? = 0- ' = rj UNITED STATES fTARIFF COMMISSION, WASHINGTON INFORMATION CONCERNING THE DOMESTIC POTATO-PRODUCT INDUSTRIES POTATO FLOUR DRIED OR DEHYDRATED POTATOES POTATO STARCH POTATO DEXTRINE WASHINGTON GOVERNMENT PRINTING OFFICE 1919 UNITED STATES TARIFF COMMISSION, WASHINGTON INFORMATION CONCERNING THE DOMESTIC POTATO-PRODUCT INDUSTRIES POTATO FLOUR DRIED OR DEHYDRATED POTATOES POTATO STARCH POTATO DEXTRINE PRINTED FOR USE OF COMMITTEE ON WAYS AND MEANS HOUSE OF REPRESENTATIVES WASHINGTON GOVERNMENT PRINTING OFFICE 1919 UNITED STATES TARIFF COMMISSION. OFFICE, 1322 NEW YORK AVENUE, WASHINGTON, D. C. COMMISSIONERS, WILLIAM KENT, LETTER OF TRANSMITTAL. UNITED STATES TARIFF COMMISSION, Washington, September 4, 1919. Committee on Ways and Means, House of Representatives: I have the honor to transmit herewith, in accordance with your request, information compiled by the United States Tariff Commission on the domestic potato-product industries. Very respectfully, THOMAS WALKER PAGE, Acting Chairman. CONTENTS. Page. Letter of transmitted 3 Summary 7 Industrial uses of the potato 7 Potato-product industries in the United States 8 Potato-product industries in Europe 9 Import duties 10 Tariff considerations 11 Potato flour 11 Uses 11 Processes 11 Domestic production 12 Prices 12 Tariff history and customs decisions .' 12 Imports 12 Dried or dehydrated potatoes 13 Uses and processes : 13 Production 13 German potato-drying industry 13 Tariff history 14 Potato starch 14 Description 14 Uses 14 Manufacture : 14 Domestic production 14 Production in foreign countries 15 German production of potato products, 1910-11 15 Imports 16 Exports 17 Prices 18 Tariff history 19 Potato dextrine 19 Description 19 Uses 20 Manufacture 20 Domestic production ^ 20 Foreign production ' 21 Imports and exports 21 Prices 21 Tariff history Customs Decisions 23 Bibliography Appendix 25 Definition of potato flour, United States Department of Agriculture 25 Customs decisions 25 5 DOMESTIC POTATO-PRODUCT INDUSTRIES. SUMMARY. INDUSTRIAL USES OF THE POTATO. The white or Irish potato contains 75 to 80 per cent of water, 15 to 25 per cent of starch, about 2 per cent of proteins, and 2 or 3 per cent of fiber and mineral salts, or ash. Its value as a food and in the industries is due main!}- to its content of the carbohydrate, starch. Starch, either directly as such or through derivatives such as glucose, alcohol, and dextrine, is used in innumerable products and is essen- tial to many industries. It occurs in many vegetable substances besides the potato, the most important commercially being corn, rice, wheat, cassava, sago, and arrowroot. While potato starch and its de- rived products are preferred for a few purposes, it is competitive with that made from other products. Whether one kind or another is bought, is largely a matter of price; and the selection of the raw mate- rial for starch manufacture is dependent upon its availability and the cost of extraction. In the United States, which produces more than twice as much corn as the rest of the world combined, corn is the prin- cipal source of starch and its products; in the industrial nations of Europe, whose climate is unfavorable for corn production, but whose physical and economic conditions give them a similar preeminence in potato production, potatoes take the place of corn as the primary raw material. The potato serves as a raw material for the manufacture of seven products, of which live are of considerable industrial importance and two have great promise. 1. Potato flour consists of the whole potato except the water and peel, washed, cooked and dried, ground, and bolted to a fine flour. Potato flour is used chiefly for mixing with other bread flours and for other food products. 2. Dried or dehydrated potatoes, like potato flour, contains all of the content of the raw potato except water and peel, but is sold in the form of chips, flakes, or ''rice" instead of as a powder or flour. The potato is first washed and peeled, and then either sliced, .parboiled, and dried, or is steamed; forced through a die plate, and dried. Dried potatoes are used almost entirely for food. This product has many advantages over fresh potatoes: the heavy losses by decay or freezing are eliminated, it may be kept for a considerable period with- out special measures as to temperature and ventilation, and the cost of freight and handling on the large percentage of water present in fresh potatoes is avoided. . 3. Potato starch is made from potatoes by eliminating, as completely as possible, the content of protein, fiber, and water. It is used prin- cipally in the textile industries as a si/ing in weaving, in textile printing, and in the finishing of cloth. It lias minor uses in laundering, paper manufacture, in food products, and in the manufacture of dextrine. DOMESTIC POTATO-PRODUCT INDUSTRIES. 4. Dextrine or British gum is made from starch by the action of heat or acids. Its chief use is in the dyeing, printing, and finishing of textile fabrics. It is also used as an adhesive for gummed labels, envelopes, and stamps, and has many other uses. 5. Glucose, dextrose, or starch sugar is made on a large scale in Europe from potato starch, but in the United States cornstarch is used almost exclusively as the raw material of the glucose industry. 6. Alcohol is made in large quantities in Europe from potatoes, but in the United States molasses is the principal raw material of the industrial alcohol industry. 7. Lactic acid is used in tanning leather, in dyeing and calico print- ing, and in foods and beverages. It is made on a large scale in Ger- many from potatoes, but in the United States is made from vegetable ivory waste and from corn meal. POTATO-PRODUCT INDUSTRIES IN THE UNITED STATES. The industries which utilize potatoes have a useful economic func- tion in providing an outlet for large quantities of lower grade, cull, and surplus stock that would otherwise be wasted. It has been roughly estimated that approximately 50,000,000 bushels of potatoes are wasted annually in the United States. Relative to the extensive use made of the white or Irish potato in the manufacturing and chemical industries of Europe, or to its use there as a food and feed- stuff, the consumption in the United States is small. The greater part of the United States is outside of the natural potato-growing belt, and though the adaptability of the crop permits of its produc- tion in almost every county, yields are much smaller than in Europe. Factories must be located in regions whose production is sufficiently large to yield a large supply of the lower grades, as it is unprofitable to use No. 1 potatoes for industrial purposes. Such regions are com- paratively few, and are widely separated. Potato starch has been made in the United States for many years. Although the most important of the potato products in this country, the industry has been declining, while the volume of imports increased nearly fourfold between 1904 and 1914. Production and value of potato starch. [From the United States Census.] Year. ] Number of Pro'luetion. 1 factories, i Value. 1904 ... Pounds. l.'U 27,709,400 $924,476 1909. . ' 110 24 873 415 823 019 1914 82 23, ">40, 472 718,006 Imports of potato starch rose from 4,438,038 pounds in 1904 to lo,o IS, 434 pounds in 1914; they came chiefly from Germany and from Holland. Potato starch can not be produced and sold in the United States as cheaply as cornstarch, and its market is therefore limited to the comparatively few purposes for which potato starch is preferred. The output of cornstarch increased from 311,140,184 DOMESTIC POTATO-PRODUCT INDUSTRIES. 