Europe. . . . . . . . . . . . . . . . . . . . . . 10, 12
Sold to Farmers, in America, at a Profit. . . . . . . . . . . . . . . . . . . . 10, 12
Imported Duty Free by Factories. . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Class of Labor, Employed in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10, 11
Expansion of, Hampered by “Trust”. . . . . . . . . . . . . . . . . . . . 31, 32, 33
Tariff Not Necessary to . . . . . . . . . . . . . . . . . . . . . . . . . . . 15, 16, 18, 36, 37
Beet Sugar Factory, its Position in, -
Anxious for High Tariff. . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Cost of Production (Hardwick Report) . . . . . . . . . . . . 6, 30
Cost of Production (Great Western Sugar Co.) . . . . . 30
Cost Of Production (Spreckels Sugar Co.) . . . . . . . . . . 15, 30
Consumer, Charged on Highest Protective Basis. . . . 42
Had Duty on Sugar Beets Reduced. . . . . . . . . . . . . . . . 14
* Hald Duty on Beet Seed Removed. . . . . . . . . . . . . . . . . . 10
Labor Cost, Percentage of . . . . . . . . . . . . . . . . . . . . . . . . . 15
No Relation Between Cost of Production and Selling
Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17, 18, 40, 41
Testimony of Colorado Beet Growers Regarding . . . . 32, 36
Beet Sugar Farmers' Position in :
Puropean Prices Paid Farmer Compared with Amer–
ican Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Maximum Price Paid American Farmer. . . . . . . . . . . . . 12
Original Prices Paid American Farmer. . . . . . . . . . . . 11
Reason of Increase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Protection to Farmer, Compared with Protection to
Factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 14
Treated Upon Free Trade Basis by Factory. . . . . . . . . 42
52
ſ - Pages
Domestic Sugar Industry:
Attitude Toward Free Sugar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Attitude Toward Reduction of Duty. . . . . . . . . . . . . . . . . * e s e s e s & a 2
PHow They Capitalize the Tariff. . . . . . . . . . . . . . . . . . . . 16, 17, 19, 41, 42
How Price to Consumers Determined by . . . . . . . . . . . . . . . 7, 16, 17, 42
In Favor of Protection, and Why. . . . . . . . . . . . . . . . . . . . . . . . . 14, 15, 42
Dutch Standard The, Effect Of Removal of . . . . . . . . . . . . . . . . . . . * * * 26, 27
E
Effect Of:
Cuban Reciprocity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27, 28
Home Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16, 17
Tariff Upon Price of Sugar. . . . . . . . . `. . . . . . . . . . . . . . . . . . . . . . . . 1
“Tariff Wall” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27, 28
Estimate of Cost of Beet Sugar Factory:
E. U. Combs, Joseph Fordney, F. R. Hathaway, Chas. W.
Nibley, Henry T. Oxnard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
European Average Per Capita Consumption. . . . . . . . . . . . . . . . . . . . . 49
European Beet Sugar Consumption, 1910-11. . . . . . . . . . . . . . . . . . . - 48
European Beet Sugar Production, 1911-12. . . . . . . . . . . . . . . . . . . . . 48, 49
European Merchants' Estimate for 1912-13. . . . . . . . . . . . . . . . . . . . . 49
European Internal Revenue Taxes and Tariffs. . . . . . . . . . . . . . . . 7, 50
Export Business, Tariff Handicaps to . . . . . . . . . . . . . . . . . . . . . . . . . . . 22, 23
Export Price, Below Domestic to Extent of Tariff. . . . . . . . . . . . . . - 1
F
Factory, Beet Sugar, Cost of Production in . . . . . . . . . . . . . . . . . . . . . 15, 16
Position Towards Farmer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
|Farmer, Beet Sugar:
Attitude of, in Colorado Towards Beet Sugar Companies. . . . 32, 37
Position of, in Beet Sugar Industry. . . . . . . . . . . 9, 10, 11, 12, 13, 37, 38
|Federal Sugar Refg. Co., Offer of, to Government. . . . . . . . . . . . . . .
Free Sugar:
Effect Of, Upon Price Between 1891 and 1894. . . . . . . . . . . . . . . .
Effect of, Upon Consumption Between 1891 and 1894. . . . . . . . .
By Whom Favored. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
By Whom Opposed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Germany: - -
JPrices Paid Farmers for Beets in . . . . . . . . . . . . . . . . . . . . . . . 12, 37, 38
Consumption and Import Taxes Of... . . . . . . . . . . . . . . . . . . . . . . 7, 50
H
Hardwick Hearings: . . . . . . . . 1, 2, 8, 9, 15, 18, 19, 29, 32, 37, 39, 42, 43, 44
Hawaii:
Average Selling Price of Raw Sugar for Ten Years. . . . . . . . . .
Contract with Trust. . . . . . . . . . • * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Cost of Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Planters’ COIntrol Of Industry. . . . . . . . . . . . . . . . . . "sº e º e e < * * e s & e e
Planters' Profits in 1910. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prospered Without Protection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IReached Limit of Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yield Per Acre. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PHome Production. Effect of, Explained. . . . . . . . . . . . . . . . . . . . . . . . . . 16, 17
How and with Whom Would Cost of Production be Compared. .. 31, 32
Inbond Price, Plus Duty, Basis of Cane Refiners' First Cost. . . . . . 2
Interests Favoring Free Sugar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Pages
* Interests Favoring High Tariff. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Interests Favoring Reduction of Duties. . . . . . . . . . . . . . . . . . . . . . . . . . 3
Interest of Trust in Domestic Sugar Industry. . . . . . . . . . . . . . . . . . 42
L
Izetter of President of Great Western Beet Sugar Co. to President
of “Trust”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Licht, F. O., Report of European Beet Sugar Production, 1911-12. 49
Report of Price Paid Farmers for Beets in Germany. . . . . 12, 37, 38
Statement Regarding General Factory Treatment, of Farmer,
in Germany. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12, 13, 37, 38
l–Ouisiana.: -
Analysis of Investment in Cane Sugar Industry. . . . . . . . . . . . 6, 7
Annual Cost to American People of Supporting This Indus-
try . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Class of Labor Employed in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Climate Unsuitable for Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Cost of Producing Raw Cane Sugar. . . . . . . . . . . . . . . . . . . . . . . . 6
Declining Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Production in 1894–95, and 1910–11 Compared. . . . . . . . . . . . . . . . 5
Protected for 100 Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Should Change to Other Crops. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Value Of Annual CrOp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Wages Paid Compared with Cuba. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Yield Per Acre, Half of Cuba, and Hawaii. . . . . . . . . . . . . . . . . . . . 6
LOWry Revenue Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
- Amount of Revenue Derived Under . . . . . . . . . . . . . . . . . . . . . . . . . 20, 21
Moderate Consumption Tax, Advocated. . . . . . . . . . . . . . . . . . . . . - 21
Tariff Rate Under. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
LOWry Tariff Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Amount of Protection Under. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Beet Sugar Factory Profit, Under. . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Price to Farmer for Beets, same as Present, Under . . . . . . . . . . 19
Reduction of Price to Consumer. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Saving to Consumer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
M
Merchants Estimate of European Beet Sugar Production for
1912-13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Michigan Beet Sugar Factories, Amount of Beets Imported by,
into Michigan from Canada, in 1909 and 1910. . . . . . . . . . . . . . 14 .
Michigan Sugar Company: -
Amount Of Dividends Paid in 1910. . . . . . . . . . . . . . . . . . . . . . . . . 9, 40
Earnings and Surplus of . . . . . . . . . . . . . . . . . ! • * * * * * * * * * * * * * * * * * 9, 40
Morey, Chester, S., President of Great Western Sugar Co.:
Letter Of, to President of Trust. . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Statement by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Testimony of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
N
National Canners’ Association, Favor Tariff Reduction. . . . . . . . . . 3
- P
Payne Bill:
“Joker” in, with Regard to Philippines, Explained. . . . . . . . . . 24
Rates of Duty Under. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Title Page, 50
Payne Committee, Hearings Before. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Per Capita Consumption of Countries of the World. . . . . . . . . . . . . . 49
Philippines, The . A
Description of Conditions in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 .
Develºpment of, Hampered by Domestic Interests' Opposi-
Orl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * * * * * * * * * * * * * * * * 4
~ 54
Pages
“Joker” in Payne Bill, Explained. . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Limited to Annual Importations of 300,000 Tons. . . . . . . . . . . 24
Natural Sugar Producing Country. . . . . . . . . . . . . . . . . . . . . . . . . . 24
Possibilities, Unlimited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 23
POrto Rico : * . . . s
Producers Pay High Rents to Spanish Landlords. . . . . . . . . . . . 5
Production Forced. Upon Unsuitable Lands. . . . . . . . . . . . . . . . . . 5
Production Reached Limit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Prospered Without Protection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Protection, Anxiety of, Domestic Interests for: -
Anxiety of, Hawaii for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Anxiety of, Porto Rico for . . . . . . . . . . . . . . . . . . . . . . . . . . . ". . . . . . . ’2
Amount of, Under Lowry Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . ... 18, 19
Should be for Consumer as Well as Factory. . . . . . . . . . . . . . . . 9
R
Reciprocity:
Domestic Interests' Opposition to . . . . . . . . . . . . . . . . . . . . . . . . . 2, 6
Effect of, With Cuba. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 29
Reduction. Of Duty: - • *-
Attitude of Domestic Interests Toward. . . . . . . . . . . . . . . . . . . . 2
Effect Upon Consumption Between 1891-1894. . . . . . . . . . . . . . . . ... 3
IEffect of, Under Lowry Plan. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 17, 18
Refiners Margin: -
For Last Seven Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Margin for 1909, 1910, 1911 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
New York Average Selling Price for Last Seven Years. . . . . . 16
Quotations for Domestic Trade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
ſtevenue:
Amount of, Collected in United States From Sugar in 1911 . . 20
|Under LOWry Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20, 21.
S
Selling Price:
Hawaiian Raws for Past Ten Years. . . . . . . . • * * * * * * * * * * * • . . . 4
Domestic Refined Beet Sugar, Upon What Basis. . . . . . . . . . . . . 8, 16, 17
New York Refined Cane for Last Seven Years. . . . . . . . . . . . . . . 18
Senate Finance Committee, Report of . . . . . . . . . . . . . . . . . . . . 25, 26, 44, 45
Senate Hearings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 5, 25
Spreckels, C. A., Estimate of Annual Cost of Tariff. . . . . . . . . . . . . . - 1
Spreckels Sugar Co., Report of Cost of Production of Beet Sugar. 30
Sugár: -
Consumption of, Europe, 1910. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Increase of, in United States, 1891–1894. . . . . . . . . . . . . . . . . . . . . . 2
Per Capita Consumption of, Countries of the World. . . . . . . . 49
IPer Capita Consumption of, United States, 1911-12 . . . . . . . . 47
Cost to Produce Raw Cane in Cuba. . . . . . . . . . . . . . . . . . . . . . . . . . 6
Cost to Produce Raw Cane in Hawaii. . . . . . . . . . . . . . . . . . . . . . . 4
COSt to Produce Raw Cane in Ilouisiana. . . . . . . . . . . . . . . . . . . . . . 6
Cost to Produce Raw Cane in Philippines. . . . . . . . . . . . . . . . . . . 23, 24
Cost to Produce Refined Beet in California. . . . . . . . . . . . . . . . . . . 30
Cost to Produce Refined Beet in Colorado. . . . . . . . . . . . . . . . * * * 30
United States Average Cost Found by Hardwick Committee. 18, 30
Refined Cane, in New York. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Based Upon Inbond Price of Imported Raw Sugar, Plus
Duty and Cost Of Refining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 17
Cost Under Lowry Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17, 18
Selling Price of Cane Sugar, Upon What Based. . . . . ... • * * * * * * * 2, 17
World’s Production of, 1910–11, 1911-12. . . . . . . . . . . . . . . . . . . . . 49
5
s
T
Tariff : - * * *
Annual Cost of, to American Consumers. . . . . . . . . . . . . . . . . . . . 49, 50
Attitude of American. Bottlers' Protective Association, Inde-
pendent Cane Refiners, and . National Canners' Associal-
tion Towards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Average Increase in Price to Consumers for Seven Years, by
Reason s of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Concern of Great Western Beet Sugar Co. About Mainte-
nance Of..... . . . . . . . . . ... • * * * * *, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 37, 38
Domestic Prices, Affected by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 3, 18
Comparison of Benefits to Farmer and Factory Of... . . . . . . . . 13, 14,15
Effect of Reduction of, Between 1891 and 1894. . . . . . . . . . . . . . 1, 3
Extension of Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Increased Consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 3
Reduction of Price to Consumer. . . . . . . . . . . . . . . . . . . . . . . . . 1
Lífect of, Upon Domestic Beet Sugar Industry. . . . . . . . . . . . . . 16, 17
Encourages Over-Capitalization . . . . . . . . . 4, 18, 19, 39, 40, 41, 42
Permits Enormous Profits. . . . . . . . . . . . . . . . . . . . . . 4, 18, 40, 41, 42
Improper Location of Plants. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
- Dividends Upon “Watered Stock”. . . . . . . . . . . . . . . . . 18, 40, 41, 42
Cost to Consumers by Reason of, 26 Per Pound. . . . . . . . . . . . . 1, 4
Comparison of Rates Of, with Europe. . . . . . . . . . . . . . . . . . . . . . 7, 8, 50
Export Business Handicapped by . . . . . . . . . . . . . . . . . . . . . . . . . . 22, 23
Export Price, Relieved Of... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Lowry Plan of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16, 17, 18
Present High Rates of, Disregard Of Natural Advantages
POSsessed by United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 4
Not Necessary, for. Development Of, Beet Sugar Industry. .. 31, 32, 34
Not a Proper Revenue Measure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20, 21
Rates of, in Payne Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Title Page, 50
IReduction of, Direct Benefit to Consumers. . . . . . . . . . . . . . . . 1, 18, 28
Reduction of, Indirect Benefit to Canners, Fruit Growers,
Manufacturers, Preservers, Transportation Companies. . 3
Tariff Board, Cause and Effect of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 29
Taxes of European Countries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 50
U
Union Sugar Co., Payment of 100% Dividend. . . . . . . . . . . . . . ... • - - - - '• ‘ 9
United Kingdom, Consumption of Sugar 1910–11. . . . . . . . . . . . . . . . . 49
United States:
Consumption of Sugar in, for 1911-12 . . . . . . . . . . . . . . . . . . . . . . . 47
Natural Advantages POSSessed by . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 4
Per Capita Consumption of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.
Rates Of Duty Prevailing in . . . . . . . . . . . . . . . . . . . . . . . . . . . Title Page, 50
Should Have Sugar Cheaper Than Any Other Country. . . . . . 3, 4
United States Beet Sugar Production, 1910–11, 1911–12. . . . . . . . . . 40, 47
W
Western States:
Beet Sugar Produced Cheapest in . . . . . . . . . . . . . . . . . . . . . . . . . . 16, 17
Prices Of Sugar in, Higher Than in Eastern. . . . . . . . . . . . . . . . . 16, 17
Raw Sugar, Duty Free in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16, 17
What is “Cost of Production” in United States. . . . . . . . . . . . . . . . . . 30
Willett & Gray:
Average Price of New York Refiners for Last Seven Years. . . 18
Average Price of Hawaiian Raw Sugars for Last Ten Years. 4.
United States Beet Sugar Production, 1910-11, 1911-12. . . . . . 40, 47
United States Sugar Consumption, 1911-12. . . . . . . . . . . . . . . . . 47
New York Cane Refiners' Margins for 1909, 1910 and 1911. . . 16
Renº Quotations for Domestic Trade Compared with Ex-
P9ſt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
World's Production of Sugar, 1910-11, 1911-12. . . . . . . . . . . . . . 49
*
56
THE
THOMAS PRESS
NEw York

THE UNITED STATES, BECAUSE OF ITS PROxIMITY
To CUBA, AND ITS INSULAR POSSESSIONS PORTO
RICO, HAwaii AND THE PHILIPPINES, As well
As FROM THE FACT THAT BEET SUGAR CAN BE
PRODUCED IN OUR WESTERN STATES AT A VERY
LOW COST, SHOULD HAVE CHEAPER SUGAR THAN
ANY NATION IN THE world. FROM THESE
sources, witH THEIR NATURAL ADVANTAGEs,
WE ARE ASSURED NOT ONLY OF AN AMPLE SUP-
PLY OF SUGAR BUT THIS SUPPLY CAN BE OB-
TAINED AT A MINIMUM COST IF IT werE NOT
FOR THE HIGH DUTY WHICH ENHANCES THE
PRICE. ---, f th
THE QUESTION IS, ARE THE PEOPLE TO RECEIVE
THE BENEFIT OF OUR NATURAL ADVANTAGES,
• OR ARE THEY TO BE EXPLOITED FOR THE BENE-
FIT OF THE PROMOTERS OF OUR DOMESTIC BEET
AND CANE SUGAR INDUSTRY? THE PRESENT HIGH
TARIFF MEANS THE LATTER. ps
Y-\\-
| TET2
. F132.
INDUSTRIAL INDEPENDENCE
ADDRESS
OF
HON WILLIAM G. REDFIELD /*-
OIT INTETW YOR.E.X.
BEFORE THE NATIONAL DEMOCRATIC (LUB
OF NEW YORK CITY, JANUARY 8, 1912
(Printed in the Congressional Record March 15, 1912)
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- WASHINGTON
Gov.D.RNMENT PRINTING OFFICE
34561—107.11
1912
ADDRESS
OI!"
HoN. WILLIAM G. REDFIELD
BEFORE THE NATIONAL DEMOCRATIC CLUB, JANUARY 3, 1912.
INDUSTRIAL INDEPENDENCE.
“Just as in Alaska natives set up totem poles and worship
Spirits, alld as in the Philippines the nipa huts are tightly
Closed to keep out the night-flying demons, so most Almerican
Imallufacturers have belonged to a sort of industrial . Shut-in
Society devoted largely to a cult of fears of things that are not
SO. Meanwhile, dreading the phantoms without, they have nur-
tured demons within. They have adopted and cultivated a
lmental attitude that has sterilized all initiative, and the fear Of
the gluosts that do not exist bas deprived them of the vision to
See and deal with the real demons Who injure them.
“TWO among the ghosts loom large in our industrial horizons.
The first of these is called Rate of Wages. Dire evils are laid
to his charge. Books have been Written about him, and he has
filled the mouths of Orators in Imany places and through many
years. What he has done to hold back our poor Almerican in-
dustries has been vividly told. He is pictured in part as a
handicap upon domestic trade, as part of the high Cost of living,
as the foe of eXport business, as a general and serious disturber,
and to him is charged both the excessive cost of What We buy
at home and of what some of us do not sell abroad. -
“A Second ghost is called Cost of Production. Most of us
Rnow very little about this ghost, but we talk of him volubly and
tell how bad he is and how he is related by blood and behavior
to the first ghost I have named. Men say how hard they have
striven to control the influences of this evil spirit, and declare
that Olmly protection from SOIme SOUll'Ce Strolnger than themselves
will keep them from serious injury at the hands of these phan-
toms. For plantoms both, these ghosts are. Their dreadful
names have hung like Shādows over maily a shop, but men who
have faced them boldly have found they are not what they are
thought to be; that instead of direful ghosts filled with, possi-
bilities of disaster, they are friendly spirits carrying much
possibility of good, and offering harm only to those who do not
understand low to treat them.
“But the demons within are real, many, and vigorous, four
of them especially so. There is one demon called Waste, who
is omnipresent. His brother is Ignorance, and they walk hand
in hand through Imany a shop. Closely related is an evil Spirit
called Neglect, and the fourth member of the devilish group is
Blindness. These baneful four are no dreams, but real destroy-
ers. It is against them that protection is needed. Those strong
inen among our industries who have’ learned that the Rate of
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Wages is a friehdly spirit have found him powerful also in
Overcoming the demon called Waste, and just as with clear
Iminds and fixed purpose they study into the true nature of the
Rate of Wages and the Cost of Production do the demons of
Neglect, Ignorance, and Blindness cease to trouble.
“In this brief preface I have tried to sketch the fundamentals
of our industrial problem as it relates to the tariff. We have
been too long ghost fearers and devil conservers. Tet us face
about, look firmly at the ghosts and Squarely at the devils. The
ghosts Will be found helpful friends and the devils—
“Shall fold their tents like the Arabs,
And silently steal away.”
“American manufacturers need tariff reform for certain
definite, specific purposes. Among these are:
“1. To enlarge their mental and moral vision.
“2. To increase their efficiency.
“3. To teach them the gospel of self-help.
“I am tempted to add a fourth reason—to get rid of ghosts;
but When the vision Imental and moral shall have been enlarged
and efficiency shall have been learned and self-help acquired,
the ghosts will llave gone.
“Our manufacturers need to have their mental vision en-
larged, because ignorance is a limiting factor. It lias always
been true that ‘a little knowledge is a dangerous thing.” They
have been fed on untruths. It is not true, for example, that
because a man is paid $3 per day his product necessarily costs
more than that of a man paid $2 per day. It is not true that
goods cost So much of necessity in an American shop that they
can not meet foreign Competition. It is not true that Our indus-
tries would be injured, much less destroyed, by a reduction of
the tariff wall. It is more true, far, that this very tariff wall
is in danger of creating a sort of industrial “Paresis club.” It
is true that product is a far more important thing in cost than
the rate of wage. It is true that direct labor cost is a Small part
of the total cost of making goods. It is true that the burden
charge is often heavier than the direct labor charge; it is true
that the selling expense is often heavier than the direct labor
Clarge ; it is true that when comparison is made between the
rate of wage in America and the rate of Wage abroad, such
a COImparison is meaningless and silly unless the rate of produc-
tion and its Conditions be Stated. It is true that When the dif-
ference between the rate of wage at home and abroad is given
it is a difference which relates to but a small part of the cost
of making goods, and in no sense a major part. I'or example,
iſ the somewhat mysterious synopsis of the report of the Tariff
Board may be quoted, there is said to be a difference in labor
COst in making yarn between England and the United States of
100 per cent; but this 100 per cent does not sound so large,
even if it be always true, which I doubt, when the report shows
that the total proportion of labor cost in making yarn is but
93 per cent, and the 100 per cent difference, therefore, is but
a difference of 43 per cent of the total cost of the yarn. Other
plain truths are: The differences in cost between two American
concerns in the same line are often greater than the difference
in cost between a concern abroad and one at home in the same
1ine. The difference in direct labor cost between a foreign and
34561–10711. s
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a domestic concern in the Same line may be entirely Overcome
by differences in the burden charge.
“I am told, and believe it to be true, that but few American
manufacturers really know the cost Of their goods, and but very
few the cost of each Operation in making their goods. An
examiner for the Tariff Board told me that in 16 shops he
visited they did not know what their goods cost and had no
systematic, accurate way of finding out. One of the first and
most beneficial results Of the removal of artificial protection
Would be to make our manufacturers learn these facts, to
enlarge their mental vision along the liné of the Old Jewish
proverb, “Physician, heal thyself.’
“But there would be a moral enlargement Of Vision also, for
among our industrial shut-ins Strange moral growths occur.
For example, what think you of men in control of a large in-
dustry buying for their personal gain other factories whose
product must be used by the larger One and then arranging to
bave the output of the one they own purchased at high prices
by the other which they control? What think you of concerns
employing men at large Salaries whose duty in large part it
is to copy as nearly as they dare patents having Value which
are submitted to them for purchase or of which they learn in
Order that they may themselves benefit by the inventor’s skill
Without his profiting by it? Or What is your view of their
using a department of patent law to protect them against the
righteous claims of those whose property they have taken, and
what of the morals of a large Concern telling a Small One tha
unless they cease Suing them for the misuse Of patents the
little Will be driven out of business by the big? Under the
genial influence of a reduction of duties some of these proc-
esses Would become too expensive and legitimate COInpetition
Would at least offer a larger field for dealing with those whose
sense of honor Was higher and would Open a broader market
to the inventOT. -
“A reduction of tariff would increase the efficiency of the
American manufacturer and therefore add to the profits of his
business. The fetish of having to cut Wages to keep Cost down
is dead or dying. Even the Tariff Board admits that. It is
output that counts. An experienced manufacturer Said to me a
few days ago : ‘The tariff lºills initiative and raises the cost.’
You have no doubt noticed that the cry as to the inefficiency of
their labor comes from those industries that are most highly
protected. Provide a profitable market for a manufacturer and
why should he spur himself. Like the rest of us he will be as
lazy as he dares, and if through the grace of law he may sell,
as our wool men are said by the Tariff Board to do, at prices 67
per cent higher than those prevailing abroad, why Should he
strive to improve himself so long as it pays not to do SO 2 While
Obsessed with the belief that high Wages mean high labor COSt
and imbued with a conviction of his own helplessness, how can
a man become efficient? For efficiency means keen self-criticism.
It means to go out into the shop alld find Inothing there that is
Sacred or fixed. It means that in that shop six months ago shall
be ancient history. It means the dropping of tradition, the for-
getting of ghosts, the questioning of everything. It Imeans the
old Scripture doctrine, ‘Prove all things, hold fast that which is
good,” and only that. This mealms Serious, Constant, patient
34561—107.11
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study and toil, and it needs a spur to bring men to that labor.
True, the men with vision in Our industries, who have the sense
of the industrial seer, and especially in those industries which
have been less protected from the ghosts by law, have done this
labor and have found it amazingly lucrative. Here note one
vital but not obvious fact. What of the concerns whose names
do not appear in our tariff fights.
“Has anyone thought to make a list of the houses that are
Silent on the tariff 2 Has it occurred to anyone that a reason for
this Silence may be that SOme Of these houses feel SO Compe-
tent to meet any tariff situation that they are fearless about it?
I have the best of reasons for thinking this is true of two large
Worsted manufacturers, and I know it is true of other Concerns.
They do not care to advertise the fact that by keener manage-
ment, finer equipment, and better methods they are doing so well
that the tariff is to them an indifferent thing, because, so to
speak, they would put their COImpetitors “onto the game.”
Look among the names Of the manufacturers in our great indus-
tries who do not make Washington their Mecca and see what
you find. Tariff reduction will bring to the American manu-
facturer everywhere that spur from legitimate competition
which will make him criticize and study his own methods,
which will force him to drive out the devils of ignorance, waste,
neglect, alld blindneSS.
“And with a larger and purer vision, and with higher effi-
ciency, he will have gone far on the road to the third gain
from tariff reduction, namely, he will blave begun to learn self-
help. And to Substitute Self-help for dependence, courage for
fear, hope for doubt, manliness for cowardice, is the noble task
in which the Democratic Party is engaged in its campaign for
tariff reform. But self-help means more than anything we have
yet Said. It means, after doing all We have Suggested, stop-
ping the greatest Waste in industry and utilizing the greatest
force in industry, which waste is now Sadly great and which
force iS too little UISed.
“Look at the elements in the cost of production—material,
that is an inert, dead thing ; Selling expense, that produces noth-
ing; burden charge, truly described by its name of a burden;
labor cost, here you have the One productive element. Is it
treated productively? Your building, your machinery, your rha-
terial, these are investments. Your men—are their wages an
investment or an expense? Look at the question squarely.
Your whole industrial efficiency rests on the answer.
“If the wages of these men are an expense, then the less of
it the better. If your men are an expense, then cutting wages
becomes normal and proper. They rank like waste of any kind.
They are a thing to be reduced to the lowest limit if you think
that pays. But if the wages of these men are an investment,
if this one productive element in industry has in the very
fact of its productiveness something that separates it from all
other kinds of cost, then it is worth conserving. For your
investments you cultivate, you develop, you improve, you study
their nature, you are deeply interested in their management,
you wish them to be efficient, helpful, reliable, steady. Indeed,
you look for a growing return from them. It pays to study
investments. It does not pay to treat an investment contrary
to the laws of the thing in which you invest. It is better,
34561–10711
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cheaper, more profitable to work with the laws of your invest-
ment than against its laws. Self-help means a new outlook on
labor for a manufacturer. It means that he has got to cease
to profit by it alld learn to profit with it. It means that the
pay roll is an investment and not an expense, and a clasm
Of thought divides the two. It means that the old ghost of the
rate of wages has turned into a friendly spirit that says to
him, ‘The more I grow, the larger I am, the more I should
produce for you and yours'; and it says to the cost of produc-
tion, ‘The more I produce the smaller you get and the less
influence you have.’ It says to the man whose vision has been
enlarged, “Do not worry about your rate of wages; think, rather,
Of your rate of output; get rid of the devil of Waste, stop the
devil of neglect of your burden charges and blindness to the
inefficiency of your equipment and ignorance of your handling
xpense. Drive out the devil of neglect of your own costs and
blindness to your selling charges. Get rid of the things that
don’t produce and make the most, the utmost, of the one element
in your Shop that does produce, and above all things do nothing
in blindness, ignorance, or neglect, or Waste to Cramp or antago-
Inize or hamper the only productive element, the only responsive
element in the cost of the goods you make.’ And so the Demo-
cratic position is one that is not negative but affirmative, it is
Inot destructive but constructive, it is in line With all the forces
Of uplift in Our land. It is the gospel of hope and not of dollbt,
the gospel of courage and not of fear, the gospel of moderation
and not of rashness, it is the teaching of that same self-help
to Our manufacturers which we try to cultivate in Our children.
It does not let “I dare not wait upon I would,” but says “you
can.” It is the teaching of industrial freedom, a strong and
not a Weak faith.
“Let me close with the statement of certain truths which
form at least a part of the Democratic declaration of industrial
independence and which the Democratic Party believes to be
evident. . -
“There is in the strict sense of language no such thing as
the cost (meaning the fixed cost) of production, and the plurase
aS Often used misleads. -
“Since there is and can be no such thing as a fixed or
uniform Cost of producing an article, to base a fixed tax thereon
is absurd and impossible.
“The nature of cost being variable, a tax actually based on
Such differences between cost in Europe and America as might
be found to exist would vary constantly. If based on the cost
records of an inefficient American shop it might at times be
high ; if based on best American practice it might not exist
at all.
“The Clifference in cost between American shops in the same
industry are as great as Or greater than the average differences
in cost between America and Europe. The same is to a degree
true in each industry Of Europe. The relations of these costs .
each to the other both within and without almy industrial coun-
try constantly change. The Statements, therefore, seriously
made by some about basing a tariff on the differences in labor
cost between this country and Europe are ridiculous. It would
involve preferences in favor of One European Country as against
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another, and if it were to be maintained at the actual differences
in cost, it would have to be adjusted frequently to meet changes
in efficiency, methods, or invention in the various countries
affected by it.
“A tariff based on the difference in the cost of production
must, if it be correct, be a different tariff against every country
producing like goods for costs in these countries vary. Not only
so, but logic requires that a separate tariff be made against
separate factories in so far as their costs differ.
“A tariff based on differences in cost of production is a logical
and industrial absurdity. -
“It is a normal thing that the most highly protected indus-
tries should be the most back Ward. -
“The cost of labor is but a minor part Of total cost and
rarely the controlling element therein. -
“The differences in wages between America and Europe
affect but a small part of the total Cost of manufacture, and is
itself so modified by many other Conditions affecting cost as to
be valueless as a basis for argument. -
“The chief controlling factor in production is the rate of
Output. Other factors therein are burden charge, selling ex-
pense, material cost, and lastly, and Often least, labor cost. It
Imay, therefore pay, Often does pāy, to increase the Wage rate
to induce Output and therefore to reduce the relative burden
and Selling Charge.
“The reduction of the wage rate as a means of economy is
the foolish resOl't Of the inefficient alld the ill-informed.
“Differences in cost may have no relation to labor. In A’s
shop where total cost is least, labor COst may be most. In B's
shop where total cost is greatest, labor cost may be least.
“The possible saving in total cost through eliminating the
element of waste in its many forms may almount to One-half
even While the daily rate of Wage will increase. Under these
conditions, despite the increase in Wage, the Output may so en-
large that profits would be greatly increased even though sell-
ing prices were reduced to meet competition.
“The Republican Party undertakes to insure “a reasonable
profit by law. A reasonable profit has never been defined nor
its conditions made known. Such a profit may vary, that being
reasonable in One place being unreasonable in anothel ; that
Which is fail: Ullndler SOme COInditions WOuld be ulnfail: Ullmdel:
Others; that which is righteous in some industries would be un-
righteous in others; that which is normal in some places, ab-
Inormal in others. What are the limits?' Who is to decide what
a reasonable profit is? *
“The Democratic Party believes that the policy of a tariff for
revenue only is not only a policy free from the logical absurdi-
ties of a tariff based upon the alleged cost of production, but
that it is a policy which Opens to our industries the way to de-
velopment on normal and permalment lines where brains, Char-
acter, and energy may work out their natural results to the
profit of the manufacturer, to the advantage of the Worker, and
to the gain of the COInsumer.
“The Democratic Party would substitute industrial self-help
for tarif protection. By this it does not mean rash, hasty, Ol'
even radical removals of existing duties, but reducing them
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with moderation to a revenue basis. By self-help it means that
our manufacturers shall exercise that constant and searching
self-criticism into their own plans, methods, and management,
which should mark every progressive producer, but which is
little likely to exist, and has in many cases not existed, whereas
by reason of the tariff a profit bias been assured by law. But
Self-help in industry means more than this. It means replac-
ing doubt with hope and fear with courage. Protection is the
gospel of Security for the incompetent and inefficient at the
Inational cost. Self-helf is the gospel of competence and effi-
Ciency to the general gain. But self-lmelp means yet more.
It means an altered attitude on the part of manufacturers
toward labor. It means the Spirit of COOperation between elm-
ployer and his workman. It means a recognition of the law
that a well-paid and well-treated employee is th9 cheapest pro-
ducer. It means a true industrial democracy in which owner,
workmen, and consumer pull together with greater profit to the
first, larger wages with shorter hours and less strenuous labor
for the second, and lower prices for the third. This is the
aim and the outcome of industrial self-help. It is a teaching
opposed to all narrow selfishness, hostile to much of our ac-
cepted business economy, but it is in fundamental accord with
the laws of human nature and with enlightened self-interest on
the part of all dependent on our industries.”
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THE GOLDEN GATE


Rep or t
to the
United States Tariff Commission
hy the
Committee on Free Port
appointed by the
San Francisco Chamber of Commerce
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1918
sAN FRANCIsco CHAMBER OF COMMERCE
COMMITTEE ON FREE PORT
1 OO 4 NM E R C H AN TS EXCH A N G E E U I L D | NG
SAN FRANCISCO
February 28, 1918
Honorable William Kent,
United States Tariff Commission,
Washington, D. C.
Dear Sir :
The committee appointed by the San
Francisco Chamber of Commerce to take up the
question of the advisability of recommending
to Congress the establishment of Free Ports,
or Zones, has completed its labors and
respectfully encloses a complete copy of its
findings and recommendations which it is
trusted may be found of value.
Thanking you for the opportunity
thus given,
Yours respectfully, .
GEO. A. NEWHALL,
R Chairman
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FOREWORD
A New The question of establishing “FREE PORTS” in the
Policy United States as a new national policy has been raised
in Congress, and to Hon. William Kent, a member of
the United States Tariff Commission, has been assigned the
duty of collecting and preparing data on the subject for trans-
mission to Congress.
The consideration of the matter before the San Francisco
Chamber of Commerce was inaugurated by Mr. Kent at a
meeting held October 23, 1917, which was attended by repre-
sentatives of the mercantile and shipping interests around San
Francisco Bay, and this report is the result of the investiga-
tion that ensued.
Meaning of A brief explanation of the nature and purposes of
Free Port what is meant by a “FREE PORT’’ may be of
service in comprehending the following argument
in favor of its institution.
Common. Free ports, or free zones in portions of harbors,
Elsewhere have long been known in Europe and Asia, but the
subject is much misconceived in the United States
because of the ambiguity of the word “free”.
Freedom from It does not mean freedom from harbor or
Customs Control port charges, such as tolls or wharfage on
cargoes, dockage on ships, pilotage, towage,
etc. Nor does it involve any change in tariff policy. Briefly,
it means freedom from customs control.
Physical A reasonably large part of a port is segre-
Arrangements gated for the conduct primarily of foreign
commerce, and in order to guard against
intrusion by unauthorized persons and for the better enforce-
ment of laws and regulations it is enclosed by Substantial bar-
riers on both land and water sides. This constitutes the “free
zone”, and from it all customs-house activities, except precau-
tions against smuggling, are excluded.
How It Here the imported merchandise is landed, and when
Works the imports pass through the land or water gates of
the enclosure into the country elsewhere, then at that
time and at the gate, theoretically, the duties incident to the
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collection of the tariff dues begin and all the complicated rules
and regulations of the customs service first go into operation.
If the imports are not taken for domestic consumption, they
may be re-exported, whether in the original packages or other-
wise, without payment of tariff dues or interference by customs
officials. The same is true of foreign raw materials landed and
worked up into manufactures inside the free port, and designed
for re-export.
PIandling and While the imports are in the free zone
Treighting Without they may be stored in non-bonded ware-
Molestation houses or handled ad libitum by the parties
interested with absolute freedom, and may
be prepared for shipment either into the country or for trans-
shipment or re-export to foreign countries and started on their
way, without the onerous impediments now caused by customs-
house supervision, red-tape and penalties. -
It is merely a new system of customs collection and super-
vision. The customs-house, so to speak, is removed from the
ship and wharf, where it now holds sway, and is set up at the
gates of the free zone.
Tariff Policy. The proposed change does not in any way affect
Not Affected the nature or size of the tariff dues, simply the
method and manner of their collection and the
places where the customs activities shall be exercised. The
aim is to put them outside the free zone entirely.
Ample in Of course, the enclosed area of water and 1and in-
Size and side the free zone must be sufficiently large to
Facilities accommodate the foreign commerce of the port, and
it should be provided with all the necessary wharves,
non-bonded warehouses, railways, spur-tracks, and devices
required for the rapid and economical handling of cargoes.
This report was prepared on behalf of the San Francisco Bay
conference alluded to by Mr. J. J. Dwyer, former President of
the Board of State Harbor Commissioners in charge of the
Port of San Francisco.
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IF
F RE E PORTS
AS A
NATION AL POLICY
We have reached the conclusion without a dissenting
voice that a national policy of “Free Ports” should be
inaugurated by the Federal Government, for the reason
that such a policy would directly tend
Free ports in a marked degree, well worth the cost
advocated of the necessary changes in the present
System, to increase profitable foreign trade
and build up a merchant marine, whether the latter
is to remain privately owned and operated, or be
more or less governmentally owned or controlled or
operated. -
In giving our reasons in detail, we shall try to avoid
anything like an essay on the theory of the subject,
or an attempt at a Summary of the practice and expe-
rience of foreign free ports, which would be only a
useless repetition of matters better stated in other
compilations and reports. Of such reports
No essay of American origin, we refer particularly
attempted to those emanating from the Merchants
Association of New York, which we have
found most illuminating, and have studied, with hope,
with profit. We may say, briefly, that the New York
conclusions seem to us well-founded and their reasons
clearly stated and very persuasive in favor of the idea.
We have no hesitation in saying that we share their
convictions most decidedly.
IP a g e S e v e n
We had attempted a treatment of the subject in the
abstract, but on perusing the argument in favor of
the installation of a Free Port on New York Harbor,
which was submitted to the United States
New York Tariff Commission by the Industrial
reports Bureau of the Merchants Association of
New York, it became apparent that much
of our matter could be eliminated as mere repetition
of what is there contained in more cogent form, and
therefore what we have to say will be largely supple-
mentary to that argument or illustrations drawn from
Our local experience.
THE PORTS OF NEW YORK AND SAN FRANCISCO
ANALOGOUS IN FOREIGN Olj TLOOK
The geographical situation of San Francisco Bay,
with respect to the Pacific Ocean trade of the United
States, is justly comparable with that of New York,
with respect to the Atlantic trade, even if the New
York trade partakes in larger measure of the char-
acter of world trade. This analogy holds good both
as regards back Country in America and as regards
foreign countries facing us. Russia, through Siberia,
Japan, China, Java, Australia, New Zealand and even
British India now have trade
The ocean unites, relations of great volume and value
it does not divide with and through San Francisco.
This is true also of the eastern
shores of the Pacific, South America, Central
America, Mexico and Canada. Statistics to justify
this Statement are readily available and need not be
cited here. The names of these countries alone call
to mind enormous populations, hungry for our manu-
P a g e E i g h t
factures, cotton, Steel, metals and food products and
other raw materials, and themselves teeming with
food products and raw materials which we need and
must have, not only for our domestic use but also
indispensable if we propose to compete Successfully
with Europe in supplying the world trade. Expatia-
tion on this idea would be easy, but its applications
are obvious. The reasons that are valid in New York
are valid here.
So, like New York, we approach this subject in
no small or local spirit. We have tried to measure
it on the national scale. Is the “Free Port” policy
a wise departure for the nation? Will
The question it pay? Will the results justify the
national, cost? Are its manifest advantages off-
not local set by any demonstrable disadvantages,
that either outweigh the advantages or
Come So near balancing the scale that the change is
not worth while? Can the present customs system, the
growth of a century of experience, be remodeled in its
operative methods and adapted to the free port idea
without disadvantage to the customs revenues either
in cost of Collection or Security against Smuggling?
We have kept these fundamental questions in mind
in reaching our conclusions.
We assume that foreign trade is a
good thing, even an indispensable
thing, for Our Country, and we as-
Sume that a merchant marine
Owned and Operated by our own people, under either
public or private auspices, is highly advantageous,
and, in fact, that recent experience due to the world
war has demonstrated that a merchant marine is al-
Foreign trade and
merchant marine,
national blessings
P a g e N i In e
most vital to the preservation of Our political and in-
dustrial system, let alone a profitable enterprise in
itself.
For the present purpose such assumptions will be
made. We believe in both of them most religiously.
Arguments as to them belong elsewhere and are readily
available. But it is proper to say that
San Francisco it is our profound faith in both as-
a commercial sumptions that makes us vividly re-
community alize the tremendous importance of
the free port idea. San Francisco is
a commercial community. For the seventy years of
its existence it has thrived on foreign commerce. Its
future is bound up in its expansion and extension in
all directions and to all countries. Our horizon is the
world. We want our markets eventually to be every-
where, but without any boasting we have
Our horizon the vision to see that the present begin-
is the world nings in the Orient and on this side of
the Pacific will in the immediate future
grow by leaps and bounds, provided we are not handi-
capped in the race by governmental regulations that
unnecessarily impede foreign trade and which can be
removed by wise changes and no Corresponding loss.
Natural Our natural advantages of geographical
advantages situation, the possession of a harbor al-
for shipping most unequaled in size and Conveniences,
with deep water, negligible tides, no
Storm damage, a mild, even climate the year round,
these give us the necessary basis for foreign trade in a
measure rarely equaled.
P a g e T e n
HELPS AND HIND RANCES
What remains is for us to see that the legitimate
artificial helps are speeded up and that the artificial
hindrances are reduced to a minimum.
Briefly, the artificial helps directly under our con-
trol come under the domain of transportation, ship,
rail and otherwise, switching and other conveniences;
and under the head of general harbor
Artificial helps facilities, including quicker and
to commerce cheaper warehousing and freight-
handling in every department. These
cannot be discussed here, but must be mentioned, be-
cause they must all be connected up with the free port
idea most intimately and definitely before the latter
can be even understood and especially before the latter
can be seen to be an appreciable step in advance. It
is because and principally because the combination of
artificial helps alluded to, in themselves capable of
indefinite improvement, will work better and flourish
and grow better under free port arrangements than
under the present system, that the free port idea is at
all to be considered.
Free ports The difficulty about the argument for
theoretically the free port from the theoretical side
is that it is so obviously sound as to be
axiomatic, and discussion or expatiation tends rather
to obscurity than clarification.
Working with- As a matter of course, freedom from
out shackles customs control, and the incidental
delays, Costs, vexations and losses,
must inevitably benefit foreign trade. To argue other-
wise is to say that a man can work faster or better
with a couple of fingers or a hand tied up or missing.
P a g e E 1 e v. e n
It would be foolish to say that the freedom of the
port in and of itself alone makes a port great in its
volume of foreign trade. We have great ports that are
not free ports. It would be ridicul-
Only one factor Ous to Contend that the trade of Lon-
in port’s don or Hamburg, for example, has
prosperity been due solely or even mostly to the
kind of “freedom” involved in the
free port idea. Many factors and causes, some
natural, as above stated, some artificial, of the kind
alluded to, others that belong under the head of
financial Organization, labor conditions, government
aid, etc., etc., in varying degrees in different great
ports, go to make up the Sum, but what is in point
here is to note and make plain that the freedom of a
port from unnecessary interference by government
officials and rules and restrictions, whether customs or
otherwise, must necessarily and to an appreciable de-
gree be a real factor to be reckoned with. It may not
be so easy to see this in the case of London and Ham-
burg, where the other factors are so overshadowingly
important, but it is very easy to see it in the examples
of Hongkong and Singapore on the Pacific, and it
has been made quite apparent in the recent brief trial
in Copenhagen in Europe. We must content our-
selves to mere references on these aspects of the
subject.
If the freedom of a port is a measur-
able factor in its prosperity, it follows
that Conceivably it may in many cases
be the deciding factor as between it and its foreign
rivals.
But that factor
counts
IP a ge T Wr e 1 v e
LOOK ACROSS THE PACIFIC
A general survey of Pacific
Hongkong and g y * * * *
tº Ocean commerce will in our
Singapore, great te
international markets judgment warrant the con-
clusion that a national free port
policy applied to San Francisco Bay would mean in
a short time the establishment of an international
market on San Francisco Bay comparable in import-
ance with Hongkong and Singapore.
When we consider how much of the trade of both
these great world ports is directly and plainly trace-
able, in the first place, to wise governmental helps of
an affirmative character, and, secondly, to
Largely the absence of Customs control or inter-
artificial ference, that is to say, to the fact that they
are “free ports,” we arrive at some compre-
hension of the degree in which it is true to say that
the greatness of both ports has been largely artificially
established by England.
Both these ports are, on the one hand, practically
“branch stores,” as they have been aptly called, for
the sale in the Orient of goods from all nations, and,
on the other hand, they are the assembly
World places of the innumerable cargoes, large and
stores Small, that come not only from their respec-
tive immediate neighborhoods but from all
Over the Orient, and whose ultimate destination is
Europe or the Americas. In this way are collected,
and then Sorted, graded and packed, the spices, cocoa,
teas, vegetable oils, tin and other ores, rubber, copra
and other raw materials, in immense volumes, that
might indeed have been gathered up elsewhere, but
are gathered up and re-exported by Singapore and
P a g e T h i r t e e in
Hongkong largely because of their superior port ar-
rangements based on the free port policy. These arti-
ficial arrangements have been main, if not controlling,
factors in making them the distribution centers and
market-places both for imports to and the exports from
the Orient.
THE PACIFIC–OCEAN OF OPPORTUNITY
San Francisco Ought to ful-
fill similar functions as be-
tween the Orient and Spanish
America, and we believe the
free port system would help
appreciably in giving a strong impetus to the creation
and indefinite expansion of that branch of foreign
commerce which embraces the re-export trade.
San Francisco, a half-
way station and market-
place between Orient
and Spanish-America
The trans- The argument must be brought down
shipment trade pointedly to that particular depart-
ment of foreign commerce which in-
volves trans-shipment or re-export.
IS THE TRANS-SHIPMENT TRADE WORTH
SEEKING 2
We will fail to understand the question in its nature
or magnitude unless we start with a fair appreciation
not only of the utility of foreign trade as a whole, but
also a sufficient estimate of the large
Its importance department of foreign trade which
not appreciated consists simply of the processes of
handling Over and over again the
Same things, in their passage from the fields of their
production to the factories where they are turned into
goods or to the shops where they are delivered to cus-
tomers, and, Conversely, the repeated handling of the
P a g e F O u r t e e n
finished products on their way out from the factory
to their markets the world over. Of
Its vast and in- Course the profits are in proportion to
creasing volume the volume handled. The profits of
this merchandising commerce go to
the ports best equipped by natural and artificial ad-
vantages and with highly developed financial and
business Organizations. It is a commercial truism that
trade will, within limits, follow the lines of least re-
sistance. And, of course, where customs regulations
are absent, to that extent indubitably will trade flow
preferably through free channels.
Shall America The trans-shipment business of the
share this trade? World runs annually into billions of
dollars. Good authority makes the
figure over four billions. Up to the world war much
the greater part was done in free ports. It is well
worth the effort to get our share.
our share Comparatively, but a very small propor-
small tion of America's trade with foreign na-
tions has come under this head, but its
growing importance has been made more and more
manifest by the developments and changes due to the
present war.
Its centers That business in the Occident has here-
tofore centered in the neighborhood of the
British Channel and the North Sea, and in the Orient
at Singapore and Hongkong.
If American ports want to compete
Clear the path & sº
successfully with European and
of unnecessary & & * * tº
obstacles Asiatic ports in this rich sphere of
trade, we will be handicapped in the
P a g e F i f t e e n
race just in So far as that trade is artificially hindered
by the manner and method of the enforcement of the
customs laws. Nothing is here said or intended for or
against either a high or low tariff or for or against a
protective or revenue system of tariff taxes. We mean
to confine ourselves solely to the manner and method
of enforcing the collection of the tariff taxes, whatever
be the particular policy in force, as to
Tariff policy the kind or amount of the customs dues.
not affected We are familiar with and know from
experience the costs, delays, vexations
and losses due to customs red-tape and Supervision.
They are, we believe, a very serious impediment to the
re-export trade and foreign commerce, generally. If
removed, the gain will be enormous. If they can be
removed by the simple process of putting the customs-
house and its red-tape wholly outside the “free zone”
or “free port”, without any loss to
Costs of instal- the government in revenue, with-
lation of free ports out any increase in the cost of col-
borne by the lecting the taxes and without any
localities favored greater risk of Smuggling, Surely
nothing remains of the argument
except the single question as to whether in the older
ports the change can be effected without too great a
cost for the physical constructions or re-arrangements
necessary to install the free port system. In the newer
ports, where there is much virgin territory to work on,
of course this part of the problem is of easier solution.
In the latter aspect it is proper to point out that on
San Francisco Bay the present situation lends itself
admirably to the proposed change. It would be idle
to go too deeply into that question at this time. If
P a g e S i x t e e n
the policy be a wise one nation-
San Francisco Bay ally, the natural advantages above
an ideal site for adverted to, an inspection of the
free port San Francisco harbor on both
sides of the Bay of San Francisco,
a consideration of the commercial propensities and
aptitude of our people, the evidence furnished by
immense recent outlays for harbor improvements and
the Superior facilities now available, all combined
demonstrate the justness of the conclusion that San
Francisco Bay is an ideal site for a “free port”.
In the arguments and data appended to this report,
contributed by Sub-Committees, and which are incor-
porated herein in Support of Our conclusions, the argu-
ment from economy frequently appears. It may be
reinforced in another way. The multiplication table,
it must be remembered, will be industriously at work.
It figures enormously in the balance of advantages.
Even the smallest economy in handling freight due to
the superior arrangements practicable only in a free
port with well co-ordinated transportation systems and
freight-handling devices, multiplied by the number of
times the operation takes place in the course of a year,
soon runs into fabulous figures. People are astonished
to be informed that it often costs as
The argument much to transfer a box of apples from
from economy one part of a city to another as to ship
it across the continent. And similar
amazement will follow the institution of a free port,
where, under freedom from customs interference,
cars, ships, warehouses and all the other means and
methods of Collecting, transporting, Sorting, cleaning,
packing, grading and other manipulation of goods
P a g e S e V e m t e e n
and materials, are brought into closest juxtaposition,
and consequently where all these intricate and complex
things may be done with the minimum of friction,
delay, cost, vexation and loss. A saving in the Smallest
point of the entire operation multiplied by the endless
repetitions of the same thing year in and year out,
what will the figures amount to? Our new habits of
thrift may give some faint idea of the total.
The argument Opponents of the free port policy will
contra point out that Our present enormous
foreign trade has grown up in the
absence of the free port policy, and that it will un-
doubtedly develop indefinitely under the present
system of customs collection, with such modification
as may be suggested by experience as we go along,
and that such a radical departure as that involved in
the establishment of free ports is for that reason
unnecessary and, because of the cost and Confusion
of the proposed changes, unwise.
It is plain that the argument for the new policy
will fail unless we demonstrate that the gains in
efficiency and economy will probably outweigh the
costs and other disadvantages of the change,
GIVE FOREIGN COMMERCE WINGS, NOT SHACKLES
Anything like an exact calculation of such obscure
and complex factors is extremely difficult, but our best
judgment, based on the experience of foreign ports,
a working acquaintance with our own
Advantages present customs and harbor Systems, and
summarized a study of the question in the abstract,
has convinced us that under a free port
system foreign trade will be expanded and its profits
enhanced in the following ways:
P a g e E i g h t e e n,
Re-exportation First : It is self-evident that re-
stimulated exportation, even in Original pack-
. ages, will be facilitated, speeded up
and cheapened, if the goods and materials do not have
to pass through the customs-house at all.
Second : Storage in non-bonded warehouses will
be facilitated, accelerated and cheapened. The ideal
arrangement is to have them right alongside the land-
ing places. Right alongside the ware-
Storage houses should be the railroad Switch yards,
improved connected up with the many trans-contin-
ental and state systems that may be brought
to the wharf directly or by a connecting belt railway
switching system. The bonded warehouse would not
be eliminated, but would be provided outside and not
inside the free zone. Its present advantages could
thus be retained.
Third : Inside the free port re-packing, blending,
mixing, cleaning and other legitimate commercial
manipulation of merchandise des-
commercial treat- tined for re-export is facilitated.
ment of imports These things can go on in the
made possible warehouses of the free port or in
Open places provided. In bonded
warehouses these processes are “cribbed, cabined and
confined” in a way that not only seriously impedes but
often in instances totally prevents the business.
Fourth : Foreign merchants can maintain sample
or consignment stocks therein without duty unless
finally admitted into the country. The customs-house
only protects itself from Smuggling.
A real trading That would be a great advantage. It
market has been proposed, since the Panama
Canal opened, to have a perpetual
P a g e N i n e t e e n
exposition of goods on the Isthmus, where foreign and
American merchants could maintain Sample and con-
signment stocks. That would be advantageous to both
sides. And why not in free ports elsewhere?
Fifth : Quickened and cheapened distribution of
goods into the interior or to other nations on our other
frontiers. This would tend to build
Improved distri- up distribution Centers. The geo-
bution facilities graphical location and the topo-
graphical features of San Francisco
Bay make it ideal for a vast distributing center and
international market-place.
... Sixth : For steamships, emphatically
Steamships . º ) ) pS, pnati
unchained time is money. If we could eliminate
or materially lessen the delays due to the
customs-house, so much the better for the ships already
in the trade; so much greater the inducement for
other ships to come.
Seventh : The free port tends strongly
to make ships sure of cargoes both going
and coming, by making practicable the
distribution of incoming cargoes to, and the assembly
of out-going cargoes from, tributary territory, thereby
attracting ships which would otherwise go elsewhere.
Eighth: The required facilities
would be furnished for all freight-
ing Operations between ocean and
rail carriers and warehouses and to and from all of
them, without customs impediments, until the freight
was about to enter customs territory.
Full cargoes
both ways
General freight-
ing unmolested
Ninth : It results in saving, due to such freedom,
in time, labor, worries and losses in transfer of freight.
P a g e T W e n ty
Handling, drayage and other ex-
savings in many penses would be reduced. There
directions would still be customs-house brokers,
but cargoes would not have to deal
with them or through them while the goods were in
the free port. There is no doubt that their business
would be simplified by an arrangement where the
customs-house is at the gates of the free port.
The change Tenth : From the pecuniary Standpoint,
would pay the one from which we ultimately look
at this problem, the returns must un-
doubtedly be correspondingly enhanced both to the
carriers, ship and rail, and to the merchants, importer
and exporter.
Eleventh : The greater the natural advantages of
the port from its geographical and topographical
features and from its market and trade connections, and
the better its harbor improvements and
Works with facilities, the more Surely and immedi-
nature ately and largely would the benefits
flowing from the institution of the free-
dom-from-customs control system be reaped. Freedom
alone will not make a port big or prosperous. It is
simply one of the desirable factors.
ALL INTERESTS BENEFITED BY FREE PORTS
The free port system certainly adds to the pleasure
of foreign business, adds to its profits and adds to its
volume.
The benefits may be considered from different
standpoints.
tº First, from that of the owners or charterers
The ship * tº te
of the ships. It is self-evident that the
P a g e T w e n tº y - O n e
ship's owners and the charterers would be benefited
enormously. The system would strongly tend to build
up a self-sustaining national merchant marine.
- Second, from the standpoint of the
merchants, importer or exporter, the
advantages are equally plain.
The merchant
Third, from the standpoint of harbor administra-
tion. If the customs-house toll gates were at the
entrance of the free port, harbor arrangements would
inevitably be in far better shape. The customs-house
man and his necessary interference
The port on the wharves would be eliminated.
administration In our experience in San Francisco
we found that many times consignees
are unfair in a practice of making the customs-house
an excuse for keeping cargoes on the wharf longer
than they should be kept; and freight congestion is
alleged to be due to inadequate wharf arrangements,
when, in fact, it is frequently a case of juggling in
order to secure free storage on the piers. It means
much to the port to have this congestion reduced to
the lowest terms. It is a very serious and costly detri-
ment to a port to have the wharves piled up with
goods because real, and frequently pretended, customs-
house requirements compel it.
Fourth, from the standpoint of customs-house admin-
istration. We are aware that this is one of the hard
knots of the problem. From the customs standpoint
the free port arrangements must, of course, be entirely
consistent with the sure and cheap
The customs collection of the customs tariff; but the
administration experience of the free ports of other
nations, even with high tariffs of a
P a g e T W e n tº y – t w O
protective nature, would indicate that customs ex-
perts can find a solution of that feature of the prob-
lem. We appreciate the fact that the burden is on
the advocates of a free port policy to show that present
customs arrangements operate on foreign trade as a
handicap of really serious proportions, that they not
only increase unduly the operative cost of the foreign
trade we now have, but also in all likelihood prevent
new trade coming or otherwise hinder its growth, or
give rival ports, without these hindrances, just that
much advantage in the contest. We have tried to
keep the practical in mind and avoid anything that
savors of the academic. In this view we sought the
advice of experienced customs-house brokers, because
in the end the decision arrived at by Congress will
doubtless be based largely on what may be thought
to be the teachings of customs-house experience. An
article on the subject from this standpoint by Mr. F.
F. G. Harper, who has had many years experience in
San Francisco as a customs-broker, is appended and
will no doubt be found instructive.
Fifth, from the standpoint of the manufacturer.
We refer, firstly, to manufactures within the free port
for export to foreign countries of products wholly or
partly made from imported raw materials, which
under the present system, would be
The subject to duty in the first instance and
Manufacturer upon which draw-backs are now al-
lowed when exported. The draw-
back system is so little in vogue in San Francisco that
Our experience is an insufficient guide as to its real
merits. The consensus of opinion is that up to date
it has not been of much use. It is generally denomin-
P a g e T W e n tº y – t h r e e
ated by those who have sought to use it a nuisance
rather than a genuine stimulus to such trade. We
must leave the draw-back question to the experience
of larger manufacturing centers. Of course, if such
manufactures were centered within the enclosures of
the free port, it would require just so much more
land area, La Consideration that, generally speaking,
would probably confine that department of the free
port within comparatively small proportions.
Probably the principal advantage that the freedom
of the port would contribute to the American manu-
facturing industry as a whole, not only in regions
near the ports but throughout the country, would
result from the creation in such ports of international
market-places for the assembly of foreign raw ma-
terials needed by our manufacturers. This feature of
the subject is ably set forth at length in the New York
article alluded to and we leave the matter there.
ADDITIONAL REPORTS
Foreign trade We also append an article prepared
considered by Mr. John Clausen, of the Crocker
National Bank, on behalf of our sub-
committee on Foreign Trade.
His committee circulated questionnaires, of which a
sample is attached, among those interested in the
foreign trade. An admirable answer was received
from Mr. J. H. Polhemus, of the Hamberger-Pol-
hemus Company, a long established firm of exporters
and importers, in San Francisco. We incorporate
this in our report, as written, as an illustration of what
our merchants have learned from actual experience,
touching on the free port idea.
P a g e T W e n ty – f o u r
We have accepted Mr. Kent's suggestion that until
Congress has first declared in favor of a free port
policy by general legislation, arguments in favor of a
particular locality as a suitable site for a free port
will not be opportune. We recog-
Selection of free nize that they will be appropriate
port sites an after for later consideration, either by
consideration Congress, if it directly names the
sites, or by the Executive Depart-
ment or other bodies to which that duty may be dele-
gated under general laws. However, as certain pre-
liminary reports on the suitability of San Francisco
harbor, on both sides of the Bay of San Francisco,
have been submitted, we take the liberty of forward-
ing them for filing, to be presented later at the proper
£1me.
CONCLUSION
In conclusion, we desire to emphasize the desira-
bility of as quick a decision as possible by Congress
on this weighty question. Space will permit of only
the barest reference to the profound
Full speed changes in the currents of the world's
ahead commerce that will Surely result from the
world war and the full use of the Panama
Canal. The enormous merchant marine in process of
creation must continue to be used when peace returns.
Preparedness for peace cannot be neglected except
for war measures, but should go on where consonant
with them. And it is difficult to see in what better
direction preparedness for peace could
A giganti e g
i.; C move than in perfecting our harbor fa-
facility cilities for handling foreign commerce.
The free port arrangement is simply
P a g e T we n tº y – f i v e
a gigantic harbor facility, and, we believe, one that
can be made most fruitful in its application to Our
country. It will take much time and labor and money
to carry it out, and the period of indispensable
preparation should not be postponed longer than is
necessary. -
P a g e T w e n tº y – S i x
ADDEN DA
g=ºs
REPORT OF SUB-COMMITTEE ON CUSTOMS
MATTERS
Concrete examples We have given considerable time to the
of obstacles to effort to obtain concrete examples of
foreign trade delays and expense that the importers and
vessel owners have been put to by reason
of having to comply with customs, rules and regulations,
confining ourselves to those that would be eliminated by the
establishment of a free port.
Very rightly it has been said that customs is the first and
last word on this subject, and our committee has endeavored
to forecast the movements of the foreign commerce of this
port with respect to sources and classes of merchandise in
order to understand where this increased commerce would
encounter delays and expense due to customs supervision.
We have also had to take into consideration that the present
tariff is one mainly for revenue only and that another
Administration might revert to larger and more numerous
protection features, and hence many articles such as coal,
hides, coffee, etc., in the line of bulk goods, and numerous
manufactured or packed goods now on the free list might
again become dutiable and require weighing, gauging, measur-
ing, appraising, etc., as well as examination by the Pure Food
Inspector, Bureau of Animal Industry, etc. Therefore,
although we are able to report on Some of the hindrances
that have existed in the last few years, undoubtedly there
are many more difficulties, which existed under other tariffs
and would recur with a change of tariff laws.
Advantages detailed, In enumerating some of the advantages
if obstacles removed to shipping by eliminating customs con-
trol, we summarize as follows:
P a g e T W e n tº y – S e V e n
SAVING OF TIME AND EXPENSE TO VESSELS
(a)
(b)
(c)
(d)
(e)
(f)
Savings in stevedor-
ing and other charges
Delays due to customs boarding officers would be obviated.
Prompt docking and uninterrupted discharge of cargo.
Omitting necessity of giving heavy bonds to customs,
obligating steamship agents to pay any loss of duty by
fire, theft, casualty, etc., and the consequent delay while
these matters are adjusted with the customs.
Not being required to make application to customs,
obtain permit and pay for Inspectors’ services when it
was desirable or necessary to work early or late hours,
or on Sundays and holidays.
Bonded and/or foreign cargo laden or unladen at will.
Vessel’s discharge not stopped because of some error or
delay in customs papers, which, at times, besides the cost
by reason of delay, has entailed fines to vessels ranging
from $100.00 to $5000.00.
Not being required to keep draw-back goods separate
from other cargo and give to the customs officials six
official hours notice before lading same.
No further holding of teams on the dock until Customs
Inspector is able to check all bonded goods teams may
have, before loading on vessel, or unladen bonded goods
teams may have, for export vessel, bonded warehouse
or appraiser’s store;—this checking would be done outside
of free port. Once goods were placed on the dock, either
from or for the vessel, no customs delay could occur,
thus securing more prompt clearing of docks.
Considering the foregoing few items
noted, it is easy to perceive that there
would be a great saving in Stevedoring
and other charges because of frictionless handling, it not
being necessary to stop and learn whether the customs had
passed this or checked that draw-back or bonded package if
outgoing, or any and all packages if incoming, which, if it
had not been inspected, would have to be passed by or
moved aside until the Customs Official was done with it.
Also, if I understand correctly the methods in force at
Hamburg, a violation of the Chinese Exclusion Act and
violations because of the desertion of
Governmental inspec- alien seamen in this port, would be practi-
tions facilitated cally impossible as to those vessels whose
cargo was all foreign and could be dis-
P a g e T we n tº y – e i g h t
charged at the free port and take on other cargo which have
been assembled there for them, because then these vessels
would not touch at other shores of San Francisco Bay, and
the watchman of the vessel and Harbor Police would see
that these people were kept on the vessel and the customs
would be the guards at the other gate of the free harbor to
stop them, provided they had eluded the first two systems
of guarding. At the outer gate those with the right to enter
the United States would be examined and passed, or they
could be taken direct from the vessel on the tug to Immi-
gration Station.
Onerous fines, often All Shipping men are very familiar, to
undeserved their sorrow, with the very heavy fines
paid for violations of these laws. We
will note a half dozen items of fines charged covering the
recent record of a little over one year of fines assessed to
vessels in this port out of about forty different causes:
Vessel fined for failure to produce duplicate bill of
health, maximum fine $5000.00
Area for steerage passengers not posted, fine.................. $ 340.00
And additional fine against the master of.................... $ 100.00
Failure to include certain items on the outward mani-
fest of vessel, fine $ 500.00
Discharge of foreign merchandise without authority in
absence of inspector, fine -
es e s - m an Treble the value of merchandise and forfeiture of vessel
In this case the master had gone ashore, and the
barge man and the mate, who were unfamiliar with
Customs regulations, agreed that the barge could
receive cargo in the stream, remaining alongside
vessel until next morning. But later in the day as it
appeared a storm was coming up, the barge man
moved the barge to the dock. In view of these cir-
cumstances, the fines were mitigated to a charge .
against the vessel of $ 700.00
and against the barge owner of $ 200.00
These were paid, with the attorneys’ costs and
there was also the loss of time in preparing and
presenting defense, etc.
Failure to make entry and enter merchandise at the
Customs House - $1800.00
P a g e T w e n t y – n i n e
Failure to enter within twenty-four hours $ 100.00
Bonds are now required to be given for residue
cargo which is to be discharged at following foreign
ports and in order to cancel said bonds a lading cer-
tificate or other evidence is required from abroad.
This is a heavy obligation and it is sometimes diffi-
cult for steamship owners to obtain the necessary
certificates to cancel said bonds.
There are many more cases of minor infractions of our
Customs rules, some perhaps because the Government under
whose flag the vessel sails, does not enforce certain rules that
we do, such, to give a few examples, as those in our so-
called seamen’s bill, those laws requiring the marking of
part of the equipment of a vessel, and the maintenance of
two compartments exclusively for hospital. Frequently, fines
are assessed for breaking the Customs seals, and for error in,
or for not filing, complete store list of vessel. These fines
are sometimes mitigated and sometimes remitted. But in
such cases the offense has been trivial, or there were exten-
uating circumstances. Nevertheless, discharge of vessel has
been stopped, master or owner has had to attend at the
Customs House and expense has been incurred in defending
the charge.
The foregoing few items clearly indicate that
a free zone, eliminating such annoyances and
losses undoubtedly is beneficial to vessels
and particularly attractive to new liners or tramps, they
knowing that costly fines and delays encountered with Cus-
toms would not be possible at the San Francisco Free Harbor.
For to steamships, most emphatically, time is money, and
the knowledge that all Customs requirements were done
away with, would be the greatest inducement possible to offer
for other ships to come to this port.
Tramp steamers
attracted
A seaport originates and grows principally
because of the export and import trade of
its own country. But the facilities devel-
oped for this trade render such a port also the natural center
where trade between neighboring foreign countries will focus.
The small ports of Mexico, of Central America, even the
*
Free ports act like
magnets to trade
P a g e T h i r t y
Atlantic ports of South America, cannot have direct sailings
to and from all Oriental ports. It will be natural for many
of the goods from these ports to be transshipped here,
especially as San Francisco is but four or five hundred miles
off the great circle steamer track between the Panama Canal
and the ports of China, Japan and Siberia. But as long as
we maintain a tariff, means must be provided to diminish or
eliminate entirely the avoidable obstacles which it presents
to the class of trade just described. Three different plans
have been devised. Two of them—the draw-back system, and
the system of bonded warehouses—are in use at American
ports. If they were adequate, this report would not have
been written.
We should provide a better means of procedure for export
trade, leaving the bonded warehouse to supply a necessary
method of handling foreign goods for domestic consumption.
THE BONDING SYSTEM
Under the bonded warehouse system, dutiable
goods may, before the duty is paid, be taken
from wharf to warehouse; whence at any time
within three years they may be exported. At the end of
three years the duty must be paid ; likewise, if it is at any
time desired to use the goods in the United States. And to
insure that the goods be not used without payment of duty
the hauling to and from dock and the storage must be done
by business concerns who have given heavy bonds to the
Government. In addition, the Owner of the goods must also
be bonded in the amount of double the duty that would have
to be paid, should the goods be smuggled, lost, stolen or
destroyed.
Bonded
warehouses
The movements of the goods have all to be
under the supervision of Customs Inspectors, and
the bonded warehouse is in charge of a Customs
Storekeeper, by whom it is closed with a special Government
lock during the noon hour and Outside of business hours, so
that not even the owner of the warehouse may enter during
his absence. No work within the warehouse is possible out-
side of these hours without special permission and heavy
Restricted
operations
P a ge T h i r t y - O n e
expense for Customs Overtime. Goods must be piled so that
they can be checked at any time by special Treasury Depart-
ment Agents. A multitude of other rules must be observed
far too numerous to mention, so numerous in fact, that they
occupy three chapters of the present Customs regulations.
It is obvious that the expense of the bonds
and the required supervision, in transit, upon
receipt, while in warehouse, upon delivery, and again in
transit, not only directly increases the expense of handling
and storage, but also indirectly, through the slower move-
ment entailed.
Enhances costs
Working with There are Other disadvantages, altogether too
hands tied numerous to be detailed here. We will briefly
hint at one or two. Cases can be opened only
when damage to the goods is threatened and special permis-
sion first must be obtained and the work done in presence
of Customs officers. Goods cannot be transferred to other
cases, either in whole or in part. Duty, if paid, must be
based on original value, and must be paid on full contents of
the package, even when there has been deterioration during
storage. We will merely hint at the expense involved in
general orders to store goods as unclaimed and at the further
stringent rules applicable to warehouses bonded for special
classes, such as Spirits and tea. Enough has been said to
show that the device of bonded warehouses falls far short of
meeting the requirements of a large foreign trade under
competitive conditions.
THE DIRAW-BACK
When the dutiable article is a raw material used in manu-
facture either alone or with other raw materials. native or
foreign, the bonding system of course cannot be used, and the
Customs provides that, upon the export of such manufac-
ture, a rebate of the duty is granted on such part of the
actual foreign material as is contained in the exported manu-
facture. To illustrate, imported chicle is used in the manu-
facture of chewing gum ; imported feathers in making pillows
and mattresses; foreign tin plate was formerly used in large
quantities in making cans for our salmon and fruit. When
P a g e T h i r t y – t w O
the gum is exported the duty of 15 cents per pound on the
chicle is subject to draw-back (after deducting 1%) and
similarly, as to the feathers and the tin plate actually used in
the cans.
Here again, however, is a complicated
and difficult system. The imported
goods must be kept separate in the
factory, its records must be kept as prescribed, and both
goods and records must be open to inspection at any time.
If the factory is incorporated, its articles of incorporation
must be filed at the Customs House; six official hours notice
of lading upon export vessel must be given, so that the
inspector may be present and check the goods; oaths to all
transactions must be filed by importer, foreman, Superin-
tendent and exporter; trade secrets as to manufacture must
be disclosed. Finally, evidence of foreign landing, or a bond
to obtain such evidence, must be furnished. If all this, and
still other details, be properly attended to, the draw-back is
payable thirty days after shipment.
A complicated system,
h a ting, vexatious
So complicated and unsatisfactory is this system that it
can be used with profit only in a very large export business.
Quite a few of our local merchants, after experience, aban-
doned all thought of applying for the draw-back.
IMPORTATIONS FOR CONSUMPTION IN THE
|UNITED STATES
The matter of valuation is one of the most
difficult features, and one about which all
importers have at one time or another some
trouble with the Customs. The value must be the wholesale
market value in the principal markets of the country or place
of shipment at the time of shipment. Frequently, goods are
bought under contract, or for some reason the shipper sells
at a lower price. The chairman of this sub-committee was
recently told the following instance by an importer: Under a
previous tariff hides were dutiable. A Mexican rancher had
shipped some hides to this importer. In that country, hides
are a sort of by-product, of practically no value, so a nominal
Valuations a great
puzzle
P a g e T h i r t y – t h r e e
value was placed on the invoice. This was raised by the
Customs, and the importer was required to pay a heavy
fine, the reason for which the shipper is naturally quite
unable to understand. Using the Spanish for “Never Again,”
he is shipping no more hides to this port.
A large shipment of refrigerated egg meat in tins
arrived on one of our Oriental liners some time
ago. The goods could not be landed until arrangements had
been completed to haul at once to a bonded refrigerated
warehouse. But there was no wholesale market at the place
Of shipment, and the question of value required telegrams,
cables and much discussion with the Customs, and caused
heavy expense because of delay to vessel, of overtime charges
at vessel and at warehouse charged by draymen, Stevedores,
ship's clerks, Customs Inspectors, weighers and custom's
storekeeper. In a similar New York case, the importer, to
keep the vessel moving, took a chance on his invoice value,
and had to pay some thirty thousand dollars in fines.
Illustrations
In addition to the rules designed to in-
sure collection of the duty, the Customs
is charged also with the enforcement of
certain other complicated laws, such as the Chinese Exclusion
Act, the Pure Food Law, the laws under the Bureau of
Animal Industry, the Copyright Law, etc.
Numerous other laws
and rules
When damaged goods arrive, they must be
held on the wharf until the Customs adjust
with the importer. Frequently, marks are
obliterated. Sometimes the condition is such that it is im–
possible to get a count of the damaged portion. Conse-
quently, there is apt to be a dispute involving the importer,
vessel and Customs. The importer is not permitted to recon-
dition the goods, because the identity would be lost or it
would be impossible to keep such a check that proper duties
would be paid. In many cases it is cheaper to accept the
Only method provided by Customs laws and abandon the
goods, provided that the portion damaged is more than 10%
Of the shipment. But the damage must be discovered and
the goods abandoned within ten days after making entry.
Disputes multiply
needlessly
P a g e T h i r t y – f O u r
THE FREE PORT AS AN IN DISPENSABLE AID
TO RE-EXPORT TRADE
Enough has been said to show how utterly impossible it is
to think of our controlling any large amount of the trans-
shipping trade between foreign ports until some means is
adopted to avoid entirely the Customs barrier as regards
such trade. The only method that has been suggested is the
Free Port.
We shall endeavor to illustrate by concrete examples the
various advantages which have been set forth, and we think
it can be shown that the establishment of Free Ports in this
country would benefit not only the seaports at which they
might be located, but would also be of immense advantage
to the export trade, to manufacturers, to banking interests
and to the country generally.
The interrelations of the various factors of trade are such
that each reacts on all the others. Any facility which in-
creases trade thereby brings nearer the range of possibility
larger facilities which would involve too much capital or too
much space for the smaller trade. Increased quantities mean
lower prices and cheaper freight and these again Open new
markets and again increase quantities. In this way the vari-
ous advantages which we can anticipate if Free Ports be
legalized would be cumulative, and the ultimate development
might very well surprise the most optimistic. This aspect
of the question should be borne in mind in what follows.
GRADING, REPACKING AND SORTING
If after goods were landed in the Free Port, sorting and
grading by the importer showed that some portion would
not be allowed into this country, such goods would be
regraded and packed for any foreign markets available. If it
were desired to ship two or three articles out of one case to
Salvador and two or three others to Guatemala, and SO On,
it could be done. This would increase imports greatly, since,
first, the cost abroad would be less (buying in bulk and
unsorted, etc.), and, second, the larger quantities purchased
would aid in lowering the cost price.
P a g e T h i r t y – f i v e
There are undoubtedly many articles that could be im- .
ported into a Free Port and regraded, repacked, or recondi-
tioned, or small quantities of which could be taken out of
one case and used to fill into cases with other goods suitable
for certain foreign markets. As one example, beans. In
1910, when I returned from a trip to the Orient, I mentioned
to one of the large bean dealers of this city that an immense
amount of beans was to be had in Japan, Manchuria and
Siberia. He replied that they would buy shiploads of this
commodity if they were able to buy graded goods; that the
main trouble was that the Oriental shipper did not know
how to grade, or would not do it, and when the goods
arrived here it was impossible for the importer to sell them.
I expressed surprise because we grew beans to such a large
extent here, but he said that the demand was so great that
they could take any amount of beans and sell from this
market if they only had a way of selecting, grading and
packing such goods in the Orient, so that when they arrived
here they could be immediately sold and dispatched. Mani-
festly, a Free Port here would put the importer in the posi-
tion as though his beans were in the foreign country just
outside of his door. In other words, he would step across
to the Free Zone, do the packing, regrading, etc., himself,
pay his duty on the portion which he desired consumed in
the United States and export the other without molestation
from officials.
Other familiar examples are pepper from Singapore, rice
from China, coffee from Central America, matches from Japan
and gums from Java. The resorting, regrading, repacking,
etc., of these goods into such shape as is necessary for cus-
tomers at other foreign points, our merchants cannot handle
because of Customs hindrances, whereas a Free Port would
permit all of this.
Very recently the Customs regulations have been changed
as to the bonds given by importers so that one bond given
by an importer obligates him to fulfill all of the terms of the
laws under the Customs and other before-mentioned Acts,
and it frequently occurs that shippers sometimes without
knowing better, and at other times for the purpose of
P a g e T h i r t y – S i x
“getting by’’, send articles to importers which are in violation
of the aforesaid laws and the importer knows nothing about
it until after his entry has been made and he has become
the victim and therefore must pay the penalties. Had the
goods been landed at a Free Port, he would have taken his
samples, probably place some of the goods in warehouses of
the Free Port, and there made his entry for those goods
which were in the proper condition for making entry.
A Free Port would obviate much of the disturbance inci-
dent to a change of tariff. To illustrate: Coffee, tea, and
other commodities, which are free of duty are collected at
this port, often in small lots, and when foreign Orders are
received, they are filled from these shipments. When upon
our declaration of war, it became necessary to devise addi-
tional taxes, it was proposed to levy a
duty upon these commodities. What a
furore this created with the trade. Con-
tracts for either foreign or local trade,
made at prices based on no duty, could
not have been filled without loss, because
it would have been impossible to find transportation for a
sufficient quantity before the new law would have become
effective. If we had had a Free Port the foreign trade would
have continued without interruption, while, on all goods
finally entering the United States for consumption, the Gov-
ernment would have received its duty in due time. Further-
more, owing to the increase of business which this existence
of a Free Port here would bring about, as previously explained,
the stocks on hand, being graded and awaiting foreign orders,
would have been so much larger than were actually on hand,
that existing local contracts could have been completed
before the duty would have become effective.
Free port easily con-
forms to tariff
changes
Recently an order came here from Russia for 100,000 bags
of coffee. Had coffee not been free of duty and no Free Port
here, this market could not have had that trade because the
answer to the prospective buyer must have been :
“It is too bad, but we have paid duty on this coffee and
cannot now quote you a good price.”
P a g e T h i r t y – S e v e n
BENEFITS TO THE INTERIOR TO THE WHOLE
|UNITED STATES
Although it might seem that the freedom of the port would
contribute mainly to the encouragement of importations from
foreign ports, yet it is manifest that such encouragement to
come to this port would thereby be given to so many steam-
ship lines, and to tramps and Sailing vessels, that our whole
state and other states of the United States that produced
anything suitable for a foreign market would also be very
greatly benefited, because there would always be vessels here
ready to move their commodities. The interior merchant,
manufacturer and farmer would not find to his sorrow, that
his shipment was not on the ocean, but held with some
thousands of cars of freight in this port that are destined for
the Orient, Australia, etc., for which we have no vessels and
no warehouses, as is the condition today. And such loss
would not be avoided in many cases, even in times of peace.
As to Hamburg, I recall some ten years or so ago,
long before the war, a forwarder of Hamburg came
to the United States and made contracts with large houses all
over the Union, at both sea-ports and interior cities, to
furnish them with their goods from Germany and Austria
within a certain period. There was to be no uncertainty
about receiving Christmas, Easter, or other seasonal goods,
in time. He secured a large business. Necessarily, that
meant that he visited the factories all over Germany and
Austria, and instructed these people when and how to for-
ward the goods by rail or river or canal up to the Free Port;
here he sorted the assembled goods and marked them, and
when the steamer arrived in the Free Port of Hamburg, the
vessel got quick dispatch and the shipper low freight rates.
There was no such disorganization as we have in recent
years witnessed at East and West ports in the United States,
loaded cars shunted here and there awaiting steamers,
perishable goods spoiled, sales lost, because goods did not
reach destination on time, and the interior farmer merchant
or banker disgusted with efforts to do foreign business.
Hamburg
P a g e T h i r t y - e i g h t
copenhagen. In the Free Port of Copenhagen, the importer
can secure up to 75% of the value of his stored
goods. Though it is a little out of the province of this Sub-
Committee, we may be pardoned for calling attention to the
opportunities which the banks might anticipate through loans
on goods temporarily in port. The large item of handling
exchange on all the greatly increased shipments is obvious.
It is recognized that we are a producing country now, with
a surplus to dispose of, and foreign markets are absolutely
necessary.
Our people only faintly apprehend the degree to which our
foreign commerce is dominated by Customs control. Every
move made by vessel or cargo, master or importer, respect-
ing foreign goods must first have Sanction of Customs.
We hear the cry of “crowded docks”. “If we could only
make consignees take the cargo away”. You say, “Con-
signees make the excuse, ‘Customs have not issued permits;’
we want more docks”. What good would more docks do
other than to make more room on docks for importers to
use as warehouses, unless you get customs dispatch? Does
it not seem clear that a Free Port solves the problem as to
foreign cargo and further, thereby, releasing other docks for
domestic cargoes?
THE OPPORTUNE TIME
America is now about to get its ships. Millions will be
spent on the shores of this harbor for shipbuilding plants.
Other millions will be devoted to harbor facilities to take
care of the trade the ships will bring. We are told that the
Government is to build fleets of river boats. The railroad
terminals will be enlarged with reference to the harbor plans.
A period of tremendous trade development is certainly
imminent. Is all this to go on without any provision for
the elimination of the intolerable friction inseparable from
present arrangements? It is unthinkable. No comprehen-
sive plan for harbor development can be undertaken unless
provision is included for the establishment of a Free Port
on such a basis that its facilities for years to come can keep
abreast of the harbor's increasing trade.
P a g e T h i r t y – n in e
REPORT OF SUB-COMMITTEE ON FOREIGN TRADE
So numerous are the angles of approaching the subject of
a Free Port or Free Zone policy that a great deal of time
and space could be devoted to its discussion.
The rapid and substantial growth of Free
Ports operated by other nations, whose
business consists mainly in transshipment
and exportation, however, furnish convincing data in favor
of such a national move.
Foreign experience
teaches
The universal testimony appears to be that a Free Port
has aided immensely in quickly building up both the foreign
and domestic trade of every harbor where it has been prop-
erly established.
When we realize that Hamburg in 1913 had forged
ahead until its foreign trade surpassed London by
One Hundred Million Dollars and far exceeded
Liverpool in imports, notwithstanding the fact that England
is a free-trading country; that Hamburg's total foreign com-
merce was only Six Million Dollars under that of New York,
and that Hongkong surpassed New York in clearing foreign
trade tonnage several years before the war, Singapore
advancing as a collecting and distributing center, and Copen-
hagen winning the trade of the Baltic, it becomes apparent
that the Free Port is not a mere theory, but a practical
producer of prosperity.
Examples
abroad
Traveling and visiting many harbors, making observations
and holding discussions with captains and shippers large and
small, will demonstrate to anyone the important place that
harbor facilities occupy in the commercial development of a
city.
Industrial and commercial development
are dependent upon transportation. The
efficiency of transportation, rail or water,
is measured by the cost and speed of handling goods.
Transportation, back-
bone of commerce
Inadequate harbor facilities poorly correlated with rail-
road transportation are prime contributors to the high cost
of living, as slow and expensive circulation of supplies
P a g e F or t y
inevitably add to their cost. It is obvious that the more
hands through which goods pass from producer to con-
Sumer, the more the public must pay.
The war has made our people appreciate
more than ever before that we cannot
claim or hold commercial supremacy, if we are inefficient
on the sea.
Seek sea-efficiency
At the opening of the Civil War American ships were
carrying 70% of our exports and 65% of our imports.
At the opening of the world war in
August, 1914, Great Britain, Germany,
France, Italy, Japan, Austria-Hungary,
Russia, and Belgium controlled 72% of the world’s ocean
carrying capacity, and although Our foreign trade, exports
and imports combined, amounted to Four and a Half Billion
Dollars, or more than one-tenth the world’s business, our
merchant marine was capable of transporting only nine
per cent. of it.
Revive our merchant
marine
At the end of the war we will have materially gained in
tonnage, and Old Glory will be floating from the taffrail of
a powerful merchant fleet.
It is then that the need of Free Zones in the United States
will become immediately apparent and immeasurably valu-
able.
Your Sub-Committee on Foreign Trade sent
out a questionnaire a copy of which is hereto
attached—to leading firms engaged in or inter-
ested in shipping activities, and obtained much helpful
information regarding advantages which a Free Port would
lend to develop Foreign Trade through the Port of San
Francisco. This was supplemented by individual research
and investigation, personal interviews and discussions.
As a result of this work we are able to
present a resume containing a variety of
arguments showing the benefits of a
developed and properly organized Free Port.
Questionnaire
sent out
Resume of advantages
to foreign commerce
P a g e F O r t y – O n e
1—Ports are the gateways through which commerce must
pass. Every form of waste, whether of time or money,
that can be eliminated, means to that section and to
the country added facilities.
2—The establishment of Free Ports will tend to encourage
new business and make land area more valuable as a
terminal and cheaper as an entrepot. Traffic follows
the line of least resistance, with saving of time, labor
and money.
3–By handling traffic more economically and expeditiously
a Free Port or Free Zone will encourage and give
impetus to surplus production, and benefit shippers,
consignees and consumers.
4—Free Ports will be the means of saving interest on large
sums of money by precluding the necessity of tying
up funds for Customs duties whilst goods are held in
warehouses.
5—Free Ports will increase the speed and decrease the
cost of receiving, transferring and reshipping of mer-
chandise.
6—Free Ports accord facilities for unloading goods which
may be stored, packed, mixed, assembled, manipulated
and even manufactured within the Free Zone with the
greatest possible freedom. Manufacturers are accorded
the privilege of exhibiting and demonstrating their
goods, grading and altering same for domestic or
export use. Buyers can examine, test and compare the
commodities of the world before making purchases.
7—Well developed Free Ports or Free Zones in the United
States stimulate the growth of exporting houses and
enable them to hold goods for set periods without the
payment of duties, often equal to the cost of the
commodity itself. Besides supplying a more con-
venient outlet for American goods, Free Ports will aid
the American manufacturers in need of foreign sup-
plies by bringing raw material to our shores cheaply
for subsequent import or export, as the needs of the
trade demand.
P a g e F O r t y – t w o
8—The number, speed and efficiency of cargo boats will
be greatly increased and in this direction a Free Port
becomes a vital factor in enabling us to meet the
foreign trade demands that will be placed upon us
after the war.
The harbor of San Francisco, when it
first met the enraptured gaze of Por-
tola, November 1st, 1769, possessed
more advantages than others less
richly endowed by nature. Since then its golden portals have
been Open the year round and never required dredging,
maintaining a permanent unshifting depth of 48 feet. San
Francisco Bay has always been able to admit the largest of
the world’s vessels, and all of them combined could find
anchorage here and be sheltered in summer and winter from
heat and cold, from heavy seas and squalls and storms.
San Francisco, a natural
trading and shipping
center between nations
San Francisco is not only the gateway of
Gateway between * ... tº S
East and West the Far West but it is the gateway to the
Far East. More than half a century ago
Bret Harte called San Francisco “the warden of two con-
tinents”.
Gazing out through the Golden Gate across the broad
expanse of the Pacific we look through the open door of
China. What an inexhaustible market China would be for
Our products, if we went after it !
Japan, rapidly winning a place in the sun and becoming
western in constitution, civilization and commercial relation-
ships, offers a most attractive field for our products.
A warm welcome awaits American representation and
American goods in all Australasian markets.
The Philippines present a pleasant picture. Ten years
ago we furnished the Islands only 26% of their imports.
We now supply 50%, and they would gladly buy the other
50% from us, if we could offer more adequate transportation
facilities.
And between As we look Southward we see the Republics
North and South of Central and South America, with enor-
mous trade potentialities. How vast this
P a g e F O r t y – t h r e e
trade may become with proper attention, encouragement and
systematic development can hardly be overestimated. Our
foreign trade statistics offer convincing evidence.
The immediate effect of war upon industrial
and commercial policies is undoubtedly to
prompt nations to make themselves as nearly
as practicable independent in all things necessary to life and
the national defense. When the war broke out, Great
Britain found that the product of the Australian lead and
zinc mines was under contract to German firms and that
neither in Australia or Great Britain were there reduction
works adequate in capacity to convert the Australian product
into the munitions of war which were needed for the defense
of the Empire. Likewise, the great textile industries of the
United States, Great Britain and France, were found to be
largely dependent upon German dyes. .
What war has
made clear
After the war, In the long period of peace, international trade
what? relations had expanded and confidence in the
maintenance of peace had grown, until in
many instances the industries of countries had become more
or less inter-dependent. Even the neutral countries, as those
of South America, have found themselves seriously incon-
venienced by the difficulties attendant upon transportation,
and manifest an inclination to diversify and develop their
home industries to a greater extent than before. In all
conferences between representative men of the various
dominions of the British Empire, there is expressed a senti-
ment favorable to more intimate trade relations, and to recip-
rocal policies which will tend to bring this about. It seems
probable that steps in this direction will be taken, although
serious difficulties are certain to develop when the attempt
is made to reduce such a policy to tangible terms.
Prepare for the It may be expected that the alliances estab-
readjustments of lished during the war will influence trade
foreign trade policies to some extent after the war, and
that commercial treaties will be made with a view of recog-
nizing and promoting the friendly relations which exist.
• The antagonisms, in turn, which have been developed be-
P a g e F O r t y – f O u r
tween enemy countries will, no doubt, affect trade relations
for many years, no matter what the terms of the treaty of
peace may be. On the whole, it may be expected that pro-
tective tariffs will be in favor after the war, and that trade
will be influenced to a considerable extent by commercial
treaties. In this connection, it is to be considered that the
United States, by reason of the great purchasing power of its
people, is the most desirable market place in the world, and
should be able to obtain as favorable terms for trade as are
granted to any country.
P a g e F O r t y – f i v e
QUESTIONNAIRE ADDRESSED TO SAN
FRANCISCO’S FOREIGN TRADE
1—What particular products imported or exported by your
firm would be affected most favorably by the special
facilities offered by a Free Port, such as expeditious and
economic handling of merchandise and free access to and
control of your Own goods, packing, mixing, Sorting,
labeling, manipulating, manufacturing, etc., without the
customary “red tape” and restrictions connected with
bonded warehouses?
2—What would be the specific advantages to you as regards
the following:
(a) Conditioning,
(b) Assorting,
(c) Repacking,
(d) Stock carrying,
(e) Firm sale basis for transactions.
3—What dutiable foreign materials do you import and utilize
in articles that you re-export?
4—What products have you for export that require imported
raw materials to manufacture ?
5—What is your annual volume of draw-backs?
6—What substantial benefits will be conferred upon ship
pers, local and inland, consignees and consumers by
attracting more cargo and ships, more transit traffic by
making this harbor a base for transit and domestic im-
ports?
7—What opportunities for foreign trade expansion do Free
Port facilities Offer P
8—What do you consider the special advantage from an eco-
nomic, industrial and commercial standpoint that would
result from the establishment of a Free Port Zone on
San Francisco Bay, and what superior advantages have
we to Offer P
9—General remarks.
P a g e F O r t y – S i x
ANSWER TO QUESTIONNAIRE
By J. H. Polhemus
1—Practically every article that we handle or would hope to
handle we would greatly prefer handling in a free port,
inasmuch as we do not confine ourselves to importing
goods to go directly to consumption in the United States,
but Operate Overseas with many districts, continuously
endeavoring to bring goods in from one section and for-
ward them on to another.
2—(A)—CONDITIONING:
In regard to conditioning the number of cases that can
be quoted is unlimited. By way of mentioning a few
we might state that corn from Spanish America arriving
weevily can be fanned, put in new sacks and re-exported
to some other Spanish-American or other oversea market
and thus not make it necessary for the importer to agree
to sell same in the United States under the Pure Food
provisions of “Not for Human Consumption.” Lots of
coffee that might arrive too low to pass government
Specifications can be mixed and brought up to an admis-
sible standard. Low grades of coffee can be shipped
forward to the market and will probably reach here in
quantity so that there might be a considerable volume of
cheap, low-grade stuff that might find sale in some Asiatic
market and the business might just as well be done
from San Francisco as from some European port. Goods
that might become damaged by heat in hold could be
examined and if their condition has changed so that they
were not up to standard desired by buyers in the United
States the duty has not been paid. Goods damaged by
salt water would not automatically come under the head
of condemnation on account of quality under Pure
Food, etc.
(B)—ASSORTING:
Various beans, gums, rices, etc., would afford distinct
opportunities for taking advantage of the market. Goods
that reached here and were considered not up to basis
P a g e F O r t y - s e v e n
on which bought could be held in the free port and part
accepted and part rejected. It would not be necessary to
enter the entire amount covered by the bill of lading.
(C)—RE-PACKING:
More stocks could be carried and be much more flexi-
ble. This would enable dealers to quote lower prices as
they would have a quicker turnover and not such high
percentage interest per unit, or dead stock with a pros-
pect of a loss. To illustrate our ideas, in many parts
of Spanish-America some goods have to be packed for
mule-back transportation, others in cases of a weight for
11ama transportation, and others in cases for cart trans-
portation, etc. The currency in some countries demands
a package that can be sold at an established money value
which is current there, and goods are desired to come
already in such packages, as matches, etc. Many firms
wish their own labels, and this matter could be facilitated.
(D)—STOCK CARRYING:
One of the big factors in this heading would of course
be the carrying of larger stocks as there springs up a big
steamer service. This is not guess-work, it is a state-
ment of fact based on what has happened in every other
free port. Ships that go periodically from Europe clear
through to some destination in Asia could much more
readily call at San Francisco and discharge their cargoes.
This means that instead of Vladivostock, or Darien, or
Yokohama having a direct steamer from Europe every 60
days, these goods could be brought in steamers that would
much more readily find a cargo if destined to San Fran-
cisco and could go via the free port on steamers that
would run continuously between here and the ports men-
tioned. Merchants would rather buy from San Francisco,
as they would not have to tie up so much money in the
stock, ordering same every two weeks instead of Ordering
a three or six months supply at a time. The inaugura-
tion of such routes would lead to other commodities being
brought in and markets found for them, which helps work
up a trade route.
P a g e F O r t y – e i g h t
as aid to the merchants in the surrounding country there
is no argument necessary to explain the advantage of
being situated in a port that is directly connected with
the different producing or manufacturing countries.
7–In answering this question it is necessary to consider the
institutions that are in all lines of legitimate activity, or
say, producer, banker, manufacturer, distributor, consumer.
The producer would have outlets for his goods estab-
lished by the inauguration of steamer routes and there-
fore would have a wider field of marketing. -
The banker would have the opportunity of financing
many different lines of commodities and on account of
better transportation facilities would probably be working
in a market that would furnish a great deal of short-term
paper, as well as have their field of opportunity in foreign
exchange greatly enlarged. A number of commodities
from different parts of the world generally equalize a
demand for money, so that same can be kept constantly
employed and would not make it necessary to seek
employment through the stock market's demands. This
is something that is greatly appreciated in Europe, as
produced goods are real wealth and must necessarily have
real value, whereas many of the quotable stocks are never
considered by the average speculator on their real intrinsic
value but simply on what they will sell for as against
tightness of money, etc. We believe that it is a state-
ment of fact that articles of first necessity rarely stay for
any prolonged time below the cost of production, and
therefore have a fundamental value. Stocks can go to
almost any figure irrespective of what their face values
or book values might show.
The manufacturers would have the advantage of direct
communication with the source of supplies and/or in-
creased distributing outlet.
Distributors —In the established markets that are pre-
eminently leaders and have had a long and extensive
training practically all the exporting is done through
P a g e F i f t y
export firms. These firms are almost ranked in the pro-
fessional class on account of their intimate knowledge of
the peoples, countries, trade customs, and general condi-
tions of the foreign countries in which they operate. Such
firms are already established in San Francisco and any
manufacturer of any commodity, whether he was located
in Denver, Spokane, Eureka or Sacramento can send cuts
and data to these different houses, who would gladly
take them up with a view to presenting them in a proper
and attractive manner, give advice as to writing the de-
Scription in the language of the country to which they
are addressed, and then bring them before the proper
channels for distribution. The hit or miss system employed
at present by every little manufacturer endeavoring to
spend a lot of money in useless advertising and sending
Out circulars in the wrong language to irresponsible
accounts in different foreign countries is simply a symp-
tom of nervous energy that will ultimately dwindle down
to the proper trade distribution as explained above, and
as has been worked out in London, Hamburg, etc. At a
free port trained houses as mentioned above will continue
to be represented and will be augmented probably by
others.
Consumer : It is always hard to tell just how much of
any benefit will reach the ultimate consumer, but there is
no denying the fact that direct handling, and the creation
of big openings of marketing opportunities such as a free
port, on account of its increased operation and activities,
permit the landing and marketing of goods on a cheaper
basis. The free port likewise tends to do away with
temporarily high prices on account of shortages due to
lack of steamer service.
In regard to the advantages of San Francisco Bay, these
can be divided into what can be termed Natural and
Artificial.
NATURAL ADVANTAGES
It is one of the finest harbors in the world, with plenty
of deep water and area for dockage. It is never frozen
P a g e F i f t y - O n e
up and is situated in a climate where goods keep well as
regards temperature and moisture. When one realizes
the amount of tonnage that is handled at say Singapore,
where big ships have to lay off, or in Hongkong, where
there is a great amount of moisture and heat at different
times of the year, and handling is all done by lighters,
you can realize what a natural advantage this port has.
Kobe, which is doing a tremendous business at present,
has only a small area protected by a breakwater, and it is
necessary sometimes for steamers to lay out beyond it on
account of no space. Steamers are attended by lighters.
San Francisco is likewise located in a position that
would very easily supply the other ports on the north
and south of it, such as Seattle, Portland, San Pedro, San
Diego. It is a natural place to break cargo and distribute.
ARTIFICIAL ADVANTAGES
As regards artificial claims for San Francisco, we be-
lieve that there is no port on the Pacific that contains
as many merchants that have gone through foreign coun-
tries and done so much work to establish connections and
get intimately in touch with the conditions of such
countries and the requirements of their trade and the
personality of their merchants. San Francisco's trade at
the present time is almost all its own and radiates on
account of the activity of its merchants. In a word the
position of San Francisco can best be understood by
anyone that is at all familiar with foreign trade by say-
ing that if a man in any foreign country has any com-
modity, whether it is sugar, or coffee, or hemp or beans,
or anything else, he wishes to know what the market is
in San Francisco, New York, London and Hamburg.
This is due to connections and banking, and the former
took a great deal of time and represents a great deal of
effort.
9–GENERAL REMARKS:
The above having gone into detail quite extensively
we only wish to add that one of the great factors that
hangs over 100 per cent of the importers' heads is gov-
P a g e F i f t y – t w O
ernment red tape. There may be ways of handling many
things, but if a merchant spent the time to study them up
he would not have time to do any foreign business. The
word, “free” port, in itself is a call to freedom of exchange
which is like an invitation to the foreigner to trade, as he
does not fear Pure Food regulations, under valuation
fines, or any technical local laws of a country, and the
merchant located in the free port reciprocates the same
feeling in the same way.
P a g e F i f t y – t h re e
COMMITTEE ON FREE PORT
GEO. A. NEW HALL, Chairman
FI. M. NEW HALL S. CO.
JNO. I l. Ross ETER, I’ice-Chairman
W. R. GRACE & CO.
HoN. T. S. WILLIAMs
BOA RI) OF HARBOR COMMISSIONERS
HoN. J No. H. McCALLUM
IłOARD OF HAREOR COMMISSIONERS
HoN. RICHARD J. WELCH
IBOARD OF SUPERVISORS
HoN. J. J. D.WYER
ATTORNEY
C. K. McINTOSFI
V. P., BANK OF CALIFORNLA
J. R. HANIFY
J. R. HANIFY & CO.
LARRY W. HARRIS
AMES, HARRIS, NEVILLE CO.
JoEIN CLAUSEN
V. P., CROCKER NATIONAL BANIK
W. H. HAMMER
PREST. FOREIGN TRADE CLUB
F. F. G. HARPER
CUSTOMIS BROIKER
C. J. SULLIVAN
THRIFT, INCORPORATED
J. H. Polli EMUs
IHAMBERGER-POLEIEM US CO.
CARY W. COOK
- AMERICAN-IIAWAIIAN S. S. CO.
E. O. McCoRMICK
SOUTHERN PACIFIC COMPANY
W. G. BARN WELL
A. T. & S. F. RAILWAY
H. K. FAYE
WESTERN PACIFIC RAILROAI)
Gov. GEO. C. PARDEE
OAJKLAND
J. H. KING
PREST. CHAMBER OF COMMERCE, OAKLAND
A. W. MALTBY
CONCORD, CONTRA COSTA CO.
GEO. S. WALL
RICHMOND INDUSTRIAL COMMISSION C. P. CONVERSE
RICHMOND, CAL. SECRETARY
P a g e F if t y – f o u r
º, \ º'ſ.
MAR 29 1922
W’(22.
THE TARIFF
THE MIRACLE OF AMERICAN
PRODUCTION
TARIFF RATES AND WAGES
EVER INCREASING PRODUCTION
(10,000,000 Unseen Workers)
THE BURDEN OF EXCESSIVE
PROTECTION
($5,000,000,000)
THE FARMER and PROTECTION
THE PROPOSED DOMESTIC PRICE
CLAUSE
Mis-Called
“AMERICAN VALUATION"
Purpose: A just Tariff, adequately but not excessively
protecting American Industry and Labor, lowering the
cost of living, considerate of our changed position in
world affairs.
Issued by the
FAIR TARIFF LEAGUE
T RACINE, wiscONSIN
Branches:
2 Rector Street Munsey Building
New York City Washington, D. C.
THE IMPORTANCE OF THE TARIFF
On the one hand, we are determined to maintain our stand-
ards of living and the vigor of our industries by whatever
amount of protection is necessary. On the other hand, in-
dustries like shoes, agricultural implements, and articles whose
costs are as low as anywhere in the world, although their wages
are high, must not be given protection because there is no reason
for it.
No industry can be given higher protective rates than
it needs without injury to the public. Says Mr. Fordney,
“Whatever duty you put on is for the purpose of bringing the
foreign value [price] up to our value.” The U. S. Tariff Com-
mission says, The tendency on any article that is continuously
imported in any considerable quantity, and is made both here
and abroad, is to make the domestic price at least equal the
foreign price plus the duty.
This means that all prices, both on domestic products and
imported, rise with the duty. As 97% of such highly finished
manufactures as fill our stores are domestic products and only
3% imported, this means that for these purchases the people
pay $97 on account of the tariff to domestic producers for
every $3 that the Government collects on imports. It is,
therefore, the duty of every good citizen to see that the cost
of living is not unnecessarily advanced by excessive rates.
Some are now so high as to cause an increase in the cost of living
of billions of dollars.
Above all others, the friends of Protection should try to make
the tariff just and fair.
THE TARIFF AND THE MIRACLE
OF AMERICAN PRODUCTION
HE purpose of a protective tariff, as contemplated by Ham-
ilton and Washington, was the development of the industrial
and inventive genius of our people until we had both low costs
of production with corresponding low prices to the consumer,
and high wages supporting high standards of living.
It was never contemplated that industries should be a per-
petual burden upon the people through the tariff.
Low costs and high wages have been realized beyond the
dreams of the fathers of protection. Not so as to prices.
Shoes, agricultural implements, sewing machines, and some
other highly finished products, paying high wages, are pro-
duced here cheaper and better than anywhere else, and ex-
ported all over the world. They are now on the Free List.
Nor are these industries that once enjoyed high protection,
and are now on the free list to their own satisfaction, exceptional
in their accomplishment. Many industries that are deceiving
Congress and the public with exaggerated claims are as efficient
as those named, but by cries of alarm are getting hundreds of
millions of the public's money undeservedly. -
Here is one of the miracles: Our hosiery used to come from
France and Germany. Today there are shop windows in
Chemnitz, the German hosiery centre, displaying American
hose, while our silk hosiery is freely sold in the stores of Paris.
2
Thirty years ago a single operator on the machines of those
days ran 6 machines, making a total of 18 dozen pairs of socks
daily, with a piece-rate wage of 3 cents per dozen pairs, giving
her 54 cents per day.
Twenty years ago, with better machines, and the same rate
of pay, the output was double, giving a wage of $1.08 per day.
In the last five years, with full automatic machines, making
the entire sock, including the ribbed top, each operator runs
25 machines, making 150 dozen pairs daily. Her piece-rate
has been reduced from 3 cents to 2 cents per dozen pairs, and
yet she gets $3.00 per day.
These socks cost 81.5 cents per dozen pairs today, including
36 cents for the yarn. A manufacturer tells us they could be
sold for 85 cents per dozen pairs. They retail at 10 cents per pair
in the ten-cent stores, which used to buy them as low as 50 cents
per dozen pairs. This is the miracle and perfect accomplish-
ment of protection. Two cents (2C.) per dozen pairs for knit-
ting, and $3.00 per day wage on the piece basis. The total
labor cost from raw cotton to finished sock is 2 cents per pair;
the lowest wage in the world, and the highest weekly earnings
paid any hosiery people in the world.
- A single operator runs from 20 to 30 of the newest type ma-
޺ chines knitting women's silk hose and producing a total of 80
sº to 90 dozen pairs daily. At 4 cents per dozen pairs, or one-third
of one cent per pair, she would earn $3.00 per day—almost no
ºf cost—and a high wage.
3. Contrast these facts with the tariff attitude of the hosiery
... and knit goods people. One of their typical representatives
declares that they cannot exist without a further increase in
iſ their tariff because, says he, average wages in the United States
j in this industry are $30 per week; in England $17.40 per week;
º, in Germany $5.50; in France $7.14. Were he to tell the truth,
... he would say that the wage cost per dozen pairs in the United
Tº States is about 2 cents per pair on socks, and twice that on
... women's silk hose of ordinary quality, and correspondingly
º, more for “full-fashioned.” He pays this; he does not pay $30
per week, nor does any country pay less than he pays per pair.
That is why one-fourth of all the hosiery and knit goods made
in the United States is exported the world over; that is why we
exported hosiery last year to the amount of $4,000,000, and
imported only $1,000,000, the imports being mostly novelties,
golf stockings, etc., that we did not care to make. That is why
our knit goods of all sorts go freely all over the world, and sub-
stantially no knit underwear is imported, but only fancy
novelties for outer-wear.
With Congress virtually prohibiting importations by a high
tariff, and our domestic manufacturers with their heads to-
gether on prices, the people are paying unreasonably for their
supplies. Mercerized children's socks, that were from 85 cents
to 90 cents per dozen before the war, are now $2.50. Fortunes
have been made in the hosiery business in the last few years.
Mills are very busy. It is for Congress and the people to say
whether these manufacturers shall henceforth be self-support-
ing, or shall have in addition great and unnecessary grant of
public funds.
The story of hosiery is repeated in almost every other in-
dustry. Our automatic metal working machines cut very
difficult shapes 3%” in diameter in two seconds, such difficult
shapes as would have taken a very skilled worker two or three
3
days to fashion sixty years ago. One man running a group of
these machines does the work of 500 men at hand forges in the
olden days. The cost today is 2 cents per piece, that was once
$5 or $10. And yet the over-greedy and dissimulating tariff
beneficiary will compare the $5 or $6 per day that the American
workmen earn at 2 cents per piece with wages in other countries
where the net cost is higher.
In cotton goods, as said the Tariff Commission in 1912, “al-
though labor costs in the cotton industry are in many cases
lower in the United States than in England, yet the actual
hourly earnings in this country are, in most of the principal
occupations, much greater.” We meet all competition the
world over in Jrdinary cotton goods, sending ticking and drills
to India, whose cotton mill operatives get only a few pennies
per day in wages.
So in shoes, it is said that labor today does in 45 minutes
what used to require two days' time. High wages and low
COSts.
The Singer Sewing Machine Co. has an enormous trade in
the Orient, Japan, China, the Philippines, which it supplies
from its American factories because it is a little cheaper to do
so than from their British factories, where workmen earn less
per day, but are more expensive because of their smaller pro-
duction.
So a great manufacturing company has recently closed its
German factory because both the skill and the morale in
Germany has deteriorated until the company can only afford
to operate its American plants.
When the public learns of the lovſ wage cost in manufacturing
cotton, silk, and woolen goods; cutlery, which is made in the
ordinary grade cheaper here than elsewhere and exported
broadcast; pressed glass, sanitary ware, and other things, it
will insist that Congress shall not obey the pleasure of these
manufacturers, but shall regard the public interest. The cost
of living will then be reduced at least three billion dollars per
year. Our money will go that much further. Costs, as well as
prices, will come down, and with lower costs, our world trade
will be restored, and our factories be busy. We must not
forget that the girl who does eighty times more socks in a day
than her grandmother did and the mechanic who does the
work of 500 men previously, must be kept as busy as their pred-
ecessors were; and that this calls for world markets. Our
domestic trade cannot keep our factories busy. Raising prices
and limiting output won't keep them busy.
TARIFF RATES AND WAGES
HE Republican Party says the tariff is for the wage-earner,
and that each rate should represent “the difference between
the cost of production here and abroad;” and then the Party
makes tariffs without requiring any manufacturer to show what
their wages are or their costs. A a consequence, the people are
frightfully overcharged on their purchases, and the tariff in
each industry, even under the present Democratic Law, is
often two or three times higher than the total wages paid in
the industry.
TEXTILES: In all textiles, cotton, wool, or silk, or these
materials mixed, the cost of the material is about one-half of
the total cost of the product. As cotton and silk cost the same
the world over, and our woolen manufacturers have a special
4.
allowance or compensatory duty to offset the farmers' duty
on wool, it follows that any rate of duty given applies only upon
the other 50% of cost here and abroad, covered by labor, over-
head and profit. As the duty is figured on material also, any
rate named is actually double that amount when applied to the
items that differ.
The Payne duties on cotton and silk were more than 100%
of all items of difference, being labor, overhead, and profit.
The Payne wool duty was 190% of all differentials, while the
Underwood duty on cotton, averaging 34.2%, in 1919 was
64.2% of all differentials, although we make cheap cottons
at less cost than elsewhere in the world, and export them freely
to mutual markets.
COTTONS: On all cotton goods, the tariff averages 43.2%,
while the per cent. of wages to the selling price of the product
was only 21.7% in 1914, and 16.3% in 1919. The Fordney
Bill would double the present duties. Under the present
tariff Congress permits cotton manufacturers to charge $557,-
000,000 more for their product than it would cost abroad.
This would be doubled as it passes from the factory to the
consumer, who would pay $1, l 14,000,000 if the cotton men are
shrewd enough to use the tariff. As they are crying for a
higher tariff, it seems that they are using what they have, but
not in all cases, for they are selling cheap cottons (11% cents
to 12% cents per yard wholesale) in this country and other
countries at the same prices. Against this enormous tax on the
consumer the Government collected only $15,000,000 in 1919,
and $32,000,000 in 1920 in duties on cottons.
The question isn't whether an industry adds the tariff to its
prices, but whether Congress should grant this privilege of
adding the prices, whether the industry uses it or not. We
know that most industries do use it to the full, especially in
good times, when the demand for goods exceeds the supply and
prices soar; and importations are kept out by high tariff rates.
SILKS: In 1914 only 18.5% of the factory selling price of
all silk products went to labor, and 22.7% if we include salaries
with labor; and yet the tariff was 50.5%, or two and three-
quarters more than the total wages in the mills. In 1919
wages were only 15.7%, with the duty averaging 42.6%, or
still two and three-quarters times the total wages. In silk
cloth about 30% of the selling price is labor. The protection
given the silk mills in 1919 was $205,000,000, and the Fordney
Bill would make it upwards of $230,000,000, all of which
amounts would be doubled on reaching the consumers. And
today not a yard of ordinary competing silk is imported except
habutai, a lining from Japan, and Shantung silk from China,
both so cheap and poor our manufacturers do not care to make
them. Against this grant to the manufacturers, the customs
revenues brought in only about $20,000,000 in 1919, and
$23,000,000 in 1920 on silks.
WOOLENS: The woolen schedule has always been the
curse of the tariff. We have said that the cost of the material
is one-half the cost of the product. Senator Gooding, with the
help of Government experts, estimates materials at 60% of
cost, and conversion 40%. The old Dingley and Payne
Tariffs with duties averaging 95% were therefore twice or more
the total cost of converting wool into cloth. They gave the
woolen people in the last year of the Payne law, half of it with-
out reason, $192,000,000 if they used it, and there is no end of
evidence that they did with a vengeance.
5
The Underwood tariff on woolens averaged in 1919, 31.6%,
being far more than the total payrolls in the mills. The present
Emergency Tariff is worse than the Underwood. It restores
some of the tricks of the Payne Bill. It puts a premium on
cotton and shoddy. It counts four pounds of wool to a pound
of cloth, when it takes about half that. It gives the manufac-
turers some $300,000,000 of protection, most of it without
reason, to be doubled on reaching consumers. A careful search
through a big department store, and also a great importing
house, failed to find a yard of women's woolen dress goods from
abroad. A user of millions of dollars of cloth for men's suits
says he could import a great deal without loss, but the American
price is just a fraction under the foreign price, plus the duty.
The story goes that at a conference of manufacturers some time
back everyone put his price about as high as he dared when their
leader marked everything up another half dollar to a dollar
per yard. Against all these exactions the Government got in
customs duties on woolens in 1919 the pittance of $2,900,000
in 1919, and in 1920, $8,600,000.
The present tariff allows 45 cents per pound on woolens as
protection to the wool grower, and weighs cotton and shoddy
contents as all wool. It is said by experts that in ordinary
years the average farmer and wage-earner is clad in a suit con-
sisting of 40% cotton, 30% shoddy, and 30% wool; in under-
wear containing still less wool, and in a rag shoddy overcoat.
Thus the farmer who thinks he gets 45 cents per pound on the
weight of his suit as protection on his wool gets about a third
of this in fact, with the other two-thirds kept by the manufac-
turer of these adulterated wool goods, while the general public
shivers and gets nothing. Mr. John Wood, representing the
wool manufacturers, asks Congress for this 45 cents per pound
on blankets and such things when there is any wool or wool
shoddy whatever in them. They are often 80% cotton, 20%
mungo or felt shoddy, the poorest there is.
This old trick has worked heretofore. Will it again?
We need reasonable protection on wool and manufactures of
wool, but this isn't protection. It is enslavement of the con-
suming public to woolen manufacturers who know how to get
what they want.
POTTERY, PORCELAIN, CHINA WARE, etc.: Wages
in 1914, 41%, with the tariff 58.2%. Wages in 1919, 37%,
with the tariff 47.6%. Protection given in 1914, $64,000,000,
and in 1919, $93,000,000, with the Fordney Bill proposing to
give $108,000,000, all of which amounts would be doubled upon
reaching the consumers. Against these exactions the Govern-
ment receives from $4,000,000 to $5,000,000 only in duties
annually. It is commonly believed that the so-called “Big
Four” make prices simultaneously with the “little fellows”
following with slightly lower prices. The tile makers, who
recently went to jail for price-fixing, belong to this group. The
tariff is so high that nothing strictly competitive can come in,
and we have to pay excessive prices for inferior products. A
set of imported plates, India tree pattern, costing $16 in 1914,
costs $45 now, and would cost $85 under the Fordney Bill.
So we might continue through the 29 industries studied.
Their total product in 1914 was $3,688,000,000. In 1919 they
totalled $10,908,000,000, an increase of 260%. The increase
was mostly an increase in price only. Even the present tariff,
and much more anything like the Fordney Bill, by prohibiting
6
importations, will continue to leave the public at the mercy of
a few manufacturers and such price-fixers, working both ways,
in factories, wholesaling or retailing, or all combined, as can
rig up the market against the consumer.
The wage earner gets a fraction only of the protection
granted, because the excess above fair protection is kept by the
manufacturer. The wage earner loses heavily with all other
consumers from high prices that reduce the purchasing power
of his money.
One of the startling disclosures of the Fair Tariff League's
investigation is that only 5.2% of all these products were im-
ported in 1914, and 1.4% in 1919, and 2.7% in 1920. Protec-
tion must protect the consumer, and not the manufacturer only.
The percentages may be different in coarse products, but in
these store products careful investigation showed an almost ab-
solute control of trade today by domestic manufacturers whose
protective rates have no relation to the wages they pay. Im- .
ports are not competitive. What little come in do so because
they are just novelties either in design or quality. And yet
these manufacturers cry for more. They don't know a “stran-
glehold” when they have it.
Other nations realize this situation, and that the American
Congress is likely further to enslave our own people and shut
off purchases from abroad. Papers in France for months have
besought French consumers not to buy American goods, not
from ill-will, but because France could not pay for those goods
if purchased, when we are refusing to accept imports.
INCREASED PRODUCTION
10,000,000 UNSEEN WORKERS
Cº.; is making the new tariff in a Rip Van Winkle
sleep, as if nothing has happened in fifty years.
Mr. Fordney is shouting “Everything is 90% labor,” a state-
ment true probably before machinery was invented. Today
nothing, generally speaking, is more than 50% labor, and many
things are far less. Therefore, a protective tariff that pro-
tected labor on the old 90% basis can be cut in two in the high
spots, and further reduced where automatic machines do
most of the work, and be as “protective” as before.
A single operator at about $3 per day running twenty auto-
matic machines produces 1,800 pairs of the cheapest men's
socks per day, selling at 6 or 7 cents per pair, and retailing in
the ten cent stores at 10 cents per pair. The hosiery people
now have 36% or $45 protection on the entire 1,800 pairs to
protect a total wage cost of $36, and they are crying for about
70% protection. They have no right to any for no nation
equals our low hosiery costs.
So, a single operator with 15 or 20 automatic screw machines
produces as much as 500 men could have produced two or three
generations ago. Sometimes from each of these machines
there drops every three minutes a piece of metal cut outside
and inside into most difficult shapes which would have taken
a skilled man days to product in the early days of protection.
And yet the protection today is three or four times more than
Alexander Hamilton gave in 1789, when everything was 90%
labor, and no nation equals us in this kind of quantity produc-
tion.
7
So on shoes, operators do in 45 minutes now what used to
take two days' time. And in sewing cloth in 1850 a woman
took 20 minutes' time to sew a seam a yard long; in 1870
two minutes with a sewing machine with a handle on the fly-
wheel; then one minute with the foot treadle machine; and the
latest invention operated by electricity does in 20 seconds
what used to take 20 minutes.
The Fair Tariff League has studied 29 industries producing
mostly the things that fill our city stores. It finds that the
total wages in these industries are seldom more than 20% of
the factory selling price of the product. In some products it
is from six to fifteen per cent. A tariff of from fifteen to thirty
per cent. would, with a few exceptions, equal the total wage
cost in the industry itself, while much less than this would
represent the “difference in the wage cost” in this country and
in foreign countries.
To these rates would have to be added other percentages, usu-
ally much less, for work done in prior processes, which prepare
the material for the factories that make the finished product like
clocks, gloves, collars, cutlery, etc.
The United States makes hosiery of all sorts, pressed glass,
plate glass, sanitary ware, cheap gloves, ordinary table cutlery,
cheap cottons, kitchen cutlery, many kinds of hardware, hand
tools, etc., cheaper than anywhere else in the world.
In these things protection has accomplished what was
predicted at the start. High-paid labor is cheap labor. Further-
more, the development of the automatic machine and other
mechanical devices has made each workman a bigger man, as
respects production, than his foreman was forty years ago.
The Census of 1910 gave us a population of 92,000,000 people,
and in 1920 of 105,000,000. If, however, we measure in terms
of industrial efficiency, our 105,000,000 people today are pro-
ducing as much as possibly 120,000,000 people could have
produced in 1910, or at least in 1900, so that we have now to
find an output in all the markets of the world for the production
of the equivalent of 120,000,000 people instead of 105,000,000,
as actually named in the census. We now have in these new
mechanical facilities the equivalent of 10,000,000 invisible
workers who must be kept busy unless our wage earners are to
suffer from idleness.
The woman who makes 1,800 pairs of socks per day must be
kept just as busy as her grandmother who made ten pairs per
week, and so of the machinist, who produces as much as 500
men did forty years ago, and the woman who operates 20
looms instead of the single loom her grandmother worked.
All this means lower rates of duty, and the kind of tariff
that most develops foreign trade, without failing to protect the
domestic market reasonably.
The Fordney Tariff is a relic of the past century, and the
exact opposite of what the country needs. It closes the doors
to foreign trade. By its American Valuation Clause, it doubles
the present duty and lets every price-fixing group in America
determine the basis of duties on imports of competing products.
8
THE TARIFF AND REVENUE COLLECTED
A FIVE BILLION DOLLAR BURDEN
EED of increased revenue is given as a reason for raising
tariff rates.
It is appalling to note how little the Government gets now
out of the tariff compared to the enormous burden that the
tariff imposes upon the consuming public.
As the Tariff Commission says, “Wherever any article that
is manufactured here is continuously imported in any con-
siderable quantity, the tendency of the tariff is to make the
price of the domestic product as well as the imported article
equal to the foreign price, plus the duty.” This means that
the American public pays the equivalent of the duty on domes-
tic products to American manufacturers so far as those man-
ufacturers use their protection, while the Government collects
on imports only.
Figuring on this basis, the protection enjoyed by American
manufacturers in 29 industries making mostly the things found in
our department stores, amounted to $2,663,000,000 in 1919, and
as retail prices are about double the manufacturers' price (often
because the merchandise goes through several hands between
the manufacturer and the storekeeper) this amounted to about
$4,741,000,000 added to retail prices, in order that manu-
facturers might get half this sum.
These manufacturers never showed their cost books, nor
gave any proof of their needs. They simply talked to Com-
mittees of Congress in loose and general and often disingenuous
terms. And they are begging for great increases in their rates,
to cost the public additional billions.
Against this $4,741,000,000 which the public was made
liable for on these 29 products, the Government collected in
1919 $53,200,000, and in 1920 $95,000,000. In other words:
The Government collected $1.00 out of each $100 that it made
the consumer liable for.
MEN'S COLLARS: These formerly retailed at 2 for 25
cents; now 20 cents each; made of ordinary cotton, costing
19 cents per square yard, no waste in the cutting; made as
cheaply here as anywhere in the world. English factories offer
them at $1.20 per dozen, but the duty would make them $2.10
in New York. This lets the American manufacturer charge
$1.60 per dozen instead of about $1.20, and still keep importa-
tions out. He pays 70 cents per dozen for cutting, sewing,
ironing. Nowhere are costs lower.
CUTLERY AND EDGE TOOLS: We are the cheapest
makers in the world of common table and kitchen cutlery (ex-
cept for the temporary low German costs), exporting 48% of
our entire production in 1919 and more in 1920. Yet we give
our cutlery manufacturers 30% protection, and they are crying
for twice this. Our shears (usually 5’ or more in length with
black handles) are both the best and the cheapest in the world,
and have no competitors in any market. Protection is needed
on high grade cutlery, fine scissors, penknives, and like goods.
9
THE FARMER AND PROTECTION
The American farmer sells in the cheapest market in the
world, being the export market. He buys in the dearest market
in the world.
When he takes his meager 80 cents per bushel return on his
export wheat to his store he often finds it depreciated in pur-
chasing power to 60 cents by our tariff. His wheat, cotton and
corn prices fix his other prices.
Representing, as he does, 50 per cent of our purchasing
power, he loses $2,000,000,000 annually on his purchases, being
half of the surcharge in domestic prices due to super-protection.
He is in no condition to lose this $2,000,000,000. Strange in-
deed if his leaders, instead of saving this, permit it to continue
in consideration of excessive tariff rates on farm products that
have been tried out in the emergency tariff for many months
and proven to be of no value, because not even Providence can
make our tariff increase export prices.
There are two big differences between farmers and manu-
facturers regarding protection: t
(1) Manufacturers can add all their protection to their prices
because the government prohibits competition from abroad
to the limit of the protecting rate. The farmer, however, must
sell most products at foreign prices.
(2) As farmers consume half of all products, they pay
half of all duties, and half of all wholesale and retail margins
added to duties as part of prices. They pay $75,000,000 to get
$60,000,000 protection on wool; but the very few owners
of hosiery and knit goods factories paid less than $300,000
towards their protection of $192,000,000 in 1919. The farmers
pay $5,000,000 to get $2,800,000 protection on flaxseed. He
gets all the duty on wool and flaxseed because none is im-
ported.
The Fair Tariff League is absolutely protectionist. It in-
cludes representatives of 1,500,000 farmers. It stands for mod-
erate protection, and against exploitation. It solicits the mem-
bership of every citizen who belives in such a tariff.

