I' 1897. CONGRESSIONAL RECORD-SENATE.. 2023 . A letter from M. P. Kohlberg & Co .• importers of and dealers in in the Navy, from the 19th day of June, 1897 (subject to the ex­ leaf tobacco and cigars, of San Francisco, Cal.; aminations required by law) 1 vice Commander William H. Whit­ A letter from William Rehker, secretary of the Cigar Makers' ing, promoted. Local Union No. 248, of San Francisco, Cal.; A telegram of The. Feeny, secretary, of Oakland, Cal.; . CONFIRMATIONS. A letter of M. A. Roberts, secretary of the Alameda County Federation of Trades, of Oakland, Cal.; Executive n01ninations confinned by the Senate June 25, 1897. A letter from G. W. Perkins, president of the Cigar Makers' CONSULS. International Union of America, of Chicago, TIL; Edward H. Thompson, of Massachusetts, to be consul of the A letter of Harry Marks, recording secretary of the Cigar United States at Progreso, 1\Iexico. Makers' Local Union No. 228, of San Francisco, Cal.; Horace W. Metcalf, of :Maine, to be consul of the United States A letter of H. E. Dewey, president, and A. Vinette; sect·etary of at N ewcastle-on-Tyne, England. the Los Angeles County Council of Labor, of Los AngeTes, Cal.; William Jarvis. of New Hampshire, to be consul of the United A letter of F. J. Hepp, secretary of the. Cigar Ma:!rers' Local States at Milan, Italy. · Union No. 291, of San Jose, Cal.; . A letter of F. C. Ferris, secretary of the Cigar .Makers' Local UNITED STATES DISTRICT ATTORNEY. Union No. 332, of San Diego, Cal.; J. Otis Humphrey, of illinois, to be attorney of the United States Two letters of H. E. Martens, secretary of the Ci:;ar Makers' for the southern district of Illinois. Local Union No. 225, of Los Angeles, CaL; MARSHALS. A letter of G. W. Perkins, inte1·national presicle::1t of Cigar Makers' International Union of America, of Chicago, Ill.; and Addison Davis James, of Kentucky, to be marshal of the United A letter of G. S. Nicholas, of New York City. States for the district of Kentucky. Mr. CHIL'l'ON. I propose an amendment to the pending bill, Charles P. Hitch, of lllinois, to be mat·shal of the United States and ask that it be printed. for the southern district of Illinois. The VICE-PRESIDENT. It will be so ordered. Walter H. Johnson, of Georgia, to be marshal of the United Mr. PETTUS. I renew my motion that the Senate proceed to States for the northern district of Georgia. the consideration of executive business. COMMISSIO!\~P.S. The motion was agreed to; and the Senate proceeded to the Albert C. Thompson,. of Ohio: Alexander C. Botkin, of Montana, consideration of executive business. After seven;;"en minutes and David B. Culberson, of Texas, to be the commissioners to spent in executive session the doors were reopeneC. , and (at 5 Tevise and codify the criminal and penal laws of the United State~. o'clockand20minutesp. m.) the Senate adjourned until to-morrow, REGISTER OF THE LAND OFFICE. Saturday, June 26, 1897, at 11 o'clock a.m. Charles Kingston, of Grover., Wyo., to be register of the land office at Evanston, Wyo. NOMIN A.TIONS. RECEIVER OF PUBLIC MONEYS. Executive nominations received by the Senate June 25, 1897. Frank M. Foote, of Evanston, Wyo., to be receiver of public moneys at Evanston, Wyo. DEPUTY AUDITOR. COLLECTOR OF INTERNAL REVENUE. George W. Esterly, of Minnesota, to be deputy auditor for the Richard Yates, of illinois, to be collector of internal revenue State and other Departments, to succeed James J. Willie, re- for the eighth district of Illinois. moved. COMMISSIONER OF IMMIGRATION. POSTMASTER. George B. Billings-, of Massachusetts! to ce commissioner of George E. Smith, to be postmaster at Laurel, in the- county of immigration for the port of Boston, in the State of Massachusetts, Sussex and State of Delaware. to succeed Thomas F. Delhanty, resigned. COMMISSIO:NERS TO EXAMINE AND CLASSIFY LANDS. SENATE. George A. Black, of Fairhaven, Wash., to be a commissioner to examine and classify lands withln the land~rant and indemnity SATURDAY, June 26, 1897. land-grant limits of theNorthern Pacific RaLroad Company in the Camr d'Alene land district in Idaho, vice John E. :McManus, The Senate met at 11 o'clock a. m. removed. Prayer by Rev. HuGH JoHNSTON, D. D., of the city of Wash­ Thomas A. Davis. of Malad, Idaho, to be a commissioner to ington. examine and classify lands within the land-grant and indemnity The Secretary proceeded to read the Journal of yestm:day's pro­ land-grant limits of the Northern Pacific Railroad Company in ceedings, when, on motion of Mr. TELLER, and by unanimous the Camr d'Alene land district in Idaho, vice Joseph T. Scott, re­ consent, the further reading was dispensed with. moved. DRAWBACK ALLOWANCES. William Ryan, of Rathdrum, Idaho, to be a commissioner to The VICE-PRESIDENT laid before the Senate a cmnmunica­ examine and classify lands within the land-grant and indemnity tion from the Secretary of the Treasury, transmitting, in response land-grant limits of the Northern Pacific Railroad Company in to a resolution of the 17th instant, copies of the evidence or state­ the Cceur d'Alene land district in Idaho, vice John B. Goode, re­ ments on which the drawback allowances contained in Circular moved. No. 102, of June 25, 1896., division of customs, were based; which PROMOTION IN THE :MARDI~ CORPS. was read. Second Lieut. William N. McKelvy, United States Marine MT. VEST. Mr. President, I suggest the absence of a quorum. Corps, to be a first lieutentant in said c::>rps from the 20th day of The VICE-PRESIDENT. The absence of a quorum being sug.:. June, 1897 (subject to the examinations required by iaw), vice gested, the Secretary will call the roll. First Lieut. Thomas C. Prince, promoted. The Secretary called the roll, and the following Senators an- swered. to their names: · ENYOY EXTRAORDINARY AND MINISTER PLENIPOTE..~TIARY. Allen, Hawley, Morrill, Teller, Irving B. Dudley, of California, to be envoy extraordinary and AlliRon, Heitfeld. Pasco, Turner, minister plenipotentia-ry of the United States to Peru, vice James Berry, Hoar, Pettigrew, Turpie, A. McKenzie, resigned. Burrows, Jones, Ark. Pettus, Vest, Carter. Lodge, Platt, Conn. Waltkall, CONSULS. Chandler, McLaurin, Platt, N.Y. Wetmore, Frank C. Denison, of Vermont, to be consul of the United Clay. Mallory, Proctor, White. Fairbanks, Mills, Rawlins, States at Woodstock, New Brunswick, vice Grenville James, Frye, Mitchell, Sewell, resigned. Harris, Kans. Morgan, !::ltewart, Frank. Dillingham, of California, to be consul of the United The VICE-PRESIDENT. Thirty-seven Senators have answered S.tates at Auc!dand, New Zealand, vice John Darcy Connolly, re­ to their names. There is not a quorum present. signed. Mr. VEST. I move that the Sergeant-at-Arms be directed to PROMOTIONS IN THE NAVY. request the- attendance of absent Senators. Capt. George C. Remey, to be a commodore in the Navy, from The motion was agreed to. the 19th day of J nne, 1897, vice Commodore Edmund 0. Matthews, The VICE-PRES-IDENT. The Sergeant-at-.A.rms will execute ~omoted. · the order of the Senate. Commander William H. Whiting, to be a captain in the Navy, After some little delay, Mr. DEBOE, Mt. PRITCHARD, Mr. from the 19th day of June, 1897, vice Capt. George C. Remey, ELKINS, Mr. KENNEY, Mr. PERKINS, Mr. GRAY, Mr. WELLING­ promoted. TON, and Mr. MURPHY entered the Chamber and answered to Lieut. Commander Frederick M. Symonds, to be a commander their names. 2024 CONGRESSIONAL RECORD-SENATE. JUNE 26,

The VICE-PRESIDENT (at 11 o'clock and 20 minutes~- m.). r~ghtsand_interestsof the United States in respect of the matters in this sec­ Forty-five Senators have answered their names. A quorum is tion ment10ned, and to take steps to foreclose any mortgage or lien of the to United States on any such railroad property. present. "SEc. 5. That the sinking funds which are or may be held in the Treasury Mr. ELKINS. I move that further proceedings under the call fC?r the se~mity ~~ the indel?tedness of either or all of said railroad compa­ be suspended. ~es may, m addition to. the mvestments now ~_~>uthorized by Jaw, bo invested many bonds of the Umted States h eretofore Issued for the benefit of either The motion was agreed to. or. all of said. comJ?a.nies, or in any of the first-mortgage bonds of either of The VICE-PRESIDENT. The communication from the Secre­ sal~ compameswhlCh have been issued under the authority of any law of the tary of the Treasury which was laid before the Senate will be Umted States and secured by mortgage cf their roads and franchi. es which by any law of the United States have bet:n made prior and paramount to the printed. with the accompanying papers, and referred to the Com­ mortgage.lien, or other security of the United State in respect of its advances mittee on Finance. to either of sa.id companies as provided by law;" and CHINESE EXCLUSION. Whereas certain first-mortgage bonds on the said Union Pacific Railroad Comp::myha>e matured, and the holders thereof have instituted foreclosure 'l'he VICE-PRESIDENT laid before the Senate a communica­ proceedings in se·veral of the United States circuit courts to foreclose the tion from the Secretary of the Treasury, transmitting, in response liens created thereby and sell said railroad and all other properties and r igbt..s balonging thereto, and said foreclosure proceedings may, unless prevented to a resolution of the 17th ultimo, certain reports, etc., relating to by the President, proceed to final decrees and a final sale of all of said prop­ the alleged illegal entryinto the tJnitedStatesof Chinesepersons; erties be made: Therefore, which was read. Heso!ved by the Senate of the United States. That it is the sense of the Sen­ ate that ~he President should, in strict acciordance with the above-quoted Mr. PROCTOR. I move that the report and accompanying statute, direct the Secretary of the Treasury to carry out the provisions of documents be referred, without printing, to the Committee on said act by redeeming or otherwise clearing off the paramount liens, mort­ Printing. This course is taken by an arrangement with the Sen­ gages. and incumbrances on said railroad by paying the sums lawfully due in respect thereof out of the '.rreasury to the holders of prior liens, and that atoJ: from West Virginia [Mr. ELKINS] who introduced the reso­ the President hould direct the Attorney-General to take such steps and pro­ lution. ceedings in the courts and otherwise as shall be needful to redeem such prop­ The motion was agreed to. erty from any prior mortgage, lien, or incumbrance necessary and proper to defend the interests of the United States in respect to the matters in said PETITIONS AND MEMORIALS. act of CongrPss mentioned, and to take steps to foreclose any mortgaae or lien of the. United States on any of said railroa1. property. And that the 1\fr. HOAR presented a petition of sundry citizens of Somer­ President is requested to suspend proceedings to carrv into effect the agree­ '\'ille, 1\Iass., praying for the enactment of legislation prohibiting ment alleged to l;lave been made to sell the interest of the united States in the transmission by mail or interstate commerce of pictures and the Union Pacific Railroad, and in the sinking fund, until the further action descriptions of prize tights; which was ordered to lie on the table. of Conrrress is had in reference thereto. Mr. TELLER presented sundry memorials of citizens of Colo­ Mr. HARRIS of Kansas. Mr. President, the statement which rado, remonstrating against the enactment of legislation intended I submit represents the views of myself, the Senator from Ala­ to destroy the present system of ticket brokerage; which were bama [1\fr. MORGAN], and the Senator from Utah fMr. RAWLI rs] . referred to the Committee on Interstate Commerce. [Senate Document No. 161, Fifty-fifth Congress, first session.] Mr. CLAY presented sundry memorials of citizens of Georgia, UNION PACIFIC RAILROAD. remonstrating against the enactment of legislation intended to Mr. HARRIS of Kansas, from the Committee on PacifiC' Railroads, per­ destroy the present system of ticket brokerage; which were referred sented the following viPws of Mr. HARRIS of Kansas, concurred in by Mr. RAWLINS and Mr. MORGAN, on Senate resolution No.125, reported from the to the Committee on Interstate Commerce. Committee on Pacific Railroads, with amendments: Mr. HARRIS of Kansas presented sundry memorials of citizens The most casual examination of the acts of Congress relating to the Pacific of Kansas, remonstrating against the enactment of legislation in­ railroads fully establishes the fact that these roads were intended by Con­ gress, as a national policy. to constitute one great continuous national high· tended to destroy the present system of ticket brokerage; which way from the Missouri River to the Pacific Ocean, and while. for the sake of were referred to the Committee on Interstate Commerce. expedition.. the work of construction was intrusted to several companie. . the Mr. BACON presented sundry memorials of citizens of Georgia. practical and effective unity of the line was constantly and carefully kept in view, and all po sibility of interference with that object was strictly guarded.. 1·emonstrating against the ena-Ctment of legislation intended to '.rhe possible danger of insolvency or failure of any one of the companies, destroy the present system of ticket brokerage; which were re­ or of all of them, was provided for by the provisions of thi act of March 3, ferred to the Committee on Interstate Commerce. 1887, quot.ed in the resolution, and ample power was conferred upon the Ex­ ecutive to use money in the Treasury or in the sinking fund to pravent the Mr. PLATT of New York presented sundry memorials of citi­ possible action of any creditors of the company to in auy way interfere with zens of New York, remonstrating against the enactment of legis­ the action and operation of tho roads as a great; instrumentality of tho Gov­ lation intended to desh·oy the pre ent system of ticket brokerage; ernment. When, therefore, the executive department of the Government which were refern~d to the Committee on Interstate Commerce. consents to an arrangement by which this fundamental object of the law is absolutely and forever defeated, and the great line s~ highly prized i~:~ to be Mr. LODGE presented sundry memorials of citizens of Massa­ divided up among warring and conflicting interests, it is time t'or an earnest chusetts, remonstrating against the enactment of legislation in­ and em ph::~. t ic protest on the part of Congress; and when, further, it is found tended tu destroy the present system of ticket brokerage; which that the Executive not only permits but actually participates and aids in the execution of this rlestruction, as is shown by the correspondence as given by were referred to the Committee on Interstate Commerce. the letters trom the Attorney-General in response to the Senate r e. olutions of Mr. SPOONER presented the memorial of E. G. Mil1s and 45 Janum·y 23 and of March ~~6. 1897, and hereto attached, and ac:tually proposes other citizens of Superior, Wis., remonstrating against the enact­ to consent. to a surrender of the sinking fund, and the enormous sacrifice of th<:'l pecuniary interests of thE' Government, it would seem beyond the power . ment of legislation intended to destroy the present system of ticket of the most able of corporation agencies to satisfactorily explain such action. brol{erage; which was referred to the Committee on Interstate This correspondence shows letters from various Government directors highly Commerce. approving this unlawful proceeding. If we are to believe the current news of the day, some of these directors are largely interested in the proposed new He also presented the petition of Joseph Pettit and 59 other citi­ organization, and history seems about to repe:1t itself, and the practices of zens of La Pointe, Wis., and the petition of C. F. Pierson and 24 the Credit Mobilier and the construction companies of the past to be once other citizens of Florida, praying for the early passage of the pend­ more r evi>ed and put in operation. No information has come to the .committee as to the plan of reorganization ing tariff bill; which were ordered to lie on the table. which i · proposed as a sequel to the purchase of the interests of the United UNION PACIFIC RAILROAD. States in the Union Pacific Railroad and tho sinking fund except statements in the newspaper s which have not been contradicted. There are appended Mr. HARRJS of Kansas. From the Committee on Pacific Rail­ roadsil·eportback with amendments the resolution submitted by f!t1;;t~n~~ ~c:h: at~~~~~o~ ~~~~::t~~~fr~~~t~nm~~~-York, which are of ~the Government ha.s knowledge of this phm of r eorganization, it has not me and referred to that committee. I desire to submit a brief been communicawd to Congress; and the baste in the sale of tb.e property statement in regard to the views of some members of the commit­ under t-he existing agreement with the forml'r Executive, which is evidently a part of the plan, raquire:;: the active intervention of Congress in demand­ tee, which I shall ask leave to have printed. ing a full knowledge of the plan in course of execution. :1\fr. MORGAN. Let the resolution be first read. According to estimates made as of January 1. Ui97, the total debt of the The VICE-PRESIDENT. The Secretary will read the resolu­ Union Pa<'ific Company is $9~.285.344.36 . The bond and interest account cred· tion as proposed to be amended. it to l'l1::trcll 1,1 96. are S2().14ti.SS9.33; further credits on account of tran por· tation services to January 1, 1~97, 81,600,000, leaving a balanca of indebtedness The Secretary read as follows: of 870.53:3,455. As the sinking fund is not to be deducted from this sum, but is Wher eas by an act of Congress entitled "An act authorizing an investiga­ to be tm·ned over to the reorganized company on the,.p,ayment of 8!5 754,059.99, tion of the books, accounts, and methods of railroads which have received aid the actual loss in money to the Government will be $:A,78t3!JG. In addition to from the United States, and for other purposes," approved :March 3, 1887, it this there will undoubtedly be great losses sm;tained by other creditors of the is provided: company, because this is intended, apparently, to b2 a complete transfer of all "SEc. 4. That whenever, in the opinion of the President. it shall be the rights, property, and franchises of the existing company to a new company deemed neces ary to the protection of the interests and preservation of the in virtue of a decree of the court and by its assistance in the execution of a security of the United States in respect of its lien, mortgaae, or other interest contract that Congress alone ean ratify. · in any of th9 property of any or all of the several companie.~ upon which The undersigned append a statement of a n ewspaper reprt>senting a com· alien, mortgage, or other incumbrance paramount to the right, title, or inter- plaint of the minor shareholders and giving some Idea of the injury which would r esult to that class of creditors of the company. ~~~f ~~~ ~:;it~~n i:~lJ?; ~~tl~a~eb~r~fr~~·d~rt~~~J>;:~~~;~~ ~~~~l- But there is another class of creditors who have furnished the money with ury shall, under the direction of the President, redeem or otherwise clear off which tllese roads have been built, by payment of double price for Govern­ such paramount lien, mortgage, or other incumbrance by paying the sums ment land and by exorbitant rates of freight and fare, who have a right to lawfully due in respect thereof out of the Treasury; and the United States claim every possible consideration at the hands of Congress. shall thereupon become and be subrogated to all rights and securit.ies there­ Tne people living along these lines of road and throughout the West are the tofore per taming to the debt, mortgage, lien, or other incumbrance in respect burden bearers and t·eal creditors above all others whose claims must be of which such payment shall have been made. It shall be the duty of the considered. Congress has in its hands a sacred trust to perform in seeing to Attorney-General, under the direction of the Presidentl to take all such steps it that all the property and facilities which h&ve been created at tbe expense and proceedings, in the courts and otherwise, as shall oe needful to redeem of these people shall be preserved intact, and that no syndicates of bankers, such lien, mortgage, or other incumbrance, and tp protect and defend the bondholders, or others shall be allowed to step in and dismember the great 1897. CONGRESSIONAL RECORD-SENATE. 2025