9 pounds, valued at $8,878,450 in 1904, to 574,247,697 pounds, valued at $13,784,654 in 1914. Ameri an cornstarch and glucose compete in the world markets with similar foreign products, and the exports of eornstarch greatly exceed the imports of potato starch. The manufacture of potato flour and dried potatoes in the United States was begun during the war period and is as yet not firmly established. A large domestic demand for these products has still to be created. While cull potatoes may be used for starch production, flour and dried potatoes, being foodstuffs, require sound stock, but not necessarily the No. 1 grade which constitutes the great bulk of the table potatoes. Dextrine is made from potato starch in this country, but large amounts are also made from cornstarch and tapioca. POTATO-PRODUCT INDUSTRIES IN EUROPE. Tn Europe, and especially in Germany, the conditions are quit< different. Europe produces over 90 per cent of the world's annual potato harvest, and the United States only about 6 per cent. The cool and moist climate, which is not suitable for corn production, is favorable to the growing of potatoes, while its large yields to the acre and ready response to intensive cultivation adapt the crop to the limited acreages and cheaper labor of Europe. There the potato is a much more important part of the food supply. Yields to the acre more than twice as large as in the United States are usually obtained, under more intensive methods of cultivation and with a liberal use of fertilizers. Varieties considerably higher in starch content than are grown in this country have been developed for starch manufacture, and prices of potatoes are much lower. More- over, while our quarantines, due to the danger of importing foreign plant diseases, prohibit importations of fresh potatoes from nearly all the important producing countries, indirectly they encourage shipments in the form of the prepared products. In 1914 the German harvest of potatoes was over 1,674 million bushels, while that of the United States was about 410 millions. The use of the crop is different in the two countries. It has been estimated that in the United States 68 per cent is used for human food, 5 per cent is fed to farm animals, 11 per cent is saved for seed, 15 per cent is lost by decay and freezing, and not more than 1 per cent is used in the manufacture of starch or other potato products. In Germany, however, 28 per cent of the crop is used for rood (the average per capita consumption being much larger than in the United States), 40 per cent is fed to farm animals. 12 per cent is used for seed, 10 per cent is lost by decay, 6 per cent consumed in the production of alcohol, and 4 per cent is used for making starch, glucose, and dextrine. Farm stills and factories are encouraged, and various special measures have been taken to encourage the various branches of potato manufacture. The by-products of alcohol and starch manufacture are fed to live stock. Associations or k artels of producers wore formed to control the distribution and prices of the several products in the home markets and to develop foreign markets. 135455192 10 DOMESTIC POTATO-PRODUCT INDUSTRIES. IMPORT DUTIES. The tariff act of October 3, 1913, contains the following provisions: PAR. 581 (free list"). Potatoes, and potatoes dried, desiccated, or otherwise pre- pared, not specially provided for in this section: Provided, That any of the foregoing specified articles shall be subject to a duty of 10 per centum ad valorem when imported directly or indirectly from a country, dependency, or other subdivision of govern- ment which imposes a duty on such articles imported from the United States. PAR. 234. Starch, made from potatoes, 1 cent per pound; all other starch, includ- ing all preparations, from whatever substances produced, fit for use as starch, one- half cent per pound. PAR. 36. Gums: * * * dextrine, made from potato starch or potato flour, ]{ cents per pound. With regard to fresh potatoes, it is noteworthy that shipments from the countries of largest production are prohibited, under regulations promulgated by the Federal Horticultural Board in accordance with the plant quarantine act of August 20, 1912, designed to prevent the entry of injurious plant diseases and insect pests. Only Canada, the Bermudas, Holland, Belgium, and certain regions of relatively insig- nificant production are permitted to export to the United States (the Territories of Porto Rico and Hawaii are exempt from this restric- tion). The reciprocal provision of paragraph 581, permitting entry free of duty, applies to Canada, the Bermudas, Holland, and Belgium. Of the countries from which effective competition in potato flour and dried or prepared potatoes appears possible, the following may ship these products to the United States free of duty under the reciprocal provision of paragraph 581 of the 1913 tariff: Canada, Belgium, Denmark, Holland, ana the United Kingdom. Potato starch was formerly incorrectly designated in the trade as <; potato flour." Under Treasury Decision No. 16955 of February 4, 1896, so-called ''potato flour" consisting really of potato starch was held dutiable under paragraph 232 of the tariff act of 1894 as "starch" rather than as a nonenumerated article. (See Appendix, p. 25, for reprint of this decision.) On August 18, 1915, the Bureau of Chemistry of the Department of Agriculture, under the authority of the pure food and drugs act of June 30, 1906, ruled that the term "potato flour" can not oe applied to a product containing starch alone, but only to a finely divided or powdered product containing fat, fiber, and ash constituents from the edible portion of the potato. (See Appendix, p. 25, for reprint of this decision.) On March 5, 1914, the Treasury Department ruled that "potato flour" should be classified as a nonenumerated manufactured article under paragraph 385 of the act of 1913 rather than as "potatoes, dried, desiccated, or otherwise prepared" under paragraph 581 (T. D. 34236). This decision was sustained by the Board of General Appraisers (Abstract 37090, T. D. 35020), but was overruled on March 3, 1915, by the Court of Customs Appeals (Stein v. United States, 6 Ct. Cnst. Appls., 154), which held that the "potato ground meal'' or "potato flour" consisting of the entire potato, inducing the skin or of the edible contents of the potato, should be classified under paragraph 581 of the act of October 3, 1913, as "potatoes, dried, desiccated, or otherwise prepared," rather than as a non- enumerated article. (See Appendix, p. 26, for a reprint of this decision.) DOMESTIC POTATO-PRODUCT INDUSTRIES. 11 TARIFF CONSIDERATIONS. The commission has no tariff policy and makes no recommendation of rates, but if Congress determines to impose duties it should be borne in mind (1) That as potato starch is the raw material used in the manu- facture of dextrine, a duty, if any, upon dextrine ought logically to be adjusted to that of starch. The differential allowed in the 1913 tariff was one-fourth cent per pound. While about 20 per cent is lost in the process of dextrine manufacture, manufacturers regain part of this loss by allowing the product to absorb moisture. (2) That intermediate products, such as potato flakes and pressed potato cake, may be imported free of duty under paragraph 581; such products may be produced more cheaply in Europe. If a duty is placed on potato flour or starch, provision logically should be made for ''potatoes, dried or otherwise prepared," in order to prevent evasion through the importation of semi-manufactured products. (3) If it be the legislative policy to protect by means of import duties the several branches of manufacture which provide an outlet for surplus or lower grade potatoes, provision should also be made for dried or dehydrated potatoes. (4) The use of the term "natural" as applied to potato flour, current in Germany probably to distinguish it from potato starch, a similar product, should be avoided, as it is apt to give rise to various interpretations, is unnecessary because of decisions under the Pure Food and Drugs act, and may cause confusion. POTATO FLOUR. During the shortage of wheat incident to the world war, potato flour was extensively used, especially in Europe, for mixing with other bread flours. Bread with as much as 50 per cent of this flour can be made. This has been the principal outlet; it may also be used in making soups, cakes, and many similar preparations. It is claimed that an admixture of 5 per cent of potato to wheat flour improves the flavor of bread and enables it to retain its freshness for a longer period. Moreover, by reason of its characteristic quality of absorbing moisture, bakers may obtain a larger number of loaves from a given unit of flour than by using wheat flour exclusively. For this reason potato flour may be used by bakers even when higher in price than wneat flour. However, a large domestic demand has yet to be created. PROCESSES. The machine process most generally employed was developed in Germany. Sound slock below the Federal grade of Xo. 1 is used. Potatoes are washed, cooked, dried on a roll or ''flake' drier, and the "flakes," scraped from the drier, arc ground and bolted. The prod- ucts of this flaking process may take the form of flakes, which may be kept for a considerable period without spoiling, of a coarse meal, and of a finely-ground Hour. It requires about 5 pounds of potatoes to produce 1 pound of this flour, a bushel yielding 12 pounds. 