To lay with one hand the power of the Government on the
property of the citizen, and with the other to bestow it upon
favored individuals to aid private enterprise and build up
private fortunes is none the less robbery because it is done
under the forms of law and is called taxation.
—SUPREMIE COURT OF THE UNITED STATES.
The Marshall Case.
10
THE TROUBLE WITH THE TARIFF
A DEPRECIATED CURRENCY PROVISION
NECESSARY
“AMERICAN VALUATION” CLAUSE
A CAMOUFLAGE
As a protectionist organization, the Fair Tariff League is
absolutely devoted to the principle as accepted by all protec-
tionists, that each protective rate should measure “the dif-
ference in the cost of production here and abroad,” to use the
language of the Republican Platform of 1908.
The League has diligently studied for five months the facts
in the case, and protests against the Fordney Bill as grossly
violating this principle of protection; protests against the
exaggerated and loose claims of those who ask for great in-
creases in rates; and protests against many rates in the existing
tariff, which are grossly burdensome to the public by increasing
prices and the cost of living.
DEPRECIATED CURRENCIES: The almost worthless
currencies of several countries are accepted by their residents
at many times their international value. The U. S. Tariff Com-
mission says the German mark has twice the value in Germany
that it has in international exchange, causing cheap labor and
other costs in Germany, and export prices far below interna-
tional values.
Our tariff has a clause against dumping. A clause against
depreciated currency, as suggested by Senator Smoot, could
cover this situation by lifting German values to the level of
values in other countries. This would end in a moment the
entire element of legalized undervaluations of this sort, and
remove the cause of nine-tenths of the agitation for a general
increase in tariff rates.
The so-called American Valuation Clause offers no remedy
whatever against importations from Germany, which alone
disturb us. If an article costs $1.00 in Germany, and $1.50
in England, with an American Valuation of $2.25, a 35% duty
on American Valuation would make the German article cost
duty-paid in the United States $1.79; the English article $2.29.
It would still leave the German article 20% below the English
and domestic articles. This discount of 20% would be as
ruinous to American production and to competition from good-
currency countries, for 20% or half that in wholesale prices
absolutely dominates in any market, anywhere, any time.
A depreciated currency clause, by adding a certain per cent.
to the duty for each per cent. of depreciation, could make the
German article cost $2.25 in the American market. It is so
simply done, that we can imagine no opposition unless some
parties desire a continuance of these low-priced importations as
al º for arguments for raising tariff rates generally for selfish
€IlClS.
The objection to a depreciated currency clause is that the
total value of these especially cheap imports is inconsiderable;
many of the claims are exaggerated, and Germany will either cor-
rect her currency or enter bankruptcy by the time this provision
would get upon the statute book. There is no reason for taking
chances on this, however.
11
THE PROPOSED DOMESTIC PRICES
CLAUSE
s & MERICAN VALUATION:” There is no necessary rela-
tion between price and value. The American Valuation
Clause is nothing else than a Domestic Prices' Clause. It
absolutely eliminates from consideration, in respect to ordinary
competing imports, any consideration whatever of their in-
trinsic value, or their cost. It assesses the duty on the domestic
wholesale price absolutely regardless of the merit or fairness
of such wholesale prices. Recent years have taught the Amer-
ican people the difference between prices and values. Farm-
ers are selling below cost at the one extreme, while farmers
and all others have found that domestic prices, wholesale
and retail, have little more relation to value than a gold brick.
We have a general buyers' strike because prices for
three years have had no relation to values. And Congress
would shift the basis of all duties to this detested fact. Many
of our ablest business men have lost millions of dollars because
they followed prices into the clouds and then fell with them to
financial destruction. -
There is price-fixing everywhere by common knowledge.
Every price-fixer's price would be the basis of duties under
this Domestic Prices' Clause. Our own factories often show
the unreasonableness of this provision by making their export
prices much less than their domestic prices. For instance:
a pipe fitter's tool is exported today at 45% less than the price
of the same tool to American consumers. The Domestic Prices
Clause would assess the duty on the high American price instead
of the low price to the foreigner whom the American can't hold
up behind an excessive tariff wall. So Files used to be exported
at 40% off the American price, now 20%, and one maker refuses
to discount further, saying that his factory would be swamped
with orders if he would make his American price as low as
his present export price. So Waltham Watches used to be
sold abroad at less than half the American price. Wood Screws
just half the American price, Steel at from 30% to 40% off the
American price. Common shovels are being exported freely
at $7.50 per dozen, while $8.9l is the bottom American price.
Aluminum made by an American trust that has accumulated
$70,000,000 in a few years is held at 24 cents per pound against
15 cents in England, where it costs as much to produce.
Furthermore, there are great advances in prices due to
fluctuations in demands. On seasonable goods prices are
often a third higher at one time of the year than another, with
no difference in cost of production. After dull times like the
present come years of over demand and under supply with
excessive prices. The “Domestic Prices Clause" would aggra-
vate every such condition by putting the duties higher with
each price advance.
Senator Smoot's amendment authorizing the President to
designate for special duties articles now coming in at prices
destructive to our industry is another way of accomplishing
this same purpose.
he Domestic Prices' Clause would make these excessive
prices against American consumers the very basis of the tariff.
This is neither “American” nor “Valuation.” When we see
that the Clause doubles and trebles existing tariff rates, and
adds three billion dollars to the cost of living, we know exactly
why it was framed up, who wanted it, and whether the people
should stand for it.
We solicit your membership. Please make checks payable to
Daniel P. Morse, Treasurer. Kindly mail subscription to
Fair Tariff League, 2 Rector Street, New York City.
12
SEP 3 m 1921
H.F
) T :
º
573,
32. UNITED STATES TARIFF COMMISSION
* &
WASHINGTON
Introductory Survey of
Colonial Tariff Policies
WASHINGTON
GOVERNMENT PRINTING OFFICE

1921
UNITED STATES TARIFF COMMISSION
* WASHINGTON
Introductory Survey of
Colonial Tariff Policies
WASHINGTON
GOVERNMENT PRINTING OFFICE

1921
UNITED STATES TARIFF COMMISSION.
Office: Eighth and E Streets NW., Washington, D. C.
COMMISSIONERs.
THOMAS WALKER PAGE, Chairman.
THOMAS O. MARVIN, Vice Chairman.
DAVID J. LEWIS.
WILLIAM S. CULBERTSON.
EDWARD P. CostIGAN.
JoBN F. BETHUNE, Secretary.
ADIDITIONAL COPIES
OF THIS PUBLICATION MAY BE PROCURED FROM
THE SUPERINTENDENT OF DOCUMENTS
GOVERNMENT PRINTING OFFICE
WASHINGTON, D. C.
AT
10 CENTS PER COPY
w?
NOTE.
This Introductory Survey constitutes Chapter I of a report upon
the tariff policies of the colonial powers and of the self-governing
Dominions of the British Empire. The full report-contains in
Part I chapters on tariffs and tariff policies in the colonies of Bel-
gium, France, Germany, Great Britain (Crown Colonies and India),
Italy, Japan, the Netherlands, Portugal, Spain, and the United
States. In Part II is set forth the development of the preferential
tariff policy in the British Empire, with chapters on Great Britain,
Canada, Australia, New Zealand, South Africa, and Newfoundland.
A large part of this Introductory Survey is based upon the ma-
terial contained in the other chapters, but even this material is not
merely condensed. The Survey begins with an outline of the rise
of the modern colonial empires and, after establishing the neces-
3 sary distinctions between the different kinds of colonies, it discusses
3 the characteristics and importance of colonial trade. The sum-
2 maries, taken from the other chapters of the report, include brief
& statements of the general policy of each of the colonial powers, but
§ the survey of colonial tariff policies is mainly developed subject by
... subject. In the sections devoted to treaty obligations, import duties,
... export duties, intercolonial trade, the treatment of colonial products
* in the market of the mother country, and minor and concealed pref.
tº erences, the reader will find a general presentation of those topics.
# It is felt that the material here presented will be sufficient to satisfy
- many readers. Those who are interested in the details and the ex-
§ ceptions, and who wish information in regard to the commercial im-
% portance and the tariffs of one or more of the hundred dependencies
of the colonial powers are referred to the full report which is issued
under the title “Colonial Tariff Policies.” -
*º-ºgºsº
In the preparation of this chapter the commission had the services
of Benjamin B. Wallace, Stanley K. Hornbeck, and Jacob Viner,
special experts on the staff of the commission.
- Jºſl
CONTENTS.
-
1. DEVELOPMENT OF THE PRESENT COLONIAL EMPIRES-THREE PERIODs----
First period
Second period -
Third period . -
Table 1–Areas and populations of the Colonial empires––––––
2. CLASSIFICATION AND CHARACTERIZATION OF COLONIES AND MANDATED
TERRITORIES
Spheres of influence
Protectorates—
DOubtful uses Of term “Colonial '' -
Assimilation to the mother country *-
Self-governing Dominions • — —-
Territories held under mandate Of the League Of Nations____1___
3. GEOGRAPHICAL AND ECONOMIC DIVISION OF COLONIES-EFFECT ON TARIFFs—
Characteristics of colonial trade 2
4. IMPORTANCE OF COLONIAL TRADE, WITH ESPECIAL REFERENCE TO THE
TJNITED STATES - -
Table 2—Trade of the World, 1903 and 1913________________
Table 3—Importance of the Colonial trade to the mother
COUIntries •
Trade of the United States with the colonies of the world________
Table 4–Average annual Values Of manufactured articles ex-
ported and of raw materials innported, excluding food-
stuffs, since 1870 • g
Table 5–Trade Of the United States With the Colonies Of the
world, 1900, 1913, and 1920
Table 6—Summary of the trade between the United States
and the world’s colonies, 1900, 1913, and 1920–-___________
Table 7–Imports into the United States of principal articles
of which more than one-half of the World's supply is de-
5. TREATIES AND OTHER INTERNATIONAL ARRANGEMENTS IMPOSING LIMITA-
TIONS IN REGARD, TO COILONIAL TARTTFS mº ºm sºme
Open-door agreements and pledges— -
Treaties limiting rates
General Commercial treatieS -- - - -
6. FEATURES OF COLONIAL TARIFF POLICIES–SUMIMARY___________________
Political
ECOnomic mºsºm ºmº
Types of colonial tariff policies— -— — — — —
Policy. Of tariff assimilation____
Preferential tariff policy------------------------------
The “open-(loor ’’ policy---- | * * *
National policies and colonial tariffs_
Table S–Colonies classified according to import
tariff system }
The Netherlands, Belgium, and Germany
Great Britain—Crown Colonies
The Self-governing DOminions
Italy
Spain__
Portugal .* -
France – *
Japan ––––
United States --____
Reasons for exceptions to national policies
Page.
VI
CONTENTS.
7.
RATES AND PREFERENCES IN COLONIAL IMPORT DUTIES-COMPARATIVE
SUMMARY ——— — — — — — — —
Methods of Comparison - - s= a -a - sm sº mm. ºsm ºs = <-- * = *
Open-door colonies: Netherlands, Belgian, German, most British
Crown Colonies -
ASSimilated and preferential Colonies
American and Japanese
French
Portuguese -
Spanish -------------------------------------------------
Italian -* * * * -
Other British Crown Colonies - * * * *
British Dominions___
Absolute annount of preferences -º-, * m
8. RATES AND PREFERENCES IN COLONIAL EXPORT DUTIES—SUMMARY_______
10.
. INTERCOLONIAL TRADE—SUMMARY
Purposes
Rates
Differentials -
Table 9–Tabular view of British Empire preferences_______
TREATMENT OF COLONIAL PRODUCTS IN THE HOME MARKET______________
General Observations —- e
Policies of the Colonial powerS-Summary______________________
PREFERENTIAL TARIFFS IN FAVOR OF NATIONAL SHIPPING—SUMMARY____
DISCRIMINATIONS IN MINOR DUTIES AND IN METHODS OF VALUATION AND
PAYMENT : CONCEALED PREFERENCES-SUMMARY - -
Minor feeS_ ---
Valuation. Of merChandise
Depreciated Currencies and exchange rates_____________________
Formalities--------------------------------------------------
Concealed preferences ----------------------------------------
Administration of regulations
EFFECTS OF PREFERENTIAL TARIFFS * --
FACTORS OTHER THAN THE TARIFE IN COLONIAL TRADE_
THE OUTLOOK IN REGARD TO PREFERENTIAL TARIFFS
J’age.
43
43
44
45
45
45
46
46
46
47
47
48
50
50
51
5]
53
54
55
356
59
11.
12.
13.
14.
15.
63
65
66
66
69
69
70
fºr
l
72
7S
INTRODUCTORY SURVEY OF COLONIAL TARIFF POLICIES."
I. DEVELOPMENT OF THE PRESENT COLONIAL EMPIRES: THREE i
PERIODS.
That nearly one-half of the world’s area now consists of colonies
is due to a variety of economic and political forces. These forces have
shown their influence neither continuously through modern history
nor with equal effect upon different powers. Their influence was
relatively ineffective during most of the nineteenth century and when
the colonial movement began again about 1875 it excited but little
interest on the part of the three powers which had been the first to
enter the field of colonial enterprise, while powers which had pre-
viously been either nonexistent or indifferent to colonial expansion
now joined in the race. The salient features of this modern colonial
history may be seen to fall into three periods.
FIRST PERIOD.
The modern period of colonial expansion began in the latter half
of the fifteenth century, when the Portuguese pushed their explora-
tions down the coast of Africa and around the Cape of Good Hope
to India, while Spanish expeditions crossed the Atlantic and found
the continents of America blocking the westward route to the Spice
Islands of the East. The Pope declared the unconquered portions
of the world divided between Portugal and Spain. Before the
period of its union with Spain (1580–1640). Portugal was the political
equal and the commercial superior of England. Turing that period
the Dutch, even while fighting to free themselves from Spain, ven-
tured boldly and with Striking success onto the high seas; and by
1630 they possessed one-half of the world’s merchant marine. Seek-
ing colonies as a means of trade, they took from the Portuguese most
of the Spice Islands, including Ceylon. By the end of the century
they had settlements in Guiana and the Cape of Good Hope.
omewhat tardy in their entry, France and Great Britain profited
by the pioneering of other nations and overcame the handicap of a
late-start by the vigor and effectiveness of their commercial and set-
tlement activities. To them, in the second half of the seventeenth
century, the Dutch lost much of the carrying trade." The eighteenth
century found France and Great Britain the leading colonial rivals.
Between 1756 and 1815 Great Britain took from France, Canada,
India, and various minor colonies, and from Holland practically all
of her colonies (but the Spice Islands were later restored). In the
same period Great Britain lost the thirteen American colonies and
* This survey is the first chapter of the Tariff Commission's general report on Colonial
#. ºlicies: to expedite the final printing blank references to the other chapters are
Included.
* This was the consequence much more of the enforcement of French and English navi-
gation acts than of the wars of the period.
1
2 COLONIAL TARIFF POLICIES.
France sold the Louisiana Territory, all that remained of her North
American colonies.” A little later Brazil declared its independence
of Portugal, and virtually allº of South and of Central America es-
tablished its independence of Spain. This left Great Britain the
foremost of colonial powers." i
Throughout this early period, colonial rivalry was dominated by
the theories and practices of mercantilism and monopoly. Although
there was some settlement colonization in America and at the Cape,
the chief object of early colonial enterprise was the acquisition of
treasure in the form of precious metals; and where these were
not obtainable spices, silks, sugar, or slaves were taken for the pur-
pose of securing money by exchange. The African and Asiatic
“colonies '' were mere trading stations, and even the English con-
quests in India amounted simply to the occupation of areas tribu-
tary to and required for the strategic safeguarding of the ports.
With certain exceptions, chiefly at the beginning and at the end of
the period, monopolies were the order of the day. If the state
did not keep the trade in its own hands (as in the case of Portugal),
it granted monopolies to chartered companies or, later, excluded from
the trade all but its own nationals. The principle of monopoly ap-
plied to all phases of the colonial trade: To the colony as a market,
to the colony as a Source of raw materials or commercial luxuries,
and to the carrying trade between colony and mother country. The
monopoly was fortified not by differential tariffs, but by absolute
prohibitions, Sanctioned sometimes by even a death penalty, and it
was relaxed only gradually, mainly by the conclusion of commercial
treaties.
g SECOND PERIOD.
The six decades from the end of the Napoleonic Wars to about
1875 form a second period in colonial history. Then, as a conse-
quence of various influences—such as the successful revolt of the
Americas, the liberal and humanitarian concepts of the philosophy
of the French Revolution; the doctrines of Adam Smith and his
successors, the decrease in the relative importance of colonial trade,
and the great expansion of markets for the manufactured products
of Europe resulting from the industrial revolution—the colonial
powers loosened, in different degrees and with unequal promptitude,
their restrictions on colonial trade. At the same time and in some.
* Except some relatively unimportant islands.
8 Except the Guianas and British Honduras. -
* At that time, some of the British colonial acquisitions were commonly regarded as of
slight value. At the end of the eighteenth century England would gladly have traded
Canada for Guadeloupe, and Martinique. Colonial, trade was relatively more important
then than now, but estimated by modern standards its total was insignificant. ‘Of the
3,280 vessels, which constituted the English merchant marine in 1701, it is estimated
that the whole number could not have carried on long voyages as much merchandise in a
year as can a single large modern, steamship. Voyages to the East Indies frequently
occupied more than a year. It is estimated that in the early years of the reign of Charles
II, the total exports of England , averaged a little over £2,000,000 per annum,
and that a century later it amounted to only £16,000,000. The heavy costs of trans.
portation limited the trade to valuable commodities, such as Spices, sugar, silks, and
woolens. The various parts of Europe were practically self-sufficient, with the exception
of a few seaports and the industrial centers, such as those of Holland, closely connected
with them. The same was true of continental America and India. The West Indies
however, were devoted to sugar raising, of which they had practically a monopoly, and
they imported a large proportion of what they consumed ; their trade, both in exports
and imports, was therefore more important than was that of the larger colonies on the
neighboring mainland. Incidentally it may be noted that as a rule the foreign trade of
a small area or a small population is greater per capita than is that of a similar but
larger unit, which has almost invariably more diversified resources and a greater divisjon
of Tabor. (See Marshall, Alfred : Trade and Industry, especially pp. 25 and 38.)
#
INTRODUCTORY SURVEY. 3
what the same measure, the general interest in colonies declined.
The idea of “barren sovereignty” aroused no enthusiasm, and in
many quarters it was felt that the expenses of colonization were
certain and burdensome while the profits, if any, were both uncertain
and, since the ultimate destiny of colonies was independence, tran-
sient. The free-trade movement scored its greatest victory in Great
Britain," and there the anticolonial movement developed its greatest
strength; but among the other colonial powers, with the exception of
France, indifference and inaction prevailed. In France, Louis
Philippe and the government of the Second Empire went ahead with
active colonial policies, with little reference to public opinion. Under
Louis Philippe (1830–1848) France acquired Algeria and various
islands of Oceania. Napoleon III (1852–1870) directed the acquisi-
tion of Cochin-China, 8. and New Caledonia, extended the
French hold on western Equatorial Africa, and made some treaties
with the natives of Madagascar. He also backed the unsuccessful
adventure of Maximilian in Mexico. The British, frequently in con-
flict with Africans and Indians, extended their sway somewhat in
South and West Africa and on a considerable scale in India, in spite
of resolutions of Parliament and of the directors of the East India
Company." During this period, Great Britain conceded “respon-
sible * self-government to the settlement colonies, restored the native
government of Mysore, acknowledged the independence of the Trans-
vaal, gave away the Ionian Islands, and in a number of cases refused
petitions for protectorates or disowned annexations made by sub-
ordinates, both in Africa and in Oceania, including Hawaii.
THIRD PERIOD.
The third period of the modern colonial movement began after the
middle of the nineteenth century, when the further development of
industries and large scale production forced a keener competition for
markets for manufactured goods. The Liberalism of the preceding
period now yielded to the insistent demands of nationalism. The
new nationalism expressed itself not only in the consolidation of the
German and of the Italian states and of the Canadian provinces and
in the disintegration of Turkey in Europe, but in the protective
tariffs of the 'seventies and 'eighties, and, after the explorers had
penetrated “darkest Africa,” in the new phase of colonial expan-
sion which has continued to the present day. After 1877, the area
of the British holdings in Asia, Africa, and Oceania " increased four-
fold; * France acquired all but a quarter of a million out of the total
4,000,000 square miles of her colonial empire; * Germany, Italy,
Belgium, Japan, and the United States acquired all of their colonial
possessions.”
Most of the colonial acquisitions in this third period were at the
expense of rather primitive governments in Africa and Oceania or
—r-
5 See Chapter XII, pp. –.
© Two-fifths of India still consists of “Native States.”
"Oceania is used in this report to include the islands of the Pacific east of Ceylon and
south of the Philippines, and Hawaii, except Australia and New Zealand. -
* The figures are for the colonial empires as they existed before the war.
*Alaska was purchased by the United States in 1867. For the purchase of Assab in
1869 by Italian interests, see p. —.
4 COLONIAL • TARIFIF POLICIES.
of better organized states in Asia; but to a small extent the growth
of certain empires represents only the change of title as between
colonial powers. The United States acquired the Philippine Islands,
the Canal Zone, and the Danish West Indies by purchase, and
Hawaii" and American Samoa (including Tutuila) by amicable
agreement with the existing governments. r *
“Protection,” in theory and in practice, may be regarded both as a
cause and as an effect of nationalism. New emphasis upon both was
in no small measure contributory to the new movement in colonial
expansion. To acquire a colony was to stake out a prospective pre-
serve for national trade and to prevent exclusion from the area in
question as a possible consequence of some other nation’s taking it.
Colonial trade became again an object of exploitation; but to insure
the advantages earlier sought through prohibitions and monopolies
there was now substituted the differential tariff. As early as 1877
Portugal increased the slight differential duties already in force in
some of her colonies. Italy, with the acquisition of her first colony,
adopted the use of differential duties. France, in the years between
1885 and 1892, “assimilated ”” most of her colonial tariffs. Japan
and the United States adopted the principle of preference or as-
similation.” The self-governing Dominions first increased their
protective tariffs and then introduced preferential features.
Not all countries and not all colonies, however, followed the new
trend. Great Britain and Holland adhered to the free-trade prin-
ciples of the preceding period, both at home and in their dependent
colonies. Germany maintained an open-door régime in all the regions
which she acquired. In theory, at least, Leopold of Belgium did
likewise in the Congo Free State. The exceptions were thus consid-
erable in number, but some of them were of the type that “prove the
rule.” Bismarck, a protectionist, but without interest in colonies,
embarked on colonial enterprise in deference, apparently, only to
public opinion. One of his motives in proceeding to the annexation
of a million square miles of territory was undoubtedly to prevent
the erection of protective tariff barriers by other nations around
those regions. In this his policy was well in accord with that of
Great Britain, and Germany and Great Britain were able to impose
a free-trade policy in regard to the whole of Central Africa. Leo-
pold acquired control in the Congo only on condition that a free-
trade régime be maintained there. In other places, too, the keenness
of colonial rivalry was kept within bounds by agreements that the
powers which acquired new territories would not institute discrimi-
natory trade regulations. e
These agreements will be discussed under the heading “Treaties
and Colonial Tariffs’’; they are mentioned here because the evidences
10 Technically Hawaii was annexed by joint resolution, but the terms of the resolution
embodied the text of a treaty which the United States Senate had failed to ratify. The
chief cases, in this period, of transfer of sovereignty among the golonial powers, were the
sale or cession by Spain of most of her colonies. . . Various regions over Which various
powers had previously claimed more or less effectiye suzerainty, became in this period
colonies: The Transvaal, taken by Great Britain ; Morocco, Tunis, Tripoli, , Cyprus...and
Egypt, lost by Turkey to France, Italy, and Great Britain ; outlying regions, lost, by Siam,
taken by France and Great Britain ; Korea, Formosa, and Indo-China, lost by China and
acquired by Japan and France ; Karafuto, lost by , Russia, to Japan. The lease of the
Liaotung Peninsula, and other titles and privileges in South Manchuria Which China, had
accorded to Russia, were transferred to Japan ; and Germany, France, and Great Britain
acquired territorial leases on the coast of China.
fi See chapter on Colonial Tariff Policy of France, p. —. . . . . .
12 For the delay in the application of the principle to the Philippines, Formosa, and
Korea, see pp. — and —.
INTRODUCTORY SURVEY. 5
of the efforts which were made in certain cases to assure the main-
tenance of an open door are proof of the importance at that time
attached by some countries to differential tariffs.
TABLE 1.—Areas and populations of the colonial empires.”

Areas.
Countries. Square miles. Percentage • * ~ *
of World’s §:
total COUIntry to
Mother Posses- colonial coi §§
Country. sions. 3. Tea . *
United Kingdom. - - - - - s sº * * * * * * * * * * * * * * * * * * * * * * * * * * * 121,633 | 12,687,361 59.03 || 1 to 104.3
France---------------------------------------------- 2212,659 4,089,897 19. 03 || 1 to 19.2.
Germany--------------. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,780 | 1, 134, 193 5. 28 || 1 to 5.4.
Portugal-----------. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,488 933,264 4. 34 || 1 to 26.3
Belgium-------------------------. . . . . . . . . . . . . . . . . . . 11,373 909,600 4. 23 1 to 80.
Netherlands. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12, 582 781, 592 3. 64 || 1 to 62.1.
Italy.----------------------------------------------- 110,632 591, 200 2. 75 || 1 to 5.3
Spain ---------------------------------------------- 191,988 134,760 . 63 | 1.4 to 1
United States------. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 624, 122 119,333 . 55 30.4 to 1
Japan.---------------------------------------------- 148,756 113,482 . 52 | 1.3 to 1
Total *---------------------------------------- 4,678,013 || 21,494,682 100.00 || 1 to 4.6
Populations. -
Countries. º §
Mother. & Of World’s Mother
cº. | Possessions total cºlonial coºto
population. Colonies.
United Kingdom... . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,406,000 || 393,327,000 69. 93 1 to 8.5.
FanC8-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3 41,476,000 || 56,092,000 9.97 || 1 to 1.4.
Germany--------------------------------------. 64,926,000 12,287,000 2, 18 5.3 to 1.
Portugal------------------------------------... 5,958,000 8,735,000 1.55 || 1 to 1.5.
Belgium--------------------------------------- 7,642,000 7,000,000 1. 24 | 1.1 to 1.
Netherlands-------.... . . . . . . . . . . . . . . . . . . . . . . . . . 6, 779,000 || 48, 102,000 8.55 || 1 to 7.1.
Italy.------------------------------------------ 36,740,000 1,750,000 . 32 || 21 to 1.
Spain ". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,720,000 1,305,000 , 24 15.9 to 1.
nited States---------. . . . . . . . . . . . . . . . . . . . . . . . . 105,709,000 | 12,386,000 2. 20 | 8.5 to 1.
Japan. ----------------------------------------- 57,071,000 21,493,000 3. 82 2.7 to 1.
Total *----------------------------------- 393, 427,000 || 562,477,000 100.00 || 1 to 1.4.
* In making this and other comparative tables from which only broad comparisons are to be made, time
has not been spent in an effort to obtain figures which are exactly comparable—e.g., population figures
of the same year or figures of area uniform in their inclusion or exclusion of water surfaces. Of course
neither the area nor the population of these empires is any accurate measure of their value; the two iargest
probably contain the greatest proportion of deserts, with the exception of the unimportant Spanish and
Italian Empires.
* France includes Alsace-Lorraine; the other areas are the prewar areas.
* The population figures for France, Germany, and Portugal are those of 1910–1911; otherwise recent
figures or estimates have been used. • -
* The area and population of the Canary Islands is here included with the Spanish colonies.
* The total areas and populations of the colonial empires may be compared with those of the rest of the
world: 22,600,000 square miles with perhaps 700,000,000 inhabitants. Latin-America has an area of 8,284,000
square miles with 88,000,000 inhabitants; Siberia, 6,294,000 square miles, with 29,000,000 inhabitants; and
China, 3,914,000 square miles, with about 320,000,000 inhabitants.
2. CLASSIFICATION AND CHARACTERIZATION OF “COLONIES” AND
MANDATED TERRITORIES.
The word “colony' is used broadly to include a great variety of
dependencies, some of which would, if the word were employed in
a strict Sense, be excluded. This report is a study of the colonial
tariff policies of the colony-holding powers; for present purposes,
it is not necessary to make a fine-spun classification on the basis of
6 : COLONIAL TARIFF POLICIES.
comparative degrees of political dependency. The first and most
important distinction to be established is that between those colo-
nies which determine their own tariff policies and those whose tariff
policies are dictated wholly or in the main by the mother countries.
This adduces at once two groups, on the one hand the British Self-
governing Dominions, on the other hand all other colonies. . .
The subtle and constantly changing political relations of the
world’s territorial divisions defy simple or hard and fast definition
and classification. There are three types of international relation-
ship in reference to which the applicability of the designation
“colony,” or even of the designation “dependency” may be disputed.
There are two types of dependency whose approximation to inde-
pendence renders the application to them of the term colony doubt-
fu}. And there is a type whose close assimilation to the mother
country makes questionable an attempt to classify them separately.
Further there have emerged from the war “mandated '' territories
which must be classed, for the present at least, as dependencies, but
which are clearly not in any strict sense “colonies' of the mandatory
powers; if colonies at all they are colonies rather of the League of
Nations. -
Before taking up the doubtful cases of the use of the term “colo-
nies,” it will be well to define protectorates and spheres of influence.
Spheres of Influence.—The least clearly marked of “dependent ’’
relationships is that of the “sphere of interest " or “sphere of in-
fluence.” These terms have somewhat different connotations when
used in respect to regions in Asia on the one hand and to regions in
Africa and Oceania on the other hand. In general, a sphere of in-
fluence is a region wherein a given power claims—frequently but not
exclusively by reason of “peaceful penetration ”—to have a pre-
dominant interest which entitles it to any special economic or politi-
cal rights which may be accorded or obtained therein. This claim
may be tacitly or more or less explicitly recognized by other powers.
An explicit recognition is usually embodied in a bilateral agreement,
by which two powers define certain territories and each agrees to
seek no special rights in the region thereby resigned to the economic
activity or the political aspirations of the other. In Asia, “ spheres
of interest " have been staked out within the territories of established
independent states, such as China, Siam, and Persia; and their
creation has usually had no other immediate effect than progress to-
ward monopolization of railway, mining, and other concessions by
nationals of a power whose “sphere * is recognized. In Africa south
of the Sahara and in Oceania, where the native peoples have only
primitive political organizations and where the existence of “govern-
ments’ has scarcely or not at all been recognized by the European
states, the recognition by the other colony-seeking powers of a sphere
of interest in a given territory has been practically equivalent to the
creation of a title deed. By agreements among the powers, in the
years between 1880 and 1900, nearly all parts of Africa and Oceania
not previously occupied were divided among the colony-holding
states. As a rule, bases for occupation or conquest of the territory
had been established antecedently, and frequently treaties had been
made with the local chieftains; but the use of the term “sphere of
interest * or “sphere of influence ’’ indicates that actual possession
INTRODUCTORY SURVEY. - - - 7
had not been established. The degree to which control has since been
made effective is of minor concern. These territories in Africa and
Oceania have long since come to be regarded as protectorates if not
as colonies, and their ports of entry are controlled by Europeans.
Accordingly they are dealt with in this report; but the “spheres of
interest * in Asia are excluded. -
Protectorates.—A “protectorate ’’ is a state, theoretically independ-
ent, whose foreign affairs have been placed by treaty under the con-
trol of some other state, but whose administration and laws remain
wholly or in considerable part free from outside interference; or, in
looser usage, it is a colony in which the administration is carried on
through native rulers and in accordance with native law but with
more or less supervision by “advisers ” or “residents” representing
the protecting power. The “self-governing colonies' do not fall
within this definition because they have never been independent
states and their relations to the mother country are not defined by
treaty;” otherwise their status is closely similar to that of the least
dependent protectorates.” The important difference between the two
is that they have been moving in opposite directions, protectorates
tending toward loss of control over domestic affairs and reduction to
colonial status, and Self-governing colonies proceeding toward prac-
tical if not legal independence. The essence of the relationship be-
tween a protectorate and the protecting power lies in the latter’s con-
trol of foreign affairs; but, especially if the native government is not
solvent or does not preserve order, responsibility for financial and
foreign affairs compels interference with internal administration,
The general tendency is for the protecting power to impose progres-
sively more and more of its methods and institutions.
The protectorates found in North Africa and Asia, such as Tunis
and Morocco and the states of the Malay Peninsula and Indo-China,
have special treaty relations with their protectors; they have greater
likelihood of retaining a measure of independence in their internal
administration than have the so-called protectorates of Central
Africa, where the native states were not recognized by other powers
and have been recognized by the acquiring country chiefly because
the establishing of a Series of protectorates was a convenient method
of gaining control or establishing order without violent opposition.”
But such territories or states do not constitute true protectorates;
they are not dependent or quasi-dependent states carrying on foreign
18 The Transvaal and Orange Free State were independent, but their present self-
government does not rest upon a treaty basis.
14. The difference between a colony and a protectorate is logically expressed in the con-
trol of the former by the colonial office and regulation of affairs of the latter by the
foreign office, as in, France and Great Britain; Relations with a protectorate in the
stricter sense are diplomatic rather than constitutional. The tendency is for the pro-
tecting power to exercise increasing authority within a protectorate and to transfer its
control from the foreign office to the colonial. Consequently there has been a great de-
crease in the number of British protectorates under the supervision of the foreign office.
Since about 1905 Somaliland, Uganda, Nyasaland, and the East African protectorates
have been transferred to the colonial office, and only Egypt. Sarawak, and the territory
of British North Borneo remain under the foreign office. The French protectorates of
Annam, Laos, Tonquin, and Cambodia, which, with the colony of Cochin-China, compose
French Indo-China, are under the colonial office; while Tunis and Morocco are under the
foreign office. - -
15 In some cases native chieftains have voluntarily placed their territories under Euro-
ºpean protection. Some writers have made much sport over “the strange and generous
passion for giving away of kingdoms ” exhibited by native rulers. (Woolf, Leonard :
Empire and Commerce in Africa, 1920, p. 135.) In many cases these rulers signed docu-
ments which they did not comprehend, but in other cases the advantages and disadvan-
tages of the act had been weighed. Consider the case of Hawaii, and compare the rise of
the feudal system in Europe. -
N
8 - COLONIAL TARIFE POLICIES.
relations through representatives of the protecting power; they are
rather units of local government, having no foreign relations of any
kind; they have not granted to their protectors a limited right of
Supervision; their protectors, on the contrary, have permitted them
to continue, in varying degrees, the native forms of administration.
The self-government which the United States permits to Indian
tribes is comparablé to this. Parts of Java and of the Philippines
are so governed. In the case of the latter, however, the Sultanate
of Sulu might be classed as a protectorate. Further, the term “pro-
tectorate ’’ may be simply an official misnomer; for instance, all of
the German colonies were officially designated protectorates (Schutz-
gebiete), and throughout a large part of the “Nyasaland Protector-
ate?' no native government had been recognized. -
The numerous regions ordinarily listed as protectorates are in-
cluded in this study, as a rule without inquiry as to the exact degree of
control which the protecting power exercises and without investiga-
tion as to whether the protecting power fixes the tariff rates by treaty
right or by exercise of political pressure. Many of the Native States
of India maintain their own tariffs; and it may be that elsewhere,
in Sarawak and Brunei, for instance, the British Government has
not exercised the determining influence in tariff matters. It can
scarcely be doubted, however, that, if these dependent governments
had wished to grant special favors to third countries, means would
have been found to prevent their doing so. In Indo-China, the Fed-
erated Malay States, and Tunis, existing tariff provisions indicate
plainly the exercise of more or less complete control by the protect-
ing country. - --
With protectorates may be included territories administered by
chartered companies; in the latter as in the former, international
responsibility and, in the last analysis, all final authority lies with th
mother country. ‘.
DOUBTFUL USE OF TERM “COLONIAL.”
Certain “protectorates” constitute the first of the doubtful cases
in connection with the use of the term “colony.” As a state which was
previously independent * falls more and more under the control of
another state, there is frequently a difference of Opinion as to the time
at which it may be properly designated as a protectorate or colony.
Thus, Egypt was popularly regarded as a British “colony” before
1914, when it was not officially even a protectorate and when many
works (e. g., the Statesman’s Year-Book) classified it as part of the
Turkish rather than of the British Empire. Before 1920 the Ameer
of Afghanistan was subsidized by the British Government and was
bound by treaty to carry on foreign relations only through British
agencies, and Russia had recognized this arrangement; but the
British were pledged not to interfere in the internal affairs of
Afghanistan and it was frequently classed as an independent country.
Many writers, especially European publicists, have designated Cuba,
and sometimes the Dominican Republic, Haiti, Liberia, Panama, and
Nicaragua as protectorates of the United States. But, inasmuch as
16 Or owed a nominal allegiance to some State which was too weak to exercise real
control. Such was Turkey's suzerainty over Egypt, Tunis, and Morocco, and China's
over IKorea.
INTRODUCTORY SURVEY. 9
the United States has no control over the foreign affairs of Cuba ex-
cept in relation to certain subjects and on the basis of a veto power,
and as the right to interfere in Cuba's internal affairs is contingently
limited and likely to be exercised rarely, if ever, and as the tariff
favors given and received reciprocally between the two countries were
solicited by Cuba and were negotiated, not dictated, such classifica-
tion seems unwarranted.” A discussion of the classification of
doubtful cases does not lie within the scope of this report; only
Egypt, of the countries mentioned, has been included in the account
of tariff policies. W.
Assimilation to the mother country.—At the other extreme, diffi-
culty is encountered in determining at what moment a territory in
process of assimilation to the mother country should be said no longer
to be a colony. Various criteria may be suggested for this determina-
tion: The constitutional or legislative affirmation that the territory
is incorporated with the mother country; uniformity of civil and po-
litical rights and of governmental organization and fiscal system;
and lastly, public opinion and the usage of writers upon the subject.
These criteria are all defective; the first is formal and may be con-
tradicted by the others; and the second, if entire uniformity be in-
sisted upon, is too rigid, since it includes territories which are not
colonies. Ireland, after a century of incorporation in the United
Kingdom, has laws and a fiscal system not altogether uniform with
those of Great Britain; the Isle of Man and the two Channel Islands,
Jersey and Guernsey, have tariffs, revenues, and debts separate from
those of the United Kingdom, and to them the laws of Parliament
do not apply except by specific provision; yet these islands are not
classed as colonies. Algeria, likewise, has been formally declared a
part of France; * French laws extend to it, unless a special excep-
tion is made; and it is administered in many respects as a part of
France; yet the mass of its population is dealt with as foreign,” its
finances are separate and even its tariff is not absolutely uniform
with that of France, and French writers give it a prominent place
in discussing the French colonies. If uniformity of political rights
and fiscal arrangements be not insisted upon further than representa-
tion in the national legislature, and approximate uniformity of tar-
iffs, then some of the more distant French possessions (e. g. Guade-
loupe and Reunion) are parts of France rather than colonies.
The possessions of the United States which have a “territorial”
status, now only Alaska and Hawaii, are not usually regarded in the
United States as “colonies,” though they have no representatives in
Congress and are absolutely subject to Congress in the exercise of the
rights of local government which have been granted to them, and
they have no guaranty that they will ever attain statehood. The
population of Hawaii is alien to the extent of 88 per cent; geo-
graphically, racially, and legally Algeria, seems more entitled than
Hawaii to be considered an integral part of the country which
governs it. Porto Rico is politically less closely related to the United
17 The treaty and commercial relations between Cuba and the United States have already
been described and accounted for in the United States Tariff Commission’s report on
“Reciprocity and Commercial Treaties '' (Government Printing Office, 50 cents), and that
subject will not be discussed here. - e -
* Compare the Portuguese, colonies, which are officially styled “Overseas Provinces.”
18 Or was until February, 1919, when about half a million natives were given the
franchise.
ſ
10 COLONIAL TARIFE POLICIES.
States than is Hawaii, never having been designated a “territory.””
If comparison be made between Porto Rico and the French “as-
similated * colonies, the latter, with their representation in the
French legislature, would seem to have become more really than the
former a part of the mother country. * -
Omitting further discussion, Algeria, Madeira, and the Azores are
included in this study, while Corsica, the Isle of Man and the Chan-
nel Islands, Alaska, and Hawaii receive no attention.
Self-governing Dominions.—In a class by themselves, must be
placed those Dominions which, without having declared their inde-
pendence, have asserted the right to rank as independent for certain
purposes, such as representation and participation in the League of
Nations. The British self-governing Dominions, and they alone, con-
stitute this class.” Fiscal autonomy has enabled these Dominions
for many years to maintain protective tariffs in conflict with the
economic interest and the general tariff policy of the mother country.
Even the preferential tariff of Canada was, at the time when it was
established, contrary to the wish and policy of Great Britain. How-
ever, these Dominions are still technically classed as Colonies, and
their tariff policies are dealt with in Part II of this report.
It is unwise to attempt an arbitrary or a hard and fast classi-
fication of dependencies. Official classifications are frequently out
of date or euphemistic in arrangement. Treaties declarative of the
protectorate relationship frequently emphasize the Sovereignty of
the weaker state at the moment when that sovereignty is being in-
fringed by the stronger. Radical writers, inveighing against the
acquisitive greed of the powers, frequently employ the term “colony”
or “protectorate ’’ on flimsy grounds and in an attitude of gloomy
prophecy. For the purposes of this study, subtle distinctions are
unnecessary and special attention need not be given to justification
of individual inclusions and exclusions.
TERRITORIES HELD UNE) F.R MANDATE OF THE LEAGUE OF NATIONS.
The territories held under the mandate of the League of Nations
are clearly not “colonies' of the mandatory powers within any
strict use of the term “colony.” No single nation holds title to any
of these territories, and the Mandatory Power administers, or assists
the inhabitants to administer, a mandated territory in accordance
with the principles embodied in the Covenant of the League of Nations
and under the supervision of that league. The central idea is not
possession but the administration of a trust. In view, however, of
the inclusive sense in which the word colony is popularly used and
the intimate connection between mandated territories of class C
and the mandatories, it has been considered warrantable to include
in this study some reference to mandated territories and their tariffs.
By article 119 of the treaty of peace “Germany renounces in favor
of the Principal Allied and º Powers all her rights and titles
—º-
* The Porto Ricans were made American citizens in 1917. . But so long as the Porto
Rican does not acquire a residence in Some State or travel abroad this new status has
little practical effect.
21 India can not yet be put in this class in spite of “representation in the League of
Nations and of increasing powers of self-government. The promised “independence " of
Egypt may bring her into this class rather than that of SOVereign states.
INTRODUCTORY SURVEY. 11
R
over her overseas possessions.” ” The title to these territories, there-
fore, is vested in these powers and not in the League of Nations, * and
these powers represented by their Supreme Council (Council of
Four) allocated the mandates and ratified the division of Togo and
Kamerun previously agreed upon by France and Great Britain, and
of German East Africa agreed upon by Great Britain and Belgium.
Article 22 of the Covenant of the League of Nations, which forms
an integral part of the peace treaty, provides for the administration
of the former German colonies and of the Asiatic territories which
were taken from Turkey. This article reads as follows:
ART. 22. To those colonies and territories which as a consequence of the late
War have ceased to be under the Sovereignty of the States which formerly gov-
erned them and Which are inhabited by peoples not yet able to stand by them-
selves under the strenuous conditions of the modern world, there should be
applied the principle that the well-being and development of such peoples form
a sacred trust of Civilization and that Securities for the performance Of this
trust should be embodied in this COvenant. &
The best method of giving practical effect to this principle is that the tute-
lage Of Such peoples should be entrusted to advanced nations Who by reason
of their resources, their experience or their geographical position can best un-
dertake this responsibility, and who are willing to accept it, and that this tute-
lage should be exercised by them as mandatories On behalf of the league.
The character of the mandate must differ according to the stage of the de-
Velopment of the people, the geographical situation of the territory, its eco-
nomic COnditions, and Other Silmilar Circumstances.
[Class A.] Certain communities formerly belonging to the Turkish Enypire
have reached a stage of development where their existence as independent na-
tions can be provisionally recognized, subject to the rendering of administra-
tive advice and assistance by a mandatory until Such time as they are able to
stand alone. The wishes of these communities must be a principal considera-
tion in the Selection Of the mandatory. -
[ Class B.] Other peoples, especially those of Central Africa, are at such a
stage that the mandatory must be responsible for the administration of the
territory under Conditions which will guarantee freedom of Conscience and re-
ligion, subject only to the maintenance of public order and morals, the prohibi-
tion of abuses such as the slave trade, the arms traffic and the liquor traffic,
and the prevention of the establishment of fortifications or military and naval
bases and of military training Of the natives for other than police purposes and
the defense of territory, and will also secure equal opportunities for the trade
and Commerce Of Other members Of the league. - -
[Class C.] There are territories, such as Southwest Africa and certain of the
South Pacific Islands, which, owing to the Sparseness of their population, or
their small size, or their remoteness from the centers of civilization, or their
geographical contiguity to the territory of the mandatory, and other circum-
stances, can be best administered under the laws of the mandatory as integral
portions of its territory, subject to the Safeguards above mentioned in the in-
terests of the indigenous population. - - -
In every case of mandate, the mandatory shall render to the Council an annual
report in reference to the territory Committed to its charge.
The degree of authority, control, or administration to be exercised by the
mandatory shall, if not previously agreed upon by the members of the League,
be explicitly defined in each case by the Council.
A permanent Commission shall be constituted to receive and examine the
annual reports of the mandatories and to advise the Council on all matters
relating to the Observance of the mandates. - -
Attention may be specially directed to three points: First, the
principle is clearly recognized in article 22 that the mandated ter-
*The treaty with Turkey contains a similar provision relating to Turkish territories
in Asia but omitting reference to Associated Powers. .
* See the appendix to Chapter IV, p. —.
48748°–21—2
12 COLONIAL TARIFF POLICIES.
ritories are to be administered primarily in the interests of the resi-
dent populations, and that the mandatories are trustees rather than
possessors of the territory. Second, the mandated territories are di-
vided into three classes, subject to separate, and in some respects
very different, provisions. While the treaty does not define the ter-
ritories belonging to each class, they may be tabulated as follows:
MANDATORIES AND MANDATED TERRITORIES.
Class A. Class B. * - Class O. .
Great Britain : Great Britain : Great Britain :
Mesopotamia. Tanganyika." Nauru.”
Palestine. Part of Togo.” Australia :"
France : - R" r a C ti O m Of Kam- New Guinea."
Syria. erun.” New Zealand :*
*: Belgium : Western Samoa.
Ruanda and Urundi.” South Africa :
France : South West Africa.
Kamerun.” Japan :" - -
Togo.” Caroline, Marianna,
- a n d M a r S h a 1 1
Islands.
* Formerly German East Africa, which included also Ruanda and Urundi.
* As originally announced the mandate was to be held by the British Empire. The
mandate as issued is to His Britannic Majesty, but the Governments of Great Britain,
Australia, and New Zealand have reached a tentative agreement for the division of the
phosphates taken from Nauru. .*
3 For the division of Central African territories, see the appendix to Chapter IV,
pp, The mandates are “conferred pupon His Britannic Majesty to be exercised in his
behalf '' by the governments of the Commonwealth of Australia, the Dominion of NNew
Zealand, and the Union of South Africa. -
5 The former German colony of New Guinea, excluding Nauru and the islands north of
the Equator. The territory includes Kaiser Wilhelmsland, the Bismarck Archipelago,
and lesser islands.
° The status of Yap, which is part of the Caroline group, remains unsettled.
Only in territories of class B does article 22 explicitly require the
maintenance of the open door, and even in this case the benefit is
guaranteed only to other members of the league. In mandated ter-
ritories of class C the open door is not required by article 22, and
the mandates already approved for this class makes no provision
for it. In fact differential duties have been introduced in South-
west Africa and Samoa, and by discriminations of other kinds
Australia has effectively monopolized the trade of the territory en-
trusted to her control.” On the other hand the drafts of the man-
dates for class A embody provisions for the maintenance of the
open door for the benefit of members of the League of Nations. The
exclusion of other states from the terms of the mandates has not so
far resulted in any policies of discrimination against such states.
Third, the last two paragraphs of article 22 contemplate that the
members of the league, presumably acting through the assembly
of the league, will define the terms of the mandates and will organize
the permanent Supervisory commission; but the assembly has so far
taken no action upon the terms of the mandates, and those which
have been approved have been approved by the council of the
league. The council has also determined that the permanent com-
mission shall be composed of nine members, including a majority
from states which are not mandatory powers.
“For further discussion of these points, see the appendix to Chapter IV, p. —.
i INTRODUCTORY SURVEY. 13
3. GEOGRAPHICAL AND ECONOMIC DIVISION OF COLONIES-
EFFECT ON TARIFFS.
The political division into “dependent’’ colonies and “self-gov-
erning ” colonies corresponds in general to the geographical division
into tropical colonies and nontropical colonies and to the economic
classification into plantation and settlement colonies. The latter are
those in which white men can live permanently; in them the tendency
toward economic and industrial development similar to that of
European states and toward self-government or independence is
distinctly greater than in the tropical colonies. The British self-
governing Dominions afford the chief examples.”
Tropical colonies, except for limited areas of high plateaus, are
plantation colonies and with them may be associated various colonies
at the border of the Tropics, or even in the Temperate Zone, in which
nationals of the colonizing country can not settle in large numbers
since a comparatively dense population was already in occupation
of the territory when it became a colony. Malta, Egypt, and Korea
are examples of nontropical and well-populated colonies. These
nonsettlement colonies are sometimes subdivided into plantation and
exploitation colonies. Since the practice of the enslavement of the
natives and the Seizure of the lands tilled by them has been aban-
doned, agricultural plantations can predominate only * in the less
thickly populated territories—chiefly tropical Africa, Oceania,
Guiana, but also in parts of India, &y. the Malay Peninsula,
Indo-China, Java, and the Philippine Islands. Outside of Asia
plantation colonies usually suffer from a shortage of labor, and their
development has been attained by varying degrees of oppression of
the natives, from slavery up.” Nonsettlement colonies are, as a
whole, characterized by commercial, agricultural, and industrial de-
velopment, in succession and then iſiº. by the capital and
under the direction of nationals of the governing states. If the land
is already well occupied, agriculture is left to the native population
except for scientific experimentation and education,” and the na-
tionals of the colonizing power engage in a supervisory capacity in
government, transportation, engineering, mining, and to some extent,
maufacturing. -
These nonsettlement colonies, especially those properly called plan-
tation colonies in the stricter sense, frequently produce conspicuously
only one or two products, and they all export principally raw ma-
terials, most of which do not compete with products of the temperate
* Other regions previously of the same type have gained their independence—the United
States and the States of South America. Compare the development taking place more
slowly in India, Indo-China, and northern Africa.
* In the West Indies many plantations continue from slavery days and there is room
for others.
27 See 8. 75 for the number of Asiatics which have migrated or been imported into
Malaya, Oceania, and Africa. Compare recent discussions of forced labor in British East
Africa and the well-known criticisms of the labor poig. pursued in the Congo Free
State, German Kamerun, and Portuguese Sao Thomé. Some colonies—for instance, the
Gold Coast, and Nigeria—are now showing how rapid may be the development of a tropical
colony if the natives be given proper encouragement as proprietors rather than as peons
or day laborers.
28 Before the war it seemed likely that the natural indigo of India would be driven
from the market by synthetic indigo. Recent experiments are said to have shown that
the product per acre can be increased fivefold and that, aided by greater increase of
costs in Europe, natural indigo need not fear the competition of the synthetic product.
A criticism has been made that the colonizing powers neglect the products for native
Consumption and devote their experiments unduly to cotton, rubber, cocoa, and other
articles of international commerce. -
\
14 COLONIAL TARIFF POLICIES.
zones. Even in the case of India, raw materials still constitute two-
thirds of the exports, after a considerable decrease in the proportion
during the war. In these colonies the whites import practically
everything that they consume, including foodstuffs. The natives,
according to their numbers and the degree of their civilization, im-
port quantities of Sugar, liquors, kerosene, and a certain range of
other goods, particularly cotton textiles. These colonies therefore
offer markets of considerable value to the industrial nations. As
they are almost without industries of their own,” if they have pro-
tective tariffs, these are devised for the purpose of according a mar-
ket for the industries of the mother country; but even then, as the
rates imposed are practically never higher than those of the tariff
of the mother country, and as the differential is not always equal to
the full amount of the rate, and as foreign countries are usually at
less disadvantage in making contact with the market of the colony
than in invading the market of the mother country, the protective
tariff is not in the colony so great a barrier to trade as it is in the
mother country. For instance, an identical rate of duty in the
Philippines and in the United States constitutes, as an obstacle to
Japanese trade, a lower barrier in the former than in the latter.
Where these colonies have tariffs for revenue only, or merely mod-
erate rates of duty such as prevail in the Italian colonies, the char-
acteristic tariff is one of ad valorem rates, say 10 per cent, on all im-
ports not specially exempted as necessary to the development of the
colony, with higher specific rates on alcohol, beverages, and tobacco
and a limited number of other articles; it contains also usually ex-
port duties, occasioned by the need of revenue in comparatively poor
and undeveloped countries and by the fact that the system of mono-
culture makes the collection of an export duty an easy and equitable
substitute for taxes on land or on the natives direct.
CHARACTERISTICS OF COLONIAL TRADE.
The significance and danger of national control of the world’s raw
materials was revealed by the war. These raw materials predomi-
nate in the export trade of the colonies. Upon the colonies the world
is wholly dependent for certain materials, notably jute and copra,
and largely dependent for many products, animal, vegetable, and
mineral. Such are tea, cocoa, Vanilla, Spices, cinchona, camphor, and
numerous oil-producing Seeds and nuts; rubber, hemp, and kapok;
wool, ivory, Ostrich feathers, shellac, and goatskins; diamonds,
graphite, tin, manganese, mica, asbestos, and phosphates. By enu-
merating special kinds and qualities of articles the lists might be
extended almost indefinitely. Thus, though the United States pro-
duces two-thirds of the world’s cotton, tire manufacturers and others
imported 400,000 bales of Egyptian cotton in 1920.
The colonies, especially the minor colonies, are not self-sufficient.
They produce a few staple articles rather than a variety. Therefore
what they produce they must export, and what they consume they
* It is not possible to include in the text the exceptions to and the qualifications of
the generalizations which it is necessary to make in speaking of great grouns of colonies.
The most important exception to the statement that the nonsettlement colonies are almost
without industries is that India possesses many large modern factories (see p. —). The
outstanding points in regard to the agriculture, industries, and commerce of the various
colonies are given in the chapters on the Colonial Tariff Policies of the different powers,
ſ
INTRODUCTORY SURVEY. 15
\ - -
must import.” In a few cases, however, the distinction between pro-
duction and exportable surplus is important. India rivals Cuba as a
Sugar producer, yet she imports more than she exports. Though
China produces most of the world’s rice, three-fourths of the quan-
tity which passes in international trade is provided by Burma and
French Indo-China. Of wool exports over one-half comes from the
British Dominions. In considering the possible monopolization by a
certain power or powers of the world’s supply of a given article, not
only the present exportable surplus but the total production and the
potential production must be considered. If a given country pro-
duces one-half of the wool which it consumes and none of the rubber,
and if this country finds itself confronted by a monopoly of the ex-
portable surplus of these two articles, its position in respect of the
two is obviously different. *
The import trade of the colonies is characterized by the great pre-
dominance of manufactured articles. Foodstuffs, beverages, and to-
bacco play an important part in the trade, but perhaps on the whole
not more important than in Europe; but while Great Britain, for ex-
ample, imports raw materials to a value twice as great as that of the
manufactured articles imported, in the colonies, even including the
Dominions, the proportions are more than reversed. In the Domin-
ions and to a lesser extent in India and some of the other colonies,
manufactures are developing; but except for the Dominions and
India the comparatively small size of the colonies, together with other
factors, render it highly probable that their industrial development
will be slow and restricted to a few lines. The colonies are therefore
more dependable markets for the disposal of manufactures than are
independent countries. * -
The export trade of different colonies of the same power in the
same part of the world is often quite different, as may be seen in the
British West Indies or in British West Africa; * the import trade,
on the other hand, in its larger features, is similar in all the colonies.
Textiles (cheaper cottons, made-up clothing, sacks), machinery and
tools, prepared and preserved foodstuffs (dry fish, canned meats,
Sugar, condensed milk), liquor and tobacco, salt, kerosene, coal
(chiefly for bunker purposes), matches, soap, glassware, sheet iron,
cement, leather goods, and chemical products are the principal classes
of the trade. In detail the differences are naturally very great. In
colonies where there are no whites except a few officers, merchants,
and missionaries, the native demand determines the character of the
trade and this demand may not at first extend beyond cotton piece
goods, liquors, salt, and brass rods or other trinkets; but in the North
African and Asiatic colonies the native demand may include almost
as wide a range of articles as in the colonies settled by whites. The
design and quality of textiles and the variety of machinery and im-
plements used may vary completely from one colony to the next—
* “Consume '' is, of course, used in the general sense and not as applied to foodstuffs
alone. The statement in the text is true in its most unqualified form of the smaller
plantation colonies, but even in the Gold Coast, for instance, where there are no Euro-
pean plantations, the natives are coming to depend upon imported foodstuffs. Various
colonial governments, e. g., of the Philippines, Straits Settlements, and British Guiana,
have taken special measures to insure a food supply. For the predominance of one or
several products in the export trade of the colonies, see p. — on the British West Indies
and the various tables which give the chief products exported from the Philippines,
Porto Rico, Egypt, Ceylon, Java, British West Africa, and the Congo.
. * See pp. — and ©
16 COLONIAL TARIFF POLICIES.
for instance, sugar mills, Kaffir hoes, automobile trucks, gold dredges,
barbed wire, and sheep shears are all in demand in colonial markets,
but not necessarily in the same colony. Pottery making, tanning, and
wood working are practiced universally, but different parts of the
colonial market import quantities of earthenware, leather, and worked
wood. In Tunis, however, raw hides are an important article of
import, and from some colonies there is an export trade in leather,
pottery, textiles, and other articles which are generally more charac-
teristic of the import trade. -
4. IMPORTANCE OF COLONIAL TRADE, WITH ESPECIAL REFERENCE
TO THE UNITED STATES.
From the point of view of trade, the colonies may be divided
roughly into three groups. The British self-governing Dominions
located in the temperate regions,” with energetic and highly intelli-
gent populations and already comparatively well advanced in indus-
tries, may be put into the first group. They have a high per capita
trade * and their total trade constitutes more than one-third of the
total trade of all colonies combined. A second group may be formed
of the major colonies of Asia and of North Africa, of which by far
the most important are India, Java, and Egypt.* These lie for the
most part in or near the Tropical Zone, and their populations, large in
number and dense in distribution, consist mainly of hard-working
natives, a fair proportion of whom are skilled craftsmen. Perhaps
on the whole less richly endowed in natural resources, lacking ma-
chinery, and not having developed large Scale organization, these
colonies, thanks to the mass and the industry of their populations,
maintain a trade which is in some cases as great as that of the self-
governing British Dominions. The total trade of these major North
African and Asiatic colonies, extending from Morocco to Korea º
likewise exceeded in 1913 a third of the total colonial trade.
In a third class may be grouped all minor colonies. Of these only
a few, comparatively small in area, lie outside the tropics.” Their
populations are not large and are as a rule inferior in productive ca-
pacity. Except for some whose unimportance is due to their insignifi-
cant area, they are in the primitive stages of agricultural development
and have achieved little in the way of mining or manufacturing.
They have not developed adequate systems of communication. Em-
bracing most of Africa, and scattered in various Seas, particularly
the western Pacific, their total trade, though they number four score
and include comparatively advanced regions such as Nigeria, is less
than that of the four Dominions. However, the undoubted possi-
bilities of the vast areas included, when adequate communication
82 Northern Australia extends into the Tropics. -
88 Canada's trade in 1919–20 was $273 per capita, South Africa's per capita trade is
much smaller than that of the others, due partly to the presence of the large black popula-
tion. Per capita trade is not necessarily an index of prosperity ; an increase in popula-
tion may be accompanied by greater diversification of industries, a closer approach to
self-sufficiency, and a decline in the per capita trade. e
* The others are Morocco, Algeria, Ceylon, Indo-China, the Philippines, Formosa, and
Korea. The total trade of these colonies in 1913 ran from Algeria’s $250,000,000 to
Morocco's $43,000,000. If the classification be made merely on the basis of trade (1913)
Porto Rico and Dairen must be classed with these major Colonies.
Sº I. e., those named in the text and note above, but not including Porto Rico, Dairen,
Hongkong, the Malay States, and the Straits Settlements.
80 British : Gibraltar, Malta, Cyprus, Bahrein Islands, Weihaiwei, Bermuda, and Falk-
land Islands, French : Tunis, and St. Pierre and Miquelon. Italian : Libia and Rhodes.
SpanishŻ Canary Islands, Madagascar, Mozambique, and Formosa lie partly in the Tem-
perate Zone. - -
INTRODUCTORY SURVEY.
17
shall have been provided and the labor problems have been solved,
give these colonies a high potential value. Table 2 gives an indica-
tion of the relative commercial importance *" of the mother countries,
colonies, and other regions of the world in a normal prewar year.
TABLE 2.-Trade of the Won:ld," 1908 and 1913.
[Values in millions of dollars.]