agency which is sacredly and forever to be preserved to the people, and it is [Senate Document No. 83, Fifty-fourth Congress, second session.] for their benefit and interest that the committee recommend earnest and DEPARTMENT OF JUSTICE, Washington, D. 0., Janua1·y 23, 1897. effective action. The provisions of the Thurman Act so clearly and Rpecifically state for SIR: I have the honor, pursuant to the Senate resolution of this date, to say what purpose the sinking ft.md shall be used that it is almost impossible to that an agreement has been made with what is commonly known as the reor­ conceive of snch an unlawful and improper action being taken in the face of ganization committee-of the Union Pacific Railway Company respecting the law so full and comprehensive. . foreclosure of the Government lien on property of said company. I transmit The power to sell that fund is not given to the President by any law. herewith a copy of the letter of the President of the United States, under au­ In section 11 of that act the duty of the Attornfly-General is specifi<'ally thority-of which the agreement was made and foreclosure proceedings have stated. It is not a matter of choice with him, but it is most absolutely and been commenced, and copies of the correspondence which embodies the agree- imJ>eratively his duty. m~~ • 'SEc.ll. That if either of Sll.id railroad companies shall fail to perform all The names of the gentlemen who comprise the reorganization committee and singular the requirements of this act a~d of the acts hereinbefore men­ are as follows: Louis Fitzgerald, chairman; Jacob H. Schiff, T. Jefferson tioned, and of any other act relating to !:aid company, to be by it performed, Coolidge, jr., Chauncey M. Depew, Marvin Hughitt, Oliver Ames, 2d. for the period of six months next after such performance may be due, such These papers E:et forth all the information called for by the resolution. failure shall o:perate as a forfeiture of all the rights, privileges, grants, and After the closing of the agreement I designated the United States Trust franchises denved or obtained by it from the United States; and it shall be Company of New York as the depositary, and thereupon, upon the 21st the duty of the Attorney-General to cause such forfeiture to be judicially instant, the sum of S1.500,000 was deposited therein in conformity with the enforced." terms of the agreement. The certificate representing such deposits is now The undersigned herewith submit various decisions of the Supreme Court in the bands of the Secretary of the Treasury. bea1·ing directly npon this action and can not hesitate to recommend the im­ I have the honor to be, w1th great respect, your obedient servant, mediate passage by the Senate of the resolution now before the committee. JUDSON HARMON, Attorney-General. W. A. HARRIS. The PRESIDENT OF THE SENATE. JNO. T. l\IURGAN. J. L. RA WLIN~. EXECUTIVE MANSION, Wctsl!ington, January 12, 1897. [99 U. S., 72!--725. Sinking-fund cases. Union Pacific Railroad Company t:s. DE-c\R SIR: The bill which has been for some time pending before the Con­ United States. Central Pacific Railroad Company vs. Gallatin.] gress, providing for the adjustment and extension of the indebtedness of the The United States occupy toward this corporation a twofold relation-that Pacific railroads to the Government of the United States, has been de~eated of_sovereign and that of creditor. (United States vs. Union Pacific Railroad in the House of Representatives. Co., 98U. S.,569.) Their rights as sovereign are not crippled because they are In the case of the Union Pacific Railroad and the Kansas Pacific Railroad, creditors, and their privileges as creditors are not enlarged by the charter a default in the payment of their indebtedness having occurred, and suits becn.use of their sovereignty. They can not, as creditors. demand payment having been commenced for the foreclosure of the lien upon said roads which of what is due them before the time linlited by the contract. Neither can is ,I:aramount to the lien and security of the United States, you are hereby they, as sovereign or creditors, require the company to pay the other debts directed, pursuant to the provisions of an act of Congress passed l\Iarch 3, it owes before they mature. 1!i87, after taking such precautions and perfecting such arrangements as are But out of regard to the rightg of the subsequent lit3n holders and stock­ possible to assure as far as practicable the payment of their indebtedness to holders, it is not onl:r their right but their duty as sovereign to see to it that the Government as a result of the suits now pending or. others to be insti­ the current stockholders do not, in the administration of the affairs of the tuted, tn take such proceedings in the courts as shall be needful to protect corporation, appro:priate to their own use that which in equity belongs to and defend the rights and interests of the United States in respect of such others. A legislative regulation which does no more than require them indebtedness, and to take steps to foreclose the mortga~es or liens of ths to submit to their just contribution toward the payment of a bonded debt United States upon the pro:perty of these railroad compames. can not in any sense be said to deprive them of their property without dU'e In the case of the other aided Pacific railroads as to which no foreclosure process of law. suits are pending, a different situation is presented, which requires further consideration before deciding the course to be taken by the Government. Yours, truly, [103 U.S., 651. Wardell vs. Railroad Company.] GROVER CLEVELAND. 1. ~he directors of a corporation are subject to the obligations which the Hon. JUDSON HAR11fON, law llllposes upon trustees and agents. They can not, therefore, with re­ .Attm-ney-General of the United States. s:pect to the same matters, act for themselves and for it, nor occupy a posi­ tiOn in conflict with its interests. 2. Hence, a court will refuse to give effect to arrangements by directors DEPARTMENT OF JUSTICE, Washington, D. C., JanuaT1.j 18, 1897. of a railroad company to secure, at its expense, undue ad vantages to them­ Sm: Hon. George Hoadly, special assistant to the Attorney-General, has selves, by forming, a!> an auxiliary to it. a new company, with the under­ sent me your letter to bim of the 15th instant, making a proposition on be­ standing that they or some of them shall become stockholders in it and then half nf your committee for a guaranteed minimum bid for the property of that valuable contracts shall be given to it by the railroad company, in the the Union Pacific and Kansas Pacific railway compmies and the Union Pa­ profits of which they, as such stockholders, shall share. cific sinking fund as a basis for the Government's proceeding to foreclose its 3. The contract entered into July 16, 1868, by the Union Pacific Railroad lien thereon. I am authorized by the President to commence foreclosure Company by direction of the executive committee of the board of directors, proceedings, as suggested in your proposal, provided it is modified in the 'vith Godfrey and Wardell (infra, page 652), which the latter assigned, without following particulars: consideration, to a new company, in which a majority of the stock was taken (1) In order to preserve the basis of the original informal negotiations, by six directors of the old company, declared to be fraudulent and void. wqich took place in the absenee of an accurate statement of the sinking fund. your offer should be modified so that the amount of the guarantied bid [131 U. S., 287. Chicago, Milwaukee and St. Paul Railway Company vs. Third therein named will be $-15, 75!,059.99, instead of the sum of $-15,000,000. N aticnal Bank of Chicago.] (2) Tpat the following .clause of your proposal be eliminated, viz, "and The properties of a corporation constitute a trust fund for the payment of that, to the extent to which the Government may determine the terms of its debts; and when there is a misap_propriation of the funds of a corpora­ decree, an equal deposit to be made withm a reasonable time before sale shall • tion~ equitr, on behalf of the creditors of such a corporation, will follow the be required as a qualification of any other bidder." While I have no doubt funas so diverted. The Milwaukee Company, from securities on the prop­ that the court will follow tile uniform practice in railway foreclosures of re­ erty of the Pacific Company, received nearly $3,000,000; part it use-d for the quiring a deposit of all bidders as a guaranty of good faith and security for benefit of the lessor company, and part it appropriated to its own benefit. performance, and while the Government will obviously have the same inter­ Can it do this, and let the lessor company's debt go unpaid? Equity answers est as other parties in having such condition imposed, I do not wish to make this question in the negative, and such was the ruling of the circuit judge. a stipulation on that point as a condition of our arrangement. (26 Fed. Rep., 820.) (3) That your proposal is understood to mean that in case the property mentioned should not be sold as a unit, minimum bids for the separate por­ tions thereof are to be made which in the aggregate will produce to the Gov. [91 U. S. United States vs. Union Pacific Railroad Company.] ernment the net sum above mentioned. In case· of separate sales the deposit The bonds in.question were issued in pursuance of a scheme to aid in the named by you may of course be used for qualification of bidders representing construction of a great national highway. (Page 79.) you at ea.ch, in such proportions as may be required under the terms of sale. The enterprise was viewed as a national undertaking for national purposes; (4) Your guaranty applies to such sale or sales as shall become effective. a~d the public mind W!l-5 d.irected to the end in view, rather than to the par- The sale of the sinking fund may be judicial or otherwise. tiCular means of securmg It. (Page 8U.) · Your acceptance of the above modific.c1.tions of your proposal will close the The project of building the road was not conceived for private ends; and arrangement, aud I will proceed to institute foreclosure proceedings on be· the prevalent opinion was that it could not be worked out by private capital half ot the Government as soon as the deposit named by you is made for alone. It was a nationa-l work, originating in national necessities and requir­ which, upon receipt of your acceptance, I will designate the depositary.' ing national assistance. (Page 81. l Very respectfully, It is true the scheme contemplated profit to individuals, fol' without a ----, Attontey-Genetal. reasonable expectation of this, capital could not be obtained. nor the requi­ LOUIS FITZGERALD, Esq., site skill. and enterpris~. But ~his .considE?ra~on does not in itself change Ohairmcm Reorganization, Committee, Union PacificRwy.·Co. the relatron of the parties to thL~ smt. This rmgbt have been so if the Gov­ No. H!O Broadu:ay, New York, N. Y. ernment had incorporated a company to advance private interests, and agreed to aid it on aecount of the supposed incidental advantages which the public would derive from the completion of the projected railway. But REORG.Al\TJZ.ATION COMMITTEE, the primary object of the Government was to advance its own interests, and UNION PACIFIC RAILWAY COMPANY, it endeavored to engage individual cooperation as a means to an end-the New York, January fO, 1897. securing a road which could be used for its own purposes. (Page 81.) SIR: I have your favor of 18th instant, written in reuly to my let.ter of 15th Indeed, the whole act contains unmistakable evidence that if Congress was instant to Hon. George Hoadly, special assistant to tile Attorney-General. put to ~be nece~sity of carryi~g o~ a great public enterprise by the instru­ On behalf of the reorganization committ-ee of the Union Pacific Railway mentality of private corporatwns, It took care that there should be no mis­ Company, I have the honot· to accept the modifications proposed in your understanding about the objects to be attained or the motives which influ­ let.ter of January 18, 1897, to the proposal made in my letter to Hon. George enced its action. (Page 82.) Hoad]y dated on the 15th instant. The failt1re to perform that condition is a cause of forfeiture. If the nat­ I am, very respectfully, ural ~eaning ?f the words be adopted as the true meaning, there can be no · · LOUIS FITZGERALD, fol'feiture until the bonds themselves have matured. On the contrary, if the Chai1'1nan Union Pacific Reorganization Comrnittee. construction contended for be allowed, the grant is subject to forfeiture on Ron. JUDSON HARMON, each occasion that six months' interest falls due and is not met by the cor­ .Attm-ney-Gen-eTal, Washingt

submit to yon1 and through you;to the executive department of. the-Govern­ · Fitzgerald!s proposal. -We-find two things in it to which we wish you to call ment, the following: the committee's attention, with a view, if possible, of having them changed In the event that the Government shall at once-take proceedings in the pend­ b efore I take final action: ing foreclosure suits, or by independent bills, for-the enforcement of its lien First. I do not like the clause "thab to the extent to-which tlie Government upon the railroad and property of the Union Faciflc Railway (which includes may: determine the terms of the decree, an equal deposit, .t o be made within a the Kansas Pacific line) by sale thereof; and for the sale ot the sinking fund reasonable time before sale, shall be. required as a qualification-or- any other in the h ands of" the Secretary of the Treasury relating to the Union E'aciflc bidder." Railway Company, the reorganization committee is prepared to gun.rantee a This is a new feature which has never been mentioned in any of the in­ minimum bid for the Union and Kansas Pacific lines of railroad and property formal discussions of the subject. Whilethecourt will d oubl;less 1in the d ecree embra<)ed within the lien of the Government;-, and fOl' the-cash and securities· for sale, follow the usual custom. of requil!ing a deposit of some s ort from.the ili the United St!ttes Union Pacific sinking fund, taken at par, which shall bidders, this is a matter for the court and not for the parties, to determine. produce to the Government, over and above anyJ)riOl' liens and charges upon While ordinarily counsel for the parties, in presenting their proposed decree, the railways and sinking fund, the tmt sum of$45,000,000. suggest this, among- other terms, and while whoever inay. r epresent the The committee is :prepared to-furnish adequate security. for the ~ue per­ Government in the snit at the time the· decree shall be entered will agree to formance of the above offer.. As such security, it. will deposit with such na­ any reasonable suggestions in this regar.d, r do not want. to agree in. advance tional depositary in New York City affmay be selected bytlie proper officers on the su1iject. of the Government the sum of:$4:,500,000 in cash (namely, 10 pel!: cent of the My reason i'l this: One of the strongest features of the·proposed arrange- guaranteed bid), subject to the condition that thisdeposit-may; be used, under m ent is that it-secures the Government against- the sacrifice of its claim by the terms of the forecloSUI'ff decree, as a deposit to qualify such bidders a.s ·assuring at least a certain sum, and also saves to the Government whatever may act on behalf of the reorganization: committee, and-that to the· extent to advantage there· may be in a public sale at. which all may compete. If' I yhich the Government may determine the terms of decree, an equal deposit, should now a~ree to any proviffion which mjght' be construed as a restriction to be made within a reasonable time before sale, shall be required as a quali­ upon other bidders; I can.see how embarrassment might ensue, in view of the fication of any other bidder. Should the Government desire to liquidate the public character in which I am acting and of the general' situation. sinking fund in advance of sale of the railway property, the reorganization It must be :remembered, too, that this deposit, as between the Government committee will be prepared to anticipate this feature of its offer by an earlier and the committee, is not a condition of the bidding, as the deposit which purchase of. the sinking fund at par of the cash and securities therein con­ may be requh·ed by the decree will be, but is an entirely different thing, tained. namely, a security to. the Government that the minimum bid wilL be made. .As the provision proposed is one of very considerable ma~nitude~ and as the This amount; therefore, bears no necessary relation to the deposit which proposition is based upon conditions whichnow-exist,.it Wlil be obvious that should be required of the otherbidders. the reorganization committee must reserve, and it desires to be· understood as Second. I have always understood,. in referring to the sinking fund-in reserving, the right to withdraw this offer at any time yrevious to its- accept­ fact, I think itt has always. been so-eJkl)ressed-that the sinkin.g fund as it ance by the Government. stood on. January 1, 18971 was meant. While, of course, the Government will I have the honor to be, very respectfully, younr; be bound if it-acceptsth.e proposal not to diminish the sinking fund or change LOUIS FITZGERALD, it by any act of its own, yet in the time which may ensue between the making Chairman of the Reorganization, Committee of the agreement and the actual sale of' the property-the amQunt of..cash:is of the Union: Pacijio Railtvay Company. lilrelyto be increased. I-should• just sug~est:; therefore, that the proposal Bon. GEORGE HoADLY, be amended so as to specify a date as of which the sinking fundis to bs taken, Special Assistant·to .Atttorney-Gene1·al,. so that there will be no possibility of misunderstanding. No. f!!J William Street; New York City. I shall be glad if the committee, in such form ag they--shall deem: best, will amend the p1•oposal in.thase two particulars•before I lay it before the Presi:­ dent: You will please explain to the committee that the1•e was some mistake [Senate Document No. 21: Fifty-fifth Congress, first-session.] or misunderstanding on the part of the Treasury accounting-officers who DEPARTMENT OF JUSTICE, Washington.,_D. C:, April 3, 1897. p;repared the statement of tho present condition of the· sinking fund, which I send y-ou, which, as·:the Secretary t.all.s--me, made the amount of. cash.on hand The Senate of,--the Ui~ited States:. considerably greater than it should be. I wish to remove any·ground · for In: response to· your resolution of the 26th ultimo; purporting to direct the possible misapprehension that there may be on this point. ~ttorney-General to inform the Senate whether·any and what agreement, if Kindly also assure the committee that 1 recognize their right to a prompt any; had been ent.ered into by the President or any of the Exe.cutivelJepart­ reply to.their-pr.oposal; and wilLact accordingly. tnents relating to the future disposal of the UnioruPacifio Railway· by sale or Very respectfully,, JUDSON' HARMON, otherwise, and that he send to the-Senate all papers on file in the Department Atttn-ney-Ge.neral: of Justice relating to said agreement, I have to sa.y- Hon. GEORGE HOADLY, (1) That on the 23d of January last. the.Attorne.y-Genera.l, in_ answer to a No. BiJ Williant- Stl·eet, New York, N. Y. similar resolution, sent to the Senateseveralpapersrelatingtoanagreement between him and Mr. :Louis Fitzger:ild. (2). '.Dhat inquiry at' the Treasury. Department and the· Department of the ' Interior fails to disclose any other agreements of the.kind·inquired'about. [Telegram.J (3) That I know· of" no otlier agreem.ent entered· into by the President or CHICAGO~ ILL., Jamuary 17, 1897. Attorney-General. Attorney-General JUDSON HARMON, (4) I transmit·copies of a few additional papers-concerning the agreement Wash.ingto1t-, D. C.: reported upon the 23d of January rast. . Respectfully, JOSEPH McKENNA, Lam-now: informed· that the Union Pa:dflaRailway reorganization commit­ ·Attorney-General. · tee are· readyto make the same offal\ substantially, that: Mr.. Goudert:.and myself so stron~ly recommended to President Cleveland lastr June, and. that they are now able to establish their bid upon a st~·ong footing by a sufficient [Tewgra~r , deposit of"cash.to·w.arrant. the Administration. in· taking immediate steps to DEPARTME-NT- OF J"USTIOE; Wasliington Dj 0., Janttary 16, 1897. secure an exceptionally good:. offer for the Government, which 1' have the 1 honor to represent. HOn: .GEO. HbADLY.; J~ W.DOA.NE. 22 William· Street, New Yol·l.l, N:Y.: Blease.,submit' copy of' pro1Josal to Government: directors, and ask them to l please advise.me in writing whether. they think. it should be. accepted. [Telegram.]. . HARMON. NEW YORK, January :aD; 18f!'l. ' 1Hon. JUDSO~ HARMON, NEW YoRK,.Janttary.16, 1897. .Attorney~General, Washington, D, C.: DEAR·SIRt I have examined the. proposal of tlie-Union Eacific reorganiza­ Government directors met to-day and adjom-ned to 1 o'clock to-morTow. tion committee to Mr. Koadly, by which·the sum of $45,000,000. s~cured by a They ask us to furnish copy of all correspondence with you relating to com­ d'el)osit of $4,500,000, is to be bid for the property, including-the-sinKing-fund, mittee's guaranty., with. copy of trust company's receipts of the earnest ovet~ and above all liens prior· to the lien of the United States. In my judg­ money, for purpose of embodyingin formal report to President. Shall I fur­ ttumt· this proposition ought to be accepted. nish, as requested? This is sent after consultation with Governo1' Hoadly. Yours, very:truly, E. ELLERY ANDERSON, A. W. KRECH, Secretar·y Re01·ganization Con~mittee , 1eo Bmadway. Governme1t-t Di1·ector. Ron. JUDSON· HARMON, Attorney-GenemZ. [Telegram.] DEPARTMENT OF .fllS.'l'ICE, Washington, D. a:, January £3, 1897. [Telegram.] A. W.KRECH, OMAHA, NEBR., January 17, 1897. Secretary Re01-gccnization Committee, Gen. JUDSON HARJ.ION, 120 Broadway, New York, N.Y.: Attorney-General, Washington, D. C.: No objections. to fu1·nisliing-directors-copy of all correspondence. Governor George Hoadly, special assistant attorney of Union Pacific mat­ HARMON.., Atto1-ney-Generaf. ters, telegralJhs me as follows: "Reorgamzation committee Union P.acific Railway offer in writing to bid at foreclosure of Government lien for railroad and sinking fund, subject to [Press dispatch.] first mortgage, $45,000,000 cash, and to secure bid by $4,500,000 cash deposited UNION PACIFIC REORGANIZATION-THE COMMITTEE HAS PREPARED PLANS immediately. No restriction on competition of oth~rs. Highest and best SATISFACTORY TO THE GOVBRNMlilNT. bid to take property. Please wire Attorney-General Judson Harmon. Wash­ BOSTON, June 15: ington, at once whether you advise the acceptance of this proposition and the immediate beginning of foreclosure proceedings on behalf of the-Govern­ Within a short time the reorganization commiLtee of the Union Pacific ment. This refers· to Union Pacific and Kansas Pacific only." Railway Company is ex:gected. to make public its plan for the reorganization of tho road, and assurances have been received. that the plan wilL be accepta· th~\~~s~ta~~t~~~~!~Yt~~~~ntt~{ ~~~et~:d~~i=t~rG~~::n~~~ts~£~Th~ ble to the representatives of the Government. It is expected that a new ally, I advi<>e the acceptance of this proposition. company will secure possession. The-time for the actual sale of the-road to J . N. H. PATRICK, . the new company. under the foreclosure proceedin~s was set for the first Gove1-nment Di1·ector. we.ek in-J"uly., but owin~ to· necessary legal formalities ib is· not- expected that the great system wiiT be operated by· the•new·company. much before Oc· tober of this-year. DEPARTMENT OW JUSTICE, The new plan is said to provide for the securing of the r oad. by the reor­ Wa.shington, D. C., Janua1-y 16, 1897. ganization committee for the actual net sum of.$28,691,336, although the :mini­ SIR: I have .iust received. your letter of the 15th instant, with inclosures. mum bid, wasllxed at_$.45, 7~000. The difference· is made up in. the form of The letter-of· Mr. Louis Fitz~erald, chairman of~ the reorganization commit­ deductions in the way of sinking funds, etc. Tlie people who are-active-in tee of the Union: Pa<)ifiC Railroad Company, to• you, malring. a· formal pro­ the new. company have already secm·ed the sum needed, and with the $4,500,000 p osal of terms for the Government. proceeding·to.fo.'l'eclbse its liens, of: course deposited· with· the UnitedSta.tes.Trust Company·(IO per cent of the amount r eceived:my fil'st: attention. I will look at the proposed' bill later . !guaranteed-the Government), are said:to, be ready to take th&road as soon The Secretar y of the 'fieasur-y and m yself, have carefully gone: over Mr. as t he for eclosure sale is order ed. The allotm en t of first-mor.tg.ttge4per cent» 1897. (JONGRESSIONAL RECORD--S-ENATE. 2~27 bonds which, under the original plan, was~ be $100,ooopoo, is to. be redueed whom the bill is pending will feel itself warranted in giving any under the new plan to $15,000.000, and there lB to be an mcrease m the allot­ ment of preferred stocks to the Union Pacific sinking fund 8s and the Kansas importance or any value to that agreement. Pacific consoL<;. · The three members of the committee point out in the report Tlle Oregon S.l!ort Line, in which the Union Paeific has an equity, has re­ which the Senator from Kansas has just read that the agreement organized on its own account since the original plan for reorganization was broached and the Kansas City and Omaha and the St. Joseph and Grand of the President of the United States for the disposal of the prop­ Island bemg1 sepaTately organized pass out of. the Union Pacilicsystem. The erty of the Union Pacific Railroad Company and of the sinking Denver, Lincoln and Gulf, and some of the smaller roads in Kansas and Ne­ fund is ultra vires. This position is the bas-is, of the resolution. braska, which are unprofitable properties, are not to be included in there­ We might go further than that if we chose to do so, and say that organization plan, and are to shift for themselves. Among the men mentioned·as the members of the new corporation and its it is a plain, palpable breach and violation of the statute. There probable officers are Oliver W. Mink, of Boston; John W. Doane, of Chicago; is no authority for that agreement found in the laws-of the United Frederic R. Coudert, of New York> John F. Dillon, of ~ew York; Alex. Mil­ States. Nevertheless· we understancl the weight of Rxecutive lar~ of Boston; Edwin F. Atkins, of Boston; Russell ~age, of New York; George J. Gould) of New York; George Q. Cu.nnon, of Salt Lake City; Henry power and· Executive influence in courts and in Congress· and B. Hyde, of New York; Collis P. Huntington, and William R. Hearst, of New amongst the people. It is not a light matter. Many people yield York. to it without inquiry or objection. . It is necessary that the Senate of the United States should UNION PACIFIC OPPOSITION-MANY ENGLISH SHAREHOLDERS THINK THAT express its views- upon this subject at the eal'liest possible date in THE REORGANIZATION PLAN IS TOO nRASTIO. order that the court may understand whether we expect to abide The stockholders• movement abroad, in opposition to the reor~anization by and perform that agreement, or whether we expect to retain 6f' the Union Pacific Railway, has- received the support' of some mfiuential foreign banking firms-and promises to bear fruit. and reserve for the United States all the rights of the Govern­ Mr. H. W. Rosenbaum, who went to Europe last April in the interest of ment and the people against an agreement which sellS' a property some of the dissatisfied shareholders, returned yesterday. He said that he that to-da;v is perfectly solvent and perfectly able to pay every was more successful than he even hoped for when he started. "I fully realize," he said, "the great difficulty of op~osing the powerful debt that it owes for the paltry sum of 826.000,000. ~ndicate which is engaged now in a so-called reorganiZation of the Union I now give notice; inasmuch as this matter goes to the Calendar, Pacific Company. Some prominent houses however, have enlisted them­ that on next 1\fonday at the conclusion of the morning business­ selves on our side, althou~h for the present they wish to have their names withheld until the opposition is-more crystallized. and I desire the Senator from Iowa to notice this-that on next ''The company can be easily reor~nized without the necessity of creating l\fonday morning, at the close of the morning business, I shall $75,000,000 of pref!Jrred stock. I thmk $50,000,000 can be easily saved to the move the Senate to proceed to the consideration of the 1·esolution. shareholders. Of course all' Union Pacific reorganization plans are depend­ ent on being able to effect a settlement or-the Government debt on ab9ut the I think very likely it will not lead to much debate. I wan-t the basis which the pre ant reorganization committee contemplates, but if such Senate, in the meantime, to have an opportunity to look over the a. settlement can be obtained the creation of this mass of preferred stock i<> report of the Senator from Kansas. It is compact, complete, brief, absolutely unnecessary and wasteful. There are still. hopes, however, that Congress might be induced to grant an extension on the debt on a fair basis. :;~>nd to the point, and in my judgment there is no possible way of With a sinkin~ fund, the whole Government debt could be discharged within proceeding except by adopting a resolution of the· Senate that we a reasonable trme, and. there is no necessity for the Government to lose one disagree to the action of the Executive and repudiate it, and that, dollar. "The Union Pacific, not counting the- pay:tnents into the collateral trust so far as we are concerned! we do not expect to be bound by it. sinking funds, and some extra.ordinal'y items, such as losses on investments Perhaps if both Houses were in the 1·egular eom·se of action·, which will not occur again, earned last year a surplus of $386,000 over and with committees provided, etc., we would- have made this a con­ above payments to the Government of $1,2!4,000, and after having charged the current or a. joint resolution; but in the-present attitude of affairs, full intel'est on all its direct indebtedness, except the various collateral loans, which are, however, nearly self-sup~orting. There is not the slightest doubt running as we are on one wheel, and as we have to transact the that the interest on about $37.500,000 first-mortgage. bonds can be reduced from· business of the Government, as far as· we can, for the preservation 6 per cent to 4 per cent without the necessity of giving the first-mortgage of the rights of the United States and of. the people through the bonds millions in preferred stock as a bonus. "This alone would save to the company about ~50,000 If year, and would solitary action of the Senate of the United States~ the cbmmittee have enabled the company to apply last year $2,000,000 toward the payment haye thought it best to present a · Senate resolution. That is per­ o~the Government debt. Of course all financial men realize that if the Gov­ haps as far as we can go; but I take it, sir, that neither-the courts ernment wants to sell out· its claim and receive cash therefor, it would be quite impossible to raise the full sum of about $53,000,000, which is now owing nor any other of the departments or functionaries- of the Govern­ to the Government, and the Government-would have to accept a heavy sac­ ment will undertake to venture, in the. presence of the report that rifice. Any benefit arising from this sacrilice should, however, in all justice has now been made cf facts that are absolutely indisputable, to and fairness go to the stockholders, and anything that is left, after having made a settlement with the bondholders, by right and equity must rever1i to sacrifice the great property of the Union Pacific Railroad. for the·p1.•esent shareholders." 26,000,000 under-a. void contract. " How can you overcome the fact that 95 per cent of the shareholders have I feel inclined. to go furthel' with my statement, but I shall not a-ooepted the reorganization plan?" I asked. "Weare quite aware cf this·fact," he-said, "but we shall demonstrate _at do so at present. Whenever the resolution is· taken up·, I shall the proper time how-some of the very largest shareholders have been m­ seek an opportunity to- show not only that this, agreement is· c-on­ duced by special privileges and participation in the syndicate to deposit trary to the statute, that it violates it abruptly-and- decisively, their shares, and that they make up in a measure thereby what they lose on the other hand. The small shareholders, however, have been coerced into but to show, Mr; President, that when the receivers: of the road the.acceptance.of this plan by·threatened penalties, and are not at all placed and the Government directors-of the road are engaged in this on the same footing as the large shareholders." contract for the purpose of throwing the Union. Pacific Railroad TRUSTEES FOR THE SHAREHOLDERS. away, the situation is, as is characterized in that report, as bad as if "The committee does not seem to realize that by asking for deposit of not worse than the Credit Mobilier and the Contract-Oomparny s shares as well as bonds, and by allowing themselves compensation for their engagement with the Central Pacific Railroad Company. The services, they become trustees for the shareholders a.s well as for the bond­ facts as disclosed in the reports· of the Attorney-General sent to holders, and as such were bound to guard the interests of all the sharehold· ers without any preference, and to obtain the best possible terms for them. the Senate will not admit of delay or neglect in counteracting this If even at one time a diverse financial and business condition led the com­ dangerous exploit. mittee to honestly believe that the heavy sacrifices of the Jlresent plan were Mr. ALLISON. I am not familiar-with this matter or-the· ne­ necessary, circumstances have· now so changed as to make such sacrifices cessity for immediate consideration. My colleague [Mr. GEAR], lllWT~~~figation remains upon both the directors and the committee until who is chairman of the Committee on Pacific Railr.oa:ds, iw not a. good and valid title shall have been irrevocably passed into other hands. present this morning, and I hope the Senator from .Alabama will Pfobably with this object in >iew the committee has especially reserved the right to alter and even to entirely abandon the plan, either before or after allow the matter to rest for the present without fixing a time. peingdeclared operative. Any other interpretadonof the power·thus re­ Certainly it is of the utmost importance that the bill now under served would oo doing. injustice to the gentlemen.of the committee, and the consideration should be got into conference before any other shareholders have every right to expect them to voluntarily propose mate­ ria.! modifications. This is all we want. measure is taken up. I shall feel compelled to resist; at least so "In trying to obtain this the shareholders could undoubtedly reckon upon far as I can, the taking up of any new business outside of the the support of the public, the press, and. probably also. of Congress and the tariff question until that is disposed of. courts." BILLS INTRODUCED. Mr. HARRIS of Kansas. I ask that the statement be printed. Mr. . CAFFERY (by request) introduced a bill (S. 2287) for the The VICE-PRESIDENT. It will be so ordered. The resolu­ relief of Arther Taylor, of Lafayette Parish, La.; which was rPad tion will take- its place on the Calendar. twice by its title, and referred to the Committ€e on Claims. Mr. MORGAN. Mr. President, the resolution read is the unani­ Mr. WELLINGTON introduced a bill (S. 2288) for the purchase mousreportof the committee. Three Senators have chosen, I being of the Geracchi bust of Benjamin Franklin; which was read of the number, to state the specific grounds upon which we rest our twice by its title, and referred to the Committee on the Library. position in support of the report. I do not know that there is any Mr. SPOONER introduced a. bill (S. 2289) for the relief of Rev. contradiction or contrariety of opinion in the committee on the Corydon Millard; which was read twice by its title, and referred propositions- that are here- stated. I do not well see how there to the Committee on Pensions~ could be. The resolution as amended is agreed to by the entire committee. AMENDMENT TO DEFICIENCY APPROPRIATION BILL. I wish to say to the Senate sepa1:ately, as a part of my report Mr. ALLEN submitted an amendment intended to DG'proposed connected with this matter, that. the agreement which has been by him to the general deficiency appropriation bill; whieh was made·by the Executive of the former Administration is in process referred to the Committee on Appropriations, and ordered to be of.execution and will very soon· be consummated if the court before printed. 2028 CONGRESSIONAL RECORD-SENATE. - JUNE 26,