12 DOMESTIC POTATO-PRODUCT INDUSTRIES. DOMESTIC PRODUCTION. In 1918 five potato flour factories were operating, their combined production being 2,500,000 pounds. Three of these factories are controlled by a large corporation, which is surveying the field with a view to erecting others in regions of large production. The first domestic plant was established in Idaho in 1917; four others are operating in Nebraska, Michigan, Wisconsin, and Minnesota. PRICES. Prices for potato flour are approximately the same as for starch (see p. 18). The prewar price was between 3 and 4 cents per pound. In 1914 the average declared value of imports was 3.2 cents per pound. TARIFF HISTORY AND CUSTOMS DECISIONS. Neither the existing tariff nor those previously enacted made sepa- rate provision for potato flour. Under a decision of the Court of Customs Appeals (Stein v. U. S., 6 Ct. Cust. Appls., 154) potato ground meal or flour, invoiced as "kartoffelwalzmem, obtained by reducing the entire potato with or without the skin to a state of flour by desic- cating and grinding, the process involving the application of sufficient heat materially to modify the starch granules, was declared to con- tain the entire and chemically unaltered elements of which potatoes are composed and not having acquired a new name, character, or use and serving the culinary purposes of potatoes, was held to be exempt from duty under paragraph 581 of the tariff act of October 3, 1913, unless ''imported directly or indirectly from a country, dependency, or other subdivision of government which imposes a duty on such articles imported from the United States, ' ' in which case a duty of 10 per cent ad valorem applies. This flour was found to be chiefly used for breadmaking, a minor use being the making of soups and other food products. IMPORTS. While potato flour has not been separately enumerated in the com- merce and navigation statistics of the United States, the imports of "potatoes, dried, desiccated, or otherwise prepared," apparently con- sist chiefly of this flour. The maximum imports occurred in 1914, when they amounted to 560,987 pounds, valued at $17,937. In 1918 there were imported 449,034 pounds, valued at $115,718. Imports for consumption. POTATOES, DRIED, DESICCATED, OR OTHERWISE PREI'AKED. Fiscal year. Rates of duty. Quan- tities. Values. Duties collected. Value ner unit of imantity. Actual and com- puted ad valorem rate. inu ChcL'inning Oct. :i, Free. . . . PIIUJI//K. KS, 12! Dollin. 1,422 Dnllm. Doll'ITK. 0. 037 Percent. im:<).i I!)1.3 10 per e.pnt nd valorem. Free .... 522, NH 13, W3 10, 515 90S 1,651.50 .032 .064 10 I'titi Id percent ad valorem. Free .... <>7,751 J -1,184 2.338 1.101 233. 80 .023 .077 10 11)17 10 per cent ad valorem. Free 5, 525 3,417 321 74*) 32.10 .058 .216 10 jii'v. 10 per cent ad valorem . Free 10,020 fi 4-15 1,80() 2 ''20 180.00 .18 .344 10 Id per cent ad valorem. 442,589 113,912 11,391.20 .268 10 1 Not separately stated prior to Oct. 3, 1913. DOMESTIC POTATO-PRODUCT INDUSTRIES. 13 DRIED OR DEHYDRATED POTATOES. USES AND PROCESSES. During the American participation in the World War large quantities of potatoes were dried for Army use. The product took the form of potato chips or dried, sliced and "riced" potatoes; it could readily be prepared lor use under field or camp conditions. Among its ad- vantages over the raw potato arc the elimination of waste through decay and freezing, ease of transportation, storage and preparation, and avoidance of much of the loss incident to the usual method of peeling. The manufacturing process is more expensive than that involved in making potato flour. The Army specifications required the use of Xo. 1 potatoes, but small or slightly damaged stock is ordinarily used. The fresh potatoes are first run through a washing and peeling ma- chine, and then carried on a "sorting belt" where workers eliminate unsuitable stock. Xext it is either sliced, parboiled, and dried in a current of warm air, or put through a'' ricing process/' i. e., is steamed, forced through a die plate in the method of macaroni manufacture, and thoroughly dried. When dried until thoroughly brittle these products will keep indefinitely. They may be used for stews, soups, und similar preparations, and may also be ground and bolted into flour. Potato flour and dried potatoes contain all the constituents of the fresh product, the peel only being removed in the flour by bolting and in the dried product by the peeling machine. In starcn manufacture the proteins and mineral constituents are removed as completely as possible. DOMESTIC PRODUCTION. Sixteen plants were producing dehydrated potatoes in 1918, their combined output being about 7,000,000 pounds. With the cessation of hostilities and a great reduction in the demands of the military establishments, the industry is placed on an uncertain footing. To a greater degree than in the case of potato flour, the future of the drying industry is dependent upon the development of a demand for the dried product, as a substitute for fresh potatoes, in households, hotels, and restaurants. The German potatoe-drying industry. l 1908-09 1909-10 , 1910-11 170 1 254 327 Factories using as raw material: 6 i 8 4 164 , 246 323 i bushels. . 5,898.774 ! 12,222,302 15,345,485 Products: Cut and sliced potatoes pounds. . do 14,263,762 35,163,370 77,072,816 il.i7,143,888 31,878.516 204,0^7,776 All others do.... 330,690 j 793,656 661,380 Total . do.... 91,667,268 1 193, 100,914 236,597,672 1 Source: Statistiches Jahrbuch fur das Deutsche Reich, Berlin, 1911. 14 DOMESTIC POTATO-PRODUCT INDUSTRIES. TARIFF HISTORY. " Potatoes dried, desiccated, or otherwise prepared," were first specif- ically provided for in the tariff act of October 3, 1913, paragraph 581. They are free of duty when from countries which accord like treatment to the American product; when from other countries the duty is 10 per cent ad valorem, which was equivalent to about three-tenths of a cent per pound in 1914. POTATO STARCH. DESCRIPTION. Potato starch is a white or gray, odorless and tasteless powder. Chemically it is identical with starch from other sources but the physical properties of potato starch, which differ slightly from those of other starches, better adapt it to certain industrial uses, especially in the textile industry. USES. The uses of starch may be divided into three classes: (1) For edible purposes, especially in puddings, confectionery, pastry, and for stiffening ice cream, custard, and pie fillings. Starch is also the largest component of most cereals and flours. (2) For laundry pur- poses. (3) For manufacturing purposes, including weaving, dyeing, printing, and finishing textiles, the manufacture of dextrine, soluble starch, glucose, alcohol, and lactic acid and the explosive, nitrostarch. Potato starch competes with other kinds of starch for these uses and being more expensive