Increase.
Countries. 1903 1913
Amount. | Per cent.
COLONIAL POWERS.
Great Britain------------------------------------------ 4,394 6,830 2,436 55
Canada------------------------- ------------------- 2 473 21, 130 657 139
Australia------------------------------------------ 419 770 3352 84
South Africa.--------------------------------------- 395 553 158 40
#: Zealand-------------------------------------- 135 220 85 63
ia---------------------------------------------- 2 1,017 2 1,662 645 63
BKVDt--------------------------------------------- 182 299 117 64
Other possessions. . . . . . . . . . . . . . . . . . . . .------------- 463 1,443 9SO 212
Total Crown Colonies and India. . . . . . . . . . . . . . . . . . 1,662 3,404 1,742 105
Total British possessions. . . . . . . . . . . . . . . . . . . . . . . . . 3,084 6,078 2,994 97
*:::::::::::::::::::::::::::::::::::::::::::::::::: *{{| *;| *| ||
#: o-China ........................................ 70 126 56 80
unis---------------------------------------------- 30 62 32 108
French Morocco. ----------------------------------- 11 43 32 289
Other possessions. ... -----------------------------. 83 153 69 S3
Neth º: French possessions. -- - - - - - - - - - - - - - - - - - - - - - - 316 629 313 99
NetherlandS. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,694 2,814 1, 120 66
Dutch East Indies. -------------------------------- 180 422 $ 243 135
Dutch West Indies... -------------------------..... 6 10 4 370
Total Dutch possessions. ------------. . . . . . . . . . . . . 3.185 432 3 246 133
United States------------------------------------------ 2,418 4,224 1,806 75
£º. s = sº e º ºs º sº º º ºs e s = * * * * * * * = - - - - - - - - - - - - - - - - - - 66 107 41 62
Orto Rico.----------------------------------------- 29 86 57 192
Total United States possessions. . . . . . . . . . . . . . . . . . 496 4 193 498 4 102
Japan------------------------------------------------- - 300 678 378 126
Fº and Korea-------------------------------- - 35 113 78 222
airen--------------------------------------------- (5) 36 ------------|------------
Portugal.----------------------------------------------- 97 134 38 39
Portuguese possessions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 131 44 50
Germany---------------------------------------------- 2,622 4,967 2,345 89
German possessions. ------------------------------- 6 21 6 111 90 437
Spain-------------------------------------------------- 364 433 69 19
Spanish possessions. ----------------------------... (7) 48 ------------------------
Belgium: --------------------------------- - - - - - - - - - - - - - 920 1,692 772 84
elgian Congo. ------------------------------------ 0 13 625 12 89
Italy:---------------->.- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 652 1, 185 533 82
# * and Somalia. ------------------------------ 3 15 12 482
ibia---------------------------------------- - - - - - - (8) 8 ------------------------
Other European countries *- - - - - - - - - - - - - - - - - - - - - - - - - ... 2,961 4,980 2,019 68
Turkey------------------------------------------------ 2 181 2 298 117 65
China-------------------------------------------------- 355 721 366 103
Nontropical South America . . . . . . . . . . . . . . . . . . . . . . . . . . . . 535 1, 269 734 137
TROPICAL countRIES .
razil------------- : - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 301 684 383 127
Qther South America "...------------------------------ 110 277 167 151
Qubº--------------------------------------------------- 163 305 141 87
§: Kii - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4 103 4 223 4 120 116
Jentſal AmeriCal - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 48 101 52 106
Persia, Siam, and Liberia. ----------------------------- 85 167 82 96
X- TOTALS
Colonial powers.---------------------------------------- 15, 209 25,927 10,717 70
British Dominions....................... -------------- 1,422 2,674 1,252 88
#; colonies---------. - - - - - - - - - - - - - - - - - - - - - - - - - - - - # ; 5, ; }0 3. 629 10 109
Otal CO1001°S - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7, 838 10 3,881 10 101
Total colonial empires. ----------------------...-------. 15,650 33,764 14,714 77
Other nontropical countries. -----...................... 4,031 7, 268 3,237 80
Other tropical countries------------------.............. 992 2,055 1,062 107
World total *------------------------------------------ 23, 892 42,789 18, 896 79
* The trade statistics relating to the different countries and colonies can be compared only in a general
way. They differ in accuracy, in methods of valuation, and in the exclusion or inclusion of Government
supplies, bullion and specie, and transit trade. The percentages of increase are more directly comparable,
18 COLONIAL TARIFF POLICIES.
It will be seen from the figures that the total external trade of
the colonies in 1913 was 73 billions of dollars, out of the world total
of nearly 43 billions. The colonies other than the self-governing
Dominions contributed 5% billions. The absolute amount of colo-
nial trade is therefore considerable, and there are three points lend-
ing special importance to it. First, the trade of the colonies has been
growing at a more rapid rate (percentage) than that of other coun-
tries. The total colonial trade was, in 1903, 16.1 per cent and, in
1913, 18.3 per cent of the world total. The colonies other than the
Dominions increased their share of the total from 10.1 to 12.1 per
cent. In no case did the trade of a mother country increase as
rapidly as that of its colonies.” The Dominions had a more rapid
commercial development than did other temperate countries, and the

but the statistical methods of some of the colonies may have been changed within the decade. The figures
for the British possessions other than Egypt include bullion and specie. The Dominions produce and
export gold and silver, while India is a large importer of treasure; but the movement of specie into and
from Fºgypt roughly balances, and, as it is an unusually large item (see p. –), it has been omitted. In-
clusion in the Indian figures of Government stores and treasure, whose values were practically the same
in 1903 and 1913, and of reexports and overland trade, which increased less than 50 per cent in the decade,
considerably reduces the percentage of growth for Indian trade. The sea-borne trade of merchandisé
imported for private account, and of exports, the produce of India, increased by 82 per cent in the decade
before the War.
2 Years ending March 31, 1904 and 1914. . *
3 Throughout the table the totals and the amounts and percentages of increase have been obtained from
figures carried to the nearest thousand instead of to the nearest million. Reducing or raising the figures
to the nearest million introduces slight discrepancies in some of the final digits of the totals and in some of
the percentages. The figures of the table may be compared with the following figures for the Dutch
Colonies, carried to the nearest thousand:
Increase.
1903 1913
Amount. | Per cent.
Dutch East Indies.…...------------------------------ 179, S97 422,457 242, 560 134.83
Dutch West Indies.------------------------------------ 5,590 9,506 3,916 70. 06
Total Dutch possessions.... ---------------------- 185,487 431,963 246,476 132.88
* Including Guam and Samoa, whose total in both years was less than half a million: 1903, $275,000; 1913
$389,000; per cent of increase, 41.5. -
5 Dairen was not a Japanese colony in I903 and trade figures were not published until the latter part of
1907.
6 1902 and 1912.
7 Figures unavailable.
8 Not an Italian colony until 1912.
9 Bulgaria, Abyssinia, and Haiti are omitted. For Colombia, the Dominican Republic, Liberia, and
Montenegro, figures for other years than 1903 and 1913 have been used.
10 These figures are, or are based on, the totals of amounts in the third column and not the differences
between the totals of the first two columns, i. e., they show the increase only for those colonies for which
figures are available for both years, and not the increase due to territorial acquisitions.
11 The world total is the sum of the totals for the various countries; but as the same transaction is recorded
in one country as export trade and in another country as import trade, evidently the world total thus
arrived at shows approximately twice the value of the goods which actually CrOSS national frontiers.
* It is not meant to imply that the relative trade importance of colonies can be exam-
ined definitively , on the basis merely of figures of gross trade, even disregarding the
statistical difficulties encountered in making comparisons between trade returns compiled
in different countries and by varying methods. The gross values of the trade of two
colonies may be the same in a mount and yet the trade of the two be utterly different in
importance estimated by any other standard. For instance, among the criteria of impor-
tance are : Percentage of profit ; possibilities of growth ; the degree to which the products
involved supply “key ’’ industries ; the proportion in which, if any, the products consti-
tute natural monopolies. Statistics taken from a number of different countries may not
have been compiled on the same basis as to values or valuations, may not possess the
same degrees of accuracy, and may vary as to the grouping of items and the inclusion or
exclusion of Coin and bullion, government stores, and transit trade.
* This rapidity of growth reflects the newness of many of the colonies, the extension of
their railways, the establishment of plantations, and the smallness of the trade upon
which the percentage is based. The rate of progress in comparison with older countries
must therefore decrease, but it is probable that the trade of the colonies will gain in
relative importance through several decades.
INTRODUCTORY SURVEY. 19
other colonies kept pace with the tropical regions of the world.”
Secondly, the imports of the colonies consist largely of manufac-
tured articles, including prepared foodstuffs. While their trade is
less than Öne-fifth of the total international trade, they offer a mar-
ket for perhaps one-fourth of the manufactures exported by the
industrial nations. Thirdly, in like manner, the colonies supply
perhaps one-fourth of the raw materials which enter international
trade.
If tropical products alone be considered it appears that in 1913
the trade of the tropical and subtropical colonies was twice that of
the independent countries of the same latitudes.” A comparison of
the areas and populations of the independent and colonial powers
of the Tropics makes it seem probable that this predominance of the
colonies in supplying the world with tropical products will continue.
No figures have been collected to show the total trade of countries
other than the United States with the world’s colonies, but the rela-
tive importance to each of the colonial powers of the trade with its
own colonies is roughly indicated in Table 3.
TABLE 3–Importance of the Colonial Trade to the Mother Countries.
[Trade of each mother country with its own colonies in 1913 expressed as a percentage
of its total trade.” )
Per cent. Per cent.
Great Britain –––––––––––––––––––––– 34 || Spain ----- - 3.
Portugal -------------------------- 20 | United States ––––––––––––––––––––– 3
Japan----------------------------- 16 || Belgium __ - - - 1.
France -- 10 Germany ------------------------- ... 5
Netherlands ––––––––––––––––––––––– 10 l Italy----------------------------- . 5
1 The figures of the table are roughly comparable, but only roughly, for the use of per-
centages does not avoid all the difficulties involved in comparing the trade figures of
different countries. (See Bureau of Foreign and Domestic Commerce, Miscellaneous Series
No. 59, Methods of Computing Values in Foreign Trade Statistics.) The figures have not
been revised to insure uniform exclusion of government Stores and bullion. The figure for
Japan rests partly upon an estimate and in some cases colonial figures have been used
in comparison with those of the mother country.
When preferential tariff rates are extended only to goods the product of the mother
country (as distinguished from goods reexported from the mother country) figures for
the origin of the goods are probably fairly accurate. Otherwise the figures are apt to
include reexports of products of other origin. For instance, the more careful considera-
tion of the source, after Australia introduced her preferential tariff in 1907, reduced the
imports credited to Great Britain from 62 per cent to 52 per cent of the total.
TRADE of THE UNITED STATES WITH THE ColoniEs of THE WORLD.
The interest of American manufacturers and merchants in the dif-
ferential colonial tariffs has been growing rapidly. This is true
both of the import and the export trade. The statistics already pre-
sented showing the total value of colonial trade and the rapidity of
its growth suggest the potential importance of colonial markets as
an outlet for prepared foodstuffs and other manufactures, but their
immediate significance for American trade is much decreased by the
fact that so many of the colonies partially exclude it by differential
import duties. More immediately to the point are the figures of
Tables 4 to 7 which show (1) the extent to which the development of
39 The percentages shown in the table are 109 and 107. Though both figures , are aver-
ages, the degree of accuracy present in the figures is not sufficient to justify a statement
that the relative growth of colonial trade was greater than that of the independent tropi-
cal countries. -
40 Including Mexico and Brazil, but excluding China.
20 COLONIAL TARIFF POLICIES. * /
American industry has already made our manufacturers dependent
upon foreign markets for the disposal of their products and upon
foreign sources for their raw materials, (2) the growth of American
exports to and imports from the leading colonies, and (3) the growth
in our total imports from all sources of the chief commodities of
which the world derives more than half of its supplies from colonial
SOUllſ CeS.
Even before the war intervened to stimulate the process, the United
States had developed steadily as an exporter of manufactured articles
and an importer of raw materials. Table 4 shows the increasing per-
centage of raw materials in American imports since 1870.*
TABLE 4.—Average ammual values of manufactured articles easported and Of raw
materials imported, eaccluding foodstuffs, Since 1870. t

Manufactures exported.] Raw materials imported.
Period. ! - Per cent \ Per cent
Value. Of total Value. of total
exports. imports.
1870-1879------------------------------------------- $107,864,000 20.35 $74,246,000 14.50
1880–1889.----------------------------- - - - -e- - - - - - - - 150,055,000 20.06 132,740,000 19, 52
1890-1899. ------------------------------------------ 241,221,000 25. 29 185,513,000 24.50
1900–1909.------------------------------------------ 585,713,000 37. 66 357,425,000 32.86
1910-1914------------------------------------------- 995,831,000 46. 74 580,339,000 34.36
1915-1918------------------------------------------- 2,834,564,000 59.51 966,035,000 41, 77
1919-1920------------------------------------------- 3,582,278,000 47.66 | 1,696, 160,000 40. 70
1 Manufactured articles exported include both manufactures ready for consumption and those for further
use in manufacture, but the figures for raw materials imported do not include manufactures for further use
in manufacture. This latter class increased from about 9.5 per cent in 1899–1903 to 19.27 per cent in 1913 and
19.57 in 1919. During the war it fell as low as 14.17 and in 1920 it was 15.28. The figures through 1914 are
taken from the Annual Report of the Chief of the Bureau of Foreign and Domestic Commerce, 1916, page 8.
The other figures are º: from Commerce and Navigation of the United States, 1917, and from the
Monthly Summary of the Foreign Commerce of the United States, June 1920.
In bringing the table up to date, it has been arranged to show the
abnormal rate of change during the war; but the period since the war
has given no reason to expect that the steady tendency of the preced-
ing half century will be reversed.
Table 5 shows the value of the trade of the United States with
the various colonies of the world in the fiscal years 1900, 1913, and
1920. The most important colonies are shown separately and the
others are grouped in political divisions. Table 6 shows the same
figures in a more condensed form and grouped by geographic rather
than by political divisions. The tables show that in a period of
twenty years there was a tenfold increase in the value of American
imports from the world’s colonies, as 'compared to total importations
which grew 6.2 times. The exports to colonies, increased, accord-
ing to these figures, 8.8 times, while the value of total exports was
increasing only 5.8 times. Table 6 brings out the importance of
Canadian trade in the total, particularly that Canada has taken half
or more of our total exports to all colonies. As tropical products,
however, have come to form a larger percentage of our total imports,
the importance of Canada in supplying our raw materials has de-
* The figures exclude foodstuffs whether raw or partly or wholly manufactured. The
percentage of foodstuffs in American trade has considerably decreased. In 1870–79 food-
stuffs constituted 39.41 per cent of exports and 37.03 per cent of imports. In 1910–14
these percentages had decreased to 19.78 and 23.54 per cent, respectively.
INTRODUCTORY SURVEY.
21
TABLE 5.—Trade of the United States with the colonies of the world.”
[In thousands of dollars.
1900 1913 1920
Colonies. TU. S. U. S. U. S U.S. U.S. TU. S.
imports exports imports | exports imports exports
from. to. from to. from. to.
Canada--------------------------------- 39,932 | 88,872 | 120,571 || 415,449 537,377 890, 135
Newfoundland and Labrador...........]. . . . . . . . . . 2,018 1, 152 4,889 4,303 15, 138
Australia------------------------------- 5,468 26,726 10,956 43,352 56,772 85,791
New Zealand.--------------------------|----------|---------- 4, ; 1% § ; ; ; #:
South Africa.----------................. 1,039 16, 269 3,30 y J g
British India.----------................l----------|---------- 67,949 11,040 178,952 79, 143
Straits Settlements... . . . . . . . . . . . . . . . . . . 45,356 4,892 35,712 3,607 188, 283 iſ, 875
Ceylon, Malay States, Borneo, etc. .....|-----...--|--........ 12,559 462 38,405 2,045
*Bypt.--------------------------------. 8,278 2 1,096 19,908 1,661 105,872 27,230
Hongkong----------------------........ 1,256 8,486 4,020 10,431 36,825 22,512
#º::::::::::::::::: ##| ##| ##| *ś
TllllClaCl all Cl fl'Obag.0 - - - - - - - - - - - - - - - - - -
*:::::::::::::::::: 12,331 | 8,895 || '335 | 1,485 3,70i 3.33%
Bahamas, Windward, Leeward Islands. 1,624 2,920 3,349 8,298
Bermuda * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 1, 124 483 1,466 1,498 3,651
British Honduras...................... 3 198 1 616 1, ; }. ; 3. ; ; §
British Guiana......................... 795 915
#}.º.................... with º South { ; 3. § 3. § i; ;
ritish East Africa. . . . . . . . . . . . . . . . . . . . . rica.
#ºgº.º.º.º............. ;| *;| *; 2. § º # 3. §
iji, Solomon, Tonga, etc. . . . . . . . . . . . . . ,024 169 y
Total British possessions......... 121,230 | 162,744 298,305 || 538,744 1,276,940 | 1,294,739
£989 Rico.----------------------------. 3,079 4,640 | 40,539 || 33,155 || “133,293 490,724
Philippines-------------------......... 5,971 2,640 21,010 25,385 ,962 69,291
Virgin Islands.......................... 569 625 48 - s: 1, § % §
*----------------------------------|----------|----------|----------
Total U. S. possessions... . . . . . . . . 9,619 7,905 || 61,597 || 59, 510 207,769 162,706
Algeria, Tunis, Senegal, etc. ........... 657 | 601 733 4, 143 3,098 15,459
Morocco-------------------------------. Not shown. Not shown. . . . . . . . 996 , 515
Guadeloupe, Martinique, and Guiana0. 135 2,236 167 2, 127 191 8,836
French India-------------------........l... ------- 208 |---------- 485 3,402 2,087
; Oceania------------------------ 438 323 l, #: s: 3. ; 1, §
adagascar---------------------------- 10 41 y
Total French possessions......... 1,234 3,378 2,324 7,593 12,802 32,647
Dutch East Indies 7 - . . . . . . . . . . . . . . . . . . . 27,887 1, 534 6,222 3, 152 95,801 45,647
Dutch Guiana and Curaçao. . . . . . . . . . . . 1, 546 1,076 1,841 1,379 5,233 4, 592
KWantung (Dairen).................... Not shown. 722 489 15,683 9,796
Korea----------------------------------|---------. 5 1,371 241 3, 172
Azores and Madeira Islands............ 19 414 324 238 2,282 961
Portuguese Africa 8... . . . . . . . . . . . . . . . . . . 17 802 377 2,248 2,014 5,546
Canary Islands and Spanish Africa 9.... 23 239 154 1,292 189 1,743
Belgian Congo. ----.................... Not shown. |.......... 15 176 1,661
German possessions 10. . . . . . . . . . . . . . . . . . l 12 1,472 1,229 91 1, 156
Libia, Eritrea, and Somalia............ ll 174 2 13 || 9 184 217 431
Grand total.----.................. 161,750 | 178,244 || 373,436 617,444 1,619,438 | 1,564,797

* Commerce and Navigation, 1900 and 1913.
States, June, 1920.
* In 1900 exports to Tripoli (Libia) were included with exports to Egypt.
8 Malta and C
4 For 1913 an
States, respectively, have been used.
5 Figures for 1919, as reported by the Governor of Guam.
*Including St. Pierre and Miquelon. French Guiana and St. Pierre and Miquelon supplied the greater
part of the imports of 1900 and 1913 but less than one-fourth of the other items.
* The imports from the Dutch East Indies have fluctuated greatly between 1890 and 1913. The highest
figure during that period was that for 1900 and the lowest that for 1913. The average imports of the three
fiscal years 1897–1899 were 17,149,000; for 1901–1903, 16,669,000; and for the four years 1909–1912, 14,345,000.
* Including not over $4,000 in any year from or to Portuguese India.
* The Spanish possessions in Africa contribute less than 5 per cent of the totals.
19 Omitting Kiaochow... Figures for the ex-German possessions in the Pacific are not separately recorded
for 1920. Their trade with the United States in 1913 was one-sixth of the total American trade with German
possessions.
rus contribute not over 20 per cent of the total.
1920 Porto Rican figures for exports to the United States and imports from the United
11 This item is for Libia only, which was not an Italian colony in 1900.
Monthly Summary of Foreign Commerce of the United
22 COLONIAL TARIFF POLICIES.
t
TABLE 6.—Summary of the trade Uetºſ:667, the United States and the 1907'ld’s
Colomies, 1900, 1913, and 1920. - -
[In millions of dollars.]]

1900 1913
Imports. Exports. Imports. Exports.
Colonies. t
Por Per | Per Per
Value. cent of Value. cent of | Value. cent of Value. cent of
total. total. total. total.
Canada. . . . . . . . . . . . . . . . . . ... ------ 39.9 4.70 | 88.9 6.38 | 120.6 | 6.65 || 415.4 | 16.85
Other British Dominions......... 6. 5 .77 45. 0 3.23 19.8 1. 09 71.8 2.91
Total Dominions. . . . . . . . . . . . 46.4 5.47 133.9 9. 61 140.4 7. 74 487.2 19.76
India ----------------------------- 67. 9 3. 75 11.0 .44
Ceylon, Straits Settlements, Malay 45.4 5. 34 4.9 . 35
tates, etc. --------------------- 48. 3 2. 66 4. 1 . 16
Dutch East Indies. . . . . . . . . . . . . . . . 27. 9 3. 28 1.5 . 11 6. 2 . 34 3.2 . 13
Hongkong, Dairen, and Korea . . . . 1. 3 . 15 8, 6 . 62 4.7 . 26 12. 3 . 51
Total Asiatic colonies, exclud-
ing Philippine Islands. . . . . 74.6 8. 77 15. 0 1. OS 127. 1 7, 01 30. 6 1. 24
Pt ---------------------------- 8. 3 . 97 1. 1 . 08 19.9 1. 10 1. 7 . 07
British West Africa -------........l........l........l.........l........ ... 4 . 02 3.3 . 13
French Africa. . . . . . . . . . . . . . . . . . . . . 7 08 6 04 7 . 04 4. 1 . 18
Madagascar, French India, and -
Oceania------------------....... ... 4 . 05 .. 5 . 04 | 1.4 . 08 1. 3 . 05
Italian, German, Belgian, Spanish, .* *
and Portuguese colonies. . . . . . . . . 2 . 03 1.5 . 11 2.4 . 13 5. 2 . 21
British, French, and Dutch West
Indies---------------------...--- 18.0 2. 12 15.9 1. 14 16.8 .93 21. 1 . 85
British East Africa, Malta, Aden, e
and British Oceania. . . . . . . . . . . . 3. 6 . 42 I. 8 . 13 2.6 . 14 3.4 . 14
Total foreign colonies, ex- *
cluding Dominions. . . . . . . 105.8 || > 12. 44 36.4 2.62 171.3 9.45 70. 7 2.87
United States possessions. . . . . . . . . 9. 6 1. 13 7. 9 . 57 61. 6 3. 40 59.5 2.41
Total all colonies. . . . . . . . . . . . 16.1. 8 || 19.04 178. 2 | 12. 80 373. 3 20.59 617.4 25. 04
Total from all sources. . . . . . . 849. 9 | . . . . . . . . 1,394.5 |. . . . . . . . 1,813. 0 |... . . . . . 2,465.9 |........
1920
• Imports. Exports.
Colonies.
* Per Per
Value. cent of Value. cent of
total. total.
Canada.----------------------------------------------------------- 537.4 10.26 | 890.1 | 10.97
Other British Dominions ....... ----------......................... 115.9 2, 21 183.4 2. 26
Total Dominions. . . . . . . . ------------------------------------- 653. 3 12.47 | 1,073.5 13. 23
India-------------------------------------------------------------- 179. 0 3.41 79. 1 .98
Ceylon, Straits Settlements, Malay States, etc. . . . . . . . . . . . . . . . . . . . . . 226. 7 4, 33 16.9 . 21
Dutch East Indies. ------------------------------------------------ 95. 8 1.83 45.6 . 56
Hongkong, Dairen, and Korea. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.7 1.01 35. 5 . 44
Total Asiatic colonies, excluding Philippine Islands. . . . . . . . . 554.2 || 10.58 177. 1 2, 19
*śypt ------------------------------------------------------------ 105.9 2.02 27.2 . 34
British West Africa ------------------------------------------------ 31. . 59 19, 2 . 24
French Africa...................................... ---------------- 4. 1 . 08 20. 0 . 25
Madagascar, French India, and Oceania. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5 . 16 3. 8 .05
Italian, German, Belgian, Spanish, and Portuguese colonies. . . . . . . . 5. 0 . 00 11.5 . 14
British, French, and Dutch West Indies. . . . . . . . . . . . . . . . . . . . . . . . . . . 35. 3 . 67 62. 7 . 76
British East Africa, Malta, Aden, and British Oceania. . . . . . . . . . . . . 14.3 . 27 6.9 . 09
Total foreign colonies, excluding Dominions ............. . . . . 758.4 14. 46 328, 4 4.06
United States possessions............................ !------------- 207. S 3. 97 162. 7 2. 01
Total all colonies--------------------------------------------- 1,619.5 30.90 | 1,564. 6 19. 30
Total from all sources. . . . . . . . . . . . . . . . . . ---------------------- 5, 238.6 |. . . . . . . . 18, 111.0 . . . . . . . .
1 The percentages were calculated from figures extending to the nearest thousand.
INTRODUCTORY SURVEY. - 23
creased; and it may be noted also that Canada accounts for the whole
decrease in the percentage of American exports to colonies in 1920
as compared to 1913.
American statistics are no exception to the rule that figures for
the destination of exports and the origin of imports lack accuracy,
especially in relation to the more distant and smaller colonies. This
is due to the lack or inadequacy of means of direct consignment
and transportation. As trade grows, however, direct communication
is established with a greater number of colonial ports and the trade
is recorded with a greater approximation to completeness, according
to its real origin or destination.
The degree of accuracy of the figures for imports from the colonies
can be checked roughly by the figures for the total imports of those
articles which are derived most largely from the colonies. Thus,
Selecting rubber, tin, Egyptian cotton, cócoa, and tea as articles pro-
duced in distant colonies, it is found that the imports of these five
articles from Europe and from Canada were valued in 1900, 1913,
and 1920, respectively, at $23,000,000, $87,600,000, and $103,300,000;
that is, these items, if they might be regarded as derived altogether
from colonial sources, would add 14 per cent, 23 per cent, and 6.4 per
cent, respectively, to the recorded totals of imports from colonial
Sources. These percentages are certainly not excessive, for though
some parts of the importations of the articles named were doubtless
derived from noncolonial Sources, only a small number of the co-
lonial products have been included in the computation. An exhaus-
tive tabulation would probably show that our total trade with the
colonies as recorded in Tables 5 and 6 should be increased by, say, 20,
30, and 10 per cent, respectively, for the three years. These correc-
tions magnify the importance of colonial trade, but reduce the rate
of its growth since 1900. In like manner the figures for exports from
the United States to colonial markets should be increased to account
for the American manufactures reshipped from European and other
entrepots to the colonies.** -
If the colonies of other powers be divided into three groups—the
open-door colonies, the British Dominions, and the dependent col-
onies enforcing discriminatory duties”—it can be seen at once that
the trade of the United States with either of the first two groups
greatly exceeds that with its own colonies. The possibility of the
growth of this trade is also much greater, for American merchants
already have most of the trade of Porto Rico and the Philippine
Islands, so that American trade with them can grow only as the
total trade of these islands continues to develop; but if American
merchants continue to have approximately an equal chance in India,
Egypt, the Straits Settlements, the Dutch East Indies, Morocco, and
the minor open-door colonies, they may well expect to expand their
trade in a much higher ratio than that of the general development of
the commerce of those countries. With the third group of colonies,
which includes the British West Indies and most of the French,
** On the other hand, corrections might be made in the figures to exclude goods imported
into the United States for shipment to Canada, Canadian goods exported by way of the
|United States, and trade with independent countries through such colonial entrepots as
Aden, EIongkong, and Dairen, In 1915 nearly 16 per cent of Canadian exports went
through the United States, but in 1919 only 12 per cent. (Times Trade Supplement, Apr.
10, 1920, p. 84.) -
* See list on pp. 36–37.
24 COLONIAL TARIFF POLICIES.
Spanish, Italian, and Japanese colonies, the amount of the present
American trade is given in the available statistics “ as much less
than that with the American colonies. The published figures are,
however, as already explained, incomplete and it is certain that the
large territories and populations involved, if the great handicap on
American trade could be removed, would offer to it a greater market
than the American colonies now afford or will be able to afford in the
future. - - * - *
In comparing prewar and postwar values the great rise in prices
must be constantly borne in mind. For this reason the percentages
of Table 6, which show the development of our trade with the col-
onies in relation to our total trade, are more significant than are the
total values. For the same reason it is desirable to examine more
closely the demand of the United States for typical colonial prod-
ucts, since in dealing with commodities singly the quantities as well
as the values may be compared. t
Table 7 shows the quantities and values of the imports into the
United States in the fiscal years 1900, 1913, and 1920, of the princi-
pal articles of which more than one-half of the world’s supply is de-
rived from colonial sources.” The table shows that the importation
of these typical colonial products increased from 14.8 per cent of the
total imports in 1900 to 19.6 per cent in 1913, and to 22.4 per cent
in 1920.
A comparison of the quantities imported shows that the demand
for every article on the list was greater in 1913 than in 1900, and with
four minor exceptions, greater in 1920 than in 1913.” In most cases
the increases are very large. Taking those articles in the table whose
weight is expressed in pounds and for which the weights are avail-
able for all three years, the total quantity imported is found to have
increased, in millions of pounds, from 975 in 1900 to 1,505 in 1913,
and to 2,945 in 1920–that is, the importation of 1920 was three times
as great as in 1900 and practically twice as great as in 1913. The
value of the imports listed in Table 7 was three times as great in
1920 as in 1913. In normal times this would be a striking increase,
but in view of the doubling of the quantities imported and in view
of the general rise of world prices the mere trebling of the total
value of the articles listed undoubtedly minimizes the importance of
"colonial trade. The relatively small increase in value may be seen
from the table to be due to the great fall in the price of rubber 47 and
to the relatively small increase in the price of certain other com-
modities. -
* The figures are not given separately for Formosa and for some other colonies of this
roup, but it would appear that our total trade with these colonies was in 1919 about
$85,000,000 and in 1920 about $110,000,000, including in the list of colonies Cyprus and
those of the British West Indies whose adoption of a preferential tariff came after the
end of the fiscal year 1920.
* In the case of wool alone an article has been included of which the colonies produce
less than one-half of the world's production ; they produce, however, considerably more
than one-half of the wool which passes in international trade.
48 The decreases are in coconut oil, manganese ore, graphite, and hemp. The decrease
in coconut oil is much more than offset by the increase in copra ; the decrease in man-
ganese ore was due to oversupplies on hand at the end of the War.
47 The great fall in price was due to oversupply, caused by the rapid development of
plantations in Malaya. The planters allege that the present price is considerably less
than the cost of production and they are arranging to curtail production for the current
year (1921) by as much as 50 per cent.
INTRODUCTORY SURVEY. 25
TABLE 7–Imports into the United States of principal articles of which more
than one-half of the world's Supply is derived from colonies.”
[Values in millions (and tenths) of dollars and quantities in millions of pounds or other units.)

! Avorage values in
1900 - 1913 1920 cents per pound.
Article. Unit. -
Qººl value. ºn value. ºn- value. 1900 | 1913 | 1920
tity. | tity. tity. - t º
Rubber 2............ Pounds. . . . 49.4 31.4 || 113.4 90. 2 | 632. 4 274, 2 | 64, 0 || 79, 0 || 43.0
Wool. . . . . . . . . . . . . . . ...do. ----- 155.9 20, 3 || 195.3 35.6 || 427. 6 212.8 || 13. 0 | 18. 0 || 50.0
Long-staple cotton..]...do. . . . . . 67. 4 8. () | 121.9 23. 0 || 345.3 156.9 || 12. 0 | 18. 0 || 45.0
Goatskins . . . . . . . . . . ---do------ 82. 0 22. 0 || 96.3 24. 8 || 127. 0 121. 5 || 27. 0 || 26. 0 || 96.0
Tin----------------- ...do------ 70. 2 19. 1 || 1 14.7 53. 1 || 131. 1 73.6 27.0 46. 0 || 56.0
Tin ore... ----------| Tons. . . . . . § (a) • (a) (a) ... 3 19.2 --------------------
Diamonds. . . . . . . . . . Carats..... b) 11.8 (b) 39.6 ... 7 89.0 -------|-------|------
Cocoa--------------- Pounds. . . 41.7 5. 7 || 140. 0 17. 4 || 420.3 72.9 13. 0 | 12. 0 || 17.0
Coconut products: *
Copra. ---------- ...do------ 0.0 0. 0 || 40. 9 2. 0 || 258. 2 21.4 ------- 5. 0 8. 3
Coconuts........ Number. . ] (b) .6 (b) 1.8 | 89.2 4.8 --------------|------
Coconut oil...... Pounds (c) (c) 50. 5 4. 2 || 21. S 2.3 |....... 8. 3 | 10. 0
Tea----------------- -do. ----- 84.8 10, 6 94.8 17. 4 || 98.3 25.8 || 12. 0 | 18, 0 || 26.0
Shellac. . . . . . . . . . . . . . ...do------ 10, 6 1.4 21.9 3. () || 34.2 22. 2 | 13. 0 || 14. 0 || 65.0
Manila (hemp)3. . . . . --do------ 95. 5 7, 2 | 165. 4 12.6 172. 4 20.4 7. 5 7. 6 || 12.0
pices--------------- --do------ 38. 8 3. 4 || 58.4 5. 7 || 73.0 13.3 8.8 9.7 | 18. 0
Jute, raw 3. . . . . . . . . . --do. ----- 230. 0 4. 0 || 280. 9 9, 3 || 172.9 9. 7 1. 7 3.3 5. 6
Asbestos ". . . . . . . . . . . ...do. ----- (b) . 3 | 184. 6 1.8 275. 1 8. 1 |------- 1.0 2.9
Manganese Ore...... Tons. . . . . . 2.7 ... 4 2, 2 ... 3 & 1 -------|-------|------
Kapok ". . . . . . . . . . . . . Pounds (c) (c) 5.6 . 8 || 35.9 5.9 |-----.. 14. 0 | 16.0
Qamphor............ ...do------ 1.8 . 5 ; .3, 7 1. 0 4. 0 5, 6 27. 0 || 27. 0 || 139.0
Ostrich feathers. . . . . --do - - - - - - (c) (c) (b) 6. 3 ... 3 2.5 -------|-------|------
Vanilla beans....... do. . . . . . 1. 2 1. 0 2.6 1. 1 2.4 || 472. 0 || 252. 0 | 209.0
Graphite ”.......... do. . . . . . 46. 1 2. 3 || 56.5 2. 0 || 46.9 2. 3 5.1 3.5 5. 0
Total:--------|-----------|------- 152.2 ------- 356. 2 ....... 1, 174.9 |-------|-------|------
Grand total imports, ..
merchandise . . . . . . • * * * * * * * * * * I - - - * * * * 1,025. 7 |....... 1, 813.0 |....... 5,238.6 |-------|-------|-----.
Per cent of grand
total.--------------|------------|------- 14.8 ||------. 19.6 |....... 22, 4 |-------|-------------
1 Commerce and Navigation, 1900 and 1913; Monthly Summary of Foreign Commerce of the United
States, June, 1920. The figures are those of general imports for fiscal years ending June 30. In giving
values per pound fractions of a cent have been omitted where the value exceeded 10 cents.
2 Including balata, guayule gum, gutta jelutong, and gutta percha, valued at $5,161,000 in 1920.
3 To obtain figures from which five digits could be dropped and to facilitate comparisons tons have been
changed to pounds for the items indicated.
a None imported. Tin ore was first smelted in the United States during the war (see p. —). Note that
these figures are for total imports, regardless of source. For instance, all the tin ore comes from Bolivia,
as the most important colonial sources are closed to the United States.
b Quantities not given in returns.
c Included in other vegetable oils, fibers, or feathers. *
If a calculation be made of the value of the imports in 1920 on
the basis of the prices of 1913, a figure of $856,000,000 is obtained as
a total for the articles whose value per pound is given in the table
for the two years, as compared with an actual value in 1920 of
$1,051,000,000 *—that is, the increase in the total due to the higher
prices of 1920 is only 23 per cent, a percentage far below that of the
rise of world prices generally—and it follows, therefore, that the
increase in the percentage of the total merchandise imported from
19.6 per cent in 1913 to 22.4 per cent in 1920 is not a full measure
of the increased importance of these colonial products in the trade
of the United States.
—r
* I. e., omitting tin ore, diamonds, coconuts, manganese ore, and ostrich feathers.
\
/
26 COLONIAL TARIFF POLICIES.
5. TREATIES AND OTHER INTERNATIONAL ARRANGEMENTS IM-
POSING LIMITATIONS IN REGARD TO COLONIAL TARIFFS.
The various international obligations which affect or have in re-
cent times affected the tariffs of colonies may be discussed in three
groups according to their objects:
(1) Open-door treaties.—The so-called “open-door ’’ treaties and
agreements guarantee equality of tariff treatment, and, generally,
equality in other commercial matters, as between nationals and for-
eigners and between national and foreign products. They may be
either treaties between two or three powers or general international
treaties, and they may be either limited or unlimited in respect to
time. The pledges given may be unilateral, bilateral, or multilateral;
and the treaties may be between two or several or a considerable
number of states. With these may be associated unilateral pledges,
not in treaty form, to maintain the open door for certain periods of
time in certain possessions. - .
(2) Rate-limiting treaties.—Certain treaties fix maximum, mini-
mum, or uniform rates for the tariffs of two or more colonies or on
one or more articles for a larger group of colonies. With these may
be discussed certain treaties which limit to fixed maxima the tariffs of
certain more or less independent states.
(3) Commercial treaties of ordinary types.—Commercial treaties
or treaties of “commerce and navigation ” or of “friendship, com-
merce, and navigation ” are entered into generally by all the com-
mercial powers. Before the war they usually contained the most-
favored-nation clause. These treaties, however, by no means always
include the colonies, and when the colonies are mentioned the same
provisions do not always apply to them as to the mother countries;
also, unless there is a special stipulation to that effect, the most-fav-
ored-nation clause does not apply to special relations between colonies
and mother countries.**
The most important treaties affecting the tariffs of colonies are as
follows: -
1. OPEN-DOOR AGREEMENTS AND PILEDGES.
By the general act of the Conference of Berlin (1885) the Eu-
ropean powers established in Central Africa,” “the conventional
basin of the Congo,” in which there was to be freedom of navigation,
freedom from transit duties and commercial equality generally. Ex-
port duties were not restricted in amount, but import duties were
prohibited.” A modification made in 1890 allowed a general import
rate as high as 10 per cent ad valorem at the port of entry, and higher
rates on alcohol and alcoholic beverages, to which in 1910 were added.
arms and munitions. The United States took a leading part at the
conference, but did not ratify the treaty. A revision of this treaty
(and of the Brussels treaties relating to the traffic in alcohol and
arms) was contemplated in the framing of the treaties of peace by
40 For full discussion of most-favored-nation clauses, see the Tariff Commission's report
on Reciprocity and Commercial Treaties, pp. 389–510 ; see also Hornbeck, S. I.C., The Most-
Favored-Nation Clause in Commercial Treaties, 1910. -
50 See map on p. —. -
51. For further information concerning this treaty, See Chapter II, p. —.
INTRODUCTORY SURVEY. 27
which Germany, Austria, and Turkey undertook to accept any such
revisions which should be agreed upon by some or all of the powers.
Such revisions were signed by several powers on September 10, 1919,
but have not yet been ratified. The revision of the general act of
Berlin provides for the continuance of the open door, but removes
the limitation of ten per cent as a maximum rate of import duty. (See
p. —.) The act of the Algeciras Conference of 1906 and the later
treaties in regard to Morocco not only provided for the open door
in the French and Spanish spheres and in the international zone at
Tangier, but prescribed also a new maximum tariff rate. These
treaties are valid without limitation of time.
Other treaties or less formal agreements pledging the open door,
in wider or narrower terms,” have also been made without time lim-
itations—notably the notes exchanged in 1885 between Great Britain
and Germany relative to their colonies in the Gulf of Guinea (Kame-
run, Togo, Nigeria, and the Gold Coast); the Anglo-German decla-
rations of 1886 in regard to a great area of Oceania ; the notes relating
to spheres of influence and territorial acquisition in China which
were exchanged by the powers in 1899 at the instance of Secretary
Hay; the Anglo-German-American treaty of December 2, 1899, di-
viding the Samoan Islands; and the Anglo-French treaty of 1906
for a condominium in the New Hebrides. The open door was thus
pledged for the greater part of the new colonial acquisitions after
1880, including all the §º colonies except Southwest Africa.
These pledges were given at the time of the acquisition of the terri-
tory or very soon thereafter.”
Other open-door pledges have been made for a limited time. Thus
the Anglo-French treaty of 1898–1899 guarantees for thirty years the
maintenance of an open door in Dahomey, the Ivöry Coast, the Gold
Coast, Nigeria, and all the territory south and east of Lake Chad
to 5° north and to the River Nile.” The United States maintained
the open door in the Philippine Islands in accordance with the treaty
with Spain ** for ten years from the date of ratification (April 11,
1899); and Japan likewise, after the annexation of Korea in 1910,
52 These bilateral agreements or exchanges of notes generally pledged the open door
specifically only for the countries concerned, but Great Britain in some cases gratuitously
made the pledge applicable to the commerce of other countries than the one with which
the agreement was being made. In all cases, however, these pledges were followed by an
open-door régime in which all countries participated, regardless of whether or not their
commercial treaties entitled them to most-favored-nation treatment in the colonies of the
powers which were, parties to open-door agreements. The status of these agreements, in
so far as Germany was a party to them, is now in some doubt, since by the treaty of
Versailles Germany has renounced all her rights under the Anglo-German-American treaty
of 1899 relative to Samoa and has accepted a clause by which all her bilateral conven-
tions with any of the allied and associated powers have lapsed except such as the said
power gives notice of its desire to maintain. No notice has been given of the desire of
france or Great Britain to revive any of these open-door agreements, and perhaps,
therefore, the British pledges made to all the World but embodied only in the agreements
with Germany have now lapsed.
53 The longest time which elapsed was in the case of the Fiji Islands, which were put
under British protection in 1874 and included in the declarations exchanged with Ger-
many in 1886. The chief territories acquired in this period for, which, there were, no
open-door pledges were Indo-China, Burma, the Malay States, Italian Eritrea and Libia,
and the French extensions of territory in North Africa and Senegal.
54 See p. —. The line of 5° north latitude was the limit of the conventional basin of
the Congo, so that this treaty, added to the open-door territory the territories between
the geographical basin of the Congo and Lake Chad. - * . e
55 The negotiators in behalf of the United States declared that it was the policy of the
TJnited States to maintain the open door ; the treaty guaranteed only to Spanish trade the
same treatment as was accorded to American trade.
48748°–21 3
28 COLONIAL TARIFF POLICIES.
pledged the open door and the maintenance of the previous Korean
tariff for a period of ten years.
2. TREATIES LIMITING RATES.
Several agreements for uniform tariff schedules for certain colo-
nies have expired, namely, for Dahomey and Togo (1887); for Togo
and the part of the Gold Coast east of the River Volta (1894–1904);
that for the Congo, French Congo, and Portuguese Congo (1892–
1910); and for British and German East Africa and Italian Somalia
(1892–1905). The three Brussels' treaties of 1890, 1899, and 1906
prescribed minimum rates of duty upon alcoholic beverages through-
out all the territory in Africa between 22° south and 20° north,
including parts or all of over a score of colonies belonging to seven
different powers. In 1919 a revision of this treaty was signed at
Saint-Germain-en-Laye and an even larger territory was made sub-
ject to its provision.” The four agreements named successively
higher rates as the minimum, concluding with 800 francs per hecto-
liter of pure alcohol."
Somewhat different are the treaties by which the states of north-
ern Africa and Southern Asia, from Morocco to China, have agreed
to limit their tariff rates to certain maxima. These provisions, to-
gether with the pledge to give most-favored-nation treatment to the
various powers, are of importance in cases where parts of these ter-
ritories fall into the possession of colonial powers. The open door
was guaranteed in this manner in Tunis at the time of the establish-
ing of the French protectorate, and it was not until 1898 that the
French obtained relatively a free hand there.” In the same way for
decades before the conference of Algeciras the treaties of Morocco
with various powers entitled them to a limitation of import duties to
10 per cent and to equality of treatment in Morocco. In Egypt the
general rate of 8 per cent established under the Turkish régime is
still maintained. Similarly, in parts of China “leased '' by the vari-
ous powers the tariffs are limited, at least for a certain period, by the
restrictions imposed long since by treaty in respect to the tariff of
China. If Turkey and Persia fall under the sway of European
powers, it may be expected, on the basis of their treaties with other
countries, that the open door will be maintained.
50 This treaty, has not been generally ratified. (See p. —.) The status of the Brussels
treaty after 1916 was not clear. The conventions of 1899 and 1906 were sºlº
acts subsidiary to the treaty of 1890 and contain little else than revisions of the minimum
rate. The convention of 1906 was to be in effect for ten years, but its intent is clearly
that after the expiration of that period the rate should be reconsidered and not that the
treaty should lapse. In any event after the end of the prescribed ten years the colonial
powers continued to increase rather than decrease the duties upon alcoholic beverages
through their African colonies. -
57 The object is to hinder the sale to the natives. The Brussels conferences also recom-
mended the prohibition of the sale of liquor to natives in areas where they had not already
become accustomed to its use. This recommendation has been put in force through large
areas both within and without the limits to which the treaty applies. By the Brussels
treaties and certain others limitations upon the sale of arms to the natives have also
been agreed upon.
tº And not until 1919 did they denounce the treaty which contained the last restriction,
which in practice operated somewhat in the same way as an open-door provision—the
limitation to 5 per cent ad valorem of the rate on cotton textiles from the British Empire.
As in similar cases noted above, this rate Was applied to foreign cottons generally.
INTRODUCTORY SURVEY. - 29
3. GENERAL COMMERCIAL TREATIES.
The treaties of commerce and navigation which regulate the in-
tercourse of nations may be divided into four classes in respect of
their inclusion or exclusion of provisions relating to the colonies.
(1) Many commercial treaties, even when both contracting parties
are colonial powers, make no reference to the colonies, or mention
them only to exclude them from the scope of the convention. To
this class belong some of the French treaties and most of those of the
United States (which has concluded only four general commercial
treaties since the acquisition of the Philippines and Porto Rico), and
of Germany, Spain, Italy, and Belgium (whose colony was acquired
in 1908). . . -
(2) Other commercial treaties make a sweeping inclusion of the
colonies, in some cases by using such expressions as “throughout
their territories and possessions.” Some of the oldest British treat-
ies belong to this class. The French tariff law of 1892 granted the
right to the minimum tariff in the assimilated colonies to all coun-
tries which by treaty were entitled to that tariff in France, so that a
group of French treaties which did not specifically mention the col-
onies were of practical effect in them. (These French treaties have
been denounced.) Some treaties, for instance the Spanish-American
treaty of 1902,” contain stipulations relative to customs duties, ton-
nage dues, and treatment of vessels in the ports of the countries
making the agreement, but in other clauses of the same treaty re-
lating, e. g., to rights of residence, either, use such expressions as
“throughout all parts of the territories,” or “in the States, terri-
tories, and dominions.”
(3) Other treaties again provide either that some or all of the
colonies of one of the powers concerned may withdraw from the
convention, or, where the colonies had not originally been included
within its scope, that they might become parties thereto, and in some
cases that they might thereafter separately withdraw. Most of the
British treaties made since 1881 contain one or other of these pro-
visions. Some of these treaties provide that the British colonies
even without adhering to the treaty shall continue to enjoy most-
favored-nation treatment in the ports of the other contracting party
so long as the colonies continue to grant most-favored-nation treat-
ment. A few of the French treaties also provide that the provisions
of the treaty should become applicable to such colonies as the French
Government may designate. -
(4) A few commercial treaties mention the colonies for the pur-
pose of making special provisions for them. . The majority of the
Portuguese treaties provide that colonial products reexported from
the mother country shall receive the same treatment as Portuguese
products. The treaty with France, however, limited " this conces-
sion to the products of certain colonies. The treaty between Por-
tugal and Italy provides for most-favored-nation treatment of the
products of the colonies of one country in the market of the other
country, but explicitly withholds the like right in regard to the
59 Malloy : Treaties, Conventions, [etc..] of the United States, vol. 2, p. 1701.
* The treaty has been denounced.
}
30 COLONIAL TARIFF POLICIES.
colonial markets. The treaty between Italy and Egypt excludes
Eritrea from its provisions. In its reciprocity treaty with the
United States, Cuba explicitly withholds any preferential reduc-
tion of duty upon American tobacco and that of the American insu-
lar possessions. Several treaties made by Great Britain and the
Netherlands in the first half of the nineteenth century contain various
special provisions in regard to trade with their colonies, most of
them more restrictive than the policies now in force. -
With the general commercial treaties may be considered certain
special treaties or agreements made by the mother countries, or by
accredited representatives in the colonies, on behalf of one or more
colonies. Such are various treaties made on behalf of India or
Egypt. Earlier illustrations—of agreements which have now ex-
pired—were the reciprocity arrangements between the United States
and Spanish or British colonies in the West Indies; the treaties pro-
viding for free trade between Togo and its neighbors, that regulating
the intercourse of Eritrea and Egypt,” and a group of Franco-
British treaties made on behalf of various British colonies. Some of
these treaties, it will be seen, concerned intercolonial relations exclu-
sively. Conventions of this description which are still in force are
the Mozambique-Transvaal arrangement and the numerous inter-
colonial reciprocity agreements to which the British Dominions and
the British West Indies are parties.
The treaties which by their terms regulate trade with the colonies
deal with the treatment to be accorded (1) in one country to the
products of the colonies of the other or (1a) to such products when
reexported from the mother country, or (2) in the colonies of one
country to the products of the other country, or (3) in the colonies
of one country to the products of the colonies of the other. The
general treaties of commerce of most of the colonial powers deal
chiefly with (1); those of Portugal generally include (1—a); the
French treaties recently terminated either explicitly or by construc-
tion belonged under (2), and some of the more recent treaties of Japan
(e. g., the treaty of 1911 with the United sº include (2) and
(3). The French legislation * by which certain American products
have enjoyed in France the minimum or intermediate tariff rates,
extends the same treatment to products of Porto Rico. On the whole
the commercial treaties of the colonial powers deal much more with
the customs and tonnage duties and other commercial regulations to
be enforced in national ports and markets by the citizens and the
products, both of a given foreign country and of its colonies, than
- they do with the similar rights to be enjoyed in the colonies.
The content of the commercial treaties in so far as they regulate
the import trade of the colonies does not differ markedly from the
content as applicable to the mother country. The most-favored-
nation clause is found in a large part of them in connection with the
customs duties, tonnage, and other navigation dues, and a wide range
of provisions in regard to commerce, residence, taxation and prop-
erty. When the treaty deals with the colonial markets separately
* This treaty is being continued temporarily in force. &
* This legislation was the result of negotiations carried on in 1910, which were never
published as a definite international agreement. -
INTRODUCTORY SURVEY. - 31
the clause usually reads: “the most-favored foreign nation,” mak-
ing it clear that special treatment, e. g., preferential tariffs, may be
accorded to the mother country. But even when the word foreign
is not inserted, the most-favored-nation clause is interpreted in the
same way, and the general commercial treaties now in force between
the colonial powers do not accord the open door in the colonial mar-
kets. Open-door provisions are confined to (1) commercial treaties
made by states formerly independent but now protectorates,” or (2)
political treaties between the powers—peace treaties or those making
settlement of territorial questions.” The general commercial treaties
usually reserve the coasting trade of the mother country to national
vessels, and in case the treaty deals with the subject, the coasting
trade of the colonies is usually likewise restricted to national vessels;
but a few treaties stipulate that a part or all of the intercolonial trade
and that between the mother country and the colonies shall remain
open to foreign vessels.
6. FEATURES OF COLONIAL TARIFF POLICIES-SUMMARY.
A. POLITICAL.
In considering colonial tariff policies, the first and most funda-
mental distinction of which account must be taken is of a political
rather than of an economic character: It is based on the difference
in location of the tariff making authority. This authority lies
primarily either with the home government or with the administra-
tion of the colonies individually. Complete fiscal control has been
granted only to the self-governing Dominions of the British Empire.
That the British self-governing Dominions at present all impose pro-
tective duties and grant preferential rates" to a part or to all of the
British Empire is significant but incidental: The fundamental fact
is that they are free to determine their own tariff policies; in regard
to them Great Britain can be said to have had in recent decades only
a negative tariff policy.”
In respect to all the other British colonies and to all the colonies
of other powers, tariff policies are in greater or less degrees subject
to the control of the home governments. Not alone the policy, but
even the rates, may be prescribed by the national legislative assembly
(assimilated colonies); or by royal decree (Spanish colonies); or
they may be determined locally subject to vetoes (Philippines, some
British Crown colonies); or subject to general restrictions, such as
that the preference to the home country shall not be less than a cer-
tain amount (Portuguese colonies, charter of Rhodesia) or subject
* Or they are renewals or revisions of such treaties made after the establishment of
the protectorate, e.g., the treaties of Egypt and those relating to Morocco. Compare
the treaty, United States-Tonga, denounced in 1920 by Great Britain, which now holds a
protectorate over that group. -
* The treaty of Berlin, 1885, was officially unrelated to territorial questions, but never-
theless the connection was intimate. The treaty of 1904, which provided for freedom of
transit across certain British and French colonies into Egypt and Morocco, respectively,
Was part of the general settlement of all outstanding questions which inaugurated the
67ttente Cordiale between Great Britain and France.
* Except Newfoundland.
* The policy has been not to interfere further than to see to it that the Dominions
observed Such most-favored-nation treaties as were binding upon them as part of the
Empire, and that they did not discriminate against the United Kingdom ; and further, the
policy Was, until 1919. to grant no preferential rates to colonial products.
32 COLONIAT, TARIFF POLICIES.
to restrictions imposed upon the mother country by treaty pledges;
or they may be promulgated by a governor who is subject to orders
from the colonial office (Italian colonies and many of the British
Crown colonies).
* B. ECONOMIC.
In recent decades conflicts of public opinion over tariff policies
have dealt almost exclusively with the range and the rates of import
duties—the question of adopting protection or of increasing or de-
creasing its extent. In this respect, as in others, the British self-
governing Dominions have shown their resemblance to independent
nations rather than to dependencies. But in these Dominions and
in Great Britain for the last score of years a second question—though
it was frequently rather another phase of the same question—has
divided the attention of those who concerned themselves with tariff
policies, namely, the question of the extent to which and the condi-
tions under which preferential rates should be granted to the prod-
ucts of other portions of the empire. The center of the controversy
has been the tariff relations between Great Britain and the Domin-
ions; and as both mother country and the Dominions have consist-
ently refused to consider their tariff relations a matter for bar-
gaining,” the discussion in each territory has dealt simply with the
import duties to be imposed in its jurisdiction. In the Dominions
and Great Britain, as in other mother countries, the tariff policy
relative to the dependent colonies has received comparatively little
attention; it has been the affair of legislative committees, of the
colonial ministry, and of colonial Societies, rather than of public
opinion. *
While metropolitan (national) tariff policies deal almost exclu-
sively with the range and rates of import duty, colonial tariff poli-
cies must give consideration to : First, the import duties imposed in
the colonies; second, the export duties commonly employed in the
colonies; and, third, the duties, if any, imposed on colonial products
in the home market. Minor features, important in some cases, are
the duties on intercolonial trade, transit duties, shipping restrictions,
and additional or supplementary duties such as Octrois and municipal
taxes. The French ootrois de mer and other consumption duties are
relatively important, and considerable attention will be given them
in the chapter of this report which deals with the Colonial Tariff
Policy of France. The scope of this report does not require attention
to municipal taxes collected in single ports or to pilotage and other
minor fees, but in a number of places, these have been referred to
in so far as they contain preferential features. Transportation re-
strictions directly connected with tariffs, such as the limitation of
preferential rates to merchandise transported in national ships or
to goods transported directly have, of course, been given attention.
TYPES OF COLONIAL TARIFE POLICIES.
Current practices disclose the prevalence of three types of tariff
policy: The policy of tariff assimilation, the policy of preferential
* This is not true of the relations of the Dominions among themselves.
INTRODUCTORY SURVEY. 33
tariff treatment without tariff assimilation, and the policy of the
“open door.” These may be distinguished primarily according to
the treatment accorded to national as compared with or contrasted
with foreign products seeking to enter the colonial market. At a
later point all the various elements of the colonial tariff policies
will be taken up more in detail under headings respectively appro-
priate. (See pp. 43–70.) º
(1) Policy of tariff assimilation.—When the rates of duty of the
tariff of the mother country are enforced also in the colony, the trade
between these two units being free; that is, where mother country
and colony form essentially a customs union, the tariff policy which
prevails is that of assimilation. Typical instances appear in the
Fº of France, in that of the United States in reference to
orto Rico, and in that of Japan in Formosa. In the tariffs of
these countries the schedules of duties are framed primarily for the
purpose of protecting the domestic manufacturer in the home market;
and these schedules are extended to the colonies for the purpose of
holding the colonial market for the producers of the mother country.
Conditions in the colonies may be utterly different from those in the
mother country, but colonial interests have little or no direct rep-
resentation in the national legislatures and the cover of the blanket
of protection is not apt to be extended to them. In some cases, how-
ever, the national legislature imposes duties for the special benefit
of colonial products. Such, for instance, is the French duty on rice.”
Free entry of national products into the market of the colony has
its logical concomitant in free entry of colonial products into the
mother country. This reciprocal favor granted by the mother coun-
try is, however, not ordinarily an equivalent favor. Colonial prod-
ucts are chiefly raw materials, and raw materials usually enter im-
porting countries free or at low rates of duty. Hence colonial prod-
ucts usually meet small barriers or none in foreign countries, and are
protected in the market of the mother country by small duties or
none. Consequently, free entry to this market is not as valuable to
the colonial products as is free entry to the protected markets of the
colonies to the industrial products of the mother country. There
are, however, certain important commodities which are largely ex-
ported by various colonies—for instance, Sugar, coffee, tobacco, and
cocoa-which are usually taxed by the mother country for revenue
purposes, and their free admission may give to such colonial products
a decided advantage.” -
But the advantage may be of almost negligible proportions, even
though the differential be considerable. These products are world
staples, with well-established grades, qualities, and prices; the duties
which they pay are normally charged to the consumers, and the
benefit which a differential affords to the colonist is not great—
except for the important assurance of favorable treatment in a
known market—unless the market of the mother country can absorb
os Again, the protective tariff of the mother country may contribute to building up an
industry in the colony also-thus, the French tariff treatment of textiles and the growth
of the cotton industry in Indo-China.
09 Contrariwise, fiscal considerations may prevent the granting to the colonial product
of the entire remission of the duty, as in France, especially before 1914, or as in the
preferential rates of the United Kingdom. On the other hand, these duties are frequently
sufficiently high so that a partial remission constitutes an effective preference.
34 COLONIAL TARIFF POLICIES.
the whole colonial product and more. For, if the buyers for the home
market have to pay the open-market price plus the higher duty on
the part of the supply they can afford to pay the same total price to
the colonists, assuming an equality of freight and other costs. Un-
less there is a combination among these buyers, the price in the
colonial market under these conditions is likely to go close to the
world price plus the differential. If, however, the colonists can sell
only a part of their product in the home market, the ruling price
for all of it will be close to the world price, less the freight to the
dominant market.
(2) Preferential tariff policy.-The largest tariff preferences,
which are granted at the present time, are found in the trade between
countries and their assimilated colonies. Assimilation is, therefore,
the most extreme preferential policy,” but for convenience the use
of the terms preferential policy and preferential or differential tariffs
is here restricted to those tariff systems in which tariff assimilation
is absent, but lesser degrees of tariff favors are granted. A prefer-
ential tariff system in this narrower usage may then be defined
as one in which the mother country and the colony have different
tariffs and in which there is partial or entire exemption from duty
for the trade in one or both directions. Occasionally rates adopted
in the tariff of a colony are higher than those in the mother country,
but except in the case of the colonies of free-trade Great Britain such
higher rates are found only sporadically and on a few items.” . Oc-
casionally also the rates on certain articles are the same either
through coincidence or by design.” Normally, however, the rates
are lower than, and are imposed without reference to, those of the
mother countries. -
The existing preferential tariffs may be divided into two types:
Those of the British Dominions and those of a considerable number
of dependent colonies—the Philippines, various British Colonies, and
the colonies of Italy, Spain, and Portugal.” The British Dominions
are industrial nations pursuing protective-tariff policies and levying
high rates of duty upon manufactured goods. These rates are fixed in
reference to all competition, including that of Great Britain and the
sister Dominions, but there are higher schedules of duties levied upon
non-British goods. This represents the actual method of arriving at
the rates,” but the tariff schedules may have the form of levying cer-
tain rates on goods of non-British origin,” and granting certain re-
ductions or specified lower rates to British products. Upon a com-
paratively small number of items dutiable at relatively low rates the
differential reduction takes the form of free admission. Generally,
however, the base rates are relatively high and the preference is a
minor fraction of the rate, from one-fourth to one-half.
70 But see note on p. —. -
71 Usually in application to commodities for which the colonial tariff has not a detailed
classification and to which as a class there is assigned a rate higher than the lowest rate
applied in the mother country to the poorer qualities—the differences being recognized in
classification—of the Same class. &
72 In the Philippines and in some of the French colonies some articles have been made
dutiable at the same rates as in the mother country to prevent attempts at evading the
metropolitan (national) duty by importation by Way of the colony.
78 Except for certain open-door colonies of Spain and Portugal.
74 Except in the earlier grants of preferential rates by Canada to Great Britain, where
the preference was designed to operate as a general reduction of duties.
75 Or of colonies which do not enjoy preferential treatment; the preferences are not in
all cases given to all parts of the Empire. (See pp. 53–54.)
*
INTRODUCTORY SURVEY. 35.
The mother countries, except Great Britain, have protective tariffs,
but the rates in the tariffs of their dependent colonies are levied more
largely for revenue and range generally from about 10 to 20 per cent.
The differential in favor of the mother country is usually, outside of
the British Colonies, the whole or the major part of the duty."
Preferences in the colonial market are usually accompanied by pref-
erences to colonial products in the home market, but the extent of the
two is by no means always comparable. The United States grants
free entry to the products of the Philippines, but Portugal gives
Angola the benefit of but 50 per cent reduction compared with a
preference in the latter of 90 per cent, and Italy has so far given
Libia no tariff favors whatever.
(3) The “open-door ’’ policy.—It may be that in the tariff of a
colony no distinction is made between the products of the mother
country and those of other countries. The policy there prevailing
is that of the “open door.” The principle of the open door is not to
be confused with free trade; it implies simply equal terms of entry
for all. In an open-door régime a tariff may be devised either with
a view to protection of local industry—as was the case in the self-
governing Dominions before preferences were granted—or for reve-
nue only, which is the usual case. The rates in open-door tariffs are
usually lower than those in either the assimilated or the preferential
systems. The colonies of the Netherlands and of Belgium and the
majority of the British Crown Colonies have, as all the German
colonies had, low rates and no discriminations against foreign trade.”
Reciprocally, the countries named had granted no favors in the
home market to the colonial products until in 1919 Great Britain
granted preferential rates upon the limited tariff schedule of the
United Kingdom. Where the open door is maintained as an excep-
tion from the general national policy, as in the Canary Islands and
Spanish Morocco, American Samoa, and some of the French colonies,
these colonies” receive certain favors in the mother country.
“Free trade ’’ in the strict Sense implies absence or approximate
absence of any duties. A free-trade régime prevailed in Central
Africa before 1890 (though there were export duties) and in India
as late as 1894, but it now persists only in a few small areas where
the transit trade is predominant—for instance, in Aden, the Straits
Settlements, Djibuti, and Melilla. The term “free trade * is fre-
70. It may be, expressed as a specified part or percentage of it or by separate rates on
various items, .
77 Colonial tariff policy of Demºmark.-Since the sale of her West Indian Islands and the
grant of independence to Iceland, Denmark possesses only the Faroe Islands and Green-
land. (Iceland, though it has been “independent ’’ since Dec. 1, 1918, recognizes the
King of Denmark as sovereign and conducts its foreign affairs through Denmark.) It has
not been thought advisable to include in this report a study of the colonial tariff policy
relative to these colonies. It may be said, however, that before the recent diminution of
the Danish Empire the earlier discriminations against foreign products had ºanº
from the colonial tariffs, but they continued in the tariff of the mother country. anish
shipping received certain favors in the Virgin Islands up to the time of their sale to the
United States, but the colonial government was authorized to extend, under certain cir-
cumstances, these favors to foreign vessels. Sugar and liquors manufactured in the
Danish West Indies from products of those islands paid in Denmark only the amount of
internal tax, with a deduction equal to the export duty paid in the West Indies, but not
exceeding 5 per cent. Other products or manufactures thereof from these islands paid
two-thirds of the usual duty. Articles manufactured from the raw materials of the
remaining colonies continue to enter Denmark free by special provision of the tariff law.
Denmark levies few duties upon raw Ematerials and apparently none that affects imports
from these colonies; e. g., the only duty on fish is levied on salmon, trout, sardines, and
spiced anchovies.
7S With two exceptions among the French Colonies.
36 COLONIAL TARIFF POLICIES.
quently used loosely in reference to open-door régimes—that is,
régimes whose characteristic feature is not absence of duties but
absence of differentials. The usage is due partly to the prevalence
of low revenue rates in open-door colonies. -
The open door with moderate duties is found in some colonies of
countries whose prevailing policy is assimilation or preference—
France, Portugal, Spain, and the United States—and in the leased
territories of Japan. The exceptions are made because of treaty or
similar obligations. Such treaty provisions or obligations are de-
scribed elsewhere in this section under the heading “Treaties and
other international arrangements imposing limitations in regard to
colonial tariffs.” (See p. 26.) .
NATIONAL POLICIES AND COLONIAL TARIFFS.
At this point the tariff policy of each colonial power may be sum-
marized briefly.” As is seen in Table 8, the colonies of the Nether-
lands and Belgium are, and those of Germany were, all open-door
colonies, as are also the majority of the British dependent colonies.
The countries which pursue a policy of assimilation—free trade be-
tween the colonies and the mother country and in both the same tariff
against outsiders—are France, Japan, and the United States (in
Porto Rico); while Spain, Portugal, Italy, and the British Dominions
pursue a preferential policy without going so far as free trade be-
tween the colonies and the mother country. The British Dominions
alone systematically levy protective duties against products of the
mother country. It will be observed from the table that all except
Germany, Belgium, and the Netherlands have colonies where by
exception, for reasons indicated and discussed below, the national
policy is not put in force. -
TABLE 8.—Colonies classified according to import tariff System.
Countries. Assimilated. Proferential. Open Door.
Belgium----------|------------------------|------------------------------ Belgian Congo.
France...---------- Algeria. French West Africa: French Morocco.
Germany (f or -
merly).
French Indo-China.1
Tunis.2
Madagascar.
Reunion.
Martinique.
Guadeloupe.
New Caledonia.
French Guiana.
Gaboon.
1 Differential export duties.
2 One or two items of differential export duty.
Senegal.
Guinea.
French Oceania.
St. Pierre and Miquelon.
X,
w
French Somaliland.
French West Africa:
Dahomey.
Ivory Coast.
French India.
French Equatorial Africa.
New Eſebrides.3
German East Africa.4
German Southwest Africa.
Kamerun. .*
Togo.
German Samoa.
New Guinea. *
Kiaochow (leased territory).
8 Anglo-French Condominium.
4 Now named Tanganyika.
7° Longer summaries will be found in Section III of the chapters devoted to the depend-
ent colonies of the different countries, and in the final sections of the chapters of Part II.
INTRODUCTORY SURVEY.
37
TABLE 8.—Colomies, etc.—Continued.
Countries. ASSimilated. Preferential. Open door.
Great Britain.----|------------------------ Dominions: British India.”
Canada. Newſoundland.
Australia. (Under Australia:)
New Zealand. apua.
Cook Islands.5 - Norfolk Island.
South African Customs | Colonies in Asia:
Union— Aden.
Union of South Aſ- Ceylon. 3.
rica. Straits Settlements.
Rhodesia.6 Federated Malay States---
Basutoland. Perak.2
Bechuanaland. Selangor.”
Colonies: Negri Sembilan.2
Trinidad. Pahang.”
British Guiana. Protected Malay States—
Jamaica and Cavmans. Johore.
TurkS and Caicos. Kedah.
Barbados. Perlis.
Leeward Islands— Relantan.
Dominica. Trengganu.
MontSerrat. Hongkong.
St. Christ op he r- Weihaiwei (leased terri-
Nevis. tory).
Virgin Islands. Colonies in Africa:
Antigua. Nigeria.2
Windward Islands— Gold Coast.”
Grenada. Sierra Leone.”
St. Lucia. Gambia.”
St. Vincent. British Somaliland.
British Honduras. Kenya 7 and Uganda.
Bahamas. Zanzibar and Pemba.
Cyprus. Nyasaland.
º:
Anglo-Egyptian Sudan.
Other colonies:
Gibraltar.
Malta. -
|British North Borneo.
Brunei.
Sarawak.
Tonga.
Solomons.
Gilbert and Ellice Islands.
Mauritius.
Seychelles.
Falkland Islands.
dº Bermuda.
St. Helena.
Italy.------ e º ºs º e º e i = * * * * * * * * * * * * * s = e e º sº e s = s. Eritrea. Italian Northern Somaliland.
Somalia.1 Rhodes.
Libia.
Japan.------------ Formºsa, or Taiwan. -----------------------------. Kwangtung (leased territory).
Saghalin, or Karaſuto. ICiaochow (leased territory).
Korea, or Chosen.
The Netherlands------------------------------------------------------- Dutch East Indies.
Curaçao. -
Dutch Guiana.
Portugal.---------|-----------------------. Mozambique.] Portuguese Guinea.
Angola.” Macao.
Cape Verde Islands. Portuguese Congo.
Portuguese India. -
Timor.
Sao Thomé and Principé.1
Spain-------------|------------------------ Fernando Po.1 Canary Islands.
Spanish Guinea. Spanish Morocco.
Rio de Oro.
United States..... Porto Rico............ Philippines. American Samoa.
Å; Islands. Canal Zone.
Ula Iſl.
1 Differential export duties.
* One or two items of differential export duty.
6 In relation to New Zealand, the Cook Islands constitute an assimilated colony.
8 Northeastern Rhodesia lies within the basin of the Congo and maintains the open door in accordance
with the general act of the Conference of Berlin, 1885.
the other territories in the South African Customs Union.
7 Formerly British East Africa.
The rest of Rhodesia has greater preferences than
38 COLONIAL TARIFE POLICIES.
f
The Netherlands, Belgium, and Germany.—The Netherlands since
1874, and Belgium and Germany since they became colonial powers
have maintained in all their colonies the open door and low or mod-
erate tariffs for revenue only. They have made no exceptions to the
rule that no direct tariff favors were to be enjoyed either in import
or export duties either in the colonies or in the mother country. In
all three cases, however, a great share of the trade of the colonies has
remained with the mother country.”
Great Britain.—Between 1860 and 1919 Great Britain maintained
the open door in India and in the Crown Colonies generally, with
either free trade or low tariffs for revenue only. In this period no
British dependent colony had a general system of preferential
rates,” but ten of the West Indian tariff Schedules already contained
preferential rates upon a fairly extensive but by no means complete
list of Canadian and British goods.” Previous to 1919 there was also
a preferential export duty upon tin ore exported from the four Fed-
erated Malay States. Beginning with September, 1919, the British
market has given a special preference to colonial imports, and this
may be described as a general system of preference since it extends
to all of the articles dutiable under the British tariff; but it must be
noted that the British tariff, before the war was limited to sugar,
cocoa, coffee, tea, tobacco, liquors, dried fruit, gasoline, and a few
lesser items, and that only a very few manufactured articles were
added during the war. The British Government accepted this pref-
erential principle as applicable to the whole Empire and during
1919–1921 there has been a considerable extension of differential
tariffs in the dependent colonies. In these years complete preferen-
tial import schedules have been adopted or extended by all the
tariff divisions of the West Indies except Bermuda, and the amount
of the preferentials has been increased; a complete system of prefer-
ences has been introduced in Cyprus; and differential export duties
have been imposed upon raw hides and skins exported from India,
upon palm kernels exported from Nigeria, the Gold Coast, Sierra
Leone, and Gambia, and upon tin ore exported from Nigeria. There
are thus, in addition to the Self-governing Dominions and the pos-
sessions dependent upon or intimately associated with them, 25 tariff
jurisdictions among the British Crown Colonies, including India,
which now have more or less extensive differential duties—16 (Cy-
prus and 15 in the West Indies) have more or less complete schedules
of differential import duties, and 9 (4 Federated W. States, 4
S0 This has been due to various factors, of which the most tangible are : For the Nether-
lands, the domination established before the trade was thrown open, shipping subsidies,
the reservation of the colonial coasting trade to national Vessels, and the remnants of the
“culture system ’’; for Germany, certain shipping restrictions, as well as subsidies; and
for the Belgian Congo, a practical monopoly of trade by the State (abandoned after
Belgium took over the colony from King Leopold), established by means of land legisla-
tion, the taxation system, and other instrumentalities.
8. The only exceptions were the South African dependencies which are outside of the
self-governing Union of South Africa, but within the South African Customs Union, and
the Cook Islands, governed by New Zealand. The British possessions in South Africa
have the preferential tariff of the South African Customs Union, with the exception of
Rhodesia, part of which lies within the basin of the Congo where treaty provisions
require the open door, and the rest of which is subject to the provision of the charter of
Rhodesia, which limits the rates leviable upon British goods, and thus in effect requires
preferences greater than those of the Union. These possessions are treated in this report
as dependencies of the Dominions rather than as Crown Colonies of Great Britain, since
with the partial exception of Rhodesia their tariff policy is determined by the Dominions.
But see chapter on South Africa, p. —. &
82 These rates were the result of the negotiations with Canada in 1912. The list con-
§ 47 items and the reductions were generally 20 per cent of the duty ordinarily
levie
INTRODUCTORY SURVEY. 39
West African colonies, and India) have differential export duties
upon not more than two articles each. But since probably not over
4 per cent of the total trade of the British Crown Colonies is affected
by these differential duties (see p. —), the open door is still the
policy prevailing in the dependencies of Great Britain.
The self-governing Dominions.—The four great 'self-governing
Dominions *—Canada, Australia, New Zealand, and South Africa—
pursue tariff policies which are more characteristic of nations than
of dependent colonies. These Dominions are industrial nations sys-
tematically seeking the development and diversification of local in-
dustries. By the use of tariff walls they reserve their markets to
domestic manufacturers and producers. Seeing in the tariff an in-
strument of domestic political and economic policy, they have ex-
tended its use to the larger field of imperial and international affairs.
Since the sentiment for drawing the Empire more closely together
may be utilized either in favor of a reduction of duties upon British
products or in favor of an increase of the duties on foreign products,
statesmen of the Dominions have frequently found the preferential
tariff a useful means of popularizing changes which they desired to
make in the general level of tariff rates. These facts explain in a
broad way the adoption of preferential tariff policies in the self-
governing Dominions a dozen to twenty years earlier than in free-
trade Great Britain. &
As already mentioned, the type of preferential tariff found in the
Dominions is peculiar to them. It is distinguished from the pref-
erential schedules of the dependent colonies in that the base rates are
high protective duties instead of moderate protective * duties or
revenue rates and in that the differentials granted constitute a minor
rather than a major fraction of the base rate. Upon a relatively small
number of items, rarely dutiable at more than 10 per cent,” the differ-
ential reduction takes the form of free admission. Generally, how-
ever, the base rates run from 20 to 50 per cent, and the preference is a
minor fraction of the rate, usually from one-fourth to one-half, and
amounts to from 5 to 20 per cent ad valorem. -
The preferential schedules of the self-governing Dominions are
applicable primarily to products of the United Yingdom. To a
limited extent they are extended also to the products of the other
Dominions, and to the rest of the Empire, but there is no uniformity
in this matter. Between 1898 and 1907 all the Dominions adopted
preferences in favor of Great Britain. This was done without bar-
gaining on the subject and without receiving any reciprocal favor
until 1919.” In 1903, when New Zealand introduced her preferen-
tial rates, she made them immediately applicable to the whole British
Empire, and all increases in her differentials" made since that date
88 Throughout this discussion the Dominions do not include Newfoundland, which has
no preferential tariff.
& The rates applied in the preferential-tariff colonies to raise revenue and to give partial
protection to the industry of the mother, country. º -
S5 In New Zealand a dozen articles dutiable at 20 per cent are on the Empire free list.
In Canada in 1919–1920, after the repeal of the war tax on imperial products and before
its repeal on other products, the British free list was composed largely of articles other-
wise dutiable at 73 per cent, but a few items had rates even higher than 20 per cent.
In South Africa and Australia artic es ordinarily dutiable at not more than 3 per cent
and 5 per cent, respectively, are on the British free list.
88 And see p. — for the insignificance of the advantages to be derived by the Dominions
from the preferential schedules adopted in Great Britain in 1919.
87 I. e., in the voluntary and one-sided preferences. Her reciprocity agreement with
South Africa conceded certain rates not granted to other British possessions.
\
40 COLONIAL TARIFE POLICIES.
have had an equally wide field of operation. The other three Do-
minians have granted tariff favors to sister Dominions only after
negotiations and special concessions,” and as the negotiators have
frequently failed either to agree among themselves or to satisfy the
legislative bodies whose ratification of the agreement was necessary,
the network of preferential agreements among the Dominions is by
no means complete.” The British Crown Colonies and India have
been regularly included in the preferential legislation of New Zea-
land, but in Canada the preferential rates were extended to the
dependent colonies only gradually between 1898 and 1913, while
South Africa and Australia have granted to those colonies no favors.
Italy.—Italy maintains colonial tariffs with low rates of duty but
otherwise with large preferences to national goods. Italian goods
enter Eritrea practically free and receive a preference in Somalia
which is especially effective on cottons—the chief article of trade. In
Libia there is a preference by the process of undervaluing Italian
goods to the extent of about 50 per cent, and certain open preferences
on textiles and sugar. The export duties of Eritrea are insignifi-
cant and those of Libia very low and neither colony has differentials
in these duties; in Somalia a few of the chief items of export have
differential duties. Somalia offers special rates to certain products
of Eritrea. The preferences in Italy to colonial goods are very
limited, though the tendency is to increase them.
Spain.—Spain is by tradition among the countries which restrict
their colonial trade by preferential tariffs. Differential rates are
granted to the chief colonial products when they enter Spain in
Spanish ships; and in both the import and export schedules of
Fernando Po preferences are granted to the mother country. The
importance of Spanish preferences, however, was much diminished
in 1898–99 by the loss of Cuba and Porto Rico and the sale of the
Spanish colonies in the Pacific. Spain had long maintained the open
door in the Canary Islands (except for preferentials given to cocoa
and coffee of Fernando Po) and with the recognition of her posses-
sion of a part of Morocco (in which the maintenance of the open
door is required by treaty), the greater part of her colonies became
open-door colonies. But in 1914 a preference was granted to Spanish
sugar in the Canary Islands.
Portugal.—Portugal applies most thoroughly in her colonies the
principle of preferential tariffs, but without going. So far as tariff
assimilation. At the same time there is less uniformity in the Portu-
guese system, and there are more exceptions required to any gen-
eralization that may be attempted than in reference to the other
colonial systems. Generally speaking, however, there are duties on
all imports both in Portugal and in the colonies and on all exports
from the colonies, and in all these duties there are differential rates
in favor of Portuguese or colonial goods or in favor of Portuguese
ships. Colonial products, except a few more favorably treated, pay
in Portugal, if transported in Portuguese vessels, only one-half of
the usual rates, and a law of 1914 prescribes that in the colonies the
8s Except that Canada responded to New Zealand's free extension of her preferential
schodule to the products of Canada by a like free extension of her preferential schedules
to the products of New Zealand. (See p. — for the extension of Canada's preferential
rates to products of sister colonies, not Dominions.) *.
80 See under the heading Intercolonial trade, p. 53.
INTRODUCTORY SURVEY. : 41
preferences to Portuguese products transported in Portuguese ves-
sels shall not be less than 50 per cent. This is now the preference
in Portuguese India, and on many articles in Mozambique, but in
the other colonies the old differentials of 80 and 90 per cent generally
prevail. Macao is a free port, and in Portuguese Guinea and in that
part of Angola which lies within the conventional basin of the Congo
the open door is maintained. A peculiar feature of the Portuguese
system is that foreign goods “reexported " from Portugal receive
in the colonies a 20 per cent reduction in the colonial duties. These
reexported goods pay in Portugal certain fees, but not the Portu-
guese tariff, and this is frequently the most convenient way of getting
articles into the colonial market.
France.—France adopted in 1892 tariff assimilation as its pre-
vailing policy. This régime is applied to Algeria, Indo-China,
Tunis, Madagascar, and five less important colonies, though the
tariff of Tunis is not fully assimilated to that of France. These
assimilated colonies enjoy free trade with France,” except that
colonial Sugar and pepper pay duties, though at a much lower rate
than similar foreign products, and except that the colonies” have
certain additional duties not called customs duties, which are col-
lected on imports from France as well as on those from foreign
countries. This assimilation of the tariff rates, however, is not
absolute, and each colony has a list of exceptions based on the local
needs. The articles listed come in free or at lower duties than the
French tariff rate.” In some of the nonassimilated colonies—for
instance, West Africa and Oceania—there are special tariffs, lower
than the French, giving preferences to French goods; and in other
colonies the open door is maintained either by treaty, as in Morocco,
Dahomey, and the Ivory Coast, or by policy, as in French Somaliland
and French India. In Morocco, however, the open door is guaran-
teed by treaty only in the Seaports, and imports and exports over-
land from and to Algeria and the Spanish city of Melilla are dutiable
at much smaller rates than in the seaports.” The general tendency
is to develop closer and closer relations with the nonassimilated
colonies by granting increased preferences to their products on entry
into France. Intercolonial free trade is the rule for all the French
colonies, with the exception of Tunis.
Japam.—In 1909 Japan applied the policy of tariff assimilation to
her colonial possessions, which were at that time Formosa, the Pesca-
dores, and Saghalin. In the following year, when ICorea was an-
nexed, the open door was pledged therein for 10 years, and the
assimilation of its tariff followed immediately upon the expiration
of this period—August, 1920. A few items of Japan’s tariff had
earlier been changed to give a preference to products of Korea.
Overland trade between Korea and Manchuria, if carried by rail,
enjoys special reductions in the import and export tariffs of China.
In the territories leased from China–Kiaochow and Kwangtung–
the Chinese maritime customs are in force, except that a part of the
port in Kiaochow and the whole of Kwangtung constitute free areas,
so that in the latter only merchandise in transit through the territory
00 Trade between France and Tunis is not entirely free,
91 France also has a few consumption duties which fall equally on goods of all origins.
9° A very few have higher rates.
* See p. —.
42 COLONIAL TARIFF POLICIES.
is dutiable. Products of these territories are subject in Japan to the
minimum tariff rates; that is, those of the conventional tariff. In a
word, Japan's policy is entire tariff assimilation of her colonial pos-
sessions, except that free admission to Japan is not granted to the
products of the leased territories in which Japan’s tariff can not be
, enforced because of treaty obligations.
United States.—The United States pursues the policy of preferen-
tial trade relations with its colonies. American products enter free
in all the insular possessions,” except only Samoa, where the in-
definite maintenance of the open door is guaranteed by treaty. Like-
wise, from all the insular possessions" local products enter the
United States free. The rates of the United States tariff are in force
in Porto Rico, but the Philippines, Virgin Islands, Guam, and Samoa
have individual tariffs. The rates are fairly high for the Philippine
Islands. In the Virgin Islands the tariff of the Danish régime is
temporarily continued in force. No export duties are levied in the
insular possessions other than the Virgin Islands, and there they are
uniform regardless of the destination of the products.
REASONS FOR EXCEPTIONS TO NATIONAL POLICIES.
The countries which pursue a general policy either of assimilation
or of preference make various exceptions to their general practice.
Some of these have not been traced to their causes, but the reasons for
most of them are sufficiently obvious. These reasons may be classified
under four headings: International relations, geographical influence,
fiscal demands, and the interest of the consumer. In the first two of
these are found the explanations of the widest variations from policy,
namely, in the cases of the open-door and special tariff colonies among
the powers which pursue a more restrictive policy. In reference to
the larger areas, the explanation lies usually in the requirements of
treaty or similar obligations; ” in the Smaller areas, geographical
and communication features are usually the determining factors."
If national goods obtain a monopoly, more or less complete, of a
colonial market by reason of free entry there, it is obvious that little
or no revenue will be derived from customs. Accordingly, fiscal needs
have led to the imposition of uniform consumption duties upon im-
ports into the French assimilated colonies, and in other cases the
needs of the treasury have made impossible reductions in the duties
on national goods in colonial markets" or on colonial products in
the home market.”
Policies of assimilation naturally tend to the prevalence of compar-
atively high import duties. But the interest of the consumer and
the need for developing the colonial resources have forced exceptions
by way of lower rates or by extensions of the free list in all the col-
onies in which any degree whatever of “tariff personality" is allowed.
04 According to the agreement of 1904 with Panama the United States levies no customs.
duties in the Canal Zone, and according to an opinion of the Attorney General the Canal
Zone is not an American possession within the meaning of the tariff act of 1909. There-
fore, its products when imported into the United States are dutiable as foreign products.
of For instance, in the conventional basin of the Congo, Morocco, Dahomey, the Ivory
Coast, Samoa, Korea, 1910–1920, and the Philippines, 1899–1909,
og For instance, in French India, Portuguese Guinea, Timor, St. Pierre and Miquelon,
French Oceania.
07 For instance, Somalia.
B8 For instance, France.
INTRODUCTORY SURVEY. 43
|
These lower rates mean smaller preferences if the products of the
móther country enter free or at a fixed percentage of the usual duty,
while the placing of an article on the free list abolishes the preference
entirely. With the establishing of specific duties or of different pref-
erences on different articles the differential” is sometimes increased
even though the duty be lowered.
7. RATES AND PREFERENCES IN COLONIAL IMPORT DUTIES.–
- * COMPARATIVE SUMMARY.
Enumerated above, the different features of colonial tariff policy—
import duties in colonies, export duties in colonies, treatment of
colonial products in the home markets, intercolonial trade, naviga-
tion restrictions, and finally discriminations by means other than
tariff preferences—may now be referred to in succession, with the
object of instituting comparisons between the different colonial tariff
systems. -
METHODS OF COMPARISON.
Comparisons of the amount of discrimination involved in the
preferential features of colonial tariff systems can be made only with
difficulty.” Four methods of comparison may be used: (1) In some
cases the average rate of duty collected upon all imports or upon
dutiable merchandise from the mother country and from foreign
countries can be derived from the trade and customs statistics; (2)
for all preferential tariff schedules (except for the relatively few
cases in which both specific and ad valorem rates are levied upon the
same article) the amount of the preference upon each classification
can be expressed as a fraction or percentage of the full duty, and a
summary statement can be made of the fractions most frequently
found in the tariff schedules; (3) to the extent to which ad valorem
rates prevail in the schedules of various colonies the amount of each
preference can be expressed as a percentage of the value of the mer-
chandise, and these preferences may be summarized in general State-
ments; (4) where specific rates prevail (and in other cases after the
labor of converting ad valorem to specific rates on the basis of the
average prices for a certain period) the preferences on particular
items may be expressed in dollars or cents per pound, yard, gallon,
or other unit of measurement, but generalizations from these specific
preferences are difficult. e gº
The first three of the above methods are seriously defective, and
the fourth is suited to detailed studies of particular articles rather
than to general comparisons of the tariff Systems of a hundred
colonies. The first method is useful in comparing revenue tariffs,
but misleading in comparing preferential or protective tariffs. The
highest rates, resulting in the general exclusion of foreign goods,
may show the lowest average rates of duty upon those foreign prod-
ucts which actually enter a country or colony. The Second method
00 Difficulties arise from the complexity and diversity of schedules, from the use.9f both
specific and ad valorem rates, and from the necessity, of coordinating the tariff rates,
both with the trade figures to determine the relative importance of different items, and
with production figures to determine the extent to which, they, are protective rather than
revenie duties. And see the next paragraph for the effect of duties so high its to exclude
the trade of foreign countries. .
4S748°—21—4
\
44 COLONIAL TARIFF POLICIES.
of comparison is defective, since it is obvious that a fraction of a high
duty may be as effective a differential as the remission of the whole
of a lower duty. For instance, in the Philippine Islands American
printing paper enjoys a remission of the whole duty of 10 per cent ad
valorem; in Australia British paper enjoys preferences (according to
the subdivisions of the classification) of one-half of 10 per cent (or
5 per cent ad valorem), two-thirds of 15 per cent (or 10 per cent ad
Valorem), and two-fifths of 25 per cent (or 10 per cent ad valorem).
Evidently in this case the preference expressed by the fraction two-
fifths is greater than that expressed by the fraction one-half; evi-
dently also on an ad valorem basis both the preferences expressed by
the fractions two-thirds and two-fifths are as great as the preferen-
tial remission of the whole of the duty in the Philippine Islands.”
While this method of comparison thus yields only very general
results, it has the advantage that it can be used both for specific and
ad valorem rates, and by a study of the tariff schedules alone; it has
been used, accordingly, in the following paragraphs. The third
method of comparison is less defective, but is useless for a direct
comparison between, for instance, typical British and French colonial
tariffs. Further, no statement of the amount of a preference, whether
expressed by a fraction of the full rate or on an ad valorem basis, or
as a specific rate, is of more than relative significance without an
examination of the ability of the mother country to compete in the
article or articles in question. Especially in the case of ad valorem
preferences whose amount changes with changes of price, a given
rate may exclude foreign trade at one time and not at another; it
may be prohibitive on some articles and in Some colonies and prove a
negligible barrier to the trade of foreign countries in other articles
or in other colonies. A differential consisting of one-third of a low
rate may be almost negligible; of a higher rate may be prohibitive;
and of a still higher rate may be superfluous—even the preferential
rate may be a prohibitive protective tariff, as is sometimes the case
in the British Dominions. .
These general observations upon methods of comparison are in-
tended to warn the reader against attaching an unwarranted signifi-
cance to the comparisons which follow :
OPEN-DOOR colonies—NETHERLANºgan, GERMAN, MOST BRITISH CROWN
In reference to rates and preferences in import duties, the tariffs of
the open-door colonies require little attention. They contain no pref.
erences and the variations in their rates are not important. The rates
are, as a rule, not protective,” but are adjusted to bring in revenue.
* The equivalence is not exact, because the valuation in the Philippine. Islands is that
at the port of origin, waale in Australia it is that of the port of origin increased by jo
ber cent t
pe. There are some exceptions, for instance, the recent Indian import duty on cottons
and the export duty on raw hides and skins; British Guiana, Jamaica, Trinidad, the
Windward and the Leeward Islands levied duties on coffee, cocoa, and sugar even before
the war had, increased the demand for revenue, and in some of them the protective force
of these duties was reenforced by export duties on the raw product. *P of them, how-
ever, imported refined sugar, and only Barbados and St. Vincent exported it. The rates
on coffee and cocoa Were as high as 6 cents a pound, and on sugar 3 cents a pound for
refined and 1% for raw (British Honduras), but usually they were much less. It will be
observed that these protective duties preceded the grant of preferential rates to Canada
and Great Britain, so that these were at that time open-door colonies. But see p. — in
reference to Jamaican coffee. - -
* -
INTRODUCTORY SURVEY. 45
Social and fiscal considerations determine what articles shall be left
free and which shall be most highly taxed. Usually alcoholic liquors
(if admitted) are subjected to high duties, while agricultural, indus-
trial, and mining equipment, necessary for the development of the
country, is left free; and the general mass of consumption goods is
subjected to rates ranging between 73 and 15 per cent ad valorem.
There are not infrequently found, even in colonies where the home
government is meeting annually a deficit in the colonial budget, rates
of duty not exceeding 10 per cent. The high rates on liquors are offset
by excise duties; the low rates on other commodities offer little pro-
tection for the encouragement of local industries. The rates are not
high enough to interfere seriously with consumption and the main-
tenance of the open door renders the tariff without influence on the
direction of trade.
ASSIMILATED AND PREFERENTIAL COLONIES.
The assimilated and preferential colonies have tariffs designed to
affect the course of trade, and the rates and the amount of the prefer-
ence in their tariffs are matters of importance. The amount of the
preferences may be described either relatively or absolutely—that
is, a statement may either give the fraction or percentage of reduc-
tion of duty enjoyed by national products or may name the amount
(specific or ad valorem) of the two charges respectively or of the
differential, i. e., of the difference between them. Employing first
the relative method, that of fractions or percentages, the situation
may be taken account of briefly as follows:
United States and Japan.—The colonies 49% of the United States
and Japan give to national products a preference to the full extent
of the duties levied in the colonies. In Porto Rico and the Japanese
colonies the rates are those of the metropolitan tariffs. In the
Philippines they are lower, and in Guam and the Virgin Islands
still lower.
France.—In the assimilated colonies of France there are found by
exception some import duties lower than those of the metropolitan
tariff, and there are moreover additional duties—under other names—
which fall on French and on foreign goods alike, so that the differen-
tial in some cases falls considerably below 100 per cent of the total
charges paid. To illustrate: If an article pays a customs duty of
10 francs and an octroi of 2.5 franos, the total paid on the foreign
product amounts to 12.5 francs while that paid on the French product
is 2.5 francs. The preference on this article is therefore an 80 per
cent differential. If the additional duty were 10 francs, the total
payments would amount to 20 francs and 10 francs, respectively,
and the preference would be a 50 per cent differential. These addi-
tional duties differ widely in the different colonies, falling in some on
only a few articles, in others on more, and in still others on nearly
all. The rates vary widely, sometimes exceeding the amount of the
customs duty, though more frequently they are much less. Taking
all the import charges together, the differential in favor of French
goods probably runs from 50 to 80 per cent, and even higher, in the
different assimilated colonies.
102 Excluding Samoa and Japan’s leased territories.
46 COLONIAL TARIFF POLICIES.
In the preferential colonies of France, the tariffs of Senegal and
Guinea contain a differential in favor of French imports which
amounts to seven-twelfths (58.3 per cent) of the duty upon articles
not enumerated, and this may be taken roughly as the characteristic
rate. The numerous classifications of textiles have specific duties
with preferences on the whole somewhat greater than the fraction
named. Other important articles (dutiable at higher rates) have
differentials relatively smaller—on liquors, tobaccos, sugar, salt,
mineral oils, arms, and powders the differentials are from one-eighth
to one-half. In the complicated schedules of Oceania the widest
diversity exists, but the most characteristic rates are 12 per cent upon
French products with 8, 10, or 13 per cent additional on foreign
goods, so that the differential is from two-fifths to a little more than
one-half of the total charges collected. In their preferential colonies,
therefore, the French give to their own products differentials which
scarcely exceed one-half of the total charges levied; and the differ-
ence between the assimilated colonies and the preferential colonies
is both in the percentage of the preferences and in the height of the
rates upon which the differentials are reckoned.
In the colonies of those countries which do not pursue a policy of
assimilation, there is greater diversity both as between different
systems and within the colonies of single powers. -
Portugal.—Except for the preferential colonies of the United
States, where the preference is one hundred per cent of the duty, the
percentage of preference on national goods is highest in the Portu-
guese colonies: In Mozambique and Portuguese India, 50 per cent;
in the Cape Verde Islands, 80 per cent; and in the other preferential
colonies, 90 per cent. In Mozambique, however, there are many
items specifically scheduled on which the preferential is much greater
than 50 per cent, as is also that on wine in Portuguese India. Some
of the differentials on wine and tobacco exceed 90 per cent, and on
the whole that figure may be taken as the characteristic Portuguese
preference.
Spain.-In Fernando Po and Guinea the general preference is one-
third of the 15 per cent duty—that is, Spanish goods in Spanish ships
pay only 10 per cent ad valorem. But on textiles, ready-made cloth-
ing, boots and shoes, coal, jewelry, and wines other than sparking, the
preference is the whole of the specific duties. Other alcoholic bever-
ages receive no preference, while on beer, powder, arms, tobacco, and
petroleum the preference is from 50 to 80 per cent, Considering the
comparative importance of these enumerated articles on which the
preference is 50 to 80 or 100 per cent, the average preference in this
colony can scarcely be estimated at less than 50 per cent. Spanish
Morocco and the Canary Islands are under the open-door régime, but
the latter has had since 1914 a differential duty of more than 2 cents
per pound in favor of Spanish sugar.
Italy.—The Italian colonies must be treated individually. In
Eritrea, Italian goods pay at the rate of only 1 per cent; foreign
goods pay, as a rule, 8 per cent, with 10 per cent on cottons and 15
per cent on linen, Sugar, and oils. The preferences thus range from
874 to 93% per cent. In Somalia the preference amounts to 93% per
cent on articles not enumerated, and ranges from 33% to 90 per cent
INTRODUCTORY SURVEY. 47
on enumerated commodities, except that there is no preference ** On
arms, tanned skins, leather goods, mats, sesame oils, and manufac-
tures of wood. Seventy per cent may be considered the charac-
teristic preferential rate.” In the tariff of Libia there are fewer
varieties of preference, but it is not easy to determine or define what
are the amounts. The only open preferences are those on textiles
and on sugar, which commodities pay preferential specific surtaxes
in addition to the uniform 8 per cent ad valorem duty. As the specific
surtax remains a fixed sum and as the ad valorem duty, of course,
varies in amount with variation in the price of the commodities, it is
obvious that with an increase in price the relative importance of the
surtax in making up the total of the charges will decrease. At the
time when the preferential was imposed, the preference on Italian
sugar was roughly one-half of the total duty on the foreign product,
while that on textiles was perhaps, generally speaking, less than one-
third. The rise in prices since 1914 decreased the relative propor-
tions. There is also a concealed preference, indefinite in amount but
apparently approximating 50 per cent on many classes of Italian
goods, granted by means of undervaluation at the customs. Making
a rough generalization, it may be said that the Italians grant Italian
products a preference of about 90 per cent in Eritrea, 70 per cent in
Somalia, and about 50 per cent in the much more important colony
of Libia.
British Crown Colonies.—The general rates of preference in the
West Indies are simple fractions of the duties ordinarily levied: In
Trinidad, Guiana, Barbados, one-half; in British Honduras, the five
Leeward and the three Windward Islands, one-third; and in Jamaica
and the Bahamas, one-fourth.” In Cyprus the reduction to prod-
ucts of the Empire is two-fifths, one-third, or one-sixth. Thus minor
fractions characterize the preferential tariffs of the British depend-
ent colonies, in contrast to the larger differentials found in prefer-
ential tariffs of the colonies of other countries.
British Dominions.—Of the four great self-governing Dominions,
South Africa grants the Smallest preferences to products of Great
Britain and the sister Dominions. The tariff schedule contains
30-odd items upon which the duties are specific, and on these the
preference ranges from one-fifth to one-thirteenth of the full rate.
Ad valorem rates of 15, 20, and 25 per cent are levied on a great
number of manufactured articles, and upon these the preference is 3
ber cent ad valorem, or from one-fifth to one-eighth of the full duty.
here is also a long list of articles—74 items—which are dutiable at
3 per cent, if of foreign origin, but free under the preferential
schedule. On the other hand there is a list of 54 items which enter
entirely free, and upon which there is, therefore, no preference.
In &ºi. the rate of preference to British goods has been some-
what altered from the one-third at which it was placed in 1900, but
the departures from this fraction are not wide; the preference rises to
108 The nonpreferential items pay 10 per cent regardless of origin ; both the duty and
the absence of preference are for the protection of native industry. -
104. This is the rate on cottons, which make up one-half of the total imports. The
differential on spices is 333 per cent ; otherwise the smallest is 50 per cent.
105 The fractions named are those specified in the agreement of 1920 with Canada, except
that the Bahamas, in ratifying the agreement, Voluntarily increased the preference from
one-tenth to one-fourth. -
48 COLONIAL TARIFF POLICIES.
one-half only upon a few items dutiable at 5 and 10 per cent, respec-
tively, in the two schedules,” and on a number of items it is only
one-fifth. A considerable number of articles have no preference,
since they are free from all sources, or, less frequently, they have
only one rate. The articles free from Great Britain but dutiable
from other sources are very few and dutiable at only 5 or 10 per
Cent. 107
In Australia the preferences upon articles dutiable at ad valorem
rates are very similar to those of Canada. In a few cases the pref-
erence amounts to one-half, but usually it is two-fifths, one-third, or
one-fourth, except for some items otherwise dutiable at 5, 10, or even
15 per cent, which are free under the preferential schedule. Upon
items dutiable at specific rates the same and similar fractions prevail;
but, e. g., upon brandy, gin, and rum the preference is one shilling
per gallon, which comes to only one twenty-eighth to one-thirtieth
of the duty levied upon the foreign product; upon cigars the pref-
erence is one-eleventh; and on cigarettes, one twenty-second. On
other tobacco, sugar, and many miscellaneous items there is no pref-
€I’e]]Ce.
New Zealand has less extensive schedules than Australia and
lower rates. The preferential reduction found most frequently is
one-third, but there are a few exceptions where the preference is as
high as two-thirds, and a greater number in which it is a fraction
smaller than one-third. On the other hand, there are a larger num-
ber of items than in Canada or Australia upon which the ordinary
duty is 10 or even 20 per cent and which are admitted free from the
British Empire.
Outside of South Africa, where the preferences are much smaller,
the characteristic preference of the Dominions is evidently one-third,
with the entire remission of duty on a small number of items duti-
able chiefly at low rates. -
The fraction one-third is less characteristic of the preferences found
in certain British Crown Colonies, but it is characteristic of the dif-
ferentials introduced in 1919 in the tariff of the United Kingdom,
and while the chancellor of the exchequer, Austen Chamberlain, was
not then “propounding the general tariff policy" of the country, he
stated that one-third was “what I may call the general Empire rate,
so far as a general Empire rate exists.” t
ABSOLUTE AMOUNT OF PREFERENCES.
Up to this point the amounts of the preferences have been referred
to in terms of fractions or percentages of the rates of duty on for-
eign products. By this criterion the preferences of the United
States and Japan rank easily first, as these countries maintain in
their assimilated and preferential colonies differentials of the whole
of the charges levied. After them, in descending order, come the
colonies of Portugal, France, Italy, Spain, the British Dominions,
and the British Crown Colonies. This method of indicating and
comparing the amounts of the preferences is comparatively the easier,
106 There is one item dutiable at rates of 15 and 30 per cent.
107 Except that certain vessels, and the bags, barrels, or other containers in which salt
is imported, are dutiable at 25 per cent, if of foreign, origin. Wines are dutiable at uni-
form specific rates, but there is an additional duty of 30 per cent ad valorem on foreign
wines. South African Wines pay only 25 cents a gallon.
INTRODUCTORY SURVEY. * 49
&
but consideration based on determination of the absolute amounts of
the preferences is much more important. But it should be noted
that a small differential on a standard commodity—for instance,
Sugar or cheap cottons—is of much greater consequence than is a
differential of like amount or percentage on less standardized goods
such as machinery, ready-made clothing, and large classes of manu-
factured articles of types wherein articles of widely varying prices
compete with each other. Fashions are of some importance, even in
Africa, though it is generally understood that the natives of Africa;
India, and Oceania show less discrimination in regard to quality
and pay more conclusive attention to price than do purchasers in
America and Europe. Again, where the preferences differ for dif-
ferent articles it may be found that some even of the largest have
actually no effect on trade, for the reason that even with this ad-
vantage the industries of the mother country are not in position to
compete, or that, on the contrary, foreign competition is nonexist-
ent—as might be shown by comparison with neighboring neutral
markets. In other words, even a general comparison of the abso-
lute amounts of the preferences gives only rough results. For an
accurate determination of the effects of differential tariffs, a his-
torical trade study, item by item, would be necessary.
Without undertaking a detailed comparison of the height of the
schedules in the various colonial tariff systems, it appears that on
the basis of the absolute amounts of preference the order in which
the systems have been ranked above would have to be somewhat
changed. The United States, Japan, and France all have high pro-
tective tariffs, and, with some exceptions in the French colonies, the
rates of their national tariffs apply in their assimilated colonies.”
The French tariff rates are higher than those of the Portuguese colo-
nies, where most of the rates range from 5 to 20 per cent, so that the
absolute amount of the preference is considerably greater in the
French assimilated colonies than in the Portuguese, where, moreover,
the preference is less than the whole amount of the duty. The great-
est absolute preferences are found, therefore, in assimilated colonies,
and in regard to them the preferences granted by France, Japan, and
the United States would rank in the same order as that in which
their national tariffs would fall if arranged according to the height
of their rates, respectively.
Among the preferential colonies (as distinguished from the assimi-
lated) the Philippine Islands have apparently the highest rates of
duty, and as the preference there is the whole amount of the duty
the differentials are obviously greater than those which prevail in
the British Dominions or in the colonies of Italy, Spain, Portugal,
and Great Britain. The British Dominions also have high rates of
duty; of the rates found with some frequency in their schedules the
maxima are 25 per cent in South Africa, 35 per cent in Canada, 37;
per cent in New Zealand, and 45 per cent in Australia.” In the
Australian tariff of 1920, out of 583 differential items, the differen-
tial on 367 items is 10 per cent and on 136 items 15 per cent ad va-
lorem. Assuming an equivalence of the items, the average differen-
tial comes to about 11.5 per cent. The Canadian and New Zealand
. *The charges levied under names other than customs duties lessen the figure for the
percentage of preference accorded in general to French products but do not affect the
gbsolute amount Of that preference.
* Practically the only higher ad valorem rates are those on spirits.
50 COLONIAL TARIFF POLICIES.
preferentials, which average about one-third of the full duties on
the preferential items, probably average under rather than over 10
per cent ad valorem. The Italian colonies appear to have duties
lower on the whole than those of the Spanish colonies of Fernando
Po and Guinea, whence it is a question whether the larger percentage
of the preference in the former is as important as the smaller per-
centage in the latter. -
The various rates of the different Italian and Portuguese colonies
ãre hard to compare, but the Portuguese reach higher maxima, and
as their differentials average higher in proportion their preferences
are probably higher than those of Italy. The British Crown Colo-
nies, in which the differentials are only one-fourth to one-half of the
moderate rates of duties, have evidently the smallest discrimina-
tions in favor of the mother country. On the basis of the absolute
height of the differentials it would appear that the assimilated colo-
nies of France, Japan, and the United States should be grouped,
followed in descending order by the Philippine Islands, then by the
Portuguese preferential colonies, the British Dominions, the prefer-
ential colonies of Italy and Spain, and finally by those British Crown
Colonies which employ preferential tariffs. |
8. RATES AND PREFERENCES IN COLONIAL EXPORT DUTIES
SUMMARY. $ f
Before the war export duties had been generally dropped from
European fiscal systems. They are forbidden by the Constitution
of the United States, and those which were inherited from the Span-
ish régime in the Philippines were abolished in 1913 and are now
forbidden by the organic law of August, 1916.” Japan abolished
the Korean export duties in 1919. Many of the older British Crown
colonies and Dominions have no such duties, and there are other
exceptions, but otherwise export duties are found as a regular part
cf the European colonial system. There was a tendency for these
duties to disappear with the development of the colonies, but the
financial requirements of the war interrupted this tendency, and led
to the restoration of a considerable number of export duties and to
increases in the rates of others.
PURPOSES.
Export duties on raw materials have a protective effect upon the
industries using those materials somewhat the same as the effect of
import duties levied upon the competitive finished products. In very
few cases, however, does it appear probable that protection for local
industry was an object in imposing export duties in colonies. Export
duties are frequently laid upon articles where there is no further
industrial process to be protected; for instance, on bananas, tea, and
polished rice. They are frequently laid without distinction upon
articles in different stages of manufacture; for instance, hides, raw
Or tanned.* -
110 The only export duties in the American colonial System are those of the Virgin
Islands. Their rates have been continued temporarily from the Danish régime, except
that on sugar, which has been raised. g
iii. In the German colonies, particularly German East Africa, care. Seems to have been
taken that the duties should have no protective effect. The rate of 15 per cent on iVQry,
on horns, and on some shells, hides, and skins was imposed also upon articles manufac-
tured from these materials, and the specific or smaller ad Valorem rateS On Sulgäll" Cane,
woods, matweed, and palm leaves were likewise imposed upon the manufactured products.
º
INTRODUCTORY SURVEY. 51
Further, official statements abound declaring that the purpose of
these duties is fiscal. The rates are usually too low to have much
protective influnence, and when financial situations permitted, export
duties have frequently been lowered or abolished.
In certain cases, however, a protective purpose is avowed or is
clearly evident from the circumstances. The recent differential ex-
port duty of 5 and 15 per cent upon the export of raw hides and
skins from India—the tanned article being free—is for the purpose
inter alia of protecting two industries which were greatly stimulated
or injured during the war.” In Somalia raw hides and wood pay a
10 per cent export duty, while tanned hides and manufactures of
wood pay only 1 per cent.” -
Conservation is sometimes an object of an export duty, though this
end is perhaps more frequently sought by prohibition. The prohibi-
tions enforced by Canadian Provinces against the exportation of lum-
ber and wood pulp secure both protection and conservation. The
exportation of cows and heifers is frequently made dutiable or pro-
hibited, with the object of building up the local herds. Export duties
are also levied in connection with the inspection and grading which
is done to raise the average quality and better the reputation of the
article exported. Angola has a heavy duty on the exportation of un-
cleaned coffee, while in French Oceania the duty on vanilla is rather
in the nature of an inspection fee.*
RATES.
The rates of export duties are generally low as compared to those
of import duties levied in protective tariffs. Few export duties ex-
ceed 10 per cent ad valorem and they average much less than that. In
Zanzibar, however, cloves are dutiable at 25 per cent, and in German
East Africa. 15 per cent was levied upon several products. The Dutch
East Indies have export duties chiefly of 5, 8, and 10 per cent ad
valorem. The East Coast of Africa from the Sudan to Mozambique
has almost exclusively ad valorem duties, but the British and French
colonies of West Africa have generally specific duties, as have the
British West Indies, Ceylon, Fiji, and some others.
DIFFERENTIALS.
Differential features do not appear so frequently in export as in
import duties. The open-door colonies naturally have no such differ-
entials, nor are such generally found in the preferential colonies. In
the Portuguese colonies alone may they be said to constitute a
mational policy. More or less extensive use of them, however, is found
in certain individual colonies of other powers—in French Indo-
112 India is one of the world's greatest sources for hides and skins. There has always
been a local tanning industry, but great quantities of foreign leathers and leather goods
are regularly imported. During the War Government, orders gaye a great stimulus to the
tanning of hides, but the tanning of skins was prohibited. Protection was thought neces-
sary to maintain the one industry and to revive the other. (See p. —.)
lig And on these latter and on leather goods generally there is an import duty of 10 per
cent without the usual differential in favor of Italian products. e
114 See Commerce Reports, Jan. 7, 1921, pp. 120–123, for the grading and Standardization
of exports from the Philippines.
52 COLONIAL TARIFF POLICIES.
China, in Spanish Fernando Po, and in Italian Somalia.” In cer-
tain British colonies a few isolated items are found subject to differ-
ential export duties. Indo-China is an important French colony, but
it is only one among twenty; the Spanish and Italian colonies named
are of small importance. The French preference is limited to goods
transported directly; the Spanish preference to goods shipped in
Spanish vessels. The Portuguese duties and the British are, there-
fore, those that are important, the Portuguese because they cover most
of the colonial field, the British because, with the exception of those in
the Federated Malay States, they are recent, and because they indi-
cate a tendency toward a monopolistic policy in the use of raw mate-
rials. The differential portion of these duties is remitted only when
guaranties are given that the next step in the manufacture of the
article will be taken within the Empire. The rate upon tin ore from
the Federated Malay States is prohibitive, and that upon palm ker-
nels from British West Africa was intended to be prohibitive. The
smelting of the tin and the crushing of the palm kernels is thus re-
stricted to the British Empire, but no tariff restrictions have been
imposed upon the tin or the palm-kernel oil.
The differential is the whole of the export duty in Indo-China. "
and in Fernando Po. The differential on raw hides is in Somalia
one-half of the 10 per cent duty, and in India two-thirds of the 15
per cent duty; i. e., 5 and 10 per cent ad valorem, respectively. The
duties on tin-ore and palm kernels are preferential Surtaxes on pre-
viously existing, nonpreferential export duties.
In Indo-China the export duties are very small. In Fernando Po
the duty on cocoa is nearly 1 cent per pound. Except for one or two
prohibitive British duties, the rates are highest in the Portuguese
system; the differentials on coffee and cocoa from Sao Thomé and
Principé come to about 2 cents per pound. In Angola and Mozam-
bique several duties of 15 or 20 per cent are found, and the war sur-
taxes brought the rates on edible oils from Angola up to 26 per cent
and 6 per cent upon exports, respectively, to foreign countries and to
Portugal. The smallest differential in the Portuguese system * is
50 per cent of the duty, in Mozambique and the Cape Verde Islands,
and greater differentials are characteristic—rates of 2 or 3 per cent
upon exports to the mother country, compared with 10 or 15 per cent
on exports to other destinations. ~ -
It will be seen that these rates make the amount of the differential
in the case of the Portuguese colonies approximately as much as the
total duty exacted in the colonies of other countries. Certain of
these differentials are limited to goods transported in national ships,
notably upon products exported from Mozambique, Sao Thomé and
Principé. In these cases, produce exported to foreign ports in Portu-
guese vessels also receives a preference but at a much smaller rate—
10 per cent of the duty in Mozambique and about one-third of the
duty in Sao Thomé and Principé.
115 The peculiar Philippine system was abolished in 1913. Under this system the rebate
on exportations to the United States consisted of the amount of the duty payable accord-
ing to the tariff schedule of the United States. On manila, on which there was no duty
in the United States, the rebate was the whole of the export duty. Cigars exported from
the Philippines are now paying 15 cents a thousand, the receipts to be expended for adver.
tising Manila cigars in the United States.
* Except that the most important export of Indo-China, rice, pays an additional duty
regardless of destination.
117 Some of the smaller Portuguese possessions have no differential export duties and in
the other colonies a few articles may be exported free regardless of destination. R
INTRODUCTORY SURVEY. * 53
9. INTERCOLONIAL TRADE.
Outside the British Dominions and the British West Indies, which
have determined their own special tariff relations with each other
and with the other British colonies, the general rule is that inter-
colonial trade is treated on the same basis as trade with the mother
country. In some cases foreign products reexported from one colony
to another pay in the second the difference in the rates of duty, if
the second has the higher rates. Assimilated colonies, being within
the tariff barriers of the mother country, naturally have free trade
with each other, while open-door colonies naturally levy duties on
intercolonial trade as on all other. In the French colonial system
the rule of intercolonial free trade is extended to all the colonies.**
So, also, in the United States: As Porto Rico is within the national
tariff walls, its products enter the Philippines free and Philippine
products enjoy the same advantages in its markets.” The Portu-
guese colonies generally give the same preferences to products arriv-
ing from or destined to other Portuguese colonies as they give to the
trade with the mother country, but there are exceptions.
Italian Somalia gives special rates to four products of Eritrea, but
of these that on coffee is only 8 per cent against 10 per cent on foreign
coffees, while the Italian product enters at 1 per cent. Among the
Spanish colonies is found the only instance outside of the British
Empire of a colony granting to another colony a favor which is not
extended to the mother country: The Canary Islands levy upon
Spanish products (except sugar) equally with all others, but they
grant preferential rates to the coffee and cocoa of Fernando Po, the
differential being about 2 cents a pound on cocoa and somewhat
more on coffee. The open-door colonies of Great Britain and Hol-
land have, as those of Germany had, no special provisions for inter-
colonial trade and levy duties thereon at the same rates as upon any
other imports. Belgium having only one colony has no intercolonial
trade.
The British Empire.—In the British Empire the preferential tar-
iffs established in 1903 by New Zealand and in 1920 by Cyprus were
made immediately applicable to all products of the Empire. In cer-
tain other cases preferential rates granted primarily to Great Britain
or to Canada have been extended to portions of the intercolonial
trade, freely or after negotiating special arrangements. Canada ex-
tended her preferences to New Zealand in 1904 (reciprocating New
Zealand’s action of the previous year) and to the British West Indies
without return from 1898 to 1913) and to most of the other British
rown Colonies from time to time (1898–1913).
Trinidad in 1917 extended her preferential schedule to the whole
Empire, and in several other instances, mainly in 1920–21, West
Indian Colonies have extended their preferences beyond the text
of their agreements in respect to the rate of the preferences or the
118 For the exception in regard to French India, see p. —. This freedom of trade among
the French colonies refers only to customs duties, not to octrois and consumption duties.
Technically, therefore, it covers even the colonies in which the open door is guaranteed
by treaty, inasmuch as they levy no “customs duties" in the French sense, but only those
other duties which fall equally on goods from all sources.
110 Products of the Virgin Islands and Samoa, which are not within the national tariff
walls, are dutiable in the Philippines as foreign goods, but products of Guam are exempt
by sº of the Philippine Legislature. (Act No. 2779, approved by the President, May 6,
1918.
54 COLONIAL TARIFE POLICIES.
number of favored products or the parts of the Empire to whose
products the preferences were granted. With these exceptions,
New Zealand, Cyprus, and to a lesser extent Canada and some of the
West Indies, the intercolonial trade of the British Empire does not
rest upon the basis of the preferences granted to the mother country,
except in so far as special agreements have been concluded, agree-
ments which may include special concessions. These special conces-
sions are normally ” extended immediately to the mother country
and to other Dominions or colonies entitled to preferences; but as
they relate to articles in which the parties to the agreement are par-
ticularly interested, such extension is relatively unimportant. The
West Indies have made agreements only with Canada, and Aus-
tralia * only with South Africa, otherwise the intercolonial trade
of the Dominions and the West Indies generally receives the benefit
of preferential rates, as may be seen in Table 9. In this summary of
the imperial preferences of the British Empire the dates are those of
the introduction and the chief revisions of the preferential rates and
the preferences which have been extended only after negotiation and
agreements are indicated by “Agr.” 1906–7 and 1912–13 indicate
agreements which were negotiated in one year and became effective
in the following year. - -
TABLE 9.—Tabular view of British Empire preferences.