HARRIS P. HURST~ other side that as soon as the sched.ule relating to tobacco had 1\Ir. WALTHALL submitted the following resolution; which been disposed of we should take up the matters passed over relat­ ing to leather. I should be glad this morning to have that ques­ was referred to the Committee on Claims: tion taken up, but I learn that the Senator from New Jersey Resolved That the Committee on Claims be instructed to investigate and report upon the claim of E;arris P. Hu.rst against. the Government of t~?-e desires to be present when that schedule is considered, and that United States for compensatiOn for making, or causmg to be made, certam he is unwell to-day; so I suppose we shall be obliged to put it ordnance inventions authorized in the act entitled "An act making appro­ over. I ask what is the view of Senators on the other side? priations for the naval service for the fiscal year ending June 30, 1893," ap­ proved July 1(), 1892, a contract having been entered into under said act Mr. JONES of Arkansas. We have no objection to its going b etween the said Hurst and the Secretary of the Navy, and report whether over. I have just received a telephonic message from the Senator the Government of the United States has made or caused to be made any from N ew Jersey that he is too ill to be present to-day, but that wire-wound or other guns, high-explosive shells, or other ordnance devices covered by any of the applirotions~orpat~nt filed J:>ythesaid ~rris P. Hurst he will be here on Monday morning. It may be just as conven­ in the United States Patent Office, for which the srud Hurst clauns compensa­ ient to other Senators to take it up on Monday as to take it up tion and whAt.her said inventions were embraced in his application for to-day. pate'nts, or were devised by officers of the United States in public or private employ, and also whether said Hurst is entitled to any compensation there­ Mr. ALLISON. H may be necessary for us to pass over some for, and if so, how much. other matters which I wanted to take up to-day; otherwise an eal'ly adjournment may possibly be necessitated. COST OF PRODUCTION IN LEADING INDUSTRIES . . Mr. CHANDLER. I desire to have printed an amendment, The VICE-PRESIDENT. The Chair lays before the Senate which I submit by request to the pending bill, providing a sched­ the resolution of the Senator from Louisiana [Mr. CAFFERY], ule of duties on spices, which I ask may be printed and laid upon coming over from a previous day. the ta.ble. The resolution submitted on the 24th instant by Mr. CAFFERY The VICE-PRESIDENT. That order will be made, in the ab­ was read, as follows: sence of objection. Resolved. That the Commissioner of Labor be, and is hereby, directed to Mr. CHANDLER. I also ask that an unsigned memorandum collect from official sources, or otherwise, if necessary, information relating which has been handed to me, stating the t·easons why duties to the total cost and labor cost of production in fifteen of the leading indus­ tries common to this country, Great Britain, France, Belgium, and Germany, upon spices should be imposed, may be printed as a document for and report the results of his inquiries to the Senate as soon after the meet­ the use of the Senate. ing of the second session of the Fifty-fifth Congress as possible: Provided, The VICE-PRESIDENT. Is there any objection to the request? That the inquiries hereby authorized shall be carried on under the r egular appropriations made for the Department of Labor. · The Chair hears none, and that order will be made. Mr. ALLISON. I ask now that we proceed to the consideration 1\Ir. CHANDLER. I submitted to the Senator from Louisiana of the paragmphs which have been passed over. yesterday one or two amendments to the resolution, and if they The VICE-PRESIDENT. Without objection, that will be the can be agreed to, I shall have no objection to a resolution. I do order; and the first paragraph passed over will be stated. object to it in its present form. . The SECRETARY. The fu·st amendment passed over was on Mr. CAFFERY. Will the Senator state the nature of hlS page 1, line 3, of the bill, to change the operative date on which amendments? I have not seen the amendments. Perhaps I the proposed law shall take effect by striking out the word ''May" might consent to them. and inserting "July;" so as to read: :Mr. CHANDLER. If the Senator will allow the t·esolution to go over for a few moments, I will submit the amendments to That on and after the 1st day of July, 1897, etc. him. I hope the resolution may be passed over for the present. 1\Ir. ALLISON. From necessity, that will have to be left blank Mr. CAFFERY. I should like to have the resolution consid­ for the present. · ered this morning, if possible. '!'he VICE-PRESIDENT. Thenextitem which was passed over Mr. CHANDLER. I shall prepare my amendments during the will be stated. day, and will suggest them to the Senator. The SECRETARY. The next item passed over was, under the Mr. CAFFERY. Very well. heading" Schedule A.-Chemicals, oils, and paints,"in paragraph The VICE-PRESIDENT. There being no objection, the re o­ 1, on page 2, line 3, after the word '' pound," to strike out '' sali­ lution will lie over until an agreement is reached between the cylic acid. 10 cents per pound." Senator from Louisiana and the Senator from New Hampshire. 1\Ir. ALLISON. I ask the Presiding Officer what was done with Mr. CAFFERY subsequently said: The Senator from New the amendment, in lines 6 and 7 of the fu·st clause of the bill, after Hampshire [Mr. CHANDLER] has decided not to offer the amend­ the word "countries," to strike out "or withdrawn for consump· ments which he intended to propose to the resolution that I of­ tion? " Were those words stricken out? fered, and which, as I understood the Chair, was laid temporarily The VICE-PRESIDENT. The Chair understands from the Sec­ aside in order that the Senator from New Hampshire might have retary that the amendment striking out those words has been an opportunity to perfect his amendments. I now a.sk that the agreed to. resolution be taken up and considered. Mr. ALLISON. All t-ight. Then the next item passed over is The VICE-PRESIDENT. Is there objection to the immediate on page 2, line 3, which has been read by the Secreta1·y. consideration of the resolution offered by the Senator from Loui­ The VICE-PRESIDENT. The amendment will be again stated. siana on the 24th instant, which came up under the order of morn­ The SECRETARY. In paragraph 1, page 2, line 3, after the word ing business this morning? "pound,' the amendment proposed by the Committee on Finance Mr. ALLISON. If it leads to no debate, I shall not object. was passed over, striking out the words "salicylic acid, 10 cents Mr. CAFFERY. It will lead to no debate. per pound." The VICE-PRESIDENT. Is there objection to the considera­ Mr. ALLISON. On behalf of the majority of the Committee on tion at this time of the resolution submitted by the Senator from Finance, I ask that that amendment may be disagreed to. Louisiana [Mr. CAFFERY], which has been read? The Chair hears The VICE-PRESIDENT. Is there objection? Without objec· no objection, and the question is on agreeing to the t·esolution. tion, the amendment strildng out the words which have been read The resolution was agreed to. is disagreed to. TRANSMISSISSIPPI AND INTERNATIONAL EXPOSITION. Mr. JONES of Arkansas. What were the words the committee Mr. ALLEN. I offer a resolution, which I a.sk to have read and originally reported to strike out in paragraph 1? Mr. ALLISON. . There was one item in that paragraph passed lie over until Monday morning. over, "salicylic acid, 10 cents per pound." The committee origi­ The resolution was read, as follows: nally recommended that that item should be stricken out here Res!!lv~, That t~e President be1 and he i~ here~y, respectf"!J-llY r~nes~d, if in his Judgment 1t would not be mcompat1ble With the public policy, tom­ and "salicylic" inserted in the free list. vite by proclamation, or in such other manner as he may deem most proper, Mr. JONES of Arkansas. That is agreed to. foreign nations to make exhibits at the Transmississippi and International Mr. ALLI80N. The committee amendment has been disagreed Expo ition, to be held at the city of Omaha, in the State of Nebraska, between June 1 and November 1, A. D. 1898. to; but it has not yet been stricken from the free list. Mr. VEST. That is, you put it back on the dutiable list? The PRESIDING OFFICER (Mr. BuRRows in the chair). The Mr. ALLISON. It is put back on the dutiable list. resolution will lie over at the request of the Senator from Ne­ The VICE-PRESIDENT.· The next paragraph passed over will braska. be stated. . THE TARIFF BILL. Mr. ALLISON. Before proceeding to that, I ask that in para­ Mr. ALLISON. I now move that the Senate proceed to the gmph 452, which is in the free list, the word " salicylic," in line consideration of House bill 379. 20, may be stricken out; so that the entire matter may be disposed The motion was agreed to; and the Senate, as in Committee of of now. the Whole, resumed the consideration of the bill (H. R. 379) to The SECRETARY. In paragraph 452, line 20, after the word provide revenue for the Government and to encourage the indus­ "salicic," it is proposed to strike out " salicylic." tries of the United States. Mr. VEST. I should like to know the cause of this change of Mr. ALLISON. On Thursday there was an understanding with mind on the part of our friends on the other side. They have the Senator from New Jersey [Mr. SMITH] and Senators on the heretofore put this article on the free list, and it must have been 1897. CONGRESSIONAL RECORD-SENATE. 2029