than cornstarch is used in relatively small amounts in the United States. In the textile industry and in the manufacture of dextrine, potato starch has certain advantages which give it a market even at a higher price. Cornstarch manufacturers have, however, found means to make varieties suitable for use in the textile industry and are offering increasingly severe competition to potato starch. .METHOD OF MANUFACTURE. The manufacture of starch from potatoes consists simply in the mechanical separation of the starch from the other parts of the tubers by a process of disintegrating the cells and washing out the starch with water. The quantity of starch contained in the raw material varies with the variety of the potatoes. In Germany, special vari- eties of potatoes with a starch content of 20 to 25 per cent have been developed for the starch industry. In the United States, culls and lower grades, containing from 14 to 17 per cent of starch, are usually employed. DOMESTIC PRODUCTION. The manufacture of starch is the most important of the industrial uses to which the potato is put in the United States. However, the industry is declining owing to the severe competition of cornstarch and of imported potato starch. The consumption of potatoes by the starch factories decreased from 210,608,127 pounds in 1909 to 169,- DOMESTIC POTATO-PRODUCT INDUSTRIES. 15 878, 784 pounds in 1914 and the output of potato starch from 24, 873,41 5 pounds in 1909 to 23,540,472 pounds in 1914. The number of estab- lishments reporting the manufacture of starch has decreased from 131 in 1904 to 1 10 in 1909 and to 82 in 1914. Of the 89 factories engaged in the manufacture of both glucose and starch in 1914, 51 were located in the State of Maine, 7 in Minnesota, 5 in Illinois, 4 in Massachusetts, and the remainder were distributed among 14 other States. Aroostook County, Me., is the principal center of the potato starch industry in the United States. Production of potato starch and cornstarch in the United States.* Year. Number of fac- tories. Potato starch. Cornstarch. Pounds. Value. Pounds. Value. 1904 . . 131 111) 82 27, 709, 400 24.873,415 23,540,472 5924,470 823,019 718,00!) 311,140,814 638,825,366 574,247,1197 775 H91 649 $8, 878, 450 15,%2,91 13,784,654 1909 . 191-1 . . 1915 . 1916 . . 8<>8,916,578 1917 Ntt, 131, 7.55 481, 761, 893 1918 (first six months) 1 Figures for 1904, 1909, and 1914 are from the Census of Manufactures; those for 1915-1918 were com" piled by the cornstarch producers and taken from the Textile American, December, 1918. PRODUCTION IN FOREIGN COUNTRIES. In Germany about 4 per cent of the total crop of potatoes is used for the manufacture of starch. The production of potato starch and related products in Germany for the fiscal year 1910-11 is shown in the following table: German production of potato products, 1910-11. Quantity. Value. Potato starch: Wet starch - - - Pounds. 125,671,700 $1,424,192 383 019 70S 8 447 S10 7 948.905 61,880 5, 277, 592 168.266 Potato meal (lump) S26, 725 2S, 560 21,940.400 550. 018 ( ! lucose sirup 124,332. 385 3,104.472 9,673,123 307' 734 49 310 2SS 1 404 914 3,602 or 6 107 100 27,804,636 144^942 513 556 940 212 295 Total 1,272,961,498 15,962,184 Source: Vierteljahrshefte ?,ur Statistik des Deutschen Reichs, III (p.) 114, Berlin, 1914. As a result of the total elimination of Germany from the world's markets and the great reduction of the exports from the Netherlands, Japan produced and exported large quantities of starch during the war. Prior to 1917 the exports of starch from Japan were not shown separately but were grouped with the less important grains, meals, and groats. In 1917 the total exports of starch alone were given as 133,467,552 pounds valued at $7, 483, 278. Of this amount, 68.65 per cent was shipped to Great Britain, 12.51 per cent to the United States, and the remainder to France, Egypt, and British India. 16 DOMESTIC POTATO-PRODUCT INDUSTRIES. IMPORTS. Approximately 95 per cent of the starch imported into the United States is potato starcn. From 1904-1908 imports averaged 6,121,589 pounds valued at $163,655, from 1909-1913, 13,730,665 pounds valued at $375,767, and from 1914-1918 they averaged 15,143,778 pounds valued at $704,712. Before the war, Germany and the Netherlands supplied practically all of the imports but during the last two years great quantities have been received from Japan. Imports from that country which amounted to only 677,422 pounds in 1916 rose to 18,008,666 pounds in 1917 and to 21,806,975 pounds in 1918. Of the total imports of starch in 1918, 58 per cent entered at the New York customs district and 33 per cent at the Pacific coast districts. Imports of starch, by countries. [Fiscal years.] 191C 1911 191 2 Pounds. Value. Pounds. Value. Pounds. Value. Gorman v 8 993 273 $234 062 665 060 $171 228 7 268 433 $216 426 Netherlands 1 304 993 39 544 459 693 10 788 6 823 852 194 ase England 177 507 14,753 335 023 21, 952 770, 505 33 444 Canada 172 14 129 8 Japan 39 2.53 1 708 36, 145 1,463 39,665 1,588 All other 346 284 14,963 442 C37 17, 025 938,853 32,613 Total 10 861 310 296 030 7,938 730 222, 470 15,841,437 478, 465 1912 1914 191 5 Pounds. Value. Pounds. Value. Pounds. Value. Oorinany. . . 6 312,661 *178,296 9, 2.52, 707 S227, 723 1, 583, 796 $36,968 Netherland? 9, 480. 720 228, 618 5, 265. 399 126, 283 10,250,131 239, 034 England 299 028 21 8SO 354,322 23, 425 916, 678 46, 119 ( anada. . . . 76 5 1,036 39 787 34 Japan 49 523 2 132 51,804 2,412 61, 745 2,643 A 11 other 567' 890 26, S53 5a3, 166 29,OiO 410,216 18,927 Total 16 710 49S 457 784 15,51S,434 408, 922 13,233,383 343, 805 191C 1917 , 191 8 Pounds. Value. Pounds. Value. Pounds. Value. Oerinanv 212 393 >11 52H r> soo .*537 England 913 218 61 234 827,364 59,567 < anada 62} 52 852, 893 61,019 1,213,340 $109,673 677 422 23 643 18 008 666 799, 775 21,80'>,975 1,494,131 All other 663 381 27, 3,Hl 952, 170 52, t02 831,830 69,673 Total 2 467,038 123,838 20, 647. 893 973,530 23,852,145 1,673,477 DOMESTIC POTATO-PRODUCT INDUSTRIES. 17 Imports for consumption . POTATO STARCH. Fiscal year. Rates of duty (per pound). Quantities. Value. Duty collected. Actual and com- puted ad valorem rate. 1908.... Cent*. H Pounds. 4,544 .520 $113,807 $68 128 Per cent. 59 90 1909 l| 15,418,259 351,256 231,274 65.84 1910 li 9 812 905 255, 040 147 194 57 71 1911 U 7,724,912 202, 482 115,874 57.23 1912 11 14 010 532 405, 135 210, 158 51 87 1913 1J 14.176,119 375,514 212,642 56.63 1914'.... lj 1 922,422 49 200 28 836 58 61 1914 1 12 010,549 284,384 120,105 42.23 1915 10 940 419 253 823 109 404 43 10 1916 1 2 337,717 72, 738 23,377 32.14 1917 j 17 545 tiS9 797 327 175 457 22.01 1918 . 13, 195 079 902,499 131,951 14.62 ALL OTHER STARCHES. 1908 U 932 234 $31,227 $13,983 44.78 1909 1J 1,479,425 43,729 22, 191 50.75 1910 1^ 64 973 1,821 974 53 52 1910 1 740,564 33,843 7,405 21.88 1911 . 1 615,456 31,805 6,155 19.38 1912 1 631,435 35, 462 6,314 17.81 1913 1 677,785 40,645 6,778 16.68 1914 1 1 189,557 10,219 1,896 18.55 19142 . J 771,517 41 893 3,858 9 21 1915 952,934 52,537 4,764 9.07 1916 I 1 1,242,295 78,807 6,211 7.88 1917 888,345 62, 132 4,441 7.15 1918 i 557 100 63 604 2,785 4.38 i 1 July 1 to Oct. 3, 1913. 2 Oct. 4, 1913, to June 30, 1914. EXPORTS. Exports of starch from the United States from 1914-1918 have averaged 102,848,429 pounds annually, valued at $3,913,104. Prac- tically all of this is cornstarch. Prior to 1918 all exports of starch were grouped under one head in the export statistics but in this year 38,659,323 pounds of "cornstarch (except for table use)" were shown. Over half of the exports go to England. Before the war the Netherlands and Belgium also took large quantities. Exports of starch, by countries. [Fiscal years.] 1914 1915 1916 Pounds. Value. Pounds. Value. Pounds. Value. 