TO .” To some
United. To Canada. To New To Aus. | Tºšouth ||.To British . all
& . -- ~ 1 & • * XI race i- Trn zºli Other
.# Zealand. tralia. Africa. West Indies. 6.
Colonies.
Preferences granted—
1898 # 8A 1898.
1900 • * 1912–13 Agr | 1907.
By Canada.-------------- 1904 1904 1904 Agr. 1920–21 Agr | 1913.
1903 - -
By New Zealand. {i,j | The whole empire.
1917

1903
By South Africa......... 1906 1904 Agr. 1906–7 Agr. 1906 Agr.
1915 &
1907 1906 Agr. t
1908
By Australia. ----------. 1911
1914
1920
& & # - & 1913 1912–13 Agr.
By British West Indies a. 1920–21, 1920–21 Agr.
By United Kingdom, 1919 } The whole empire.
By Cyprus, 1920. . . . . . . . .
a The colonies which ratified the agreement of 1912 were Barbados, Trinidad, British Guiana, Grenada,
St. Lucia, St. Vincent, Antigua, Dominica, Montserrat, and St. Čhristopher N evis. The agreement of
1920 has been ratified by all the parties thereto except Bermuda, whose legislature has declined to ratify.
Some of the West Indies have extended their preferences to other West Indian Colonies, or to the whole
I’mpire, but these details are omitted from the table. See chapter on the Crown Colonies and India,
p—.
120 The exceptions are the special concessions of New Zealand and Australia to South.
Africa. • *
121 Australia's concessions to South Africa were limited. (See p. —.)
INTRODUCTORY SURVEY. 55
10. TREATMENT OF COLONIAL PRODUCTS IN THE HOME MARKET.
GENERAL OBSERVATIONS.
The differential treatment of colonial products in the home market
of a colonial power does not present to the other industrial nations
problems of the same character and magnitude as do the differential
import and export duties in the colonial markets. This is due to the
nature of the products of the colonies, the relative fewness of the
protective duties levied upon them, and to the difference in the
effects of such duties from those of duties on manufactured products.
In so far as duties are levied upon colonial products in the home
market, and are effective, it is the competing colonies rather than the
mother countries which are interested.
Colonial exports are generally raw materials or foodstuffs. In
most countries these are on the free list or are subject only to very low
duties, and consequently as a rule important preferential reductions
of import duty in favor of colonial products can not be made in the
mother country. But there are three classes of exceptions, and, since
colonies so frequently export a limited range of products, for some
colonies the exceptions are much more important than the rule.
First, some of the products, particularly of the semitropical and non-
tropical colonies, are the same as those of Europe, and such products
may be affected by duties levied for the protection of agriculture.
The tropical colonies also are interested in the protection accorded
to beet sugar and tobacco. Second, even upon articles which it does
not produce, the mother country may impose duties with the specific
object of protecting the market for colonial products (French duty
on rice, Portuguese on rubber). Third, the tropical foodstuffs known
in Europe as “colonial products”—tea, coffee, cocoa, Vanilla, spices—
are usually subject to revenue duties which are high compared to the
usual rates of protective duties, sometimes even exceeding 100 per
cent ad valorem. - -
France and Algeria afford a striking example of the first excep-
tion. Algerian exports may be divided into two classes: First, wines,
cereals, animals, vegetables, and fruits; and Second, Ores, phosphates,
fibers, hides, cork, and Some others. The first class generally en-
counter protective tariffs on the continent of Europe, but they enter
France free under the protection of the French tariff on similar
foreign products; the second class may also enter France free, but
in competition with similar products from all other sources, like-
wise free, while most other markets are also open to these products.
The result is that the great bulk of the first class goes to France,
while the larger part of the Second class goes to foreign countries.**
The tropical colonies are generally most interested in the duties
on “colonial products.” These products are usually highly taxed in
all markets and, as the duties are not usually protective of home
interests,” the chief opposition to granting a preferential reduction
is apt to come from the officials of the treasury. On the other hand,
the rates of these duties are usually so high that even if a full exemp-
* This is the result in this case ; it is of course not meant that in all cases those
coloſiial exports which receive a preference in the mother country find that their chief
markets while the nonpreferential exports go largely to other countries.
* Except in the case of Sugar and tobacco, whose claim to inclusion with “colonial
products " may be disputed,
56 COLONIAL TARIFF POLICIES.
tion is not granted to the “colonial products” a reduction of the
duty gives a preference whose absolute amount is sufficient to give
control of the trade. The British preferences reduce the rates by only
one-sixth, as it was estimated that a greater reduction was unneces.
Sary. -
It should be noted, however, that the question whether the con-
Sumers in the mother country or the producers in the colony receive
the chief benefit of the preferential rate depends mostly (if compe-
tition be free) on whether the favored colonies supply or do not
supply the whole demand of the mother country. If they do not,
the producers are likely to receive most of the benefit, even though
all other markets are free to the products in question. There may,
however, be intermediate agencies which absorb much of the benefit,
e. g., shipping companies in cases where the preference is granted
only for products transported in national vessels. The industrial
nations as distinguished from their colonies have comparatively little
direct interest in the tariff favors which their competitors give to
their colonies. In so far as the colonial products are raw materials
for manufacture, if the United States, for instance, admits them free
from all sources, the preferential free admission by other countries
of the same products from their colonies (importation from other
sources being dutiable) gives these other countries no competitive
advantage and may by limiting the sources of their raw materials
give the United States an advantage. But the American market for
foodstuffs may be slightly narrowed, e.g., by the French differential
duties on cereals and vegetable oils. -
Manufactured articles are exported in considerable quantities from
no colonies except the British Dominions and India, and of the total
export only a small proportion goes to Great Britain. Since the list
of manufactures which are dutiable in Great Britain is very short,
the present effect upon American trade of differential duties upon
manufactures entering the markets of the colonial powers is very
small. The conclusion seems warranted that the preferential tariffs
of the mother countries are without immediate and direct effects of
importance upon the commercial rivals of these countries. But such
tariffs may have important effects in the long run. In so far as they
are effective in creating a specially favorable market for colonial
products, they stimulate the development of the colonies along cer-
tain lines, and the competition of the favored colonies may eventually
become of importance. Secondly, tariff rates which attract the
products of the colonies to the mother country build up direct ship-
ping connections and give the exporters of the mother country an
advantage in competing for the import trade of the colonies.
POLICIES OF THE COLONIAL POWERS.
With due allowance for the differences in the character of the
trade to and from the colonies, the policies of the different powers
in regard to preferences to colonial products in the home market are
fairly consistent with their policies in regard to preferences in the
colonial markets. In both markets there is a free list, which is at
the same time nonpreferential for those articles whose exemption
from taxation seems to offer a balance of advantage. In the colonies
machinery and other aids to economic development are usually free,
INTRODUCTORY SURVEY. 57
while in the mother country it is raw materials which are free.
Since “colonial products” are generally taxed, and since a trade
study has not yet been made, it is impossible to say whether the
countries which give a preference put a protective barrier about a
larger proportion of their exports to their colonies than of their
imports from those colonies. Colonies exporting “colonial prod-
ucts” receive greater preferential advantages than do those which
export rubber, ivory, ores, phosphates, copra and other oil producers,
wood, hides, cotton, jute, and other fibers.
The countries which generally maintain the open door in their
dependent colonies have granted no preferences in their home mar-
kets except the few introduced by Great Britain in 1919. The powers
which maintain preferential rates for their own products in the
colonial markets have all granted certain favors also to colonial
products in the metropolitan market, though these latter do not ap-
pear to be so great as the former. The benefit of these favors is also
made contingent in some cases upon transportation in national ves-
sels. Generally speaking, the favors to products of the assimilated
colonies are greater than those to products from the colonies where
the products of the mother country receive more limited * prefer-
ences. Thus colonial products from the assimilated colonies of
France,” Japan, and the United States enter the mother country
free. Among the products of the preferential colonies those of the
American colonies alone enter the mother country entirely free.”
The other preferential colonies, French, Spanish, Italian, and Portu-
guese, as well as those colonies of France, Spain, and Portugal where
by exception the open door is in force, receive for their products
various favors short of entire exemption from duty. A special
Spanish law enumerates and exempts most products of the Canary
Islands, Rio de Oro, and Spanish Morocco, but American Samoa is
the one open-door colony whose products are entitled to free admis-
sion to the mother country, regardless of their nature.”
Products of all the nonassimilated French colonies according to
the law of 1892 paid the French minimum duty, i. e., the rate paid
by the same products from the most-favored foreign countries. Since
1892 numerous preferences have been introduced, both by general
modifications, such as that by which colonial products were exempted
from the increases of rates in 1910, and by specific exemptions, par-
tial or entire, for certain products of certain colonies. #. B.
tectorate of Morocco is, however, still treated for tariff purposes as
a foreign country.***
The general rule for the Portuguese colonies since 1871 has been
that their products enter Portugal on payment of one-half of the
ordinary duties, but since 1892 this reduction has been limited for
most of the colonies to goods transported in Portuguese vessels. By
exception, a few articles enter free. As the Portuguese tariff levies
124 See note on tº: .72. What is here meant is that the free admission of colonial prod-
ucts, as in , the United States, France, and Japan, is a greater favor than the partial
exemption from duty, e. g., in Portugal. But a statistical examination of the colonial
trade under prevailing rates of duty might show cases in which the partial exemption
. : greater importance than the entire exemption granted to products of other
COIOInleS.
* For fiscal reasons, France long maintained important exceptions, but since Jan. 1,
:* these exceptions have been reduced in number and they are now confined to sugar
El D epper. .
.# the case of the Philippines various limitations on this freedom were in force until
913.
127 See Chapter III, p. —.
58 CoLONIAL TARIFF POLICIES.
duties on raw cottom, hides, rubber, and some other items, and very
high duties on coffee, tea, and sugar, these preferences were, before
the war, of considerable importance, particularly those on coffee, tea,
sugar, and raw cotton, preferences which came to about 4 cents, 20
cents, 3% cents, and 13 cents per pound, respectively.
From Spanish Guinea most of the colonial products actually ex-
ported enter Spain free with the exception of coffee and cocoa, which
receive differentials of about 3 and 6 cents per pound, respectively.”
Cocoa, however, constitutes 98 per cent of this trade, so that the
characteristic preference is a differential not unusually high on a
percentage basis but very high in absolute amount. Practically all
the products of Rio de Oro, Spanish Morocco, and the Canary Islands
enter Spain free. - - t
The Italians have granted tariff favors only to imports from
Eritrea. About a dozen articles enter free from that colony under
the protection of duties levied on similar products of all other origins.
Perhaps the most important item (wheat) was removed from the list
by the law of April, 1915, though at the same time Eritrean cattle
were given a small preference by the imposition of a special duty on
them by weight instead of by head. -
Preferences in the home market are closely related to differential
export duties in the colonies, and the two must be considered to-
gether. But they are not interchangeable, and although their effects
are likely to be cumulative if both are in force at the same time, their
separate and individual effects may be different. For instance, a differ-
ential import duty in Great Britain upon palm kernels would have no
effect either upon the British crushing industry or upon exportation
from the West African colonies as long as West Africa remained the
chief source of supply and the German and other large markets were
open. A differential import duty in Great Britain upon the finished
product (the oil), if high enough, would transfer the crushing in-
dustry to Great Britain to an extent sufficient to supply at least the
local market; * while the differential export duty in the colony, if
the rate proves to be high enough and if it is not offset by counter-
measures in other countries, will transfer to Great Britain the crush-
ing industry for the whole supply from the British West African
colonies. The benefit of a differential export duty in a colony is
likely to accrue to consumers or manufacturers of the mother country;
the benefit of the mother country’s differential import duties is likely
to accrue to the colonial producer. In the case of the Portuguese
colonies, where differentials both in the colonial export duty and in
the home import duty run through the whole system, it would appear
that the effect of these duties is cumulative and that the high rate of
both differentials renders the total differential higher than any found
in any other system. -
In conclusion, the policies of the different countries in regard to
the differentials affecting trade from the colony to the mother coun-
try may be summarized as follows: Belgium and Holland maintain
preferences neither in the export duties of their colonies nor in the
import duties of the mother country. That was also the policy and
practice of Germany. Great Britain allowed no differential export
* 25 per cent and 58 per cent of the ordinary duty.
** Or it would drive the consumers to the use of substitutes.
INTRODUCTORY SURVEY. 59
duties in her colonies until one appeared in 1903; a few others have
been added during the war; but in the home market no preference
was extended to colonial products until the summer of 1919. Eritrea.
enjoys free entry to the Italian market for a dozen of her products,
and several products of Somalia, including the most important, have
differential export duties. But Libian exports to Italy have received
no favors. None of these powers, therefore, has any thoroughgoing
policy of favoring importations from its colonies.
On the other hand, Spain grants free importation to nearly all
the colonial products actually imported, and on the chief exception—
cocoa from Fernando Po—there is a large import differential re-
enforced by a considerable differential in the colonial export duty.
The Portuguese preference in the home market is generally 50 per
cent of the high duties in force, and this is reenforced by a compre-
hensive system of differential export duties in the colonies. France
and Japan grant free entry to the products of their assimilated
colonies and France grants to the other and less important colonies
favors of considerable importance; but she limits differential export
duties to Indo-China, and there the rates are low. The United
States alone grants free entry to the products both of its assimilated
colonies and of its other possessions; the United States “” and Japan
have abolished export duties in their colonies. In respect, therefore,
to trade from colony to mother country, the powers are divided into
those which give few or no preferences to imports from their colonies
and those which have relatively complete systems of large differen-
tials. In this case Italy is found with the nonpreferential powers,
otherwise the grouping is the usual one. The imports from the
colonies are favored chiefly by exemptions, partial or entire, in the
home market. Portugal alone has a comprehensive system of export
preferences.
11. PREFERENTIAL TARIFFS IN FAVOR OF NATIONAL SHIPPING.
The scope of this report does not call for a study of the general
policies pursued by the nations in regard to shipping. Certain
points, however, which relate to colonial trade have been noted, and
may be summarized here.
As already explained, where tariff favors are limited to goods
transported in national ships or transported directly from the place
of origin, this limitation is imposed for the benefit of the merchant
marine and offsets rather than supplements the favors conferred on
colonial trade. For in general any limitation or condition attached
to a favor operates to decrease the value of the favor; and the
mere fact that a shipping restriction is imposed indicates that at
least at the time of its imposition it was believed that a part or
all of the colonial trade would find it more advantageous to use other
than national vessels. Accordingly, a policy devoted to the stimula-
tion of colonial trade calls by implication rather for freedom in the
choice of transportation routes and agencies than for restrictions
on them, and those countries which impose navigation restrictions
do so because they foster their shipping with even more zeal than
their colonial trade. It is evident, however, from the fact that ocean
* Except in the virgin Islands.
48748°—21—5
60 COLONIAL TARIFF POLICIES.
freights for even the longest commercial routes are normally only
a fraction of the value of most commodities, that tariff favors may
easily be large enough to determine the course of the trade in spite
of such shipping limitations as are likely under normal conditions
to be attached to them.
f ...tiºn policies in regard to shipping may be distinguished as
OJIOWS : -
1. The trade between the mother country and its colonies and the
intercolonial trade may be open to all vessels without discrimination
(Great Britain, Netherlands, Belgium, and Germany).
2. This trade may be open to vessels of all nationalities but duti-
able merchandise may receive the preferential tariff rates only when
it is transported “directly ’’ from the country of origin (France and
British Dominions and Colonies).
3. This trade may receive preferential tariff rates only if carried
in national vessels or may receive additional preferential reductions
if so carried (Portugal). -
4. This trade may be restricted to national vessels independently
of tariff regulations (Spain, and in part the United States, Por-
tugal, and Japan).
As the open-door colonies have no preferential tariffs, their ship-
ping regulations have not been made the object of special investiga-
tion. Even after the introduction of certain preferences in Great
Britain and in some of the Crown Colonies, the British have im-
posed no shipping restrictions upon the coastwise trade of Great
Britain, upon the trade between Great Britain and the colonies, or
upon the intercolonial trade. The Dominions regulate their own
coastwise trade and have their own shipping laws. Belgium and
Italy do not, and Germany did not, restrict to the national flag the
shipping engaged in the colonial trade, though they all grant or
granted subsidies, subventions, or some kind of indirect aid.”
The Netherlands allow the vessels of “reciprocating countries” ”
to engage in the trade between the Netherlands and their colonies.
In the Dutch East Indies 80 ports are open to general trade and in
the ports of territories not under direct Dutch administration foreign
vessels may engage in the coasting trade; but the right is reserved
to the Dutch Government to forbid this coasting trade to “ships be-
longing to (registering from) the realm in Europe or the Dutch East
Indies.” 133 - - -
Except Italy, all the countries which systematically * grant pref-
erences in their colonial trade pursue a restrictive policy in regard
to shipping engaged in that trade. Most sweeping are the restric-
tions of those countries which prohibit, by general laws regardless
of tariff preferences, all use of foreign vessels in colonial trade.
These countries all limit coastwise navigation to national vessels.
131 Only one instance has been encountered in the course of this study in the way of a
shipping restriction in the colonies of these countries; a virtual monopoly of harbor rights
in German Southwest Africa was granted to a German Steamship company under the
guise of regulating the loading and discharging of vessels.
132 Apparently this means colonial powers which permit Dutch vessels to engage in the
carrying trade between the mother country and its colonies, and also noncolonial, powers.
138 Law No. 477, 1912. In addition to the ports open to general. commerce there are
“inland harbors” open only to Dutch and native vessels, but “ the governor general is,
under pressing circumstances, empowered to open the excluded coasting:trade ports to
ships already permitted the entry into the general ports for Specific trips in carrying
specified cargoes.” g . . . .
134 Excluding Great Britain, in whose colonies preferential tariffs are the exception
rather than the rule. -
INTRODUCTORY SURVEY. - 61
The United States assimilates trade to and from Porto Rico with
coastwise trade, but owing to lack of shipping this rule has never
been applied to the Philippine Islands, and by the merchant marine
act of 1920 such application was postponed until Feb. 1, 1922.” . . .
Japan restricts her trade with Formosa to Japanese vessels, but
the coastwise trade of Korea and its trade with Japan have been left
open to all comers.” *
Spain restricts the trade between the mother country and the
colonies to Spanish vessels, and in addition grants preferential tariff
rates upon imports made directly from the colonies in Spanish ves-
sels, i. e., the tariff reduction is used to build up direct connections
with the colonies and is not granted to colonial products brought to
Spain in Spanish vessels unless the voyage is direct within the mean-
ing of the laws and regulations upon that subject. * *
In the Portuguese colonial trade a great variety of regulations are
in force. Foreign vessels have been allowed to participate since 1877.
in the coasting trade of Mozambique; since 1880 in the trade between
Macao, Timor, Portuguese India, and Mozambique; and since 1881
in the trade between Portugal and these four colonies east of the Cape
of Good Hope.” Except for the routes just enumerated, foreign
vessels are excluded from the intra-imperial trade of Portugal; that
is, from the routes between Portugal or a colony west of the Cape *
and other Portuguese territory of the same region, to which may be
added the coastwise trade of Angola” and the interisland trade of
the Cape Verde Islands. But while foreign vessels are admitted to
certain trade routes within the Portuguese Empire, as well as to the
trade between the ports of the empire and non-Portuguese territories,
the use of Portuguese vessels in these routes is encouraged by differ-
135 Section 21 of the merchant marine act reads as follows: “That from and after
February 1, 1922, the coastwise laws of the United States shall extend to the island Ter-
ritories and possessions of the United States not now covered thereby, and the ſ shipping]
board is directed prior to the expiration of such year to have established adequate steam-
ship service at reasonable rates to accommodate the commerce and the passenger travel
of said islands and to maintain and operate such service until it can be taken over and
operated and maintained upon satisfactory terms by private capital and enterprise : Pro-
vided, That if adequate shipping service is not established by February 1, 1922, the Presi-
dent shall extend the period herein allowed for the establishment of such service in the
case of any island Territory or possession for such time as may be necessary for the
establishment of adequate shipping facilities therefor: Provided further, That until Con-
gress shall have authorized the registry as vessels of the United States of vessels owned
in the Philippine Islands, the government of the Philippine Islands is hereby authorized
to adopt, from time to time, and enforce regulations governing the transportation of
merchandise and passengers between ports or places in the Philippine Archipelago : And
provided further, That the foregoing provisions of this section shall not take effect with
reference to the I’hilippine Islands until the President of the United States, after a full
investigation of the local needs and conditions, shall, by proclamation, declare that an
adequate shipping service has been established as herein provided and fix a date for the
going into effect of the same.” (Statutes at Large, 1919–1920, p. 997.)
180 This was in accordance with the pledge made at the time of the annexation of Korea
(1910) to maintain the status quo for ten years. This period has expired but, no infor-
mation is available to show that the Korean coastwise trade and the Korea-Japan trade
has been closed to foreign vessels. --
137 The law of 1881 opened all trade between Portugal and her colonies, but in 1885 the
intra-imperial trade west of the Cape was again closed to foreign vesse's, Strictly the
trade between Portuguese India and Mozambique was not opened until 1881.
* West African timber, however, which enters free, need not come in Portuguese vessels,
and since April 28, 1919, the same rule applies to the maize admitted free from the
colonies. Cotton, which likewise receives greater favors than the usual 50 per cent
differential, must be transported in vessels making regular trips between Portugal and
the colonies. This last distinction is found also in application of the differential ton-
nage duties of the Cape Verde Islands and Portuguese Guinea. If all the regular lines
connecting Portugal and the colonies are Portuguese, this discriminates against Pörtu-
guese and other tramp vessels. - -
* Foreign vessels generally have the right by treaty to discharge part of their cargo
in one port and carry the remainder to other ports. A cargo transshipped for the coast-
wise trade of Angola may be transferred only to a Portuguese vessel and there are re-
quired of foreign vessels formalities which are not required from Portuguese Vessels :
making such transshipment. . . - . . ." - -
62 COLONIAL TARIFF POLICIES.
ential tariffs. Thus the 50 per cent differential in the import duties
levied in Portugal on colonial products is limited to those transported
in Portuguese vessels. The duties levied upon exports from the
colonies, particularly those imposed in 1916 or later, not only limit
the differentials on exports to Portugal to shipments made in Portu-
guese vessels, but also grant a smaller differential to exports to for-
eign countries in Portuguese vessels. Preferences of this kind are
found in the export duties of Mozambique, Sao Thomé and Principé,
and in the coffee duty of Angola.” The maize of Angola pays an
export duty whose only differential is in favor of Portuguese ships
regardless of their destination. It will be seen that the favors to
Portuguese vessels affect chiefly the trade from the colonies to Portu-
gal, being found both in the import duties of Portugal and in the
export duties of the colonies. There are few shipping restrictions
in the import duties of the colonies. -
In the French system “direct” importation from the country or
colony of origin rather than transportation in French vessels is the
characteristic requirement for all imports which pay rates lower than
those of the general (maximum) tariff. This requirement is enforced
both in France and in the assimilated colonies, and is not limited to
intra-imperial trade but is part of the general commercial policy of
France.” Colonial products, other than industrial raw materials,
are dutiable at high rates under the French general tariff and the rule
which restricts lower rates to merchandise imported directly, effec-
tively prevents these products from being imported from French
colonies through European entrepôts. The same object is sought in
regard to imports of raw materials, with a few exceptions, from all
non-European sources by means of special Surtaxes on the importa-
tion of non-European products through European ports.” This lat-
ter provision, especially, is a counter measure to the Spanish and Por-
tuguese preferential tariffs, which are designed to make the ports of
those countries entrepôts for the products of their colonies. The rule
of direct importation operates in favor of French shipping (see p.
—) and it is replaced by a legal prohibition upon foreign shipping
only in two cases: In the Franco-Algerian trade,” which is con-
sidered part of the coastwise traffic of France, and in the importation
of those products of Tunis, which receive tariff favors in France.
Except in the Algerian trade, therefore, the French shipping restric-
tions are found exclusively in connection with tariff favors.
Foreign vessels engage freely in the trade between France and the
colonies other than Algeria and in intercolonial trade, and, except
on certain importations from Tunis, if they ply “directly” between the
140 Exports from Mozambique in Portuguese vessels receive a reduction of 50 per cent
of the export duties if the destination is Portugal and of 10 per cent for any other desti-
nation. Coffee and cocoa from Sao Thomé and Principé, pay about one-third of the full
duty if shipped to Portugal in Portuguese vessels, but if shipped elsewhere in the same
vessels they pay about two-thirds of the duty. * {
* The “minimum ” tariff rates (i.e., the rates of the second column of the tariff, not
the special reductions granted to products of French, colonies) have been granted to many
countries by treaty, but always with the limitation that these rates are to be enjoyed only .
by merchandise transported directly from the country of origin to France. “Directly "
has received both in the foreign trade and in , colonial trade various modifications—e. g.,
importation through another Country also entitled to the minimum tariff rates is allowed.
Specific exceptions are also made—e. g., transshipment at San Francisco for French
Oceania is permitted. -
142 ºuets of the . Cape Verde Islands imported through Funchal, Madeira, are an
exception. . ! . . . . ; - -
* This restriction was suspended in 1915, and is to remain suspended for two years.
after the War. ". . .
INTRODUCTORY SURVEY. 63
ports—practically confining themselves to this trade—the merchan-
dise which they carry is admitted on payment of the same duties as
that carried in French vessels. However, many colonial products
in France receive no tariff favors, either because they are on the free
list regardless of origin or because they are listed with a single rate
of duty, which is paid alike by the products of the nonassimilated
colonies and those of foreign countries. These goods may be im-
ported into France in foreign vessels either directly, or indirectly
without a tariff penalty; * and actually the participation of foreign
vessels in the trade between France and her colonies is confined
almost wholly to these articles. As all products of France enter her
colonies free, and as the general free lists of these colonies are lim-
ited, foreign vessels are practically excluded from the trade in that
direction. - -
Canada, Australia, and the British West Indies also confine their
preferential rates to products transported “directly,” either from
the country of origin or from some other British country. Canada
gives a commercial rather than a geographic interpretation to the
word “directly,” so that goods consigned to Canada by way of New
York or other non-British ports receive the preferential rates.
Port and tonnage dues and fees for various services, such as pilot-
age, sanitary inspection, and measurements, are sometimes levied on
a differential basis. Differentials in these dues, however, are rare
outside of the Portuguese colonies, which generally discriminate
either between national and foreign ships or, regardless of nation-
ality, between tramp vessels and those which give regular services
between the colony and Portugal.
12. DISCRIMINATIONS IN MINOR DUTIES AND IN METHODS OF
Mºtion AND PAYMENT; CONCEALED PREFERENCES-SUM-
RY.
While this study is directed primarily toward the preferences ex-
plicitly set forth in the laws and exhibited in the schedules of the
customs tariffs, numerous other methods and instruments of dis-
crimination against foreign trade have necessarily received some at-
tention. These may be classified as (a) open discriminations either
in the minor duties and fees collected at the ports of entry or in the
requirements for the valuation of goods and for the payment of
duties or in the formalities required in the transactions, and as (b)
concealed preferences or “jokers” of various sorts, such as discrimi-
natory classifications and preferential selection of dutiable articles.
An open discrimination may be defined as one in which some such
word as “foreign º’ or “national’’ is used, so that the text of the
law or regulation reveals the existence of the differential treatment;
but where the name of a particular foreign country or city is used
in connection with specific articles it will generally be found that
the name has come to indicate a type of article, and is used in the
tariff schedule as a trade name, and not as a geographical term,
e.g., Mocha coffee, Panama hats, Italian cloths, Brussels carpets,
Nottingham lace, and China ware. Amd even where the place name
14. Except that if imported indirectly nearly all products pay the surtax of indirect
inportation. The most common rate of this surtax is 3.60 francs per 100 kilos. (At
normal exchange about 33 cents per 100 pounds.)
*
64 COLONIAL TARIFF POLICIES.
has not become a trade name, and where the whole of the product
comes from one country, the separate designation may be defensible
if the product has distinct characteristics and differs noticeably in
quality and value from similar products of other countries. A con-
cealed discrimination is one which results from the actual applica-
tion of rules and tariff schedules whose phraseology and construction
give no appearance of partiality, i. e., which use no terms denoting
nationality or location. These concealed discriminations are revealed
usually only by a comparison of the tariff Schedules with the exist-
ing trade. For instance, it is found that the French limitation of
tariff favors to colonial products transported “directly ’ differs in
no great degree in its results from the provision found elsewhere
that the transportation must be in national vessels.
Classifications may conceal discriminatory treatment.” For in-
stance, the division of wines into those valued at 6 shillings and more,
and those valued at less than 6 shillings, may constitute an effective
method of discrimination in favor of Australian wines, but it is not
an open preference, such as naming Australian wines specifically
and separately in the tariff schedules and granting them a rate lower
than that on other wines. Accordingly, a knowledge of the nature,
value, and origin of the various products at least as intimate as that
implied in the details of the tariff classification is necessary to render
it possible to recognize which of these classifications are discrimi-
natory and which of the discriminations are really warranted by
differences in the character or value of the classes of commodities
differentiated. Thus a duty upon mineral oils levied upon oil im-
ported in containers, at a rate per gallon twice as great as that upon
oil imported in bulk, discriminates against the former only in case
the container is worth less than the oil contained, and in case im-
ortation in bulk is the method characteristic of national firms, and
importation in cans is the method used by their foreign rivals.”
Less effective as a discrimination in favor of national goods is the
effect produced by selecting articles imported mainly from foreign
countries or exports to foreign countries for taxation, or higher taxa-
tion, and leaving the chief products exchanged between the colony and
the mother country free or at lower rates. In so far as distinct classes
of articles compete with each other, this discrimination may be of ad-
vantage to national trade. For instance, if beer is dutiable at 29
per cent and brandy at 185 per cent (as it was in German Southwest
Africa) the consumption of French brandy is likely to be curtailed in
favor of German beer. Where there is a greater difference in the char-
acter of the articles, as, for instance, between cereals and meats, or silks
and cottons, or cement and iron, the competition is, as a rule, not suffi-
ciently direct to render this form of preferential classification effec-
tive. - -
* Discriminatory treatment means, in this instance, treatment which distinguishes
national or colonial products for the purpose of assigning to them separate rates in the
tariſſ schedules. The extent to which it may be considered legitimate to classify cheaper
wines separately and give them a lower tariſſ rate is suggested in the discussion on p. —.
* The illustration is suggested by the Mesopotamian duty upon oils, which, it is alleged,
discriminates against, oils imported in containers, but which is, so the British assert,
simply the result of the reduction of the ad valorem rate of 11 per cent to specific terms.
It is evident, however, that any changeš in the relative value of the oil and the containor
will aſſect in one direction or the other the equal operation of the specific rates as pre-
viously fixed and nullify in practice the impartiality asserted to have been observed in
imposing the duty. r :
*
INTRODUCTORY SURVEY. 65
In both these cases, moreover, the mere presence of a discrimina-
tion does not prove any intent to discriminate, neither does it prove
unfair discrimination. The discrimination may be justifiable on well-
established economic or moral grounds. The articles taxed may be
those generally recognized as most suitable for taxation either for
fiscal or for social ends, or the taxation of certain exports and the
exemption of others may depend upon the relative prosperity of the
industries and their capacity for paying taxes. It might be found,
for instance, that the new industries being established in a colony
were in the hands of nationals and were sending their products to the
mother country, while the well-established industries, whose products
could afford to pay taxes, were those in which the natives or foreigners
were chiefly interested. The Algerian export duty on phosphates,
which are exported chiefly to countries other than France, may repre-
sent an effort to Secure a revenue at the expense of the foreign con-
sumer, but it should be noted that the taxation of phosphates seems
to be generally recognized as desirable by the exporting countries.”
In quoting certain cases, therefore, where classifications of these
kinds appear to discriminate against the foreigner, no judgment is
intended as to the fairness of the practice. That can only be deter-
mined by a detailed trade study, such as has not yet been under-
taken, and by the establishment of standards of fairness which do
not yet exist. ! t
Minor fees.—Minor fees on goods imported or exported, as dis-
tinct from shipping dues, are frequently found under a considerable
variety of names—octrois, consumption duties, municipal taxes, port
improvement duties, commercial and industrial contributions, sta-
tistical duties, landing duties, etc. The comparatively important
octrois and consumption duties have been discussed in connection
with tariff rates. The designations of the other taxes call for no
special explanation except perhaps the statistical duties. These are
generally levied in French, Italian, and Portuguese colonies on goods
otherwise free, for the purpose of more easily enforcing the regula-
tions for the declaration and recording of the statistics of merchan-
dise imported and exported. Their rates are low, not exceeding 1
per cent, or they are levied at So much per package, ton, etc., re-
gardless of value. Certain of the Italian preferences include exemp-
tion from this statistical duty, and there is a differential rate of 0.1
per cent and 0.2 per cent on cereals and meat, etc., exported from
Loanda, Benguella, and Mossamedes. Differentials in these minor
taxes are characteristic of the Portuguese colonies and are not gen-
erally found elsewhere. Thus, the municipal tax in Ilourenço
Marques is 25 per cent of the duty, which, of course, increases the
total amount of the differential. The commercial and industrial
taxes in Mozambique do not generally exceed 5 per cent and these
all contain small differentials. A further discrimination is found
here in that for this taxation (though not for the customs duties)
foreign goods nationalized and reexported from Portugal are still
classed as foreign. In Angola the industrial tax is 14 per cent ad
valorem on foreign goods as compared with 1 per cent on national
products, and the fee for transferring goods to the customhouse is
likewise differential—1% real per kilogram against 1 real.” In
117 Except the United States, which has no constitutional power to levy export' duties
outside of the “ incorporated '' possessions.
148 One real per kilo equals, roughly, 5 cents per 100 pounds,
66 COLONIAL TARIFF POLICIES. |
Sao Thomé and Principé, however, while the municipal taxes gen-
erally increase the differentials in favor of Portuguese goods, on a
few items the discrimination is against Portuguese products and
Somewhat reduces the total preference. . . .
Valuation of merchandise.—There have been found in a few cases
Open discriminations in the valuation of merchandise, in payment of
duties, and in customs formalities. The Canadian antidumping law
contains both open and concealed discriminations in favor of British
trade. It requires that merchandise dutiable at ad valorem rates be
valued at the price for which it is commonly sold in the foreign
country whence directly imported into Canada. This rule discrimi-
nates against indirect importations, and therefore, in the nature of
the case, against the transit trade of the United States. For in-
stance, spices sent from the East Indies directly to Canada are
dutiable according to their export price in the Orient. But the
same spices, reshipped from the United States to Canada, are
dutiable according to the American market price, which is higher
by the inclusion of profits and other charges. Spices enter the
United States free of duty, but on many articles the market prices
used in Canadian customs valuations include a duty or excise paid
on the article or some component part. The foreign countries which
levy these charges, in order to prevent them from constituting a
burden upon the export or reexport trade, usually grant draw-
backs upon exports, and to that extent the reexported articles may
be sold abroad at a price lower than that prevailing in the country
of export—but in such cases the Canadian duties are assessed accord-
ing to the higher (domestic consumption) price, not the lower (ex-
port) price. This provision of the law operates to the advantage of
free-trade Great Britain. Thus the law confers upon British trade
an advantage not at first apparent; it includes also an open prefer-
ence in its provision that sugar refined in the United Kingdom
and all articles upon which excise duties have been paid in any part
of the Empire entitled to preference shall be valued at the market
price of the place of origin, less the drawback allowed on sugar, or
less the amount of the excise duty.
An unusual discrimination was in force in Portugal in 1903–
1912, in the tare allowance on Sugar imported in sacks. The allow-
ance was: On colonial sugar, 2 per cent; on foreign sugar, 24 per
cent if imported in double Sâcks and 14 per cent if in single sacks.
Depreciated currencies and eachange rates.—Since the armistice,
exchange rates have had an important effect upon trade. Countries
whose currencies had depreciated have not only, for that reason,
afforded poor markets in which to sell, but they have imposed many
restrictions upon imports, in the effort to raise the exchange value
of their currencies by decreasing their adverse trade balan es. On
the other hand, these countries have been at an advantage in selling,
in spite of the fact that their price levels (in terms of their own
currencies) have risen more rapidly than those of other countries.
Most colonies use the currency system of the mother country, or,
at least, currencies whose value is fixed in terms of that of the mother
country (e. g., Egypt, and the Straits Settlements). This fact,
combined with the intimate relation which usually exists between
the financial systems of colonies and mother countries, generally
causes exchange values of the currency of mother country and colony
INTRODUCTORY SURVEY. 67
to fluctuate together. By exception, independent currency systems
are found in Canada and the British West. Indies, and during the
war the rupee—used in India, Ceylon, Mauritius, the Seychelles,
British East Africa, and Zanzibar—broke from its moorings and
pursued a course independent of that of the pound sterling.”
Owing to the intimate connection and the tendency of the two cur-
rencies to rise and fall together, fluctuations of exchange are less
likely to disturb the trade between colony and mother country than
the trade of either with foreign countries. The fall in the inter-
national value of the currency of a colonial power makes it easier
for foreign countries to buy both from the mother country and from
the colonies, and harder to sell to them. The depreciation of the cur-
rency thus enhances the effectiveness of differential import duties
and lessens the effectiveness of differential export duties in the colo-
nies. In certain cases, however, this effect upon import duties has
been offset to some extent by a contrary effect upon the assessment
of customs duties. Foreign currencies have become of special in-
terest in those countries or colonies which employ ad valorem duties,
and assess the article upon its price in the principal markets of the
country whence directly imported, a price which is necessarily "' ex-
pressed originally in the currency of that country. Before the war
these countries in making these assessments converted at par the cur-
rencies of the major European countries, ignoring the fluctuations,
which were always small. But since the war the wide variations from
their normal values of currencies nominally based upon the gold
standard has led the United States to enforce, and Canada, Australia,
and New Zealand to adopt, rules for conversion at approximate mar-
ket rates. In Canada, however, the rule for conversion at market
rates was not at first applied to currencies which stood at a premium.
This operated to the advantage of American trade. But a much more
important advantage accrued to the United States in its trade with
Canada before the change in the conversion rule; and because of the
importance of this trade and of Canada’s numerous and high ad
valorem rates, the condition during the maintenance of the rule of
conversion at par may receive some consideration.
The Canadian currency system is quite independent of the British,
and the depreciation of the Canadian dollar has been only about one-
half that of the pound sterling, but has none the less been sufficient
to stimulate American purchases and hinder American sales in that
country. On the other hand, the greater relative fall of the pound
sterling has enabled Canadians to buy to advantage in Great Britain.
Until July 22, 1920, the Canadian customs, in making valuations,
ignored the dislocation of exchange rates and converted foreign mar-
ket values into Canadian dollars at par. Thus, when sterling stood
at a discount of 25 per cent, the customs still assessed at $48,66 (Cana-
dian) an article sold in Great Britain for £10, though the Canadian
purchaser had paid only $36,50 (Canadian) for it. On the other
hand, an American article which sold in the United States for $100,
but which cost $110 (Canadian) to $115 (Canadian), was valued by
the Canadian customs only at $100 (Canadian). In so far, therefore,
150 In the latter part of 1920 it became difficult to finance the exports of Great Britain
to Australia, and the British pound commanded n premium in Australia. .
16. Of course, the prices of contract sales may be expressed in any currency. The Ameri-
can law requires that invoices give the value in the currency of the country of export,
leaving it to the customs officers to make the proper conversion.
68 COLONIAL TARIFF POLICIES.
as the duties were ad valorem, the exchange rates, in conjunction with
the rule of valuation, operated to decrease by 10 per cent or more.”
the duties payable upon imports from the United States, and to in-
crease by 20 per cent or more those payable upon imports from Great
Britain, and by 100 per cent or more those upon imports directly from
France or Italy.” -
These decreases to the advantage of American, and increases to the
disadvantage of British trade perceptibly lessened the advantage
conferred by the preferential schedules and at certain rates of ex-
change wiped out altogether some of the preferences. For instance,
with the United States dollars at 10 per cent above and British
sterling at 20 per cent below Canadian par—not an extreme case—
Canadian purchases from the United States of articles formally
dutiable at 35 per cent paid in effect 31.8 per cent, while the same
article bought in Great Britain, and dutiable at a preferential rate
of, say, 25 per cent, paid in effect 31.25 per cent.” In July, 1920, the
rule was adopted of converting foreign prices at current rates of ex-
change in so far as they were expressed in depreciated currencies.
This removed the disadvantage under which British and other Euro-
pean goods had suffered, and on May 3, 1921, the application to
appreciated currencies of the rule of conversion at current rates re-
moved the advantage previously enjoyed by American products.”
In the customs system of Mozambique, the requirement that pay-
ment of customs duty be made in gold at a normal (mint) rate of
exchange has operated in recent years largely to increase the differ-
entials against foreign goods. The requirement is restricted to pay-
ments of duties on non-Portuguese goods assessed on an ad valorem
basis. Most of the duties, however, are ad valorem, and since gold
stood at a premium of at least 40 per cent through several years, the
rule has largely increased the discrimination against foreign goods.
it? By the percentage by which Canadian dollars stood below par in the United States.
* When duties of 20 to 35 per cent, such as are common in the Canadian tariff, were
doubled, trebled, or quadrupled by the operation of this method of valuation they obvi-
ously became prohibitive. This effect upon the trade of a country whose currency was
greatly depreciated was avoided by buying through Great Britain, or from New York
importers ; the valuation in the latter case became that of the market value in the United
States, since that was the country whence directly imported into Canada. But the ad-
vantage of this indirect importation was considerably lessened by American duties and
by the operation of the Canadian “antidumping ” duty, since the value for assessment
in Canada is the value in the open markets of the country whence directly imported and
not the value in bond. French goods from New York (even though they went through
the United States in bond) were assessed at the selling price in that city, which included
American duties and profits as well as freight and other charges, and on the amount b
which this price exceeded the value of the article as landed in bond the “ antidumping ‘’
duty was levied. The maximum rate of this duty is 15 per cent ad valorem.
** This illustration shows the equalization of certain rates upon British and American
products, and it follows that when sterling was at its lowest the British preference in
this instance gave place to a slight preference upon the American article, But it must
be noted that this result is dependent upon the fact that the illustration used a prefer-
ential rate in which the preference was only a small fraction (two-sevenths) of the total
duty., . The same absolute amount of preference (10 per cent ad valorem) upon articles
dutiable at lower rates was not wiped out with exchange at the rates specified. Thus
the effective rates levied upon goods formally dutiable at 25 and 15 per cent were, with
exchange at the rates indicated, 22.73 and 18.75 per cent, leaving a preference of nearly
4 per cent ad valorem to the British. In the extreme case of goods dutiable when im-
ported from the United States, but free when imported from Great Britain, the amount of
the preference was scarcely affected by the most extreme variations in exchange rates.
* The situation in Australia has been somewhat similar to that in Canada, but the
differences should be noted. Australia uses the pound sterling, and ordinarily settles all
its transactions through London, so that a divergence in the exchange rates of Australian
and British sterling is rare. In applying the rule for the assessment of ad valorem
duties, therefore, instead of a disadvantage to British importers and an advantage to
American importers, as in Canada, there was a relatiyely larger advantage to the Ameri-
cans, while there was nothing abnormal in the way the rule operated upon imports from
Great Britain. In October, 1920, Australia followed Canada and New Zealand in adopt-
ing the rule of converting depreciated currencies at current rates of exchange, and at
about the same time, as the result of a judicial decision, the same rule was applied to
appreciated currencies.
INTRODUCTORY SURVEY. 69
Formalities.—The formalities required in entering and clearing
goods are often vexatious and cause complaints from time to time,
complaints which sometimes allege that the treatment received is not
equal as between foreigners and nationals. The published regula-
tions, however, show few or no open discriminations, except the re-
quirement in the very forefront of the rules that all documents must
be made out in the national language. This can hardly be put down
as an unfair discrimination, and it operates against foreign traders,
importers, and agents rather than directly against foreign goods.
Concealed preferences.—A concealed preference may be defined as
any classification or phraseology which avoids such terms as “na-
tional * and “foreign,” thus establishing a general and seemingly im-
partial rule, but which none the less operates to the disadvantage of
the foreigner. The discriminatory effect may have been unforeseen;
if devised and intended to discriminate the clause may be called a
“joker.” The discrimination may be concealed in intricate phrase-
ology or the subtlety may lie in the fact that different regulations
must be compared in order to discover the effect. Concealed pref-
erences may exist also in broad classifications and simple phraseology.
Frequently the discrimination is discoverable only by a comparison
of the law or regulations with the sources or destinations of the trade
involved. Finally, concealed preferences may exist by administra-
tive action either as part of an established and public policy, or by
secret order, or by fraud. • ‘
In general, any method of classification of articles and any manner
of assessment of duties operates unevenly upon portions of the trade
concerned. Specific duties fall with relatively greater force upon the
cheaper varieties of an article, while ad valorem duties tend to
restrict the market rather of the better qualities. In addition, specific
duties may be levied by units of sale” or by weight or other char-
acteristics; and either specific or ad valorem duties may be levied
upon goods as classified according to any of the differentia of the
product. In every case in which similar products of different coun-
tries have different characteristics the tariff classifications and the
manner of assessment become of importance to traders. Since there
is no general agreement and no established standards based either
upon convenience of administration or upon equitableness as between
manufacturers, any classification or manner of assessment is apt to
raise complaints, from Some source or other, that the duties are in-
equitable. For instance, under the Spanish tariff cottons were duti-
able in the Philippine Islands according to the weight of samples
from which had been washed the minerals added by the manufac-
turers to give body to the goods. American manufacturers con-
sidered this unjust. In 1902 the basis of assessment was changed to
that of the weight of the goods as imported. The change operated
to the advantage of American manufacturers almost exclusively, for
they are not accustomed to weight their cottons. Again, in 1906 a
classification was introduced by which there was imposed upon cotton
piece goods produced on double width looms and then split a heavier
duty than that upon similar cloth of the same width produced on
single-width looms. This change operated to the disadvantage of
British manufacturers, as it offset the economy of production on
w By the piece or head, yards of cloth, boxes of matches, etc.
70 COLONIAL TARIFF: POLICIES.
tº
their wider looms. Both these classifications were made in general
language, and the effects were obvious, only to those familiar with
the technical processes of the textile industries. It is evident that
neither of the changes made in 1902 and in 1906 violated the Spanish-
American treaty of 1899, which established no standards and guar-
anteed the continuance of no classifications; the earlier change dis-
criminated against a trade practice which may be characterized as
none too reputable from the consumer’s standpoint; the latter change
was a protective measure based upon the theory of equalizing costs.
In 1907 the tariff regulations of Somalia changed the basis of
valuation by requiring the addition of only 20 per cent instead of
40 per cent to the invoice value of goods whose valuation was not
given in the official schedules of valuations. At that time and for
at least some years thereafter these schedules omitted valuations for
certain Italian products where the same foreign products were evalu-
ated, and the change thus reduced by one-seventh the amount of the
duty payable on Italian cottons and some other items, with no cor-
responding reduction on the foreign articles. - •.
Administration of the regulations.—Two cases of discrimination
in the administration of laws or regulations, apparently impartial,
may be given. In Libia Italian goods have been systematically
undervalued to the extent of 50 per cent, more or less. This under-
valuation rests on nothing to be found in the laws or in the regula-
tions, so far as they are available here, but the practice can hardly
have escaped the attention of the Italian Government. gº
During the war trade and shipping were controlled very largely
by administrative bodies º only by most general grants of
power by the legislative bodies. Since the cessation of hostilities this
control has been considerably relaxed but in certain cases has been
even extended. Thus at different periods since the armistice the
importation of dyestuffs into India and other British colonies has
been prohibited,” except as licensed. Some of the orders to this
effect contain no evidence of any intention to discriminate between
British and foreign dyes, but the press in each case was able to state
that “it was understood " that licenses would always be given for
the shipment of British products. The preference here is obvious,
though the amount is uncertain and likely to vary from time to time.
Under a licensing system the future uncertainty is itself a factor
considerably adverse to the foreign product, even though at any
given time foreign dyes are being freely licensed.
13. EFFECTS OF PREFERENTIAL TARIFFs.
The effects of preferential tariffs upon the trade between the
colony and the mother country can not with any certainty be sepa-
rated from the effects of other factors which determine the course
of trade. These other factors will be discussed below with par-
ticular reference to colonial trade.” The more intangible fac-
tors, however, are relatively constant,” and, except where trade is
affected by abnormal circumstances—Wars, crop failures, rapid
157 Some of the prohibitions have been suspended.
158 See p. 72.
169 Most subject to variation, perhaps, is the expenditure upon public improvements.
These expenditures are often sufficiently great to increase noticeably colonial imports from
the mother country in a given year or series of years. Investments, improved shipping
connections, and banking facilities may also lead to comparatively Sudden increases of
trade.
INTRODUCTORY SURVEY. 71
changes of prices—changes in the previous course of trade devel-
opment following immediately upon and in line with substantial
changes in tariff rates may reasonably be attributed to the latter.
But tariffs have long-run effects as well as immediate results, and
the statistical presentation of the subject is full of difficulties. No
complete study has been made of the trade of the colonies which
have differential tariffs, but certain general conclusions, both nega-
tive and positive, have been reached. - -
Negatively it may be laid down that certain general comparisons
can lead to no results or only to misleading results. Thus the gen-
eral comparison of assimilated and preferential colonies as a class
with open-door colonies as a class yields no important results. Most
of the open-door colonies are or were possessions of Great Britain,
Germany, Holland, and Belgium, and there were special reasons
why the merchants of each of these countries largely predominated
in supplying the markets of its colonies.” For instance, in 1913
Great Britain supplied over thirty per cent of the imports of China
and of Argentina, and evidently a country which supplied so large
a proportion of the manufactures consumed in neutral markets
could scarcely fail to predominate in the trade of its own colonies,
except where geographical or other factors were very strongly
against it, as in Canada and some of the West Indies.
Similarly, a consideration of the total trade of a single colony in
comparison with its tariff history ‘may be quite misleading. The con-
clusion has sometimes been drawn from the steadily decreasing per-
centage * of Canadian imports from Great Britain that the preferen-
tial tariff has been of no advantage to British manufacturers and
merchants. The conclusion is quite unwarranted. The gross totals do
indeed show that Canada’s preferential tariff has not offset the effects
of the geographical advantage of the United States which has in-
creased with the growth of Western Canada and with the develop-
ment of American industry; but an examination confined to those
products in which there was in 1897, or has developed since, competi-
tion between Great Britain and the United States shows that the pref-
erential tariff of Canada has in many lines checked the decline of
British trade and has in some given the British a virtual monopoly of
the Canadian market. -
Positively, it may be laid down from general considerations that
the tariffs enforced in the assimilated and in most of the preferential
colonies can not fail to exert considerable influence on trade. In the
assimilated colonies, the products of the mother country are pro-
tected by the same rates as in the home market; in the preferential
colonies foreign manufactures are commonly met by tariff differen-
tials of ten per cent, twenty per cent, and of even higher rates. While
in particular cases high rates may not divert trade from foreign coun-
tries to the mother country, such systems of differential duties as are
most commonly found to-day must have important effects.
While a most detailed study would be necessary to determine—as
far as can be determined statistically—the exact effect of differential
100 See pp. — and —. - + - - -
* In the three years 1895–7 Canada imported, less than twice as much from the United
States as from Great Britain (averaging $161,000,000 and $93,000,000, respectively),
while 1911–13, after a dozen years of imperial preference, the figure had risen to more
than three times as much (averaging $403,000,000 from the United States and $122,000,-
000 º gºat Britain), and in 1918–19 to ten times ($747,000,000 and $73,000,000,
respectively). *
72 COLONIAL TARIFF POLICIES.
tariffs, some of the more striking tariff changes have produced effects
which stand out clearly in the trade returns. Figures will be found
in the chapters below showing the trade changes which followed cer:
tain modifications of customs duties on cotton textiles in Somalia and
the Philippine Islands.” Similar figures might have been presented:
for Madagascar and other French colonies showing how the adoption
of the policy of tariff assimilation in 1892–1897 brought the trade of
those colonies into the hands of French merchants.
To conclude: From general considerations, from the striking trade
changes which have followed certain outstanding tariff changes in
competitive articles like cotton textiles and from the trade changes
which are concealed in the totals of the Canadian figures, but which
are revealed by their closer examination, it follows that differential
tariff rates in the colonies of the large industrial powers are one of the
most important factors in the trade of these colonies. Accordingly, it
must be expected that if introduced in those colonies where at present
the open door is maintained, differential tariffs would prove to have
like results upon their trade.
14. FACTORS OTHER THAN THE TARIFF IN COLONIAL TRADE.
In the colonies, as elsewhere, the tariff is but one of the factors
which determine the course and character of trade relations. Some
of the “assimilated” colonies, offering to the manufacturer in the
mother country the same protection that he receives in the home mar-
ket, receive upwards of 80 per cent of their imports from the mother
country, e. g., Algeria and Porto Rico. But on the average the pro-
portion is perhaps not above 50 per cent, which is a less percentage
than is found in certain cases where there is no discrimination in the
tariff rates, but where the political and economic relations of the
colony with the mother country have been exceptionally close, e. g.,
Java and the Congo.
In colonial markets the trade of foreign countries encounters the
maximum of disadvantage in those cases where national goods enter
free while other goods are subjected to the rates of the protective
tariffs of the mother countries, applied in their entirety (as, for
instance, in Formosa, Korea, and Porto Rico) or with relatively few
exceptions (as, for instance, in the French assimilated colonies).”
But even in those cases foreign trade is not entirely excluded because,
first, the mother countries can not supply all the products needed,
or if they do, they must in turn have obtained a portion of what
they supply from abroad; * Second, the colonial population, espe-
* See pp. — and —.
* This generalization, is made on the basis of existing situations. . Protection might
be afforded in the colonies at rates higher than those of the tariffs of the mother coun-
tries, in which case the disadvantage to foreign trade would be increased. On the other
hand, free-trade countries like Great Britain or low-tariff countries like Belgium and
Holland might assimilate the tariffs of their colonies to those of the mother country
without subjecting to any disadvantage the trade of foreign countries.
104. In this case the trade of the colony with foreign countries is really greater than it
appears in the figures. Foreign products which enter a colony by way of the mother
º and which have paid duties there generally enter the colonies on the same basis
as national products. Where the national products enter free, or practically so, and the
national tariffs are the same or not much higher than the colonial, foreign goods may
find that their most convenient route to a colony lies through the mother country. Ameri-
can goods are reported to have entered Libia in this way, aided by the undervaluation
accorded to goods imported from Italy. It has been estimated that the Algerian customs
lose one million francs annually through the importation of goods via France. Perhaps
in some cases this trade may be detected in the statistics of the transit trade of the
mother country. - -
INTRODUCTORY SURVEY. - 73
cially the natives, may not be able to afford the varieties and quali-
ties of goods which are produced by the mother country—as is con-
spicuously the case in reference to textiles and many of the articles
of luxury which France produces; and, third, the national tariffs
do not exclude all foreign manufactures from the home market, and
therefore can not exclude them from the colonies, in which certain
conditions are comparatively favorable to the foreigner. When
French, English, and German manufacturers attempt to compete
with American it is evident that they will be at greater disadvan-
tage in New England and Pennsylvania, where local manufactur-
ers are put to relatively little expense for packing and freight, than,
for instance, in Porto Rico. 8.; between American and
Japanese manufacturers in the Philippines offers a more effective
example. The higher the freight rates in proportion to the value
of a commodity the greater the effect of proximity as compared with
that of tariff charges. This is illustrated in the trade of the United
States with Canada and some of the West Indian islands, of Aus-
tralia with New Caledonia, and in many less conspicuous cases.
Closely related to geographical factors are effects of established
shipping routes and lines of communication.
The trade of certain countries in certain colonies is affected favor-
ably and that of others unfavorably by historic connections, includ-
ing settlement colonization. Thus the presence of the Dutch in South
Africa, of Italians in Tunis, of Spaniards in Algeria and Porto Rico,
is comparatively unfavorable to the trade of the countries which now
govern those territories. In open-door colonies, where tariff discrimi-
nation is no longer a factor, historic considerations may noticeably
influence the course of trade.”
For such reasons as these the mother country does not always
dominate the trade of the colony, even though possessed of the aq;
vantage of such protection as is deemed adequate for the protection &f.
the home market. But these cases are exceptional; the normal situalſº
tion is that which may be described advantageously in explaining
why so large a percentage of the trade of open-door colonies is with
the mother countries. As far as the tariff factor is concerned, open-
door colonies are neutral markets, and the question is therefore one
phase of the more general question why certain countries have so
prominent a share in the trade of certain neutral markets. In politi-
cally independent neutral markets geographical factors are likely
to prevail where they favor one great industrial country,” but the
colonies are usually distant ** from the mother country, and political
and sentimental factors are those which predominantly favor the
mother country. .
165 In the case of Mauritius and the Seychelles, now British, but a century ago French,
the French share of the import trade in 1912 was 9.2 per cent in Mauritius and 15 per
cent in the Seychelles ; but if the imports from the British Empire be excluded the
French share of the remainder is found to be 45 per cent and 86 per cent for the two
colonies, respectively ; and if to the trade of France be added that of the French colonies
the percentages of the French contribution are increased to 60 per cent and 95 per cent
for the two colonies, respectively—a striking contrast to 5 per cent in Ceylon and 4 per
cent in British East Africa. In the same year more than one-half of the total exports
of the Seychelles went to France.
160 Recently more than 90 per cent of Mexico's trade has been with the United States.
The geographical is not the only factor—the American demand for sisal hemp is not due
to proximity to Mexico. In the case of Canada #º. and other factors give a
predominant share of the import trade to the United States in spite of a differential
tariff. - • *
107. The .principal colonies which are nearer to the mother country than to its commercial
rivals are Porto Rico, Korea, Formosa, Algeria, and Libia, and in all of them the mother
country largely predominates in the import trade.