done after examination. I think this article came from the House article. I replied to them, as I reply now to all such applications, on the dutiable list, and the Commlttee on Finance struck it out I am utterly opposed to it. The exports and imports show that and put it on the free list. We are entitled to know the mental we control the market. process by which our friends have concluded to put it back upon Salicylic acid may be used. though I never heard of that befo1·e, the dutiable list. I have a numberof communications in favorof for the deterioration of beer, the poisoning of beer; but it is largely salicylic acid going upon the free list; but I have contented my­ used for a great many other purposes. lt is an important chem­ self with the' result of the examination on the part of the majority ical product. It is most astonishing that the tariff framers in of the committee, and was very glad to know that they had put it 1890 and 1894, upon both sides of the Chamber, put this article upon the free list. Now, however, it is put back on the dutiable upon the free list, and that om· friends, so acute and learned in list. tariff examinations, deliberately changed the Dingley bill, as it Mr. ALLISON. This acid is largely manufactured in this was called, the House bill-took this article from t he dutiable list country, and it is an important ac_id. The duty of 10 cents a pound and put it upon the free list, and the Senate indorsed it; and now is about 25 per cent ad valorem, the rate provided as to a great it is to be taken off the free list and put upon the dutiable list many other acids of a kindred character, and on fm·ther examina­ upon the statements that are made here. tion the committee thought it was a proper subject of duty. M:r. GRAY. Because the patent bas expired. Mr. VEST. The Senator from Iowa knows that the American Mr. VE:::;T. Well, Mr. President, we will take the yeas and manufacturers control the market for this article, and why should nays on it, anyhow. we now put a duty upon it? What manufacturer has been here ~fr. SEWELL. I should like to have the communication read and represented that it is to his interest that this thing should be to which I have referred. done? The Senator knows that we manufacture almost all of this The VICE PRESIDENT. The communication referred to by article that is used here. It was free under the McKinley Act, it the Senator from New Jersey will be read, in the absence of objec· was free under the Wilson Act, and it was made free by the first tion. report of the majority of the Finance Committee. 1 think the The Secretary read as follows: weight of authority is altogether in favor of this article remain­ POTTSTOWN, PA., June 9, 1897. DEAR S}:R: I am a manufacturer of salicylic acid, and have just been in­ ing on the free list. formed by Congressman IRVING P. WANGER that it was throuooh your efforts Mr. ALLISON. It is very largely manufactured in St. Louis t hat the consideration of the amendment to strike out the auty was post­ and in vat·ious other parts of our country. It is manufactured poned. For this, please accept my thanks. When I commenced business two years ago, salicy;lic acid was selling for chiefly from coal tar, and also from wintergreen. SL25 per pound. At present 33 to 35 cents per pound is the price. Then the Mr. VEST. Of course. · German makers were in a combination and without opposition h ere and Mr. ALLI80N. It is a very important manufacture, and now maintained the price. • When opposition developed, the price fell from $1.25 sells at about 40 cents a pound. ~~~s ~n~ J>ee:t~ound at once, and the decline has sinctl been gradual to the Mr. VEST. I have not beard a single argument why it should I give you the cost of making a pound of salicylic acid here: not go on the free list. The Senator does not pretend to say that we do not control the market. We largely manufacture it. 8!~~~~cso-ci:i·:~ ::.·: :::::::::::::::::::::::::: :::_· ::::::::: :::::::-::::=:::: $0: lJbo Mr. ALLISON. We do not control the entire market; it is im­ ~~r:h:.Ica~~?d: ==::::::::::::: :: :::::=:::: :::::::::::: ====:::::: ==:::: :::: :~ ported as well. Wages.---· ..... ___ ------·----- ____ ------.--·-··-·------·------·-- .053 Mr. VEST. Not to anything like the amount of consumption. Coal ...... _____ ------_--·-· ---· -·-· ·-·------· .... _____ --··· ____ . 0105 Mr. SEWELL. I will state for the information of the Senator f1·om Missouri that tills is an article of large consumption and §~tr~e;~-~~-~-1~~~~ ::::: ======~====~== ::::~ ======~~:::::: :::::::: :~1 manufacture in this country, and that it has heretofore been pro­ Total -----· ~ ...•• ------·· --· ... __ ·--- --· ...... ---· ----'- ----·--·----- . 3466 tected by patents which have expired, and that is the reason that I simply can not live and pay the wages I do and compete with the labor or some protection is now wanted against the imported article. It Germany. My wages average SL50 per man. In Germany 1 mark per day is paid. I asked for Jai per cent ad valorem before the Committee on Ways and is largely manufactured in my State and in Pennsylvania. I ask Means. They gave 10 cents, which is better. If you can have this retained, to have read a letter from a Pennsylvania manufacturer showing you will help out a struggling manufacturer. the actual cost of wages paid in the manufacture of the ai·ticle. Yours, respectfully, Mr. VEST. I understand, as well as I can hear the Senator W. S. McFARLAND. from New Jersey, his statement to be that this article hitherto Senator SEWELL, United States Senate. was protected by a patent, but the patent has expired, and now Mr. SEWELL. I do not care to take up the time of the Senate they want to put a protective duty on it. any longer on the subject, Mr. President. 1\fr. SEWELL. Is not that a very good reason? I will ask the The VICE-PRESIDENT. The Chair will inquire of the Sena­ Senator from Missouri why a duty should not be imposed to pro­ tor from Iowa whether his motion was simply to strike out the· tect the American manufacturer against the German and Eng­ c0mmittee amendment as to the word" salicylic" alone, in para­ lish chemists and manufacturers? graph 452? Mr. VEST. I have no doubt that from the protective stand­ 1\.i. r. ALLISON. I wish to restore, in paragraph 1, line 3, the point that is an ample and sufficient argument, but not from mine. words "salicylic acid, 10 cents per pound." Mr. SEWELL. I wm ask the Senator if it is not a good pro­ The VICE-PRESIDENT. That has been agreed to. The Chair tective argument that this article is used in the manufacture of is referring to paragraph 452. beer, against the deterioration of which the people of this country 1\Ir. ALLISON. There I desire to strike out merely the word ought to be protected? ''salicy lie." Mr. STEWART. Does the Senator say it is used in the manu­ 'fhe VICE-PRESIDENT. The Senator from Iowa moves to facture of beer? strike out the amendment heretofore proposed by the committee, Mr. SEWELL. Yes, sir. in paragraph 452, inserting the word "salicylic," in line 20, on Mr. STEWART. Then it had better be put upon the free list page 161, on the free list. The Senator from Missouri [Mr. VEST] at once. The article ought not to be used at all. calls for the yeas and nays upon that amendment. Mr. SEWELL. It is used for the deterioration of beer, and the Mr. VEST. Let us understand this, Mr. President. What was beer people are asking to have it put upon the free list. said t o have b~en agreed to in the first paragraph? Mr. STEW.ART. The Senator is suggesting a very important The VICE-PRESIDENT. The paragraph under discussion is subject. The use of foreign rice and acids in the making of beer paragraph 432, on page 161. is most injurious to the people. It is, according to the physicians :r~Ir . JONES of Arkansas. But that was in connection with par­ with whom I have talked, poisonous, and it is creating almost uni­ agraph 1. The proposition was to disagree to the amendment of versally diseases of the kidneys amongst beer drinkers. They the committee striking out the words "salicylic acid. 10 Gents per would not be allowed to manufacture this kind of beer in Europe. pound," in paragraph 1, and in the same connection the pa.ragraph Mr. VEST. No; but if it is a poison, as I understand now from in the fTee list was taken up. The two ought to be acted upon the Senator from New Jersey [1\Ir. SEWELL], then we ought not to together. The vote may as well be taken on disagreeing to the protect it. I should like to know if we protect it and enable the amendment in paragraph 1 and on disagreeing to the committee domestic manufacturers to make more and sell more, if it will amendment inserting ' salicylic" in the free list. not still be used to poison beer and destroy the stomachs and lives The VICE-PRESIDENT. The first amendment of the commit­ of our Teutonic citizens? It seems to me, instead of protecting it, tee, striking out the words ''salicylic acid, 10 cents per pound,' in we ought to take away all protection from it. paragraph 1, was rejected, and the Senator from Iowa [Mr. ALLI­ Mr. PLATT of Connecticut. Is that any reason why the arti­ soN) riow asks that the amendment proposed by the committee, cle should be placed upon the free list? in line 20, paragraph 452, page 161, putting salicylic acid on the Mr. VEST. We ought to prohibit it entirely from coming into free list, may be disagreed to. the country or being manufactured here. Why should we give Mr. ALLISON. That is the situation now. If Senators, bow· to our owu people greater facilities for poisoning the beer of the ever, desire to test the sense of the Senate by taking the yeas and country? nays upon both questions, I have no objection. I have received communications from the proprietors of a great J\Ir. VEST. Let the vote be taken on both propositions together. che-mical establishment in St. Louis, asking for a duty upon this Mr. ALLISON. Very well; let it betaken on both propositions. ·

• 2030 CONGRESSIONAL RECORD- SENATE. ·. disagreeing to the amendment of the committee in line 4, on page NAYS-BO. 2, paragraph 1, and also disagreeing to the amendment of the Allison, Foraker, McEnery, Spooner, committee in pa.ra.graph 452, relating to salicylic acid. Baker, Frye, Nelson, Stewart, Barrows, Gear, Perkin , Teller Mr. BERRY. As I under-stand, the question then is on agreeing Carter, Hawley, Platt, Conn. · Thurston, to the amendments reported by the committee, to strike out Chandler, Hoar, P Latt, N.Y. Wetmore, "salicylic acid" from the House bill. Deboe, Jones, Nev. Pritchard, Wilson. Elkins, Lodge, Sewell, 1\fr. MILLS, Thereby placing it on the dutiable list. Fairbanks, McBride, Shoup, · Mr. BERRY. It is already on the dutiable list in the House NOT VOTING-39. bill, and the committee reported in favor of striking it out, Aldrich, Gallinger, Lindqay, Pettigrew, thereby putting it on the free list. Those who want it on the Bate, George, Mcl\1illan, • Proctor, free list will then vote "yea," in favor of the committee amend­ Butler, Gorman, Mallory, Quay, Cannon, Hale, MAntle, nawlin.s, ment. Clark, Hanna, Martin, Smith, The VICE-PRESIDENT. On this· question the yeas and nays Cockrell, Hansbrough, • Mason, Turner, have been demanded. Cullom, Harris, Kans. Mills, Warren, Daniel, Harris, Tenn. 1\Iorgan, Wellington, The yeas and nays were ordered. Davis, Kenney, Morrill, Wolcott. Mr. PETTUS. We do not understand the question. As I Faulkner, Kyle, Penrose, understand it, the Senator from Iowa [Mr. ALLISON] moves to So the amendments of the committee in paragraphs 1 and 452 strike out "salicylic acid, 10 cents per pound," in paragmph 1, so were rejected. - as to restore the duty, and then moves to strike "salicylic acid" The VICE-PRESIDENT. The effect of the vote is to leave sali­ from the free list. That is what jt amounts to. cylic acid dutiable at 10 cents a pound, as prese1·ibed in the first Mr. JONES of Arkansas. If I may be permitted a word of ex­ paTagraph. planation, as the Senator from Alabama [Mr. PETTUS] raises the Mr. ALLISON. Is it understood that the effect of the vote just que tion, the committee amendment was to strike out the words taken carries with it the stTiking out of the word" salicylic" in "salicylic acid, 10 cents per pound.," in paragraph 1. The com­ the free list? I tmderstood that to be the effect of it. mittee propose to withdraw the amendment striking , out those The VICE-PRESIDENT. That is correct. At the suggestion word , and also to withdraw the amendment inserting "salicylic of the Senator from Arkansas [Mr. JoNES] and the Stmator from acid" on the free list. Missouri rMr. VEST]' the two votes were taken together; and both The Secretary proceeded to call the roll. the amendments of the committee have been disagreed to. Mr. GEAR (when his name was called). I am paired with the Mr. CAFFERY. On the 17th of this month I offered a resolu­ Senator from New Jersey fJ\Ir. SMITH], but I transfer that pair to tion calling on the Secrek'l.ry of the Treasury to furnish the Senate the Senator from Illinois [Mr. MAsoN], and vote "nay." the evidence and information on which drawback allowances on Mr. GRAY (when his name was called). I am paired with the sugar contained in Circular No. 102, of June 25, 18D6, ruvision of senior Senator from Illinois [Mr. CULLOM]. If he were present, I customs, were based. I had been informed that the work required should vote "yea." some considerable time. I did not think when I offered tha reso­ Mr. LINDSAY (when his name was called). I have a. general lution that it would require more than two or three days to take pair with the senior Senator from Michigan [Mr. McMILLAN]. If copies of all the evidence and the written information or to gather he were present, I should vote "yea." whatevru: verbal information they could but I have been disap­ Mr. MALLORY (when his name was called). I am paired with pointed in that matter, and I propose now to make a statement of the junior Senator from Vermont [Mr. PROCTOR]. If he were the information which I have gathered. present, I should vote "yea." The VICE-PRESIDENT. Will the Senator from Louisiana llfr. MORGAN (when his name was called). I am paired with permit the Chair to interrupt him? A commtmication was laid the senior Senator from Pennsylvania [Mr. QUAY]. If he were before the Senate this morning from the Secretary of the Treasury present, I should vote "yea." covering the subject referred to by the Senator from Louisiana, Mr. MORRILL (when his name was called). I am paired with and was referred to the Committee on Finance, and ordered to be the senior Senator from Tennessee [Mr. HARRIS], and therefore printed. wi.thhold my vote. I make this announcement for the day. Mr. CAFFERY. Then I will state the information which I Mr. WELLINGTON (when his name was called). I have a gathered from the parties as well as information gathered by Mr. general pair with the Senator from North Carolina [Mr. BuTLER]. Holt, who first informed me that in his opinion the Treasury state­ In his absence, I withhold my vote. ment was erroneous. The roll call was concluded. Mr. ALLISON. I suggest if it would not be well for the Sena­ Mr. CLARK (after having voted in the negative). I am paired tor from Louisiana to see the statement in print before he makes with the Senator from Kansas [Mr. HARRIS], and voted without his remarks. Does the Senator desire to go on this morning? noting his absence from the Chamber. I transfer that pair to the Mr. GdFFERY. I simply desire to state what I gathered my­ Senator from Nevada fMr. JONES], and will allow my vote to stand. self. I have not seen the statement. So long as I have started on The VICE-PRESIDENT. The Senator from Nevada has voted. the work and as it will not take me long, I propose to finish it. Mr. CLARK. Then I withdraw my vote. The TreasliTy statement is based upon information derived Mr. PENROSE (after having voted in the negative). I am in­ mostly from refiners. Among those refiners are members of the formed that the junior Senator fi·om Delaware [Mr. KENNEY], sugar trust. It is safe to say that nearly all the refiners, with with whom I am paired, is absent, and I therefore withdraw my perhaps rare exceptions, are either of the trust or under the trust. vote. Therefore I take it that any sta.tement emanating from the refiners J\1r. ALLISON (after having voted in the negative). I voted is practically a trust statement. . inadvertently, being paired with the Senator from Missouri [Mr. It was stated to me by Mr. Buynitzky in the customs division CocKRELL]. I suggest to the Senator from Delaware [Mr. GRAY] of the Treasury Department-- that we transfer our pairs, so that the Senator from :l'tiissouri Mr. LINDSAY. I will ask the Senator from Louisiana if I [Mr. COCKRELL] will stand paired with the Senator from lllinois understand him correctly that the Treasury statements were [Mr. CULLOM], which will allow the Senator from Delaware and .based upon information received from refiners? myself to vote, and I will allow my vote to stand. J\Ir. CAFFERY. Yes, sir. Mr. GRAY. Under that arrangement I vote "yea." Mr. LINDSAY. I ventured to express that opinion while the Mr. MILLS. I am paired with the Senator fi·om New Hamp­ sugar schedule was under consideration, and the Senator from shire [Mr. GALLINGER]. If he were present, I should vote "yea." Iowa [Mr. ALLisoN] characterized my statement as absurd. I Mr. TURNER. I am paired with the Senator from Wyoming suppose the Senator must be mistaken about it. [Mr. W ARRENl . If he were present, I should vote "yea." Mr. CAFFERY. I think the Senator from Iowa is mistaken. Mr. COCKRELL. I vote" yea." Mr. ALLISON. My attention was diverted for a moment. I Mr. BERRY. The Senator's pair has been transferred. did not hear what the Senator from Louisiana said. Indeed, I Mr. ALLISON. I have transferred my pair with the Senator did not know that the sngar schedule was up~ from Missouri [Mr. CocKRELL] to the Senator from Illinois ~Ir. Mr. LINDSAY. It is always up. CULLOM) . ' Mr. CAFFERY. Drawbacks are up, and drawbacks have some­ Mr. COCKRELL. Very well. Then I withdraw my vote. I thing to do with raw sugar, and it is near enough for Senatorial should vote "yea" if not paired. discus ion. . The result was announced-yeas 20, nays 30; as follows: Mr. ALLISON. If I knew what the Senator from Louisiana had stated, I might be able to answer the Senato1· from Kentucky. YEAS-20. Mr. LINDSAY. Will the Senator from Louisiana please repeat Allen, Clay, Mitchell, what he stated? l3acon, Gray, Murphy, Mr. CAFFERY. I stated that I learned at the Treasury De­ J3erry, Heitfeld, Pascll, Caffery, Jones, Ark Pettus, partment that the statements in the Treasury drawback circular Qlilton, McLaurin, Roach, as to the number of pounds of raw sugar it took to make a pound 189'7. CONGRESSIONAL .RECORD-SENATE. ~ 2031 .

of re'fined at a certain degree OT any degree were -practically ob- the refiners. Some said 92 pounds; s-ome put it as high as 94 tained from the sugar 11efiners., and among those refiners were pounds, and the party, he said, who .put it at 94 pounds was a Mr. · members of the sugar trust, especially Mr. Havemeyer. Cunningham, of Texas, a refiner in that State, and the only mde- Mr. ALLISON. One can go into the Treasury Department and :pendent refiner I know of. Mr. Cunningham was q noted as stat­ ascertain almost anything, l .suppose. I shon'ld be glad to know ing that out 'Of 100 pounds of sugar testing 96 degrees in saccha­ fr:om what .authority the Senator acquired that information. rine strength he made 94 pounds of sugar, or that was his esti­ "' r. CAFFERY. I obtained the information from Mr. Buy- mate. There were various -estimates given by refiners, and I nitzky. think anybody who knows anything abmrt sugar knows that the 11f.r. ALLISON. Is he an employee·of the Treasury Department? statements coming from the refiners as to the number of pounds M:r. CAFFERY. He is; and I was told that he has been there to make a pound of refined are to he considered, as they know the

.ove1· twenty-nine years.. business1 and ca~ if they will, give correct results. J...Ir. JONES of ArkaBsas. He is an expert there. This gentleman showed me by .a calculation in my presence Mr. CAFFERY. He is a sugar -expert, and he had a great deal that taking 92 pounds of refined sugar as the basis ·of th~ result, to do with the matter of firing the number Df pounds on which or the output of tOO pounds of raw sugar of 96 tes-t, it took 108.'7 the ~trust was entitled to a drawback when it exported ·sugar. pounds of raw -sugar to make HIO pounds of refined sugar at 96 Mr. ALLISON. If the Senator will allow me to interrupt him test. I then asked him what bec~e of the residue. He said it for moment, I will stat.e that the substance of what I said- was iost; it went into sirup. Right at that point is the fatal de­ or what I meant to say-was that this matter was disposed of by feet of the Treasury statem.e.nt. In 100 pounds of sugar testing the then Secretary of the Treasury, Mr. Carlisle, and that I had 96 degrees of sugar there are 96 pounds of sugar. If it takes 108.7 no doubt he procured the information from proper sou:rces. I pounds of that sort of sugar to make '100 pounds of refined at 96 have no doubt now that that is true. If Mr. Buynitzky knows degrees, then the1·e are about 4t pounds of sugar to account for. differently, o£ course that is another matter. There are 4t pounds of sugar not sirup., ·and there is only a pound Mr. WHITE. For information, I should like to ~nquire of the and a fraction uf that sugar allowed for in the Treasury circular. Sen~ tor from Iowa whether he thinks refiners would constitute a Whe.n you take 108 pounds of sugar at 96 degrees as the gross num- proper or iinpro:per source? ber of pounds necessary to make lOO pounds of refined, you will Mr. ALLISON. Will the Senator fmm Louisiana allow me? perceive that the Treasury circular has credited the Gavernment · Mr. CAFFERY. Certainly. with 1.23 po-unds; 'that is, as the difference between 108.7 and :Mr. ALLISON~ I will answer the Senator from California with 107.47. great pleasure. If I were endeavoring to ascertain correctly the That statement is erroneous upon its face. It does not require number of pounds of raw sugar required to make a pound of re- an expert to know it. I do not know much about polariscopes, if fined, I would procure that information from eve1·y available .anything; I never looked through one in my life; it is a mere me­ ·source. I suppose .a refiner would know something about it, but chanical machine; but I know that there are more than 92pounds I would not rely upon the refiner for my information. -of sugar in 100 pounds of centrifugal sugar at ·96 t-est. That is the Mr. LINDSAY. With the uermission of the Senator from sort of sugar I make. It is a good sugar to eat. There are not 4 Louisiana, the point I wish to -make is that when the Senator pounds of loss in it. There ar-e 4 pounds of sirup and sugar mit, from Iowa disputed my figures and exlnoited figures in opposition but it is not dirt. thereto, he said they -came from the Treasury Department, over Mr. President, from this statement it appears that the Treasm-y which my friend the then Secretary of the Treasury presided, and circular is made up purely from the ·evidence of refiners and some I e.x;pres.sed the opinion that those figures were based upon facts other sources not known by me. l do not know how they could furnished by the sugar refiners and my friend said that my opin- get any evidence from .other sources. A pure theoretical calcula~ ion was absurd. tion as to the amount of loss in pounds below and above '96 Now, it turns out that at least one expert in the Treasury De- is made by the Department. Take it from 96 degrees down. You partment states that the facts were furnished by th-e sugar refin- will sea that there is an allowance of 1.89, 1.8B, and 1.87 between ers. I do not pretend to say he is right. I only wish to vindicate degrees. This is a theoretical calculation, and so Mr. Buyn1tzky myself against having expressed an opinion that might be charac- told me. terized as an absurdity. He said the whole investigation was made upon 96 test. There Mr. ALLISON. I was trying to defend t.he Secretary of tbe was no investigation made of any other test-nona whatever. It Treasury from the imputation that he would rely solely and only is evident that they made this sort of a calculation: They divided upon sugar refiners for his information. the loss of 4 pounds among these different degrees, above 96 to :Mr. CAFFERY. Will the Senator permit me? 100, and gave ~ch one 1.87, 1.87, 1.86, and so on; and it runs ·all Mr. ALLISON. In one moment. My inforlik'ttion is that the th-e wa.y down. Everybody knows that the loss in a lower degree experts of the New York custom-house, who certainly ought to of sngar is much greater than in a higher degree, and so it is per­ know something about this matter, and the chemists connected ceived that that is a pure theoretical calculation not based upon with the Government ther~ provided the basis upon which the any evidence whatever. calculation was made. I may be mistaken, but I trust I will re- Mr. !President, take the other statement. Mr. ALDRICI! says lieve the Secretary of the Treasury from the imputation which the that a pound of raw German sugar, .at .a certain test, will cost Senator fro.m Kent.uc.ky and the Senator from Louisiana now cast within 1 mill of the refined sugar. In other words, at the test be upon him-- takes. the number of pounds of raw sugar required to make a Mr. CAFFERY. Wait until I get through my statement. pound of refined costs 2.29 cents .and the refined costs 2.30. Is not Mr. ALLISON. That he did not rely upon his own experts' that 'Statement absurd upon its face? Is a refiner going to buy information, but relied on outsid~ partie. raw sugar within 1 mill a pound of the refined when it costs Mr. LINDSAY. Mr. President-- about fifty one-hundredths of a cent to refine it, and there is only The VICE-PRESIDENT. The S enator from Louisiana is en- a difference of one point-not a eent, 'but one point; the differ­ titled to the flo01·. Does he yield to the SenatOJ." from Kentucky.? ence between 2.29 and 2.30-and he says that is the basis upon Mr. CAFFERY. I think it perhaps better that I should state wmch he makes the calenlation. what I wish to say in this connection, for I had not finished my It i absolutely absurd. He says in his own statement before statement. I had got up to the sugar refiners. Then after I make the Senate that the refiner was confronted with the condition of the full statement I will yield to the Senator from Kentucky. affairs where the raw sugar that it took to make a pound 'Of refined I had stated that this expert had told me that this information sugar was within one point of the value of the refined, and yet he was derived fr om sugar r efiners., but that sugar r efiners had not says that it costs fifty points to refine that sugar. What refiner or been exclusively the source of. the information; that the inquiry anybody else on earth engaged in the sugar busines.s would buy was conducted, so far as he knew, by Mr. Ayre, and that Mr. Ayre raw sugar at any such figure? He would lose forty-nine one­ was in New York, and that he was told that he went in a refinery hundredths ·of a cent on eve1·y polmd he refined. and made an .examination there. This whole circular is based upon those erroneous statements. Mr. ALLISON. It was a great crime for him to go to a refinery There i