1 Oil 900 $25 545 3 751 577 82 809 658 353 $14 380 Netherlands 3 571,199 85,334 13, 070, 665 392, 496 16, 639, 188 $439, 159 England 53, 020, 773 1,200,560 56,729,921 1,426,942 119,696,706 3,107,677 Canada 1,941,408 63, 625 1,379,346 50,959 2,235,901 70,928 Cuba 125 576 3 683 225, 484 6,585 411,844 12,385 Japan 1, 734, 160 77,988 731,417 26, 867 849, 849 27,020 14 328 347 2, 063, 856 61 809 3,822,921 119,825 All other 11,542,858 285,699 32,177,596 959, 435 66, 528, 783 1,799,920 Total 76, 713, 779 1,825,230 107 036 638 2,939,453 210,185,192 5,576,914 18 DOMESTIC POTATO-PRODUCT INDUSTRIES. Exports of starch, by countries Continued. Exported to 1917 19181 1918 Pounds. Value. Pounds. Value. Pounds. Value. Austria Belgium Netherlands 1.762,200 96,498,389 2,943,034 2.383,028 443,596 7,304,465 35,089,110 $49,533 3,075,309 122, 551 73,652 15, 786 246, 848 1,137,844 England 16, 103, 199 1,066,258 1,291.265 129, 488 2,351,480 14,882,700 $1,023,009 68,613 90,780 8,656 134,053 956,904 21, 197, 974 2,032,440 3,635,212 1,298 2,305,346 9,487,053 $1, 177, 122 122,376 222,161 120 127,919 570, 679 Canada Cuba Japan France .... All other Total 146,423,822 4, 721, 533 35,223,390 2,282,015 38,659,323 2,220,377 Starch, all other. 2 Cornstarch (except for table use.) PRICES. Market prices are quoted for cornstarch, domestic and Japanese potato starch, rice starch, and wheat starch. Cornstarch, which has always been quoted at the lowest price, rose from about 2 cents per pound in August, 1914, to about 6 cents in July, 1919. The price of potato starch has increased from about 5 cents per pound in August, 1914, to about 10 cents hi July, 1919, and during most of this period it has been quoted at slightly over 12 cents. The domestic and imported potato starches bring about the same price, although recently the imported product has been quoted at a fraction of a cent more per pound. Hice and wheat starch are relatively unim- portant and quotations have not always been shown. Wheat starch sold for slightly less than potato starch in August, 1914, but in July, 1919, it was quoted at 9^ to 10 cents per pound. Wholesale prices of starch at New York. [Cents per pound, spot.] Date. Corn- starch. Potato starch. Rice starch. Wheat starch. January, 1910 2. 12 to 2. 28 5 to 51 6 to 7 5 to 5 April, 1910 1.97 to 2. 13 4J to 5 7 to 8 51 to 5} Julv, 1910 1. 72 to 1. 88 3j to 5 7 to 8 5| to 5j October, 1910 1. 60 to 1. 76 4 to 51 7 to 8 4| to 5J January 1911 1.52 to 1. 68 4 to 5J 7 to 8 4* to 51 Vpril 1911 1.37 to 1 53 4 to 51 7 to 8 4| to 51 July, 1911 1. 70 to 1.86 41 to 4| 7 toS 4| to 5J October 1911 2. 10 to 2. 26 4 to 41 7 to 8 4? to 51 January, 1912 1. *2 to 1. 96 5} to 5J 7 to 8 4J to 51 April, 1912 2. 07 to 2. 21 5! to oi 7 to 8 4? to 51 Julv, 1912 2. 55 to 2. 76 51 to 54 7 to 8 4$ to 5 Of totxr, 1912 January 1913 2. 25 to 2. 36 2. 00 to 2. 11 5J to 5i 51 to 5J 7 to 8 7 to 8 4tto5 4| to 5 April 1913 1. 65 to 1. 76 51 to 5i 4| to 5J Jul v, 1913 1. 92 to 2. 03 51 to 5i 7 to 8 4 to 5 Octolxjr 1913 2. 34 to 2. 45 5} to 5* 7 to8 4| to 53 January 1914 2 34 to 2.46 51 to 5J 7 to 8 4| to 5 April 1914 1. 84 to 1. 95 51 to 5J 7 to 8 4i to 5J July 1914 .. . . 1. 99 to 2. 10 5J to 5J 7 toS 4? to 51 October, 1914 2. 29 to 2. 40 51 to 5i 7 to 8 4jto5j January 1915 1. 99 to 2. 10 51 to 5i 7 to 8 4J to 5J Vpril 1915 2. 15 to 2. 26 5} to 5* 7 to 8 4| to 51 July 1915 2. 35 to 2. 46 5) to 5J 7 to 8 4} to 55 October 1915 2. 15 to 2. 26 5J to 5i 7 to 8 4J to 5J January 1916 2. 05 to 2. 16 51 to 5i 7 to 8 41 to 5j Ann]. 1910... 2. 25 to 2. 36 6 to 6i DOMESTIC POTATO-PRODUCT INDUSTRIES. Wholesale prices of starch at New York Continued. 19 Date. Corn- starch. Potato starch. Rice starch. Wheat starch. July, 1916 2 25 to 2 31 6 to 64 October 1916 2 65 to 2 71 6 to M January 1917 2 85 to 2 91 to 8i April 1917 . . 3. 05 to 5. 11 12$ to 13 Julv 1917 5 05 to 5 18 12J to 13 October 1917 6 30 to 6 48 12J to 13 January 1918 6 30 to 6. 48 12J to 13 April 1918 6 30 to 6 48 12 to 154 July 1918 . . 5 50 to 7 00 12J to 13 October, 1918 6. 00 to 7. 00 12J to 13 January 1919 4 15 to 5 00 11J to 12J April 1919 4 52 to 7J to 8 July 1919 5. 77 to 5. 99 9 to 9J 19 to.. 9.J to 10 TARIFF HISTORY. All starches and preparations fit for use as starch were dutiable at L } cents per pound under the act of 1890. The rate was reduced to 1 cents in 1894. Starch made from potatoes was specifically provided for in the act of 1883 at 2 cents per pound and in the act of 1909 at the rate of 1-^ cents. In the act of 1913 the rate for potato starch was reduced to 1 cent and that for all other starches and prepara- tions fit for use as starch was reduced to one-half cent per pound. Rates of duty on starch. Act of graph" Tariff classification or description . Rates of duty, specific and ad valorem. 1883 269 Potato * * * starch 2 cent's per pound. 1890 1894 1897 323 Starch, including all preparations, from whatever substance produced, fit for use as starch. 232 Starch, including all preparations, from whatever substance produced, commonly used as starch. 2S5 Same as 1890 " . ... .... 2 cents per pound. 1\ cents per pound. Do. 1909 296 Starch made from potatr.es U, cents Tier pound. 1913 296 j All other starch, including all preparations, from whatever substance produced, fit for use as starch. I'cent per pound. Do 2:54 All other starch, including all preparations, from whatever substance produced, fri for use as starch. i cent per pound. DEXTRINE. DESCRIPTION. Dextrine is a gummy substance produced from starch by heating either alone or with a dilute acid. It is sometimes considered to be an intermediate product between starch and glucose. It is soluble in water and has strong adhesive properties. Dextrine appeal's on the market as potato dextrine, corn dextrine, tapioca dextrine, British gum, and burnt starch. "British gum" and "burnt starch" are com- mercial terms usually applied to the cruder product. 20 DOMESTIC POTATO-PRODUCT INDUSTRIES. USES. Dextrine is used in over 70 different industries, but most exten- sively in the dyeing, printing, and finishing of textile fabrics. Large quantities are used for thickening mordants in dyeing and printing and as sizing for cotton goods and paper. Another and very impor- tant use is in the preparation of gummed labels, envelopes, and postage stamps. Dcxtrines are emploved as substitutes for such natural gums as gum arabic and tragacanth in preparing felt, in the manufacture of ink, and in many other uses. MANUFACTURE. Dextrine is made by heating starch in an iron cylinder either by a free flame or in an oil bath or steam jacket. It is also made by moistening starch with dilute acid, drying in the ah- or by heating to a low temperature, and finally placing the finely ground product in a suitable oven, heated with superheated steam. The powder is con- tinuously stirred to secure intimate mixture. When dextrine is made with acid it is usually lighter in color but contains some sugar, and therefore does not have as strong adhesive properties as when made by heat alone. In the conversion of starch to dextrine there is a loss of approximately 20 to 25 per cent; however, a part of this is com- pensated by water absorbed by the dextrine. The properties of the dextrine produced will depend upon the source of the starch used. Potato starch produces the finest product with the greatest adhesive power and is generally preferred in textile trades. Tapioca or cassava starch produces dextrine very suitable for gumming envelopes and postage stamps, and the United States Bureau of Engraving and Printing formerly consumed about 250 tons of tapioca dextrine each year. During the war, when imports of tapioca were restricted, the change was made to a mixture of corn and tapioca dextrine, and it is believed that the product has proved satisfactory. DOMESTIC PRODUCTION. The largest plants for the production of dextrine are now located in the United States. Before the war little or no potato dextrine was manufactured and the production was restricted almost entirely to corn dextrine. Tapioca dextrine, which was formerly imported from England, is now made in greater quantities here than abroad. The starch from which it is manufactured is imported from Java. The Census of Manufactures gives the following statistics for the domestic production of dextrines: Domestic production of dextrine. 