74 . COLONIAL TARKFIF POLICIES.
In the first place the acquisition of colonies has frequently followed
a previously established dominance in trade. This was probably true
of all the territories annexed by the British between the Napoleonic
wars and 1914. In some of the German colonies both the missionary
and the trader preceded the flag. Again, in colonies earlier acquired
and where the open door now prevails, the present freedom of trade
was established only after preferential tariffs or more effective meas-
ures favorable to the trade of the mother country had long been in
force. Thus in the days of the “culture system ’’ the Dutch controlled
the trade of Java almost absolutely; when the doors were opened
the foreign merchant found the national products already popularized
in the colonial market. -
Even in a newly acquired open-door colony, where the merchants of
the mother country have never enjoyed a tariff preference, the action
of the Government may be of considerable importance in influencing
the trade. In the development of these colonies the programs of pub-
lic improvements are (or ought to be) relatively heavy. The regular
maintenance of the Government also requires supplies in considerable
quantities and of kinds which are not ordinarily produced locally.
These are usually purchased in the mother country.*** Trade follows
the flag partly because official supplies lead the way and continue to
furnish a nucleus around which the trade may grow.
Shipping subsidies play an important part in colonial trade, and
they are used by the colonial powers generally.”
.* French colonial railroads, if subventioned as they generally are, require a special
dispensation to use any foreign material or to make their importations in other than
French vessels.
For the British Crown Colonies the Crown agents in London buy all the supplies not
locally obtainable. A recent order directs them to buy in Canada whatever is not ob-
tainable in Great Britain. In 1904–1906 the Crown agents expended an average of
$125,000,000 a year. Their staff, not including the consulting engineers, numbers over
339 (Colonial Office List, 1920, p. XX). Under pressure from the colonial office the
ºšernment of Jamaica purchased in Canada locomotives which it could have obtained
§§§ better price in the United States. (The Times Trade Supplement, Oct. 4, 1919. )
Süpplies for India are purchased by the stores department of the India Office. A com-
mission recently recommended a change by which the buying should be transferred to a
comptroller general of stores in India, who should obtain supplies locally as far as pos-
sible and then forward the balance of the requisitions to London. (Board of Trade.
Journal, Aug. 7, 1919, p. 177). See page — for the present source of the Government
supplies in India.
Government supplies imported into the Gold Coast in 1918 were valued at $885,000,
or 6.2 per cent of the value of the commercial imports. The Union of South Africa
imported about $10,000,000 worth, or over 4 per cent of the total imports (in this case.
Government supplies are included in the figures officially published as the total trade).
The same year Government imports into Java and Madura were about $11,000,000, of
.."; $3,432,000 were obtained in the United States (Commerce Reports, Feb. 3, 1920,
The Netherlands maintain at The Hague a centralized buying agency for their colonies,
with a branch office in New York. - x
Government stores are usually not included in the commercial statistics quoted, and
the imports from the mother country are thus greater than the ordinary commercial
figures show. . :
An unusual instance of Government control of trade is mentioned by W. H. Hooker in
“The Handicap of British Trade ‘’, (London. 1916). In speaking of the practical monop-
oly which the Germans held on-various articles of East African trade he says: “ In cloves.
only the Germans could not obtain a practical monopoly, as 25 per cent of the clove
crop is the main source of Zanzibar's revenue, and British officials certainly could not,
and did not, hand their holding over to the Germans' tender mercies '' (p. 57). .
* Yet there were complaints from French and British colonies before the war that
German lines were giving better service than the national shipping and that trade was:
diverted in this way. The smaller the trade and the fewer the ships serving it the more
important is this factor, which is greatly stressed, e. g., in Italian discussions of the
trade of Somalia. See Grosvenor M. Jones, Government Aid to Merchant Shipping (De-
partment of Commerce, Special Agents Series, No. 119, p. 21) for subventions paid by
certain countries to foreign shipping lines. - -
Not all the Government regulations in regard to navigation, however, are in aid of
trade. Some are to promote shipping, and do so at the expense of trade relations
between the colony and mother country. Thus the restriction of colonial trade to na-
tional shipping may raise freight rates and tend to drive the colonial produce elsewhere
and to give competitors a better chance, in the colony. For this, among other reasons,
the American law extending the coastwise shipping regulations to the Philippines has
not been put into force. The French requirement of direct transportation for all products


INTRODUCTORY SURVEY. 75
Railroads have had a greater influence in increasing the amount
of colonial trade and a smaller influence in controlling its direction
than has shipping. But the east and west railroads of Canada have
facilitated trade with Great Britain rather than with the United
States; and there is international railway competition for the trade
of the Transvaal, Rhodesia, and the rich Katanga region of the
southern Congo. The British Imperialists have emphasized cable
communications and rejoiced in the laying of each “all-red" cable.
Most of the powers have been promptly active in extending systems
of wireless telegraphy in their colonies. The imperial penny postage
rate, adopted by the most of the British colonies in 1898 and 1899,
had its commercial aspect.” - - - -
Probably more important are the social-economic influences pro-
moting trade between mother country and colony. First of all
among these influences must be placed the possession of a common
language. This bond is strongest in the settlement colonies; but else-
where also the prevailing foreign language is that of the mother
country, with some exceptions.”. If there is immigration, it is
normally greatest from the mother country,” and in any case in
all the dependent colonies there is a stream of officials, with fre-
quently military and naval units, constantly tending to maintain
in the colony the standard of living, the tastes, and the styles of the
mother country. From tropical colonies, the permanent civil-service
personnel, the missionaries and the planters practically all go home
on leave periodically; * and children are sent home at an early age
and for long periods. The colonists settled in more healthful lati.
tudes, maintain less regular and extensive intercourse with the
mother country, but in many cases entertain a greater number of
casual travelers from that country. -
From the earliest period of the modern colonial movement branch
agencies, depots, or “factories” of large trading concerns have played
benefiting by the minimum tariff may have a like effect in some cases. Mozambique
attempts to guard against this by granting a differential export duty to products billed
for Portugal in national ships only as long as these ships charge no higher freight rates
than their competitors of other nationalities. Similarly, Sao Thome and Principe fixed
a legal maximum of freight rates on cocoa and coffee for vessels whose cargoes received a
preference in the export duty.
170 In 1906 Canada raised the postage rate on American periodicals to four times what
it had been and reduced to one-fourth of the previous rate the charge on British periodi-
cals. One of the objects was to reduce the American and increase the British advertising
circulation in Canada.
The war resulted in the doubling of the imperial postage rate,
171 Italian prevails in Tunis and Malta, Greek in Cyprus, (pidgin) English in the Bis-
marck Archipelago and in part of Kamerun. Until a few years ago all the Official Colºre-
spondence, records, etc., in Egypt were in French, as the Journal Officiel Continues to be,
The Egyptian census of 1907 showed 14,500 French residents, 20,000 British, 35,000
Italians, and 63,000 Greeks. On the Lower Congo, Portuguese was the dominant lan-
guage before the founding of the Congo Free State (and perhaps is still), While the
English, the French, and the Dutch had practically all the trade,
172 In immigration into Canada the numbers from the United States exceeded those from
the United Kingdom in 1908–9, 1909–10, and during the war, and were but little behind
the latter in 1910–1913, but the American immigration included numerous Americanized
Canadians and numerous un-Americanized Europeans. (Husband, W. W., in American
Economic Review, Supplement, March, 1912, p. 79.)
In East Africa, Asia, and parts of Oceania, Chinese and Indian immigration is having
considerable effect upon commerce. In Zanzibar and Kenya, and former German East
Africa much of the trade is carried on in the East Indian Gujarati language (Hooker,
Op. cit., p. 62). The Dutch East Indies were estimated in 1917 to contain 139,000 Euro-
peans, and 833,000 Orientals, chiefly Chinese and Arabs. In the Straits Settlements and
the Federated Malay States the native Malays outnumber the immigrant Indians only
3 to 1 and are actually outnumbered by the Chinese. Numerous Chinese are found also
in the other Malay States, especially in Johore and Kedah. In the Philippines the per-
manent settlement of Chinese has been forbidden since 1902, but the Chinese outnumber
the Americans and Europeans. In Guam 104 of the 220 permanent non-native residents
are Japanese, and Japanese trade shows a large increase (1918).
178 In British, West Africa officials and merchants usually stay only a year at a time;
elsewhere the “turns" are longer, and many missionaries return only every seventh year.
48748°—21 6
76 COLONIAL TARIFF POLICIES.
an important part in colonial trade. Originally these were located
in “unoccupied" or in national territories, and it continues to be the
rule that large trading firms tend to establish their branches first in
the colonies of their own country. The same is true of banks, and
much of the banking in colonies is carried on by branches of national
banks.” These financial and trade connections with the mother
country are very important in forming and maintaining trade
channels. -
The investment of national capital is also very important. Invest-
ment in railroads, for instance, leads not only to large orders for
the initial equipment but also to a continued trade in materials and
equipment for extensions, maintenance, and repairs uniform with the
original installation.” The immediate control of the purchase of
supplies may remain with the capitalists in the mother country.***
Orders are frequently sent to the mother country because the colonial
civil and mining engineers, architects, managers of industrial and
commercial establishments, even when they are colonials, have re-
ceived their training in the mother country and are familiar with
the standards, the practices, and the equipment used there.
All the factors which inspire interest and confidence in investors
are apt to operate much more strongly in the mother country than
among foreigners. The early history of the Congo offers a notable
instance. In many cases ex-officials of the colonies have been promi-
ment in the organization of companies to develop those colonies. If
concessions are being given, even if there is no intentional discrimina-
tion, the nationals are most apt to have the information and the inter-
est and the faith necessary for participation in the enterprises. Gov-
ernmental action may play a part in the operation of these factors;
there may be discrimination in the granting of concessions and in
such points as the listing of securities which are open to the invest-
ment of trust funds,” or which may be quoted on the national
bourse.*** -
While the export trade and the import trade are often very closely
associated, there are numerous striking examples of the fact that on
the whole the colonial powers do not occupy a position of such promi-
mence in the export trade of their colonies as in the import trade. In
some cases this may be explained partially by the absence or the
smaller amounts of the tariff differentials affecting these two trades
(see p. —), but the same condition is found also in India and other
open-door colonies. A further explanation seems to be that the in-
dustrial countries have emphasized their export trade and have not
invoked in favor of their import trade the same interest, attention,
174 Or of colonial banks—e. g., in Newfoundland and the British West Indies branches
of Canadian banks ; Or in Oceania of Australian and New Zealand banks.
*7° The statements in this paragraph are regarding tendencies, and of course there are
numerous exceptions. Investments of capital in colonies may develop trade with another
country—e. g., British capital in Canada has increased the demand for machinery, etc.,
from the United States. German commercial houses had established themselves in British
colonies before any German colonies existed.
*79 “A very large proportion of the requirements of these industries [Indian cotton and
jute mills, engineering works, collieries, and various small industries], particularly in
Bengal, where the firms of managing agents are usually British, is purchased through the
London office of the managing agents, and this largely accounts for the predominant
pºsiº of British suppliers in the trade before the war.” Board of Trade Journal, Aug.
7, 9, p. 177. -
*77 As is the case in Great Britain. Proposed legislation in Great Britain would give
relief to investors in colonial enterprises from the double income tax which now fre-
quently falls on those who invest money outside of their own countries.
*78 As is the case in France.
INTRODUCTORY SURVEY. - 77
and financial machinery. Many a zealous colonist who would give
a conscious preference to the mother country in purchasing supplies
sells the produce of his plantation to the highest bidder with hardly
a thought of his nationality or the destination of the products.”
The colonies produce so large a proportion of the exportable sur-
plus of many articles that many countries must each take a share of
their exports indirectly if not directly. A colony of one of the big
industrial nations can obtain from the mother country practically
all that it needs in the way of manufactures, but the whole world is
dependent on India for jute and lac, on the French colonies for va-
nilla, on Formosa for camphor, on the Philippines for manila, and
unless serious obstacles are put in the way these articles will go more
or less directly from the colonies to many parts of the world.
These various factors, political, economic, and social, have a cumu-
lative effect. Some of them are strongest in the newest colonies, and
the trade currents established at the outset tend to become fixed. But
these factors are not so strong that they automatically throw a
monopoly of the trade into the hands of the national merchants.”
They simply give to the national commercial interests and enter-
prises advantages which may be overcome by foreign competitors
who are able and willing to apply themselves with superior zeal and
better methods. The geographical and other points mentioned above
must be considered. Trade habits and the action of various trade
factors may tend to the disadvantage as well as to the advantage of
the mother country. The colony may develop resources whose nat-
ural outlet is in foreign countries. The development of the rubber
plantations of Malaya and of the mineral resources of Algeria has
led to decreases in the pèrcentage of exports to the mother countries.
During the war the United States became the market for the copra
of the Pacific Islands, and the return cargoes gave Americans an
increased hold on the markets of those islands for manufactured
goods. The value of an assured market for palm kernels in Ger-
many was formerly a factor in preventing Great Britain from estab-
lishing a palm kernel crushing industry. Canadian furs were sent
unfinished to Germany and one of the largest items of Canadian
import from Germany was finished furs. Normally, however, there
is a sufficient market in the mother country, at least as an entrepôt,
and the language, the habits of immigrants and officials, the invest-
ment of capital, the mercantile organization, the banking and ship-
ping facilities all tend to reinforce one another and to promote the
trade between the colony and the mother country. -
170 Compare the statement of Prime Minister Hughes, of Australia, that he is not
opposed to selling to the ex-enemy countries, but only to buying from them. (The Times
Trade Supplement, Nov. 13, 1920, p. 202.) -
180 The acquisition of political ascendancy in a given region is not necessarily followed
by any increase in the percentage of trade falling to the dominant country. Great
Britain's share in the import trade of Egypt decreased in the decade following the British
occupation (Milner, England in Egypt, 1893, p. 263) and has continued to decrease.
The percentages are : 1881, 57 per cent; 1891, 54 per cent ; 1901, 36.5 per cent ; 1913,
30.4 per cent. But since Egypt's trade has been growing rapidly the smaller percentage
of trade in 1913 was half again as waluable as was the larger percentage in 1901 (the
figures being £5,568,000 and £8,496,000), and it is similarly much greater than was 57
per cent of the trade of 1881. Here, as in India, the rise of other industrial nations
has cut into the semimonopoly at one time possessed by the British, but has not pre-
vented a great expansion in the absolute amount of British trade.
The annexation of Hawaii did not increase the share of the United States in the import
trade of that territory. (Reciprocity and Commercial Treaties, p. 134.)
78 COLONIAL TARIFF POLICIES.
15. THE OUTLOOK IN REGARD TO PREFERENTIAL TARIFFS.
The open-door policy, whether pursued as a freely adopted na-.
tional policy or continued in accordance with treaty obligations, has
been losing ground steadily for 20 years or more. Open-door agree-
ments since 1900 have consisted of making more definite or reaffirm-
ing old guarantees for equality of treatment. The conference of
Algeciras in 1906 resulted merely in an elaboration of an open-door
régime which had existed in Morocco for decades, and the Japanese
pledge of 1910 in regard to Korea was simply to maintain for 10
years the status quo. Likewise the Anglo-French agreement of
1906, relating to the New Hebrides, followed earlier treaties, of
which the first had been made in 1878, and the open-door provision
of the Anglo-German-American treaty of 1899 in regard to Samoa
repeated in effect a provision of the treaty of 1889. The treaty of
Versailles and the covenant of the League of Nations explicitly pro-
vided for the open door only in central Africa, where it had long
been maintained in accordance with the general act of the conference
of Berlin and the Anglo-German declarations of the same year.”
Furthermore, the principle of the maintenance of the open door in
colonial possessions has been positively weakened in the last score of
years. In 1896–97 the powers abandoned their right to the open
door in Tunis and the last treaty restriction upon the assimilation of
this territory was denounced in 1919. In 1905 the Italians abolished
the open-door régime in Somalia in defiance of the act of Berlin. In
1909 the provision for the equal treatment of Spanish and American
commerce in the Philippines expired. In 1912 the French pro-
tectorate over Morocco was recognized—a recognition which, how-
ever guarded, has led the French to feel that the situation has been
fundamentally altered and to hope that the history of Tunis may be
repeated. The year 1920 saw the expiration of Japan's pledge to
maintain the status quo in Korea. The recent peace treaty with
Germany apparently swept away the obligations of the Anglo-
German, declarations, 1885–1886, relative to the territories situated
on the Gulf of Guinea and to the islands of the Pacific Ocean.” In
Southwest Africa and Western Samoa differential tariffs have since
been imposed. The peace treaty further deprived the Germans of
their right to most-favored-nation treatment in Morocco, and this
has been interpreted in France as foreshadowing the general recog-
nition by the powers of a right on the part of .#. to grant her
citizens special tariff favors in Morocco.” . .
In this period in which have terminated so many treaty obliga-
tions in respect to the open door, the establishing of preferential
tariffs has been going on steadily.” In fact, since 1890 the whole
18. The treaty of Versailles perhaps implies an obligation to maintain the open door in
the ex-Turkish territories; here the powers had not only enjoyed equal treatment but
had had the benefit of the limited rate of import duties. See appendix to Chapter IV for
a discussion of the mandated territories. -
184 And the rights of Germany, but of course not those of the United States, under the
Angºlerºmeº treaty of 1899. See appendix to Chapter IV, p. —.
*The French argument is that, the other powers in assenting to the abolition of the
German rights in Morocco implicitly assented to the renunciation of their own rights.
See Chapter III, p. —.
* The Republic of Portugal has held the Portuguese colonies with a somewhat looser
rein than did the monarchy, but the fundamental colonial law still requires a differential
of at least 50 per cent in colonial import duties. The French have taken St. Pierre and
Miquelon from the list of assimilated colonies and established a special tariff in which
the preferences are less than formerly. In a few other isolated instances differential
colonial tariff rates have been decreased, but on the whole the tendency has been decidedly
in the other direction. -
INTRODUCTORY SURVEY. 79
preferential system may be said to have revived after a lapse of half
a century. The protectionist reaction from the free-trade move-
ment of the middle of the nineteenth century was in full swing in
the late seventies, but it was not until the early nineties that it made
its full appearance in the colonial tariffs of France, Spain, and
Portugal. Of these countries, France is by far the most important
colonial power, and France has not ceased to increase the tariff
preferences which bind her and her colonies. Italy introduced pref-
erences in 1905 in Somalia and later in Libia. Japan assimilated
the tariffs of Formosa in 1909 and of Korea in 1920. In the British
Empire the reestablishing of preferential tariffs has been effected
entirely since 1897. While the motives which have induced the Do-
minions to adopt these preferences are mixed, and while protection
is generally the principal object, the variety and amounts of the
preference have on the whole steadily grown, and if Great Britain's
enforcement of the preferential policy (1919) proves to be the be-
ginning of a permanent change of policy, any chance that the Do-
minions might reverse their policy has apparently disappeared.
Before 1913 there were, with only one important exception, no pref-
erences either in India or in the numerous Crown colonies. In 1913
half of the West Indies adopted a preferential system, and with the
close of the war they have been followed by the other colonies of the
West Indian group,” and by Cyprus, while a few examples of the
most extreme form of restrictions have been established in India
and in the West African Colonies. The maintenance by the British
Imperial Government of a preferential tariff policy can scarcely fail
to lead to the extension of such a policy among the Crown colonies.
The war reenforced the spirit both of nationalism and of imperial-
ism. The fiscal needs of the Government and the depression of in-
dustry alike suggest the exploitation of this spirit by the raising of
tariffs and the enforcement of new or increased differentials.
The era of colonial expansion is apparently not yet ended. The
annexation of new territory continues, as well as the conversion of
spheres of influence into protectorates and of protectorates into colo-
nies. The chief acquisitions in recent times and the most probable
acquisitions for the future have been and probably will be made by
those powers which pursue the most exclusive trade policies, or by the
British, who show signs of abandoning their free-trade and open-door
tariff policy.
The greater part of the world has already been occupied by the
colonial powers, but there remain territories, whose continued inde-
pendence is in doubt—notably Persia, Afghanistan, Tibet, Abys-
sinia, and Liberia. Japan has already an economic hold upon South-
ern Manchuria, is making claims on Eastern Inner Mongolia, is ad-
vancing in China proper; and her future relations with Siberia
remain unsettled. .
185 Except Bermuda, whose legislature declined to ratify the agreement with Canada.
O
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LETTER OF TRANSMITTAL.
UNITED STATES TARIFF CoMMISSION,
Washington, March 28, 1921.
: The Committee on Ways and Means of the House of Representatives:
I have the honor to transmit herewith, in accordance with your
request, a report by the United States Tariff Commission, suggesting
a reclassification of Schedule A, and of related provisions of the
tariff act of October 3, 1913, dealing with chemicals, oils, and paints.
Very respectfully,
THOMAS WALKER PAGE,
Chairman,
3
SUGGESTED RECLASSIFICATION OF CHEMICALS, OILS,
AND PAINTS.*
REPORT TO CONGRESS SUGGESTING A RECLASSIFICATION OF
SCHEDULE A, AND OF RELATED PROVISIONS OF THE ACT OF
OCTOBER 3, 1913.
The Committee on Ways and Means of the House of Representatives:
The chemical industries of the United States have undergone a
marked development since the passage of the tariff act of 1913.
Many fundamental changes have occurred which have influenced
conditions of international trade. There are accordingly commodi-
ties not mentioned specifically in the tariff law now in force, which
have developed in commercial importance to such an extent that
specific enumeration or special tariff treatment may seem desirable.
The Tariff Commission has made a careful and detailed study of
the phraseology of the present tariff laws and of the litigation and
decisions arising in its operation. This investigation has revealed
many provisions in which the names or descriptions of commodities
or the specification of different grades or varieties of an article could
be modified so as to make the tariff law clearer, less liable to give
rise to litigation, easier to administer, and more in accord with com-
mercial practice and nomenclature. In this study the Commission
has had the benefit of the comment and criticism of customs authori-
ties and representative manufacturers and importers. The sugges-
tions in the following pages are confined to matters of wording, ar-
rangement, and classification. No attempt is made herein to transfer
articles from the dutiable to the free list or the reverse, nor to discuss
the relative merits of specific or ad valorem rates in general, but in
some cases special reasons are given which make the one or the other
kind of duty desirable. There are still other cases in which the best
name or specification of grades may be different for specific than for
ad valorem rates.
The proposed reclassification follows in general the arrangements
and paragraphs of the act of 1913. The provisions of the act of
September 8, 1916, relating to dyes and other coal-tar chemicals have
been modified to correspond in general to the amendments proposed
in H. R. 8078, of the Sixty-sixth Congress, second session, and have
been incorporated in successive paragraphs to take the place of the
provisions in the act of 1913 which were repealed in 1916.
The Tariff Commission has already submitted to the Congress cer-
tain information regarding the chemical industries which may be
*In the preparation of this report the Tariff Commission had the services of
C. R. DeLong, Sidney D. Kirkpatrick, and W. N. Watson, of the Chemical
Division ; Charles E. McNabb, of the Legal Division, and others of the Com-
mission’s staff, and H. L. Barrick, of the Customs Division of the Treasury
Department. - -
5
6 SCHEDULE A-CHEMICALS, OILS, AND PAINTS.
helpful in determining rates of duty and tariff policies. Economic
and industrial conditions in the industries producing dyes and coal-tar
chemicals, acids, barytes and barium j incandescentigas
mantles, crude drugs, starch and potato-products, sulphur, and
potash have been discussed in special reports of the Commission. In
addition information concerning imports and exports, production.
consumption, and other factors affecting the international com-
Fº situation has recently been submitted to the Ways and
eans Committee in the form of Tariff Information Surveys dealing
with all of the articles included in the chemical schedule.
Respectfully submitted.
THOMAS WALKER PAGE, Chairman.
DAVID J. LEWIs.
WILLIAM. S. CULBERTSON.
EDWARD P. CostIGAN.
DUTIABLE LIST.
schEDULE A. CHEMICALs, ords, AND PAINTs.
(Space left blank in right-hand column is for insertion of rate.
The figures
in parentheses refer to the numbers of the paragraphs in the reasons for
the suggested reclassification.)
PARAGRAPH 1.
ACT OF 1909.
1. * * * Boracic acid, 3 cents per
pound; * * * citric acid, 7 cents per
pound; lactic acid, containing not over 40
per centum by weight of actual lactic acid,
2 cents per pound; containing over 40 per.
centum by weight of actual lactic acid,
3 cents per pound; oxalic acid, 2 cents
per pound; salicylic acid, 5 cents per
pound; * * * tannic acid or tannin,
35 cents per pound; gallic acid, 8 cents
per pound; tartaric acid, 5 cents per
pound; all other acids not specially pro-
vided for in this section, 25 per centum
ad valorem.
ACT OF 1918 AS MODIFIED BY
THE ACT OF 1916.
1. Acids: Boracic acid, three-fourths
cent per pound; citric acid, 5 cents per
pound; formic acid, Jº cents per pound;
gallic acid, 6 cents per pound; lactic acid,
13 cents per pound; oxalic acid, 1} cents
per pound; pyrogallic acid, 12 cents per
pound; * * tannic acid and tannin,
5 cents per pound; tartaric acid, 3% cents
per pound; all other acids and acid
anhydrides not specially provided for in
this section, 15 per centum ad valorem.
(NOTE:-The provision for salicylic
acid was repealed by section 502 of tho
act of September 8, 1916.)
SU G-GE STED RECILASSIFICA-
TION.
Par. . Acids and acid anhy-
tº º ºs tº sº sº e º º sº
s = * * * * * * * * * * * * * * * ; chloroacetic acid (3)
sº e º ſº º sº gº ºn gº tº e º 'º º s º ºs º ºs º sº sº sº º sº º tº gº tº º ; citric
acid, -------------------------- ; formic
acid, --------------------------- ; gallic
acid, ------------------------ ; lactic (4)
acid.}} :::::: per centum ad valorem; . .
'Ub containing by weight of lactic
º per pound; 30 per centum or more
(ii less than 55 per centum, . . . . . .
º per pound; and 55 per centum or
7
SCHEDULE A-CHEMICALS, OILS, AND PAINTS.
triº any lactic-acid anhydride pres:
* - * * - - - - - - - - - - - - - - * *- - as - - - - - - - - - - - - -
- * - - s - - as - - as - - sº * - sº - - - -
* - - - - - sº - - e - - sº - - - - - - - - - ; pyrogallie acid,
s - - - - - * - - - - - E - - s - - - - - . . . . . . . . . ; stearic
acid (6), ----------------------------
tannic () acid, tannin, and extracts or
decoctions of mutgalls, containing by
weight of tannic acid, less than 50 per
centum, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - •
50 per centum or more and less than 80
per centum, ... . . . . . . . . . . . . . . . . . . . . . . ;
and 80 per centum or more, . . . . . . . . . .
as tº a s sº as as ºr * * * * * * * * * * * * * * * * ; tartaric acid,
s - as sº e º a • * * * * * * * * * * * * * * * * * * ~ * ; all other
acids and acid anhydrides not specially
provided for in this Section, . . . . . . . . . . .
e = * * * * * * * * * * * * * * * * * * *
SCHEDULE A–CHEMICALs; otis, AND PAINTs. 9
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Acetic ‘‘anhydrid” has been transferred from paragraph 2
to bring together all dutiable acid anhydrides. The correct spellin
is acetic anhydride. The heading for paragraph 1 has been change
to “Acids and acid anhydrides.” A similar change has been made
for the heading of paragraph 387, which covers acids free of duty.
(2) Boracic acid is an obsolete name; boric acid is the generally
accepted term. 3. . -
(3) Chloroacetic acid is an important acid not specifically pro-
vided for in the act of 1913. It is an important chemical used in
the manufacture of the coal-tar dye indigo, which, in quantity, is
one of the most important dyes manufactured in this country.
Owing to the development of the domestic dye industry, chloro-
acetic acid has become of increasing importance. It is suggested
that it be provided for by name. -
(4) Lactic acid appears on the market in many grades varying in
strength, in quality or purity, and in price. Therefore, a single
specific duty bears unevenly on the different grades. Any attempt
to put graduated rates on the different grades would cause serious
administrative difficulties and would probably lead to litigation,
because the distinctions between the different grades aside from
strength can not be adequately stated in simple language suitable
for incorporation in the tariff law, but would require elaborate
chemical specifications. If such elaborate chemical specifications
were adopted they would probably require frequent revision to con-
form to technical advances in the manufacture of the edible lactic
acid, which is a relatively new commercial product and for which a
progressive improvement in Cuality may be expected for many years.
The Commission offers alternative proposals by which the difficulty
may be overcome, (a) by a single ad valorem duty and (b) by different
specific rates based on strength with a minimum ad valorem rate.
As imports will come mainly from Germany, ad valorem duties would
be affected by depreciation of the German mark. Specific duties
(b) could apply to the technical grades of the acid and the minimum
ad valorem rate to the higher grades (edible and U. S. P.). This
classification avoids necessity for a chemical specification of the
different grades and at the same time insures that the rate on the
better grades could not fall below a certain ad valorem rate. The
strength of the acid can easily be determined by chemical analysis,
and division of the grades has been selected about midway between
the usual commerical strengths, so that samples coming close to the
dividing lines shall be relatively few in number. Lactic acid always
contains some lactic-acid anhydride in varying amounts depending
upon the concentration and previous treatment of the acid. On
dilution with water this lactic-acid anyhydride is largely converted
into lactic acid, and is therefore equivalent in part at least to lactic
acid for most purposes. The Commission therefore suggests a further
provision that any lactic-acid anhydride present in the lactic acid
shall be determined as lactic acid and included as such.
The entire provision would then read:
Lactic acid containing by weight of lactic acid, less than 30 per centum, . . . . . . Cents
per pound; 30 per centum or more and less than 55 per centum, . . . . . . cents per
pound; and 55 per centum or more . . . . . . cents per pound: Provided, That any
10 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
lactic-acid anhydride present shall be determined as lactic acid and included as
such: And provided further, That the duty shall not be less than . . . . . . per centum ad
valorem.
(5) An important acid not specially provided for and falling within
the provision in paragraph 1 of the act of 1913 for “all other acids”
is oleic acid, commonly known as “red oil” and “olein” and obtained
from true olein by saponification or hydrolysis. Olein, also known as
oleo or olein oil, is a liquid obtained as a joint product with stearin
from tallow and other fats.
(6) Stearic acid is another important acid not more specifically
enumerated than as an acid not specially provided for. Stearic acid
is commonly known as “stearin,” although the word Stearin refers
to the combination of stearic acid and glycerin, which combination
naturally occurs in beef tallow and other animal fats, and from
which stearic acid is obtained by saponification.
(7) The provision for tannic acid and tannin should be con-
sidered in connection with the provision in paragraph 30 which reads:
Extracts and decoctions of nutgalls “ ” * not specially provided for in this
Section; all the foregoing not containing alcohol and not medicinal, three-eighths of
1 cent per pound.
When nutgalls are soaked in water they dissolve in part, yielding
a solution or extract (the principal ingredient of which is known as
tannic acid), together with coloring materials, resins, and other im–
purities. The product may be filtered or decanted from the insoluble
residue, and, either with or without further concentration by evapora-
tion of water, be sold as “liquid extract of nutgalls” or as “aqueous
extract of nutgalls,” or simply as “extract of nutgalls.”
The commercial article commonly contains 25 to 30 per cent of
tannic acid, although both stronger and weaker articles are met with
in commerce.
The liquid extract may be further concentrated by evaporation of
the water to a semisolid or pasty condition or to a dry powder. This
product is sometimes called “solid extract of nutgalls” or “extract
of nutgalls” and sometimes “tannic acid, technical.” Technical
tannic acid generally refers to the dry powder containing 70 per cent
or more of tannic acid.
A purer product may be made either by chemical treatment of the
liquid extract or by extraction of the nutgalls with some other
solvent than water. This is known as “tannic acid, U. S. P.,” if it
is pure enough to conform to the specifications of the United States
Pharmacopoeia, which insure a product suitable for medicinal use,
but do not require that the product be chemically pure. The U. S.
P. grade may contain nearly 15 per cent of impurities including water.
The distinction between tannic acid and nutgall extracts and the
classification of “extracts of nutgalls” have occasioned much litiga-
tion and several changes in tariff phraseology.
There is, in fact, no clear and sharp distinction in commercial
practice between a solid “extract of nutgalls” and “tannic acid,
technical.” An importation claimed to be nutgall extract in a solid
form, and which on analysis was found to contain 78.34 per cent of
tannic acid, was held without evidence of the process of manufacture
to be dutiable as tannic acid. (East Asiatic Co. v. United States, 10
Ct. Cust. Appls., ; T. D. 38555 of Nov. 23, 1920.) The testi-
mony was conflicting, some witnesses limiting “extract of nutgalls”
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. ll
in commerce to a liquid extract, and other witnesses extending it to
include the solid product obtained by evaporation of water from the
liquid extract, and claiming that further purification by chemical
treatment was necessary to yield the product known in commerce
as “tannic acid.”
American manufacturers have suggested that a higher specific rate
of duty should be put on the U. S. P. grade than on the technical
grade on the ground that an expensive purification process is required
to produce the U. S. P. grade from the technical grade and that the
cost and value of the U. S. P. grade are higher than the technical
grade. The following language would accomplish that purpose:
Tannic acid, tannin, and extracts or decoctions of nutgalls, containing by weight
of tannic acid, less than 50 per centum, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; 50 per
centum or more and less than 80 per centum, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; and
80 per centum or more, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
This would make the U. S. P. grade and the technical grade of
tannic acid and the liquid extracts of nutgalls dutiable at different
rates. It would, furthermore, render unnecessary a distinction be-
tween “solid extract of nutgalls” and “tannic acid, technical,”
which has caused uncertainty in the trade and litigation. Distinc-
tion between liquid, semisolid, and solid extracts of nutgalls is deemed
unessential under this arrangement.
PARAGRAPH 2.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
1. * * * Acetic anhydrid, 24 cents
per pound; * * * |
ACT OF 1913.
(This paragraph has been combined
with paragraph 1.) >
2. Acetic anhydrid, 24 cents per
pound. |
PARAGRAPH 3.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
Not specially provided for.
Par. . Acetone, acetone oil (1),
ACT OF 1913.
3. Acetone, 1 cent per pound. and ethyl methyl ketone (2), . . . . . . . . . .
* ºr sº as s = * * * * * * * * * * * * * * *
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Acetone oil, obtained in the purification of acetone, was
declared dutiable under the eo nomine provision for acetone in
º 3 (McEnany v. United States, 8 Ct. Cust. Appls., 329,
Of 1918.
(2) Ethyl methyl ketone is the chief chemical compound con-
tained in acetone oil and is obtained from acetone oil by fractional
distillation. It is used for solvent purposes similar to acetone oil.
Because of its commercial importance it might well be mentioned
12 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
specifically. Close chemical relation between acetone oil and ethyl
methyl ketone and administrative difficulties in distinguishing them
render advisable a single rate of duty. -
PARAGRAPH 4.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
257. * * * Albumen, egg # * *
3 cents per pound. * * * (It is suggested that paragraph 4 be
transferred to and combined with para-
ACT OF 1913. graph 204, Schedule G, which provides
for dried eggs and egg yolks. Informa-
4. Dried egg albumen, 3 cents per | tion indicates that the bulk of imported
pound. dried egg albumen is used by bakers and
confectioners.)
PARAGRAPH 5.
ACT OF 1909. SUGGESTED RECLASSIFICA-
- | TION.
3. Alkalies, alkaloids, and
all combinations of the foregoing, and
all chemical compout.ds, mixtures and Par. . (1) All chemical elements
salts, * * * not specially provided
for in this section, 25 per centum 3d
valorem. (2), and all chemical and medicinal com-
65. * * * All other medicinal prepa-
rations not specially provided for in this
section, 25 per centum ad valorem. pounds, preparations, mixtures and salts,
* * *
ACT OF 1913. -
and combinations thereof, all the forego-
5. Alkalies, alkalóids, and all chemi-
cal and medicinal compounds, prepara-
tions, mixtures and salts, and combi- ing obtained naturally or artificially (3)
nations thereof not specially provided
for in this section, 15 per centum ad
valorem. and not specially provided for in this
Section, . . . . . . . . . . . . . . . . . . . . . . . . - - -
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Alkalies are a class of chemical compounds which have the
property of combining with acids to form salts. All of the alkalies
which are of any considerable industrial and commercial importance
are mentioned specifically. A few of the alkalies have medicinal
uses, but these are of minor importance when compared with their
industrial chemical uses.
Alkaloids are a class of chemical compounds having strong and
varied physiological effects and therefore are of great importance
in medicine. Many of them occur in plants and are made therefrom,
but many new ones not found in nature are made by chemical proc-
esses. The following alkaloids are mentioned specifically º 3,1'G
therefore not dutiable under this paragraph: Quinine and all alka-
loids derived from cinchona bark, cocaine, morphine and all alkaloids
of opium, ecgonine, Strychnine, and caffeine.
As alkalies and alkaloids are covered by the general provision for
chemical and medicinal compounds in paragraph 5, and as the
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 13
important alkalies and alkaloids are mentioned specifically, it is
suggested that these two terms be omitted.
(2) The words “all chemical elements” have been inserted in order
to include in this paragraph such chemical substances as chlorine,
oxygen, and argon, and similar chemical elements which would not
come within the provision for “chemical compounds.”
(3) In view of the judicial definition of chemical compounds and
limitation to artificial combinations (Strohmeyer v. United States,
2 Ct. Cust. Appls., 285, of 1911, and United States v. Davies, 5 Ct.
Cust. Appls., 196, of 1914), it is doubtful whether alkaloids obtained
from natural sources would be included within the provision for
chemical compounds, although they are chemical compounds having
definite chemical formulae. In order to remove such doubt the
words “all the foregoing obtained naturally or artificially” have been
added so as to make provision for all chemical and medicinal ele-
ments, compounds, preparations, mixtures, and salts whether de-
rived from natural sources or manufactured by artificial means.
PARAGRAPH 6.
ACT OF 1909. | SUGGESTED RECLASSIFICA-
TION.
4. Alumina, hydrate of, or refined - -
bauxite, containing not more than 64 Par. Aluminum hydroxide (1).
per centum of alumina, four-tenths of 1
cent per pound; containing more than 64 - g
per centum of alumina, six-tenths of 1 or refined bauxite, . . . . . . . . . . . . . . . . . . . .
cent per pound. Alum, alum cake,
patent alum, Sulphate of alumina, and
aluminous cake, containing not more | . . . . . . . . . . ; potassium aluminum sul-
than 15 per centum of alumina and more
than three-tenths of 1 per centum of
iron oxide, one-fourth of 1 cent per phate or potash alum (2), . . . . . . . . . . . .
pound; alum, alum cake, patent alum,
sulphate of alumina, and aluminous
cake, containing more than 15 per centum - - - - - - - - - - - - - - - - - - : ammonium alumi-
of alumina, or not more than three-tenths
of 1 per centum of iron oxide, three- & -
eighths of 1 cent per pound. num sulphate or ammonia alum (2),
ACT OF 1913. *
* - * * * * * * * * * * * * * * * * * * * * * * * m = m. a. s. ; alumi-
6. Alumina, hydrate of, or refined
bauxite; alum, alum cake, patent alum,
sulphate of alumina, and aluminous num Sulphate, (3) alum cake or alumi-
cake, and all other manufactured com-
pounds of alumina, not specially pro- s º
vided for in this section, 15 per centum nous cake, (4) containing not more than
ad valorem.
15 per centum of alumina and more iron
than the equivalent of one-tenth of 1 per
centum of ferric oxide, . . . . . . . . . . . . . . . .
* * * * * * * * * * * * * * ; containing more than 15
per centum of alumina or not more iron
14 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
than the equivalent of one-tenth of 1 per
centum of ferric oxide, . . . . . . . . . . . . - - - -
* * * * * * * * * * * * * * ; all other aluminum com-
pounds (5) not specially provided for in
this section, . . . . . . . . . . . . . . . . . . . . . . . . . .
tº tº e º sº sº sº s º e s s as sº * * * * * * * * * * *
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The term “Alumina, hydrate of,” in paragraph 6, act of 1913,
has been replaced with the more modern term aluminum hydroxide,
because hydrate, strictly speaking, refers to chemical compounds
containing water of crystallization. -
(2) The two most important true alums are potassium aluminum
Sulphate or potash alum and ammonium aluminum Sulphate or am-
monia alum. These two products are mentioned specifically in the
suggested reclassification because of their commercial importance
and because they sell for nearly twice as much as aluminum sulphate
even when iron free. They should logically bear a different rate of
duty (especially if duties are specific) than aluminum sulphate with
which they are now classified.
(3) The term “sulphate of alumina” has been replaced with
aluminum sulphate. “Patent alum” appearing in paragraph 6 is
omitted because obsolete. “Alum” also is omitted, because the
principal alums are mentioned specifically in the first part of the
paragraph. It is, moreover, an indefinite term, as it includes chrome
alums, which contain no aluminum.
(4) In the act of 1913 no distinction is made between the different
grades of aluminum sulphate, but all are dutiable at the same ad va-
lorem rate. In the act of 1909 these articles were divided into two
classes with specific rates of one-fourth cent per pound and three-
eighths cent per pound, respectively. The lower rate was imposed
on the products “containing not more than 15 per centum of alumina
and more than three-tenths of 1 per centum of iron oxide.” In the Sug-
gested reclassification the different grades are divided according to
the iron content and alumina content, with provision for separate
rates on the two grades, as they vary widely in value. In case the
Congress considers the placing of specific rates of duty on these two
ades, a revision of the specifications which were used in the act of
1909 should be considered. The specification “more than three-
tenths of 1 per centum of iron oxide” might well be changed to read
“more iron than the equivalent of one-tenth of 1 per centum of ferric
oxide,” because the grade sold as “iron-free” contains less than one-
tenth per cent of ferric oxide, whereas the iron-containing grades,
commonly dealt with commercially, will frequently contain less than
three-tenths per cent of ferric oxide. It is suggested that “Oxide
of iron” be replaced with ferric oxide, the latter having a precise
chemical meaning, whereas “oxide of iron” is not definite, since there
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 15
are two different oxides of iron known as ferrous oxide and ferric oxide,
containing different proportions of iron. . It is customary in the trade
to express the total quantity of iron salts present in terms of ferric
oxide, regardless of whether it is present as ferrous or as ferric iron.
(5) The all-other provision has been changed from “manufactured
compounds of alumina”, to “aluminum compounds” because this
is more in accord with scientific and commercial nomenclature.
PARAGRAPH 7.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
5. Ammonia, carbonate of, 13 cents per - sº
pound; muriate of, or Sal ammoniac, Par. . (1) Ammonium carbonate,
three-fourths of 1 cent per pound; liquid
anhydrous, 5 cents per pound.
ACT OF 1913.
7. Ammonia, carbonate of, and muriate nium chloride (2), . . . . . . . . . . . . . . . . . . . . .
of, three-fourths of 1 cent per pound;
phosphate of, 1 cent per pound; liquid
anhydrous, 2% cents per pound; ammoni- . . . . . . . . . . ; ammonium phosphate, . . . . .
acal gas liquor, 10 per centum ad valorem.
ACT OF 1909. Par. . Antimony (4): Oxide, . . . .
173. * * * antimony, oxide of, 1}
cents per pound and 25 per centum ad
valorem.
* * * * * * * * * * * * * * * * * * * * * * * * * * * ; Sulphides,
ACT OF 1913. e ; and
144. * * * antimony oxide, salts,
º compounds of 25 per centum ad Va- other antimony compounds not specially
OTGIſl.
provided for in this Section, . . . . . . . . . . . .
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Ammonia (NHA) is a colorless gas composed of one part of
nitrogen and three parts of hydrogen, by volume. “Ammonium”
designates a chemical radical (NHA) which does not occur by itself,
like ammonia, but is always combined with some acid radical to
16 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
form ammonium salts, such as ammonium chloride. Ammonium is
the correct chemical term and is the One in general use.
(2) “Muriate of ammonia,” correctly speaking, is ammonium
chloride. . . . . . . . * ,
(3) Aqua ammonia is a liquid solution of ammonia (NHA). It was
mentioned in previous tariff acts, but not in the act of 1913.
(4) The provision for antimony compounds in paragraph 144 has
been transferred from Schedule C to Schedule A and assigned a sepa-
rate paragraph. • .
The provision for “antimony oxide, salts, and compounds of,” the
Court of Customs Appeals has held (United States v. Innis, Speiden
& Co., 7 Ct. Cust. Appls. 3, of 1916), is not to be read as if there
were a comma after the word “antimony,” and antimony Sulphide
was declared not classable as a salt or compound of antimony oxide
under this paragraph, but dutiable as a chemical compound or salt
under paragraph 5. The legislative history shows that when the tar-
iff bill of 1913 was passed by the House of Representatives there was
a comma after the word “antimony” and none after the word
“oxide’’; that the comma after the word “antimony” was stricken
out in the Senate; and that a comma was inserted by the conference
committee after the word “Oxide,” thereby making the law read
“antimony oxide, salts, and compounds of ’’ (G. A. 7688, T. D. 35142,
of 1915). Antimony oxide has also been held not within this para-
graph (G. A. 7899, T. D. 36364, of 1916).
The most important antimony compounds are antimony Oxide and
the antimony sulphides. In 1914 imports of antimony oxide
amounted to about 390,000 pounds, 50 per cent of which came from
Germany, and imports of antimony sulphide to over 300,000 pounds.
It is suggested that antimony Oxide and antimony sulphides be given
specific mention and that a provision for “all other” antimony com-
pounds be included in this paragraph.
PARAGRAPH 8.
ACT OF 1909. | SUGGESTED RECLASSIFICA-
TION.
6. Argols or crude tartar or wine lees
crude, 5 per centum ad valorem; tartars Par. . Argols, tartar, and wine
and lees crystals, or partly refined argols,
containing not more than 90 per centum
of bitartrate of potash, and tartrate of lees, crude or partly refined (1), contain-
Soda or potassa, or Rochelle Salts, 3 cents
per pound; containing more than 90 per
centum of bitartrate of potash, 4 cents per
pound; cream of tartar and patent tartar,
5 cents per pound.
- tassium bitartrate, . . . . . . . * - - - - - - - - - - - -
ACT OF 1913.
ing not more than 90 per centum of po-
8. Argols or crude tartar or wine lees . . . . . . . . . . ; containing more than 90 per
crude or partly refined, containing not
more than 90 per centum of potassium
bitartrate, 5 per centum ad valorem; con- centum of potassium bitartrate; cream of
taining more than 90 per centum of potas-
sium bitartrate, cream of tartar, and
Rochelle salts or tartrate of soda and tartar, Rochelle salts or potassium-sodium
potassa, 2% cents per pound: calcium tar-
trate crude, 5 per centum ad Valorem.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 17
tartrate (2), and tartar emetic or potas-
sium-antimony tartrate (3), . . . . . . . . . .
calcium tartrate,
crude, ...------------------------------.
REASONS FOR SUGGESTED RECLASSIFICATION,
(1) Argols, tartar, and wine lees, dissimilar in some respects, may .
each be imported both in crude and in a partially refined condition
and still contain not more than 90 per cent of potassium bitartrate.
By the suggested change, the phrase “crude or partly refined” is
made to limit argols and tartar, as well as wine lees. Because of the
wide range in price, due to the varying tartar content of these crude
materials, an ad valorem duty has advantages over specific rates.
(2) Rochelle salts are chemically potassium-sodium tartrate.
“Potassa” is obsolete in both commercial and scientific usage.
(3) Tartar emetic, chemically potassium-antimony tartrate, is an
important tartrate closely related to Rochelle salts and cream of
tartar.
- PARAGRAPH 9.
ACT OF 1909. SUGGESTED RECLASSIFICA-
559. Drugs, such as * *, * bal- TION.
sams, * * *; any of the foregoing par. . Balsams: Copaiba, fir or
which are natural and uncompounded
drugs and not edible and not specially
provided for in this section, and are in a
crude state, not advanced in value or
condition by any process or treatment
whatever beyond that essential to the
proper packing of the drugs and the pre-
vention of decay or deterioration pending
manufacture: Provided, That no article
containing alcohol, or in the preparation
of wº º: º shall be ºmitted -
free of duty under this paragraph. & &
20. Drugs, such as * * * balsams, ' ' ' ' ' ' ' ' ' ' ' ' ' ' . . . . . . . . . . . . Provided,
* * * which are natural and uncom- A •
pounded drugs and not edible, and not
specially provided for in this section,
but which are advanced in value or
condition by any process or treatment
whatever beyond that essential to the
proper packing of the drugs and the pre-
vention of decay or deterioration pending
manufacture, one-fourth of 1 cent per
pound, and in addition thereto 10 per
centum ad valorem: Provided, That no
article containing alcohol, or in the prep- |
aration of which alcohol is used, shall be
classified for duty under this paragraph.
ACT OF 1913.
9. Balsams: Copaiba, fir or Canada,
Peru, tolu, and all other balsams, which
are natural and uncompounded and not
suitable for the manufacture of perfum-
ery and cosmetics, if in a crude state,
40650–21 2
Canada, Peru, tolu, styrax, and all
other balsams, all the foregoing which
are natural and uncompounded (1), . . . .
That no article containing alcohol shall be
classified for duty under this paragraph.
18 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
not advanced in value or condition by
any process or treatment whatever be-
yond that essential to the proper packing
of the balsams and the prevention of
decay or deterioration pending manufac-
ture, all the foregoing not specially pro-
vided for in this section, 10 per centum
ad valorem; if advanced in value or con-
dition by any process or treatment what-
ever beyond that essential to the proper
packing of the balsams and the preven-
tion of decay or deterioration pending
manufacture, all the foregoing not spe-
cially provided for in this section, 15 per
centum ad valorem: Provided, That no
article containing alcohol shall be classi-
fied for duty under this paragraph.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The phrase “not suitable for the manufacture of perfumery and
cosmetics” is meaningless, since any balsam of salable quality can
be used for making perfumes and cosmetics. In actual practice this
clause is necessarily disregarded by the customs authorities.
A study of the imports shows that practically all of the balsams are
imported in a crude state. In other words, the provision in the para-
graph which reads “if advanced in yalue or condition by any process,
etc.,” is practically, inoperative. It may be argued that the 5 per
cent differential is in effect prohibitive and forces the entry of the
crude material. On the other hand, it is believed that all balsams are
crude articles within the meaning of this paragraph, and that when
advanced beyond this condition they lose their identity as balsams
and become purified resins, essential oils, or other natural odoriferous
or aromatic substances used in perfume manufacture.
The Board of General Appraisers has held that a balsam drawn
from a tree and submitted to straining for purification is regarded in
the trade generally as being in a crude condition (T. D. 27 162, G. A.
6303, of 1906). The principle has been applied to other balsams and
gum resins. (United States v. Sheldon, 2 Ct. Cust. Apple., 485; T. D.
3224.5, of 1912; and T. D. 35172, G. A. 7694, of 1915.)
Styrax is the principal balsam included within the provision for
“all other balsams;” the imports since 1909 have averaged about
15,000 pounds. Its importance warrants specific mention.
PARAGRAPH 10.
ACT OF 1909. SUGGESTED RECILASSIFICA-
TION.
|Not specially provided for.
p y p Par. Barium carbonate (1), pre-
ACT OF 1913.
10. Barium, chloride of, one-fourth cipitated, . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;
cent per pound; dioxide of, 13 cents per
pound; carbonate of, precipitated, 15 per
barium chloride, . . . . . . . . . . . . . . . . . . . . . .
centum ad valorem.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
19
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) “Of” has been omitted in this paragraph in order to make
the description of these barium compounds conform to general usage
and to similar changes made throughout the reclassification.
(2) Barium nitrate is an important compound, was imported in
large quantities before the war, and is now being made in the United
States.
PARAGRAPH 11.
ACT OF 1909.
7. Blacking of all kinds, 25 per centum
ad valorem; all creams and preparations
for cleaning or polishing boots and
shoes, 25 per centum ad valorem.
ACT OF 1913.
11. Blacking of all kinds, polishing
powders, and all creams and prepara-
tions for cleaning or polishing, not
specially provided for in this section, 15
per centum ad valorem: Provided, That
no preparations containing alcohol shall
be classified for duty under this para-
graph.
SUGGESTED RECLASSIFICA-
TION.
Par. . Blackings, powders, and
creams, (1) for cleaning or polishing, not
specially provided for in this section,
vided, That no preparations containing
alcohol shall be classified for duty under
this paragraph.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The language of paragraph 11 is simplified without altering the
Scope or meaning of the provision.
PARAGRAPH 12.
ACT OF 1909.
8. Bleaching powder, or chloride of
lime, one-fifth of 1 cent per pound.
ACT OF 1913.
12. Bleaching powder, or chloride of
lime, one-tenth cent per pound.
STUGGE STED RECILASSIFICA-
TION.
Par. . Bleaching powder or chlor-
inated lime (1), . . . . . . . . . . . . . . . . . . . . . . . .
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) “Chloride of lime” is an incorrect designation for bleaching
powder, and often confuses it with calcium chloride.
“Chlorinated
lime” is used in the United States Pharmacopoeia.
20 scEIEDULE A–CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 13.
ACT OF 1909. . SUGGESTED RECILASSIFICA-
* - TION. -
Not specially provided for. Par, . Caffeine (1), . . . . . . . . . . . .
ACT OF 1913. • .
13. Caffein, $1 per pound; compounds - - - - - - - - - - - - - - - - - - ; compounds of caf-
of caffein, 25 per centum ad valorem;
impure tea, tea Waste, tea siftings or feine, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;
sweepings, for manufacturing purposes
in bond, pursuant to the provisions of . - © At 2 º'
the Act of May sixteenth, nineteen hun- impure tea, tea waste, tea siftings or
dred and eight, 1 cent per pound. - -
Sweepings, for manufacturing purposes
J f
in bond, pursuant to the provisions of
the Act of May sixteenth, nineteen hun-
dred and eight, and the Act of May thirty-
first, nineteen hundred and twenty, . . . .
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The final “e” in caffeine is in keeping with the preferred
spelling. -
PARAGRAPH 14.
ACT OF 1909. - SUGGESTED RECLASSIFICA-
TION.
* * * •ocº i-
65. Calomel, corrosive subli Par. . Calomel, corrosive Subli-
mate, and other mercurial medicinal
preparations, 35 per centum ad valo- &
rem; * *. - mate, and other mercurial preparations,
ACT OF 1913.
14. Calomel, corrosive Sublimate, and $ -
other mercurial preparations, 15 per Par. . Chemical compounds, Salts,
centum ad valorem. -
and preparations of bismuth (1), . . . . . . .
tº es e º me se e º 'º me e s = e s is ºn a e s tº e s sº sº e ºs º ºs sº
* . . . [. ; : ; ; ; ; ; ;
* . . . ;". .
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Salts and other compounds and mixtures, of which bismuth
constitutes the element of chief value, are now provided for in para-
graph 65 at 10 per cent ad valorem. As pointed out under paragraph
65, bismuth is not a rare metal. Bismuth salts are used primarily in
medicinals and have therefore been transferred to a separate para-
graph, following the º which provides for mercurial prepa-
rations, also used primarily for medicinal purposes
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 21
PARAGRAPH 15.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION. -
13. Chalk, * * * precipitated nat- © a de &
urally or artificially, or otherwise pre- |Par. . Chalk or whiting or Paris
pared, whether in the form of cubes,
blocks, sticks, or disks, or otherwise, in-
cluding tailors', billiard, red, * * *
1 cent per pound; manufactures of chalk
not specially provided for in this section,
25 per centum ad valorem. tated, -------------------------------::
white (1): Dry, ground, bolted, or precipi-
ACT OF 1913. -
- ground in oil (putty), or put up in the form
15. Chalk, precipitated, suitable for -
medicinal or toilet purposes; chalk put . *
up in the form of cubes, blocks, sticks, or of cubes, blocks, sticks, or disks, or other-
disks, or otherwise, including tailors’, bil- -
liard, red, and other manufactures of º e & e * * * *
chalk not specially provided for in this wise, including tailors', billiard, red,
section, 25 per centum ad valorem. -
and manufactures of chalk not specially
provided for in this Section, . . . . . . per
| centum ad valorem (1).
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Paragraph 15 should be considered in connection with
paragraph 60, which provides for “Whiting and Paris white, dry,
and chalk, ground or bolted, one-tenth cent per pound; whiting and
Paris white, ground in oil, or putty, 15 per centum ad Valorem.”
Ground chdiº, whiting, and Paris white are merely grades of the same
material—natural chalk, washed, ground, and sometimes bolted.
The quality and price are quite variable and dependent on the
purity, color, fineness, and freedom from grit.
Precipitated chalk is an artificially prepared product made by chemi-
cal means. It can be secured free from grit and in a finely divided
condition more easily and perfectly than the natural chalk, and it is
therefore preferred for toilet and medicinal purposes. -
In the act of 1909 ground chalk and precipitated chalk were put
together in paragraph 13 and made dutiable at 1 cent per pound,
whereas whiting and Paris white were dutiable at one-fourth cent
per pound under paragraph 54. The act of 1913 recognized the
essential identity of ground chalk and whiting by placing them to-
gether in paragraph 60 and dutiable at one-tenth cent per pound,
but left “precipitated chalk, suitable for medicinal or toilet purposes,”
in paragraph 15, with duty at 25 per cent ad valorem. Although it
is possible to form a judgment of quality, and therefore price, based
upon the fineness, color, and purity, there is no method to determine
with certainty the method of manufacture from the examination of
the samples. It is therefore suggested that all varieties of chalk,
whiting or Paris white, ground, $oited, and precipitated, be placed
together in the same paragraph at the same rate of duty. The best
commerical grades are worth more than five times as much as the
poorest, and therefore an ad valorem rate would have advantages over
a specific rate. :
22
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 16.
ACT OF 1909.
2. Alcoholic compounds, including all
articles consisting of vegetable, animal,
or mineral objects immersed or placed in,
or saturated with, alcohol, not specially
provided for in this section, 60 cents per
pound and 25 per centum ad valorem.
- . * * * Chemical compounds, mix-
tures and salts containing alcohol or in
the preparation of which alcohol is used,
and not specially provided for in this
section, 55 cents per pound, but in no
case shall any of the foregoing pay less
than 25 per centum ad valorem.
65. Medicinal preparations contain-
ing alcohol or in the preparation of which
alcohol is used, not specially provided
for in this section, 55 cents per pound, but
in no case shall the same pay less than 25
per centum ad valorem; * * *
ACT OF 1913.
16. Chemical and medicinal com-
pounds and preparations, including mix-
tures and Salts, distilled oils, essential
oils, expressed oils, rendered oils, greases,
ethers, flavoring and other extracts and
fruit essences, all the foregoing and their
combinations when containing alcohol,
and all articles consisting of vegetable or
mineral objects immersed or placed in,
or Saturated with, alcohol, except per-
fumery and Spirit varnishes, and all alco-
holic compounds not specially provided
for in this section, if containing 20 per
centum of alcohol or less, 10 cents per
pound and 20 per centum ad valorem;
containing more than 20 per centum and
not more than 50 per centum of alcohol,
20 cents per pound and 20 per centum ad
valorem; containing more than 50 per
centum of alcohol, 40 cents per pound and
20 per centum ad valorem. -
SUGGESTED RECLASSIFICA-
TION.
Pal'. . Chemical elements and
chemical and medicinal compounds,
preparations, (1) mixtures, and Salts,
distilled and essential oils, (2) ex-
pressed and extracted oils, (3) animal
oils and greases, (4) ethers and esters,
(5) flavoring and other extracts, and
natural or synthetic fruit flavors, fruit
esters, oils and essences, (6) all the fore-
going and their combinations when con-
aining alcohol, and all articles consisting
of vegetable or mineral objects immersed
or placed in, or Saturated with, alcohol,
except perfumery and spirit varnishes,
and an alcoholic compounds not specially
provided for in this section, if containing
20 per centum of alcohol or less,
cents per pound (7) and . . . . . per Cent-
um ad valorem; containing more than
20 per centum and not more than 50 per
centum of alcohol, CentS per
pound and per centum ad val-
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 23
orem; containing more than 50 per cent-
um of alcohol, . . . . . . cents per pound
and - - - - - - per centum ad valorem.
REASONS FOR SUGGESTED RECIASSIFICATION.
The phraseology of this paragraph has been slightly modified to
correspond to the language suggested in other paragraphs for these
articles when not containing alcohol.
(1) The word “including” is omitted from the suggested para-
graph, and the first clause is made to correspond to the provision in
paragraph 5.
(2) Distilled and essential oils are combined in accordance with
º provision in paragraph 46 for these articles when not containing
alcohol. -
(3) As noted in the discussion under paragraph 45, not all of the
vegetable oils are expressed oils, since many are obtained by expres-
sion or extraction or by expression followed by extraction of the cake
to recover an additional quantity of oil. It is therefore suggested
that the phrase “expressed and extracted oils” be used.
(4) Likewise there are many animal oils and greases which are
not obtained by rendering. The phrase “animal oils and greases” is
believed to be a more accurate description of this class of articles.
(5) This change has been made to correspond to the provision in
paragraph 29 for ethers and esters.
(6) The phraseology for flavoring extracts and related flavors has
been modified in order to correspond to the separate provision fol-
lowing paragraph 49 for these articles when imported without alcohol.
(7) The compensatory rates of duty imposed in this paragraph be-
cause of the alcoholic content are not proportionate to the increased
taxes levied on distilled spirits by the war revenue acts of 1917 and
1918.
PARAGRAPH 17.
ACT OF 1909. SUGGE STED RECLASSIFICA–
.* TION.
65. Medicinal preparations * * *: -
Provided, That chemicals, drugs, medici- Par. . Chemicals, drugs, medici-
nal and similar substances, whether duti- *
able or free, imported in capsules, pills,
tablets, lozenges, troches, or similar
forms, and intended for medicinal pur-
poses, shall be dutiable at not less than dutiable or free, when imported in cap-
the rate imposed by this section on me-
dicinal preparations.
ACT OF 1913.
nal and similar substances, whether
Sules, pills, tablets, lozenges, troches,
ampoules, jubes, or similar forms, shall
17. Chemical and medicinal com-
pounds, combinations and all similar
articles dutiable under this section, ex-
cept soap, whether specially provided for
or not, put up in individual packages of centum ad valorem.
two and one-half pounds or less gross
weight (except samples without com-
mercial value) shall be dutiable at a rate
be dutiable at not less than . . . . . . per
24 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
not less than 20 per centum ad valorem:
Provided. That chemicals, drugs. medici-
nal and similar substances, whether duti-
able or free, imported in capsules, pills,
tablets, lozenges, troches, anpoules,
jubes, or similar forms, shall be dutiable
at not less than 25 per centum ad valorem.
REASONS FOR SUGGESTED RECLASSIFICATION.
The first clause of paragraph 17, which provides for chemical and
medicinal compounds, etc., when put up in individual packages of 2%
Fº or less gross weight, was new legislation in 1913. It has
been especially difficult to administer and its interpretation has re-
peatedly been before the Board of General Appraisers and the Court
of Customs Appeals. It is believed that the administration of the
chemical schedule will be facilitated and considerable litigation
avoided by omitting the first part of the present paragraph 17, and,
as in tariff acts prior to 1913, limiting the paragraph to chemical and
medicinal compounds, etc., when put up in capsules, pills, and
ampoules, for individual use.
The intent of Congress in framing this provision was presumably to
provide a slightly higher rate of duty for articles which have been put
up into packages suitable for retail distribution. In its interpretation
by the Treasury Department and the Court of Customs Appeals, this
provision has been restricted to dutiable articles because of the
hrase “dutiable under this section.” “All similar articles” has been
eld to refer to a compound, combination, mixture, or preparation
composed of more than one substance or material. The expression
“medicinal compounds, combinations, and all similar articles” has
been interpreted to mean (1) strictly medicinal compounds and prepa-
rations, and (2) compounds and preparations similar thereto in that,
while not strictly medicinal because possessing properties which
adapt them to other uses, are nevertheless susceptible of medicinal
use and in the form and condition imported are specially designed
therefor and are so chiefly used (Monticelli v. United States, 8 Ct.
Cust. Appls., 21, of 1917). -
Under this construction such articles as Olive oil, oil of lemon, oil of
orange, peanut oil, fish oils and rendered, expressed, distilled, and
essential oils, which are not mixed or compounded with other oils,
earths, chalk, crude drugs which are natural and compounded, and
similar articles, are excluded because they are not similar to “chemical
and medicinal preparations or combinations.” (T. D. 34184, of 1914,
modifying T. D. 34035, of 1914.) The intent seems to have been to
cover such articles as Essence d' Orient (Abstract 40809), ink (Ab-
stracts 37926 and 39005), polishes (Abstract 39372), adhesive plasters
(Abstract 40732), although the decisions hold to the contrary. It
should be noted, however, that certain infants’ and invalids’ foods
(Britt v. United States, 7 Ct. Cust. Apple. 118, of 1916; Abstracts
40738 and 40739 of 1917, which technically are neither medicinal
nor chemical preparations, have been included within the scope of
this provision.
Practically all imports of salts and compounds of bismuth, gold,
platinum, and silver would be classified under this provision at double
the rate of duty imposed in paragraph 65 (in which they are specifi-
cally provided for), since these materials are of considerable value and
are nearly always imported in packages weighing less than 2% pounds.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 25
In the case of most alkaloids 2% pounds is a relatively large quantity
which, perhaps, is a four months’ supply for the trade supplied by
importers who sell only a few grains at a time. The provision, there-
fore, has the effect of including practically all alkaloids at a higher
rate of duty than is imposed in paragraph 5. It was suggested in the
tariff hearings that chemical or medicinal compounds when put up in
packages which, because of their character or the quantity of the
contents, are not suitable for general distribution, be exempted from
the provisions of this paragraph. (Hearings on General Tariff Revi-
sion, Part I, p. 40, 1921.) Such a distinction would obviously be
difficult of administration and would invite litigation. It is therefore
believed advisable to discontinue this provision in paragraph 17,
since most of the articles which have º, included are dutiable
at ad valorem rates and the additional cost of packing is presumably
represented by increased value.
PARAGRAPH 18.
ACT OF 1909. SUGGE STED RECLASSIFICA-
- TION.
TNot specially provided for.
ACT OF 1913.
Par. . Chloral hydrate, terpin
18. Chloral hydrate, Salol, phenol- hydrate, thymol, urea, and glycero-
phthalein, urea, terpin hydrate, acetani-
lid, acetphenetidin, antipyrine, glycero-
phosphoric acid and Salts and compounds phosphoric acid and salts and compounds
thereof, acetyl salicylic acid, aspirin,
guiacol carbonate, and thymol, 25 per
centum ad valorem. of glycerophosphoric acid, (1) . . . . . . . . . .
REASONS FOR SUGGESTED RECLASSIFICATION.
Salol, phenolphthalein, acetanilid, acetphenetidin, antipyrine, and
acetyl salicylic acid or aspirin, mentioned in paragraph 18, have
been omitted, as they are all of coal-tar origin. The intent of the
act of 1916 was to include these products. Their specific mention,
however, in the act of 1913 was interpreted as more definite than the
provision in the act of 1916, and, consequently, they have been
dutiable under paragraph 18 at 25 per cent ad valorem. These
sºprºduce are mentioned specifically in H. R. 8078 (66th Cong.,
2d Sess.).
Since the recommendations of the Tariff Commission in regard to
amending the act of September 8, 1916, published in Dyes and
Other Coal-Tar Chemicals, a process has been developed for the
manufacture of a guaiacol carbonate from coal tar. Confidential in-
formation in the files of the Commission indicates that approximately
One-half of the domestic consumption of guaiacol and guaiacol car-
bonate is made from coal tar. Accordingly, guaiacol carbonate has
been omitted from this paragraph, and it is suggested that guaiacol
and its derivatives be provided for along with other coal-tar chemicals.
If it is desired to retain special mention of iodoform, now in para-
graph 38, it is recommended that this article be included in paragraph
18. The imports of the product are small. In case iodoform shall
26 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
not be specially mentioned, it would be dutiable under the basket.
clause of paragraph 5. - -
(1). It is believed that the Congress intended that this provision
should apply solely to glycerophosphoric acid and it has therefore
been suggested that “glycerophosphoric acid” be substituted for
the word “thereof.”
PARAGRAPH 19.
ACT OF 1909.
14. Chloroform, 10 cents per pound.
ACT OF 1913.
19. Chloroform, 2 cents per pound;
carbon tetrachloride, 1 cent per pound.
SUGGESTED RECLASSIFICA-
TION.
Par. Acetylenetetrachloride (1),
carbon.
* - - - - - - - - e = * * * * - - - - - - - - - * * *
* - - - - - - - - e s a s = - - - - - - - - - * * * *
REASONS FOR SUGGESTED RECLASSIFICATION.
(1). Acetylenetetrachloride and trichloroethylene are important
chlorine products which are used for solvent º similar to:
carbon tetrachloride and chloroform, now provided
19.
to warrant specific mention.
or in paragraph
These products have become of sufficient industrial importance
PARAGRAPHS 20, 21, 22, AND 23.
ACT OF 1909.
15. Coal-tar dyes or colors, not spe-
cially provided for in this section, 30 per
centum ad valorem; all other products or
preparations of coal tar, not colors or
dyes and not medicinal, not specially
provided for in this section, 20 per
centum ad valorem.
491. Aniline salts. (Free.)
536. * * * products of coaltar known
as * * * naphthalin + “ ” phenol
* * * toluidine, xylidin, cumidin,
binitrotoluol, binitrobenzol, benzidin,
tolidin, dianisidin, “ ” * naphtyla-
min, diphenylamin, benzaldehyde,
benzyl chloride, * * * nitro-benzol,
and nitro-toluol, naphtylaminSulfoacids
and their sodium or potassium Salts,
naphtolsulfoacids and their Sodium or
potassium salts, amidonaphtolsulfoacids
and their sodium or potassium Salts,
amidosalicylic acid, binitrochlorbenzol,
diamidostilbendisulfoacid, metanilic
acid, paranitranilin, dimethylanilin; all
SUGGESTED RECLASSIFICA.--
TION.
Par. . (1) Avetanilide not suit-
able for medicinal use, alpha-naphthol,
aminobenzoic acid, aminonaphthol, a Lui-
nophenetole, aminophenol, a minoSalicylic:
acid, aminoanthraquinone, aniline oil,
aniline salt, anthraquinone, arsanilic
acid, benzaldehyde not suitable for
medicinal use, benzal chloride, benzan-
throne, benzidine, benzidine sulfate,
benzoic acid riot suitable for medicinal.
use, benzoquinone, benzoyl chloride, ben-
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
27
the foregoing not medicinal and not
colors or dyes. (Free.) -
639. Oils: * * * Aniline. * * *
(Free.)
ACT OF 1913 AS MODIFIED BY
THE ACT OF 1916.
SEC. 500.—Group II. Amidonaphthol,
amidophenol, amidosalicylic acid, anilin
oil, anilin Salts, anthracene having a
purity of 25 per centum or more, anthra-
quinone, benzoic acid, benzaldehyde,
benzylchloride, benzidin, binitrobenzol,
binitrochlorobenzol, binitronaphthalene,
binitrotoluol, carbazol having a purity of
25 per centum or more, chlorophthalic
acid, cumidin, dimethylanilin, dianisi-
din, dioxynaphthalene, diphenylamin,
metacresol having a purity of 90 per
centum or more, methylanthraquinone,
metanilic acid, naphthalene having a so-
lidifying point of seventy-nine degrees
centigrade or above, naphthylamin, naph-
thol, naphthylenediamin, nitrobenzol, ni-
trotoluol, nitronaphthalene, nitranilin, ni-
trophenylenediamin, nitrotoluylenedia-
min, Orthocresol having a purity of 90 per
centum or more, paracresol having a purity
of 90 per centum or more, phenol, phthalic
acid, phthalic anhydride, phenylenedia-
min, phenylnaphthylamin, resorcin,
Salicylic acid, Sulphanilic acid, toluidin,
tolidin, toluylenediamin, xylidin, or any
Sulphoacid or Sulphoacid salt of any of
the foregoing, all similar products ob-
tained, derived, or manufactured in
whole or in part from the products pro-
vided for in Group I, and all distillates
which on being subjected to distillation
yield in the portion distilling below two
hundred degrees centigrade a quantity of
tar acids equal to or more than 5 per cen-
tum of the original distillate, all the forego-
ingriot colors, dyes, or stains, photographic
chemicals, medicinals, flavors, or ex-
plosives, and not otherwise provided for
in this title, and provided for in the
paragraphs of the act of October 3, 1913,
which are hereinafter specifically re-
pealed by section 502, 15 per centum ad
valorem.
zyl chloride, benzylethylaniline, beta-
naphthol not suitable for medicinal use,
bromobenzene, chlorobenzene, chloro-
phthalic acid, cinnamic acid, cumidine,
dellydrothiotoluidine, diaminostilbene,
dianisidine, dichlorophthalic acid, di-
methylamiline, dimethylaminophenol, di-
methylphenylbenzylammonium hydrox-
ide, dimethylphenylenedianline, dinitro-
benzene, dinitrochlorobenzene, dinitro-
naphthalene, dinitrophenol, dinitrotolu-
ene, dihydroxynaphthalene, diphenyl-
amine, hydroxyphenylarsinic acid, met-
anilic acid, methylanthraquinone, naph-
thylamine, naphthylenediamine, nitro-
aniline, nitroanthraquinone, nitrobenzal-
dehyde, nitrobenzene, nitronaphthalene,
nitrophenol, nitrophenylenediamine, ni-
trosodimethylaniline, nitrotoluene, nitro-
toluylenediamine, phenol, phenylenedia-
mine, phenylhydrazine, phenylnaphthyl-
amine, phenylglycine, phenylglycine-
ortho-Uarboxylic acid, phthalic acid,
phthalic anhydride, phthalimide, resor-
cinol not suitable for medicinal use,
salicylic acid and its salts not suitable for
medicinal use, sulfanilic acid, thiocar-
banilide, thiosalicylic acid, tetrachloro-
phthalic acid, tetramethyldiaminobenzo-
phenome, tetramethyldiaminodiphenyl-
methane, toluene sulfochloride, toluene
sulfonamide, tribromophenol, toluidine,
tolidine, toluylenediamine, xylidine, or
any sulfoacid or sulfoacid Salt of any of
28
SCHEDULE A-CHEMICALS, OILS, AND PAINTS.
the foregoing products provided for in
this paragraph, or of any of the products
provided for in paragraph . . . . . . (2); all
other products by whatever name known
which are employed in the manufacture
of any of the foregoing products provided
for in this paragraph, or of any of the (3)
products provided for in paragraph . . . . . .
(2), and which are obtained, derived, or
manufactured in whole or in part from
any of the foregoing products provided
for in this paragraph, or from any of the
products provided for in paragraph . . . . . .
(2); anthracene having a purity of 30 per
centum or more, carbazole having a
purity of 65 per centum or more, meta-
cresol having a purity of 90 per centum
or more, naphthalene having a solidifying
point of seventy-nine degrees centigrade
or above, ortho-cresol having a purity of
90 per centum or more, para-cresol having
a purity of 90 per centum or more; all
distillates of coal tar, blast-furnace tar,
oil-gas tar, and water-gas tar which on
being subjected to distillation yield in
the portion distilling below one hundred
and ninety degrees centigrade a quantity
of tar acids equal to or more than 5 per
centum of the original distillate; all mix-
tures, including Solutions, consisting in
whole or in part of any of the foregoing
products provided for in this paragraph,
except sheep dip and medicinal Soaps;
all the foregoing products provided for in
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
29
Group III. All colors, dyes, or stains,
whether soluble or not in water, color
acids, color bases, color lakes, photo-
graphic chemicals, medicinals, flavors,
synthetic phenolic resin, or explosives,
not otherwise specially provided for in
this title, when obtained, derived, or
manufactured in whole or in part from
any of the products provided for in
Groups I and II, natural alizarin and
indigo, and colors, dyºs, or color lakes
obtained, derived, or ma tiactured there-
from, 30 per centum ad valorem. -
SEC. 501. That on and after the day
following the passage of this act, in addi-
tion to the duties provided in Section 500,
there shall be levied, collected, and paid
upon all articles contained in Group II
a special duty of 2% cents per pound, and
upon all articles contained in Group III
(except natural and synthetic alizarin,
and dyes obtained from alizarin, anthra-
cene, and carbazol; natural and Synthetic
indigo and all indigoids, whether or not
obtained from indigo; and medicinals
and flavors), a special duty of 5 cents per
pound.
During the period of five years begin-
ning five years after the passage of this
act such special duties shall be annually
reduced by 20 per centum of the rate im-
posed by this section, so that at the end
of such period such special duties shall
no longer be assessed, levied, or collected;
but if, at the expiration of five years from
this paragraph, not colors, dyes, or stains,
color acids, color bases, color lakes,
leuco-acids, leuco-bases, indoxyl, in-
doxyl compounds, ink powders, photo-
graphic chemicals, medicinals, synthetic
aromatic or odoriferous chemicals (4),
synthetic resinlike products, synthetic
tanning materials, or explosives, and
not specially provided for in paragraph
* * * * * * per centum ad
valorem and . . . . . . cents per pound (5): ,
Provided, That all products, whether or
not derived from coal tar, having identi-
cal chemical composition with any of
the products in this paragraph shall be
dutiable under this paragraph.
Par. All colors, dyes, or stains,
whether soluble or not in water, color
acids, color bases, color lakes, leuco-acids
and leuco-bases whether colorless or not,
indoxyl and indoxyl compounds; ink
powders; photographic chemicals; acet-
anilide suitable for medicinal use, acet-
phenetidine, acetylsalicylic acid, anti-
pyrime, benzaldehyde suitable for medic-
inal use, benzoic acid suitable for medic-
inal use, beta-naphthol suitable for medic-
inal use, guaiacol and its derivatives (6),
phenolphthalein, resorcinol suitable for
medicinal use, salicylic acid and its salts
suitable for medicinal use, salol, and other
medicinals; sodium benzoate; saccharin;
artificial musk, benzyl acetate, benzyl
benzoate,
coumarin, diphenyloxide,
30
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
, ºr
.”
the date of the passage of this act, the
President finds that there is not being
manufactured or produced within the
TJnited States as much as 60 per centum
in value of the domestic consumption of
the articles mentioned in Groups II and
III of section 500, he shall by proclama-
tion so declare, whereupon the Special
duties imposed by this section on such
articles shall no longer be assessed, levied,
or collected.
SEc. 502. That paragraphs 20, 21, 22,
and 23 and the words “salicylic acid” in
paragraph 1 of Schedule A of section l of
an act entitled ‘‘An act to reduce tariff
duties and to provide revenue for the
Government, and for other purposes,”
approved October 3, 1913, and paragraphs
394, 452, and 514, and the words “car-
bolic” and “phthalic,” in paragraph 387
of the “free list” of section 1 of said act,
and so much of Said act or any existing
law or parts of law as may be inconsistent
with this title, are hereby repealed.
methyl anthranilate, methyl salicylate,
phenylacetaldehyde, phenylethyl alco-
hol, and other synthetic, odoriferous or
aromatic chemicals, including flavors, all
of these products not marketable as per-
fumery, cosmetics, or toilet preparations,
and not mixed and not compounded,
and not containing alcohol (7); synthetic
phenolic resin and all resinlike products
prepared from phenol, cresol, phthalic an-
hydride, coumarone, indene, or from any
other article or material provided for in par-
agraph . . . . or . . . . , all of these products
whether in a solid, semisolid, or liquid
condition; synthetic tanning materials.
picric acid, trinitrotoluene, and other
explosives except Smokeless powders; all
of the foregoing products provided for in
this paragraph, when obtained, derived,
or manufactured in whole or in part from
any of the products provided for in para-
; natural alizarin
and natural indigo, and colors, dyes,
stains, color acids, color bases, color lakes,
leuco-acids, leuco-bases, indoxyl, and in-
doxyl compounds, obtained, derived, or
manufactured in whole or in part from
natural alizarin or natural indigo; natural
methyl salicylate or oil of wintergreen or
oil of Sweet birch; natural coumarin;
natural guaiacol and its derivatives (8);
and all mixtures, including Solutions,
consisting in whole or in part of any of the
articles or materials provided for in this
SCH EDULE A–GHT EMICALS, OILS, AND PAINTS. 31
paragraph, excepting mixtures of syn-
thetic odoriferous or aromatic chemi-
cals, . . . . . . per centum ad valorem and
ºs e º sº sº sº sº e cents per pound (5): (9) Pro-
vided, That the specific duties of . . . . . .
cents per pound herein provided for on
colors, dyes, or stains, whether soluble or
not in water, color acids, color bases,
color lakes leuco-acids, leuco-bases, in-
doxyl, and indoxyl compounds, shall be
based on standards of strength which shall
be established by the Secretary of the
Treasury, and that upon all importations
of such articles which exceed such stand-
ards of strength the specific duty of . . . . . .
cents per pound shall be computed on the
weight which the article would have if it
were diluted to the standard strength, but
| in no case shall any such articles of what-
ever strength pay a specific duty of less
than . . . . . . cents per pound: Provided
further, That beginning six months after
the date of passage of this act no package
containing any such color, dye, stain,
color acid, color base, color lake, leuco-
acid, leuco-base, indoxyl, or indoxyl com-
pound shall be admitted to Gntry into the
United States unless such package and
the invoice shall bear a plain, conspicuous,
and truly descriptive statement of the
identity and percentage, exclusive of di-
luents, of such color, dye, stain, color acid,
color base, color lake, leuco-acid, leuco-
base, indoxyl, or indoxyl compound con-
32 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
tained therein: And provided further, That.
on and after the passage of this act no.
package containing any such article shall
be admitted to entry into the United
States if it or the invoice bears any state-
ment, design, or device regarding such
article or the ingredients or substances.
contained therein which is false, fraudu-
lent, or misleading in any particular; in
the enforcement of the foregoing provisos.
the Secretary of the Treasury shall adopt a
standard of strength for each dye or other
article which shall conform as nearly as
practicable to the commercial strength in.
ordinary use in the United States prior to:
July 1, 1914: (10) And provided further,
That any article or product which may
come within the terms of other paragraphs
of this act as well as within the terms of
paragraphs . . . . . . . , - - - - - - - , Ol' - - - - - - 3.
shall be assessed for duty or exempted
from duty as the case may be under
paragraph . . . . . . y - - - - - - ; OT - - - - - - -
REASONs FOR SUGGESTED RECLASSIFICATION.
On September 12, 1918, the Tariff Commission submitted a de-
tailed report (“Dyes and Other Coal-Tar Chemicals”) to the Com-
mittee on Ways and Means of the House of Representatives, sug-
gesting 45 amendments to Title V of the revenue act of September
8, 1916, which were designed to give effect more completely to the
evident intent of Congress in passing the act of 1916. This act.
repealed paragraphs, 20, 21, 22, and 23, and, the word “salicylic’”
in paragraph 1 of Schedule A of Section I and paragraphs 394, 452,
514, and the words “carbolic” and “phthalic” in paragraph 387 of
the free list of the act of October 3, 1913. The report of the Tariff
Commission contained a detailed explanation of each of the Sug-
gested amendments. All of these amendments were accepted b
the House of Representatives as the basis of H. R. 8078, whic
passed the House of Representatives on September 26, 1919.
Sections 500 and 501 of H. R. 8078 are herein suggested as the
basis of three paragraphs to replace 20, 21, 22, and 23 of Schedule.
A, and paragraph 452 of the free list of the tariff act of October 3,
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 33
1913. Any parts of paragraphs of the act of 1913, which were not
specifically repealed by the act of 1916 have been omitted in this
reclassification. The spelling of certain chemical terms used in
H. R. 8078 has been changed to correspond to the nomenclature
now recognized and º bv the trade.
(1) Group II and Group III of the dutiable list of section 500
(H. R. 8078) are suggested to replace paragraphs 20 to 23, inclusive,
of the act of October 3, 1913.
(2) The word “group” has been omitted in every case where it
appears; the word “paragraph - - - - - - ?’ has been substituted.
This modification obviously follows the change to paragraphs.
(3) The words “foregoing, or of any of the ” have been inserted
after the word “the ” so that the language then reads “all of the
roducts by whatever name known which are employed in the manu-
acture of any of the foregoing or of any of the products provided
for in paragraph - - - - - -.” This language is necessary because of
striking out of the words “Group II” or “III” and inserting “Para-
raph - - - - - -.”
9. § The word “flavors”, has been replaced by the following
language “synthetic, aromatic, or odoriferous chemicals.” This
language is suggested in conformity with the later change which
follows the wording of the provisions in the paragraph on finished
products which was made to include perfume chemicals of coal-tar
origin. These products should therefore be excluded from the pro-
visions of this paragraph. -
(5) Provision has been made for a compound duty in order to
conform with a later change. (See No. 9.)
Provided, That all articles, whether or not derived from coal tar, having identical
chemical composition with any of the articles in this paragraph shall be dutiable
linder this paragraph.
This provision has been added in order that products having
identical chemical composition with coal-tar products provided for
in this paragraph, but which are obtained, manufactured, or derived
from sources other than coal tar, may be dutiable under this para-
graph. For example, the manufacture of several products provided
for in this paragraph has been undertaken using materials obtained
from pyrogenic treatment of crude petroleum oils. These materials
obtained by this process are then combined synthetically by further
chemical processes, forming chemical products which may be iden-
tical in , chemical composition with the same product obtained
from coal tar.
(6) The words “guaiacol and its derivatives” have been inserted.
Guaiacol carbonate is specifically provided for in paragraph 18, act
of October 3, 1913, at a duty of 25 per cent ad valorem, which was
presumably intended to provide for guaiacol carbonate obtained or
manufactured from bº. Creosote. Since the recommenda-
tions of the Tariff Commission in regard to the act of September
8, 1916, were submitted, a process has been developed in this country
for the manufacture of guaiacol and its derivatives from coal-tar
products. Confidential information in the files of the Commission
indicates that at present over one-half of the domestic consumption
of guaiacol and its derivatives are made from coal-tar products.
40650–21—3
34 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
Therefore it has been suggested that guaiacol and its derivatives
made from coal tar be provided for in this paragraph.
(7) The words “methylsalicylate, coumarin, and other flavors”
have been omitted, and it is suggested that methylsalicylate and
coumarin be included in the following provision: - -
Artificial musk, benzyl acetate, benzyl benzoate, coumarin, diphenyloxide, methyl
anthranilate, methyl salicylate, phenylacetaldehyde, phenyl ethyl alcohol, and other
synthetic, odoriferous or aromatic chemicals, including flavors, all of these products
not marketable as perfumery, cosmetics, or toilet preparations, not mixed, and not
compounded, and not containing alcohol.
This provision includes all coal-tar chemicals used as flavors or as
erfumes. The perfume materials of coal-tar origin are closely
allied to coal-tar drugs and flavors; for example, methylsalicylate
may be used as a drug, as a flavor, or as a perfume material. Benzyl
benzoate and benzyl acetate, in addition to their use in drugs and
perfumes, were also found useful as a solvent for varnish used on
airplane wings. Commercial perfumery is made by mixing or com-
pounding various natural odoriferous substances, such as floral prod-
ucts, balsams, animal products (musk, civet, etc.), and synthetic
aromatic chemicals with each other, and a suitable solvent (usually
alcohol) and a fixative. Other vehicles, such as talcum powder and
cold cream, are also extensively used. Of the synthetic aromatic
chemicals used, many are of coal-tar origin; a few of the more im-
portant include benzyl acetate, benzyl benzoate, diphenyloxide, methyl
anthranilate, phenylacetaldehyde and phenylethyl alcohol. These
perfume chemicals are as a rule complex substances, difficult and
expensive to make. They must be of the highest purity and the
quantities consumed annually are Small. For these reasons they are
very expensive. To make a distinction between perfume chemicals
and flavors is difficult, if not impossible.
In a decision (United States v. Lehn, 9 Ct. Cust. Apple. 309, of
1919) on coumarin, a coal-tar product, it was shown that although
it was used as a material in the manufacture of flavoring extracts,
it was not classable under the provision for flavors in Group III,
section 500, of the act of September 8, 1916, and was therefore held
dutiable under paragraph 49, act of 1913, as falling within the pro-
vision “all natural or synthetic odoriferous or aromatic substances,
preparations, and mixtures used in the manufacture of, but not
marketable as, perfumes or cosmetics.” . The provision suggested
above, including coumarin and methylsalicylate, and omitting the
word “flavors” will eliminate future doubt as to the proper classi:
fications of such articles.
(8) The phrase “natural guaiacol and its derivatives” has been
added as guaiacol and its derivatives of coal-tar origin have been pro-
vided for. It is difficult to distinguish the natural product from
the coal-tar product and is a case similar to methyl salicylate and
coumarin.
(9) The provisions for the special duties in section 501 for inter-
mediates and finished products are added to the ad Valorem rate in
the respective paragraphs for these products, making a compound
duty in each case, in place of a straight ad Valorem rate. In the
proviso clause the words “special duties” have been changed to
“specific duties of - - - - - - cents per pound” in order to conform with
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 35
the previous changes. This clause would then read, “provided that
the specific duties of -- - - - - cents per pound herein provided for
on colors, dyes, or stains “ ” *.”
(10) This provision, occurring in H. R. 8078, has been retained
with modifications, so that commodities derived from coal tar and
coming within the language of other paragraphs may be included
within these paragraphs. A repealing clause could not be made
without qualification, as some paragraphs cover articles not derived
from coal tar as well as coal-tar products. This provision, it is
believed, will avoid a conflict arising from cases where articles might
fall within the language of other paragraphs.
PARAGRAPH 24.
ACT OF 1909. SUGGESTED RECLASSIFICA-
- TION.
16. Cobalt, oxide of, 25 cents per
pound. Par. . Cobalt. Oxide, . . . . . . . . . .
ACT OF 1913.
--------------------- ; Sulphate, (1) . . . .
24. Cobalt, oxide of, 10 cents per sulphate, (1)
pound.
as ºs s = sº as a s = * * * * * * * * * * * * * * * * * ; linoleate,
s sº a m = * * * * * * * * * * * * * * * * * * * * * * * * * ; and all
…~
REASONs FOR SUGGESTED RECLASSIFICATION.
Attention should be called to the fact that cobalt metal, which is
made from cobalt oxide, and which is therefore a more highly manu-
factured product, is free of duty with cobalt ore under paragraph 453,
which reads: “Cobalt, and cobalt ore.” It has been reported (see
Tariff Information Survey) that cobalt oxide has been reduced to
metallic cobalt, entered free of duty and again burned to obtain the
oxide for use in ceramics. Cobalt metal has recently come into
importance as an essential constituent in certain alloys.
1) There are several cobalt salts of importance other than the
oxide, the only one enumerated in the tariff. Imports of cobalt sul-
phate in 1914 were approximately 55,000 pounds, valued at $16,000;
and imports of cobalt linoleate 18,933 pounds, valued at $4,677.
Other salts imported in somewhat lesser quantity include the chloride,
carbonate and acetate. These cobalt compounds under the present
law º, dutiable at 15 per cent ad Valorem as chemical compounds,
Il. S. D. I.
fºr: is suggested that cobalt sulphate and linoleate be mentioned
specifically, followed by a general provision for “all other cobalt
compounds.” -
36
SCEIEDULE A–CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 25.
ACT OF 1909.
17. Collodion and all compounds of
pyroxylin or of other cellulose esters,
whether known as celluloid or by any
other name, 40 cents per pound; if in
blocks, sheets, rods, tubes, or other
forms, not polished, wholly or partly,
and not made up into finished or partly
finished articles, 45 cents per pound; if
polished, wholly or partly, orifin finished
or partly finished articles, except moving-
picture films, of which collodion or any
compound of pyroxylin or of other cellu-
lose esters, by whatever name known,
is the component material of chief
value, 65 cents per pound and 30 per
centum ad valorem.
ACT OF 1913.
25. Collodion and all other liquid
solutions of pyroxylin, or of other cellu-
lose esters, or of cellulose, 15 per centum
ad valorem; compounds of pyroxylin or
of other cellulose esters, whether known as
celluloid or by any other name, if in
blocks, sheets, rods, tubes, or other forms
not polished, wholly or partly, and not
made into finished or partly finished
articles, 25 per centum ad valorem; if
polished, wholly or partly, or if finished
or partly finished articles, of which col-
lodion or any compound of pyroxylin or
other cellulose esters, by whatever name
known, is the component material of
chief value, 40 per centum ad valorem.
SUGGESTED RECLASSIFICA-
TION.
Par. Cellulose esters (1), ......
* * > * * * * * * * * * * * * * * * * * * * * ; collodion and
other liquid Solutions of pyroxylin, of
other cellulose esters, or of cellulose
e cº of pyroxylin,
of other cellulose esters, or of cellulose
(3) by whatever name known, in blocks,
sheets, rods, tubes, or other forms, (4)
and not made into finished or partly
finished articles, - - - - - - - - - - - - - - - - - - - - - -:
made into finished or partly finished
articles, of which any of the foregoing
is the component material of chief value,
Par. . (5) Compounds of casein,
known as galalith, or by any other name,
in blocks, sheets, rods, tubes, or other
forms, not made into finished or partly
finished articles,
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 37
made into finished or partly
finished articles of which any of the
foregoing is the component material of
chief Value, ---------------------------
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Cellulose esters have been mentioned specifically in the sug-
gested reclassification because they are not covered by the present
language. They may be imported as such and made into solutions
such as collodion or into compounds of pyroxylin. The manu-
facture into solutions is comparatively simple when contrasted with
the manufacture of the compounds of pyroxylin, such as celluloid.
(2) Collodion is a liquid solution of pyroxylin in some volatile
solvent, such as alcohol or ether. These liquid solutions of pyroxylin
are made by a different group of manufacturers than those engaged
in the manufacture of pyroxylin plastics, such as celluloid, which are
Fº for in the latter part of paragraph 25. It is suggested that
iquid solutions of pyroxylin along with cellulose esters constitute a
separate paragraph.
(3) The words “of cellulose” have been added, as there are com-
pounds of cellulose similar to those of pyroxylin. -
(4) Compounds of pyroxylin in paragraph 25 are dutiable at differ-
ent rates, depending upon whether or not they are polished. Those
which are polished carry the same rate of duty as manufactured or
finished articles composed in chief value of pyroxylin. The polishing
of rods, sheets, or tubes of pyroxylin is usually carried out in plants
making crude pyroxylin plastics, and constitutes a comparatively
slight advance in the value of the articles. These forms of pyroxy-
lin are usually sold to other manufacturers who work them up into
finished º such as combs, mirror and brush backs, knife
handles, buttons, rims for eyeglasses, toys, and many other articles.
This division has caused some litigation. Sheets, tubes, and rods of
celluloid not subjected to any process designed to polish them, but
polished to some extent in the smoothing or straightening, were held
to fall within this paragraph as not polished wholly or partly.
(United States v. Cohn Co., 6 Ct. Cust. Appls., 426, of 1915.)
In addition to giving sheets a highly polished surface they are
given other finishes to imitate silk, linen, etc. These finishes are put
on by pressing between metal plates at a slightly elevated tempera-
ture. This press polishing amounts to approximately 15 per cent
of the total cost of production. The bulk of pyroxylin plastic sheets
are sold with a finished surface. It is therefore suggested that no
distinction be made between polished and unpolished compounds of
pyroxylin. This will facilitate customs classification.
(5) Compounds of casein, usually sold in commerce as galalith,
Compete to a certain extent with compounds of pyroxylin, such as
celluloid. Galalith is not manufactured in the United States at the
38
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
present time, and supplies are imported. This important class of
lastics at present is not provided for specifically in the tariff act.
t is therefore suggested that a separate
compounds of casein, such as galalith.
paragraph be provided for
PARAGRAPH 26.
ACT OF 1909.
18. Coloring for brandy, wine, beer, or
other liquors, 40 per centum ad valorem.
ACT OF 1913.
26. Coloring for brandy, wine, beer, or
ofher liquors, 40 per centum ad valorem.
SUGGESTED RECILASSIFICA-
TION.
(It is suggested that this paragraph
be omitted. . Its scope is minimized by
the eighteenth amendment to the Con-
stitution and the Enforcement Act.
Such colors fall within paragraph 30,
aCt. º 1913, and the act of September 8,
1916. -
PARAGRAPH 27.
ACT OF 1909.
20. Drugs, such as barks, beans, ber-
ries, * * *, buds, bulbs, bulbous
roots, excrescences, fruits, flowers, dried
fibers, dried insects, grains, gums and
gum resin, herbs, leaves, lichens, mosses,
* * *, roots, stems, * * *, vege-
tables, seeds (aromatic, not garden seeds),
seeds of morbid growth, weeds, * * *;
any of the foregoing which are natural
and uncompounded drugs and not edible,
and not specially provided for in this sec-
tion, but which are advanced in value or
condition by any process or treatment
whatever beyond that essential to the
proper packing of the drugs and the pre-
vention of decay or deterioration pending
manufacture, one-fourth of 1 cent per
pound, and in addition thereto 10 per
centum ad valorem: Provided, That no.
article containing alcohol, or in the prep-
aration of which alcohol is used shall be
classified for duty under this paragraph.
ACT OF 1913.
27. Drugs, such as barks, beans, ber-
ries, buds, bulbs, bulbous roots, excres-
censes, fruits, flowers, dried fibers, dried
insects, grains, gums, herbs, leaves,
lichens, mosses, roots, stems, vege-
tables, Seeds (aromatic, not garden seeds),
Seeds of morbid growth, and weeds; any
of the foregoing which are natural and
uncompounded drugs and not edible,
and not specially provided for in this
Section, but which are advanced in value
or , condition by shredding, grinding,
chipping, crushing, or any other process
or treatment whatever beyond that es-
sential to the proper packing of the drugs
SUGGESTED RECLASSIFICA-
TION.
Par. . Drugs, such as barks,
beans, berries, buds, bulbs, bulbous
roots, excrescences, fruits, flowers, dried
fibers, dried insects, grains, (1) herbs,
leaves, lichens, mosses, roots, stems,
Vegetables, seeds (aromatic, not garden
Seeds), seeds of morbid growth, weeds,
and all other drugs of vegetable or ani-
mal origin (2); any of the foregoing
which are natural and uncompounded
drugs and not edible, and not specially
provided for in this section, but which
are advanced in value or condition by
shredding, grinding, chipping, crushing,
or any other process or treatment what-
ever beyond that essential to the proper
packing of the drugs and the prevention
of decay or deterioration pending man-
ufacture, ---------------------- ~. :
Provided, That the term “drug” wher-
SCHEDULE A–CHEMICALS, OILS, AND PAINTs. 39.
and the prevention of decay or deteriora- ever used in this section shall include
tion pending manufacture, 10 per centum
ad Valorem: Provided, That no article | only those substances having therapeutic
containing alcohol shall be classified for
duty under this paragraph. or medicinal properties and chiefly used
for medicinal purposes (3): And pro-
vided further, That no article containing
alcohol shall be classified for duty under
this paragraph.
Par. . Aconite (4), aloes (5), asa-
fetida, cocculus indicus, ipecac, jalap,
manna, marshmallow or althea root,
leaves or flowers, maté, and pyrethrum
or insect flowers (6), all the foregoing
which are natural and uncompounded,
but which are advanced in value or con-
dition by shredding, grinding, chipping,
crushing, or any other process or treat-
ment whatever beyond that essential to
proper packing and the prevention of
decay or deterioration pending manufac-
Provided, That no article containing
alcohol shall be classified for duty under
this paragraph.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Gums have been omitted from the suggested paragraph, and
treatment in a separate paragraph has been proposed. (See par.
36.) These articles are seldom, if ever, used medicinally, although
large quantities are imported for various technical purposes. •
(2) The general provision for “all other drugs of vegetable or ani-
mal origin” has been added in order to include certain articles of
animal origin, such as pituitary glands, dried ox-gall, and thyroid
and various other glands, which are used in the manufacture of medi-
cines. Under the present law these or similar articles have been
held dutiable as unenumerated unmanufactured or manufactured
articles, depending upon the form in which they are imported.
(3) The term “drugs,” as used in the tariff act, is not capable of
definite interpretation, and it has been thought advisable to limit it
40 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
to articles, having chief use in medicine. This is accomplished by
the definition immediately following the provision in paragraph 27.
(4) There are botanical drugs mentioned specifically on the free
list which, if not so enumerated, would presumably be classified under
the provisions for drugs in paragraphs 27 and 477, depending upon
whether or not advanced in value or condition. The differential of
10 per cent existing between the crude and advanced articles is not
maintained in the cases where the drugs are specifically mentioned,
since the specific enumeration has been held to include the articles in
any form or condition under their respective names. There is no
apparent reason for exempting these drugs from duty when im-
ported in ground form, or otherwise advanced in value or condition,
and at the same time imposing a duty of 10 per cent on all other
ground or advanced drugs. -
The following drugs are of this class: *
(Par. 388) aconite, (par. 405) asafetida, (par. 409) balm of Gilead,
(par. 410) cinchona bark, (par. 454) cocculus indicus, (par. 516) ipecac,
(par. 519) jalap, (par. 541) manna, (par. 544) marshmallow root,
(par. 558) nux vomica, and (par. 592) salep.
It should be pointed out, however, that cinchona bark and nux
vomica are the sources of the important alkaloids quinine and strych-
nine, both of which are provided for specifically on the free list.
Accordingly, the provisions for these two crude drugs are retained
unchanged on the free list.
Balm of Gilead and Salep, or salop, are unimportant articles, practi-
cally obsolete in the drug trade, and it is suggested that their specific
enumeration be abandoned. Lacking specific mention they would
presumably be included in the provisions corresponding to paragraphs
27 and 477.
It is suggested that for tariff purposes these drugs might well be
grouped into a provision on the dutiable list for the ground or other-
wise advanced articles and into a similar provision on the free list
for the crude and unground articles.
(5) Aloes is an important crude drug consisting of the dried juice
of a tropical plant and is commonly known as a gum. Since gums
are omitted from the preceding paragraph, there is at least a possi-
bility that aloes would not be included in the drug provisions (but as
a gum in paragraph 36). , Considerably over a million pounds have
been imported annually since 1916. It is therefore suggested that
aloes be given specific enumeration in this paragraph.
(6) Maté, or Paraguay tea, and pyrethrum, or insect flowers, are
two important articles of vegetable origin, which although not directly
used for medicinal purposes are, nevertheless, of related character.
When imported in crude form, these articles are presumably free of
duty under the general provision in paragraph 552 for crude or
unmanufactured vegetable substances. When ground or advanced
in value, maté and insect flowers have been held dutiable as un-
enumerated manufactured articles. (T. D. 3909, of 1879; Abstract
36476, T. D. 34763, of 1914; T. D. 38.123, of 1919.)
SCHEDULE A-CHEMICALS, OILs, AND PAINTs.
41
PARAGRAPH 28.
ACT OF 1909.
(Free.)
ACT OF 1913.
562. Ergot.
28. Ergot, 10 cents per pound.
SUGGESTED RECLASSIFICA-
TION.
Par. Ergot, -----.
* * * * * * * * * * * * * * *
PARAGRAPH 29.
ACT OF 1909.
21. Ethers: Sulphuric, 8 cents per
pound; Spirits of nitrous ether, 20 cents
per pound; * * * ethers of all kinds
not specially provided for in this sec-
tion, 50 cents per pound; ethyl chloride,
30 per centum ad valorem: Provided,
That no article of this paragraph shall
pay a less rate of duty than 25 per centum
ad valorem.
ACT OF 1913.
29. Ethers: Sulphuric, 4 cents per
pound; amyl nitrite, 20 per centum ad
Valorem; amyl acetate and ethyl acetate
or acetic ether, 5 cents per pound; ethyl
chloride, 20 per centum \ad valorem;
ethers and esters of all kinds not specially
provided for in this section, 20 per
centum ad valorem: Provided, That no
article containing more than 10 per
centum of alcohol shall be classified for
duty under this paragraph.
SUGGE STED RECILASSIFICA-
TION.
Par. Ethers and esters: (1)
Amyl acetate, . . . . . . . . . . . . . . . . . ; diethyl
Sulphate (2),. . . . . . . . . . . . . . . . º
Sulphate (2), . . . . . . . . . . . . . . . . . . . . . . . . . ;
ethyl acetate (3), . . . . . . . . . . . . . . . . . . . . . .
esters of all kinds not specially provided
for in this section (5), ... . . . . . . . . . . . . . . .
containing more than 10 per centum of
alcohol shall be classified for duty under
this paragraph.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) “Ether” when used without other special designation, always
refers to ethyl ether (diethyl oxide).
It is furthermore a class name
in chemical nomenclature designating a group of organic chemical
compounds which are oxides of hydrocarbon radicals.
Esters are
distinctly different from ethers and are products of the action of acids
On alcohols with the elimination of water.
They are analogous to
42 SCHEDULE A-CHEMICALS, OILS, AND PAINTS.
inorganic salts. Many chemical compounds, which strictly speakin
are esters, are often and improperly called ethers; for example, ethy
acetate is incorrectly called acetic ether. . Of the articles specifically
mentioned in paragraph 29 Only one—Sulphuric ether—is a true ether;
all the others are esters. In order to make the paragraph conform to
the definition given above of ethers and esters, the heading “Ethers”
has been changed to “Ethers and esters.” The articles have been
arranged alphabetically.
(2) Dimethyl sulphate and diethyl sulphate are important esters
not specifically mentioned in paragraph 29. They are largely used as
methylating and ethylating agents in the manufacture of dyestuffs.
These articles will probably be much more important in the future
because of the growth of the American dye industry. During the
fiscal year 1914, the imports of dimethyl sulphate amounted to
9,534 pounds, valued at $2,331, practically all of which came from
Germany. This import is as large as or larger than the imports of
other articles mentioned specifically in this paragraph. It is sug-
gested that dimethyl sulphate and diethyl sulphate be mentioned by
Ila,IYle.
(3) Ethyl acetate is strictly speaking an ester, not an ether; “acetic
ether,” therefore, has been omitted.
(4) “Sulphuric” refers to the acid used in the manufacture of ethyl
ether and is not a true description of the article. The name “sul-
phuric ether” is not used in the Pharmacopoeia and is practically
obsolete in commercial usage. “Ethyl ether” has been substituted.
(5) Amyl nitrite is a relatively unimportant ester and has been
omitted. It is covered by the provision for “ethers and esters of all
kinds not specially provided for in this section.”
PARAGRAPH 30.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
22. Extracts and decoctions of logwood
and other dyewoods, and extracts of bark, (If all dyeing and tanning extracts
such as are commonly used for dyeing should be made dutiable.)
* * * not specially provided for in -
this section, seven-eighths of 1 cent per & *
pound; extracts of nutgalls, aqueous, one- Par. . Extracts, dyeing and tan-
fourth of 1 cent per pound and 10 per
centum ad valorem; extract of Persian
berries, 20 per centum ad valorem; ning (1): Chestnut (2), . . . . . . . . . . . . . . . .
* * * extracts of sumac, * * * not
Specially provided for in this section, five-
eighths of 1 cent per pound; all extracts [ . . . . . . . . . . . . . . ; Cutch (3), . . . . . . . . . . . . . .
of vegetable origin suitable for dyeing,
coloring, staining or tanning, not con-
taining alcohol and not medicinal, and . . . . . . . . . . . . . . . . ; chlorophyll (2), . . . . . .
not specially provided for in this section, . -
15 per centum ad valorem.
ACT OF 1913.
* * * * * * * * * * * * * * * * * * * * = sº sº m ; divi divi (3),
30. Extracts and decoctions of nutgalls, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ‘; fustic
Persian berries, Sumac, logwood, and
other dyewoods, and all extracts of vege-
table origin suitable for dyeing, coloring, (3), . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;
or staining, not specially provided for in -
this section; all the foregoing not con- -
taining alcohol and not medicinal, three- hemlock (2), . . . . . . . . . . . . . . . . . . . . . . . . . .
eighths of 1 cent per pound.
SCHEDULE A–CHEMICALS, OILS, AND PAINTs. 43
. . . . ; logwood (2), . . . . . . . . . . . . . . . . . . . .
bracho (2), . . . . . . . . . . . . . . . . . . . . . . . . . .
----, Valonia (3), . . . . . . . . . . . . . . . . . . . . . .
or preparations of vegetable origin used
for dyeing, coloring, staining, or tanning,
not specially provided for in this section .
(4); and combinations and mixtures of the
foregoing articles in this paragraph (5),
article containing alcohol shall be classi-
fied for duty under this paragraph.
REASONS FOR SUGGESTED RECLASSIFICATION.
Dyeing and tanning materials of vegetable origin bear a close rela-
tionship to each other as to origin and process of manufacture. These
products are prepared from various raw materials of vegetable Origin,
such as barks, woods, and berries. The raw materials are ...; in
a similar manner for the production of either tanning materials or of
natural dyes. In the case of tanning materials the active ingredient
sought for in the finished product is tannin or tannic acid, while in
the case of dyeing materials a coloring ingredient is sought, although
a dye extract may contain considerable tannin and a tanning extract
may contain a dyeing ingredient. The general method of manufac-
44 SCHEDULE A–CEIEMICALS, OILS, AND PAINTS.
ture of both tanning materials and dyes is to extract the various
materials with water, which dissolves the active ingredients. This
water solution is then evaporated either to a liquid of the desired con-
centration or to a solid. It is evident, therefore, that tanning mate-
rials and natural dyes can be manufactured in the same plant with
the same equipment; a plant equipped to manufacture one of these
materials can manufacture the other without any material change in
design or operation.
Although there are some of these natural products which are used
exclusively for either tanning or dyeing, many of them have over-
lapping uses. In the case of certain products it is difficult to deter-
mine whether a given product has greater use as a tanning material
or as a natural dye. Also, in many cases the same grade of one
product is used interchangeably for either purpose. It is evident that
any classification for tariff purposes of these closely related products
of vegetable origin, differentiated by use as a tanning material or as
a dyeing material, will involve administrative difficulties and result
in litigation.
Under the act of 1913 all of the raw materials used in the prepara-
tion of dyeing and tanning extracts are free of duty under paragraph
624. The extracts prepared from these materials, however, receive
different tariff treatment, depending upon use as a dyeing or as a
tanning material. All extracts of vegetable origin “suitable for dye-
ing, coloring, or staining,” not specially provided for, are dutiable at
three-eighths cent per pound under paragraph 30. Extracts of vege-
table origin, “such as are commonly used for tanning,” not specially
provided for, are free of duty under paragraph 624. This attempt
to differentiate between very similar products, overlapping in use,
has led to considerable litigation. For example, true cutch, made
from the wood and leaves of the acacia catechu tree, was declared
dutiable under paragraph 30, as an extract of vegetable origin suitable
for dyeing, while a product known as mangrove cutch, prepared from
the bark of the mangrove tree, was declared exempt from duty under
paragraph 624 (G. A. 8265, T. D. 38055, of 1919).
In order to facilitate customs classification and to prevent litigation
in connection with dyeing and tanning materials of vegetable origin,
it is suggested that these very similar products be given uniform tariff
treatment—either free or dutiable as the Congress may see fit. If,
however, it is desired to have some free and the remainder dutiable,
then specific mention should be made in a separate paragraph and,
logically, those not mentioned specifically should receive the same
tariff treatment regardless of whether used as a dyeing or as a tanning
material. Specific enumeration of certain articles and a uniform
treatment of those products not mentioned specifically would not
involve any great administrative difficulties. All of the dyeing and
tanning extracts of vegetable origin have been included in the Sug-
gested paragraph.
(1) Since the products appearing in the suggested paragraph are
all dyeing and tanning extracts of vegetable origin, the heading
“Extracts, dyeing or tanning” has been used.
(2) Certain extracts appearing in paragraph 624, for reasons given
above, have been transferred to the suggested paragraph and enu-
merated specifically. These are hemlock, oak, chestnut, and que-
bracho extracts. Logwood, Sumac, and Persian berry extracts are