2032 CONGRESSIONAL RECORD- SENATE. JUNE 26,·

The affidavit is as follows: base? upon the Treasury Department figures, and that therefore it was nec­ e~sar y t_o ~ake sure that these figures were accurate. I said that fifty or CITY .A.ND COUNTY OF NEW YORK, ss: s1xty mrll~on dollars a ~ear was at stake, and that a small inaccuracy in these Byron W. Holt, being duly sworn says: figures m1ght make a difference of several millions of dollars to the Govern­ I am 39 years of age and reside at 1138 West One hundred and thirty-seventh ment and to the refiners. Mr. Buynitzky thought that the tables were not street\ New York, N.Y. I lmve lately had occasion to inquire as to the basis accur~te.enough to s.erve as a ~aslS for a sugar schedule. He said that the on which drawbacks are allowed on refined sugar exported from this coun­ commissiOn had re;ce1ved very httle information concerning amounts of low­ try, and as a result of my investigation I submit the following statement: gra{le sugars reqmred to make 100 pounds of raw sugar, and that the allow­ On June 16, 1897, between the hours of 9 and 11 o'clock a.m. I visited the ances ma~e for low-grade S!lgars were based upon the allowance for 00-degree United S~a~t>-~ Treasury building at W~hington, D .. C. I called upon the sugar, whi~h was th~ most rmportant sugar, and upon which the commission customs diVISlOll ~nd asked for and obtamed four 90pies of Department Cir­ had most 1nformat10p.. He tho:ught that 106.7 pounds, rather than 107.4J, cular No. 1Q".Z, entitled "Drawback on sugar and Simp." I made inquiry as should serve as a basL'i upon which to construct a sugar schedule This he to the reports of commissions concerning frauds perpetrated upon our Gov­ said, was about eight-tenths of 1 per cent less than the allowance made' by ernment by means of discoloring and in other ways preparing sugars for the Government. export to our country, so that they could pass through our custom-house _Before _leaving I told Mr. Buynitzky that I was not in favor of giving any upon payment of a smaller amount of duty than is proper. differentml to the sugar trust, and that I was making inquiry in regard to the Mr. Comstock,. of the customs di_vision, directed me to the special-agency Treasury tables becaus~ I thought that. based upon these tables. the proposed department. Bemg unable to obtam the reports desired, I again called upon sugar schedu_le vy-onld give ~h~ sugar refiners even more of a differential than ~r. C?mstock, of the customs division, to makt:l inquiry in regard to the way mo3t protectiomsts were willing to allow. Mr. Buvnitzky expressed surprise In wh1ch tha tables of Treasury allowances for drawbacks upon sugar were ~hat+ was not~ fayor of all'?wiug any di~erential to refiners, and asked me made. Mr. Comstock r.old me that they were made very carefully by anum­ if. I did not b elieve~ p-z:ote~t~on. I told him t~t I did not, but that oven if I bE:'r of experts, who spent several months' time in getting statements from re­ did I should no~ beheve m gl"!'mg t~e r~fi?.ers a higher differential than was in­ finers and others, and who secured special permission to visit certain refiner­ t~nd e d. He sa1d t~athe_ believed ~ngivmgt~erefinersasubstantial di.lferen­ ies and observe the process of refining sugar. Mr. Comstock did not hesitate ~lal a~d that he beli~ved m protectwn. He sa1d: "This is a protection Ad~ to say that the tables were extremely accurate. I continued to ask questions lStratwn ~nd the high man, over all of us, Mr. McKinley, is a protectionist." until Mr. Comstock said: "Well, now,~ yon want to know all about sugar, I . I told hrm that I presumed that he and the other members of the commis­ Wlll h_ave to turn you over to Mr. Buymtzky." Before introducing me to Mr. s~on had made the tables a_s nearly accurate as they could from the informa­ Buymtzky,Mr. Comstock said: "He mll tell you all abou r, sugar in six months." twn at hand, but that I did not believe the statements of the refiners He I accompanied Mr. Buynitzky to his desk. He began to explain to me the again said that.he did not fully believe the tables, but that they were the only way the tables of allowances were made. He said that the number of pounds ::;::~nts which the Government had, and that the sugar refiners kept their of rawsue;ar allowed in the firstta.bleof Department Circular No. 102did not represent the exact number of pounds used to make 100 p01mds of hard I thanked him for the information which he had given me and st.arted to refined su~ar, but was intended to give the number of pounds which would leave the ro

We observe :first that, beginning at the top of the second column, either These statements of Mr. Bnvnitzkymake interesting readingforthosewho 1.87 or 1.86 pounds have been added to each allowance to get the allowance for have been swearing by these 1'reasurytables. It is evident from these state- the next lower degree. It would not appear that these figures were made ments- . . "after the m ost accurate calculations of the best chemists and experts obtain­ an~i~~~c~tlfi~~e Treasury tables are inaccurate, unreliable, inconsistent, able on the sugar question." for one does not need to know much about sugar to know that there is generally far more waste material between each 2 de­ Second. That the principal table of allowances, and the one upon which grees of low-grade than between each 2 degrees of high-grade suttars. When both Sena tors ALDRICH and ALLISON base all of their calculations, is not what raw sugars test 97 or 98, they usually contain a little water and mvert sugar it appears upon its face to be. 1 (glucose), but very little ash or dirt. Practically all of the crystallizable Third. That the sugar trust, as stated by Senator LINDSAY, practically sugar c.an be easily obtained. When raw sugars test below 90, they usually made its own drawback-allowance tables for the 96-degree sugar. contain considerable ash and dirt, and it is not easy to ge t out anythlng like Fourth. That the special commit we fixed the allowances for sugars testing the fnll amount of crystallizable or hard sugar known to be there. above or below96 degrees in a crude and unscientific way. In other words, the W e next observe that drawback duties are also allowed on" soft refined" committee, having no data lor other degrees, fixed up a table as best thev sugars and on sirups. As soft r efined sugars and sirups are usually made could. It seemR probable that they did it by dividing the number of pound~s from the waste or by-products of the hard refining process, it would appear over 100 required of !J~degree sugar, as the trust represented, to make 100 from this circular that it is possible for a refiner to get back, when he ex­ pounds of hard r~fined .by 4 the number of degrees between 96 and 100, ports hard refined sugar, 99 per cent of all the duty paid on the raw material and then added this quotient (1.86 ¥- ) to the allowance for each degree to obtain used, and to get ba-ek, when he exports the soft refined sugar and the sirup the allowance for the next lower degree. made from t.hese same raw materials, an additional amount of duty. It Fifth. That the hi$ refineries of the sugar trust-ten to twenty times as large seems probable that the total drawback duty received in this way might as Cunningham's-ao not get as much hard refined out of 96-degree raw sugar greatl¥ exceed the full duty paid on the raw materials used. as does Cunningham's little refinery. Agai?J. we obse~ve _ that, calculated from this Treasury circular, the cost of Sixth. That Ctmningham, being as nearlv out of the trust a':> any refiner a suffiCient quantity of raw sugars to make 100 pounds of refined sugar is the in this country, did not have an understanding with the trust refiners as to same as the cost of the 100 pounds of refined sugar-leaving nothing for the the kind of statements which were to oo 8nbmitted, and that therefore his cost of refining. This was the result reached by Appraiser Sharretts, whose statements were probably more nearly truthful than were the ot hers .. statement appears in the CONGRESSIONAL RECORD of June 11, 1897. H e Seventh. That it was unfair to the Government, if some refiners could found that on June 9,100 pounds of German granulated sugar was worth in make over 94 pounds of hard refined from 96-degree raw sugar, while others New York in bond $2.30; and that 120.54 pounds of raw suttar testing 89 de­ claimed to make less than 92 pounds, to take an average of the statements. grees was then worth $2.29. We were at that time importmg both of these By so doing, it is clear that the refiners who get the greater amounts of re­ sugars. • fined from the raw sugar can and ver this oversight before he used the figures. What kind degrees, the loss would not be so great." of a chemist did he employ anyway? Of what sugar la.boratory is he in Gen .. J. Hale Sypher expressed t he opinion before the Ways and Means oharge? Committee on December 30, 1896, that the total cost of refining sugar by the Considerable info!JDatif:!n has '!Jeen obt.a.ined in r~gard to these Treasury American Sug~r Refinin~ Company does not exceed one-fourth of a cent per tables from recent mterviews With Mr. S. M. Buymtzky. Mr. Buynitzky is J>?Und. He sai.d that this one-fourth cent covers waste and everythlng. It the sugar expert of the Treasury Department, and was one of the four or his statement 1s true, there can not be nearly as much waste as allowed by five on the committee which made the Treasury tables. Mr. Buynitzky says: the Treasury Department. (1) That the Treasury tables do not represent the fnll number of pounds . ~any sugar i:J1?.porters and brok~rs in New York and other sugar-refining of raw sugar required to make 100 pounds of hard refined. He says that mtief? do not heSitate to say that 105 pounds of 96-degree sugar is all tha.t is they allow somethlng for the value of the residuum. r~qmred for 100 pounds of hard refined sugar-in addition to somewhat of (2) 'l'hat eight refiners submitted statements to the committee, and that s1r~ps an.d so~t sugars. Some o,f these men have friends in the refining the tables were constructed by taking an average of these eight statem ents. !Jusm ess .m this or. oth~r countries. Some of _them. claim to ~ave positive (3) That these statements related almost entirely to 96-degree sugar. mformatwn on this p omt. 'fhey, however, will neither state 1t nor permit (4) That the allowance for other degrees are based upon that for 96-degree themselves to be quoted. sugar. In view of the above facts and statements, it appears to be certain that the Treasury tables of dra..wback allow!i-nces on sugar are far from accurate, and (5) That according to the eight statements submitted 92 pounds of hard that they should not serve as a baslS for a sugar tariff schedule. refined sugar could be made f~om 100 pounds of raw sugar testing 96 degrees. (6) That the statements varied from less than 92 to over 94 pounds. Mr. CAFFERY. Mr. President, the material question to be (7) That the statement containing over 94 pounds came from Cunningham of Texas. ' determined in rega.rd to the sugar schedule is, first, the number of . (8) That he never believed the re)!ners' statements, and that he always es­ pounds of sugar at a certain test required to make a pound of re­ timated that 93 to 93f pounds of hard refined could be made from 100 pounds fined, and the differential allowed under the bill. When you have of 96-degree sugar. those two factors, as I have stated before, the price of the raw is .(9 ) Tha~ ~h.e principal member of the committee, Mr. Ira Ayer, was per­ mitted to VISit a refinery and watch the process of refining, but that he prob­ immaterial. Protection stands out right square from the abso­ :N~v~~tc~~ valuable information there for use in making up the talile of lute differentials given in the bill, but the material point of a correct Etarting place, in my opinion, is first to be settled. There (10) 'l'hat the sugar refiners keep their secrets. q1) That though their statements were made under oath he does not have been more pounds of raw sugar allowed to make a pound of believe them. refined than is actually required, and just in proportion to the (~) That it is easy for sugar refiners to make false statements when ex­ extra amount of raw allowed under the bill to make a pound of portmg refined sugar as to the kind or kinds of raw used in making such ref41-ed sugar, and that the Government has no certain way of detecting the refined, just in that proportion is the differential greater between faLSity of these statements. the raw and the refined under tha bill. (13) That the Treasury tables are unfit to serve as a basis for a tariff bill. So it is with the drawback allowance. If the sugar trust XXX-128 2034 CONGRESSIONAL RECORD-SENATE. JUNE 26, exports sugar, and gets a drawback allowance on 140 pounds of The SECRETARY. Paragraph 14, page 4-- raws, as requiTed to make the number of pounds of refined ex­ Mr. JONES of Arkansas. What has become of paragraph 7i? ported, when in point of fact it took only 130 pounds, the Senate Mr. ALLISON. The Senator from Wisconsin desired that that will perceive the benefit given to the trust. It is not unlikely, sh~mld go over. under the operations of the pending bill, that the sugar trust will Mr. SPOONER. I asked to have it passed over. export sugar. I have made the statement, and I reiterate it, that The Committee on Finance reported an amendment to para­ they control the price of raw sugars made out of cane throughout graph 14, page 4, line 22, after the word "colors," to strike out the world, and the consequence of that is that they can dictate to '·thirty-five" and insert "not specially provided for in this act, their patrons everywhere whatever degree of sugar they want the twenty-five;" in line 24, after the word" products," to strike out raw sugar to be at. They can r(:lquire it to be made as well at 90 ·"or preparations;" in the same ·line, after the word •: tar," to as at 96, and the lower you go down in degree the higher tlre dif­ insert" not medicinal;" in the same line, after the word" medici­ ferential is and the more the protection to the trust. nal," to strike out "by whatever name known;" and in line 26, Of course I know that what I shall say has no weight. I do before the word •• per," to strike out" twenty-five" and insert not know what cast-iron arrangement has been arrived at as to a "fifteen;" so as to make the paragraph read: conference report, but I do know, so far as my information goes, 14. Coal-tar dyes or colors, not specially provided for in this act, 2-5 per cent that the essential basis of the number of pounds of raw sugar to ad valorem; all other products of coa.l tar, not medicinal, not specially pro­ make a pound of refined is erroneous, and upon that basis this vided for in this act, 15 per cent ad valorem. whole schedule of protection is predicated. So far as I am con­ Mr: ALLISON. The committee propose a modification of cerned, I want the Senate and the country to know the enormous paragraph 14, which I send to the desk. amount of protection in this bill to the sugar ~ust. I have no The VICE-PRESIDENT. The modification will be stated. b,opa whatever of malting any impression upon ouT friends on the The SECRETARY. Paragraph 14, page 4 ine 23, strike out other side or on the conference committee. They appear to be "twenty-five" and insert •• thirty;" in line 24, after the words drilled with the rigor and discipline of janizaries, and they are ''coal tar," insert the words ''not colors or dyes and;" and in line bound to enact this bill at all hazards. But right at this point of 26 strike out the word ''fifteen" and insert the woTd ''twenty." · the sugar trust it appears to me they ought to call a halt; they Mr. ALLISON. I should be glad to havs the paragraph read ought to investigate the matter; they ought not to give this trust as·it will read when amended. I will read it: more power than it already possesses, for it possesses much. Coal-tar dyes or colors, not specialll provided for in this act, 00 per cent It is a dreadful power; it is a dangerous power. There is not a ad valorem; all other :(lrodncts of coo tar not colors or dyes and not medici­ wholesale grocer in the United States who is not a slave to the nal, not specially proVJded for in this act, 20 per cent ad valorem. trust, who does not sell his sugar at their command and dictation. M.r. SEWELL. I presented an argument to the committee, and There is not a consumer in the United States who is not in their I thought they had adopted my suggestion to leave in the words complete power. They can raise the price of his sugar at will; "or preparations." and after the testimony has been adduced before the Senate that Mr. ALLISON. I have no objection to leaving in those words. they can make sugar and defy the competition of the world, after We supposed them to be surplusage. . they have been given a compensating duty ripon refined of more Mr. SEWELL. No; it covers a number of preparations that than they pay upon the raw, I want to know why it is that after have been adjusted already in the custom-house. I ask that the all that is done this clear twenty-hundredths of a cent a pound, words ''or preparations" be left in. · with the concealed advantages in this schedule, shall be adde