1904 1909 1914 Dextrincs:' 6,651,731 16, 148,931 18,913,641 Value $231,708 $610, 999 $705, 584 ' Statistics for 1904 anil 1900 include "Gums, other than rosin." DOMESTIC POTATO-PRODUCT INDUSTRIES. 21 FOREIGN PRODUCTION. Before the war potato dextrine was made almost entirely in Germany and Holland and tapioca dextrine largely in England. The German production of potato dextrine for the fiscal year 1910-11 amounted to 49,310,288 pounds valued at $1,404,914. In Japan the production of potato starch increased enormously during the war period but up to the present time she has exported starch rather than dextrine to the United States. IMPORTS AND EXPORTS. Before the war the United States imported large quantities of refined potato dextrine from Germany and Holland and considerable quantities from England. The annual imports averaged over 5,000,- 000 pounds from 1910 to 1914 but dwindled to less than 100,000 pounds in 1918. Exports of dextrine have never been shown in Commerce and Navi- gation of the United States, but it is believed that they are insignifi- cant. Imports for consumption. DEXTRINE, DEXTRINE SUBSTITUTES. SOLUBLE STARCH. CHEMICALLY TREATED STARCH, BURNT STARCH, GUM SUBSTITUTES, OR BRITISH GUM. 1 Rates Fiscal years. \^ 7 pound). Quantities Values (pounds;, (dollars). Duties col- lected (dol- lars). Value per unit of quantity. Actual and com- puted ad valorem rate. Cents. 1908 . . 2 3 958 925 122,870 79, 179 00 SO 031 Per cent. 64 44 1909 2 6 062 353 184 476 121 247 00 030 65 73 1910 2 45.5, .546 , 13,595 9,110.92 .030 67 00 1910 ... H 5 936,215 183 508 89,043 29 031 48 52 1911 1J 6,357,790 190,660 95,366 79 030 50 02 1912 U 5, 352, 277 188, 332 80,284.24 .035 42 63 1913 .... . 1* 5 096 891 ISO 296 76 453 40 035 42 40 1914 1J 986, 644 32, 433 14, 799. 70 .033 45 03 DEXTRINE MADE FROM POTATO STARCH OR POTATO FLOUR. 1914 1J 5,226,421 162,688 1915 H 4,590,437 154,087 1916 if 720,106 : 40, 552 1917 l| 210,948 17, 832 1918 li 99 228 9,116 65, 330. 27 57, 380. 00 9,001.00 2,636.00 1,240.00 $0.031 .034 .056 .084 .092 40.16 37.20 22.20 14.79 13.61 DEXTRINE N. S. P. F., DEXTRINE SUBSTITUTES, BURNT STARCH, OR BRITISH GUM. 1914. 1915. 1916. 1917. 191S. 471,491 274,668 154, &s2 32, 773 505 IS, 180 12,028 10,049 2, 855 50 3,536.18 2,060.00 1,161.00 245. 00 3.00 SO. 039 .044 .066 .087 ! .099 , 19.45 17.13 11.56 8.61 7.58 PRICES. Potato dextrine is usually the highest priced of the dextrines, and corn dextrine the cheapest. In August, 1914, imported potato dextrine sold at 6 to 7 cents per pound, domestic potato dextrine at 54- to 7 cents, British gum at 3J to 3j cents, and corn dextrine at 3 to 3^ cents per pound. Since that time the prices have risen, until in the latter part of 1918 domestic potato dextrine was quoted at 20 cents. Corn dextrine during this period sold for 8 to S cents. 22 DOMESTIC POTATO-PRODUCT INDUSTRIES. Wholesale prices of dextrine at New York. [Cents per pound, spot.] Date. Imported potato dextrine. Domestic potato dextrine. Corn dextrine. British gum. January, 1910 6 to 7 5 to 6J 2 79 to 2 95 3 14 to 3 30 April, 1910 6 to 7 5| to 6i 2 72 to 2 88 2 97 to 3 13 July, 1910 6 to 7 5f to 6J 2 47 to 2 63 2 72 to 2 88 October, 1910 Si to 7 5? to 6i 2 37 to 2 53 2 62 to 2 78 January, 1911 5J to 7 5J to 6| 2 32 to 2 48 2 52 to 2 68 April, 1911 5i to 7 54 to 7 2 12 to 2 28 2 37 to 2 53 Julv, 1911 .. 5i to 7 5 to 64 2 47 to 2 88 2 72 to 2 88 October, 1911 64 to 74 5-i to 7 2 87 to 3 03 3 07 to 3 23 January, 1912 6 to 7 Si to 7 2 82 to 2 % April, 1912 6 to 7 54 to 7 3 07 to 3 21 Julv, 1912 6 to 7 54 to 7 3 55 to 3 66 October, 1912 6 to 7 54 to 7 3 25 to 3 36 January, 1913 6 to 7 Si to 7 3.00 to 3 11 April, 1913 6 to 7 Si to 7 2 67 to 2 76 July, 1913 6 to 7 5i to 7 2 95 to 3 06 October, 1913 6 to 7 5* to 7 3 27 to 3 38 January, 1914 6 to 7 54 to 7 317 to 3 28 April, 1914 6 to 7 5 to 7 2 73 to 2 78 Julv, 1914 6 to 7 Si to 7 3 02 to 3 13 October, 1914 .' .. .. 10 to 12 8 to 10 3 32 to 3 43 January, 1915 10 to 12 8 to 10 4 to 5 3 00 to 3 125 April, 1915 10 to 12 8 to 10 3 125 to 3 25 Julv, 1915 ^ 10 to 12 8 to 10 3 333 to 3 50 October, 1915 10 to 12 8 to 10 3. 125 to 3 25 January, 1916 ' 10 to 12 8 to 10 5 to 7 3.00 to 3. 125 April, 1916 12 to 13 8 to 10 3 25 to 3 333 Julv, 1916 12 to 13 8 to 10 3 20 to 3 25 October, 1916 12 to 13 8 to 10 3 65 to 3 71 January, 1917 12 to 13 8 to 10 6 to 7 3 85 to 3. 91 April, 1917 12 to 13 12V to 16 5 20 to July, 1917 12 to 13 12i to . 6 30 to 6 39 October 1917 12 to 13 12" to 12J 7 55 to 7 64 January, 1918 18 to 14 \ to 7 to 8 ( l ) April, 1918 19 to . . 16 to lf>4 7i to 8J w July, 1918 (!) 194 to 20^ 8 to 9 (1) October, 191S 0) 20" to 20| 8 to 8$ (1) January, 1919 (') 17J to 19 6 to 7$ 6.00 to 7. 00 April, 1919 15 to 17 15 to 17 f>\ to 6 5. 50 to 6. 00 Julv, 1919 17 to 18 17 to 18 7 to 7} 7. 25 to 7. 50 1 Nominal. TARIFF HISTORY. Dextrine and British gum were first specifically mentioned in the tariff act of 1883 and were given a duty of 1 cent per pound. This rate was increased to H cents in 1890 and to 2 cents in 1897, but restored to IV cents in 1909. In the act of 1913 dextrine made from potato starch was dutiable at 1 cents per pound and all others, including soluble or chemically treated starch, were dutiable at three- fourths of 1 cent per pound. The rates and classifications since 1883 are shown in the following table: Rates of duty. Act of Para- graph. TarilT classification or description. Rates of duty. 1883 1X90 1H94 19 324 233 Dextrine, burnt starch, gum substitute or British gum Dextrine, burnt starch, gum substitute or Hritish gum do . .. 1 cent per pound, li cents per pound. Do. 1S!7 2Mi do 2 cents per pound . 1900 1913 297 36 Dextrine, dextrine substitutes, soluble starch or chemically treated starch, burnt starch, gum substitute or Hritish gum. (turns: * * * dextrine, made from potato starch or po- tato flour. Dextrine, not otherwise provided for, burnt starch or British gum, dextrine substitutes, and soluble or chemically treated starch. H cents per pound. 1} cents per pound. 2 cent per pound. DOMESTIC POTATO-PRODUCT INDUSTRIES. 23 CUSTOMS DECISIONS. Potato starch which has been chemically treated so that it is in part soluble in hot water and which is known as soluble starch, although a portion of it is insoluble in water, is dutiable under the provision in paragraph 36 for "soluble or chemically treated starch," and not under paragraph 234 as "starch made from potatoes." (G. A. 7633, T. D. 34906 of 1914.) A starch product commercially known as white dextrine, which is technically neither starch nor dextrine, was held dutiable under paragraph 28G of the act of 1897 as "dextrine" and not under para- graph 285 as "starch." (Morning star v. United States, 159 Fed., 287 of 1907.) BIBLIOGRAPHY. Bliieher, H., Auskunftabuch fur die Chemische Industrie, pages 1134-1137, Berlin, 1911. Cathcart, W. II. Cornstareh in the Textile Industry (article), The Textile American, December, 19LS, Boston. Census of Manufactures, The Glucose and Starch Industry, Bureau of Census, Depart- ment of Commerce, Washington, 191.4. Gore, II. ('., The Utilization of the Potato, Bureau of Chemistry, United States De- partment of Agriculture, Washington; also other unpublished reports. Japan: Trade During the War, United States Tariff Commission, page 34, Washington, 1019. Rolfe, G. W., Starch, Dextrin, and Gluten, Roger's Manual of Industrial Chemistry, pages 7H5-783, New York. 1915. Skinner. Robert P., Utilization of Potaotes in Europe. Special Consular Reports No. 64, Department of Commerce, Washington, 1914. Thorpe, E., A Dictionary of Applied Chemistry, V. 149-190, London, 1917. Vierteljahrshefte zur Statitik des Deutschen Reichs, Berlin, 1914. APPENDIX. (Issued August 18, 1915.) UNITED STATES DEPARTMENT OP AGRICULTURE, BUREAU of CHEMISTRT. SERVICE AND REGULATORY ANNOUNCEMENTS, NO. 14. 