SCHEDULE A–CHEMICALS, OILS, AND PAINTs. 45
mentioned by name in paragraph 30, and their specific enumeration
is continued in the suggested paragraph. Extract of chlorophyll has
been transferred to this paragraph from paragraph 31.
(3) There are several dyeing an tanning extracts not mentioned
specifically in the act of 1913 which are of equal or greater importance
than some of those enumerated. Of these, the following have been
specifically mentioned in the suggested paragraph:
Mangrove is one of the most important tanning materials, which is
derived chiefly from foreign sources.
Wattle extract is of comparatively recent development and prom-
ises to become one of the more important tanning materials imported
from foreign sources.
Fustic extract ranks next to logwood as the most important dye-
wood extract.
Divi divi extract is an important tanning material.
Cutch, an important dyewood extract, made from the wood and
leaves of acacia catechu, was declared dutiable under paragraph 30 (G.
A. 8265, T. D. 38055, of 1919). The domestic consumption of cutch
is supplied wholly by imports.
Myrobalan and valomia extracts are of sufficient importance to
receive specific enumeration in the suggested paragraph.
(4) In order to include all other dyeing and tanning extracts, the
wording “other extracts, decoctions, or preparations of vegetable
Origin used for dyeing, coloring, staining, or tanning” has been
inserted in the suggested paragraph.
(5) In order to facilitate classification and to prevent possible
evasion the phrase “and combinations and mixtures of the foregoing
articles in this paragraph” has been added.
Extracts of nutgalls provided for in paragraph 30 have been trans-
ferred to paragraph 1.
PARAGRAPH 31.
ACT OF 1909. SUGGE STED RECILASSIFICA-
TION.
22. * * * Chlorophyll, 20 per centum
ad valorem; * * *.
663. Saffron and safflower, and extract
of, and saffron cake. (Free.)
ACT OF 1913.
Par. . Saffron and safflower (1),
31. Extract of chlorophyll, 15 per
centum ad valorem; saffron and saf-
flower, and extract of, and saffron cake,
10 per centum ad valorem: Provided,
That no article containing alcohol shall
be classified for duty under this para-
graph.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Saffron and safflower extracts are not articles of commerce
and have been omitted. Extract of chlorophyll has been transferred
to paragraph 30. The term “saffron , cake” has been omitted
because it is a form of saffron and would come within that term.
^.
46 SCHEDULE A–CHEMICALS, OILS, AND PAINTs.
PARAGRAPH 32.
ACT OF 1909, SUGGESTED RECLASSIFICA-
TION.
Not, specially provided for. .
ACT OF 1913.
Par. . Formaldehyde solution or
32. Formaldehyde solution containing formalin (1), . . . . . . . . . . . . . . . . . . . . . . . . ;
not more than 40 per centum of formal-
dehyde, or formaline, 1 cent per pound. -
solid formaldehyde or paraformaldehyde,
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) There is no apparent necessity for the restricting clause “con-
taining more than 40 per cent of formaldehyde” in connection with
formaldehyde solution. For technical reasons it is not feasible to
make a solution of formaldehyde containing more than 40 per cent
by weight of formaldehyde. The trade name is “formalin” not
formaline.
(2) Paraformaldehyde, or solid formaldehyde, is another im-
portant commercial form of formaldehyde. The ratio of the formal-
dehyde content of formaldehyde solution to that of paraformaldehyde
is as 37.5 to 95 by weight, or about as 1 to 2%. , Because of the addi-
tional cost of manufacturing the solid formaldehyde from formal-
dehyde solution, the value of the solid formaldehyde is 3 to 4 times
that of the solution.
(3) Hexamethylenetetramine is a chemical compound produced
by the combination of formaldehyde and ammonia. This compound
has become of sufficient industrial importance to warrant specific
mention. -
PARAGRAPH 33.
ACT OF 1909. - SUGGESTED RECLASSIFICA-
TION.
36. Fusel oil, or amylic alcohol, one-
fourth of 1 cent per pound. Par. . Butyl alcohol (1), . . . . . . . .
ACT OF 1913.
- - - - - - - - - - - - - - - - - - - - ; fusel oil and amyl
33. Fusel oil, or amylic alcohol, one-
fourth cent per pound.
alcohol, -------------------- ; isopropyl
alcohol (2), --------------------------.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 47
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Butyl alcohol has been held to come within the provision for
fusel oil or amylic alcohol (G. A. 8288, T. D. 38144; Abstract 43906).
Prior to the war butyl alcohol was of no commercial significance. It
was produced as a by-product dºing. war in the manufacture of
acetone by a fermentation process. Since the signing of the armistice
butyl alcohol has become an important solvent in the manufacture
of pyroxylin plastics, such as celluloid.
(2) Isopropyl alcohol, like butyl alochol, was of little commercial
importance before the war. A process has been developed for
making isopropyl alcohol from waste propylene gas obtained in
certain processes of cracking petroleum. It may be used as a solvent
similar to other alcohols, and in the preparation of propyl esters in
the manufacture of perfume chemicals. At least two firms are
manufacturing this alcohol at the present time. Its increasing
commercial importance warrants specific mention.
PARAGRAPH 34.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
23. Gelatin, glue, isinglass or fish glue, *
including agar-agar or Japanese isinglass, Par. . Gelatin, glue, and glue
and all fish bladders and fish Sounds
other than crude or dried or salted for . -
preservation only, valued at not above | Size (1), ------ per centum ad valorem
10 cents per pound, 24 cents per pound;
valued at above 10 cents per pound and -
not above 35 cents per pound, 25 per and . . . . . . Cents per pound; manufac-
centum ad valorem; valued above 35
3ents per pound, 15 cents per pound and
20 per centum ad valorem; gelatin in
heets, emulsions, and all manufactures
of gelatin, or of which gelatin is the com-
tures, wholly or in chief value of gelatin,
ponent material of chief value, not spe- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ; Caseln
cially provided for in this section, 35 per
centum ad valorem; glue size, 25 per * *
C. 7 S j l glue (2). . . . . . . ; isinglass and other fish
centum ad valorem.
ACT OF 1913. Sounds, cleaned, split, or otherwise pre-
34. Gelatin, glue, and glue size, valued
not above 10 cents per pound, 1 cent per
pound; valued above 10 cents per pound
and not above 25 cents per pound, 15 per
centum ad valorem; valued above 25
cents per pound, 25 per centum ad va-
lorem; manufactures of gelatin or manu-
factures of which gelatin is the compo-
nent material of chief value, 25 per
centum ad valorem; isinglass and pre-
pared fish Sounds, 25 per centum ad
Valorem; agar-agar, 20 per centum ad
valorem.
pared (3) -----------------....... ....
48 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Glue and gelatin resemble each other closely in chemical com-
osition and method of manufacture. Broadly speaking, gelatin is
igh-grade or pure glue, and glue is low-grade or inferior gelatin.
There is, however, no clear and well-defined dividing line between
glue and gelatin. There are also no reliable methods of anlaysis in
the separation of glue into various commercial grades, although an
expert can form a personal opinion of the proper designation and
value of any given sample by comparison with a set of standard sam-
E. It is not possible to write a definition which will distinguish
etween glue and gelatin or to define the quality of either one which
would be suitable for incorporation in the tariff act.
A larger part of the import has been the low-grade glue and the
highest grades of food and technical gelatin. The price of glue varies
widely, depending upon quality, and gelatin sells at a still higher price
Owing to the care and special apparatus required in its manufacture.
In an effort to meet this situation the duty on glue and gelatin under
the act of 1890 and since the passage of the act of 1897 has been
divided into three classes, the dº being determined by value. It
is questionable whether this classification of glue, and gelatin serves
any purpose, either to the Government or to the domestic producers.
Such a division by value may work well in times of comparatively
steady prices. On the other hand, in times of fluctuating prices,
such specification is likely to cause a change in tariff treatment of the
various grades of glue and gelatin.
In the hearing š. the Ways and Means Committee in 1913,
manufacturers urged ad Valorem duties on all grades of glue and
gelatin, while in 1921 they recommended compound duties on one
of the higher grades and ad Valorem duties on the others. A com-
pound duty appears to have marked administrative advantages over
any attempt to distinguish between glue and gelatin.
Manufacturers have also urged that gelatin be made dutiable at a
higher rate than glue. Administration of such a provision would be
difficult because, as has been pointed out, gelatin and glue grade
into each other in such a manner that no accurate dividing line can
be drawn. Therefore, if they are dutiable at different rates, contro-
versy and litigation are likely to result over classification of these
materials. It is therefore suggested that no attempt be made to
distinguish between glue and gelatin and that all glue and gelatin be
provided for at a compound rate of duty. A compound duty can be
established so that the specific duty would more particularly apply
to the low-grade glues, which are the bulk of the imports, and the
ad valorem duty to the high-grade glue and gelatin.
(2) It is suggested that specific provision be made for “casein
glue.” This product became of importance during the war as a
waterproof glue for glueing together parts of airplanes. It has
become of considerable industrial importance and is an active com-
petitor of the gelatin glues. -
(3) Fish sounds, split, washed, and dried in the Sun, such splitting
being part of the ãº. process, were held not “prepared fish
sounds” within this paragraph, but exempt from duty under Fº
graph 419 (United States v. Brown, 10 Ct. Cust. Appls., -—; T. D.
38295). The phrase “cleaned, split, or otherwise prepared” would
bring within this paragraph fish sounds so treated.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
49
PARAGRAPH 35.
ACT OF 1909.
24. Glycerin, crude, not purified, 1
cent per pound; refined, 3 cents per
pound.
ACT OF 1913.
35. Glycerin, crude, not purified, 1
cent per pound; refined, 2 cents per
pound. -
SUGGESTED RECLASSIFICA-
TION. º
Par. . Glycerin, crude, (1)
- = , = - - - - - - - - - - - - - - - - - - - - - - - - - * * * * * * * * * * *
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) “Not purified” is omitted, as the term “crude” signifies not
purified.
PARAGRAPH 36.
ACT OF 1909.
488. Amber, and amberoid unmanu-
factured, or crude gum * * *. (Free.)
527. Camphor, crude, natural. (Free.)
12. Camphor, refined, and synthetic
camphor, 6 cents per pound.
30. Chicle, 10 cents per pound.
297. Dextrine, dextrine substitutes,
soluble starch or chemically treated
starch, burnt starch, gum substitute, or
British gum, 1% cents per pound.
ACT OF 1913.
36. Gums: Amber, and amberoid un-
manufactured, or crude gum, not specially
provided for in this section, $1 per pound;
arabic, or Senegal, one-half cent per
pound; Camphor, crude, natural, 1 cent
per pound; camphor, refined and Syn-
thetic, 5 cents per pound; chicle, crude,
15 cents per pound; refined or advanced
in value by drying, straining, or any other
process or treatment whatever beyond
that essential to the proper packing, 20
cents per pound; dextrine, made from
potato starch or potato flour, 1} cents per
pound; dextrine, not otherwise provided
for, burnt starch or British gum, dex-
trine substitutes, and soluble or chemi-
cally treated starch, three-fourths of 1
cent per pound.
40650—21—4
SUGGESTED RECLASSIFICA-
TION.
Par. . Gums and resins (1): Am-
her and &mberoid, unmanufactured (2),
not specially provided for in this section,
or Senegal,
(3) chicle, crude, . . . . . . . . . . . . . . . . . . . . .
- * * * * * * - - - ; refined or advanced in value
by drying, straining, or any other process
or treatment whatever beyond that essen-
tial to the proper packing, . . . . . . . . . . . . .
- * * * * * - - - - - - - sº * - - - ; (4) kadaya (5), . . . .
* * * * * * * * * * * * * * * * * * * * * * * * * * ; tragacanth,
tragasol (5). . . . . . . . . . . . . . . . . . . . . . . . . . . ;
50 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
and other gums, gum resins, alld resins,
not specially provided for in this section
REASONS FOR SUGGESTED RECLASSIFICATION.
(1). The heading for this paragraph has been changed from “gums.”
to “Gums and resins,” as the paragraph has been expanded to include
all gums, gum resins, and resins not specially provided for.
(2) The words “ or crude gum” have been omitted, as no reference
has been found in the literature on amber, which would indicate that
the words “crude gum” are synonymous with amber. “Amber chips
valued at not more than 50 cents per pound” is provided for specifi-
cally in paragraph. 500, free list.
(3). The provision for camphor has been transferred to paragraph
43, which provides for menthol. Menthol is similar in chemical com-
position to camphor. Camphor is not a true gum or resin.
(4) The provision for dextrin, British gum, dextrin substitutes,
and soluble or chemically treated starch, has been transferred and
combined with the provision for starches in paragraph 234 to form a
separate paragraph to follow paragraph 67.
(5) There are several gums which are of sufficient commercial
importance to warrant specific mention. These include tragacanth,
imports of which in 1914 were 1,800,000 pounds; tragasol, imports in
1914, 913,000 pounds; and kadaya gum, of which 867,000 pounds
were imported in 1914. It is suggested that these be mentioned
specifically in the suggested paragraph. - & -
(6) As only a comparatively few of the gum resins and resins are
used in substantial quantities for medicinal purposes, it is suggested
that an “all-other” provision be added to this paragraph to cover
those products not specially provided for. The gums, such as india
rubber, gutta-percha, and similar gums used in the manufacture of
rubber, are provided for specifically in the free list, as are also the
resins used primarily in the manufacture of varnish.
PARAGRAPH 37.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
26. Ink and ink powders, 25 per e
centum ad Valorem. Par. . Ink, and ink powders not
ACT OF 1913. * * * * * *
specially provided for in this section (1),
37. Ink and ink powders, 15 per
centum ad valorem.
* * * * * * * * * * * * * * * * * * * * * * * * * * *
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Ink powders are often coal-tar dyes which, dissolved in water,
form commercial ink. Ink powders consisting of coal-tar dyes are
provided for in H. R. 8078, which passed the ºfouse of Representa-
tives on September 26, 1919. “Not specially provided for in this
section” is inserted to exclude ink powders produced from coal tar.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 51
PARAGRAPH 38.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
28. Iodoform, 75 cents per pound.
62. Eſydriodate, iodide, and iodate of (It is suggested that this paragraph be
potash, 25 cents per pound. omitted and the articles mentioned be
transferred to other paragraphs of sched-
ACT OF 1913. ule A.)
38. Iodoform, and potassium iodide,
15 cents per pound.
REASONS FOR SUGGESTED RECLASSIFICATION.
Potassium iodide is the only potassium compound mentioned by
name in schedule A that is outside of paragraph 64, and it would
seem advisable to transfer it to that paragraph. -
Iodoform is a medicinal similar in use to the articles mentioned in
paragraph 18, and if its specific enumeration is to be continued it
might be transferred to that paragraph. However, imports of iodo-
form are practically negligible; none was received in 1916, 1917, and
1919; 1 pound was reported in 1918, and the maximum import since
1908 was but 86 pounds in 1914. If not specifically provided for,
iodoform would probably fall within paragraphs 5 or 17 as a chemical
or medicinal compound n. S. p. f. -
PARAGRAPH 39.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
41. * * *; coca leaves, 5 cents per
pound; * * *. Par. . (1) Buchu leaves, . . . . . . . .
611. Licorice root, unground. (Free.)
ACT OF 1913. . . . . . . . . . . . . . . . . . . . . ; Coca leaves, . . . . . g
39. Leaves and roots: Buchu leaves,
10 cents per pound; coca leaves, 10 cents | . . . . . . . . . . . . . . . . . . . . . . ; gentian, ------.
per pound; gentian, one-fourth cent per
pound; licorice root, one-fourth cent
per pound; Sarsaparilla root, 1 cent per | . . . . . . . . . . . . . . . . . . . . . . . . ; licorice root,
pound. *
tº e º ºs ºs sº e º gº tº e º sº º sº tºº e º ºs e = * * * * * * * * * ; and Sar-
Saparilla root, . . . . . . . . . . - - - - - - - - - - - - - - - -
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The general heading “Leaves and roots” is not necessary, since
these are repeated after the names of the individual items. In the
case of gentian the provision has been construed to include both
roots and leaves. (Abstract 39291, of 1916.)
52 SCHRDULE A–CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 40.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
29. Licorice, extracts of, in paste, rolls, - - - -
or other forms, 2% cents per pound. Par. . Licorice, extracts of, in
ACT OF 1913.
pastes, rolls, or other forms, . . . . . . . . . . - -
40. Licorice, extracts of, in pastes,
rolls, or other forms, 1 cent per pound.
• * = * = * * * * * * * * * * * * * *
PARAGRAPH 41.
ACT OF 1909. SUGGE STED RECLASSIFICA-
- TION.
613. Lime, citrate of. (Free.) º º
g Par. . Lime, citrate of, . . . . . . . . .
ACT OF 1913.
41. Lime, citrate of, 1 cent per pound. - - - - - - - - - - - - - - - - - - - - - -
PARAGRAPH 42.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION. º
31. Magnesia and carbonate of, medici- .
nal, 3 cents per pound; calcined, medici- Par. . Magnesium (1): Carbonate,
nal, 7 cents per pound; Sulphate of, or
Epsom salts, one-fifth of 1 cent per pound.
ACT OF 1913.
42. Magnesia: Calcined, 3% cents per - - - - - - - - , chloride (2), . . . . . . . . . . . . . . . . .
pound; carbonate of, precipitated, 1%
cents per pound; Sulphate of, or Epsom
salts, one-tenth cent per pound. - - - - - - - - - - - - - - ; sulphate or Epsom Salts,
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) “Magnesia” in chemical terminology refers to magnesium
Oxide. In designating magnesium compounds it is the practice to
use the word “magnesium” followed by the name of the acid radical
which makes up the salt, e. g. magnesium carbonate. For the general
heading, “Magnesium:” has been used and the word “of” has been
omitted. -
(2) Magnesium chloride is a magnesium compound which has im-
portant industrial uses and is one of the raw materials used in the
manufacture of metallic magnesium. Imports in 1914 amounted to
5,582,126 pounds valued at $46,926, which are as large as the imports
of other magnesium compounds mentioned in paragraph 42. -
(3) “Calcined magnesia” has been changed to “magnesium oxide,
medicinal” because of the difficulty in distinguishing the technical
SCHEDULE A–CIHEMICALS, OILS, AND PAINTS.
53
grades of calcined magnesia from calcined magnesite, free of duty
under paragraph. 539.
restricted to the medicinal grade.
Under the act of 1909, calcined magnesia was
Because of their similar chemical
composition, calcined magnesia and calcined magnesite should
receive the same tariff treatment, either free or dutiable.
PARAGRAPH 43.
ACT OF 1909.
Not specially provided for.
ACT OF 1913.
43. Menthol, 50 cents per pound.
ACT OF 1909.
183. * * * monazite Sand and tho-
rite, 4 cents per pound; thorium, oxide of
and Salts of, gas mantles treated with
chemicals or metallic oxides, and gas-
mantle Scrap consisting in chief value of
metallic oxides, 40 per centum ad valo-
Tern.
ACT OF 1913.
154. * * * monazite Sand and tho-
rite; thorium, oxide of and salts of;
+k 25 per centum ad valorem; and
gas-mantle Scrap consisting in chief value
; metallic oxides, 10 per centum ad va-
OTEDOl.
SUGGE STED RECILASSIFICA-
TION.
Par. . Menthol, . . . . . . . . . . . . . . . . .
* = - - - - - - - - - - sº * ; camphor, natural and
• * * * * * * * * * * * - * * * * * * * * * * * *
* * - - - - - - * * - - ºg - - as a - - - - - - - - - - s - -
* - - e = - - - - - - - - - - e - - - - - -
other salts of thorium not specially pro-
vided for in this section,
cerium nitrate (4),
fluoride,
and other salts of cerium not specially
provided for in this section, * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * ; gas-mantle (5) scrap
consisting in chief value of metallic ox-
54 SCHEDULE A–CEIEMICALS, OILS, AND PAINTS.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The provision for camphor, paragraph 36, has been transferred
to this paragraph, as it is not a true gum, but is similar in chemical
composition to menthol, provided for in paragraph 43. In the act
of 1913 camphor, crude and natural, is dutiable at 1 cent per pound,
while the refined or synthetic is dutiable at 5 cents per pound. Cus-
toms authorities have had considerable difficulty in determining
what is crude camphor and what is refined. The distinction in
duties between the crude and refined camphor was probably intended
to encourage the refining of camphor in the United States. When
the act of 1913 was passed, the refining of camphor constituted a
separate industry in this country, and the product of the industry
was sold to manufacturers of pyroxylin or celluloid. At the present
time the bulk of the camphor used in the manufacture of pyroxylin
plastics is refined by the pyroxylin manufacturers themselves.
Camphor which is refined outside this industry is principally that
used for medicinal purposes, which constitutes a very small percent-
age of the total consumption of camphor. The cost of refining crude
camphor is small, amounting to only a few cents per pound. Owin
to the difficulty in determining what is crude and what is refine
camphor, it is suggested that no distinction be made in grade and
that natural and synthetic camphor be provided for at the same rate
of dutv. , sº
(2) Monazite sand and the salts of its principal constituent, thorium,
are now provided for in paragraph 154, Schedule C, and it is suggested
that the provisions of that paragraph relating to these products be
made a separate paragraph and transferred to Schedule A. The
salts of thorium and cerium are chemical compounds obtained from
monazite sand by complex chemical processes, and it is believed that
they logically belong to the chemical schedule. Their manufacture
constitutes a well-defined branch of the so-called “fine-chemical”
industry.
The present law provides for “monazite sand and thorite.” The
latter mineral, at one time the principal source of thorium, is now
comparatively rare, and therefore seldom used. It is, however,
occasionally imported from Norway and Ceylon. Thorianite is
another thorium mineral produced in Ceylon and used to a small
extent as a source of thorium. Thorianite has been classified by
similitude as thorite. In order to include both minerals and any
other ores which might be developed as sources of thorium, it is
suggested that the provision be made to cover “other thorium ores.”
(3) Thorium nitrate is by far the most important of the thorium
salts and should be specifically mentioned. Prior to the war the
annual imports averaged over 100,000 pounds, but at the present
time our consumption is supplied by domestic manufacture.
(4) Monazite sand is also the chief source of the metal cerium from
which cerium nitrate, cerium fluoride, and similar salts are prepared.
Cerium occurs in monazite sand in larger amounts than thorium and
is considerably cheaper. Cerium nitrate is used with thorium nitrate
in gas mantles. Cerium fluoride is used in the electrodes for flaming-
arc lamps. These cerium compounds are now dutiable under the
general provision in paragraph 5 for chemical compounds and salts,
but it is suggested that they be given specific mention in this para-
(
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 55.
graph, which provides for the related thorium salts and for the raw
material, monazite sand.
(5) Gas-mantle scrap is chiefly a mixture of thorium and cerium
Oxides, in which thorium oxide is the component material of chief
value. -
PARAGRAPH 44.
ACT OF 1909. . SUGGE STED RECLASSIFICA.— .
. TION.
3. * * * Rendered oils and all
combinations of the foregoing * * *
and all greases, not specially provided
for in this section, 25 per centum ad
valorem: * * *
40. Seal, herring, whale, and other fish
Pal'. . Oils, animal (1): Sod,
herring, and menhaden (2), . . . . . . . . . . .
oil, including sod oil, not specially pro-
tº * * e * - ſº - - - - - - - - - -- I - - - - - - - - - - - - - - - - - - - ; whale, Seal, an
vided for in this section, 8 cents per j , Seal, d
gallon.
290. * * * Wool grease, including sperm, . . . . . . . . . . . . . . . . . . . . . . . . . . . ; and
that known commercially as degras or
brown wool grease, crude and not refined,
or improved in value or condition, one-
fourth of 1 cent per pound; refined, or
improved in value or condition, and not for in this section, . . . . . . . . . . . . . . . . . . . **
Specially provided for in this section,
one-half of 1 cent per pound.
ACT OF 1913.
all fish oils (3), not specially provided
* * * * * * * * * * ; wool grease, crude, includ-
- O' T. - - * w •es
44. Oils, rendered: Sod, seal, herring, ing that known commercially as degras or
and other fish oil, not specially provided
for in this section, 3 cents per gallon;
whale oil, 5 cents per gallon; sperm oil,
8 cents per gallon; wool grease, including - - - - - - - - - -
that known commercially as degras or
brown wool grease, crude and not refined including adeps lanae, hydrous and
or improved in value or condition, one- -
fourth cent per pound; refined or im- anhydrous (5) ------------------------
proved in value º º and not *
Specially provided for in this section, one- * • a ºn 3 & *
half cent per pound; landlin, 1 cent per ; all other animal oils and greases
pound; all other animal oils, rendered
oils and greases, and all combinations
of the same, not specially provided for in
this section, 15 per centum ad valorem. tion, -----------------------
brown Wool grease, . . . . . . . . . . . . . . . . . . . *
(4); wool grease, not crude,
(6), not specially provided for in this sec-
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) “Oils, animal,” has been substituted for “oils, rendered.”
“Oils, rendered” is omitted as these oils may be prepared by other
methods than rendering. “Animal” is added because of the inser-
tion of “all other animal oils,” which brings within this paragraph
all animal oils not specially provided for. e
(2) Menhaden oil is one of the most important domestic fish oils
and has been added to the suggested paragraph.
(3) “Fish oils” is used as a broader term in place of “fish oil.”
(4) “Refined or improved in value or condition, and not specially
provided for in this section -- - - - - cent per pound,” is omitted
because this intermediate grade of wool grease is of small commercial
importance and its separate mention presents difficulties in admin-
56 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
istration due to the lack of distinction between the intermediate
grade and the grades of higher or of lower quality. Anhydrous
lanolin, the most highly purified product, was admitted at the
lower rate of duty provided for the intermediate grade, notwith-
º the apparent intention to subject lanolin to the higher rate
of duty.
(5) “Adeps lanae, hydrous and anhydrous” is substituted for
“lanolin,” which is too restricted in its application to include all the
more highly purified forms of wool grease used in the pharmaceutical
trade, and has given rise to litigation. According to the United
States Dispensatory, adeps lanae, hydrous, or hydrous wool fat, or
lanolin, is a purified fat from the wool of the sheep combined with
not less than 25 per cent and not more than 30 per cent of water.
Adeps lanae, anhydrous, or anhydrous lanolin, is the purified wool
fat free from water. Both products are highly purified forms of
wool fat used by the drug trade and should carry the highest rate of
duty as they are of the greatest unit value. By the use of the
phrase “adeps lanae, hydrous and anhydrous” this highly purified
form of wool fat would not be brought in at the lower rate of duty.
According to the decisions ºt; States v. Merck, 8 Ct. Cust.
Appls., 171, of 1917, and G. A. 8267, T. D. 38064, of 1919) anhydrous
lanolin, or adeps lanae anhydrous, paid a less duty than lanolin
hydrous, although the former is higher priced and is water free,
while the lanolin hydrous contains about 30 per cent of water. In
order to have the higher rate of duty apply to the pharmaceutical
grades of purified wool fat (which must conform to the strict require-
ments of the Pharmacopoeia), the wording “wool grease not crude,
including adeps lanae, hydrous and anhydrous,” is suggested.
(6) The provision for all combinations of animal oils has been
omitted from this paragraph and is given separate treatment (see
paragraph 45). .
PARAGRAPH 45.
ACT OF 1909. SUGGESTED RECILASSIFICA-
- TION.
32. Alizarin assistant, sulpho-ricinoleic
acid, and ricinoleic acid, and soaps con- Par. . Oils, expressed or ex-
taining castor oil, any of the foregoing in
whatever form, in the manufacture of
which 50 per centum or more of castor tracted: (1) Almond oil, Sweet, . . . . . . . . .
oil is used, 30 cents per gallon; in the
manufacture of which less than 50 per -
centum of castor oil is used, 15 cents per | . . . . . . . . . . . . . . . . . . . . ; castor oil, . . . . . . .
gallon; all other alizarin assistants and
all soluble greases used in processes of .”
softening, dyeing or finishing, not spe- | . . . . . . . . . . . . . . . . . . . . . . . . ; hempseed oil,
cially provided for in this section, 30
per centum ad valorem.
33. Castor oil, 35 cents per gallon. ---------------------------, linseed or
35. Flaxseed, linseed, and poppy-Seed
oil, raw, boiled, or oxidized, 15 cents
per gallon of seven and one-half pounds (2) flaxseed oil, raw, boiled, or oxidized,
weight.
37. Hemp-seed oil, 10 cents per gallon; e
rape-Seed oil, 10 cents per gallon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; olive
639. Oils: Almond, * * * sesame .
or sesamum seed or bean, ? 3&
(Free.)
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
.57
38. Olive oil, not specially provided
for in this section, 40 cents per gallon;
in bottles, jars, kegs, tins, or other pack-
ages, containing less than five gallons
each, 50 cents per gallon.
3. * * * Expressed oils,
and all combinations of the foregoing,
* * * not specially provided for in
this, section, 25 per centum ad valorem;
+ + +
ACT OF 1913.
45. Oils, expressed: Alizarin assistant,
sulphoricinoleic acid, and ricinoleic acid.
and Soaps containing castor oil, any of
the foregoing in whatever form, and all
•other alizarin assistants and all soluble
greases used in the processes of Soften-
ing, dyeing, or finishing, not specially
provided for in this section, 25 per
centum ad valorem; castor oil, 12 cents
per gallon; flaxseed and linseed oil, raw,
boiled, or oxidized, 10 cents per gallon
of seven and one-half pounds; poppy-
seed oil, raw, boiled, or oxidized, rape-
Seed oil, and peanut oil, 6 cents per
gallon; hempseed oil, 3 cents per gallon;
almond oil, Sweet, 5 cents per pound;
sesame or sesamum seed or bean oil, 1
cent per pound; olive oil, not specially
provided for in this section, 20 cents
per , gallon; olive oil, in bottles, jars,
kegs, tins, or other packages having a
capacity of less than five standard gal-
lons each, 30 cents per gallon; all other
expressed oils and all combinations of
the same, not specially provided for in
this section, 15 per centum ad valorem.
oil, (3)
{º not specially, provided for in this
(b) weighing with the immediate con-
Section, . . . . . . per centum ad va-
tainer less than 44 pounds, . . . . . CentS
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * -
lorem;
per pound on contents and container;
* * * * * * * * * * * * * * * * * * * * * * * * * - - - e = - - - - - - -
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * ; poppy-seed oil, raw,
boiled, or oxidized,
* * * * * * * * * * * * * * * * * * *
all other expressed and extracted oils (5),
not specially provided for in this section,
º Aliarin assistant (7),
Turkey red oil, sulphonated castor or
other Sulphonated animal or vegetable
oils (8), soaps made in whole or in part
from castor oil, and all soluble greases;
all of the foregoing in whatever form,
and used in the processes of softening,
58 SCHEDULE A-CHEMICALS, OILS, AND PAINTS.
dyeing, tanning (9), or finishing, not
specially provided for in this section,
Par. . Hydrogenated or hardened
oils and fats, (10) . . . . . . . . . . . . . . . . . . . .
~- - - - - - ; and other oils and fats, the
composition and properties of which
have been changed by Vulcanizing, oxi-
dizing, chlorinating, nitrating, or any
other chemical process (11), and not
Specially provided for in this section,
Par. . Combinations and mix-
tures (12) of animal, vegetable, or mineral
oils or of any of them (except combina-
tions of essential or distilled oils), with
or without other substances, and not
specially provided for in this section,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . Provided,
That no article containing alcohol shall be
classified for duty under this paragraph.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Vegetable oils are obtained either by expression or by extrac-
tion processes, or by expression followed by extraction of the cake
to obtain a higher yield of oil. The extracted oils are generally of
an inferior quality and unfit for human consumption. The general
descriptive head “Oils, expressed or extracted” is believed to be more
accurate than the present designation. In the suggested reclassifica-
tion the oils have been arranged alphabetically within the paragraph.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 59
(2) “Flaxseed and linseed oil * * *” is changed to “linseed
or flaxseed # * *.” “Linseed oil” is of more common usage than
“flaxseed oil,” although the seed are generally known in commerce as
flaxseed. “Per gallon of 7% pounds,” appearing after the provision
for flaxseed and linseed oil has been omitted, and it is suggested that
all specific rates be based on weight rather than on measure. Neces-
sarily the customs officers ascertain the gallonage by weight. A
gallon of oil varies in weight with temperature. The different vege-
table oils also vary somewhat in weight and different grades or
brands of the same oil often show a small variation in weight. For
these reasons the trade generally has abandoned the practice of sell-
ing vegetable oils by the gallon. The principal exceptions are in the
case of olive oil and linseed oil. As pointed out in T. D. 34528,
however, olive oil is bought abroad on a weight basis and sold in this
country in gallons. The following table shows the duties under the
present act converted to the pound rather than the gallon basis:
- Rate cal-
Name of oil º | Pº weight | *
N £1,1110 Ol Oll. (per gaion). i. ...'. per gallon. basis ºper
pound).
Cents Pounds. Cents.
Castor oil..... . . . . . . . . . . . . . . . . . . . . . . . . . 12 0.964 8. I. 50.
Linseed oil----------------------------. 10 . 933 7.77 I. 29
Poppy. Seed oil. . . . . . . . . . . . . . . . . . . . . . . . . 6 . 925 7. 70 . 78.
Hemp-seed oil---------...------------- 3 . 927 7. 72 . 39
Rape-seed oil. . . . . . . . . . . . . . . . . . . . ------ 6 . 915 7. 62 ... 79
Peanut oil----------------------------. (3 . 917 7. 64 . 79
Olive oil, n. S. p. f... . . . . . . . . . . . . . . . . . . . 20 . 917 7. 64 2. 62.
Olive oil, less than 5 gallons, etc. . . . . . . . 30 . 917 7. 64 | 3.93
(3) Alternative provisions have been suggested in the case of olive
oil. It is believed that the present difficulty in classifying olive oil on
the basis of the capacity of the containers can be materially lessened by
either (a) an ad valorem duty on all olive oil regardless of the size of
the container, or (b) by two specific duties, the higher rate to apply to
oil in containers, the two weighing less than 44 pounds, and jº.
rate to apply to the oil when imported in larger containers. The
limit of 44 pounds has been selected after consultation with customs
officers, * believed to represent a fair weight for 5 gallons of oil in
its usual form of container.
(4) “Bean oil” as a synonym of sesame oil evidently should be
“benne” or “benni” oil. Sesame seed is sometimes known as benni
Seed, and the oil is occasionally referred to as benni or benne oil. The
term beam oil has not been found in the literature. “Sesame” was
probably derived from the scientific name for the sesame plant
(Sesamum indicum). Sesame oil is the accepted trade designation
and may be taken as an accurate tariff description.
(5) All combinations and mixtures of vegetable oils have been
omitted from this paragraph, and it is suggested that they be given
Separate treatment. (See infra.) Alizarin assistants and castor-oil
Soaps are treated in a separate paragraph .
(6) The following expressed or extracted vegetable oils are men-
tioned specifically in paragraph 561 of the free list: Coconut, cotton
60 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
Seed, croton, palm, palm kernel, perilla, soya bean, olive oil (rendered
unfit for use as food), and Chinese nut oil. Certain of these oils are
also sold in boiled or oxidized form for use in paints. Consideration
should be given to the advisability of providing for these oils in the
same way as linseed and poppy-seed oils.
(7) This provision includes a group of products used by the textile
industry. These differ materially from the other articles of para-
graph 45 and might well be provided for in a separate paragraph.
They are manufactured from various vegetable and animal oils, in-
cluding castor oil, cottonseed oil, corn oil, and cod oil, by treatment
with chemicals such as sulphuric acid and caustic soda. Other
materials such as tallow and starch are commonly added to certain of
these products and serve to make the products more valuable for
particular textile uses. These so-called alizarin assistants and
soluble greases vary widely in price, depending upon their manufac-
ture and use. A single specific duty would not rest evenly on all the
grades, and an ad valorem rate therefore has certain advantages.
The terms “sulphoricinoleic acid and ricinoleic acid” are omitted
because, while they are chemical constituents of sulphonated castor
oil, the terms are practically never used in the trade, nor do they rep-
resent an accurate scientific description of these materials. “Ali-
Zarin assistant” covers all alizarin assistants, so that the clause “all
other alizarin assistants” need not be repeated.
(8). The phrase “sulphonated castor or other sulphonated vegetable
or animal oils” is introduced because it is believed to be an accurate
commercial, as well as scientific description, of the general class of
which “turkey red oil” is the principal member.
(9) Certain of these products are also used in tanning leather, and
while the words “softening” and “finishing” might presumably
cover this use, it is believed that the addition of the word “tanning”
would clarify the provision.
(10) The process of hardening vegetable or animal oils by the
chemical combination of the oil with hydrogen in the presence of
certain metals such as nickel, has become of industrial importance
in this country only within the last 10 years. By this process the
oils are usually changed from a liquid condition to a solid (at ordi-
nary temperatures) and thus become more useful for the manufac-
ture of lard substitutes and oleomargarine, and to a less extent, in
soap making. There is no provision in the present tariff for hydro-
genated oils and their classification has been the subject of dispute
and litigation. . -
A recent importation of hydrogenated oil, described as a “hardened
oil (fish),” was classified under paragraph 5 as a chemical compound.
The importers' protest claimed that the material was commonly
used in soap making and should therefore enter free of duty under
paragraph 498, or at 3 cents per gallon as fish oil, under paragraph 44.
The Board of General Appraisers (G. A. 8260, T. D. 38031, of 1919)
sustained the claim of the importers for free entry under paragraph
498, but the case was appealed and under a decision of the Court of
Customs Appeals, dated March 10, 1920, the ruling of the board was
reversed and the material was held to be fish oil and dutiable as
such under paragraph 44, at 3 cents per gallon. (10 Ct. Cust. Apple.,
, T. D. 38374, of 1920.)
SCHEDULE A–CHEMICALS, OILS, AND PAINTs. 61.
Paragraph 498 of the free list reads as follows:
Grease, fats, vegetable tallow, and oils (excepting fish oils), not chemically com-
pounded, such as are commonly used in Soap making or in wire drawing, or for stuffing
or dressing leather, not specially provided for in this section.
Under the court decision just cited a hydrogenated vegetable oil
would presumably be classified under the specific provision for the
particular vegetable oil from which it was made, assuming, of course,
that this could be ascertained. There is, however, the possibility
that the material could still be classified under paragraph 498, since
that paragraph specifically excepts fish oils and therefore does not
apply to an importation covered by the court's decision.
The Tariff Commission suggests that a separate provision be made
for hydrogenated or hardened oils and fats in order to obviate the
present difficulty in their classification. The commission further
suggests that the provisions in paragraph 498, excepting that for
vegetable tallow, be abandoned. The greases, fats, and oils which it
was intended to cover are provided for elsewhere and its method of
classification based on use is subject to serious criticism, especially
in the case of the oils, since all of them can be, and most of them are,
commonly uséd in soap making. Many are also used in wire drawing
and in the stuffing and dressing of leather.
(11) There are chemical processes besides hydrogenation by which
oils and fats are modified in character and properties in order to
adapt them to certain special uses. For example, castor and corn
oils are Vulcanized by heating with Sulphur and become gummy
rubber substitutes, which are now largely used in waterproofing
fabrics. Linseed, soya bean, and other oils are oxidized by exposure.
to a current of air and become more valuable for use as drying oils
in paints and varnish. Chlorinated fish oils are used in the produc-
tion of paints, and various vegetable oils are nitrated and mixed with
nitrocellulose (pyroxylin) to form varnishes and enamels for leather.
It is suggested that the oils and fats which have been changed in
composition and properties by chemical processes be given separate
tariff treatment. - - &
(12) It has already been suggested that the provisions for com-
binations of animal oils in paragraph 44 and for combinations of
expressed and extracted oils in paragraph 45 be given separate treat-
ment. The proposed paragraph has been extended to include combi-
nations of mineral oils with or without animal or vegetable oils.
These commodities, which are largely used for lubricating purposes
and to some extent in tanning leather, have been the subject of con-
siderable litigation. They have generally been classified under para-
graph 385 as nonenumerated manufactured articles, but it is believed
that their importance warrants their specific enumeration. The sug-
gested paragraph includes all oils to which other substances except
alcohol have been added, excepting combinations of essential and dis-
tilled oils provided for in paragraph 49, and chemical combinations
of oils provided for separately. In preceding paragraph.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 46.
ACT OF 1909.
39. Peppermint oil, 25 cents per pound.
639. Oils: Almond, amber, crude and
rectified ambergris, anise or anise Seed,
* * * aspic or spike lavender, berga-
mot, * * * caraway, cassia, cinna-
mon, cedrat, chamomile, citronella or
lemon grass, civet, * * * fennel, *, * *
jasmine or jasimine, * * * juniper,
lavender, lemon, limes, mace, neroli or
orange flower, * * * attar of roses,
* * * rosemary or anthoss, * * *
thyme, origanum red or white, valerian;
+ 3 +
21. * * * Fruit ethers, oils, or
essences, $1 per pound; * * * Pro-
vided, That no article of this paragraph
shall pay a less rate of duty than 25 per
centum ad valorem.
3. * * * Distilled oils, essential oils,
* * * and all combinations of the fore-
going * * * not especially provided
for in this section, 25 per centum ad
valorem; * * *
ACT OF 1913.
46. Oils, distilled and essential:
Orange and lemon, 10 per centum ad
valorem; peppermint, 25 cents per pound;
mace oil, 6 cents per pound; almond,
bitter; amber; ambergris; anise or anise
seed; bergamot; camomile; caraway;
cassia; cinnamon; cedrat; citronella and
lemon-grass; civet; fennel; jasmine or
jasimine; juniper; lavender, and aspic or
spike lavender; limes; neroli or orange
flower; Origanum, red or white; rosemary
or anthoss; attar of roses; thyme; and
valerian; all the foregoing oils, and all
fruit ethers, oils, and essences, and
essential and distilled oils and all com-
binations of the same, not specially pro-
vided for in this section, 20 per centum ad
valorem: Provided, That no article con-
taining alcohol shall be classified for
duty under this paragraph.
SUGGESTED RECLASSIFICA-
TION.
Par. . Oils, distilled or essential
Almond, bitter,
anise, (1) ---------------------------- ;
bergamot, ---------------------------- ;
camphor, (2)--------------------------,
Caſa Way, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ;
cassia, ------------------------------- y
cinnamon, --------------------------- ;
citronella, (3). . . . . . . . . . . . . . . . . . . . . . . . . ;
eucalyptus, (2)
geranium, (2)--------------------. . . . . ;
juniper, ----------------------------- ;
lavender, (4) . . . . . . … ;
lemon, ------------------------------- j
lemon-grass, (3).----------------------. y
lime, ------------------------- ; neroli
or Orange flower, - - - - - - - - - - - - - - - - - - - - - - y
Orange, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ;
origanum, --------------------------. ;
palmarosa, --------------------------. ;
patchouli, (2)------------------------. ;
SCHEDULE A-CHEMICALS, orLs, AND PAINTs. 63
Peppermint, . . . . . . . . . . . . . . . . . . . . . . . . . . ;
pine needle, (2). . . . . . . . . . . . . . . . . . . . . . . ;
Vetivert, (2) . . . . . . . . . . . . . . . . . . . . . . . . . . ;
ylang-ylang, (2). . . . . . . . . . . . . . . . . . . . . . . ;
and all other essential and distilled oils
(7) not specially provided for in this sec-
tion, (8);------------------------------.
Provided, That no article mixed or com-
pounded (9) or containing alcohol shall be
classified for duty under this paragraph.
REASONS FOR SUGGESTED RECLASSIFICATION.
Paragraph 46 specifically enumerates a number of essential and
distilled oils which are of practically no commercial importance, being
rarely, if ever, met with in commerce. The following are omitted:
Amber, ambergris, camomile, cedrat, civet, fennel, jasmine or jasi-
mine, mace, and valerian.
The essential oils of ambergris and civet are not known to com-
merce or to science. Ambergris and civet are perfume materials of
animal origin and are provided for specifically in paragraph 49. Oil
of jasmine is not, strictly speaking, an essential or distilled oil, since
it is obtained by the enfleurage process. It would presumably be
included under enfleurage greases and floral essences (paragraph 49).
The other oils mentioned are not of sufficient importance to warrant
their specific enumeration and would fall within the general provision
for “all other essential and distilled oils.”
64 SCHEDULE A-CHEMICALS, OILS, AND PAINTS.
On the other hand, there are important essential oils not men-
tioned specifically in the present act and classified under the general
provision. Those imported in largest amounts are herein given spe-
cific enumeration. (See (2).) *
(1) All anise oil is anise-seed oil and is known as “anise oil” in
COOOIOleI’CG. - .
(2) The principal essential oils not mentioned specifically in para-
graph 46, and whose commercial importance warrants their specific
enumeration (especially if it is desired to impose specific rather than
ad valorem duties), are as follows: º: eucalyptus, geranium,
palmarosa, patchouli, pine needle, Sandalwood, Vetivert, and ylang-
ylang. Camphor and eucalyptus oils have been shown separately
in import statistics for a number of years and are imported in larger
quantities than many or most of the other essential oils now specifi-
cally mentioned in paragraph 46. The other oils herein added are
also imported in considerable quantities. All of these oils, with the
exception of camphor oil, have been held dutiable under the general
provision in paragraph 46 for all other essential and distilled oils.
Camphor oil, ; obtained by a distillation process, is dutiable
at 10 per cent ad valorem under an old Treasury decision (G. A.
4945, T. D. 23116, of 1901).
. (3) The present tariff act contains a provision for citronella and
lemon-grass oils. Since these two oils are different articles of com-
merce, the “and” is omitted in order to give them separate enumera-
tion. -
(4) The same is true of lavender and spike lavender.
“Aspic” appearing in connection with spike lavender is not used
to any extent in this country. It is unnecessary to the description
of spike lavender and is omitted.
(5) Rose oil is known in commerce as “otto of roses” more often
than as “attar of roses.” The provision is changed to read “rose
(oil) or otto of roses.”
(6) “Anthoss,” as a synonym for rosemary oil is obsolete in
American practice; it can not be found in the dictionary or in
literature dealing with essential oils, and accordingly is omitted as
unnecessary to an adequate description of rosemary oil.
(7) The artificial fruit flavors included in the provision “and all
fruit ethers, oils, and essences” are not essential oils, but are usually
synthetic aromatic chemicals. They are not related to the other
articles included in this paragraph, and it is suggested that they be
treated in a separate paragraph, which would also include the flavor-
ing extracts not containing alcohol.
(8) The only other essential or distilled oils specifically mentioned
in the tariff act are birch-tar, cajeput, and juglandium, of paragraph
561 of the free list. There is no article in commerce by the name of
juglandium oil, although the term probably refers to walnut leaf-oil
(from juglans regia). There is no apparent reason why these oils
should be separated from the other essential oils.
, Birch-tar oil is produced in this country. It is of little commercial
importance, and the entire consumption could probably be obtained
from domestic sources. Cajeput is an exotic product, but is also of
minor commercial importance. These products appear to warrant the
same tariff treatment as the other essential and distilled oils.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 65
(9) Many of the essential oils of paragraph 46 are imitated, with
more or less success, by so-called ...; or synthetic products. In
many cases the artificial products are simply aromatic chemicals
identical with the flavoring principle of the oil. For example, the
coal-tar product benzaldehyde is known in the trade as artificial oil of
bitter almonds and is the flavoring principle of bitter-almond oil.
Artificial oil of wintergreen is the coal-tar product methyl salicylate.
In the case of many or most of the other oils, however, the so-called
artificial products are highly manufactured preparations made by
compounding and blending many natural as well as synthetic con-
stituents. Such products as artificial oil of rose or artificial oil of
jasmine may represent very valuable products, some of which can be
converted into finished perfumes by the simple addition of alcohol.
These materials have been classified under the same provision as
natural oils in accordance with G. A. 5535, T. D. 24905, and G. A.
5732, T. D. 25438. Other combinations of floral odors, as mºuguet
concretes, have been held to be mixtures and combinations of essential
oils. Since these materials are more highly manufactured than are the
straight essential oils, it is suggested that they be given separate tariff
treatment and that fº 46 be restricted to natural and uncom-
pounded products. To accomplish this purpose, it is suggested that
a proviso “That no article mixed or compounded * * * shall
be classified for duty under this paragraph” be added, and the phrase
“and all combinations of the same” be omitted and transferred to
paragraph 49.
PARAGRAPH 47.
ACT OF 1909. STU GGE STED RECLASSIFICA-
TION.
41. Opium, crude or unmanufactured,
and not adulterated, containing 9 per Par. . Opium, containing not less
centum and over of morphia, $1.50 per
pound; Opium of the same composition,
dried, powdered, or otherwise advanced than 9.5 per centum of anhydrous mor-
beyond the condition of Crude or unmanu-
factured, $2 per pound; morphia or mor-
phine, Sulphate of, and all alkaloids of phine (1), crude or unmanufactured and
opium. and salts and esters thereof, $1.50
per ounce; cocaine, ecgonine, and all
Salts and derivatives of the Same, $1.50 | not adulterated, . . . . . . . . . . . . . . . . . . . . . . .
per ounce; * * * aqueous extract of
opium, for medicinal uses, and tincture -
of, as laudanum, and other liquid prepa- | . . . . . . . . (2); powdered, or otherwise ad-
rations of opium, not specially provided
for in this section, 40 per centum ad val-
Orem; Opium containing less than 9 per | vanced beyond the condition of crude or
centum of morphia, $6 per pound; but
preparations of opium deposited in
bonded warehouses shall not be removed unmanufactured, and (3) containing 15
therefrom without payment of duties, and
such duties shall not be refunded: Pro-
vided, That nothing herein contained per centum or less of moisture, . . . . . . . . . .
shall be so construed as to repeal or in any
manner impair or affect the provisions of
an Act entitled “an Act to prohibit the . . . . . . . . . . . . . . . . . . ; morphine (4), mor-
importation and use of opium for other
than medicinal purposes,” approved Feb-
ruary 9, 1909. phine sulphate and all opium alkaloids
40650—21—5
66
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
ACT OF 1913.
47. Opium, crude or unmanufactured,
and not adulterated, containing 9 per
centum and over of morphia, $3 per
pound; Opium of the same composition,
dried to contain 15 per centum or less of
moisture, powdered, or otherwise ad-
vanced beyond the condition of crude or
unmanufactured, $4 per pound; morphia
or morphine, Sulphate of, and all alka-
loids of opium, and salts and esters thereof,
$3 per ounce; cocaine, ecgonine, and all
Salts and derivatives of the same, $2 per
ounce; aqueous extract of opium, for
medicinal uses, and tincture of, as
laudanum, and other liquid prepara-
tions of opium, not specially provided
for in this section, 60 per centum ad
valorem; opium containing less than 9
per centum of morphia, $6 per pound;
but preparations of opium deposited in
bonded warehouses shall not be removed
therefrom without payment of duties,
and such duties shall not be refunded:
Provided, That nothing herein contained
shall be so construed as to repeal or in any
manner impair or affect the provisions of
an Act entitled “An act to prohibit the
importation and use of opium for other
than medicinal purposes,” approved
February ninth, nineteen hundred and
Illſle.
and salts, esters, and other derivatives
thereof (5),
cocaine, ecgonine, and salts, esters, and
* * * * * * * * * * *=
other derivatives thereof (6),
* * * * * * * * * * * * * * * * * * * * - ; (7) tincture of
opium, Such as laudanum, and other
liquid preparations of opium, not spe-
cially provided for in this section,
ge ºf s sº e s tº º sº e º sº dº e º gº º ºs s sº sº º sº tº gº ºn ; Opium con-
taining less than 9.5 per centum of anhy-
drous morphine (8), . . . . . . . . . . . . . . . . . . . .
gº º 'º e º ºs º sº gº º (9): Provided, That nothing
herein contained shall be so construed as
to repeal or in any manner impair or
affect the provisions of an act entitled
“An act to prohibit the importation and
use of opium for other than medicinal
purposes,” approved February ninth,
nineteen hundred and nine, as amended
by an act approved January Seventeenth,
nineteen hundred and fourteen (10).
REASONS FOR SUGGESTED RECIASSIFICATION.
(1) The United States Pharmacopoeia in the most recent revision
(ninth edition, issued in 1916) changed the specifications for opium
by stating the morphine content on the basis of anhydrous rather
than crystalline morphine.
This necessitated increasing the
per-
centage from 9 per cent to 9.5 per cent. The suggested paragraph
SCHEDULE A-CHEMICALS, OILS, AND PAINTs. 67
has been modified to correspond to the United States Pharmacopoeia
specifications. The older term “morphia” has been changed to
“morphine,” which has replaced the former designation in commer-
cial and Scientific usage.
(2) By transferring the phrase “containing not less than 9.5 per
centum of anhydrous morphine” so that it directly follows the term
“Opium” it is unnecessary to repeat the rather indefinite phrase
“opium of the same composition” in connection with the description
of advanced or manufactured opium.
(3) The phrase “dried to contain 15 per centum or less of mois-
ture” has been changed to “containing 15 per centum or less of
moisture,” because the question has been raised by the customs
authorities as to whether or not the words “dried to ” required that
the material had been artificially dried. Opium, which in its ordi-
nary process of manufacture has had its moisture content reduced
to less than 15 per cent, should logically be included in the provision
for advanced opium, although it might be contended that the material
was not “dried to contain less than 15 percentum, etc.” This difficulty
can be overcome, it is believed, by omitting the words “dried to.”
(4) In accordance with a previous suggestion (see (1)), morphia
is changed to “morphine” and “morphia, sulphate of ’’ to º
sulphate,” which is the United States Pharmacopoeia designation.
(5) The present law provides for “alkaloids of opium and salts
and esters thereof.” “Thereof.” should refer to alkaloids and not to
Opium, since there are no salts and ester of opium (Merck & Co. v.
United States, 6 Ct. Cust. Appls., 41, of 1915). The term “deriva-
tives” has been added in order to make the provision correspond to
the later provision suggested for cocaine and ecgonine.
(6) The derivatives of the opium alkaloids are described in the
act of 1913 as “salts and esters thereof.” and in the next clause the
derivatives of cocaine and ecgonine are described as “all salts and
derivatives of the same.” It is suggested that the same phraseology
be used in both provisions. (See (5).) -
(7) The Commissioner of Internal Revenue (Int. Rev. T. D. 1982)
and Treasury Department (T. D. 34598) have ruled that aqueous
extract of Opium is Smoking opium and its importation is therefore
prohibited by the act of February 9, 1909, as amended by the act of
January 17, 1914. The provision is therefore unnecessary, as are
also the words “for medicinal uses,” since all imports of opium must
be for medicinal purposes.
(8) “Opium containing less than 9 per centum of morphia”
carries a considerably higher rate of duty than “opium containing
not less than 9 per centum of morphia,’’ presumably because the
Congress wished to discourage the importation of low-grade opium
suitable for the manufacture of Smoking opium. Manufacturers
have urged that the words “containing not less than 9 per centum of
morphia” and “containing less than 9 per centum of morphia” be
Omitted, claiming that the importation and manufacture of smoking
Opium are already adequately prohibited by law. . In the proposed
revision, however, it is assumed that the Congress desires to continue
the present policy of discouraging the importation of low-grade
OTO]llTOl.
(9) The clause “but preparations of opium deposited in bonded
warehouses shall not be removed therefrom without payment of
68
SCHEDULE A*–CHEMICALs, OILs, AND PAINTs.
duties, and such duties shall not be refunded,” has been omitted from
the proposed reclassification, because it is believed that it serves no.
purpose at the present time. It was originally included, in the
paragraph presumably in order to prevent exportation of smoking
opium, which, under the acts of 1909 and 1914, can not be imported,
manufactured, or exported from this country. The only effect of the
provision at present is to require payment of duty on “preparations.
of opium” º withdrawn from warehouse for reexportation and
prohibits its refund. If, however, the merchandise is entered directly
for consumption and is made into pills or other manufactures and the
manufactured product exported, the exporter is allowed the usual
refund of duties under the drawback provision. The provision in
paragraph 47 º only to preparations of opium, and opium itself
can be deposited in bonded warehouse and reexported under the
appropriate regulations without payment of duty. If the Congress.
desires to restrict the exportation of opium and its derivatives in this:
manner, the provision should logically be extended to cover opium.
and all its preparations and derivatives. It is believed, however,
that the intention was only to prevent or restrict the exportation of
opium prepared for smoking, and since this is now regulated by other
laws the provision might be omitted. . .
(10) The “act to prohibit the importation and use of opium for
other than medicinal purposes,” approved February 9, 1909, was.
amended by an act of Congress approved January 17, 1914. (T. D.
3.4221, of 1914.)
PARAGRAPH 48.
SUGGE STEI) RECLASSIFICA-
ACT OF 1909.
TION.
67. Perfumery, including cologne and
other toilet waters, articles of perfumery,
whether in Sachets or otherwise, and all
preparations used as applications to the
hair, mouth, teeth, or skin, such as cos-
metics, dentifrices, including tooth Soaps,
pastes, including theatrical grease paints
and pastes, pomades, powders, and other
toilet articles, all the foregoing; if con-
taining alcohol, or in the manufacture or
preparation of which alcohol is used, 60
cents per pound and 50 per centum ad
valorem; if not containing alcohol, or in
the manufacture or preparation of which
alcohol is not used, 60 per centum ad va-
lorem; floral or flower waters containing
no alcohol, not specially provided for in
Par. . Perfumery, including co--
logne and other toilet waters, articles of
perfumery, whether in sachets or other-
wise, and all preparations used as appli-
\
cations to the hair, mouth, teeth, or skin,
this section, 20 per centum ad valorem.
ACT OF 1913.
48. Perfumery, including cologne and
other toilet waters, articles of perfumery,
whether in Sachets or otherwise, and all
Fº used as applications to the
air, mouth, teeth, or skin, such as cos-
metics, dentifrices, including tooth soaps,
pastes, including theatrical grease paints,
and pastes, pomades, powders, and other
toilet preparations, all the foregoing, if
containing alcohol, 40 cents per pound
and 60 per centum ad valorem; if not
such as cosmetics, dentifrices, (l) tooth.
Soaps, pastes, theatrical grease paints,
pomades, powders, and other toilet pre-
parations, all the foregoing, if contain-
ing alcohol, . . . . . .
cents per pound and
* - * * * s per Centum ad valorem; if not cn-
soHEDULE A–CHEMICALS, OILS, AND PAINTS. 69
containing alcohol, 60 per centum ad ya- taining alcohol, . . . . . . per centum ad
lorem; floral or flower waters containing - .
no alcohol, not specially provided for in -
this section, 20 per centum ad Valorem. || Valorem (2).
Par. . Floral or flower water (3)
containing no alcohol, not specially pro-
vided for in this section, º ------------
* * * * * * * * * * * * * * * * ; bay rum or bay water,
whether distilled or compounded (4),
centum ad valorem.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The word “including” appears three times in paragraph 48,
and is believed to be unnecessary after “dentifrices” and after
“pastes.” If this change is made the words “and pastes” can also
be omitted. .* ©
(2) Floral or flower waters are by-products of the distillation of
certain flower oils, such as Otto of roses and neroli, or oil of Orange
blossoms. They are not in most cases finished articles of perfumery
suitable for use as imported, and are therefore not closely related to
the other articles included in paragraph 48.
It is suggested that they be transferred to a separate paragraph
and combined with the provision for “bay rum and bay water” now
in paragraph 242. - - -
The specific duty in addition to the ad valorem duty on alcoholic
perfumes was presumably for the purpose of counterbalancing the
internal-revenue tax paid on alcohol used by the domestic manufac-
turers. The internal-revenue tax on such alcohol prior to October 3,
1917 (and at the time of the passage of the tariff act of 1913) was
$1.10 per proof gallon; when the tax on alcohol was increased in the
revenue act of 1917 to $2.20 per proof gallon a compensatory duty
was imposed on alcoholic perfumery, and this was continued in the
revenue act of 1918.
Section 600, paragraph C, of the revenue act of 1918, contains the
following provision:
In lieu of the internal-revenue tax now imposed thereon by law there shall be
levied and collected upon all perfumes hereafter imported into the United States
‘containing distilled spirits, a tax of $1.10 per wine gallon, and a proportionate tax at
a like rate on all fractional parts of such wine gallon. Such tax shall be collected by
the collector of customs and deposited as internal-revenue collections, under such
Tules and regulations as the commissioner, with the approval of the Secretary, may
prescribe.
(3), Floral or flower waters containing no alcohol are largely used
for flavoring medicines and have other uses than in perfümery.
70 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
Those containing alcohol would be suitable for use as finished articles
of perfumery and would presumably be included in paragraph 48 as
“toilet waters” containing alcohol.
(4) It is suggested that the provision for bay rum and bay water
in paragraph 242, Schedule H (spirits, wines, and other beverages),
be transferred to Schedule A and included in the provision with floral
waters. In previous tariff acts, at least since the act of 1883, duty
on bay rum was assessed on the basis of the proof gallon—in other
words, in direct proportion to the alcoholic content. Such a provi-
sion, although necessarily difficult to administer, bears evenly on the
different strengths in which the article is imported. The imports of
bay rum, however, have been practically insignificant; the maximum
under the Fº rate of duty was in 1913, and amounted to 684
gallons, valued at $707. The duty in that year was equivalent to
I69.51 per cent ad valorem. It is believed that a compound duty
might overcome the difficulty and permit of easier administration.
The specific duty could be adjusted to counterbalance the internal-
revenue tax on alcohol, while the ad Valorem duty is necessary be-
cause of the wide variation in price, due to the alcoholic content.
Attention should be called to the fact that, in addition to this duty,
imported bay rum is subject to an internal-revenue tax of $2.20 per
proof gallon under the provisions of the revenue act of 1918.
PARAGRAPH 49.
ACT OF 1909. SUGGESTED RECLASSIFICA-
- TION.
489. Ashbergris. (Free.) & g
639. Oils: * * * enfleurage grease, Par. . Ambergris, Castoreum (1),
liquid and solid primal flower essences not
compounded, * * *. (Free.)
º,” crude, in natural pods. civet, and musk, grained or in pods, . . . .
3 ree.
533. Civet, crude. (Free.)
& e º º sº tº ºs º º ºs º º e º ºs e = * * * * * * * * * ; enfleurage
ACT OF 1913.
49. Ambergris, enfleurage greases and greases, floral essences, floral concretes
floral essences by whatever method ob-
tained; flavoring extracts, musk, grained g $º
or in pods, civet, and all natural or syn- 2), and all odoriferous or aromatic sub-
thetic odoriferous or aromatic substances,
preparations, and mixtures used in the
manufacture of, but not marketable as,
perfumes or cosmetics; all the foregoing
not containing alcohol and not specially
provided for in this section, 20 per centum
ad valorem.
stances of vegetable origin by whatever
method obtained, all the foregoing not
mixed and not compounded, and not
specially provided for in this Section (3),
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * ; anethol,
tº sº tº º sº tº º º ºs ºs º ºs º ºs º ºs º ºs º º sº se as º ºs º º is º ºs ; (4), Cit-
SCHEDULE A–CHEMICALS, OILs, AND PAINTs. 71
. . . . . . . . . . . . . . . . . . ; and all natural and
synthetic odoriferous or aromatic chem-
icals, all the foregoing not mixed and not
compounded, and not specially provided
for in this section, . . . . . . . . . . . . - - - - - - - -
tº gº º sº º & E * * * ; all mixtures or combinations
containing essential or distilled oils, or
natural or synthetic odoriferous or aro-
matic Substances (6), . . . . . . cents per
pound, and . . . . . . per centum ad valorem
(7): Provided, That only articles or prod-
ucts not marketable as perfumery, cos-
metics, or toilet preparations, and not
containing alcohol shall be classified for
duty under this paragraph.
72 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
Par. . Flavoring extracts (8) and
natural or synthetic fruit flavors, fruit
esters (9), oils, and essences, all the fore-
going not containing alcohol, and not
specially provided for in this section,
* = & E = * * * * * * * * * * * * * * * * * * * = E = E = *
REASONS FOR SUGGESTED RECIASSIFICATION.
Paragraph 49 provides for a wide variety of articles, many of
which are related only in the sense that they are materials for the
manufacture of perfumes and cosmetics. These widely differing
perfume materials may, however, be divided into four separate and
distinct groups, namely, (a) animal products; (b) floral and other
vegetable products; (c) aromatic chemicals, and (d) mixtures and
compounds of a semifinished nature.
In the suggested reclassification of paragraph 49 these groups have
been given separate treatment, and distinct divisions have been made
between the different groups. Flavoring extracts not containing
alcohol, which are also included in paragraph 49, do not logically
belong to any of the four groups mentioned, and it is suggested that
they be combined with the provision for “the fruit ethers, oils, and
essences” omitted from paragraph 46 in a separate paragraph.
(1) There are only four perfume materials of animal origin—
ambergris from the sperm whale, civet from the civet cat, musk
from the musk deer, and castoreum from the beaver. Ambergris,
civet, and musk are now included in paragraph 49, and are dutiable
at 20 per cent ad valorem; castoreum is exempt from duty under
paragraph 442. Although at one time castoreum was used to some
extent in medicine, the entire supply is now consumed in the manu-
facture of perfumery. Since it does not differ essentially in nature
or in use from the other animal perfume materials, it is suggested
that it be included in this provision, so that all these materials will
receive the same tariff treatment.
(2) The principal floral products used for the manufacture of
alcoholic perfumes are the so-called floral concretes obtained from
flowers by the volatile solvent process. The floral concretes are
now entered as enfleurage greases because it has been held that the
volatile solvent process was a modification of enfleurage. The
enfleurage greases or flower pomades, as they are more correctly
called, are used for the same purpose as the floral concretes and floral
essences, and it is believed that all of these materials should be given
the same tariff treatment. In order to separate this group from the
aromatic chemicals, the words “of vegetable origin by whatever
method obtained” have been introduced in the “all other” provision.
(3) The limiting clause “not mixed and not compounded” is
added in order to exclude the more highly manufactured mixtures
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 73
and compounded preparations which are separately provided for in
the paragraph. (See (6).) -
(4) Aromatic chemicals may be obtained from the volatile oils or
from chemical products. Of the latter class those of coal-tar origin
are the most important. Their manufacture forms a well-defined
branch of the dyestuff industry, since their raw materials are the
same chemicals used for the production of intermediates, dyes, and
synthetic pharmaceuticals. These perfume materials were practically
the only coal-tar products not provided for as a group in the act of
September 8, 1916, although the closely related coal-tar flavors and
individual articles used both for dye and perfume manufacture
(e. g., benzaldehyde, benzyl chloride, and nitro-benzol) were in-
cluded. In the proposed amendment to the act of September 8,
1916 (H.R. 8078), as passed by the House of Representatives Septem-
ber 26, 1919, these synthetic perfume materials were excluded, not-
withstanding that their incorporation in the bill had been considered
in the hearings before the Ways and Means Committee. When this
bill came before the Senate Finance Committee, another effort was
made to extend its provisions to synthetic perfume materials of coal-
tar origin. In the bill as reported by the Finance Committee,
however, the proposed amendment for synthetic perfume materials
was omitted.
The most important aromatic chemicals of coal-tar origin are
artificial musk, benzyl acetate, benzyl benzoate, coumarin, diphenyl
oxide, methyl anthranilate, methyl salicylate, phenylacetaldehyde,
and phenylethyl alcohol. These articles have been mentioned
specifically in the suggested provision for finished products of coal-
tar origin (see par. 21) and a general provision added for “all Syn-
thetic odoriferous or aromatic chemicals” of coal-tar origin.
The following aromatic chemicals of noncoal-tar origin have been
mentioned specifically in paragraph 49: Anethol, citral, geraniol,
heliotropin, ionone, rhodinol, safrol, terpineol, vanillin, followed by
the general provision to cover all other articles of this class.
In order to prevent blended mixtures of these materials entering
at the same rate of duty as the uncompounded articles, it is necessary
to have the limiting clause “all the foregoing not mixed and not
compounded.” -
(5) Vanillin, which is now dutiable at 10 cents per ounce under
paragraph 70, is an aromatic chemical prepared from the essential
oil of cloves, or it can be prepared synthetically from guaiacol, a
coal-tar product. Vanillin does not differ essentially from the other
aromatic chemicals for purposes of tariff classification and it is Sug-
gested that it be transferred to this paragraph.
(6) The last group includes the mixtures and combinations of
aromatic chemicals, with or without the addition of essential oils,
and other natural floral products. The provision for these com-
Rºle. semifinished perfumes would include the so-called “artificial
flower oils” as well as compounded preparations obtained by
combining and blending a number of odors of either natural or
chemical origin. These preparations are more highly manufactured
than the synthetic aromatic chemicals or the natural floral products.
The compounding and blending require considerable technical skill
and experience, and in some cases is carried almost to the stage of
74 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
finished perfume. Many of these preparations may, by the simple
addition of alcohol, become marketable as finished perfumes. Thus
there is a possible means of evading the higher duty imposed by the
Congress on finished perfumes and toilet waters.
(7) The composition of many of these mixtures is known only to
their manufacturers who market them under trade names, which
usually offer little or no clew to their character. In many cases they
are shipped by foreign manufacturers to their branches or agents in
the United States rather than sold in open competitive markets.
Accordingly, many of them have no market value and their actual
value can be ascertained only with extreme difficulty. A compound
duty might prevent loss of revenue by undervaluation.
(8) Flavoring extracts not containing alcohol are dutiable under
paragraph 49 notwithstanding that all of the other articles included
in that paragraph are perfume materials. They might better be com-
bined with the so-called fruit ethers, oils, and essences in a separate
paragraph.
(9) It is impossible commercially to prepare flavoring extracts
from certain common fruits, and it is tº: necessary to reproduce
these flavors by artificial means. This is usually accomplished by the
use of certain organic chemicals, known as “esters” which are pre-
pared from fusel oil (amyl alcohol) and other higher alcohols. In
older nomenclature they were improperly called “fruit ethers” and
“compound ethers” and the former term is still retained in the tariff
law (paragraph 46), although obsolete in scientific and commercial
usage.
There are three possible classifications of fruit esters under the act
of 1913, depending largely upon alcoholic content. “Fruit ethers,
oils, and essences” are mentioned specifically in paragraph 46, along
with the various essential and distilled oils and is limited by the pro-
vision “that no article containing alcohol shall be classified for duty
under this paragraph.” If a fruit, “ether” or ester were imported
containing less than 10 per cent of alcohol it would probably be classi-
fied under the general provision in paragraph 29 for “ethers and
esters of all kinds not specially provided for in this section.” The
rates in paragraph 46 and in paragraph 49 are the same (20 per cent
ad valorem). On the other hand, fruit “ethers” containing more than
10 per cent of alcohol would be dutiable under paragraph 16, which
provides for “ethers * * * fruit essences, all the foregoing and
their combinations * * * if containing 20 per centum of alcohol
or less, 10 cents per pound and 20 per centum ad valorem; containing
more than 20 per centum and not more than 50 per centum of alcohol,
20 cents per pound and 20 per centum ad valorem; containing more
than 50 per centum of alcohol, 40 cents per pound and 20 per centum
ad Valorem.”
The provision for fruit essences in paragraph 46 is apparently out of
place. These materials are closely related to the flavoring extracts,
and it is believed they should receive the same tariff treatment.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 75
PARAGRAPH 50.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
66. Plasters, healing or curative, of
all kinds, and court-plaster, 25 per Par. . Plasters, healing or cura-
centum ad valorem.
ACT OF 1913. tive, of all kinds, and court-plaster, . . . .
50. Plasters, healing or curative, of
all kinds, and court-plaster, 15 per | . . . . . . . . . . . . . . . . . . . . . . . . . .
centum ad valorem.
PARAGRAPH 51.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
42. Baryta, sulphate of, or barytes,
including barytes earth, unmanufac- Par. . Barytes, including barytes
tured, $1.50 per ton; manufactured,
$5.25 per ton.
44. Blanc-fixe, or artificial sulphaſe.9; earth, crude or unmanufactured (1), ....
barytes, and satin white, or artificial y y
sulphate of lime, one-half of 1 cent per
Pound. .......................... ; ground or
ACT OF 1913.
51. Baryta, sulphate of, or barytes, otherwise manufactured (2), . . . . . . . . . . . .
including barytes earth, unmanufac-
tured, 15 per centum ad valorem; manu-
factured, 20 per centum ad Valorem; . . . . . . . . . . . . . . . . . . ; precipitated barium
blanc-fixe, or artificial sulphate of bary-
tes, and satin white, or artificial Sulphate
of lime, 20 per centum ad valorem. Sulphate or blanc fixe (3),
Par. . Satin white and precipi-
tated calcium sulphate (4), . . . . . . . . . .
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The term “sulphate of baryta” is inconsistent with correct
chemical nomenclature and is not used in commerce to designate
barytes. The term “barytes” alone signifies barium sulphate.
Barytes ore is usually known as crude barytes and, therefore, the
term “crude” is used in connection with the unmanufactured
product.
(2) Manufactured barytes is crude barytes which has been ground
and any color present removed by bleaching with sulphuric acid.
This product is sold as “ground barytes.” The term “ground” is,
therefore, used in connection with manufactured barytes.
76 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
(3) Precipitated barium sulphate is a more accurate description of
blanc fixe than artificial sulphate of barytes. Barytes refers to
barium Sulphate, and, therefore, the term “sulphate of barytes” is
redundant.
(4) Satin white and artificial calcium sulphate are used inter-
changeably in paragraph 51, but they are distinct articles of com-
merce. Satin white is a gelatinous aluminum hydroxide mixed with
calcium sulphate and some free lime. It is produced by precipi-
tating a solution of aluminum sulphate with an excess of lime. Pre-
cipitated calcium sulphate is obtained by precipitation from a solu-
tion of calcium chloride by means of sodium sulphate. Satin white
and precipitated calcium sulphate have no relation (other than
being pigments) to the other articles in this paragraph, and, there-
fore, a separate paragraph is suggested.
PARAGRAPH 52.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION. *
43. Blues, such as Berlin, Prussian,
Chinese, and all others, containing ferro- Par. . Blue pigments containing
cyanide of iron, in pulp, dry or ground
in or mixed with oil or water, 8 cents per
pound. iron ferrocyanide or iron ferricyanide (1),
50. Ultramarine blue, whether dry, in
pulp, or mixed with water, and wash
blue containing ultramarine, 3 cents per in pulp, dry, or ground in or mixed with
pound.
ACT OF 1913. oil or Water, . . . . . . . . . . . . . . . . . . . . . . . . . . ;
52. Blues, such as Berlin, Prussian,
Chinese, and all others, containing ferro- ultramarine blue, dry, in pulp, or ground
cyanide of iron, in pulp, dry or ground in
or mixed with oil or water, 20 per centum *
ad valorem; ultramarine blue, whether in or mixed with oil or water, and wash
dry, in pulp, or ground in or mixed with
oil or Water, and wash blue containing
ultramarine, 15 per centum ad valorem. and bleachers’ (2) blues containing ultra-
marine, iron ferrocyanide, or iron ferri-
cyanide (2) ---------------------------
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The blue pigments containing as their essential constituent
iron ferrocyanide or iron ferricyanide are sold under various trade
names. Those in paragraph 52 are only a few of the names under
which these blue pigments are sold. There is no special reason why
these names should be continued.
(2) “Bleachers' blue” containing iron ferrocyanide was held duti-
able as a nonenumerated manufactured article under paragraph 385.
As it is similar in composition to other blues in this paragraph it has
been added.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 77
PARAGRAPH 53.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
45. Black, made from bone, ivory, or &
vegetable substance, by whatever name Par. . Bone black, ivory black,
known, including bone black and lamp-
black, dry or ground in oil or water, 25
per centum ad valorem. gaS black, lampblack, and all other
ACT OF 1913. -
black pigments, by whatever name
53. Black pigments, made from bone,
ivory, or vegetable substance, by what- º - -
ever name known; gas black and lamp- known, dry or ground in or mixed with
black, dry or ground in or mixed with
oil or water, 15 per centum ad valorem. . . - ©
oil or water, and not specially provided
for in this section, (1) . . . . . . . . . . . . . . . . . .
• * * * - - - - - - - - -
REASONS FOR SUGGESTED RECLASSIFICATION.
The only problem in tariff classification in connection with black pig-
ments is in the case of bone black. Paragraph 423 of the free list pro-
vides for “Bones * * * burned # * * (and) ground * * *
but not otherwise manufactured,” while paragraph 447 (also on the
free list) contains a provision for “bone char or bone black not suita-
ble for use as a pigment.” The latter type of bone black is used for
decolorizing sugar and other solutions, and differs from pigment bone
black only in fineness of grinding. For pigment purposes, bone black
should be sufficiently fine that all of it will pass through a 200-mesh
screen. Some paint grinders' specifications require that less than 1
per cent shall be retained on a 350-mesh screen.
Sugar refiners prefer 16 to 30 mesh, although somewhat finer mate-
rial is used for filtering certain chemicals. The wording in para-
graph 447 “not suitable for use as a pigment” has been the subject
of litigation, and the decisions thereunder are apparently in conflict.
Such classification based on suitability for use is open to serious
criticism. It has been suggested therefore, (see par. 447 (2)), that the
phrase be omitted, and that the distinction be made solely on the basis
of fineness, as shown by screen analysis.
(1) The only change suggested in paragraph 53 is to extend the
provision to cover all black pigments. The distinction between pig-
ment bone black and decolorizing bone black is effected by limiting the
rovision in paragraph 53 to bone black not specially provided for,
one black would not be classified under paragraph 447 unless 75 per
cent or more is retained on a 100-mesh screen. All bone black suita-
ble for use as a pigment will pass through a 100 mesh, and any sample
of which 25 per cent would pass through such a screen would be too
fine to be used for decolorizing purposes.
78 SCHEDULE A–CHEMICALs, OILs, AND PAINTs.
PARAGRAPH 54.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
46. Chrome yellow, chrome green, and {
all other chromium colors in the manu- Par. . Chrome yellow, chrome
facture of which lead and bichromate of
potash or Soda are used, in pulp, dry, or
ground in or mixed with oil or water, 4; green, and other colors containing chro-
cents per pound.
ACT OF 1913. mium (1), in pulp, dry, or ground in or
54. Chrome yellow, chrome green, and
all other chromium colors in the manu- mixed with oil or water, . . . . . . . . . . . . . . . .
facture of which lead and bichromate of
potash or Soda are used, in pulp, dry, or
ground in or mixed with oil or water, 20 ! . . . . . . . . . . . . . . .
per centum ad Valorem.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The chrome colors dutiable under paragraph 54 are limited to
those in the manufacture of which lead and bichromate of potash or
soda are used. Although these are the principal chromium colors,
there are other chromium pigments which do not require lead and
bichromate of potash or soda in their manufacture. For example,
oxide of chromium containing no lead or potassium bichromate has ,
been declared dutiable as a color under paragraph 63 rather than as
chrome green under paragraph 54. (Abstract 37081, of 1914.)
Zinc chromate or “zinc yellow” is another important chromium color.
There is no apparent reason why all chromium colors should not
receive the same tariff treatment, as the chromium content is the
item of chief value. Therefore, the wording “in the manufacture of
which lºad and bichromate of potash or soda are used’ has been
omitted.
PARAGRAPH 55.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
47. Ocher and ochery earths, Sienna
and Sienna earths, and umber and umber Par. . Ochers, Siennas, and um-
earths, not specially provided for in this
section, when crude or not powdered,
washed or pulverized, one-eighth of 1 | bers (1), . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;
cent per pound; if powdered, washed or g
pulverized, three-eighths of 1 cent per
pound; if ground in oil or water, 1 cent iron-oxide and iron-hydroxide pigments
per pound.
ACT OF 1913. not specially provided for in this section
55. Ocher and ochery earths, Sienna
and Sienna earths, and umber and umber (2), . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
earths, 5 per centum ad valorem; Span-
ish brown, venetian red, Indian red, and
colcothar or oxide of iron, not specially
provided for in this section, 10 per centum
ad valorem.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 79
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The term “earths,” used in connection with ocher, sienna, and
umber, has been omitted because these articles are earths or earthy
material and the terms ocher, Sienna, and umber are the designations
used in commerce.
(2) The pigments provided for by name in paragraph 55 as
“Spanish brown, Venetian red, Indian red, and colcothar or oxide
of iron,” owe their coloring properties to either iron oxide or iron
hydroxide. These pigments are derived both from natural and
artificial sources. The distinction in the pigment industry between
iron oxide of natural origin and those obtained artificially is not
sharp. The nomenclature of these red pigments is involved, and
the names are descriptive of the shade rather than of origin, method
of production, or chemical composition. Spanish brown and colcothar
are names now obsolete in the trade in pigments; venetian red is
applied to a light red iron Oxide pigment in contrast to darker iron
oxide pigments, usually known as Indian red. Other authorities
limit the term to pigments composed of a mixture of iron oxide and
calcium sulphate. Indian red is used loosely to describe an iron oxide
pigment, artificial or natural, usually containing a high percentage
of ferric oxide, generally above 80 per cent. As there is no clear line
of demarcation in the trade between these various similar pigments,
it is suggested that they be provided for as “iron-oxide and iron-
hydroxide pigments” n. S. p. P
PARAGRAPH 56.
ACT OF 1909. SUGGE STED RECLASSIFICA-
- TION.
58. Lead: * * * Litharge, 24 cents
per pound. Par. . Lead pigments: Litharge,
48. Orange mineral, 3} cents per pound.
49. Red lead, 23 cents per pound.
53. White lead, and white pigment orange mineral, red lead, white lead, and
containing lead, dry or in pulp, or ground -
or mixed with oil, 2} cents per pound. -
all pigments containing lead, dry or in
ACT OF 1913. -
56. Lead pigments: Litharge, Orange pulp, or ground in or mixed with oil or
mineral, red lead, white lead, and all
pigments containing lead, dry or in pulp, -
and ground or mixed with oil or water, water, not specially provided for in this
not specially provided for in this section,
25 per centum ad valorem.
section, ------------------------------
PARAGRAPH 57.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
58. Lead: Acetate of, white, 3 cents per
pound; brown, gray, or yellow, 2 cents Par. . Lead (1): Acetate, white,
per pound; nitrate of, 2} cents per
pound; * * *
' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ; acetate,
80
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
ACT OF 1913.
57. Lead, acetate of, white, and nitrate
of, 13 cents per pound; acetate of, brown,
gray, or yellow, 1 cent per pound; all
other lead compounds not specially pro-
vided for in this section, 20 per centum
ad valorem.
brown, gray, or yellow, . . . . . . . . . . . - - - - -
- - - - - - - - - - - - ...; arsenate (2), . . . . . . . . . . º-
nitrate,
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ; resinate
all other lead compounds not specially
provided for in this section, . . . . . . . . . . . *
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The general heading “lead” has been given this paragraph
and the various lead compounds arranged alphabetically within the
paragraph.
(2) Lead arsenate is an important lead compound, which is used
largely as an insecticide.
undoubtedly small.
. There is no record of imports, but they are
º all. . This compound is of more importance than
lead nitrate, which is now mentioned in paragraph 57.
It is there-
fore suggested that arsenate be mentioned by name in this paragraph.
(3) Lead resinate is an important lead salt used as a drier in the
manufacture of paints and warnishes.
Imports in 1914 amounted to
117,757 pounds, which is comparable with the imports of lead acetate
during the same year.
in the proposed paragraph.
Lead resinate has been given specific mention
PARAGRAPH 58.
ACT OF 1909.
51. Varnishes, including so-called gold
size or japan, 25 per centum ad valorem:
* * * spirit varnish containing 5 per
centum or more of methyl alcohol, 35
cents per gallon and 35 per centum ad
valorem; spirit varnish containing less
than 5 per centum of methyl alcohol.
$1.32 per gallon and 35 per centum ad
valorem. º
ACT OF 1913.
58. Varnishes, including so-called gold
size or japan, 10 per centum ad valorem;
Provided, That spirit varnishes containing
less than 10 per centum of methyl alcohol
of the total alcohol contained therein
shall be dutiable at $1.32 per gallon and
15 per centum ad Valorem.
SUGGESTED RECLASSIFICA-
TION.
Pair. . Spirit varnishes containing
less than 5 (1) per centum of methyl
alcohol, . . . . . .
varnishes containing 5 per centum or
more of methyl alcohol (3), . . . . . . . . . . . *
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 81
gº tº dº º sº tº e º ºs e is tº as tº e g º º ; and other varnishes
not specially provided for in this section
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The duty on spirit warnishes made from grain alcohol has
uniformly been higher than on those made from denatured alcohol
in order to counterbalance the internal-revenue tax which must be
paid on grain alcohol. In the act of 1913 the division is specified as
less than 10 per cent of methyl alcohol. This division at the time of
the passage of the act of 1913 was in accordance with denaturing
formulae in use in the United States. Since then, however, the
quantity of methyl alcohol which is required to be added to 100
gallons of grain alcohol (190 proof) to denature it has been reduced
from 10 gallons to 5 gallons. [Formula No. 1, Regulations No. 61,
U. S. Internal Revenue.] In other words, at the present time de-
natured alcohol for the manufacture of spirit warnishes contains
somewhat less than 5 per cent by volume of methyl alcohol. The
division between spirit varnishes made from denatured alcohol and
those made from grain alcohol has, therefore, been made at 5 per
cent of methyl alcohol to correspond to the present denaturing
formula of the Bureau of Internal Revenue. *
(2) Since the passage of the act of 1913 the internal-revenue tax
on grain alcohol for other than beverage purposes has been increased
from $1.10 to $2.20 per proof gallon by the act of October 3, 1917, as
amended by the revenue act of 1918. It is evident that the duty on
this class of spirit varnish should be adjusted so as to compensate
for the increase in the internal-revenue tax on grain alcohol.
(3) A separate provision is provided for spirit warnishes contain-
ing 5 per cent or more of methyl alcohol because spirit varnishes
should logically bear a different rate of duty than the more expensive
oil warnishes. -
(4) Gold size is a varnish used in preparing surfaces on which gold
leaf is to be applied, while the term japan refers to a kind of varnish
in the drying of which heat is applied in order to expel the solvents
and to fuse the residual layer of resin, so as to give a uniform glass-
like surface. There is no apparent reason why these two kinds of
varnish should receive special mention over others of more impor-
tance commercially. The phrase “including so-called gold size and
japan” has accordingly been omitted and the phrase “other var–
nishes not specially provided for in this section” has been inserted.
40650—21—6 - ~~
- 82 scFIEDULE A–CHEMICALs, oils, AND PAINTs.
PARAGRAPH 59.
ACT OF 1909. SUGGESTED RECLASSIFICA.
TION.
52. Vermilion reds, containing quick- -
silver, dry or ground in oil or water, 10 Par. . Vermilion reds containing
cents per pound; when not containing
quicksilver but made of lead or contain-
ing lead, 4 cents per pound. quicksilver, dry or ground in or mixed
ACT OF 1913. r
- - with oil or Water (1), . . . . . . . . . . . . . . . . . .
59. Verrmilion reds, containing quick- . -
silver, dry or ground in oil or water, 15
per centum ad valorem; when not con-
taining quicksilver but made of lead or
containing lead, 25 per centum ad va-
lorem. . .
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The present language in paragraph 59, “when not containing
uicksilver or made of lead or containing lead,” is in conflict with
the language in paragraph 54, “all other chromium colors in the
manufacture of which lead and bichromate of potash or soda are
used.” The only pigment which could possibly be classified under
this provision in paragraph 59 is “American vermilion.” This pig-
ment is a basic lead chromate distinctly a chromium color and within
the language of paragraph 54. “Vermilionette” is a coal-tar lake
which comes within the act of September 8, 1916. The provision in
paragraph 59 for vermilion reds not containing quicksilver has
therefore been omitted.
PARAGRAPH 60.
ACT OF 1909. SUGGESTED RECLASSIFICA-
- TION.
54. Whiting and Paris white, dry, one-
fourth of one cent per pound; ground in (Paragraph 60 has been combined with
oil, or putty, one-half of one cent per | paragraph 15, Supra.)
pound.
13. Chalk, when ground, bolted,
* * * J cent per pound; * * *.
ACT OF 1913.
60. Whiting and Paris white, dry, and
chalk, ground or bolted, one-tenth cent
per pound; whiting and Paris white,
ground in oil, or putty, 15 per centum
ad valorem.
PARAGRAPH 61.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
55. Zinc, oxide of, and white pigment
containing zinc, but not containing lead, Par. . Zinc oxide (1) and leaded
dry, 1 cent per pound; ground in oil, 1%
cents per pound; sulfid of zinc white, or
white sulphide of zinc, 1} cents per zinc oxides containing not more than 25
pound; * * *.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
83
ACT OF 1913.
61. Zinc, oxide of, and pigments Con-
taining zinc but not containing more
than 5 per centum of lead, ground dry,
10 per centum ad valorem; when ground
in or mixed with oil or water, lithopone
(2) per centum of lead, ground dry,
s = e º sº a º ºs e º sº me e º sº e º ºs º ºs e º 'º - * * * * * * ; ground
in or mixed with oil or water,
and white sulphide of zinc, 15 per centum
ad valorem. ...................... ; lithopone (3),
and other combinations or mixtures of
zinc sulphide and barium sulphate (4),
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The word “of” has been omitted in paragraph 61, and the term
“zinc oxide” used, to agree with similar changes elsewhere.
(2) Paragraph 61 limits other pigments containing zinc to those not
containing more than 5 per cent of lead. Leaded zinc oxides, an im-
portant group of zinc oxide pigments, contain, in the form of lead
sulphate, between 3 and 25 per cent of lead (Pb). These pigments
are in chief value of zinc oxide and sell from about 1 to 2 cents less
than lead-free zinc oxide. Only one of the leaded zinc oxides con-
tains less than 5 per cent of lead and would therefore be classified in
paragraph 61. The others contain more than 5 per cent of lead and
would be dutiable under paragraph 56 as pigments containing lead,
at 25 per cent ad Valorem instead of at 10 per cent ad Valorem under
paragraph 61. There is no apparent reason why all zinc oxide pig-
ments should not be included in one classification. The limiting lead
content of paragraph 61 has been increased from 5 per cent to 25
per cent of º so as to include all commercial leaded zinc oxides.
The phrase “leaded zinc oxides” has been substituted for the words
“pigments containing zinc.” in order to exclude zinc chromate, which
is in chief value of chromium and is covered by the suggested language
for paragraph 54. As the zinc pigments of any commercial impor-
tance are mentioned specifically in the suggested reclassification, there
is no need of a provision for all other zinc pigments.
(3) Lithopone, a mixture of zinc sulphide and barium sulphate pro-
duced by simultaneous precipitation of these two ingredients, when
first placed on the market was known as “white sulphide of zinc.” or
“zinc sulphide white.” These terms are no longer used in connection
with lithopone, and customs authorities are classifying only zinc sul-
phide under the term “white sulphide of zinc.” As zinc sulphide is
used chiefly for other purposes than as a pigment it has been trans-
ferred to paragraph 62, which covers other zinc compounds.
(4) Lithopone in the United States is a standard product containing
º 30 per cent zinc sulphide and 70 per cent of barium
sulphate. In Europe, however, lithopone is made with a content of
Zinc sulphide varying from about 11 to 42 per cent. As these pig-
ments are sold under various trade names and to prevent evasion of
the duty intended for lithopone, the phrase “and other combinations
or mixtures of zinc º and barium sulphate” has been added.
84
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 62.
ACT OF 1909.
55. * * * Chloride of zinc and sul- |
phate of zinc, 1 cent per pound.
ACT OF 1913.
62. Zinc, chloride of and sulphate of,
one-half cent per pound.
SUGGESTED RECLASSIFICA-
TION. :
Par. . Zinc chloride (1),
; zinc sulphate (1),
• * * * * = * * * * * * * * * * * * * * *
gº
; and zinc
Sulphide (2),
REASONS FOR RECLASSIFICATION.
(1) The word “of” has been omitted and the phrasing “zinc
chloride” adopted in paragraph 62, to agree with similar changes
elsewhere.
(2) Zinc sulphide has been transferred from paragraph 61 to this
paragraph because it is used chiefly for purposes other than as a
pigment.
PARAGRAPH 63.
ACT OF 1909.
51. * * * Enamel paints made
with varnish, 35 per centum ad valo-
; * * * ,
56. All paints, colors, pigments, stains,
lakes, crayons, including charcoal crayons
or fusains, Smalts and frostings, whether
crude or dry or mixed, or ground with
water or oil or with solutions other than
oil, not utherwise specially provided for
in this section, 30 per centum ad valorem;
all glazes, fluxes, enamels, and colors
used only in the manufacture of ceramic,
enameled, and glass articles, 30 per
centum ad valorem; all paints, colors,
and pigments, commonly known as artists’
paints or colors, whether in tubes, pans,
cakes or other forms, 30 per centum ad
valorem.
ACT OF 1913.
63. Enamel paints, and all paints, col-
ors, pigments, stains, crayons, including
charcoal crayons or fusains, smalts, and
frostings, and all ceramic and glass fluxes,
glazes, enamels, and colors, whether
crude, dry, mixed, or ground with water
or oil or with solutions other than oil, not
specially provided for in this section, 15
per centum ad valorem; all paints, colors,
and pigments commonly known as art-
ists’ paints or colors, whether in tubes,
pans, cakes, or other forms, 20 per centum
ad valorem; all color lakes, whether dry
or in pulp, not specially provided for in
this section, 20 per centum ad valorem.
SUGGESTED RECLASSIFICA-
TION.
Par. . Paints, colors, and pig-
ments (1) commonly known as artists’
paints or colors, whether in tubes, pans,
/
Cakes, or other forms,
Par. . Pigments, colors, stains,
and paints (2), including enamel paints,
whether dry, mixed, or ground in or
mixed with water, oil, or Solutions other
than oil, not Specially provided for in
this section (8)
SCHEDULE A–CHEMICALS, OILS, AND PAINTs. 85
(It is suggested that the two fol-
lowing paragraphs be transferred to
other schedules.) -
Par. e (4) Smalts, frostings, and
all ceramic and glass colors, fluxes, glazes,
and enamels, all of the wins in what-
ever form, .. --------------------------
Par. . . (5) crayons, including
charcoal crayons or fusains, . . . . . . . . . . . .
REASONS FOR SUGGESTED RECLASSIFICATION.
Paragraph 63 of the act of 1913 covers several classes of products
which #. no relation to each other. It is suggested that this
paragraph be divided into four * paragraphs, two of which
should be retained in Schedule A, one other, relating to fluxes,
enamels, etc., transferred to Schedule B, and the fourth, relating to
crayons, transferred to Schedule N.
(1) It is suggested that the provision for artists’ paints and colors
be made a separate paragraph. There has been conflict between the
provision for artists’ colors in paragraph 63 and the provision for toys
in paragraph 342. Small wooden paint bowes containing water colors,
crayons, brushes, and drawing materials, called water-color boxes,
and reasonably adapted for other purposes than for the amusement
of children, were held dutiable as artists’ colors under this paragraph
rather than as toys under paragraph 342. (Tllfelder & Co. v. United
States, 7 Ct. Cust. Appls., 53, of 1916.) By agreement between the
Government and importers this decision is not applied to paints or
colors in wooden or paper boxes valued at less º 100 marks per
gross, or in metal boxes valued at less than 25 marks per gross, or the
equivalent in each case in francs. They are classified as toys.
(T. D. 37168, of 1917.) This difficulty could be obviated by making
the ad Valorem duty the same for these two provisions.
(2) The arrangement has been changed so as to bring pigments and
colors together which are used in the manufacture of paints and stains.
(3) This suggested paragraph is the general provision now in para-
graph 63, which covers enamel paints and all paints, colors, stains,
and pigments, not specially provided for. It is placed at the end of
the paragraphs relating to paints and pigments.
It is suggested that the provision for color lakes be omitted. By
far the most important class of color lakes are those derived from
coal tar. Coal-tar lakes are provided for in the act of September 8,
1916, and in H. R. 8078, which passed the House of Representatives
On September 26, 1919. They have been provided for with other
86 scHEDULE A–CHEMICALS, OILS, AND PAINTS.
coal-tar products in the suggested reclassification. Color lakes other
than coal-tar are covered by the provision for “colors” not specially
provided for in this paragraph.
(4) The provision for smalts, frostings, and ceramic and?'glass
fluxes, glazes, enamels, and colors in paragraph 63 should be consid-
ered in connection with paragraph 96 of Schedule B and paragraph
493 of the free list. These three provisions cover very similar
ceramic products used in the manufacture of glass, pottery, and
enamel ironware. There is no apparent distinction between fusible
enamels provided for in paragraph 96 and ceramic enamels in para-
graph, 63. All enamels are fusible. White glass enamels for watch
and clock dials provided for in paragraph 493 of the free list are
similar in composition to any other glass or ceramic enamel. Any
attempt to distinguish enamels by application or use is subject to
difficulties in administration. There is no apparent reason why all
ceramic and glass enamels regardless of use, should not receive the
same tariff treatment—either free or dutiable. It is therefore recom-
mended that those materials be provided for in a separate paragraph,
if to be dutiable in paragraph 96 of Schedule B. Because of the wide
range in value of these products an ad valorem duty is logical. The
following provision to cover these products should replace the wording
“fusible and glass enamel,” n. S. p. f. in paragraph 96.
“Smalts, frostings, and all ceramic º glass colors, fluxes, glazes,
and enamels, all of the foregoing in whatever form, - - - - --.”
(5) The provisions for crayons and fusains might well be trans-
ferred to Schedule N, as these products have no relation to other
products in Schedule A. -
PARAGRAPH 64.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
61. * * * Potash, * * *; chlorate of,
2 cents per pound. Par. . Potassium (1): Bicarbon-
60. Bichromate and chromate of pot-
ash, 2} cents per pound.
63. Nitrate of potash, or saltpeter, re- ate (2), . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;
fined, one-half º 1 cent per pound.
64. Prussiate of potash, red, 8 cents | .
per, pound; yellow, 4 cents per pound; bromide (3), . . . . . . . . . . . . . . . . . . . . . . . . . .
ACT OF 1913. - chromate and dichromate, . . . . . . . . . . . . .
64. Potash: Bicarbonate of, refined,
and chlorate of, one-half cent per pound; - - - - - - - - - - - - - ; chlorate and perchlorate
chromate and bichromate of, 1 cent per -
pound; nitrate of, or Saltpeter, refined, .
$7 per ton; permanganate of, 1 cent per (4), . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; ferri-
pound; prussiate of, red, 2 cents per
pound; yellow, 1} cents per pound.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 87
iodide (6), --------------------------- ;
nitrate or Saltpeter, refined, . . . . . . . . . .
- - - - - - - - - - - - - - - - - - - - ; permanganate, ..
º gº e º e º ſº & eº & sº * * * * * * * * * * * * * * * * & ©
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The term “potash” has been loosely and inaccurately used in
designating all potassium compounds. At the present time “potash,”
strictly speaking, refers to potassium oxide, and is also commonly
used to designate potassium carbonate. The best and most accurate
method of naming these salts is to use the name of the metal—
potassium—followed by a word designating the acid combined with
the metal. For example, potassium chlorate is preferable to chlorate
of potash. This method of naming the commodity is universal in
chemical literature, and is generally used in commerce.
(2) In paragraph 64 the provision for bicarbonate of potash (more
properly designated as potassium bicarbonate) is restricted to the
refined grade. The crude grade has no specific provision and is
dutiable as a chemical compound or salt under paragraph 5 at 15
per cent ad valorem, which is more than half a cent per pound on
the refined. In the suggested paragraph potassium bicarbonate is
mentioned without restriction as to grade.
(3). It is suggested that potassium bromide be mentioned spe-
cifically, as it is an important form in which bromine is sold.
(4) Potassium perchlorate has been added to the provision for
potassium chlorate. These two chemical compounds are similar in
chemical properties and in use.
(5) The correct chemical name for red prussiate of potash is potas-
sium ferricyanide, and for yellow prussiate of potash, tºº.
ferrocyanide. Accordingly, the chemical names for these two
products are added, and since the trade names are still used, red
prussiate of potash and yellow prussiate of potash are retained in the
paragraph. -
(6) Potassium iodide has been transferred to this paragraph from
paragraph 38, where it is provided for along with iodoform.
NoTE.—Potassium compounds free of duty are provided for in paragraph 580, act
of 1913.
PARAGRAPH 65.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
Not specially provided for.
ACT OF 1913.
Par. , Chemical compounds, mix-
65. Salts and all other compounds and tures, and salts (1), of which (2) gold,
mixtures of which bismuth, gold, plati-
num, rhodium, silver, or tin constitute -
the element of chief value, 10 per centum platinum, rhodium, or silver constitutes
ad valorem.
88 SCHEDULE A-CHEMICALS, OILS, AND PAINTS.
(3) the element of chief value, . . . . . . . .
Par. . Tin bichloride, tin tetra-
chloride, and all other compounds, mix-
tures, and salts of which tin constitutes
the element of chief value (4), . . . . . . . .
REASONS FOR SUGGESTED RECLASSIFICATION.
With the exception of bismuth, and tin salts, the compounds pro-
vided for in this paragraph are those of precious metals. Bismuth
and tin can not be regarded as rare or precious metals. The effect
of this provision is to make the salts of these metals dutiable at a
lower rate (10 per cent ad Valorem) than other chemical salts not
specially provided for in paragraph 5 (15 per cent ad valorem).
(1) The language has been changed in order to make it similar
to that used in paragraph 5 to describe “all other chemical * * *
compounds, * * * mixtures, and salts.”
(2) The word “bismuth” has been omitted from this paragraph.
Bismuth is not a precious metal and its salts are used ; for
medicinal purposes. Bismuth salts have been provided for in a
separate paragraph to follow paragraph 14, which provides for mer-
cury salts, also used primarily as medicinals. -
(3) The word “constitute,” in paragraph 65, should be constitutes.
(4) Tin can not be considered a rare or precious metal. The
principal salts of tin are tin bichloride, a crystalline product, and
tin tetrachloride, which is a liquid. These tin salts are used for
weighting silk and in dyeing textiles. They are important industrial
chemicals and are produced by recovering tin from scrap tin plate. It
is suggested that tin compoundsbeprovided forin a separateparagraph.