Mr. GRAY. I should like to ask the Senator from Iowa a latter part. I should like to know, for it is little enough to ask, question in regard to this matter. Would the duty that is here why this is done. imposed be excluded from everything that is medicinal by the Mr. ALLISON. I call the attention of the Senator from Missouri language ''not medicinal?" to the law of 1894:. We have practically taken the phraseology Mr. ALLISON. Yes. of that law, making another bracket, as it were, covering col­ Mr. GRAY. Then I should like to ask whether it would ex­ lodion and all compounds, etc., at 50 cents a pound, and then when clude such an article as thymo-cresol, which is sometimes called rolled jn sheets, which is another process-- sheep dip. I understand from a manufacturer of the article that M.r. YEST. Making it 60 cents. that is used as a disinfectant or insecticide- Mr. ALLISON. Making it 60 cents. Then when made up in finished articles or partly finished, 65 cents and 25 per cent ad It can absolutely be used- valorem. The present law is "collodion and all compounds of ! read from a communication of his- pyroxylin, by whatever name known, 40 cents a pound." Where for no other purpose. It is used to a certain e~ent in hospitals, but is use.d the law now provides 40 cents we provide 50 cents. On rolled or chiefly by farmers and stockmen as a sheep d1p, cattle wash, etc. For !his in sheets, but not made up into articles, it is 50 cents per pound purpose it is u sed and recommeJ?.ded by the leading breeders and v~terma­ in the present law, and we make it 60 cents. If in finished or partly rians throughout the world. It IS known to commerce as a "sheep dip." It is at present on the free list. finished articles, it is 45 per cent ad valorem, and we have n1ade it pru:tly Rpecific in the last bracket. · Mr. WHITE. It has been stricken from the free list. Mr. JONES of Arkansas. What is the proposed rate in the last Mr. ALLISON. It w ·U be on the free list. bracket of the amendment? Mr. GRAY. It will be on the free list? Mr. ALLISON. Sixty-five cents and 25 per cent. Mr. ALLISON. That is, not in that form, but sheep dip and Mr. VEST. The 65 cents is an increase. I was very glad, when all that class are provided for in t e free list. I will find the pro­ this amendment was originally made, to see that it was a reduc­ "Yision. tion from the Wilson Act. The Senator does not pretend to say Mr. GRAY. I suggest to the Senator some such language as that it now is the equivalent of the Wilson Act with the change this, as proposed b.Y these people, to put on. the ~e~ list "prod~?ts of classification? or preparations of coal tar used only as msectlmdes and dJsm­ Mr. ALLISON. It is the classification of the Wilson Act prac- fectants." That would cover the articles that are mentioned and tically. prevent this tax from being placed u:pon this article that is becom­ Mr. VEST. Yes; but the rates are not the same. ing every day more and more essential to the health of th~ stock Mr. ALLISON. The rates are increased over the Wilson Act. of the country. The VICE-PRESIDENT. The question is upon agreeing to the Mr. WHITE. There are parts of the country in-which sheep amendment of the Senator from Iowa to the amendment of the are produced ~h~re frequently there is a diseas~ of ~he s~ and committee. it is necessary m Its treatment to make a solution m which the The amendment to the amendment was agreed to. whole sheep, except the head, is sometimes immersed. The amendment as amended was agreed to. Mr. GRAY. This is it. The next amendment of the Committee on Finance was, in para­ Mr. ALLISON. It is not the intention, I will assure tbe Sena­ graph 22, page 6, line 17, after the word "above," to strike out tor, to make sheep dip dutiable under any clause in this para- "ten" and insert "seven;" in line 18, after the word "pound," to graph. • sb·ike out "two" and insert" one;" and in line 19, after the word Mr. GRAY. Would it be in order for me to move to put upon "above," to sb·ike out "ten" and insert "seven;" so as to read: the free list now "products or preparations of coal tar used only Gelatin, glue, isinglass or fish glue, and .PJ:epared fish bladders or fish · as insecticides and disinfectants?" sounds, valued at not above 7 cents per pound, 1t cents per pound; valued at Mr. ALLISON. If the Senator will give notice of that amend­ above 7 cents per pound, etc. ment, I will say that the committee will look into the matter. I Mr. ALLISON. I ask that that amendment be disagreed to. think in some form it ought to be done. The amendment was rejected.. Mr. WHITE. Paragraph 630 of the proposed bill as originally The next amendment was, in line 19, after the word" above," to framed contains sheep dip, but the line passed through the para­ strike out "twenty-five •• and insert "thirty-five;" in line 20, after graph indicates that the committee intended to eliminate it. the word "pound," to strike out "three cents per pound and Mr. ALLISON. My impression is that it is provided for in some fifteen" and insert" twenty-five;" in line 21, after the words "ad other part, but I can not turn to it at the moment. ~ assure the valorem," to strike out "valued above 25 cents and not above 40 Senator it will be dealt with. cents per pound, 5 cents per pvund and 15 per centum ad valorem; " Mr. GRAY. All right. in line 23, after the word "above,'' to strike out "forty" and insert Mr. MANTLE. I should like to inquire of the Senator from "thirty-five; " in line 24, after the word "pound," to strike out Iowa at this point if the committee has decided to permit sheep "twenty" and insert "fifteen;" and in line 25, before the words dip to remain upon the free list? "per centum," to strikeout" fifteen" and insert "twenty;" so as Mr. ALLISON. Sheep dip is a very indefinite term, and is made to make the paragraph read: np of two or three hundred things that are called sheep dip. It 22. Gelatin, glu e, isinglass or fish glue, and prepared fish bladders or fish was our purpose to cover, and I think we have some provision here sounds, valued a t not above 10 cents per pound, 2t cent s per pound; valued which covers, what would be called sheep dip. If the Senator will at above 10 cents per pound and not above 35 cents per pound, 25 per cent ad valorem ; >alued above 35 cents per pound, 15 cents per pound and 20 per look at paragraph 505, I think he will find it. eent ad valor em . The VICE-PRESIDENT. The question is on agreeing to the Mr. ALLISON. That should be agreed to. amendment of the Senator from Iowa to the amendment of the The amendment was agreed to. committee. Mr. JONES of Arkansas. I should be glad if the Senator from The amendment to the amendment was agreed to. Iowa would explain the effect of the paragraph as h e proposes it The amendment as amended was agreed to. . in comparison with the present law. The comparative statement -The next amendment of the Committee on Finance was, on page submitted to the Senate gives no information whatever. It seems 5, after line 1, to strike out paragraph 16, in the following words: as if the ex{>erts in the Treasury were completely paralyzed and 16. Collodion, and all compounds of pyroxyline, by whatevernameknowu., bewildered by the proposed changes in this paragraph, and there and whether rolled or in sheets, but not made up into a rticles, 50 cents per is nothing in the comparative statement from which any opinion pound; if in finishea or partly ~shed articles~, including such as are com­ monly called celluloid articles, 75 cents per pouna and 30 per cent ad valorem. can be formed as to the effect of the proposed changes. ::I't!r. ALLISON. The appraisers in New York have recently re­ And in lieu thereof to insert: ported that the rate on gelatin, under the pamgraph as we have 16. Collodion and all compounds of pyroxylin, whether known as celluloid amended it, would run from 21 to 25 per cent ad valorem, and on or by any other name, r olled or in sheets or otherwise1 but not made up into glue, 4 per cent to 21 per cent; on isinglass or fish glue, fish blad­ articles, 50 cents per pound; if in finished or partly finished articles, 60 cents ders, etc., from 4 to 6 per cent. There is no great change. We per pound and 25 per cent ad valorem. · reduced the rates, as the Senator will see, on the lower grades. Mr. ALLISON. The committee propose a modification of that Mr. JONES of Arkansas. I must accept the Senator's state­ paragraph which I send to the desk. ment because I have no idea what is the effect of the changes The SECRETARY. Strike out paragraph 16 and insert: made. It appears to me as if the rates are increased in some re­ Collodion and all compounds of pyroxylin whether known as celluloid or spects. I may be mistaken in that. I would be very much grati­ by an y other name, 50 cents per pound; r olled or in sheets, unpolished and fied to find that there is a reduction by which the committee not made up into articles, 60 cents per p ound; if in fin ished or partly finished stands. article!i, 65 cents per pound and 25 per eent ad valorem. Mr. ALLISON. On the lower grades, of course, there is a little Mr. VEST. That is a considerable increase and a change of increase; on the higher grades there is a reduction. classification so as to put up these duties enormously. Why are The VICE-PRESIDENT. The next amendment passed over these changes made? That paragraph seems to have been delib­ will be stated. erately framed and t·eported by the committee. Here is a new The next amendment of the Committee on Finance was, on page classification in the first part of it and 5 cents duty added to the· 8, line 17, paragraph 38, before the word" cents," to strik• out ...

I 2036 CONGRESSIONAL RECORD-· SENATE. JUNE 26,

"fifty " and insert ''thirty-five;" so as to make the paragraph Mr. PERKINS. For lubricating and other purposes. read: Mr. VEST. Olive oil? - 38. Olive oil, not specially provided for in this act, 35cents per gallon. Mr. PERKINS. Olive oil for lubricating and other purposes Mr. ALLISON. I have a modification to present in that para­ is on the free list. It comes here in barrels and is bottled. graph, which I will send to the desk. Mr. VEST. That is not edible oil? The VICE-PRESIDENT. The amendment to the amendment Mr. ALLISON. It is in paragraph 603. will be stated. Mr. VEST. Is that edible oil, used for salads to put in people's TheSECRETARY. In paragraph38, page8,line17, before"cents," stomachs? strikeout "thirty-five' and insert "forty;" and at the end of the Mr. PERKINS. I am inclined to think a great many of our paragraph insert a semicolon and the words: friends use it for that purpose. Mr. VEST. I suppose not, if they know it. If packed in bottles, jars, tins, or similar packages, 50 cents per gallon. Mr. PERKINS. No; they do not know it. Mr. JONES of Arkansas. I can not imagine what excuse there Mr. VEST. And disarrange their internal organization and can be for increasing the rate on olive oil above the rate in the bring about disease? I never heard of a man lubricating his McKinley Act. It was 35 cents a gallon in the McKinley .Act. It stomach with adulterated olive oil. [Laughter.] · is 35 cents under the present law. Certainly the production of The VICE-PRESIDENT. The question is on the amendment olive oil is not an infant industry in this country. The importa­ of the Senator from Iowa to the amendment of the committee. tions were increased in 1896 over 18913.- If the purpose is to get The amendment to the amendment was agreed to. revenue it would seem that we are at the revenue point at 35 cents The amendment as amended was agreed to. a g-allon. I can not understand why the rate should be increased The VICE-PRESIDENT. The next amendment passed over beyond 35 cents; and I should be very glad to have the Senator will be read. state some reason why it should be done. If there is not some The Secretary read paragraph 4.3, on page 9, as follows: satisfactory reason given, I should like to have a vote of the Sen­ 43. Blues. such as Berlin, Prussian, Chinese, and all others, containing fer­ ate by yeas and nays, to know whether the Senate will agree to ~·ocyanide of. iron, d!Y or ground in or mixed with oil, 8 cents per pound; and m pulp or JID.X <::: d with water, 8 cents per pound on the material contained this in crease. therein when dry. Mr. PERKINS. Mr. President, there are two good reasons. The first reason is that of revenue to be gained by increasing the :M:r. ALLISON. The committee propose to modify the amend­ rate from 35 to 50 cents. The second reason, whiCh to my mind ment, iu line 15, by striking out "six" and inserting "eight "re­ is far more important than the other, is because it provides that storing the rate provided for in the bill as it came hom the House we shall have pure olive oil. The people of the western side of of Representatives. this continent are demonstrating the fact that we have olive or­ The VICE-PRESIDENT. The amendment proposed by the chards that are equal to those of Spain or any other country. We Committee on Finance will first be stated. have several hundred thousand olive trees now in full bearing in The SECRETARY. On page 9, paragraph 43, line 14. after the Califorma, and we are producing the only pure olive oil that is word "iron," it is proposed to insert ·• in pulp;' and in. line 15, produced upon this continent, while, as a historical fact~ we are after the word "oil," to insert" or water;" so as to read: · shipping out of the United States cotton-seed oil that is sent to 43. Blues, such as Berlin, Prussiau, Chinese, and all others, containing fer­ Spain and other European countries and put up in bottles there, rocyanide of iron, in pulp, dry or ground in or mixed with oil or water, etc. labeled, and returned to this country and sold to the consumer as The amend.ment was agreed to. . pure olive oil, when seven-tenths of it is cotton-seed oil. The next amendment was, on page 9, paragraph 43, line 15, after I wish to say one word more. I do not wish to take up time. the word '· water," to strike out '' eight " and insert ·' six; " so as· We have hundreds of thousands of olive trees that will come into to read" 6 cents per pound." bearing within the next few years. The olive grows upon the Mr. ALLISON. The committee desire that amendment to be foothills and elevations of from 500 to 2,000 feet above the level of disagreed to. the sea. The trees grow most luxuriantly in California, and The VICE-PRESIDENT. The question is on agreeing to the among the old nations there are olive trees more than 100 years amendment proposed by the Committee on Finance, which has old that have been yielding all that time. I want to say to my just been stated. friend from .Arkansas that there is no industry more worthy of The amendment was rejected. his support and recognition than the cultivation of olives in this Mr. VEST. I want to call attention to the fact, just in a his­ country. We have demonstrated the fact that we can give you torical way, although it does no good, that this is an increase over pure olive oil, and you will get it from no other place in the world the McKinley rate from 6 to 8 cents; yet we were assured by the Imported into this country. · Senator from Rhode Island [Mr. ALDRICH] that1 wherever the Mr. JONES of Arkansas. I understand that there is a large committee went over the McKinley rate it would be phP.nomenal quantity of pure olive on in this country made from cotton seed, and abnormal. There are 132 instances which have been already and I suppose it is necessary under the circumstances to have counted where the committee have gone over the McKinley rates. some protection. The next amendment of the Committee on Finance was. on page ' Mr. VEST. If the Senator from California had just put one or 9, paragraph 43, line 16, after the word "pound," to strike out: two words more in his remarks I could have subscribed to them And in pulp or mixed with water, 8 cents per pound on the material con- with great cheerfulness-pure olive oil and cheap olive oil. The1·e tained therein when dry. . is the- point in this discussion. The increase of taxation will not The amendment was agreed to. make the oil any purer. The whole object is to make us buy at a The VICE-PRESIDENT. The next amendment of the Com­ higher rate the olive oil that is raised and produced in California. mittee on Finance which was passed over will be stated. If I were to stand here and demand an additional duty upon an The SECRETARY. On page 10, paragraph 47, line 10, after the article produced in Mis ouri in order to make the people of Cali­ word "act," the Committee on Finance propose to strike out fornia pay more for it I would be doing exactly what the Senator "crude' and insert ·dry;" and in line 11, after the word "pound," from California is doing now. to strike out the words" dried or powdered\ one-half of 1 cent Here is a.n article necessary to comfort and health, because the per pound." best physicians tell us that olive oil should be used in salads a.nd Mr. ALLISON. The Committee on Finance instruct me to that it is absolutely necessary to health in the large cities and in present a modification of this amendment, and I move to strike the springtime. In France it is used to a very large extent, be­ out the paragraph and insert in lieu thereof what I send to the cause no Frenchman thinks that his dinner is complete and en­ Secretary's desk. tirely healthful without a salad. The people of the United States The VICE-PRESIDENT. The amendment will be stated. at large use this article. Why should we be ma-de to pay tribute The SECRETARY. On page 10 it is proposed to strike out para­ to one State? What sort of justice is therein that? Here is some­ graph 47 and insert: thing- that comes from the soil. No immense amount of labor is 47. Ocher and ochery earths, sienna and sienna earths. and umber and used in the production of olive oil. We want it pure; there is no umber earths, when crude or not powdered, washed, or pulverized, one­ objection to that; but we want it cheap. Here is an increase in eighth of 1 cent per pound: if powdered, washed, or pulverized, three-eighths the rate of taxation for the single purpose, pure and simple, of of 1 cent per pound; if ground in oil or water , l t cents per pound. maldng my constituents pay a larger price for something that is The VICE-PRESIDENT. The question is on the amendment raiE=ed in the State of California. That is the tariff. of the committee as proposed to be modified. Mr. PERKINS. I will say to my friend the Senator from Mis­ :Mr. ALLISON. I want to modify the amendment further. souri that. having in view the word "cheap," we prevailed upon After the word" earths" where it last occurs I move to insert the committee to place adulterated olive oil upon the free list. It "not specially provided for." is there; and therefore he will have a choice. He can take the The VICE-PRESIDENT. The modification to the amendment pure California olive oil which we will give him or he may at a proposed by the Senator from Iowa will be stated. very low figure take the cheap adulterated oil. The SECRETARY. It is proposed to modify the amendment by Mr. VEST. Does the Senator say that adulterated olive oil is inserting after the word" earth::~" where it last occurs the words on the free list? "not speciall;y provided for." 1897. CONGRESSIONAL RECORD-SENATE. 2037

Mr. ALLISON. Now I ask the Secretary to read the paragraph A p-z:otective duty of 185 per cent on an article so larg~ly ~o~sume~ by four great mdustries, and necessary to them as raw material, 1s rmposmg upon as it is proposed to be amended. them a burden almost destructive. The SECRETARY. It is proposed to strike out paragraph 47 and It is entirely unnecessary as a protective measure, and would entirely de­ in lieu thereof to inser~: feat its object as a revenue measure, being prohibitory. 47. Ocher and ochery earths, sienna and sienna earths, and umber and Mr. VEST. Let me ask the Senator from Iowa what the present umber earths not Rpecially provided for, when crm'!e or not• powdered, duty is on arseniate of soda? washed, or puiverized, one-eighth of 1 cent per po.und; If po.wdE_~red, washed, or pulverized, three-eighths of 1 cent per pound; if ground moil or water, 1-l Mr. ALLISON. Twenty-five per cent ad valorem.' cents per pound. Mr. VEST. What do you propose to make it? The amendment as modified was agreed to. . Mr. ALLISON. One and one-fourth cents per pound. The next paragraph passed over was paragraph 50, o~ p~ge 10, Mr. VEST. What is the equivalent ad valorem? which the Committee on Finance proposed to amend,m line 17, Mr. ALLISON. About 25 per cent, I think. after the word "blue," by striking out "and other ultramarine Mr. VEST. I want to call attention to the fact that the increase colors;" so as to read: proposed by the commi~tee upon soda as_h, which i~ ~n article of very great importance, IS above the McKmley rate, It Is above the 50. Ultramarine blue, whether dry, in pulp, or mixed with water, and wash blue containing ultramru·ine, etc. Wilson rate, and it is above the rate in the House bill. Mr. ALLISON. That is all right. The amendment was agreed to. Mr. VEST. Will the Senator tell us now why he proposes to The next amendment was, in line 19 of the same paragraph, make that increase? We are certainly entitled to know the reasons. before the word ''cents," to strike out ''four" and insert'' three." for it. I suppose every Senator has received many communica­ Mr. ALLISON. I wish to modify that amendment by inserting tions in regard to this article. The soap manufacturers a!e very the words'' and one-half" after'' three." much interested in it, for it is an article of large consumptiOn and The VICE-PRESIDENT. The amendment to the amendment of absolute necessity to the soap manufacturers of the United will be stated. States, and they have petitioned for a decrease of duty. Not satis­ -The SECRETARY. It is proposed to amend the amendment of the fied with the McKinley rate-leaving out the Wilson rate,. which committee, in line 19, paragraph 50, page 10, before the word of course is not to be considered by our friends on the other side­ "cents," by inserting the words" and one-half;" so as to make and not satisfied with the Dingley rate, they now propose to put the paragraph read: up the price of this commodity one-eighth of a cent, making it a 50. mtramarine blue, whether dry, in pulp, or mixed with water, and wash 4.8 per cent ad valorem duty. I hope our friend from Iowa will blue containing ultramarine, 3i cents per pound. tell us why this is done. The amendment was agreed to. Mr. STEWART. I will state for the information of the Sena­ The amendment as amended was agreed to. tor from Missouri that this article is largely manufactured in The next paragraph passed over was paragraph 58, on page 12, many places. Competition will undoubtedly keep the price down line 12 which the Committee on Finance proposed to amend, before to where it ought to be. This duty is imposed upon the principle the w~rd "cents," bystrikingout "twenty" andinser~ing "ten;" that such articles should be protected. Certainly it is n product so as to make the paragraph read: of our own country, and competition has resulted largely in the Phosphorus, 10 cents per pound. reduction of the price of it, and we want this duty. Mr. VEST. The Senator from Iowa [Mr. ALLISON] does not Mr. ALLISON. I propose to modify the committee amendment answer, but the Senator from Nevada [Mr. STEWART] does, which by inserting " fifteen" instead of "ten; " so as to read: is proof positive that Nevada and the Western country is inter­ Phosphorus, 15 cents per pound. ested in soda ash. The amendment as modified was agreed to. · Mr. STEWART. Suppose they are, is that a crime? The next item passed over was the amendment reported by the Mr. VEST. '' Hinc illce lachrymre" is the old Latin quotation­ Committee on Finance, on page 14, after line 22, to insert as a new •' hence those tears." paragraph: 1\Ir. STEWART. . Do not be afraid of Nevadagettingtoomuch, 74t. Soda ash, three-eighths of 1 cent per pound. or Missouri either. Mr. VEST. I do not care whether it is Missouri or Nevada or The VICE-PRESIDENT. In the absence of objection, the anywhere else, I am opposed to this class legislation-putting up amendment will be considered as agreed to. the price of an article of necessity in favor of certain manufac­ :Mr. VEST. Let us understand that, Mr. President. turers. I do not ask it for Missouri. I shall vote against any in­ Mr. ALLISON. Has paragraph 74-! be~n agreed to? crease upon an article of prime necessity in my State, and take Mr. VEST. No; I want to understand It. mv chances as a public man. When it comes to lead, I shall vote Mr. ALLISON. I move to amend that paragraph by placing a to'put that on the free list; when it comes to lumber, I shall vote semicolon after the word "pound," in line 23, and inserting what to put that on the free list, and salt on the free list, and wool on I send to the desk. the free list; and if they want a Senator here to do otherwise, let The VICE-PRESIDENT. The amendment to the amendment them send somebodyelse here. These duties ought to be justand proposed by the Sena.tor from Iowa on behalf of the committee equal, and they should be imposed with reference to the consum­ will be stated. . ers of the country, the millions upon millions of people who are The SECRETARY. In line 23, after the word "pound," it is pro­ not represented here by any lobby or any m oneyed interest at all. posed to' strike out the period and insert a semicolon; and to add Here is soda ash, which is put into soap, an article of absolute "arseniate of soda, 1t cents per pound." necessity, a cheap article, used by everybody. It is said that the The amendment to the amendmen~ was agreed to. Democratic party does not use it as a rule, though I believe they Mr. SEWELL. Representing as I do immediately a State in are as much addicted to bathing as any other class in the, com­ which there is an industry that consumes a large amount of soda munity. An ex-President, of whom I was a great friend, at a ash whilst I do not wish to make any contest with the committee dinner party in New York spoke of soap as a great political in­ ,.- on this amendment, I ask to have published in the RECORD, as a strumentality during the previous election. [Laughter.] Here part of my remarks, the statement which I send to the desk. is soap, the component or principal article composing which is The VICE-PRESIDENT. If there be no objection, it will be so soda ash, made dearer; though our friend from Nevada tells us ordered. he thinks that the competition in this country will keep the price The statement referred to is as follows: of soda ash down. SODA ASH. Mr. STEWART. Certainly. The bill reported by the Finance Committee of the United States Senate Mr. VEST. Well, then, what is the use of shutting out the increases the duty on soda ash, reported in the House bill at one-fourth cent foreign manufacturer, when our experience is that whenever you per pound, to three-eighths cent per pound. shut out foreign competition, the domestic manufacturers arrange The present cost of soda ash for importation is !~'bout one-fifth cent p~r pound, f. o. b. Liverpool, so that a duty of three-eighths cent per pound IS the price for their own benefit, and you have what is generally equivalent to fully 185 per cent protection. · called a combine or a trust? One manufacturer says to another, At the present rate of dut y, one-fourth cent per pound, which is also the duty of the McKinley bill, there is imported into this country about 120,000 "Here, Smith, you and myself are cutting each other's throats. tons per annum, yielding to the Government about $672,000 annually as You own a factory over there, and I have a factory over here. revenue. Why let these haymakers get this article cheap at our expense? ) The soda ash imported into this country is principally consumed on the Let you and I get together and coolly fix the price for our own seaboard, as the foreign makers can ne;> t compete wit h the ~eri can makers where they are obliged to pay much frei~ht. A duty of three-eighths of a cent benefit, and make money.'~ "Put money in thy purse," Roderigo; per pound would therefore be prohibitive and prevent any further revenue "put money in thy purse." That is aU there is in it. from importations, and in addition would place all the industries consuming soda ash at the mercy of three manufacturing companies in the United States. Mr. PLATT of Connecticut. Mr. President, the manufacture (There are but threemakersofsoda ash in this country, all of whom are large of soda ash in this country comes in direct col)).petition with the corporations.) The glass, soap, paper, and pulp industries are all large con­ manufacture of soda ash by the United Alkali Company, of Great sumers of soda ash; to place an increased duty on soda ash, already protected Britain, the most powerful trust or combination in the world. by a duty of over 100 per cent, means a very severe injury and loss to all these large industries, none of which are protected in their manufacture t-o the ex­ What our friends on the other side seem to wish to do is to destroy tent already given and conceded to the soda-ash makers. .. the manufacture of soda ash in this country in orde! that it may