130. USE OF THE TERMS " POTATO FLOUR," " RlCE FLOUR," ''CASSAVA FLOUR," AND "TAPIOCA FLOUR." It has come to the attention of this bureau that such products as potato starch, rice starch, and cassava starch are often designated hy the terms "potato flour, "rice flour," and "cassava flour" or "tapioca flour." In the opinion of this bureau the term "flour" when applied to potato or rice or cassava products has the same meaning as when applied to other products, that is, a finely divided or powdered product containing proieids, fat, fiber, and ash constituents from the edible portions of the potato, rice or cassava, and not such a product containing the starch alone. DECISIONS OF TREASURY DEPARTMENT, BOARD OF GENERAL AP- PRAISERS, AND COURT OF CUSTOMS APPEALS. POTATO STARCH. (T. D. 16955 G. A. 3383.) Before the United States General Appraisers at New York, February 4, 1896. In the matter of the protests, 25843b-11913 and 25959b-11932, of M. L. Barrett, against the decision of the collector of customs at Chicago, 111. .as to the rate and amount of duties chargeable on certain potato starch, imported per Venecia and Dania, and entered on December 13, 1894, and January 4, 1895, respectively. Opinion by LUNT, General Appraiser. We find- Cr) That Mr. M. L. Barrett imported into the port of Chicago, 111., December 13, ]894, and January 4, 1895, certain merchandise from Germany invoiced as potato flour upon which duty was assessed at the rate of l.\ cents per pound under the pro- visions of paragraph 232, act of August 28, 1894, and which is claimed to be dutiable at 20 per cent ad valorem under section 3 of said act as a nonenumerated manufactured article. (2) The said merchandise is potato starch, powdered, and known in the trade as potato Hour. It is the same article that was passed upon in the case of The Union National Bank of Chicago c. Seeberger (30 Fed. Hep., 429 1. Potato starch is very extensively manufactured in the United States and is sold upon the market in the form of granules of considerable size and also ground and bolted. In the latter condition it is called potato flour. Probably 90 per cent or more of this kind of starch is consumed in the manufacture and finishing of textile fabrics, it having a peculiar quality of penetrating fabrics and .giving the requisite stiffness without showing upon the surface, while cornsturch and wheat starch are more particularly adapted to giving a surface finish to fabrics. In proportion to the entire quantity of starch produced only a small percentage is used for laundry purposes. Powdered potato siarch. or potato flour, is used in considerable quantities by con- fectioners. In the manufacture of potato starch in Germany, the starch, after having been separated from the potato pomace, is generallv dried in centrifugal machines, and consequently all this product exported from (iermany is in the form of potato Hour, while in those iactories in this country vhere centrifugals are not used the starch is generally put upon the market in the form of laru-e granule? and is afterwards powdered if so required. The protests are overruled and the decision of the collector affirmed in each case. 25 26 DOMESTIC POTATO-PRODUCT INDUSTRIES. POTATO FLOUR. (T. D. 34236.) Potato flour obtained by reducing entire potatoes to the state of flour by desiccating and grinding, dutiable as a nonenumerated manufactured article at the rate of 15 per cent ad valorem, under paragraph 385, tariff act of 1913. TREASURY DEPARTMENT, March 5, 1914. SIR: I have to acknowledge receipt of your letter of the 21st ultimo, relative to the classification of potato flour obtained by reducing entire potatoes, sometimes with and sometimes without the skins, to the state of flour, by desiccating and grinding, the process involving the application of sufficient heat to materially modify the starch granules. You cite the decision of the board, Abstract 23912 (T. D. 30901), wherein it was held that similar merchandise imported under the tariff act of 1909 was properly dutiable as a nonenumerated manufactured article under paragraph 480 of the said act, and was not dutiable as "vegetables, prepared." The board, in the decision referred to by you, cited its previous decision, G. A. 5534 (T. D. 24904), wherein it was held that certain bean flour, which had been assessed with duty as a substance fit for use as starch, was properly dutiable as a non- enumerated manufactured article under section 6 of the act of 1897. In this decision the board cites its previous decision, G. A. 5361 (T. D. 24513), holding that the pro- vision for prepared vegetables does not include an article in which the manufac- turing process has advanced so far that the identity of the vegetable is practically lost. Following the decisions cited, the department is of the opinion that the provision in paragraph 581 for potatoes, dried, desiccated, or otherwise prepared should be limited to potatoes which have not lost their identity as such. You are accordingly directed to assess duty upon potato flour of the character under consideration at the rate of 15 per cent ad valorem as a nonenumerated manufactured article under para- graph 385 of the tariff act. Respectfully, CHARLES S. HAMLIN, (100269.) Assistant Secretary. COLLECTOR OF CUSTOMS, Neiv York, DESICCATED POTATOES. (6 Ct. Gust. Appls., 154, T. D. 35397.) Stein, Hirsch & Co. et al. v. United States (No. 1503). POTATO GROUND MEAL OR FLOUR. This article is produced from potatoes only and contains the entire and chamically unaltered elements of which the constituent potatoes themselves were composed. It has not acquired a new name, use, or character, and serves such culinary purposes as potatoes them- selves. It is potatoes, prepared, and falls within the provisions of paragraph 581, tariff act of 1913. UNITED STATES COURT OF CUSTOMS APPEALS, MAY 3, 1915. Appeal from Board of United States General Appraisers, Abstract 37090 (T. IX 35020). (Reversed.) Before Montgomery, Smith, Barber, De Vries, and Martin, Judges. MARTIX, Judge, delivered the opinion of the court: The present merchandise was imported under the tariff act of 1913. It was invoiced as "kartoffelwalzmehl," which is said by counsel to be a German word meaning "potato ground meal." The appraiser reported that the article in question consisted of potato flour obtained by reducing entire potatoes, with or without the skin, to the state of flour by des- iccating and grinding, the process involving the application of sufficient heat to mate- rially modify the starch granules. The article was returned for duty as a nonenu- merated manufactured article, at 15 per cent ad valorem, under paragraph 385, tariff act of 1913, in accordance with the department's instructions contained in T. D. 3423ii. Dutv was assessed accordinelv. DOMESTIC POTATO-PRODUCT INDUSTRIES. 27 The importers protested against the assessment, claiming that the merchandise was entitled to free entry as desiccated or prepared potatoes under paragraph 581, act of 1913, or if dutiable at all that it was only dutiable at 10 per cent ad valorem under the retaliatory proviso of that paragraph. The protest also claimed a rebate of 5 per cent on any duties which should be assessed upon the merchandise by virtue of subsection 7 of paragraph J of section 4 of the tariff act of 1913. This latter claim, however, was not sustained by any proofs at the trial before the board, and therefore may be regarded as abandoned for the present case. The protest was tried upon evidence before the Board of General Appraisers and was overruled, from which decision the importers now appeal. The question therefore is whether the present merchandise is desiccated potatoes or potatoes otherwise prepared, governed by paragraph 581, tariff act of 1913, or is a nonenumerated manufactured article, governed by paragraph 385 of that act. The following is a copy of the two competing paragraphs thus cited: 581. Potatoes, and potatoes dried, desiccated, or otherwise prepared, not specially provided for in this section: Provided, That any of the foregoing specified articles shall be subject to a duty of 10 per cent ad valorem when imported directly or indirectly from a country, dependency, or other subdivision of govern - ment which imposes a duty on such articles imported from the United States. 