PARAGRAPH 66.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
69. Castile soap, 1% cents per pound;
medicinal or medicated soaps, 20 cents Par. . Soap (1): Castile (2), . . . .
per pound; fancy or perfumed toilet
soaps, 50 per centum ad valorem; all
other soaps not specially provided for in - - - - - - - - - - - - - - - - - - - - - - - - - - ; toilet (3),
this section, 20 per centum ad valorem. -
ACT OF 1913. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ; all other
66. Soaps: Perfumed toilet soaps, 30
per centum ad valorem; medicinal Soaps,
20 per centum ad valorem; castile Soap,
and unperfumed toilet Soap, 10 per vided for in this section (4), . . . . . . . . . .
centum ad valorem; all other Soaps and
soap powder not specially provided for
in this section, 5 per centum ad Valorem. . . . ---------- - - - - - - - - - - - - -
soap and soap powder not specially pro-
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 89
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The heading for this paragraph has been changed from “Soaps”
to “Soap * to avoid repetition.
(2) Specific mention has been retained for castile soap, which in
the past constituted about 50 per cent of the total imports of all
kinds of soap. There is apparently no difficulty as to determinin
what is castile soap, and therefore practically no litigation has resulte
from distinguishing castile from other soaps.
(3) The #. of toilet soaps into perfumed and unperfumed has
been eliminated in the proposed paragraph, because it involves admin-
istrative difficulties. The majority of soap stocks have an unpleas-
ant odor, which prevents their use for toilet purposes without the
addition of a perfume material, and with a few exceptions all toilet
soaps have a perfume material added, either to neutralize the odor
of the soap stock or to impart to the soap a decidedly pleasant Odor.
The distinction can be eliminated without affecting the intent of para-
graph 66 and at the same time will prevent litigation.
(4) Medicinal soap has been defined to be soap which has in its
composition substances claimed to be beneficial to the human skin
or which are to be used on the human body for remedial purposes.
(G. A. 2056, T. D. 13951, of 1893; G. A. 5531, T. D. 24901, of 1904;
Abstract 37688, of 1915.) These would be included in the provision
“all other soap and soap powder.” Owing to the variation in value
of soap which would be classified under this provision, an ad Valorem
rate of duty would have advantages.
PARAGRAPH 67.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
70. Bicarbonate of soda, or supercar-
bonate of soda, or saleratus, and other Par. . Sodium (1): Bicarbonate
alkalies containing 50 per centum or
º of hº of soda, five-eighths
of 1 cent per pound. r bakin 2). --------------------
71. Bichromate and chromate of soda, Or b g Soda (2),
13 cents per pound. * *
11. Borax, 2 cents per pound; * * * | . . . . . . . . . . ; borate or borax refined,
72. Crystal carbonate of soda, or con-
centrated Soda crystals, or monohydrate,
or sesquicarbonate of Soda, one-fourth of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; bromide
1 cent per pound; chlorate of soda, 1} y
cents per pound. *
t 77. Sulphate of Soda, * * * $1 per (3), ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . ;
OD.
73. Hydrate of, or caustic soda, one-
half of 1 cent per pound; nitrite of soda Carbonate, hydrated, or Sal soda (4),
and yellow prussiate of Soda 2 cents per
pound; Sulphide of Soda containing not s
more than 35 per centum of Sulphide of | . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; carbon-
Soda, and hyposulphite of Soda, three-
eighths of 1 cent * pound; Sulphide of
$9da, concentrated, or containing more |ate, monohydrated (4), .................
than 35 per centum of Sulphide of soda,
three-fourths of 1 cent per pound. -
74. Sal Soda, or Soda crystals, not con- | . . . . . . . . . . . . . . ; Chlorate, --------------.
centrated, one-sixth of 1 cent per pound. -
90
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
ACT OF 1913.
67. Soda: Benzoate of, , 5, cents per
#. chlorate of, and nitrite of, one-
alf cent per pound; bicarbonate of, or
supercarbonate of, or Saleratus, and other
alkalies containing 50 per centum or
more of bicarbonate of Soda; hydrate of,
or caustic; phosphate of; hyposulphite of;
sulphid of, and Sulphite of, one-fourth
cent per pound; chromate and bichromate
of, and yellow
cent per pound; borate of, or borax re-
fined; crystal carbonate of, monohydrate,
and sesquicarbonate of; Sal Soda, and Soda
crystals, one-eighth cent per pound; and
sulphate of soda crystallized, or Glauber
Salts, $1 per ton.
russiate of, three-fourths |
* * e º º ºs º º tº e º s sº º gº gº ; chromate and dichro-
(6), ---------------------------------- y
hydroxide or caustic Soda (7), ... . . . . . . . .
tº sº gº sº º ºs º 'º º ſº º sº tº º ºs ºs e º º ºs ; nitrite, ... . . . . . . .
• * * * * * * * * * * * * * * * * * * * ; phosphate, - - - - - -
ge º 'º sº e º 'º º ºs sº º sº tº e = * * * * * * * ; Sesquicarbonate
(4) ------------------------------ ; sili-
cofluoride (8), . . . . . . . . . . . . . . . . . . . . ; Sul-
phate, crystallized, or Glauber salt,
sº º ſº sº sº sº e º sº e º e º sº sº * * * * * * * * * * * * * ; Sulphate,
anhydrous (9),
sulphide,
sulphite, bisulphite, and meta-bisulphite
Par. . Sodium hydrosulphite,
hydrosulphite compounds, Sulphoxylate
compounds, and all combinations and
mixtures of the foregoing (12), . . . . . . . . . .
SCHEDULE A–CHEMICALS, OILS, AND PAINTs. .91
ACT OF 1909. Par. . Starches: (13) potato, . . . .
296. Starch, made from potatoes, 1}
cents per pound; all other starch, includ- | . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; wheat,
ing all preparations, from whatever sub-
stance produced, fit for use as starch, 1
cent per pound. -------------. . . . . . . . . . . . . . . . - - - - - ; rice,
ACT OF 1913. -
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * ; arrowroot,
234. Starch, made from potatoes, 1 -
cent per pound; all other starch, includ-
ing all preparations, from whatever sub- | . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; all other
stance produced, fit for use as starch, #
cent per pound.
starches {ºns) tapioca flour and
sago flour (14), ------------------------
Par. . (15) Dextrine, made from
potato starch or potato flour, . . . . . . . . . . .
* * * * * * * * * * * * * * * * * * * * * * * * ; dextrine, not
otherwise provided for, burnt starch or
British gum, destine substitute, and
Soluble or chemically treated starch,
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The name “soda” was originally used to designate sodium
oxide (Na,C), and is frequently applied indiscriminately to all
sodium compounds. It is better usage and prevents ambiguity to
employ the term sodium. If the true chemical name of the com-
pound is not used exclusively, the chemical name has been ampli-
fied with the commercial term, for example “sodium hydroxide, or
caustic soda.” This general designation of sodium compounds has
been used and all the compounds arranged in alphabetical order in
the suggested paragraph.
Under the construction against implied repeal, Sodium benzoate is
dutiable under the specific provision in paragraph 67 rather than
under the provision for coal-tar medicinals in the act of September 8,
1916. (Vandegrift & Co. v. United States, 9 Ct. Cust. Appls., 112,
of 1919; Dec. Treas. Dept., Oct. 5 and Nov. 7, 1916, published in
report of Tariff Commission on Dyes and Other Coal-tar Chemicals,
p. 65 and 66). Sodium benzoate is mentioned specifically in
} R. 8078, passed by the House during the last session of Congress,
92. SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
but not enacted into law. As it is a coal-tar chemical it should
logically be classified with coal-tar products.
(2) The term “supercarbonate” in connection with sodium
bicarbonate is obsolete. The term “baking soda” has been inserted
as a synonym for sodium bicarbonate.
(3) It is suggested that sodium bromide be mentioned specifically,
as it is one of the important forms in which bromine is marketed.
(4) The wording “crystal carbonate of, monohydrate, and sesqui-
carbonate of; Sal soda, and soda crystals” describes three separate
chemical and commercial articles. Soda crystals is an indefinite
term which may be applied to all three substances. Crystal carbonate
and Sal Soda designate the same substance, which is also known as
hydrated sodium carbonate, or washing soda. Monohydrate of soda
is monohydrated sodium carbonate. These articles may be distin-
uished as follows: (1) Hydrated sodium carbonate, or sal soda;
2) monohydrated sodium carbonate; and (3) sodium sesquicar-
bonate. These have similar uses and differ little in value and there-
fore may logically carry the same rate of duty.
(5) Sodium formate is an important material for the manufacture
of formic and Oxalic acids and was imported in 1914 to the extent of
1,843,245 pounds, valued at $44,693. This important sodium com-
pound has been mentioned specifically in the suggested paragraph.
(6) The chemical name for “yellow prussiate of soda,” is sodium
ferrocyanide. ... This designation has been used in the suggested
paragraph followed by the words “ or yellow prussiate of soda.”
(7) The term “hydrate,” used in connection with caustic soda in
paragraph 67, strictly speaking, refers to those chemical compounds
containing water of crystallization and does not designate an
hydroxide. The correct chemical name for caustic soda is sodium
hydroxide and this term has been used in the suggested paragraph.
(8) Sodium silicofluoride is an important sodium compound.
Imports in 1914 were nearly 670,000 pounds. Its commercial
importance warrants specific mention.
9) Calcined sodium sulphate in powdered form was held properly
dutiable as a chemical compound or mixture and not within the
provision of this paragraph for sulphate of soda crystallized, or
Glauber salt. (G. A. 7864, T. D. 36192, of 1916.) It is suggested
that anhydrous sodium sulphate be mentioned specifically. 4
(10) There are three important sodium sulphites: Namely, normal
sodium sulphite, sodium bisulphite, and sodium meta-bisulphite.
These three sulphites are closely related and should logically bear
the same rate of duty. The three compounds are provided for by
name in the proposed paragraph. -
(11). Hyposulphite of soda is a commercial term used incorrectly
to designate the chemical compound sodium thiosulphate, com-
monly known as “hypo.” This product has been designated by the
words “sodium thiosulphate.” The term “hyposulphite” has been
; because of the possibility of conflict with sodium hydro-
sulphite.
(12) Sodium hydrosulphite is an important sodium compound
used as a reducing agent in the dyeing and printing of textiles.
It is also combined with other chemicals to form similar reducin
agents. Provision has been made for sodium hydrosulphite an
similar preparations in a separate paragraph.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 93
(13) It is suggested that the provision for starches in paragraph 234,
Schedule G, be transferred to Schedule A. The starches are prepared
by chemical, or at least chemically controlled, processes; their
predominant uses are for technical rather than food purposes, and in
their manufacture they are closely related to the dextrines and other
articles now included in Schedule A.
Paragraph 234 classifies the starches in two groups, viz: (a) “starch,
made from potatoes,” and (b) “all other starch including all prepara-
tions, from whatever substance produced, fit for use as starch.”
In the suggested reclassification, specific provisions have been made
for potato starch, wheat starch, rice starch, and arrowroot starch.
(14). In the present tariff there is an apparent overlapping of the
provisions relating to starch. Paragraph 234 provides for “all other
starch including all preparations, from whatever substance pro-
duced, fit for use as starch.” . The free list, however, in paragraphs
590 and 625, specifically mentions “tapioca flour” and “sago flour.”
These so-called “flours” are in reality starches and lacking specific
mention would logically fall within the “all other” provision in
paragraph 234. It has been held, however, that this general pro-
vision does not apply in the presence of the specific provisions in
the free list.
The domestic starch manufacturers argued before the Ways and
Means Committee in 1909, in 1913, and again in the recent tariff
hearings (1921), that tapioca fiour and Sago flour are competitive
with their products and that all starches should be dutiable. The
extent to which the different starches are competitive has been dis-
cussed by the Tariff Commission in the Tariff Information Survey on
“Starches and related materials.” It is believed, however, that the
transfer of the provisions for tapioca and sago flours from the free
list to the dutiable list involves a question of policy which must be
determined by the Congress. In the suggested reclassification, there-
fore, the commission offers the alternative of including or excepting
tapioca flour and sago flour from the “all other” provision. In any
event, it is believed that tapioca flour and Sago flour should be men-
tioned in order to prevent conflict with the other tapioca and sago
provisions. -
(15) The dextrines now included with the gums in paragraph 36 are
prepared from starch, and it is suggested that they be treated in a
separate paragraph, preferably, to follow the paragraph for starches.
Although the dextrines are generally regarded as gums and are some-
times called “British gum” and “envelope gum,” they are distinctly
different in character and use from the other gums in paragraph 36.
No change in the language of the present act is suggested.
PARAGRAPH 68.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
79. Sponges, 20 per centum ad valorem;
manufactures of sponges, or of which (It is suggested that paragraph 68, clas-
sponge is the component material of chief sifying sponges, be transferred to Sched-
value, not specially provided for in this ule N.)
Section, 30 per centum ad valorem.
94 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
ACT OF 1913. Par. . Strontium (1): Carbonate,
68. Sponges: Trimmed or, untrimmed precipitated,
but not advanced in value by chemical
rocesses, 10 per centum ad valorem;
§. Sponges and Sponges advanced
in value by processes involving chemical
operations, manufactures of Sponges, or of - - - - - - -
which sponge is the component material
of chief value, not specially provided for
in this section, 15 per centum ad valorem.
----, nitrate, ----------------------- -
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Strontium compounds are now dutiable at 15 per cent ad valo-
rem under paragraph 5 as chemical compounds n. S. p. f. , Prior to
the war the strontium salts were imported chiefly from Germany.
The two most important strontium compounds are strontium nitrate
and strontium carbonate. The imports in 1914 of strontium nitrate
were about 2,000,000 pounds and of strontium carbonate slightly
over 50,000 pounds. It is suggested that these strontium compounds
be provided for in a separate paragraph.
PARAGRAPH 69.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
13. * * * French chalk, 1 cent per -
pound; * * *. - Par. . Talc (1), steatite or Soap-
ACT OF 1913.
stone (2), and French chalk, all the fore-
69. Talcum, ground talc, steatite, and
French chalk, cut, powdered, washed, or
pulverized, 15 per centum ad valorem. going, ground, washed, powdered, or pul-
Verized (3), --------------------------
...; cut or sawed, or in blanks, Crayons,
cubes, disks, or other forms, . . . . . . . . . . . .
REASONS FOR SUGGESTED RECLASSIFICATION.
This paragraph should be considered in connection with paragraph
621 (free list), which reads: “Talcum, steatite, and French chalk,
crude and unground.” If the suggested wording for paragraph 69
is adopted, pº h 621 should be changed to read: “Talc, steatite
or Soapstone, an #. chalk, all the foregoing, crude or unground.”
(1) “Talcum” is an older and practically obsolete name for talc.
The term “talcum,” because of its popular use in connection with
talcum powder, has come to be associated with the ground rather
than the unground material. It is suggested that talc be substituted
for the word talcum in both paragraphs.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 95
(2) Steatite is the geologic name for the massive form of talc
commonly known as Soapstone. It is seldom used in commerce and
it is therefore suggested that the words “or soapstone” be inserted
after steatite.
I (3) Talc and soapstone are imported in three forms: (a) Crude or
unground; (b) ground or pulverized, and (c) cut or sawed into slabs,
disks, crayons, or into cubes and blanks used in the manufacture of
gas tips. Should specific duties be adopted it would appear logical
to provide different specific rates for these grades.
PARAGRAPH 70.
ACT OF 1909. SUGGESTED RECLASSIFICA-
- TION.
83. Vanillin, 20 cents per ounce.
697. Tonquin, tonqua, or tonka beans. Par. . Vanilla beans (1), . . . . . . .
(Free.)
ACT OF 1913. . . . . . . . . . . . . . . . . . . ; tonka beans, . . . . . . .
70. Vanillin, 10 cents per ounce;
Vanilla beans, 30 cents per pound; tonka | . . . . . . . . . . . . . . . . . . . . e is
beans, 25 cents per pound.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) It has been suggested (see par, 49) that vanillin be transferred to
the paragraph providing for synthetic aromatic chemicals. Although
.#. is the principal constituent of vanilla extract, it is not pre-
pared from vanilla beans, but is made by a synthetic process from
eugenol, a product obtained from oil of cloves. Coumarin, the flavor-
ing principle from tonka beans, is mentioned specifically in the sug-
gested provision for paragraph 23 (see page 29).
FREE LIST.
Provisions for Chemicals and Related Articles.
PARAGRAPH 387.
ACT OF 1909.
1. Acids: Acetic or pyroligneous acid,
not exceeding the specific gravity of One ||
and forty-seven one-thousandths, three-
fourths of 1 cent per pound; exceeding
the specific gravity of one and forty-seven
one-thousandths, 2 cents per pound;
* * * chromic acid, 2 cents per
pound; * * * sulphuric acid or oil
of vitriol not specially provided for in
this section, one-fourth of 1 cent per
pound; * * *.
482. Acids: Arsenic or arsenious, ben-
zoic, carbolic, fluoric, hydrochloric or
muriatic, nitric, phosphoric, phthalic,
picric, or nitropicric, prussic, silicic, and
valerianic.
687. Sulphuric acid which at the tem-
perature of sixty degrees Fahrenheit does
not exceed the specific gravity of one and
three hundred and eighty one-thou-
Sandths, for use in manufacturing super-
phosphate of lime or artificial manures of
any kind, or for any agricultural pur-
poses: Provided, That upon all sulphuric
acid imported from any country, whether
independent or a dependency, which
imposes a duty upon Sulphuric acid im-
orted into such country from the
nited States, there shall be levied and
collected a duty of one-fourth of 1 cent
per pound.
ACT OF 1913, AS MODIFIED BY
THE ACT OF 1916.
387. Acids: Acetic
arsenic or arsenious, * * * chromic,
fluoric, hydrofluoric, hydrochloric or
muriatic, nitric, phosphoric, * * *
prussic, silicic, Sulphuric or oil of vitriol,
and valerianic.
NOTE.—The provisions for carbolic and
phthalic acids were repealed by section
502, of the Act of September 8, 1916.
or pyroligneous,
SUGGESTED RECILASSIFICA-
TION.
Par. . Acids and acid anhy-
drides: Acetic acid (1), arsenic acid, ar-
senious acid or white arsenic (2), chromic
acid, hydrofluoric acid (3), hydrochloric
or muriatic acid, nitric acid, phosphoric
acid, sulphuric acid or oil of vitriol, and
mixtures of nitric and sulphuric acids (4),
valerianic acid, and all anhydrides of
the foregoing not specially provided for
in this Section (5).