.... 2038 _CONGRESSIONAL RECORD-SENATE. JUNE 26,

be entirely monopolized by the United Alkali Company, of London, paired with the Senator from Maine [Mr. HALE], and .therefore which, as I said, is a trust with 820,000,000 of capital, and prob­ withdraw my vote. · ably the closest and most grinding monopoly on the face of the Mr. SHOUP. I have a general pair with the Senator from Cal­ earth. ifornia [Mr. WHITE], but I reserved the right to vote on this Mr. LINDSAY. I call the attention of the Senator from Con­ question, and will therefore allow my vote in the affirmative to necticut to the fact that the importation of soda ash between the stand. years 1893 and 1896 has declined 831 per cent. The Americans Mr. GEAR. I have been transferring pairs with the Senator seem to be able to take care of that British trust. from Utah [Mr. RAWLINS], who is not now here; but, by his per­ Mr. PLATT of Connecticut. To:daythere arE,!, as I understand, mission, I will transfer his pair to the Senator from New Jersey three soda-a8h manufactories in the United. States, perhaps more. rMr. SMITH]. I -want to protect the vote of the Senator from New When they commenced the manufacture of soda ash, there was Jersey. They would both vote the same way. I will let my vote at the then prevailing price perhaps an opportunity of a living in the affirmative stand. profit. To crush out this manufacture here the foreign monopoly Mr. PENROSE. I transfer my pair with the junior Senator reduced the price to a point where t.here was no profit in the from Delaware [Mr. KENNEY] to the junior Senator from Dlinois American manufacture. Just the moment that they can succeed [1\lr. MASON], and vote" yea." in crushing the American manufacturers, who are not in combina­ The result was announced-yeas 30, nays 20; as follows: tion, this foreign combination and trust will raise the price higher than it was before. That is the old story. YEAS-30. I think that the people who use soda ash in this country will get Allison, Frye, McEnery, Shoup, Baker, Gear, Pem·ose, Spooner, their soda ash much cheaper by a duty upon it which will allow Burrows, Hansbrough, . Perkins, Stewart, its manufacture in the United States than by putting it on the Carter, Hawley, Platt, Conn. Warren, free list, thus crushing out the manufacture in the United States Chandler, Hoar, PlatthN. Y . Wetmore, Deboe, Jones, Nev. Pritc ard, Wilson. and putting the whole business in the hands of this monopoly. Fairbanks, Lodge Proctor, M1·. JONES of Arkansas. 1s it on the free list now? Foraker, McBride, Sewell, Mr. LINDSAY. It has never been on the free list. NAYS-20. Mr. PLATT·of Connecticut. It is not on the free list. . Allen, Clay, Mallory, Pettus, Mr. LINDSAY. It was on the dutiable list in the McKinley law. Ba-eon, Cockrell, Mitchell, Roach, Mr. VEST. We only desire to have the McKinley rate. · Berry, Gorman, Murphy, Turpie, Mr. JONES of Arkansas. Thesamerateisonthisnowthatwas Caffery, Heitfeld, Pasco, Vest, under the McKinley law, and there was an increase as originally Chilton, McLaurin, Pettigrew, Walthall. proposed by the committee of an eighth of a cent over the bill as NOT VOTING--S9. it came from the House. The importations amounted in 1893 to Aldrich, Gallinger, LindRay, Rawlins, $4,860,787.77 and they fell off in 1896 to $1~970,975.31. So it seems Bate, George, McMillan, Smith, Butler, Gray, Mantle, Tellm·, ' that a quarter of a cent gives ample protection. The importation Cannon, Hale, Martin, Thurston, was not one-half in 1896 what it was in 1893. Clark, Hanna, Mason, Tillman, What is the occasion for raising the tax any higher? We have Cullom, Harris, Kans. Mills, Turner, Daniel, Harris, Tenn. Morgan, Wellington, been told all the time that it was not proposed to have any extrava­ Davis, J ones, Ark. Morrill, Wbite, gant rate of taxation,, and yet the rate under the McKinley law Elkins, Kenney, Nelson, Wolcott. and the rate under the present law is proposed to be rai ed 50 per Faulkner, Kyle, Quay, cent, when the House of Representatives itself proposed only a So the amendment of the committee as amended was agreed to. quarter of a cent, and the Committee on Ways and Means were The next paragraph which was passed over was paragraph. 81, satisfied with the present rate and satisfied with the rate which beginning in line 14, on page 15, which the Committee on Finance was in the McKinley law. This increase, the like of which has propo ed to · amend~ after the word" Vanillin," by striking out not been heard of in any arlicle of necessity anywhere, has been " 70 cents per ounce" and inserting " 50 per cent ad valorem." put on by the Senate committee, when we were assured in the Mr. ALLISON. I move to amend the amendment by striking beginning of the debate that all these taxes were going to be kept out the amendment heretofore proposed by the committee, ~' 50 down to a marvelously low level. p er cent ad valorem," and also striking out "70 cents per ounce," The VICE-PRESIDENT. The question is on the adoption of and inserting" SO cents per ounce;" so as to read: the amendment proposed by the committee as amended. Mr. VEST. I call for the yeas and nays. , 81. Vanillin, 80 cents per ounce. The yeas and nays were ordered; and the Secretary proceeded to Mr. VEST. There is nothing in the comparative statement call the roll. showing that any of this article comes into the country. Mr. GEAR (when his name was called). I am paired with the Mr. ALLISON. I have a very full statement from the ap· Senator fi·om New Jersey [Mr. SIDTH], but I transfer that pair praisel''s office respecting it. to the Senator from illinois [ M.r. MASON] , and vote " yea." Mr. JONES of Arkansas. There ought to be some reason given Mr. LINDSAY (when his name was called). I have a general for some of these increases. Let the statement of the Senator be pair with the senior Senator from Michigan [Mr. 1\lo.'MILLAN]. re~ . If he were present, I should vote "nay." · Mr. VEST. We can not find out anything about this article. Mr. MILLS (when his name was called). I am paired with the Mr. ALLISON. I have a statement t·egarding vanillin, which Senator from New Hampshll.·e [Mr. GALLINGER]. If he were has been heretofore classified as a chemical compound at 25 per present, I should vote "nay." cent ad valorem. Mr. MORGAN (when his name was called). I am pall.·ed with Mr. VEST. What is the unit of value? the Senator from Pennsylv:ania [Mr. QuAY]. MT. ALLISON. About $50 a pound. It has ranged within the Mr. PENROSE (when his name was called). I have a general last few years from 835-$35 being exceptionally low, and only pair with the junior Senator from Delaware [Mr. K&"{NEY]. for a short time-to $50 and to as high as 880 a pound. This duty Were he present. I should vote" yea." of 80 cents an ounce would be equivalent to about 25 per cent ad Mr. TILLMAN (when his namewascalled). I am pa-ired with valorem. the Senator from Nebraska [Mr. THURSTON], and therefore with­ Under the present rate of duty the people abroad, as I tmder­ hold my vote. stand, fix the price to suit themselves. There are, I think, only Mr. WARREN (when his name was called). I am paired with two or three manufactories abroad, and only one in this country. the Senator from Washington [Mr. TURNER]. If he were here, The object is to get a specific duty. I should vote '' yea." Mr. VEST. How many of these manufactories are there in this Mr. WELLINGTON (when his name was called). I again an­ country·? ..,. nounce my pair with the Senator from North Carolina [1\Ir. BUT­ 1\Ir. ALLISON. Just one. The object is to secuTe a specific LER]. In his absence, I w!thhold my vote. duty of about 25 per cent ad valorem, which js 80 cents an ounce. The roll call was concluded. 1\ir. VEST. I understand this article is an extract of the vanilla Mr. THURSTON. I inquire 'if the senior Senator from South bean. Is that so? Carolina f:Mr. TILLMAN] has voted? Mr. ALLISON. It is what is called a synthetic product. It is The VICE-PRESIDENT. He has not voted. an efficient.substitute forvanillamade ft·om the vanilla bean, and Mr. THURSTON. Iagaiuannouncemypairwith that Senator, is a highly concentrated article, used for ftavorin~ ices, ice cTeams, · and withhold my vote. If he were present, I should vote " yea." confectionery, etc., and also in making perfumery. It is made Mr. WARREN. I am informed that the Senator from Colo­ from coal tar and various other things. rado (Mr. TELLER] would, if .Ue were here, vote on the side of this Mr. VEST. Is it a coal-tar product? question that I would. I transfer my pair with the Senator from Mr. ALLISON. Not a coal-tar-product entirely. Washington [Mr. TURNER] to the Senator from Colorado [Mr. Mr. VEST. Then of what is it made? TELLER], and v0te "yea." Mr. ALLISON. Coal·tar iB one of the elements which ente-r Mr. JONES of Arkansas (after voting in the n.egative). I am into its composition. :

1897. .CONGRESSIONAL .REOORD-SEN.KTE. ·2039

Mr. VEST. There is but one factory in this country, and none The amendment was ag1·eed to. of the article comes in, according to the comparative statement. 'I'he VICE-PRESIDENT. The remaining portion of the para­ Mr. ALLISON. I have a statement here, .and perhaps I had graph will now be stated. better briefly give the contents of it. The SECRETARY. Vanilla beans, $2 per pound; vanilla beans, Mr. VEST. Let us have something, for we are in the dark commercially known as cuts, $1 _per pound. about it. The VICE-PRESIDENT. The question is on agreeing to the .Mr. ALLISON. It is a proprietary article, made and controlled amendment which has been stated. abroad under patent, and it is understood that it is consigned for The amendment was agreed to. sale on foreign owners' account to but two or three firms in this Mr. ALLISON. I ask that paragraph 86, the next in order, country. may be passed over for the moment. .It is a white crystalline powder, chemically pure, made from The VICE-PRESIDENT. It will ba passed over. The next coniferine, a glucoside contained in the cambrium layer (under amendment which has been passed over will be stated. the bark) of the pine tree; also from guiacol, or the resin of the The SECRETARY. In_paragr~ph 88,line21, after the word "ton," lignum-vitre tree, as well as· from a body found in oil of cloves. to strike out "bauxite or beauxite, crude, not .refined or otherwise Its ma rket value has been a matter of serious dispute, it having· advanced in condition from its natural state, $1 per ton;" so as to been the subject of frequent advances and of reappraisement. make the paragraph read: The latest appraised value is about $50 per pound. It was for­ _ 88. Clays or earths, unwrought or unmanufactured, not specially-provided merly invoiced conside1·ably higher, and lately by one concern as for in this act, $1 per ton; wrought or manufactured, not specially provided for in this act, 82 per ton; china clay or kaolin, ~ per ton; asphaltum and low as $35 per pound; but, as before stated, it was advanced. In bitumen, crude, if not dried or otherwise advanced in any .manner,..$1.50 p:er consequence of the disputes l'especting its value and the repeated ton: if dried or otherwise advanced in any manner, $3 p er ton. attempts at undervaluation, it is of the highest importance that :Mr. ALLISON. I ask that the amendment be disagreed to. -the rate upon the article be specific. Seventy-five cents an ounce The VICE-PRESIDENT. The question is on agreeing to the would be substantially the equivalent of 25 per cent ad valorem, amendment proposed by the·Co.mmittee on Finance. the rate to which the article is now subject. The amendment was rejected. Mr. VEST. What is it used for? Mr. OHILTON. l suggest to the Senatorirom Iowa that the :Mr. ALLISON. For perfumery, -and, of course, in confections Senator from Gem:gia who wished to be- heard upon this question and as a substitute for the vanilla bean. is not present in the Chamber. The VICE-PRESIDENT. ·Without objection, the amendment Mr. ALLISON. In line 17, before the-word" dollars/t I move. :will be considered as agreed to. to strike out ''two" and insert '' three.'' J\ir._ALLISON. Before leaving this subject, I wish to insert­ The SECB.ET:A&Y. It is -proposed to amend the paragraph by ! think it .ill. better to make it .a.new paragraph called 80-!, a1though strildng out, in line.17, the wor.d "two" andinserting "three;" .so 1 intended to make it a part of this paragraph-as a separate-para­ as .to read: graph what·I send to the desk. China clay o:r kaolin, .$3 per ton. The SECRETARY. · It is proposed to insert as a new yaragraph ~Ir. JONES of .A:rkansas. I -should like-the Senator from Iowa 'the following: to state what.the pl'esent rate is on china clay or .kaolin. ·SOl. Tonquin, tonqua, o~tonka beans, 50 cents per pound; vanilla beans,-$2 Mr. ALLISON. Two dollars a ton. That is myTecollection. :per pound; vanilla beans, commercially known as cuts, $1 per pound. The VICE-PRESIDENT. -The question is on agreeing to the ·Mr. JONESuf Arkansas. What is the rate now? amendment proposed by the-senator from Iowa. Mr. VEST. What iscilie present duty? The amendment was agreed to. Mr. ALLISON. Both of the articles are on the free list. Ton­ :M:r. PLATT of Connecticut. I should like to bave the -para­ :qua beans are ·on the free list. graph read as it now stands. M1·. JONES -of Arkansas. The intention of this is to give effect The Secretary Tead as follows: to the tariff just put on. As these things would probably come 88. Clays or earths, unwrought or unmanufactured, not specially provided .in competition with ;vanillin, an increased rate on that article fot· in this act, $1 per ton; wrought or-manufactured, not specially _provided for in this act, $2 per ton; china· clay or .kaolin, $3 pe:r ton; .asp:ijaltum and would not be very effective unless this article 'is taken off the free bitumen, crude, if not dried, m· otherwise advanced in any manner, $1.50 per list. ton; if dried or otherwise advanced in eny manner, $3 per ton. Mr. ALLISON. ! ·will say to the Senator from Arkansas that Mr. PLATT of Connecticut. I thought there ·had been an they bear noielation to 'each other. . amendment previously adopted placing limestone rock asphalt on Mr. VEST . .Did I understand -the Senator to say -vanillin is the dutiable list. It is so printed. used as a substitute for the vanilla bean? The VICKPRESIDENT. The -Secretary informs the Chair thai .ltfr. ALLISON. I did say .so. that is the pending amendment, which has not been agreed to. Mr. ·VEST . .How can the Senator say they have no relation to Mr. PLATT of Connecticut.. The Secretary did not-read·the each other? rest of-the paragraph, as I understand itio remain. ~Ir. ALLISON. Whai I ·meant to say was that the action of The VICE-"'PRESIDENT. The Secretary will rea-d. the committee had_no reference to that. 'The Secretary 1·ead as follows: Mr. VEST. We -are discussing the effect of the action of the Bauxite, or beauxite, crude, not refined or otherwise advanced in conqition committee. The Senator has just put a duty of 80 cents an ounce from its natural state, $1 per ton. upon vanillin, which is a substitute, as he says, far the vanilla Mr. PLATT of Connecticut. Now, there is an amendment bean. He then "Proceeds to take the vanilla bean off the free list pending in regard to rock asphalt. and put a duty on it. Now, the meaning of that is first to protect The VJCE-PRESIDENT. The amendment will be stated. the vanillin, of which there is -just one manufacturer in this -The SECRETARY. After the word "ton," in line 17; it is pra. country, and none broughtin, and then to exclude the competing posed to insert: product by putting a duty upon it. In other words, put the vanilla Limestone rock asphalt containing not more than 15 per cent bitumen, 50 bean upon the dutiable list, shut out the vanilla bean in the inter­ cents per ton. est of the vanillin manufacturer in the United States, who gets 80 And in line 20, after the word" bitumen," to insert" not spe­ cents an ounce, and none of }t comes in. If that is not a tariff cialty provided for in this act;" ·so as to read: combine, there never was one made. Limestone rock asphalt containing not more -than 15 per cent of bitumen, Mr. ALLISON. The tonqua bean is a very high-priced article, 50 cents per ton; as:phaltum and bitumen, not specially provided fo:r in this : and it -iB imported to this country at a high price, and it will nn­ act, crude, if not dried or otherwise advanced in any manner, $1.50"J)er ton. ·doubtedly maintain that price under the duty we propose, which The VICE-PRESIDENT. The question is on agreeing to the is purely a revenue duty. amendment proposed by the committee. • ' As to the effect it may have upon vanillin, I do not suppose it The amendment was agreed to. would be appreciable. The vanillin is a highly-concentrated Mr. VEST~ I wish to call attention, in the line of historical product, and is used as a substitute for the vanilla bean in the allusion simply, to the fact that asphalt, under the McKinley law way I have stat~d, and both of these articles will yield from a half and the existing law, whether crude or advanced in manufa.cture, million to seven hundred thousand dollars, as I am informed by was free. Here it is put upon the dutiable list. The equivalent Treasury experts. J think we need the revenue, especially if we ad valorem for $3 per ton upon asphalt is 109 per cent. Of course :are :not to put a tax upon beer and tobacco and some other articles the argument will be made, when anything is said against a tax: that are now .embraced in the bill. I submit the amendment to on asphaltum, that the principal supply of this country to-day the Senate. and if they wish to vote it down, they can do cSo. comel'l from an island in the West Jndies that belongs to Great The VlOE-PRESIDENT. The question is on agreeing to the Britain. It is said that Great Britain charges so much royalty for amendmPnt submitted by the committee. • the bitumen or asphaltum whir.h is taken out of the lake on that Mr. VEST. I call for a division of the question. island. My information is that an American company has .pur­ Tile VlCE-PRESIDENT. 'l,he question is on agreeing to the chased either the whole of that lake or .an interest in it, and that the first part of the amendment, which will be stated. aspha~ t we have to-day upon the streets of the city of Washington­ The SECRETARY. It is proposed io insert: Washmgton has more asphaltum pavement than any other city'in Tonquin, tonqua, or tonka beans, 50 cents per pou~d. the United States-came from that lake, and the ~government of