385. That there shall be levied, collected, and paid on the importation of all raw or unmanufactured articles not enumerated or provided for in this section a duty of 10 per cent ad valorem, and on all articles manufactured, in whole or in part, not provided for in this" section, a duty of 15 per cent ad valorem. The testimony discloses that the present article is produced from potatoes. The potatoes are cut into pieces about the size of ordinary potato chips, which are processed until they are thoroughly desiccated. These desiccated chips are used for culinary purposes in the place of potatoes. A certain part of this product, however, is ground into meal of several degrees of fineness, one kind resembling corn meal in appearance, the other being as fine as common wheat flour. The present merchandise belongs to the class last described and is especially useful for making bread, either alone or in combination with other materials. It is also useful for other culinary purposes, of which the making of soup may be named as an instance. The appraiser reports that the process above described has the effect of materially modifying the starch granules of the constituent potatoes. This statement seems to be contradicted by the testimony of the witness Goldfrank, but both the statement and the testimony are somewhat indefinite. The court, however, does not understand that any chemical change in the substance of the potatoes is effected by the drying and grinding processes to which they are subjected. The three products above described, namely, the dessicated chips, the coarser meal, and the finely ground flour, are all subjects of importation into this country, but the fine flour is the form which is most frequently imported. The present question is whether that product is free of duty as potatoes "desiccated, or otherwise prepared, " under paragraph 581, above copied. As is stated above, the appraiser in his official report named or described the article as "potato flour." The record contains the testimony of two witnesses only. One of these testified that the present article is "desiccated potatoes"; the other witness stated that the article is "ground potato or potato flour." Neither statement is in the nature of commercial testimony tending to prove a peculiar trade usage of the statutory terms in question; those terms therefore must be accepted in this case according to their common or ordinary signification. It therefore appears that the present article is produced from potatoes only, and that it contains the entire and chemically unaltered elements of which the constitu- ent potatoes themselves were composed. ' It, also appears that the article is used like potatoes for culinary purposes, and apparently possesses the same food values as potatoes. It is truo that it is chiefly, and indeed almost exclusively, used for making bread, but it may also be used in making soup and other dishes. The fact that the article is used in making bread does not imply that it has ceased to be prepared pota- toes, since bread is also made from potatoes which are not first desiccated like the present product. The following quotations relate to this subject. Century Dictionary: P'tfuto brrad. A broad madp of potatoes which have been boiled, pressed till they are dry, beaten up, kneaded with wheat Hour, aniseed, and yeast, and then baked. Standard Dictionary: Potato bread. \ bread made of boiled sweet (sometimes white) potatoes mixed with wheat flour and yeast. It. therefore appears to be within common knowledge that potatoes are used in making bread and that this is done at times by first boiling the potatoes and then mashing them, so that they may be kneaded with wheat flour and baked into bread. The use of the present article in making bread does not differ essentially from the one 28 DOMESTIC POTATO-PRODUCT INDUSTRIES. just above described as a commonly known use of potatoes. It may also be noted that wherever the present article is named or described in the record the term "potato " appears as part of its title. The article is therein called potato ground meal, potato flour, ground potato, or desiccated potatoes. The court therefore concludes that after all the present article has not acquired a new name, use, or character, but still retains the name and essential characteristics of potatoes, and serves such culinary purposes as potatoes themselves serve. The article differs from potatoes in their original form only because it is prepared for the uses to which potatoes as such are applied. It is, consequently, "potatoes, prepared," rather than a new manufacture from potatoes. Vitelli & Son v. United States (4 Ct. Gust. Appls., 75; T. D. 33313). An additional consideration may be suggested in support of this conclusion. The tariff act of 1909 laid a duty of 40 per cent ad valorem upon "vegetables, prepared in any way" (par. 252), and also a duty of 25 cents per bushel upon "potatoes" (par. 263). There was no specific provision in the act for "potatoes, dried, desiccated, or otherwise prepared," such as nosv appears in the act of 1913. When merchandise like the present article was imported under the tariff act of 1909, the Government assessed the same with duty at 40 per cent ad valorem as pre- pared vegetables under paragraph 252. The importers protested, claiming assessment of the merchandise as a nonenumerated manufactured article. The board sustained such protests, holding that the article was not a prepared vegetable under paragraph 252 or the act, but was an unenumerated manufactured article. The potato para- graph of the act of 1909 did not apply to the case at all, since it only included potatoes which were to be assessed by the bushel. The following board decisions under the act of 1909 severally held the present article to be dutiable as a nonenumerated manu- factured article rather than a prepared vegetable: Abstract 23912 (T. D. 30901), Abstract 24033 (T. D. 30969), Abstract 24537 (T. D. 31207), Abstract 25573 (T. D. 31589), Abstract 24918 (T. D. 31335), Abstract 26347 (T. D. 31832), Abstract 26277 (T. D. 31813), Abstract 27204 (T. D. 32031), Abstract 27464 (T. D. 32126), Abstract 28784 (T. D. 32618), Abstract 28184 (T. D. 32424). These decisions were all published prior to the tariff revision of 1913, and in each decision as published the merchandise itself was named or described by the board as "ground desiccated potatoes." In the light of the foregoing decisions, holding that "ground desiccated potatoes" were unenumerated in the tariff act of 1909, Congress enacted paragraph 581 of the tariff revision of 1913, and provided therein for the free entry of "potatoes, and pota- toes dried, desiccated, or otherwise prepared." The fact that "desiccated potatoes" were thus enumerated eo nomine in the act of 1913, following the foregoing decisions dealing with the present article under that name, tends strongly to the conclusion that this identical merchandise was within the contemplation of Congress at the enactment of the latter paragraph. This conclusion is strengthened by the appearance of the phrase "or otherwise prepared " in the same provision. In this view of the case the decision of the board is re versed, and the case is remanded in order that the collector may assess the retaliatory duty of 10 per cent ad valorem provided for by paragraph 581, supra, in case it be found that the present merchandise is "imported directly or indirectly from a country, dependency, or other subdivision of government which imposes a duty on such articles imported from the United States." It may be added that counsel have cited numerous decisions in support of their respective contentions. These have been examined, but need not now be discussed. Reversed. o JBRARY FACILITY A 001 274 555 o