REASONS FOR SUGGESTED RECLASSIFICATION.
(1) P
oligneous acid is the term applied to the crude, dilute acetic
acid and alcohol mixture obtained as the first step in distilling wood.
It is not an article of commerce..and might well be omitted.
96
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 97
In the act of 1909 acetic acid was dutiable at two specific rates based
On specific gravity. The specific gravity at certain densities is not a
true indication of the strength of acetic acid. Its strength can better
be expressed in percentage by weight of actual acetic acid. The
principal grades contain approximately 28, 56, 80, and 99 per cent
of acetic acid. An ad Valorem duty would appear to bear more evenly
on the several different strengths.
(2) Arsenic acid and arsenious acid are different articles of com-
merce. Arsenious acid is more commonly known as “White arsenic.”
Arsenious acid occurs as an oxide or anhydride rather than as an acid,
while arsenic acid occurs both as an acid and an anhydride. Chromic
acid and anhydrous phosphoric acids of commerce are also oxides or
anhydrides and it appears more advisable to keep all these articles in
a paragraph for acids (par. 1 or 387) rather than to separate them by
transfer to other paragraphs, such as paragraph 403 for “arsenious
acid.
Imports of “white arsenic’’ (arsenious acid) have been classified
under the provision for “arsenic” in paragraph 479 of the act of 1897,
corresponding to paragraph 403 of the act of 1913 (Abstract 21435,
T. D. 29848, of 1909). Information supplied by the Collector of
Customs at New York indicates that importations of “white arsenic”
have been included in the statistics for “arsenic,” and sulphide of
arsenic, or orpiment.
Since both arsenious acid (white arsenic) and arsenic acid are on the
free list, this discrepancy has little tariff significance at present, but it
is believed that the addition of the phrase “or white arsenic” after
‘‘arsenious acid” would obviate difficulties and insure uniform classi-
fication of these articles. The provision might read: ‘‘Arsenic acid,
arsenious acid or white arsenic.”
(3) Fluoric acid is an obsolete name for hydrofluoric acid. Since
the latter is mentioned specifically in this paragraph, it is suggested
that the term “fluoric ’’ be omitted.
(4) Nitric acid is largely used in the form of “mixed acid,” con-
sisting of nitric and sulphuric acids. The mixing is done to facilitate
shipment and also because sulphuric acid is required in certain uses
as a dehydrating agent.
Nitric acid containing about 3 per cent in value of sulphuric acid,
added for the purpose of preventing the nitric acid from attacking the
metal of the tank cars when shipped, was held exempt from duty as
nitric acid under paragraph 387 of the act of 1913. (G. A. 7828,
T. D. 36000, of 1915.) A mixture of 20.16 of sulphuric acid and
72.28 of nitric acid, the remainder water, was held by the Board of
General Appraisers to be a mixture or mixed acid within paragraph. 5
(G. A. 8235, T. D. 37927, of 1919), but the Court of Customs Appeals
held the proper classification to be under paragraph 387, as nitric
acid, the sulphuric acid to be treated as a part of the packing of the
goods for shipment. (AEtna Explosives Co. v. United States, 10 Ct.
Cust. Apple., -; T. D. 38.238, of 1919.) Pending in Supreme Court
on writ of certiorari.
In view of this judicial construction, it is suggested that a pro-
vision for “mixtures of nitric and sulphuric acids” be added.
(5) “Prussic” is an older term for hydrocyanic acid. With the
exception of a small quantity in 1917, there have been no imports of
40650—21—7
98 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
this article in recent years, and it is suggested that it be omitted. If
any should be imported, duty would be assessed under the provision
for “acids not specially provided for.”
So-called silicic acidissilica, which occurs naturally assandor quartz,
Imports of silicic acid, however, have been Small and sporadic, and
it is omitted in the suggested reclassification. If any should be
imported without specific provision therefor, duty would be assessed
under the provision for “acids not specially provided for.”
Of the acids in º 387, arsenic, arsenious, chromic, phos-
phoric, phthalic, and silicic acids of commerce are either ºft.
or occur as both acids and anhydrides. Phosphoric and phthalic
acid anhydrides were held to come within the provision for phos-
phoric acid and phthalic acid, respectively, in paragraph 387, as
more specific than the provision for acid anhydrides in paragraph 1.
(United States v. Merck, 8 Ct. Cust. Appls., 141, of 1917; G. A. 7819,
T. D. 35914, of 1915.) Phthalic acid of this paragraph was repealed
by the act of September 8, 1916. In order to include the anhydrides
as well as the acids and to prevent conflict with paragraph 1, it is
suggested that the provision “and all anhydrides of the foregoing”
be added at the .Pof this paragraph.
PARAGRAPH 388.
ACT OF 1909. SUGGESTED RECLASSIFICA-
- TION.
483. Aconite. -
(It has already been suggested that the
ACT OF 1913. provision for this article be combined
- with the provisions for a number of other
388. Aconite. - botanical drugs, which are mentioned
Specifically on the free list, in a separate
provision to follow paragraph 477, provid-
ed the articles are in a crude condition.
If advanced in value or condition, they
would be included under a separate para-
graph following paragraph 27.)
PARAGRAPH 393. r
ACT OF 1909. SUGGESTED RECLASSIFICA-
- TION.
Not specially provided for. -
Par. . Alcohol, methyl or wood,
ACT OF 1913. - -
393. Alcohol, methyl or wood. or methanol (1).
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Methanol is the correct chemical name for methyl alcohol. In
recent years this term has generally been applied to wood alcohol.
PARAGRAPH 395.
ACT OF 1909. SUGGE STED RECLASSIFICA-
- TION.
490. Ammonia, sulphate of.
ACT OF 1913.
Par. . Ammonium: Nitrate, per-
395. Ammonia, sulphate of, perchlo- chlorate, and sulphate.
Tate of, and nitrate of.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 99
REASONS FOR SUGGESTED RECLASSIFICATION.
In accordance with the correct chemical usage, the term
“ammonium” has been substituted for ammonia, and the “of” has
been omitted.
PARAGRAPH 399.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
494. Annatto, roucou, rocoa, or or- -
leans, and all extracts of. (The articles in this paragraph have
been transferred to a separate paragraph
ACT OF 1913. following paragraph º
399. Annatto, roucou, rocoa, or or-
leans, and all extracts of.
PARAGRAPH 400.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
704. Vaccine virus.
Par. . Antitoxins, vaccines, vi-
ACT OF i Q 13.
400. Antitoxins, vaccine virus, and all ruses, (1) Serums, and bacterins (2), used
other serums derived from animals and -
used for therapeutic purposes.
for therapeutic purposes,
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Paragraph 400 provides for “vaccine virus and all other serums”
which implies that vaccine virus is a serum. This is not in accordance
with definitions for these biological products given by the act of July
1, 1902, which clearly distinguishes between vaccines, viruses, serums,
and antitoxins. The wording of the present paragraph has been
modified in order to include all of these products.
(2) Bacterins, although sometimes known as “vaccines, ’’ are of
somewhat different character, and it has been recommended that they
be mentioned specifically in order to prevent possible confusion with
the term “vaccines.”
The phrase “derived from animals” has been omitted, since certain
of the materials are obtained from bacterial cultures and not from
animals. Moreover, it is unnecessary to an adequate description
of these commodities.
PARAGRAPH 401.
ACT OF 19 O9. SUGGESTED RECLASSIFICA-
TION.
495. Apatite. e *
(Apatite is a crude mineral used
ACT OF 1913. chiefly for its phosphate content in the
manufacture of fertilizers. It has been
401. Apatite. transferred and combined with para-
graph 574, providing for crude phos-
phates.) -
100
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 405.
ACT OF 1909.
503. Asafetida.
ACT OF 1913.
405. Asafetida.
SUGGESTED RECLASSIFICA-
TION.
(It has already been suggested that
the provision for this article be combined
with the provisions for a number of other
botanical drugs, which are mentioned
Specifically on the free list, in a separate
provision to follow paragraph 477, pro-
vided the articles are in a crude condi-
tion. If advanced in value or condition
they would be included under a separate
paragraph following paragraph 27.)
PARAGRAPH 407.
ACT OF 1909.
502. Ashes, wood and lye of, and beet-
root ashes.
ACT OF 1913.
407. Ashes, wood and lye of, and beet-
root ashes. {
SUGGESTED RECLASSIFICA-
TION.
(The words “lye of ’’ in paragraph 407
have been omitted in the description of
these articles. Lye of wood ashes con-
Sists chemically of potassium carbonate
or hydroxide, or both, with certain impu-
rities. Inasmuch as crude potassium car-
bonate and crude potassium hydroxide
are on the free list in paragraph 580, the
Separate mention of lye of wood and
beet-root ashes is a duplication. It is
Suggested that the two kinds of ashes in
paragraph 407 “wood and beet-root
ashes” (the chief value of which is de-
pendent upon the content of potassium
carbonate) be transferred to a separate
paragraph following paragraph 580, which
provides for other crude potassium com-
pounds.)
PARAGRAPH 409.
ACT OF 1909.
504. Balm of Gilead.
ACT OF 1913.
409. Balm of Gilead.
SUGGESTED RECLASSIFICA-
TION.
(Balm of Gilead is the name of an
article formerly used in oriental medicine.
It is obsolete in modern commerce and
practically none has been imported in
recent years. It is suggested that its
specific enumeration be abandoned. In
such case, it would presumably be in-
cluded under the provision for ‘‘drugs”
in paragraph 477 or 27.) -
PARAGRAPH 410.
ACT OF 1909.
505. Barks, cinchona or other from
which quinine may be extracted.
ACT OF 1913.
410. Barks, cinchona or other, from
which quinine may be extracted.
SUGGE STED RECHLASSIFICA-
. TION. -
Par. . Barks, cinchona or other,
from which quinine may be extracted.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
101
PARAGRAPH 412.
ACT OF 1909.
506. Beeswax.
ACT OF 1913.
412. Beeswax.
SUGGESTED RECLASSIFICA-
TION.
(The provision for beeswax in this para-
graph has been omitted, as it has been de-
Scribed in general language in paragraph
641 as “animal wax.”)
PARAGRAPH 420.
ACT OF 1909.
513. Blood, dried, not specially pro-
vided for in this section.
257. * * * ; dried blood, when
Soluble, 1% cents per pound.
ACT OF 1913.
420. Blood, dried, not specially pro-
vided for in this section.
SUGGE STED RECLASSIFICA-
* TION.
Par. . Blood,
dried, not spe-
cially provided for in this section.
PARAGRAPH 421.
ACT OF 1909.
9. Blue vitriol or sulphate of copper,
one-fourth of 1 cent per pound.
706. Verdigris, or subacetate of copper.
ACT OF 1913.
421. Blue vitriol, or sulphate of cop-
per; acetate and Subacetate of copper, or
verdigris.
SUGGESTED RECLASSIFICA-
TION.
Par. . (1) Copper sulphate or
blue vitriol; copper acetate and subace-
tate or verdigris.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) In the rearrangement of this paragraph, the true chemical
names are stated before the trade names. The word “of” has been -
Omitted and the general phrase “copper sulphate” used.
PARAGRAPH 423.
SUGGESTED RECILASSIFICA-
TION.
ACT OF 1909.
515. Bones, crude, or not burned,
calcined, ground, steamed, or other-
wise manufactured, and bone dust or
animal carbon, and bone ash, fit only
for fertilizing purposes.
Par. . Bones: Crude, steamed, or
ground; bone dust (1), bone meal, and
ACT OF 1913.
bone ash; bones, burned or calcined, not
423. Bones, crude, burned, calcined,
ground, steamed, but not otherwise
manufactured, and bone dust or animal
Carbon, bone meal, and bone ash.
ground and not otherwise manufactured.
102
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) It is suggested that the term “animal carbon” be omitted
from paragraph 423.
as synonymous with bone dust.
This term is used incorrectly in the present act
The provision for burned or calcined
bones is limited to unground material, in order that it will not conflict
with paragraph 447.
(See discussion under paragraph 53.)
PARAGRAPH 429.
ACT OF 1909.
ll. Borax, 2 cents per pound; borates
of lime, Soda, or other borate material
not otherwise provided for in this sec-
tion, 2 cents per pound.
ACT OF 1913.
429. Borax, crude and unmanufac-
tured, and borate of lime, soda, and other
borate material, crude and unmanufac-
tured, not otherwise provided for in this
section.
SUGGESTED RECLASSIFICA-
TION.
Par. . Borax, crude and unmanu-
factured, and borate of lime, Soda, and
other borate material, crude and unmanu-
factured, not specially provided for in
this section.
PARAGRAPH 433.
ACT OF 1909.
(Not specially provided for.)
ACT OF 1913.
433. Bromin.
SU GGESTED RECLASSIFICA-
TION.
Par. . Bromine.
PARAGRAPH 437.
ACT OF 1909.
525. Burgundy pitch.
ACT OF 1913.
437. Burgundy pitch.
SUGGE STED RECLASSIFICA-
TION.
Par. . Burgundy pitch.
PARAGRAPH 440.
ACT OF 1909.
(Not specially provided for.)
ACT OF 1913.
440. Calcium, acetate of, brown and
gray, and chloride of, crude; calcium
carbide and calcium nitrate.
SUGGESTED RECLASSIFICA-
TION.
Par. . Calcium: Acetate (1);
chloride, crude; carbide, nitrate, and
cyanamid or lime nitrogen (2).
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Formerly there were two grades of calcium acetate, namely,
the brown and the gray. At present the latter constitutes the only
commercial grade and the term calcium acetate is sufficient to include
this product.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 103
(2) Calcium cyanamid or lime nitrogen has been transferred from
paragraph 499 to this paragraph in order to have all calcium com-
pounds together. This calcium compound is used both as a fertilizer
and for the manufacture of sodium cyanide, urea, and ammonia.
PARAGRAPH 442.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
528. Castor or castoreum.
(This provision has been transferred to
ACT OF 1913. paragraph 49, which provides for the other
perfume materials of animal origin.)
442. Castor or castoreum.
PARAGRAPH 446.
ACT OF 1909. SUGGE STED RECIALSSIFICA-
TION.
531. Chalk, crude, not ground, bolted,
precipitated, or otherwise manufactured. Par. , Chalk, crude, not ground,
ACT OF 1913.
bolted, precipitated, or otherwise manu-
446. Chalk, crude, not ground, bolted,
precipitated, or otherwise manufactured.
factured.
PARAGRAPH 447.
ACT OF 1909. SU G-GE STEED PECLASSIFICA-
TION.
10. Charcoal in any form, not specially
provided for in this Act; bone char, suit- Par. . Wood charcoal, blood char,
able for use in decolorizing Sugars, and
blood char, 20 per centum ad valorem.
and bone char or bone black: (1) Pro-
vided, That no article shall be admitted
free of duty under this paragraph unless 75
ACT OF 1913.
per centum or more of such article shall
447. Charcoal, blood char, bone char,
or bone black, not suitable for use as a * * *
pigment. be retained on a one-hundred-mesh screen.
Par. . (2) Decolorizing and deodor-
izing carbons of vegetable origin, not
specially provided for in this section.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The conflict between this provision and the provision for bone
black pigments has been discussed under paragraph, 53. If it be the
policy to retain this provision in the free list it will be necessary to
104 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
limit it to the coarser material, such as is not suitable for use as a
igment. This could be accomplished by a provision “that no article
shall be classified for (or exempted from) duty under this paragraph
unless 75 per centum or more of such article shall be retained on a
100-mesh screen.” Should the Congress, on the other hand, desire
to transfer this provision to the dutiable list (as in tariff acts prior to
1913), it should logically be given the same rate of duty or combined
with the pigments made from bone black. (Cf. par. 53.)
(2) Forms of charcoal obtained from vegetable sources and known
as “decolorizing and deodorizing carbons” have recently become of
considerable commercial importance. They were imported in large
quantities prior to the war and are now being manufactured in this
country. The decolorizing carbons, especially those used in refining
vegetable oils, are usually more finely ground than is the bone black
used for filtering purposes and would be excluded from the preceding
paragraph because of the screen test. It is suggested, therefore,
that they be treated in a separate paragraph either on the free or
dutiable list.
PARAGRAPH 449.
ACT OF 1909. SUGGE STED RECLASSIFICA-
TION.
(Not specially provided for.)
Par. . Chromium hydroxide (1),
ACT OF 1913.
449. Chromium, hydroxide of, crude. crude.
REASONS FOR SUGGESTED RECIASSIFICATION.
(1) As chromium hydroxide is a distinct chemical name, the
word “of” used in paragraph 449 of the act of 1913 is unnecessary
and has been omitted.
PARAGRAPH 452.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
536. Coal tar, crude, pitch of coal tar,
and products of coal tar known as dead or Par. . (1) Acenaphthene, anthra-
creosote oil, benzol, toluol, naphthalin,
* * * cresol, * * *; all the fore- cene having a purity of less than 30 per
going not medicinal and not colors or
dyes. centum, benzene, carbazole having a
ACT OF 1913 AS MODIFIED BY purity of less than 65 per centum, cu-
THE ACT OF 1916.
mene, cymene, fluorene, methylanthra-
FREE LIST.
cene, methylnaphthalene, naphthalene
SEC. 500. Group I. Acenaphthene,
anthracene having a purity of less than having a Solidifying point less than
25 per centum, benzol, carbazol having
a purity of less than 25 per centum, Cresol, Seventy-nine degrees centigrade, pyri-
cumol, fluorene, metacresol having a
purity of less than 90 per centum, methyl dine, quinoline, toluene, Xylene, dead
anthracene, methylnapthalene naphtha- - .
lene having a solidifying point less than or creosote oil, anthracene oil, pitch of
seventy-nine degrees centigrade, Ortho-
cresol having a purity of less than 90 per | coal tar, pitch of blast-furnace tar, pitch
centum, paracresol having a purity of less
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
105
than 90 per centum, pyridin, quinolin,
toluol, xylol, crude coal tar, pitch of coal
tar, dead or creosote oil, anthracene oil,
all other distillates which on being sub-
jected to distillation yield in the portion
distilling below two hundred degrees
centigrade a quantity of tar acids less
than 5 per centum of the original distillate,
and all other products that are found
naturally in coal tar, whether produced
or obtained from coal tar or other source,
and not otherwise specially provided for
in this title, shall be exempt from duty.
} SEC. 502. That paragraphs “ ” *
22, * \ # * in * * * Schedule A
of section 1 of an act entitled “An act to
reduce tariff duties and to provide reve-
nue for the Government, and for other
purposes,” approved October 3, 1913, and
paragraphs # * * 452 * * * of the
“free list” of section 1 of said act, and so
much of said act or any existing law or
parts of law as may be inconsistent with
this title are hereby repealed.
of oil-gas tar, pitch of water-gas tar, crude
coal tar, crude blast-furnace tar, crude
oil-gas tar, crude Water-gas tar, all other
distillates of any of these tars which on
being subjected to distillation yield in
the portion distilling below one hundred
and ninety degrees centigrade a quantity
of tar acids less than 5 per centum of the
original distillate, all mixtures of any of
these distillates and any of the foregoing
pitches, and all other materials or prod-
ucts that are found naturally in coal tar,
whether produced or obtained from coal
tar or other Source, and not specially pro-
vided for in paragraph
(2).
OT
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Group I (“free list”) section 500 of H. R. 8078, Sixty-sixth
Congress, second session, is suggested to replace paragraph 452 of
the free list of the tariff act of 1913, as modified by the act of Sep-
tember 8, 1916. This change involves no question of policy, as it
conforms with the repealing clause in the act of September 8, 1916,
and exempts from duty the so-called coal-tar crudes and distillates.
(2) The word “ title” has been changed to “section.” The words
“shall be exempted from duty” have been omitted, as this paragraph
will appear on the free list.
PARAGRAPH 454.
SUGGE STED RECILASSIFICA-
TION'.
ACT OF 19
538. Cocculus indicus.
(It has already been suggested that the
ACT OF 1913. provision for this article be combined
with the provisions for a number of other
botanical drugs, which are mentioned
specifically on the free list, in a separate
* provision to follow paragraph 477, pro-
viding the articles are in a crude condi-
tion. If advanced in value or condition,
they would be included under a separate
paragraph following paragraph 27.)
&
#. Cocculus indicus.
106 SCHEDULE A–CHEMICALs, OILs, AND PAINTs.
PARAGRAPH 455.
ACT OF 1909. - SUGGESTED RECLASSIFICA-
TION.
539. Cochineal.
(The article in this paragraph has been
ACT OF 1913. transferred to a separate paragraph fol-
lowing paragraph 624.) *
455. Cochineal.
PARAGRAPH 462.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
19. Copperas, or Sulphate of iron,
fifteen hundredths of 1 cent per pound. Par. . Ferrous sulphate or cop-
ACT OF 1913. peras (1). - -
462. Copperas, or Sulphate of iron.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The term “sulphate of iron” used in paragraph 462, act of
1913, is not a definite chemical term, as it may include ferrous and
ferric sulphate. The compound referred to by this paragraph, com-
mercially known as “copperas,” is chemically ferrous sulphate, and
the word “iron” has for this reason been replaced with the term
“ferrous,” the chemical name being placed before the commercial
Ila,ICl62.
PARAGRAPH 469.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
550. Cudbear.
(The provision for cudbear has been
ACT OF 1913. transferred and combined with similar
tanning materials in a separate paragraph
469. Cudbear. to follow paragraph 624.)
PARAGRAPH 473.
SUGGESTED RECLASSIFICA-
TION.
ACT OF 1909.
Par. . Dandelion roots, raw,
554. Dandelion roots, raw, dried or
undried, but unground. dried or undried, but unground.
ACT OF 1913.
473. Dandelion roots, raw, dried or
undried, but unground.
PARAGRAPH 475.
ACT OF 1909.
SU G-GE STED RECILASSIFICA-
557. Divi-divi. TION.
ACT OF 1913. (The article in this paragraph has been
transferred to paragraph 624")
475. Divi-divi.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
107
PARAGRAPH 476.
ACT OF 1909.
558. Dragon’s blood.
ACT OF 1913.
476. Dragon’s blood.
SUGGESTED RECLASSIFICA-
TION.
(The provision for dragon’s blood in
paragraph 476 has been transferred and
combined with other resins in paragraph
500.)
PARAGRAPH 477.
ACT OF 1909.
559. Drugs, such as barks, beans,
berries, * * * buds, bulbs, bulbous
roots, excrescences, fruits, flowers; dried
fibers, dried insects, grains, gums, gum
resin, herbs, leaves, lichens, mosses,
* * * roots, stems, * * * vegeta-
bles, Seeds (aromatic, not garden Seeds),
seeds of morbid growth, weeds, * * *
any of the foregoing which are natural
and uncompounded drugs and not edible
and not specially provided for in this sec-
tion, and are in a crude state, not ad-
vanced in value or condition by any proc-
ess or treatment whatever beyond that
essential to the proper packing of the
drugs and the prevention of decay or
deterioration pending manufacture: Pro-
vided, That no article containing alcohol,
or in the preparation of which alcohol is
used, shall be admitted free of duty
under this paragraph.
ACT OF 1913.
477. Drugs, such as barks, beans,
berries, buds, bulbs, bulbous roots, ex-
Crescences, fruits, ſlowers, dried fibers,
dried insects, grains, gums, gum resin,
herbs, leaves, lichens, mosses, logs,
roots, Stems, vegetables, seeds (aro-
matic, not garden seeds), Seeds of morbid
growth, Weeds; any of the foregoing which
are natural and uncompounded drugs and
not edible, and not specially provided for
in this section, and are in a crude state,
not advanced in value or condition by
shredding, grinding, chipping, crush-
ing, or any other process or treatment
whatever beyond that essential to the
proper packing of the drugs and the
prevention of decay or deterioration
pending manufacture: Provided, That
no article containing alcohol shall be
admitted free of duty under this para-
graph.
SU G-GE STED RECLASSIFICA-
TION.
Par. . Drugs (1) such as barks,
beans, berries, buds, bulbs, bulbous
roots, excrescences, fruits, flowers, dried
fibers, dried insects, grains, herbs, leaves,
lichens, mosses, logs, roots, stems, vege-
tables, seeds (aromatic, not garden seeds),
Seeds of morbid growth, weeds, and all
other drugs of vegetable or animal
origin; all of the foregoing which are
natural and uncompounded drugs and
not edible, and not specially provided
for in this Section, and are in a crude state,
not advanced in value or condition by
o w * & & º *
Shredding, grinding, chipping, crushing,
or any other process or treatment what-
ever beyond that essential to the proper
packing of the drugs and the prevention
of decay or deterioration pending manu-
facture: Provided, That no article con-
taining alcohol shall be admitted free
of duty under this paragraph.
Par. . Aconite (2), aloes, asa-
fetida, cocculus indicus, ipecac, jalap,
manna, marshmallow or althea root,
leaves or flowers, maté, and pyrethrum
or insect flowers, all the foregoing
108 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
which are natural and uncompounded
and are in a crude State, not ad-
vanced in value or condition by shred-
ding, grinding, chipping, crushing, or
any other process or treatment whatever
beyond that essential to proper packing
and the prevention of decay or deterio-
ration pending manufacture: Provided,
That no article containing alcohol shall
be admitted free of duty under this
paragraph.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The language in this paragraph has been modified in accord-
ance with the suggestions made under paragraph 27, which provides
for these drugs in advanced form. It is unnecessary to repeat the
definition for the term “drugs” since the proviso in paragraph 27
defines the term “wherever used in this section.”
(2) A separate paragraph following paragraph 477 provides for a
number of botanical drugs and related products, most of which are
mentioned specifically on the free list, but the provision is limited
to those articles when in a crude state. A corresponding provision
for these materials when advanced in value or condition has been
suggested to follow paragraph 27. In addition to the drugs men-
tioned specifically, it is suggested that specific provision be made for
aloes, pyrethrum, and for maté. The reasons for their specific men-
tion in this paragraph are given in detail in the discussion following
paragraph 27.
PARAGRAPH 482.
ACT OF 1909. SUGGE STED RECIASSIFICA-
TION.
566. Fibrin, in all forms.
Par. . Fibrin, in all forms.
ACT OF 1913.
482. Fibrin, in all forms.
PARAGRAPH 490.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
434. Fulminates, fulminating powders,
and like articles suitable for miners’ use, Par. . Azides (1), fulminates, ful-
20 per centum ad valorem; all other not
specially provided for in this section, 30
per centum ad valorem. minating powder, and other like articles
ACT OF 1913.
not specially provided for in this section.
490. Fulminates, fulminating powder,
and other like articles not specially pro-
vided for in this section.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
109.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) A provision has been added to this paragraph for “azides.’
Lead azide is the principal azide similar to the fulminates.
This
would presumably be covered by the words “other like articles,” but
as it has become of considerable commercial importance, it is sug-
gested that it be given specific mention in this paragraph. .
PARAGRAPH 492.
ACT OF 1909.
575. Gambier.
ACT OF 1913.
492. Gambier.
SUGGE STED RECLASSIFICA-
TION.
(The article in this paragraph has been
transferred to a separate paragraph to
follow paragraph 624.)
PARAGRAPH 493.
A CT OF 1909.
576, Glass enamel, white, for watch
and clock dials. -
ACT OF 1913.
493. Glass enamel, white, for watch
and clock dials.
SUGGESTED RECLASSIFICA-
TION.
(It is suggested that this paragraph be
transferred and combined with para-
graph 96, Schedule B, together with the
following articles now enumerated in
paragraph 63: “and all ceramic and glass
fluxes, glazes, enamels, and colors,
whether crude, dry, mixed, or ground
with water or oil or with Solutions other
than oil, not specially provided for in
this section.’’ Paragraph 96 of Schedule
B specifically mentions “fusible and
glass enamel, not specially provided for,”
and the articles in paragraph 493 logically
belong in the Same classification. (See
discussion under paragraph 63.) )
PARAGRAPH 498.
ACT OF 1909.
580. Grease, fats, vegetable tallow,
and oils (excepting fish oils), such as
are commonly used in Soap making
or in wire drawing, or for stuffing or
dressing leather, and which are fit only
for such uses, and not specially provided
for in this section.
ACT OF 1913.
498. Grease, fats, vegetable tallow,
and oils (excepting fish oils), not
chemically compounded, such as are
commonly used in Soap making Or in
wire drawing, or for stuffing or dressing
leather, not specially provided for in
this section.
SUGGESTED RECLASSIFICA-
TION.
Par. . Vegetable tallow (1).
110 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The provision in paragraph 498 for “greases, fats, * * *
and oils (excepting fish oils) not chemically compounded, such as are
commonly used in soap making or in wire drawing, or for stuffing or
dressing leather, not specially provided for in this section,” has been
the subject of considerable litigation. The method of classification
based on use is extremely difficult to administer. Practically all
vegetable and animal oils can be used for soap making, and most of
them might be described as “commonly used in soap making.”
Many are also used in wire drawing and in stuffing and dressing of
leather. The various greases, fats, and oils, which paragraph 498 was
intended to cover, are provided for more specifically in the suggested
reclassification (see par. 44 and following paragraphs of the dutiable
list), and it is suggested that the provision in paragraph 498, except-
ing that for vegetable tallow, be discontinued.
PARAGRAPH 499.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
581. Guano, manures, and all sub-
stances used only for manure, including Par. . Guano, basic slag, ground
basic slag, ground or unground, and cal-
cium cyanamid or lime nitrogen.
or unground, manures, and all other sub-
ACT OF 1913. º
499. Guano, manures, and , all sub- stances used chiefly for fertilizer (1) not
stances used only for manure, including
basic slag, ground or unground, and cal- -
cium cyanamid or lime nitrogen. specially provided for in this section, (2).
REASONS FOR Sºj6, GESTED RECLASSIFICATION.
(1) The phrase used only for mamure embraces substances used in
the manufacture of fertilizer, the word manure as used in the act
being synonymous with fertilizer. (Shallus v. United States, 129
Fed. 845, of 1903; G. A. 7257, T. D. 31800, of 1911.) The word
substances as used in the act has a general rather than a special
application and with the words following, which denote the kind of
substances, applies generally to the commodities therein described
and not to the particular shipment which is the subject of a protest.
(Magone v. Heller, 150 U. S. 70, of 1893; 60 Fed. 601, of 1894; G. A.
7257, T. D. 31800, of 1911.)
The word “only” has been changed to “chiefly” in order to simplify
administration. Various articles, such, for instance, as tankage, while
in some cases having chief use as fertilizer, are substantially used for
other purposes. (T. D. 38542, of 1920.)
(2) Calcium cyanamid, or lime nitrogen, used as a fertilizer and
for the manufacture of sodium cyanide and ammonia, has been
transferred and combined with other calcium compounds in para-
graph 440.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
111
PARAGRAPH 500. .
ACT OF 1909.
488. Amber, and amberoid unmanu-
factured, or crude gum, gum. Kauri, and
gum Copal.
ACT OF 1913.
500. Gum: Amber in chips valued at
not more than 50 cents per pound, copal,
damar, and kauri.
SUGGESTED RECLASSIFICA-
TION.
Par. . Gums and resins (1): Am-
ber in chips valued at not more than 50
cents per pound; damar, kauri, and other
copals (2); dragon’s blood (3); and
Sandarac (4).
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The heading for this paragraph has been changed from “Gum:”
to “Gums and resins:” as the articles in the paragraph, although
known as varnish gums, are resins.
(2) The provision for “copal, damar, and kauri” has been changed
to read “damar, kauri, and other copals.”
The term copal is a class
name which covers not only damar and kauri copals but other
similar varnish resins.
(3) Dragon's blood, a resin used chiefly for coloring varnishes,
has been transferred to this paragraph from paragraph 476.
(4) A provision has been added
to this paragraph for Sandarac, an
important gum resin used in the manufacture of warnishes similar to
the other resins provided for in this paragraph.
PARAGRAPH 501.
ACT OF 1909.
435. Gunpowder, and all explosive
substances used for mining, blasting,
artillery, or sporting purposes, when
valued at 20 cents or less per pound,
2 cents per pound; valued above 20
cents per pound, 4 cents per pound.
ACT OF 1913.
501, Gunpowder, and all explosive
substances, not specially provided for
in this section, used for mining, blasting,
and artillery purposes.
SU GGE STED RECI, ASSIFICA-
TION.
Par. . Gunpowder, and all ex-
plosive substances, used for mining, blast-
ing, and artillery purposes, not Specially
provided for in this section,
PARAGRAPH 502.
ACT OF 1909.
582. Gutta-percha, crude.
ACT OF 1913.
502. Gutta-percha, crude.
SUGGESTED RECLASSIFICA-
TION.
(Gutta percha resembles india rubber
in many properties and is frequently
mixed with it. It is suggested that
gutta-percha be transferred to paragraph
513 which provides for india rubber and
rubber-like substances.)
112 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 513.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
591, India rubber, crude, and milk of, º *
and scrap or refuse India rubber, fit only Par. . India rubber, (1); and gutta
for remanufacture, and which has been
worn out by use. percha, crude (2), including jelutong or
ACT OF 1913. s -
pontianak (3), guayule (4), gutta balata.
513. India rubber, crude, and milk of,
and scrap or refuse india rubber, fit-only (5), and guttasiak (5); and scrap or refuse
for remanufacture. -
india rubber and gutta percha fit only
for remanufacture.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The term “and milk of ’’ used in paragraph 515, of the act of
1913, has been omitted, as this is not an article of commerce. It is the
uniform custom to coagulate the milk obtained from the rubber tree
before shipment from the plantation or forest.
(2) Gutta percha, crude, was separately mentioned in paragraph
502 and has been transferred to this paragraph, as crude gutta
percha resembles india rubber in many of its properties and uses.
(3) Jelutong, or pontianak, is a rubber-like substance used as a
substitute for india rubber. It is imported in large quantities and
is of sufficient importance to receive special mention. “Jelutong, or
pontianak, obtained from Borneo, British North Borneo, and the island
of Sumatra, possessing all of the qualities of rubber and used for the
same purposes in the manufacture of commodities, such as auto-
mobile tires and garden hose, is crude rubber or india rubber within
the meaning of this paragraph and is free of duty thereunder.”
(G. A. 8081, T. D. 37284, of 1917; Abstract 41775, of 1918; T. D.
37381, of 1917.)
(4) Guayule is a Mexican rubber imported in large quantities and
deserves specific mention.
(5) Gutta balata and gutta siak are similar to the other articles of
this paragraph in properties and uses and are of sufficient commercial
importance to deserve special mention.
PARAGRAPH 515.
ACT OF 1909. SUGGESTED RECLASSIFICA-
- -- TION. .
593. Iodine, crude.
27. Iodine, resublimed, 20 cents per | Par. . Iodine, crude and (1) re-
pound. &
sublimed.
ACT OF 1913.
515. Iodine, crude, or resublimed.
REASONS FOR SUGGESTED RECLASSIFICATION.
The “or” in paragraph 515 has been changed to “and,” as crude
and resublimed are different grades of iodine.
SCHEDULE A-CHEMICALS, OILS, AND PAINTS. 113
PARAGRAPH 516.
ACT OF 1909.
594. Ipecac.
ACT OF 1913. A
516. Ipecac.
SUGGESTED RECLASSIFICA-
TION.
(It has already been suggested that the
provision for this article be combined
with provisions for a number of other
botanical drugs, which are mentioned
specifically on the free list, in a separate
provision to follow paragraph 477, pro-
vided the articles are in a crude condi-
tion. If advanced in value or condition
they would be included under a separate
paragraph following paragraph 27.)
PARAGRAPH 519.
ACT OF 1909.
597. Jalap.
ACT OF 1913.
519. Jalap.
suggBSTED RECLAssIFICA-
TION.
(It has already been suggested that the
provision for this article be com ined
with the provisions for a number of other
botanical drugs, which are mentioned
specifically on the free list, in a separate
provision to follow paragraph 477, pro-
vided the articles are in a crude condi-
tion. If advanced in value or condition
they would be included under a separate
paragraph following paragraph 27.)
PARAGRAPH 523.
ACT OF 1909.
601. Kelp.
ACT OF 1913.
523. Kelp.
SUGGESTED RECLASSIFICA-
TION.
Par. . Kelp.
PARAGRAPH 524.
ACT OF 1909.
602. Kieserite.
ACT OF 1913.
524. Kieserite.
SUGGESTED RECILASSIFICA–.
- TION.
Par. . Kieserite.
PARAGRAPH 525.
ACT OF 1909.
604. Kyanite, or cyanite, and kainite.
ACT OF 1913.
525. Kyanite, or cyanite, and kainite.
40650—21—8
SUGGESTED RECLASSIFICA-
TION.
(“Kyanite, or cyanite” has been
Omitted, as this is of little or no com-
mercial importance and is not related to
kainite, which is a crude potassium salt
used in fertilizer and consists of potassium
Sulphate, magnesium sulphate and chlo-
ride. As paragraph 580 already mentions
Crude potassium salts, it is also suggested
that kainite be transferred to a paragraph
following paragraph 580.)
114
SCHEDULE A–CHEMICALS, OIS, AND PAINTS.
PARAGRAPH 526.
ACT OF 1909.
605. Lac dye, crude, seed, button,
stick, and shell.
ACT OF 1913.
526. Lac dye, crude, seed, button,
stick, and shell. +.
SUGGESTED RECLASSIFICA-
TION.
Par. . Lac (1), crude, Seed, but-
ton, stick, and shell.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Paragraph 526 is so punctuated that the words “crude, seed,
button, stick, and shell” modify lac dye instead of lac.
Since lac
dye has been replaced with coal-tar dyes and is no longer an article
of commerce, it has been omitted from the suggested paragraph.
PARAGRAPH 527.
ACT OF 1909.
607. Lactarene, or casein.
ACT OF 1913.
527. Lactarene or casein.
SUGGESTED RECLASSIFICA-
TION.
Par. . Lactarene or casein, and
Sugar of milk (1).
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) It is suggested that the provision for sugar of milk be trans-
ferred from paragraph 547, which provides
or milk and cream.
Sugar of milk and casein are both obtained from milk.
PARAGRAPH 531.
ACT OF 1909.
609. Leeches.
ACT OF 1913.
531. Leeches.
SUGGESTED RECLASSIFIC A-
- TION.
Par. . Leeches.
PARAGRAPH 532.
ACT OF 1909.
610. Lemon juice, lime juice, and sour
Orange juice, all the foregoing containing
not more than 2 per centum of alcohol.
ACT OF 1913.
532. Lemon juice, lime juice, and sour
Orange juice, all the foregoing containing
not more than 2 per centum of alcohol.
SUGGESTED RECLASSIFICA-
TION.
Par. . Lemon juice, lime juice,
and Sour Orange juice, all the foregoing
containing not more than 2 per centum
of alcohol.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
115
PARAGRAPH 534.
ACT OF 1909.
90. * * * Limestone rock asphalt,
50 cents per ton; asphaltum and bitumen,
not specially provided for in this section,
crude, if not dried, or otherwise advanced
in any manner, $1.50 per ton; if dried or
otherwise advanced in any manner, $3
per ton; * * *.
ACT OF 1913.
534. Limestone-rock 2.8-
asphalt;
phaltum, and bitumen.
SUGGESTED RECLASSIFICA-
TION.
Par. . Limestone-rock asphalt;
asphaltum, and bitumen.
PARAGRAPH 536.
ACT OF 1909.
615. Litmus, prepared or not prepared.
ACT OF 1913.
536. Litmus, prepared or not prepared.
SUGGESTED RECLASSIFICA-
TION.
(The articles provided for in this para-
graph have been transferred to a separate
paragraph to follow paragraph 624.)
PARAGRAPH 538.
ACT OF 1909.
617. Madder and munjeet, or Indian
madder, ground or prepared, and all ex-
tracts of.
ACT OF 1913.
538. Madder and munjeet, or Indian
madder, ground or prepared, and all ex-
tracts of.
SUGGE STED RECLASSIFICA-
TION.
(Natural alizarin, synonymous with
madder, was provided for along with syn-
thetic alizarin in the act of 1916. This
paragraph has therefore been omitted.
Because of administrative difficulties no
attempt should be made to distinguish
between the natural and synthetic prod-
uCU.)
PARAGRAPH 539.
ACT OF 1909.
618. Magnesite, crude or calcined, not
purified.
ACT OF 1913.
539. Magnesite, crude or calcined, not
purified.
SU G-GE STEID RECLASSIFICA-
- TION.
Par. . Magnesite, crude or ground;
and calcined magnesite and calcined
magnesia, not suitable for medicinal
use (1).
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Calcined magnesia is provided for in paragraph 42 without
restriction as to grade.
medicinal, was dutiable.
that the medicinal grade be
medicinal.”
between technical grades of calcined magnesia and some O
In the act of 1909 only calcined magnesia,
Under paragraph 42 it has been suggested
provided for as “magnesium oxide,
It is difficult, if not almost impossible, to distinguish
the
116
SCHEDULE A-CHEMICALS, OILS, AND PAINTS.
higher
rades of calcined magnesite, as both are very similar in
chemical composition. Calcined magnesite and calcined magnesia
should logically receive the same tariff treatment—either free or
dutiable.
ACT OF 1909.
620. Manna.
ACT OF 1913.
541. Manna.
PARAGRAPH 541.
SUGGESTED RECLASSIFICA-
TION.
(It has already been suggested that the
provision for this article be combined
with the provisions for a number of other
botanical drugs, which are mentioned
Specifically on the free list, in a separate
provision to follow paragraph 477, pro-
vided the articles are in a crude condi-
tion. If advanced in value or condition
they would be included under a separate
paragraph following paragraph 27.)
PARAGRAPH 544.
ACT OF 1909.
623. Marshmallow or althea root, leaves
or flowers, natural or unmanufactured.
ACT OF 1913.
544. Marshmallow or althea root, leaves
or flowers, natural or unmanufactured.
SUGGESTED RECLASSIFICA-
TION. -
(It has already been suggested that the
provision for this article be combined
with the provisions for a number of other
botanical drugs which are mentioned spe-
cifically on the free list, in a separate pro-
vision to follow paragraph 477, provided
the articles are in a crude condition. If
advanced in value or condition, they
would be included under a separate para-
graph following paragraph 27.)
PARAGRAPH 548.
ACT OF 1909.
627. Mineral salts obtained by evap-
oration from mineral waters, when ac-
companied by a duly authenticated cer-
tificate and Satisfactory proof, showing
that they are in no way artificially pre-
pared, and are only the product of a desig-
nated mineral Spring.
ACT OF 1913.
548. Mineral salts obtained by evap-
Oration from mineral waters, when ac-
companied by a duly authenticated cer-
tificate and satisfactory proof showing
that they are in no way artificially pre-
pared and are only the product of a desig-
nated mineral Spring.
SUGGE STED RECILASSIFICA-
TION.
Par. . Mineral Salts obtained by
evaporation from mineral waters, when
accompanied by a duly authenticated
certificate and Satisfactory proof showing
that they are in no way artificially pre-
pared and are only the product of a desig-
nated mineral spring.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
117
PARAGRAPH 553.
ACT OF 1909.
632. Myrobolans.
ACT OF 1913.
553. Myrobolans fruit.
SUGGESTED RECLASSIFICA-
TION.
(The article provided for in this para-
graph has been transferred and combined
with paragraph 624.)
PARAGRAPH 558.
ACT OF 1909.
636. Nux vomica.
ACT OF 1913.
558. Nux vomica.
SUGGESTED RECLASSIFICA-
TION.
|
|
Par. . Nux vomica.
i
|
PARAGRAPH 561.
ACT OF 1909.
34. Cod-liver oil, 15 cents per gallon.
639. Oils: * * * cajeput, * * *
cocoanut (not refined and deodorized),
cotton-seed, croton, * * * ichthyol,
* * * juglandium, * * * nut oil
or oil of nuts, soya-bean, olive oil ren-
dered unfit for use as food or for any but
mechanical or manufacturing purposes,
by such means as shall be satisfactory to
the Secretary of the Treasury and under
regulations to be prescribed by him;
* * * palm, palm-kernel, * * *
and also spermaceti, whale, and other
fish oils of American fisheries, and all
fish and other products of such fisheries;
petroleum, crude or refined, including
kerosene, benzine, naphtha, gasoline, and
similar oils produced from petroleum.
645. #.
ACT OF 1913.
561. Oils: Birch tar, cajeput, coconut,
cod, cod liver, cottonseed, croton, ich-
thyol, juglandium, palm, palm-kernel,
perilla, soya-bean, and olive oil rendered
unfit for use as food or for any but me-
chanical or manufacturing purposes, by
such means as shall be satisfactory to the
Secretary of the Treasury and under
regulations to be prescribed by him;
Chinese nut oil, nut oil or oil of nuts not
specially provided for in this section;
petroleum, crude or refined, and all prod-
ucts obtained from petroleum, including
kerosene, benzine, naphtha, gasoline,
paraffin, and paraffin oil; and also sper-
maceti, whale, and other fish oils of
American fisheries, and all fish and
other products of such fisheries. -
SUGGESTED RECLASSIFICA-
- TION.
Par. . Oils, animal (1): Cod and
cod liver; Spermaceti, whale, and other
fish oils of American fisheries, and all
fish and other products of such fisheries.
Par. Oils, expressed or ex-
tracted (2): Coconut, counteed. crown,
palm, palm-kernel, perilla, and soya-
* olive oil rendered unfit for use
as food or for any but mechanical or
manufacturing purposes, by such means
as shall be satisfactory to the Secretary
Of me Tºny and under regulations to:
be prescribed by him; Chinese and Jap.
anese tung oils (3); and nut oils not
Specially provided for in this section.
118 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
Par. . Oils, mineral (4): Petro-
leum, crude or refined, and all distil-
lates (5) obtained from petroleum, in
cluding kerosene, benzine, naphtha, gas-
oline, paraffin, and paraffin oil.
Par. . Ammonium ichthyolsul-
fonate (6) and all other ichthyol prepara-
tions.
REASONS FOR SUGGESTED RECLASSIFICATION.
# Paragraph 561 includes all animal, vegetable, and mineral oils free
of duty, no separation being made into the various classes of oils as in
the case of Schedule A of the dutiable list. It is suggested that the
different kinds of oils be provided for in separate paragraphs.
Birch-tar and cajeput oils are essential or distilled oils, and are the
only two essential or distilled oils on the free list. There is no
apparent reason why these two oils should receive different tariff
treatment than the other essential or distilled oils. As they are of
little commercial importance, it is suggested that specific mention be
discontinued, in which event they would fall under the provision for
“all other essential or distilled oils not specially provided for in this
section.’
Juglandium, it is believed, refers to the oil obtained from the leaves
of the walnut tree (juglans regia); it is not an article of commerce and
has been omitted in the suggested reclassification. -
(1) A separate paragraph is provided for animal oils of paragraph
561. The iº S, º ” has been adopted, similar to para-
; 44. There has been no change in the wording of paragraph 561
escribing these animal oils.
(2) Expressed or extracted vegetable oils in paragraph 561 have
been provided for in a separate paragraph, the heading of which is
similar to paragraph 45, Schedule A. -
(3) The phrase “Chinese nut oil” has been changed to Chinese and
Japanese tung oils, so as to remove any doubt as to the inclusion of
peanut oil within the term “nut oil.” -
(4) Petroleum and its products have been given a separate para-
graph under the heading of “Oils, mineral.”
(5) It is suggested that the word “products” be changed to
“distillates,” because it is believed that the intent of this paragraph
was to include only such products as gasoline, benzine, and naphtha,
which are obtained from petroleum by distillation processes. Petro-
leum is also the crude material from which a number of refined chem-
ical compounds, e. g., ethyl chloride, isopropyl alcohol, etc., can be
prepared by complex methods of chemical synthesis. These mate-

SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 119
rials are more highly manufactured products, which presumably are
dutiable under general provisions in §. A, although there is at
least the possibility that they might be regarded as “products
obtained from petroleum.”
(6). A separate provision has been suggested for ichthyol, as it is
not similar in chemical composition to the other oils of paragraph
561. Ichthyol has been held to be the commercial or trade name
for ammonium ichthyol-sulphonate. (G. A. 5703, T. D. 25376.) This
material, imported as “lithyol,” “sulphoichthyonat,” “sulphothyol,”
and “isarol,” or under other trade names, has been held to come
within the provision for ichthyol. (Abstract 29519, T. D. 32767;
Abstract 30570, T. D. 32960; Cassett v. United States, 2 Ct. Cust.
Appls., 465, of 1912; T. D. 36028, of 1915.) -
chthyol sodium (sodium ichthyol sulphonate), however, has been
classified as a medicinal preparation rather than as ichthyol. (Ab-
stract 20720, T. D. 29597). This decision was affirmed by the Circuit
Court for the Southern District of New York. In the absence of
words indicating intention to include the different ichthyol products,
the provision for ichthyol was declared not to include ichthyol
sodium. (Merck v. United States, 177 Fed., 482, T. D. 30315.)
There is no reason to believe that Congress originally intended that
one compound of ichthyol should be admitted free of duty while
others should be declared dutiable. It is therefore suggested that a
Separate fº. (either on the free list or dutiable list) be made t
include all preparations of ichthyol. .
PARAGRAPH 564.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
642. Orchil, or orchil liquid. -
(The article in this paragraph has been
ACT OF 1913. transferred to a separate paragraph to
follow paragraph 624.)
564. Orchil, or orchil liquid. - -
PARAGRAPH 569.
ACT OF 1909. SUGGESTED RECLASSIFIC A-
TION.
57. Paris green, and London purple,
15 per centum ad valorem. - Par. . Paris green and London
ACT OF 1913. purple.
569. Paris green and London purple.
. PARAGRAPH 574.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
651. Phosphates, crude.
Par, . Phosphates, crude, and
ACT OF 1913.
apatite (1).
574. Phosphates, crude.
1:20
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The provision for apatite in paragraph 401 has been transferred
to this paragraph, since apatite is a phosphate mineral used primarily
for fertilizer manufacture.
PARAGRAPH 575.
ACT OF 1909.
59. Phosphorus, 18 cents per pound.
ACT OF 1913.
575. Phosphorus.
SUGGESTED RECLASSIFICA-
TION.
Par. Q Phosphorus.
PARAGRAPH 580.
ACT OF 1909.
655. Potash, crude, or “black salts;”
carbonate of potash, crude or refined;
hydrate of, or caustic potash, not in-
cluding refined in sticks or rolls; nitrate
of potash or saltpeter, crude; Sulphate
of potash, crude or refined, and muriate
of potash.
61. Caustic potash, or hydrate of, re-
fined, in Sticks or rolls, 1 cent per pound;
64. * * * cyanide of potassium,
12% per centum ad valorem.
ACT OF 1913.
580. Potash: Crude, or “black salts”;
carbonate of; cyanide of; Sulphate of;
hydrate of, when not containing more
than 15 per centum of caustic soda;
nitrate of, or Saltpeter, crude; and muri-
ate of. .
SUGGESTED RECLASSIFICA-
TION.
Par. ... Potassium (1): carbonate
(2); cyanide; sulphate; hydroxide (3) or
caustic potash, * not containing more
than 15 per centum of caustic soda;
nitrate or Saltpeter, crude; chloride or
muriate of potash (4).
Par.
. Kainite, wood ashes and
beet-root ashes (5).
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) As previously, pointed out under
speaking, refers to potassium oxide.
potassium.”
strictl
with the more accurate term “
aragraph, 64, “potash,”
It has been replaced
(2) “Black salts” used in paragraph 580, is not at present com-
monly applied to crude potassium carbonate.
The term is indefinite
and consequently has been omitted. .
(3) “Hydrate of ’’ used in connection with caustic potash, strictly
speaking, refers to those chemical compounds containing water of
crystallization and does not designate an hydroxide. For this reason
the correct term “hydroxide” has been substituted. As potassium
hydroxide is commercially designated as caustic potash, this term
has been added. . . . . . . . . . . . . . .
(4) “Chloride” has been added to “muriate of potash” in accord-
ance with modern chemical usage. . . . . . . . .
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 121
(5) Kainite and wood and beet-root ashes are crude articles used
rimarily for their potash content. Kainite has been transferred
rom paragraph 525 and wood and beet-root ashes from paragraph
407, to the separate paragraph following paragraph 580, which
provides for “potash salts.” s
PARAGRAPH 584.
ACT OF 1909. SUGGESTED RECILASSIFICA-
TION.
658. Quinia, Sulphate of, and all alka- -
loids or salts of cinchona bark. Par. . Quinine Sulphate (1) and
ACT OF 1913. - -
all alkaloids and salts of alkaloids derived
584. Quinia, Sulphate of, and all alka-
loids or salts of cinchona bark.
from cinchona bark (2).
REASONS FOR THE SUGGESTED RECLASSIFICATION.
(1) Quinine sulphate is the most important salt of quinine, which
is the principal alkaloid derived from cinchona bark. The term
“quinia, ºte of ” is obsolete in both commerce and science, and
it is suggested that it be replaced with the term “quinine sulphate.”
The latter is the accepted trade designation and is also used by the
United States Pharmacopoeia.
(2) A salt of cinchona bark is a chemical impossibility, and there-
fore if the provision in the present law were construed literally it
would be meaningless. (United States v. Merck, 8 Ct. Cust. Appls.,
137.). Presumably the intent of the paragraph was to include all of
the alkaloids which can be found in and may be extracted from cin-
chona bark and, in addition, all salts obtained by treating these
alkaloids with acids and other chemical compounds. The wording
has been changed to give effect to this intent.
PARAGRAPH 585.
ACT OF 1909. SU GGE STED IRECLASSIFICA-
TION.
659. Radium.
Par. . Radium, and Salts of, and
ACT OF 1913. -
585. Radium and salts of, radioactive | radioactive substitutes.
substitutes, Selenium and salts of.
Par. . Selenium, and salts of.
REASONS FOR THE SUGGESTED RECLASSIFICATION.
It is suggested that the provisions for radium and selenium salts
be separated, since there is no logical reason for combining them.
Selenium is an element similar to sulphur and is produced in consid-
erable quantities as a by-product in refining copper. There are but
few commercial uses for selenium and its salts, although recent ex-
periments indicate the possibility of important future developments.
I22
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 588.
ACT OF 1909.
662. Rennets, raw or prepared.
ACT OF 1913.
588. Rennets, raw or prepared.
SUGGESTED RECLASSIFICA-
TION.
Par. . Rennet, raw or prepared.
REASONS FOR SUGGESTED RECLASSIFICATION.
“Rennet” rather than rennets is the proper term.
- PARAGRAPH 591.
ACT OF 1909.
665. Salicin.
ACT OF 1913.
591. Salicin.
|
|
i
i
!
|
SUGGESTED RECLASSIFICA-
TION.
Par. . Salicin.
PARAGRAPH 592.
ACT OF 1909.
666. Salep, or Salop.
ACT OF 1913.
592. Salep, or salop.
SUGGESTED RECLASSIFICA-
TION.
(Salep or Salop is an article which is
practically obsolete in the drug trade.
It is suggested that its specific mention
be abandoned. Lacking specific enumer-
ation, it would presumably be included
in the provisions corresponding to para-
graphs 27 and 477.)
PARAGRAPH 593.
ACT OF 1909.
295. Salt in bags, sacks, barrels, or other
packages, 11 cents per one hundred
pounds; in bulk, 7 cents per one hundred
pounds: Provided, That imported salt in
bond may be used in curing fish taken by
vessels licensed to engage in the fisheries
and in curing fish on the shores of the
navigable waters of the United States
under such regulations as the Secretary
of the Treasury shall prescribe; and upon
proof that the salt has been used for either
of the purposes stated in this proviso, the
duties on the same shall be remitted:
Provided further, That exporters of meats,
whether packed or smoked, which have
been cured in the United States with
imported salt, shall, upon satisfactory
proof, under Such regulations as the Sec-
retary of the Treasury shall prescribe,
that such meats have been cured with
imported Salt, have refunded to them
from the Treasury the duties paid on the
Salt So used in curing such exported meats,
in amounts not less than $100.
ACT OF 1913.
593. Salt.
SUGGESTED RECLASSIFICA-
TION.
(The provision for Salt has been trans-
ferred and combined with other Sodium
Salts in paragraph 605.) e
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
123
PARAGRAPH 594.
ACT OF 1909.
68. Santonin, and all salts thereof con-
taining 80 per centum or over of Santonin,
50 cents per pound.
ACT OF 1913.
594. Santonin, and its combinations
with acids not subject to duty under this
Section.
SUGGESTED RECLASSIFICA-
TION.
Par. . Santonin, and Salts of
(1),
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Santonin is a high-priced medicinal, and the acids which enter
into the manufacture of its salts are comparatively cheap. Since
santonin is the component of chief value, it is suggested that the
provision be made to include all salts of Santonin regardless of
whether or not the acids used in the salts are free or dutiable.
PARAGRAPH 596.
SUGGESTED RECILASSIFICA-
TION.
ACT OF 1909.
669. Sheep dip. Sh dip (1)
. Sheep dip iº
|
Par.
ACT OF 1913.
596. Sheep dip.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Some of the most important articles imported under this pro-
vision are crude coal-tar products, such as “cresylic acid dip” con-
taining about 50 per cent of cresylic acid and a suitable oil, such as
linseed or soya bean. Creosote oil (dip oil containing 20 to 25 per
cent of tar acids mixed with rosin soap) is also used as sheep dip.
These sheep dips are among the most important coal-tar products not
included in the provisions of the coal-tar paragraphs in the suggested
reclassification.
PARAGRAPH 605.
SUGGESTED RECLASSIFICA-
TION.
ACT OF 1909.
75. Soda ash, one-fourth of 1 cent per
pound; arseniate of Soda, 1 cent per
pound.
77. Sulphate of soda, or Salt cake, or
niter cake, $1 per ton.
76. Silicate of soda, or other alkaline
silicate, three-eighths of 1 cent per
pound.
677. Soda, nitrate of, or cubic nitrate.
Par. . Sodium (1): Arsenate (2);
carbonate (4), calcined, or Soda ash; chlo-
ride, or Salt (3); cyanide; nitrate (5); sili-
ACT OF 1913. cate; and sulphate, crude, or salt cake
605. Soda, arseniate of, cyanide of,
sulphate of, crude, or salt cake and
niter cake, soda ash, silicate of, nitrate
of, or cubic nitrate.
and niter cake.
124 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The term “soda” has been inaccurately used in commerce to
designate all sodium compounds, and particularly sodium carbonate
and sodium bicarbonate. The correct method of naming these
compounds is to use the name of the metal—sodium—followed by
the word designating the acid or other constituent combined wit
the metal. For example, sodium arsenate is preferable to arsenate
of soda. The word sodium has been substituted for “soda,” through-
out this paragraph.
(2) The spelling of “arseniate” is obsolete, the correct and gen-
erally used spelling being arsenate.
(3) The provision for salt in paragraph 593 has been transferred
to this paragraph.
(4) Sodium carbonate is commonly designated in the trade as
soda ash; only the latter term was used in paragraph 605, act of 1913.
The term “carbonate” was added in order to include the correct
chemical name. The word “calcined” has also been added to
prevent conflict with the hydrated sodium carbonate dutiable
under paragraph 67. -
(5) The term “cubic nitrate” in paragraph 605 is an old trade
term little used at present. This term has been omitted in the
suggested paragraph. .
PARAGRAPH 615.
ACT OF 1909. SUGGE STED RECLASSIFICA- *
TION.
685. Strontia, oxide of, and protoxide
of strontian, and strontianite, or mineral Par. . Strontium oxide (1); stron-
carbonate of strontia.
*
ACT OF 1913. tianite or mineral strontium carbonate
615. Strontia, oxide of, protoxide of º
strontian, and strontianite or mineral 2); celestite or mineral strontium sul-
carbonate of strontia. -
(
phate (3).
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) “Strontia, oxide of,” used in paragraph 615 is an old term, now
obsolete, and has been replaced with the chemical term strontium,
oxide, in accordance with present usage. The old term “protoxide
of strontian,” referring to the above compound, has been omitted,
as this is also obsolete.
(2) “Carbonate of strontia” has been replaced with strontium,
º in accordance with modern methods of naming this com-
Oll]]Cl.
(3) The mineral strontiamite named in paragraph 615 is of Small
importance as a basis for the manufacture of various strontium
compounds. The mineral celestite is commonly used for this purpose,
and consequently has been added to the paragraph as follows:
Celestite, or mineral strontium sulphate. Presumably, the mineral
celestite is now free of duty under paragraph 549.
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 125
PARAGRAPH 616.
ACT OF 1909. SUGGE STED RECLASSIFICA-
- TION.
80. Strychnia, or strychnine, and all -
salts thereof, 15 cents per ounce. Par. , Strychnine (1), and salts
ACT OF 1913.
of (2).
616. Strychnia or strychnine, and its
combinations with acids not subject to
duty under this section.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) “Strychnia,” used in paragraph 616, is obsolete. “Strych-
nine” is the accepted trade designation, and is also used in the
United States Pharmacopoeia.
(2) It is suggested that the provision be broadened to include all
salts of Strychnine. Strychnine is the component material of chief
value, and it does not appear logical to limit the provision merely to
those salts obtained by “combinations with acids not subject to duty
under this section.”
PARAGRAPH 617.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
81. Sulphur, refined or sublimed, or
flowers of, $4 per ton. Pal'. . Sulphur in any form (1);
686. Sulphur, lac or precipitated, and
sulphur or brimstone, crude, in bulk,
sulphur ore as pyrites, or Sulphuret of and sulphur ore, such as pyrites or sul-
iron in its natural state, containing in
excess of 25 per centum of sulphur, and
sulphur not otherwise provided for in phuret of iron in its natural state, and
this section.
ACT OF 1913. spent oxide of iron (2), containing more
617. Sulphur in any form, brimstone,
and sulphur ore as pyrites, or Sulphuret than 25 per centum of sulphur.
of iron in its natural state, containing in
excess of 25 per centum of sulphur.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The word “brimstone” has been omitted, because ordinarily
applied to the crude form of sulphur and now little used in commerce.
2) “Spent oxide of iron” has been added to this paragraph.
It is obtained as a by-product of the purification of coal gas. The
iron oxide in this process removes any sulphur and other compounds
contained in the crude gas resulting from distillation of coal. It
usually contains a fairly high percentage of Sulphur and is used as
a source of sulphur similar to pyrites in the manufacture of sulphuric
acid. It is suggested that the same limiting sulphur content be
applied to spent iron oxide as to pyrites.
126
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 618.
ACT OF 1909.
82. Sumac, ground, three-tenths of 1
cent per pound.
ACT OF 1913.
618. Sumac, ground or unground.
SUGGESTED RECLASSIFICA-
TION.
(The provision for sumac in paragraph
618 has been transferred and combined
with paragraph 624.)
PARAGRAPH 621.
ACT OF 1909.
[Not specially provided for.]
ACT OF 1913.
621. Talcum, steatite, and French
chalk, crude and unground.
SUGGESTED RECLASSIFICA-
TION.
Par. . Talc, steatite or Soap-
stone, and French chalk, all the fore-
going, crude and unground (1).
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The wording of this paragraph has been changed to correspond
with the suggestion for paragraph 69 which provide for these mate-
rials when ground or otherwise manufactured.
PARAGRAPH 623.
ACT OF 1909.
688. Tamarinds.
ACT OF 1913.
623. Tamarinds.
SU GGE STED RECLASSIFICA-
TION.
Par. . Tamarinds.
PARAGRAPH 624.
ACT OF 1909.
22. * * * Extracts of bark, such as
are commonly used for * * * tan-
ning, not specially provided for in this
section, seven-eighths of 1 cent per pound;
* * * extracts of quebracho, not ex-
ceeding in density twenty-eight degrees
Baumé, one-half of 1 cent per pound; ex-
ceeding in density twenty-eight degrees
Baumé, three-fourths of 1 cent per
pound; extracts of hemlock bark, one-half
of 1 cent per pound; extracts * * * of
woods other than dyewoods, not specially
provided for in this section, five-eighths
of 1 cent per pound * * *.
559. Drugs, such as * * * nuts,
nutgalls, * * * and woods used ex-
pressly for dyeing or tanning; any of the
foregoing which are natural and uncom-
pounded drugs and not edible and not
specially provided for in this section, and
SUGGESTED RECLASSIFICA-
TION.
Par. . Fustic wood, hemlock
bark, logwood, mangrove bark, oak bark,
quebracho wood, wattle bark (1); divi
divi, myrobalans fruit, Sumac, valonia
(2); nutgalls or gall nuts (3), and all arti-
cles of vegetable origin (4) used for dye-
ing, coloring, staining, or tanning, whether
SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
127
are in a crude state, not advanced in value
or condition by any process or treatment ||
whatever beyond that essential to the
proper packing of the drugs and the pre-
vention of decay or deterioration pending
manufacture: Provided, That no article
containing alcohol, or in the preparation
of which alcohol is used, shall be admitted
free of duty under this paragraph.
499. Articles in a crude state used in
dyeing or tanning not specially provided
for in this section.
20. Drugs, such as * * * nuts,
nutgalls, * * * and woods used ex-
pressly for dyeing or tanning; any of the
foregoing which are natural and uncom-
pounded drugs and not edible, and not
specially provided for in this section, but
which are advanced in value or condition
by any process or treatment whatever be-
yond that essential to the proper packing
of the drugs and the prevention of decay
or deterioration pending manufacture,
one-fourth of 1 cent per pound, and in
addition thereto 10 per centum ad
valorem: Provided, That no article con-
taining alcohol, or in the preparation of
which alcohol is used, shall be classified
for duty under this paragraph. -
ACT OF 1913.
624. Tanning . material: Extracts of
quebracho, and of hemlock bark; extracts
of oak and chestnut and other barks and
woods other than dyewoods such as are
commonly used for tanning not specially
provided for in this section; nuts and nut-
galls and Woods used expressly for dyeing
or tanning, whether or not advanced in
value or condition by shredding, grinding,
chipping, crushing, or any other process;
and articles in a crude state used in dye-
ing or tanning; all the foregoing not con-
taining alcohol and not specially provided
for in this section.
crude or advanced in value or condition
by any mechanical process (5); all the
foregoing not containing alcohol and not
specially provided for in this retion.
Par. . (6) Annatto and all ex-
tracts of (7), archil or archil liquid (8),
cochineal (9), cudbear (10), gambier (11),
litmus prepared or unprepared (12), and
turmeric (13); all of the foregoing not con-
taining alcohol.
REASONS FOR SAJGGESTED RECLASSIFICATION.
(1) The following important crude materials used in tanning or
dyeing were not mentioned in paragraph 624, of the act of 1913.
They deserve special mention.
Of the ºrted dyewoods, fustic ranks next to logwood in quan-
tity importe
Hemlock bark and oak bark are the most important domestic barks
used in tanning. -
Logwood is the most important natural dyewood; it is imported
into this country in large quantities for the preparation of logwood
extracts.
Mangrove bark is an important tanning material, largely of foreign
Origin.
128 SCHEDULE A–CHEMICALS, OILS, AND PAINTS.
Quebracho wood is one of the most important sources of tanning
extract and is imported into this country for the preparation of
extract. .
Wattle bark, a comparatively new tanning material, is of sufficient
importance to deserve special mention. -
(2) There are several crude materials used in the manufacture of
dyeing and tanning extracts, which are mentioned in separate and
widely scattered paragraphs of the free list in the act of 1913. These
crude materials have all been reclassified under paragraph 624.
The products which are transferred from other paragraphs of the
free list to paragraph 624 include divi divi, paragraph 475; myro-
balans fruit, paragraph 553; Sumac, ground or unground, paragraph
16; and valonia, paragraph 639. In accordance with modern usage
the old spelling of myrobolans has been changed to “myrobalans.”
(3) “Nuts and nutgalls,” used in paragraph 624, has been rephrased
as mutgalls or gallnuts for the following reasons: Nuts used as a crude
material in dyeing and tanning are included in the general phrase “all
articles of vegetable origin.” Nutgalls are also known as gallnuts;
both terms should be used.
(4) The phrase “and all articles of vegetable origin” includes not
only nuts and woods mentioned in paragraph 624, but all other
articles such as barks, pods, fruits, etc., used in dyeing or tanning.
(5) The phrase “any mechanical process” has been substituted for
“shredding, grinding, chipping, crushing, or any other process,” as it
is briefer and includes the different mechanical methods enumerated
in paragraph 624, act of 1913.
6) The articles included in the second part of the suggested para-
graph were separately enumerated in several different paragraphs of
the free list, act of 1913, and the suggested paragraph (to follow the
present paragraph 624) is a combination of these scattered provisions.
The preparations included in this paragraph and used in dyeing or
tanning are all of foreign origin and not made in the United States.
They should logically receive the same tariff treatment—either free
or dutiable. #
(7) The terms “roucou, rocoa, or Orleans” used as synonyms for
annatto in paragraph 399 of the act of 1913, are no longer in com-
mercial usage. They should be omitted, as the use of the single
phrase in paragraph 399 “annatto, and all extracts of ’’ is sufficient.
(8) The old spelling “ orchil or orchil liquid” should be changed in
accordance with modern usage to “archil or archil liquid.” They
were separately mentioned in paragraph 564 of the act of 1913.
(9) Cochineal was specially provided for in paragraph 455, act of
1913. Cochineal is the only important dye of animal origin.
(10) Cudbear, closely related to archil and archil liquid, was
separately mentioned in paragraph 469, act of 1913. It has been
included in this paragraph along with other similar materials.
(11) Gambier, used both in dyeing and tanning, was separately
mentioned in paragraph 492, and was also provided for specifically
by the term “terra japonica,” paragraph 630, which is an obsolete
name previously applied to gambier. Gambier has been specially
mentioned in paragraph 624, and accordingly terra japonica has
been omitted. (See par. 630.)

}
SCHEDULE A–CHEMICALS, OILS, AND PAINTS. 129
(12) Litmus was mentioned in paragraph 536 of the act of 1913.
This is closely related to archil and cudbear, both of which are classi-
fied under paragraph 624. g &
(13) Turmeric was specially mentioned in paragraph 634, act of
1913, and has been transferred to this paragraph.
NoTE-The extracts specially mentioned in paragraph 624—quebracho, hemlock,
oak, and chestnut—have been transferred to paragraph 30, which see.
PARAGRAPH 626.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION. -
690. Tar and pitch of wood.
Par. . Tar and pitch of wood.
ACT OF 1913.
626. Tar and pitch of wood. |
PARAGRAPH 630.
ACT OF 1909. SUGGESTED RECLASSIFICA–.
TION.
694. Terra japonica.
(Terra japonica is an old and obsolete
ACT OF 1913. name for gambier, provided for in para-
* graph 492. It is suggested that gambier
630. Terra japonica. be provided for specifically in a para-
graph to follow paragraph 624.)
PARAGRAPH 634.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
698. Turmeric.
(The article in this paragraph has been
ACT OF 1913. transferred to a separate paragraph to
follow paragraph 624.)
634. Turmeric.
PARAGRAPH 635.
ACT OF 1909. SUGGESTED RECLASSIFICA-
- TION.
699. Turpentine, Venice.
700. Turpentine, spirits of. Par. . Turpentine, gum (1) and
ACT OF 1913.
spirits of.
635. Turpentine, Venice, and spirits of.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) Venice turpentine is a special grade of gum turpentine. The
word “gum” has been used instead of Venice, as it describes all kinds
and grades of gum turpentine.
40650—21—9
130 SCHEDULE A-CHEMICALS, OILS, AND PAINTS.
PARAGRAPH 638.
ACT OF 1909. - SUGGESTED RECLASSIFICA-
TION. -
703. Uranium, oxide and salts of.
Par. . Uranium, oxide and Salts
ACT OF 1913.
638. Uranium, oxide and salts of. of.
PARAGRAPH 639.
ACT OF ig09. SUGGESTED RECLASSIFICA-
TION.
705. Walonia.
(Valonia has been transferred to para-
ACT OF 1913. graph 624.)
639. Walonia. -
PARAGRAPH 641.
ACT OF 1909. SUGGESTED RECLASSIFICA-
TION.
707. Wax, vegetable or mineral.
- Par. . Wax, animal (1), vege-
ACT OF 1913.
641. Wax, vegetable or mineral. table, or mineral.
REASONS FOR SUGGESTED RECLASSIFICATION.
(1) The various waxes, whether animal, vegetable, or mineral, are
similar in physical properties and in chemical composition. The
provision for animal wax has been added to this pºp, and the
provision for beeswax, omitted from paragraph 412. Although
Chinese or insect wax has been classed as a vegetable wax, it is
really an animal wax.
PARAGRAPH 646.
ACT OF 1909. SUGGESTED RECILASSIFICA-
TION.
711. Witherite.
ACT OF 1913.
JPar. . Witherite.
646. Witherite.
Page
Acetic anhydride----------------------------------------------------------- 7
Acetone------------------------------------------------------------------- 11
Acetone oil---------------------------------------------------------------- II.
Acetylenetetrachloride----------------------------------------------------- 26
Acids and acid anhydrides---------------------------------------------- . . . 7, 96
Acids:
Acetic----------------------------------------------------------------- 96
Arsenic---------------------------------------------------------------- 96
Arsenious-------------------------------------------------------------- 96
Boric------------------------------------------------------------------ 7
Chloracetic----------------------------------------------------------- 7
Chromic--------------------------------------------------------------- 96
Citric------------------------------------------------------------------ 7
Coal-tar---------------------------------------------------------------- 26
Color------------------------------------------------------------------ 29
Formic--------------------------------------------------------------- 7
Gallic----------------------------------------------------------------- 7
Glycerophosphoric------------------------------- |- - - - - - - - - , s sº e = * * * * * * * * * 25
Hydrochloric...... * * * * * * * * * * * * * * * * * * * * sº º sº sº sº º ºs º º sº ſº º gº º º sº gº tº e º 'º s = * * * * * * * * * 96
Hydrofluoric---------------------------------------------------------- 96
Lactic---------------------------------------------------------------- 7
Mixed---------------------------------------------------------------- 96
Muriatic-------------------------------------------------------------- 96
Nitric----------------------------------------------------------------- 96
Oleic----------------------------------------------------------------- 8
Oxalic---------------------------------------------------------------- 8
Phosphoric------------------------------------------------------------ 96
Pyrogallic--------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8
Stearic--------------------------------------------------------------- 8
Sulphuric-------------------------------------------------------------- 96
Tannic--------------------------------------------------------- - * * * * * * = 8
Tartaric-------------------------------------------------------------- 8
Valerianic------------------------------------------------------------- 96
Aconite------------------------------------------------------------------- 39, 107
Alcohol, methyl or Wood---------------------------------------------------- -
Alcoholic compounds and preparations...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Alizarin assistant----------------------------------------------------------- 57
Alkaloids, cinchona------------------------------------------------------- 12]
Almond oil, bitter---------------------------------------------------------- 62
Almond oil, sweet--------------------------------------------------------- 56
Aloes--------------------------------------------------------------------- 39, 107
Althea root-------------------------------------------------------------- 39, 107
Alum cake------------------------------------------------------------- - - - . 13
Aluminum compounds, n. S. p. f. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Aluminum hydroxide------------------------------------------------------ 13
Aluminum sulphate------------------------------------------------------- 13.
Aluminous cake------------------------------------------------------------ 13.
Amber-------------------------- ----------------------------------------- 49, 111
Amber chips.------------------------------------------------------------- III
Ambergris----------------------------------------------------------------- 70,
Amberoid. --------------------------------------------------------------- 49
Ammonia alum------------------------------------------------------------ 13. ,
Ammonium aluminum sulphate--------------------------------------------- I3.
Ammoniacal gas liquor----------------------------------------------------- 15
Ammonium carbonate----------------------------------------------------- 15
Ammonium chloride-------------------------------------------------------- 15
Ammonium ichthyolsulfonate----------------------------------------------- 118
132 INDEX.
Ammonium— Page.
Nitrate--------------------------------------------------------------- 98
Perchlorate----------------------------------------------------------- 98
Sulphate-------------------------------------------------------------- 98
Ammonium phosphate----------------------------------------------------- 15
Amyl acetate. ------------------------------------------------------------ 41
Amyl alcohol------------------------------------------------------------- 46
Anethol------------------------------------------------------------------ 70
Anhydrous ammonia, liquid------------------------------------------------ 15
Anise oil----------------------------------------------------------------- 62
Annatto------------------------------------------------------------------- 127
Antimony compounds, n. S. p. f. -------------------------------------------- 15
Antimony oxide. --------------------------------------------------------- 15
Antimony Sulphides------------------------------------------------------- 15
Antitoxins.--------------------------------------------------------- - - - - - - 99
Apatite------------. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 119
Aqua ammonia------------------------------------------------------------ 15
Arabic gum--------------------------------------------------------------- 49
Archil or archilliquid----------------------------------------------------- 127
Argols--------------------------------------------------------------------- 16
Aromatic chemicals: -
Coal-tar. ---------------- --------------------------------------------- 29
Not coal-tar------------------------------------------------------------ 70
Arsenic, White------------------------------------------------------------- 96
Asafetida-----------------------1 ---------------------------------------- 39, 107
Ashes, Wood and beet-root. ------------------------------------------------ I20
Asphalt------------------------------------------------------------------ 115
Asphaltum--------------------------------------------------------------- 115
Azides. ----------------------------------------------------------------- ... 108
Bacterins------------------------------------------------------------------ 99
Baking Soda--------------------------------------------------------------- 89
Balsams------------------------------------------------------------------- 17
Barium—
Carbonate.------------------------------------------------------------ 18
Chloride-------------------------------------------------------------- 18
Dioxide--------------------------------------------------------------- 18
Nitrate--------------------------------------------------------------- 18
Barium sulphate----------------------------------------------------------- 75
Barks, quinine------------------------------------------------------------ 100
Barytes------------------------------------------------------------------- 75
Bauxite, refined. --------------------------------------------------------- 13
Bay rum----------------------------------------------------------------- 69
Benzine------------------------------------------------------------------ 118
Bergamot oil-------------------------------------------------------------- 62
Bismuth, compounds and Salts---------------------------------------------- 20
Bitumen----------------------------------------------------------------- 115
Blackings----------------------------------------------------------------- 19
Blanc fixe----------------------------------------------------------------- 75
Bleaching powder---------------------------------------------------------- 19
Black pigments----------------------------- ------------------------------- 77
Blood, dried, n. S. p. f. ---------------------------------------------------- 101
Blue pigments------------------------------------------------------------- 76
Blue Vitriol--------------------------------------------------------------- 101
OIle—
Ash------------------------------------------------------------------- 101
Dust----------------------------------------------------------------- I 01
Meal. ---------------------------------------------------------------- I ()].
Bone black---------------------------------------------------------------- I03
Bone char---------------------------------------------------------------- 103
Bones--------------------------------------------------------------------- 101
Borate of lime, crude------------------------------------------------------- 102
Borate of Soda, crude------------------------------------------------------ 102
Borax, crude-------------------------------------------------------------- 102
British gum--------------------------------------------------------------- 91
Bromine------------------------------------------------------------------- 102
Buchu leaves-------------------------------------------------------------- 5l.
Burgundy pitch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . J.02
INDEX, 133
Page
Butyl alcohol---------------------------------------------... . . . . . . . . . . . . . 46
Caffeine and compounds... . . . . . . . . . . . - - - - - - - - - - - - - '• * * * * * * * * * * * * * * * * * * * ~ * ~ * = 20
Calcium— -
Acetate--------------------------------------------------------- * - - - - - - 102
Carbide. ------------------------------------------------------------. 102
Chloride, crude------------------------------------------------------. I02
Cyanamid------------------------------------------------------------ 102
Mitrate--------------------------------------------------------------- 102
Calcium sulphate, precipitated..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Calcium tartrate, crude-----------------------------------...... . . . . . . . . . . . . 17
Calomel------------------------------------------------------------------ 20
Camphor------------------------------------------------------------------ 53
Camphor oil--------------------------------------------------------------. 62
Capsules----------------------------------------------------------------- 23
Caraway oil--------------------------------------------------------------- 62
Carbon tetrachloride...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Carbons:
Pecolorizing---------------------------------------------------------- 103
Peodorizing---------------------------------------------------------- 103
Casein--------------------------------------------------------------------- 114
Casein compounds--------------------------------------------------------- 36
Casein glue---------------------------------------------------------------- 47
Cassia oil------------------------------------------------------------------ 62
Castile soap--------------------------------------------------------------. 88
Caustic potash------------------------------------------------------------ 120
Caustic soda-------------------------------------------------------------- 90
Castor oil----------------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 56
Castor oil, Sulphonated.----------------------------------------------------- 57
Castoreum---------------------------------------------------------------- 70
Celestit?----------------------------------------------------------------- 124
Cellulose esters.----------------------------------------------------------- 36
Ceramic and glass glazes and enamels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Cerium fluoride and salts........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -------------- 53
Chalk, crude------------------------------------------------------------- 103
Charcoal----------------------------------------------------------------- 103
Chemical compounds, n. S. p. f. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Chestnut extract.---------------------------------------------------------- 42
Chalk-------------------------------------------------------------------- 21
Chicle.------------------------------------------------------------------- 49
Chinese and Japanese tung oils--------------------------------------------- 117
Chlorinated lime------------------------------------------------------------ 19
Chloroform--------------------------------------------------------------- 26
Chorophyll extract. ------------------------------------------------------ 42
Chrome green.------------------------------------------------------------- 78
Chrome yellow-------------------------------------------------------- - - - - 78
Chromium colors---------------------------------------------------------- 78
Chromium hydroxide, crude------------------------------------------------ 104
Cinchona bark------------------------------------------------------------- 100
Cinnamon oil-------------------------- • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 62
Citral-------------------------------------------------------------------- 70
Citrate of lime------------------------------------------------------------ 52
Citronella oil-------------------------------------------------------------- 62
Civet. ------------------------------------------------------------------- 70
Cleaning and polishing—
Creams--------------------------------------------------------------- 19
Powders. . . . . . . . . . ------------------- * = = * * * * * * * * * * * * * * * * * * * * * * * * * * * * * = 19
Coal-tar colors, dyes, or stains. . . . . . . . . . . s = - - - - - - - - - - - - - - - - - e < * * * * * * * * ~ * ~ * ~ * 29
Coal-tar crudes----- - - - - - - - - - - - - - - - - - * * * * * * = * * * * * = s. s = < * * * * * * * * * * * * * * * * * * * * * * * 104
Coal-tar flavors----- . . . . . . . . . . . se sº e s • * * * * * * • * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * = 29
Coal-tar intermediates.----------------------------------------------------- 26
Coal-tar medicinals-------------------------------------------------------- 29
Coca leaves--------------------------------------------------------------- 51
Cocaine. ----------------------------------------------------------------- 66
Cochineal----------------------------------------------------------------- 127
Cocculus indicus. . . . . . . . . . . . . . . . . . . . . . . . . . . ------------------------------ 39, 107
Coconut oil---------------------------------------------------------------- 117
40650—21—10
- Page.
Cod and cod-liver oil--------------- - - - - - - - - - - - - - - - - - ----------------------- 117
Collodion------------------------ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - • - - - - - - - 36
Color lakes, coal-tar---------------------------------------------------- - - - - 29
Colors, dyes, Qr stains, coal-tar---------------------------------------------- 29
Corrosive sublimate-------------------------------------------------------- 20
Copaiba balsam------------------------------------------------------------ 17
Copals. --------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Ill
Copper: - . . . . . . .
Acetate--------------------------------------------------------------- 101
Subacetate. . . . . . . . ------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - ... • - - - - - - - - - - - - - - - 101.
Sulphate----------- ------------------------------- - - - - - - - - - - - - - - - - - - - - 101
Copperas. --------- -------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 106.
Cottonseed oil----------------- - - - - - - - - - - - - - - - - - - - = * * = • - - - - - - -------------- 117
Court-plaster. . . . . . . . . . . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 75.
Cream of tartar - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 16.
Croton oil. . . . . . ----------------------------------------------------------- 117
Cudbear. ---------------------------------------- ... e s e s se s = * * * * * * * * * * * * * * * * * 127
Cutch 3xtract. ----------------------------------------------------------- 42.
Damar------------------------------------------------------------------- Ill
Dandelion roots----------------------------------------------------------- 106.
Dextrine and dextrine substitutes.----------------------------------------- 91
Diethyl sulphate--------------------------------------------------------- 41
Dimethyl sulphate------------------------------------------------------- 41
Divi-divi----------------------------------------------------------------- 126,
Divi-divi extract---------------------------------------------------------- 42.
Dragon's blood------------------------------------------------------------ Ill
Drugs, botanical..... ----------------------------------------------------- 38, 107
Drugs, crude------------------------------------------------------------- 107
Dye intermediates-------------------------------------------------------- 26.
Dyeing and tanning materials, crude---------------------------------------- 126
Dyeing extracts---------------------------------------------------------- 42.
Ecgonine. . . . . . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 66.
Enfleurage greases. . . . . . . . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 70.
Epsom Salts - - - - - - - - - - ---------------------------------------------------- 52.
Ergot.---------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 41
Ethers and esters - - - - - - - - - - - - --------------------------------------------- 4].
Ethyl acetate- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4].
Ethyl chloride------------------------------------------------------------ 4l
Ethyl ether. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 41
Ethyl methyl ketone.----------------------------------------------------- II
Eucalyptus oil------------------------------------------------------------ 62
Explosives, coal-tar-------------------------------------------------------- 29
Explosives, n. S. P. f.--------------------------------------------------- - - - 111
Extracts, dyeing and tanning. . . . . . . . . . . . . sº s sº e s = e - sº se e < * * * * * * * * * * * * * * * * * * * * * 42
Extracts of nutgalls - - - - - - - - - - - - - - - - - - - - - - - - - - -... • * * * * * * * * * * * * * * * * * * * * * * * * * * * 8.
Ferrous Sulphate - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - = * * * * * * * * * = • * = • 106
Fibrin ------------------------ • - - - - - * ~ * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ~ * ~ * = 108.
Fir, or Canada balsam - - - ---------------------------------... • * * * * * * * * * * * * * * * 17
Fish Sounds - - - - - - - - - - .* - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - e = • , s = • * * * * * * * 47
Flaxseed oil. . . . ., - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ... • * * * * e = * * * * * * * * * 56
Formaldehyde - - - - - - -... ... • s • * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ... s = * * * * * * * * * * 46
Flavoring extracts - - - - - - - - - - - - - - - - - - - - - - e s = • * * * * = • * = • - - - ... • * *... • *, *, *, *... • * * * * - - - - - 72
Floral concretes - - - - - - - - - - - ... • - - - - - - - - - - - - - e s = e = • * ~ * .* * * * * * * ... • * * * : * * * * * * : * * * * * * * 70
Floral essences----------------------------------------------------------- 70
Floral waters. . . . . . ... • * * * * * * * * * * * : - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ... *... • * * * * * * * * * * * * * 69
Formalin . . . . . . . . . . . ... • * = * * * * * . * * * * * * * * * * * * * : * * * * * * * * * * * .* * * * : * = ... • * : * * * * * * * * * * * * * 46
French chalk. . . . . . . . . = • , = • * ~ * - - - - - - - - - - - - - - ... º º sº tº º ºs & sº tº º ºs º ºs º º ºs º º is s tº º sº gº tº gº tº e ºs e ge 94
French chalk, crude--------------------------------------- ... • , s = * * * * * * * * * * * * 126
Frostings------------------------------------ ... º - tº , s , s is e e e s e = * * , sº º sº * is ... º ºs e g º ºs s m º gº º 85.
Fruit esters, oils, and essences...--------------------------------------..... 72
Fulminates------------------ -------------------------------------------- 108,
Fusel oil..... ... • * = , = • = • * * .* * * * * * * * ... sº e º sº e º 'º sº º sº º sº e º sº * * * * * * * * * * * * * * , º is as tº º tº º sº e º ºs tº º sº gº 46.
Fustic extract------------------------------------------------------------- 42.
Fustic wood........ . . . . . . .* * * * : * * * * * * * * * * * * * * * * * * * * * is as as º ºs º e º ºs e º e º sº e º sº me e º sm as s = 126.
Galalith - - - -------------- .* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 36.
Gambier . . . . . . . . . . . ... sº * : * * * * : * * * * e , ſº tº e s = º º-------- sº sº se tº se e º se ºn se - * = gº tº e º sº º sº sº gº º ºs º gº º sº º 127
INDEX. 135
. Page.
Gas black...-------------------------------------------------------------- 77
Gas-mantle scrap.--------------------------------------------------------- 53
Gasoline...... ------------------------------------------------------------ 181
Gelatin------------------------------------------------------------------- 47
Gentian. . . . . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 51
Geranium oil. . . . . . . . . . . . - - - - - - - - - - - - - - - - - - - - - - - - - - - , - - - - - - - - - - - - - - - - - - - - - - 62
Geraniol---------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 71.
Glauber Salt--------. . . . . .* * * * * * * = - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 90
Glue and glue size . . . . . . . • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -... • - - - - - - - 47
Gold salts------. . . . . . . - - - - - - - - - - - - - - - - - - - - - .- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 87
Glycerin----------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -... • * ~ * ~ * ~. • - - - - - - 49
Guano--------------------------------------------------------------- - - - - 110
Guayule--------------------------------------- * ~ * * * * * * = - - - - - - - - - - - - - - - - - - 112
Gums and resins----------. • * * * * * * * * * * - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -... • - - - - 49, 111
Gunpowder----------------------------------------- --------------------- 111
Gutta Balata.-------------------------------------------- * * * * * .* * * * * * * * * * * * II 2
Gutta percha. . . . . . . . . • - - - - - - - - - - * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * .- - - - - - - - - - 112
Gutta Siak----------------------------------------- .- - - - - - - - - - - - - - - - - - - - - - - 112
Heliotropin---------------------------------------------------------------- 71.
Hemlock bark..... . . . . . "- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ----------- 126
Hemlock extract---------------------------------------------------------- 42
Hempseed oil-...-- * * * * * * * * * * * - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - * * ~ * * * * 56
Hexamethylenetetramine..... . . . . . . . . . . . . . . * - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 46
Hydrate, chloral. . . . . . . . . . . . . * * * * * * * * = - - - - - - - - - - - - - - - - - - - - - - - - - - - - - * * * * * .* * 25
Hydrate, terpin---------------------------------- * * * *, * * * * * * * * * * * * - - - - - - - - - - 25
Hydrosulphite compounds... . . . . . . . . . . . . . . . . . . . . . . . * = - - - - - - - - - - - - - - - - - - - - 90
Ichthyol preparations. -------------------------------------------- - - - - - - - - 118
Ink and ink powders------------------------------------------------------- 29, 50
Insect flowers. ---------------------------------------------- * * * - - - - - - - - - 39, 107
Iodine--------------------------------------------------------------- , - - - - 112
Ionome------------------------------------------------------------------- 71
Ipecac------------------------------------------------------------------ 39, 107
Iron-hydroxide pigments.-------------------------------------------------- 8
Iron-oxide pigments.------------------------------------------------------ 78
Isinglass-------------------------------------------------------------- - - - - 47
Isopropyl alcohol---------------------------------------------------------- 46
Ivory black. -------------------------------------------------- • * * * * * * * * = • 77
Jalap-------------------------------------- s = • = • = • * * * * * * * * * * * * * . . . . . . . . . . 39, 107
Jelutoong---------------------------------------------------------- ------- 112
Juniper oil---------------------------------------------------------------- 62
Kadaya gum-------------------------------------------------------------- 49
Kainite------------------------------------------------------------------- 120
Rauri-------------------------------------------------------------- - - - - - - 111
|Kelp--------------------------------------------------------------------- 113
Rerosene------------------------------------------------------------------ 118
Kieserite----------------------------------------------------------------- 113
Lac------------------------------------------------------- * = < * * * * * * * * * * * * 114
Lactarene---------------------------------------------------------------- ll4
Lampblack---------------------------------------------------------------- 77
Laudanum---------------------------- ** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * > - - - - 66
Lavender oil----------------------------------------------- * = .- - - - - - - - - * * * * * 62
Lead acetate-------------------------------------------------------------- 79
Lead arsenate-------------------------------------------- * * * = • * * * * * * * * * * * * 80
Lead compounds, n. S. p. f. . . . . . . . . . . . . . . ------------------... • * * * * * * * * * * * * * * 80
Lead nitrate--------------------------------------------------------------- 80
Lead pigments---------- = * * * * * * * * * * - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 79
Lead resinate----------------- ... • , e. e. e. * * * * * * * * = * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 80
Leeches-------------------------... • *, * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ll.4
Lemon-grass oil----------------------------------------------------------- 62
Lemon juice--------- ... • * : * = - s = . e. e = . = , = e = , = , = • * * * * * * * * * * * * * * * * * * * * * * * * * *... ºn sº as s = *... • * * * * ll.4
Lemon oil------------- , sº tº . * : * s., e = ... s = , = • , s - e º ºs e º ºs ... • s sº ºn as s as me a s = e s = e = a s = * * * * * * * * * * * * * * 62
Licorice extracts----------------------------------------------------------- 52
Licorice root.----------- - - - - - - - - -, *.*, * = ... •. •. •. - - - - - - - - - - - - - * * * * * * * * * * * * * * * * * * * * * * * * * 51
Lime, citrate of.---------- - * : * ~ *, *... •. s = e º se e = * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 52
Lime juice....... ... * * *, * : * * : * * : *. s. as s m e = * a s , s tº . * * * * * *, *, *, as sº sº. . nº º º ºs º ºs as as a s a m = n e s m s m s m º ºs º º sº sº 114
136 INDEX,
Page.
Lime nitrogen. ------------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 102
Time oil------------------------------------------------------------------ 62
Linseed oil---------------------------------------------------------------- 56
Litharge------------------------------------------------------------------ 79
Lithopone----------------------------------------------------------------- 83
Litmus------------------------------------------------------------------- 127
Logwood------------------------ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - * * * * * * 126
Logwood extract---------------------------------------------------------- 42
London purple........ • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 119
Magnesia, calcined--------------------------------------------------------- 115
Magnesite------------------------------------------------------------------ 115
Magnesium:
Carbonate-------------------------------------------------- - - - - - - - - - - - 52
Chloride-------------------------------------------------------------- 52
Oxide medicinal...------------------------------- - - - - - - - - - - - - - - - - - - - - - 52
Sulphate--------------------------------------------- - - - - - - - - - - - - - - - - - 52
Mangrove bark--------------------------------------- - - - - - - - - - - - - - - - - - - - - - 126
Mangrove extract----------------------------------------------------------- 42
Manna-------------------------------------------------------------------- 39, 107
Manures------------------------------------------------------------------- 110
Marshmallow root-------------------------------------------------------. 39, 107
Maté--------------------------------------------------------------------- 39, 107
Medicinal compounds, n. S. p. f....-------------------------------, - - - - - - - - - - 12
Menthol------------------------------------------------------------------ 53
Mercurial preparations....-------------------------------------------------. 20
Menthanol-------------------------------------------------- - - - - - - - - - - - - - - - - 98
Methyl alcohol------------------------------------------------------------ 98
Mineral Salts.-------------------------------------------------------------- 116
Monazite sand------------------------------------------------------------- 53
Morphine----------------------------------------------------------------- 65
Muriate of potash----------------------------------------------------------- 120
Musk---------------------------------------------------------------------- 70
Myrobalan extract--------------------------------------------------------- 42
Myrobalan fruit----------------------------------------------------------- 126
Naphtha------------------------------------------------------------------ 118
Neroli or orange flower oil...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Niter cake----------------------------------------------------------------- 123
Nutgalls------------------------------------------------------------------- 126
Nut oils-------------------------------------------------------------------- 117
Nux vomica-------------------------------------------------------------- 117
Oak bark----------------------------------------------------------------- 126
Oak extract---------------------------------------------------------------- 42
Ochers-------------------------------------------------------------------- 78
Oil of vitriol-------------------------------------------------------------- 96
Oils:
Animal-------------------------------------------------------------- 55, 117
Combinations of.------------------------------------------------------- 58, 71
Distilled or essential...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Expressed or extracted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56, 117
Fruit----------------------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 72
Hydrogenated.--------------------------------------------------------- 58
Mineral------------------------------------------ " * * * * * * * * - - - - - - - - - - - - - II8
Sulphonated.----------------------------------------------------------- 57
Vulcanized.----------------------------------------------------------- 58
Olive oil------------------------------------------------------------------- 56, 117
Opium--------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 65
Orange mineral.----------------------------------------------------------- 79
Orange oil---------------------. s • * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 62
Origanum oil--------------------------------------------------------------- 62
Otto of roses-------------------------------------------------------------- 63
Oxide of iron, spent. . . . . . . . . . . e s = s = * * * * * * * * * * * * * * * * * * * * is sº s º ºs ºs s = * * * * * * * * * * * * 125
Paints, colors, and pigments, n. S. p. f. -------------------------------------- 84
Palm-kernel oil----------------------------------------------------------- 117
Palm oil------------------------------------------------------------------ 117
Palmarosa oil------------------------------------------------------------- 62
INDEX. 137
Page.
Paraformaldehyde---------------------------------------------------------- 46
Paris green.--------------------------------------------------------------- 119
Paris White---------------------------------------------------------------- 21
Patchouli oil--------------------------------------------------------------- 62
Peanut oil---------------------------------------------------------------- 57
Perfumery---------------------------------------------------------------- 68
Perilla oil------------------------------------------------------------------ 117
Persian berry extract.------------------------------------------------------ 42
Peppermint oil------------------------------------------------------------ 63
Petroleum---------------------------------------------------------------- 118
Phenolic resins------------------------------------------------------------ 29
Pine-needle oil------------------------------------------------------------ 63
Phosphates, crude---------------------------------------------------------- 119
Phosphorus--------------------------------------------------------------- 120
Platinum salts------------------------------------------------------------ 87
Pontianak----------------------------------------------------------------- 112
Poppy-seed oil------------------------------------------------------------- 57
Potash alum--------------------------------------------------------------- 13
Potassium aluminum sulphate----------------------------------------------- 13
Potassium-antimony tartrate------------------------------------------------ 17
Potassium—
Bicarbonate------------------------------------------------------------ 86
Bromide--------------------------------------------------------------- 86
Carbonate------------------------------------------------------------- 120
Chromate and dichromate---------------------------------------------- 86
Chloride-------------------------------------------------------------- 120
Chlorate and perchlorate.----------------------------------------------- 86
Cyanide-------------------------------------------------------------- 120
Ferricyanide----------------------------------------------------------- 86
Ferrocyanide---------------------------------------------------------- 86
Hydroxide------------------------------------------------------------ 120
Iodide---------------------------------------------------------------- 87
Nitrate-------------------------------------------------------------- 87, 120
Permanganate---------------------------------------------------------- 87
Sulphate-------------------------------------------------------------- 120
Potassium-sodium tartrate-------------------------------------------------- 17
Prussiate of potash:
Red------------------------------------------------------------------ 86
Yellow---------------------------------------------------------------- 86
Prussiate of soda, yellow--------------------------------------------------- 90
Pyrethrum flowers. --------------------------------------- - - - - - - - - - - - - - - - 39, 107
Pyrites. . . . . . . . . . . -------------------------------------------------------- 125
Pyroxylin compounds------------------------------------------------------ 36
Quebracho extract. ------------------------------------------------------- 42
Quebracho Wood---------------------------------------------------------- 126
Quinine sulphate.--------------------------------------------------------- 121
Radioactive substitutes---------------------------------------------------- 121
Radium and salts.--------------------------------------------------------- 121
Rapeseed oil -------------------------------------------------------------- 57
Red lead.---------------------------------------------------------------- 79
Red oil------------------------------------------------------------------- 8
Rennet------------------------------------------------------------------- 122
Rhodinol----------------------------------------------------------------- 71
Rhodium salts.----------------------------------------------------------- 87
Rochelle Salts.------------------------------------------------------------ 16
Rosemary oil------------------------------------------------------------- 63
Rose oil------------------------------------------------------------------ 63
Rubber, India------------------------------------------------------------- 112
Safflower.----------------------------------------------------------------- 45
Safiron-------------------------------------------------------------------- 45
Safrol--------------------------------------------------------------------- 71
Sago four----------------------------------------------------------------- 91
Sal soda------------------------------------------------------------------- 89
Salicin------------------------------------------------------------------- 122
Salt cake------------------------------------------------------------------ 123
Saltpeter, crude------------------------------------------------------------ 120
138 INDEX.
Tage.
Saltpeter, refined--------------------------------------------------------- 87
Salts, mineral.... . . . . . . . . * * * * * * * * * * * * sº tº º se sº º ºs ºn tº º sº º gº tº gº ºs e º ºs e e s ∈ sº * * * * * * * * * * * * * * 116
Sandalwood oil--------------------------------------------------------- - - - (33
Sandarac. . . . . . . . . . . . . . s = * * * * * * * * * * * * * * * * * * * * * * * * * * * * * s is a º e s = * * * * * * * * * * * * * Ill
Santonin and salts--------------------------------------------------------- 123
Sarsaparilla root.----------------------------------------------------------. 51
Satin white............ . . . . . * * * * * * * * * * * * * * * * * * * * * * * * is º ºs º sº sº e º ºs e º ºs º is ºs s m = ± = * * * * 75
Selenium and salts--------------------------------------------------------- 12I
Senegal gum--------------------------------------------------------------- 49
Serums-------------------------------------------------------------------- 99
Sesame oil----------------------------------------------------------------- 57
Sheep dip---------------------------------------------------------------- 123
Siennas.------------------------------------------------------------------ 78
Silver Salts--------------------------------------------------------------. 87
Slag, basic---------------------------------------------------------------- 110.
malts------------------------------------------------------------------- 85
Soap---------------------------------------------- - - - - - - - - - - - - - - - - - - - - - - - 88
Soap powder.... . . . . . . . . * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 88
Soapstone---------------------------------------------------------------- 94.
Soapstone, crude............ * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 126.
Soda ash------------------------------------------------------------------ 123
Sodium:
Arsenate---------------- • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 123
Bicarbonate----------------------------------------------------------- 89
Borate--------------------------------------------------------------- 123
Bromide-------------------------------------------------------------- 89
Carbonate calcined. . . . . . . . . . . . . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 123
Carbonate hydrated.---------------------------------------------------- 89
Carbonate monohydrated.---------------------------------------------- 89
Chlorate------------------------ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 89
Chloride------------------------------------------------------------- 123
Chromate- - - - - - - - - - - - - - - - - * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * = s = * * 90
Cyanide--------------------------------------------------------------- 123
Dichromate. --------------------------------- - - - - - - - - - - - - - - - - - - - - - - - - 90
Ferrocyanide. ------------------------------- - - - - - - - - - - - - - - - - - - - - - - - - - 90
Formate--- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 90
Hydrosulphite-------------------------------------------------------- 90
Hydroxide. ----------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 90
Metabisulphite -------------------------------------------------------- 90.
Nitrate tº gº tº º º - * * * * - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 123.
Nitrite. ---------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 90
Phosphate------------------------------------------------------------- 90
SeSquicarbonate. --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 90
Silicate--------------------------------------------------------------- 123
Silicofluoride. -------------------------------------------------------- 123
Sulphate, anhydrous. ------------------------------------------------- 90.
Sulphate, crude------------------------------------------------------ 123
Sulphate, crystallized. ------------------------------------------------ 90
Sulphide------------------------------- ... s. s. sº gº tº gº º ºs e º 'º gº ºs e º ºs & sº * * * * * * * * * * * * * 90.
Sulphite. . . . . . . . . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 90.
Thiosulphate---------------------------------------------------------- 123,
Sodium salt.... . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I23.
Sour Orange juice. . . . . . . • * * * * * = • - - - - - - - - - - - - - - - - - - - - - - - - * * * * * * * * * - - - - - - - - - 114
Soya bean oil------------------------------------------------------------- 117
Spermaceti oil------------------------------------------------------------- 117
Spike lavender oil. ----------------------------------- - - - - - - - - - - - - - - - - - - - - 63.
Starches: -
Arrowroot.------------------------------------------------------------ 9I
Potato---------------------------------------------------------------- 9]
Rice----------------------------------------------------------------- 91.
Wheat---------------------------------------------------------------- 9I
Steatite-------------------------------------------------------- - - - - - - - - - - - 94
Steatite, crude---------------------------------------------- - - - - - - - - - - - - - - - 126.
Strontianite-------------------------------------------------------------- 124
INDEX. 139
Strontium: Page.
Carbonate------------------------------------------------------------ 94
Nitrate-------------------------------------------------------------- - - 94
Carbonate, mineral--------------------------------------------------- - 124
Sulphate, mineral----------------------------------------------------- 124
xide----------------------------------------------------------------- 124
Strychnine and Salts------------------------------------------------------- 125
Styrax balsam. ----------------------------------------------------------- I7
Sugar of milk----------------------------- ... • * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 114
Sulphoxylate compounds---------------------------------------------- - - - - 90
Sulphur------------------------------------------------------------------ 125
Sulphuret of iron---------------------------------------------------------- 125
ll Iſla C - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 126
Talc---------------------------------------------------------------------- 94
Tale, crude--------------------------------------------------------------- 126
Tallow, vegetable---------------------------------------------------------- 109
Tamarinds---------------------------------------------------------------- 126
Tannin-------------------------------------------------------------------- 8
Tanning extracts----------------------------------------------------------- 42
Tanning materials, synthetic.---------------------------------------------- 29
Tanning and dyeing materials, crude---------------------------------------- 126
Tapioca flour--------------------------------------------------------------- 9].
Tar and pitch of wood----------------------------------------------------- 129
Tartar--------------------------------------------------------------------- 16
Tartar emetic.------------------------------------------------------------ 17
Tea Waste------------------------------------------------------------------ 20
Terpineol------------------------------------------------------------------ 71
Thorium nitrate------------------------------------------------------------ 53
Thorium ores-------------------------------------------------------------- 53
Thorium oxide and salts--------------------------------------------------- 53
Thyme oil---------------------------------------------------------------- 63
Thymol------------------------------------------------------------------- 25
Tin bichloride------------------------------------------------------------ 88
Tin Salts------------------------------------------------------------------- 88
Tin tetrachloride---------------------------------------------------------- 88
Toilet preparations-------------------------------------------------------- 68
Toilet Soap --------------------------------------------------------------- 88
Tolu balsam -------------------------------------------------------------- 17
Tonka beans---------------------------------. • - - - - - - - - - - - - - - - - - - - - - - - - - - - - 95
Tragacanth gum----------------------------------------------------------- 49
Tragasol------------------------------------------------------------------ 49
Trichloroethylene--------------------------------------------------------- 26
Turkey red oil------------------------------------------------------------- 57
Turmeric----------------------------------------------------------------- 127
Turpentine:
Gum------------------------------------------------------------------ 129
Spirits---------------------------------------------------------------- 129
Ultramarine blue---------------------------------------------------------- 76
Umbers------------------------------------------------------------------ 78
Uranium, oxide and salts--------------------------------------------------- 130
Urea--------------------------------------------------------------------- 25
Vaccines----------------------------------------------------------------- 99
Valonia------------------------------------------------------------------- 126
Valonia extract------------------------------------------------------------ 42
Vanilla beans------------------------------------------------------------- 95
Vanillin------------------------------------------------------------------ 71
Warnishes------------------------------------------------------------------ 80
Vegetable tallow----------------------------------------------------------. 109
Verdigris----------------------------------------------------------------- 101
Vermilion reds ------------------------------------------------------------ 82
Vetivert oil---------------------------------------------------------------- 3
Viruses-------------------------------------------------------------------- 99
Wattle bark--------------------------------------------------------------- 126
Wattle extract------------------------------------------------------------ 42
Wax, animal, vegetable, or mineral............... . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Whale oil----------------------------------------------------------------- 117
140 INDEX.
IPage.
White lead--------------------------------------------------------------- 79,
Wine lees------------------------------------------------------------------ 16:
Witherite------------------------------------ • * * * * * * * * * * * * * * * * ~ * ~ * ~ * ~ * - - - - 130.
Wood alcohol--------------------------------------- • * * = • * * * * * * * * * * * - - - - - - 98
Ylang-ylang oil ------------------------------------------------------------ 63.
Zinc chloride-------------------------------------- • * * * * * * * * * * * * * * * * * * - - - - 84
Zinc oxide----------------------------------------------------------------- 82°
Zinc sulphate-------------------------------------------------------------- 84
Zinc sulphide------------------------------------------------------------- 84.