. . 2040 CONGRESSIONAL RECORD- SENATE. JUNE 26, the District of Columbia paid an enormous price, about three and charge of the bill was to give me a hearing before action was a half times what is now the commercial value of the asphalt used taken by the Senate. on streets. ~ Mr. PLATT of Connecticut. In relation to what? We have lately discovered immense deposits of asphalt or gil­ Mr. QUAY. Paragra-ph 88. sonite in the United States, and every Senator will recollect the Mr. PLATT of Connecticut. Which article? struggle we had here in regard to the Uncompahgre Reservation, Mr. QUAY. First as to crude asphalt, which I desire to have about opening it. That legislation was defeated; but of course placed on the free list; second, as to gypsum, and third, as to the asphaltum or gilsonite beds remain there. There is a compa~y feldspar, which I desire to hav-e placed on the dutiable list. I in the city of St. Louis that have gilsonite or asphaltum deposits will be very glad if the Senator from Connecticut will allow the outside of that reservation, and they are furnishing now to the paragraph to be passed over. 1\Iy understanding was distinct city of St. Louis and to Kansas City, in my State, asphaltum or with the Senator in charge of the bill that I should have a bear­ gilsonite paving at about one-third what it costs the Commissioners ing on the paragraph before action by the Senate. of the District of Columbia and the United States Government to Mr. PLATT of Connecticut. I wish the Senator from Penn­ pave with asphaltum the streets of this city. sylvania would let the action of the Senate stand until the Senator I do not know why this duty is put upon the article now and from Iowa returns, which will be in a few minutes. why the article is taken off the free list. It seems to me that Mr. QUAY. I enter a motion to reconsider and will let it with the immense natural deposits in the United States we are stand. able to compete with any country in the world and absolutely to Mr. PETTIGREW. I move to amend the paragraph by ad­ control this very necessary article for municipal purposes. The ding: gilsonite found in the Uncompahgre Reservation is used ~ot only Fuller's earth, unwrought or unmaimfactured, $2 per ton. for paving, but ro:)fing and other purposes, and why this large I offer that to follow the amendment already agreed to pro­ duty should be imposed, unless it be, as I suppose will be said, as posed by the Senator from Connecticut. an attack upon the English company who own the l~e in t~e The PRESIDING OFFICER. The amendment proposed by West Indies, I am unable to see. The result when th1s duty 1s the Senator from South Dakota will be stated. imposed is that the article of asphaltum will be made higher to The SECRETARY. It is proposed to add to the words already every municipality in the United States that wants to use it upon adopted: its streets, and it is hardly necessary to say that in a great many noncommercial cities it is the very best article that can be used Fuller's earth, unwrought or unmanufactured, $2 per ton. for the purpose. Mr. PETTIGREW. Mr. President, up to two years ago all the Mr. CHILTON. Mr. President, there is a further observation fuller's earth used in this country was imported from England. which might be made in regard to the asphaltum business. I They had a complete monopoly of the American market. Some of believe the California asphalt, which is noted all over the world, it was imported unmanufactured and somegroundandpreparedfor contains a much larger quantity of bitumen than the T1inidad use. The price was from nineteen to thirty dollars per ton. About asphalt, and has an advantage in the market on that account. It three years ago fuller's earth was discovered in Georgia and Flor­ will make many more square yards of pavement to the ton than ida and Virginia and South Dakota. We began the production of Trinidad asphaltum. It seems to me this is a case where the this article. Last year we produced in this country about 20,000 American industry is clearly able to stand alone and compete tons. We consume about 50,000 tons, and nearly all of that which with all the world. It needs no protection. Asphaltum is not we produced and placed upon the market last year came from only used in city pavements, but it is .used in liv~ry stabl.es and Florida, where the deposits are unlimited in extent and inexhaust­ other lines of business, and the tax rmposed will constitute a ible. The veins are 8 feet thick-from 4 to 8 feet-and the clay is charge on a large number of American people. of superior quality, fully equal to the best imported from Great The question of transportation largely controls the market for Britain. One firm is producing 1,000 tons a month at the present asphaltum. The California product is largely shut out of New time. York and extreme Eastern cities on account of the high rates of We can supply the American market, but the rate of transpor­ transportation. It ~s prac:tically imp_o~sible ~o tr~nspo~t ~t to N e~ tation on fuller's earth from Florida to New York is about '·5 per York so as to come m active compet1t10n With the ll.J.mdad arb­ ton, while often, for the purpose of getting loads for ballast, vessels ela. Therefore it seems, sir, that in so far as transportation does will carry clay from England for $1 per ton laid down in New not offer difficulties to the American production of asphaltum it York. Therefore the duty on the raw earth should be increased is now completely on its feet. The imposition of this tariff will so as to protect the production of the article by the American pro­ add a tax for asphaltum in the Eastern section of the United ducer. States which the Western asphaltum can not reach on account of This earth is used for various purposes. It was formerly used the enormous transportation charges to which I have referred. for cleansing furs and clothes. It is now used for clarifying oil, I know, as has been frequently said, that it is useless to offer any and the market is constantly increasing and widening. The de­ 1·easons against proposed amendments, but it occurs to me tJ;tat posit in my own State contains several million tons. The vein is this is an unnece sary charge upon the taxpayers of a large sectiOn 8 feet in thickness and covers a thousand acres of ground. It is of this country and can do no possible good. .The product is <;me very pure and of excellent quality, but owing to the difference in which can not be locally developed by a protective duty, and bemg the freight_rates and the difference in the cost of labor we can not so largely used in the work of municipalities, it is not an appro­ compete without this protection. priate subject for a revenue duty. I notice some rather remarkable thing in connection with this Mr. PLATT of Connecticut. If we listened to and heeded the paragraph. In the first place, the House provided that the duty arguments which are made whenever an item in this bill is under on unwrought and unmanufactured clays or earths should be $1 cons1deration, the Government would have no revenue whatever, per ton, and on wrought or manufactured, not specially provided for every item is objected to. Now, this, as I understand it, is for in this bill, $2 per ton. This included fuller's earth. There is purely a revenue duty, and the necessity for revenue seems to be a little factory in Connecticut, and Connecticut is represented on very apparent. . . . . the committee, and therefore the committee bring in an amend­ With reference to rncreasmg the cost of street paVIng, I thmk ment to. increase the rate on wrought or manufactured fuller's myself there is profit enough in ~he asphaltum busine~s b~~ween earth to $3 a ton, but they leave the unwrought or unmanufac­ the lake at Trinidad and the laymg of the pavement m Cities so tured article still at the same rate imposed by the House. that that pavement can be afforded at the same rate at which it My amendment proposes to increase the duty on nnwrought or is now laid. unmanufactured earth the same as we have increased it on the I desire to amend the paragraph further by adding the provision wrought or manufactured earth. No attention is paid to the hich I send to the desk. interest of the producer of thearticle in this country, but the little The PRESIDING OFFICER (Mr. BuRROWSinthechair). The mill that grinds English stock must be specially taken care of, amendment proposed by the Senator from Connecticut will be because it is represented on the committee. Therefore, without stated. any opposition whatever, the duty is increased to $3 on the ground The SECRETARY. On page 17, after line 23, it is proposed to add and prepared earth. Nothing is done for the producer, nothing to paragraph t!8 the following: is done for the men who discovered the article and reduced the Fuller's earth, wrought or manufactured, $3 per ton. plice to the consumer from $19- "30 per ton down to S12 a ton. This little machlne was running in Connecticut when they charged Mr. JONES of Arkansas. What is the rate now? 830 a i;on for the article. It did not reduce the price to the Amer­ Mr. PLATT of Connecticut. Two dollars. ican consumer one penny, but when Americans discovered this ar­ The PRESIDING OFFICER. The question is on agreeing· to ticle in Flolida and Georgia, and Virginia and South Dakota, and the amendment propose!] 1)y the Senator from Connecticut. began to put it upon the market, the price went down. Who is The amendment was agreed to. rewarded? The mill that kept up the price. The duty is increased Mr. QUAY. I have just entered the Chamber, and I find the for them to $3 a ton, because they are represented on the commit­ Senate occupied with paragraph 88, in which I am very much tee. I wonder if there is an institution at any cro roads in Con­ interested, and on which I had understood the committee in necticut that is n ot thoroughly taken care of by this bill. If thero 1897. ·CONGRESSIONAL RECORD-SENATE. 2041 is one that is not taken care of, it is an oversight. There is no admit the charge as to whether I am a protectionist or not. I question about that. believe th<:l.t the nation should do its own work. I believe that a Furthermore, the committee brought in an amendment to in- varied industry is necessary to the development of the best traits crease the duty on china clay from $2 to $3 per ton. That is of character and the highest civilization among any people. I found in Pennsylvania and New Jersey. If an article is dis- believe that it is the nation's duty to encourage that varied indus­ covered anywhere outside of the excessively protected States, try which will enable every talent among its people to be devel­ who have llad the special favor of the Government in every re- oped to its fullest extent. spect for years, it can shift for itself; but if it is found in a State Because I refused to vote for 185 per cent duty on woolen goods, where every industry is protected 4 feet deep, then it gets addi- the Senator from Connecticut stands up here to say that I am a tiona! favors. protectionist only in spots. Because I refused to vote for 700 per For whosoever hath, to him shall be given, and he shall have more abun- cent duty on the lower grades of silk, used by the poor people of - dance: but whosoever hath not, from him shall be taken away even that t~is country, the Senator from Connecticut says I am. a protec- he hath. tionist only in spots. The committee bring in the amendment for $3 a ton on china Well, if to be a protectionist all over a man must vote for 700 clay because, I suppose, the foreign importer can land it uy water per cent duty on the cheaper articles and for 10 per cent on the in Pennsylvania, or is it because the Senator from Pennsylvania higher priced articles that are used by the rich, I am only a pro­ fltir. QUA.Y] has 4 bushels of manuscript which he has told the tectionist in spots. If to be a protectionist I must vote for an committee he would bring in and read for a week, and has thereby extra duty on sug.fl.l' purely and absolutely in the interest of the obtained these concessions? The rest of us had better get 4 bushels most corrupt and demoralizing trust ever organized in this coun- · of manuscript. try, at the behest and dictation of a political caucus, then I am a .Mr. QUAY. The Senator from Pennsylvania must disclaim protectionist only in spots. If I must vote for every trust, if I any intention to bulldoze this commiUee. must vote for ev~ry combination, vote special privileges to the Mr. PETTIGREW. The Senator from Pennsylvania says he few, high rates of duty, differential duty. in order that they may must disclaim any intention to bulldoze this committee. It is be encouraged in their raids upon the people of this counti·y, then, un.nec~ sary, doubtless. He had to bulldoze the committee that 1\fr. President, I am not a protectionist all over. , prepared the last tariff bill, and his manuscript is saved until Is the Republican party a protection party? Why, Mr. Presi- when we get into power. dent, the issue of protection has departed from our -politics. Fuller's earth in the State of South Dakota, for instance, is dug When New England made her trade with the cotton Democrats from beds not very deep under ground. It is then ground into of the South for the purpose of putting a duty on cotton, thinking powder. and dried either in the sun or dried by artificial means, to br~ak up the solid South, she abandoned the only principle, the and then it is ground and screened and prepared for use. We only Issue, that gave the party character, and it has left you make the duty $1 on the unwrought or unmanufactured, although ~othing with which to fight the next campaign. All the Repub­ the freight rate from the beds of clay in the United States to New hcan party stands for to-day, inasmuch as protection is no longer York is more than twice what it is from the beds of clay in Eno-- an issue and the South is broken up, is as the champion of the land, and then we impose a duty of 82 more for the benefit of the trusts and _the gold standard, as the special representative of the little machine in Connecticut. · '- classes agamst the masses. All they have to do after the earth comes in is to dry it, grind ~ Mr. PASCO. Some very valuable deposits of this fuller's earth it, and screen it to make it fit for use, and yet they are to have 53 are found in the State which I have the honor in part to repre­ a ton. They will not grind one single pound of American clay, sent, and they have been developed and are being developed to a and they do not propose to. They want the duty of 53 so that very considerable extent. The most valuable dPposits are in Gads: they can grind English clay, although the quantity in this coun- den County, near the town of Quincy, and I have received some ~ry is unlimited. If they a.re so a~ous to help the laboring man, ~ommuni?ations from the general manager of the company that It seems to me they ought to be willmg to employ American clay, 1s developmg them that I shall ask to have read at the desk. This -... mined by American miners, and then pay the freight, instead of is the first one, which I ask the Secretary to read. paying it to British ships, to American railroads, if we have any The Secretary read as follows: . American railroads. Senators talk about wanting to encourage QuiNcY, FLA., January !t5, 1897. our own commerce, and yet whenever a single thin!!' in this bill D~R Srn: As you ~re pr~bably aware, we have been mining and shipping ~ fuller s e_arth from thiS sectiOn for the past two years, and our shipments can b e secured cheaper abroad for the use of the Eastern manu- from Qumcy for the year 1896 represented 6,000 tons. Our Florida product facturers, they are anxious to get it in foreign bottoms and pay is 1~sed in competiti~n. with the finest ~ades of English fuller's earth, and the freight to foreign shipowners. owmg to the competitiOn of the American product the shipper3 of English I Someti'mes thl.nk that the only real poli'tical pri'ncl'ple whi"ch fuller·sNearly allearth of ourhave consumers reduced theirreport prices that very as sattRfactory materially forresults the canpast be year. ob· agitates the representatives of New England on this floor is that tained with the American article as with the imported, but owing to the of enlightened self-interest. I know it is enlightened, because it is very low ocean freight rates and the desire on the part of the English peo- al ways in the interest of New England, and every body else can go. a!.1~:1~eti'in~ri!~-;:oelu~~no~tflf ~h~ ~~~.~~~e by reducing the price and I know, :Mr. President, it is no use to contend against the com- Under the :McKinley law the rate on clay imported was $3 per ton on the mittee. I understand full well the aiTangement and understand- ground and prepared article and ~'1.50 on the crude. Under the Wilson 'hill · d I k f th h" · the rates were reduced to ~on the finished material and Sl on the crude mg, an now, o course, at t IS Increase will be given to the The _fuller's earth industry in ~his State prorni~;es to become very important: clay of Pennsylvania and New Jersey, and this increase will be and m order to protect and build up the mdustry we are anxious to have the given to the mill that grinds the fuller's earth in Connecticut. rates restored as they were under the McKinley law. This would certainly I propose to have the people understand J·ust what is going on. I aid in buildit1g up the industry in Florida. and as the discovery of fuller's earth il!- the United States is so receut we feel fully justified in asking for propose to have it understood what this bill is gotten up for and protectiOn. in whose interest it is manipulated, and that is all I expect to ac- I wc;mld also say th~t contracts c~n be made with the English people to ship compli<~h. · , fullers earth from Liverpool to Chicago and other Western points at a much 0 1 Mr. '-PLATT of Connecticut. 1\Ir. President, it is true that the ~ o';~i~~a;ha~~g~dew: ~~~AtEtZ:t1~~~i~:;~~wn country' owing to the low pro­ business of grinding fuller's earth is carried on in Connecticut. I would ask you to give this matter your consideration, and if consistent It is also true, I suppose, that there has been a bed of fuller's with your views, extend your aid in supporting a new Florida industry. earth found in Florida. What I understand the Senator fi·om With best ·respects, I am, yours, veryWM. truly_z. M. vORRY, General Manager. South Dakota wants-who is not a protectionist except in spots Ron. SAMUEL PAsco, · · when he has some particular thing that he desires to have pro~ · Senate Chamber, Washington, D. a. tected-is that the Connecticut mill shall be obliged to buy the Mr. PASCO. I ask also that extracts from the faliowing letter fuller's earth, which it is said has been found in Dakota, in its raw may be read at the desk as marked. . state, and tran~port it by rail to Connecticut and grind it there, The Secretary read as follows: and then send It back to Dakota for use, or as far back as it can QmNcY. FLA., .April17, 1897. find purchasers. Now, r do not think there is very much incon- DEAR. SIR: As you are doubtless aware, fuller's earth of the finest quality sistency in that. was discovered in Florida a litt;le over two years ago, and 1 am ~eneral manager for a firm that will ship over 12,000 tons out of the State this year . Mr. PETTIGREW. Mr. President, the deposit of fuller's earth In order to introduce fuller's earth to the trade suc('essfully, we must first m South Dakota would I!_Ot go to Connecticut to be ·ground, nor overcome a ~eep-seated I£rejudice that exists on th'3 part of consumers in to the Eastern market. lt would go, however, into the mai·ket." favor of t~e rmpm:ted _fu er's earth, and the int_roducf:ion and general use of " the 4mencan, article 1s surrounded ~Y some difficulttes. The importers of of the. West, to Kans~s City, where it would be used to clarify English fullers earth have been working strenuously to prevent an increase lard Oil, cotton-seed 011, etc. But the clays of Florida can come on the duty, and in order to shut out American competition have formed a into th_ e New York market if you give them a chance to do l·t, an·, combination, and have been steadily reducing prices for the hst two years. u The freight ra:tes on Florida fuller's earth to New York is $-i per ton, while ~here 1S no reason why they should not be allowed to come. There the rate from Liverpool to New York and other American ports has been IS no argument, except an effort to create a prejudice in the m ind D?ade as low as 2 per ton, and in many ca<>es the material has even been car- f b d h th C t• 'll rted as ba:llast at a nominal price. English fuller's earth has been known ? some o y, W .Y . e onnec lCU~ ml s shoul~ not buy the Flor- commerCI.ally for the past three hundrerl years, and producers and shippers 1da earth and grmd 1t, and be o bhged to buy It or else go unpro- of the artiCle. have amal¥'ed fortunes in the business. All of this competition tected themselves. must be p1et m orde~t.o mtruduce successsully the Florida product. and where F tb M p · d t I d t k h t I the Florida _earth bas been given a fair trial tht> consumers admit that it 1s ur er, r. res1 e? , o no . no~ t a care to disclaim or fully equal m many branches of the business ~ that which is imported. 2042 CONGRESSIONAL RECORD-SENATE. JUNE 26,

Under the McKinley bill the rates on fuller's earth were fixed at $2 on the prehensions here, especially on the part of the Senato1· from South crude and $3 on the ground and milled article per ton. Later on the Wilson bill reduced these rates to Sl and $2 per ton on the two grades, respectively. Dakota [Mr. PETTIGREW]. The manufacturers of the advanced We have a<>ked that the McKinley rates be restored in order to encourage the article were greatly pleased to find that this crude earth had been 7 consumption of the American product, which even at the time of the passage discovered in the United States. When the business began the of the Wilson bill was an unknown commodity. We understood that the Ways and Means Committee of the House would report favorably on the manufactured article sold at $28. An American firm contra-cted advance in the rates, restoring th~ McKinley figures, but the bill as passed with the producers of the earth abroad and entered npon the busi­ by the House shows no change from the rates provided for in the Wilson bilL ness here of advancing the crude earth. It went on for about three years, and then the British company declined to renew and The* discovery* of fuller's *earth in this * country* caused a *great deal *of un- easiness on the part of those engaged in mining fuller's earth in England, and continue it any further. The .American company was obliged to as soon as the American article was plaeed upon the market the price of the resort to other parties not so convenient, I think, in England, to imported article was reduced, and the figures have been lowered at frequent get the earth and continue the business. Then they found to their intervals sine~ we have been shipping the Florida product. Therefore the .great pleasure that the crude article had been discovered in South advance i:r.t'the rate of $1 per ton would still give the consumers a very marked advantage as compared with the prices paid in years gone by, and they would Dakota and in Florida, which to some extent emancipated them have no ground on which to base a complaint. The Florida product has cheap­ from the trammels of the English quarrymen or miners, whatever ened the cost of the imported article to all consumers; but the foreigners have you may call them. So· there should be no controver3y between the advantage of the freight rates, years of experience in the business, and with large accumulations of wealth are trying to drown out this new indus­ the Senator and me on that point. try in our own country. He is altogether mistaken when he says that Connecticut and I think our demands are reasonable, and trust yon will use your iniluence our New England people are selfish about this matter, that if we in behalf of the American fuller's earth. Yours, very truly, · get the duty we want we do not care about anybody else. That WM. M. CORRY, General .Manager. is a most tremendous mistake. If anybody on earth has studied HoD.. SAMUEL PASCO, the tariff it is the New England manufacturers, and they know Senate Oharnbe1·, Washington, D. C. that it can not be confined to any one locality. I repeat what I Mr. PASCO. Mr. President, many of the people who compose have before stated, that in my experience of now sixteen years this company live in other States. Some of them have moved into here aud some years in the other House besides I have had but Florida. They have brought there a large amount of capital, and one letter from Connecticut asking me to advocate free wool, and they have developed this and other industries since they came yet you know we are largely engaged in the higher classes of there woolen manufacture there, and that letter was from what is some­ I have thought it proper that they should be heard upon this times called a Bourbon Democrat who was engaged in the woolen subject. For this reason I have had these letters read, so that business. He wanted to have wool free. He is not the ideal New they may be considered by the Senate and by the committee. I Englander that the Senator sets forth. He is tbe exception, t.he have felt that my duty toward these gentlemen would be dis­ sole exception, I might say, in my dealing of sixteen years with -charged by bringing this matter to the attention of the commit­ the subject. tee, and I have done so; but the committee have not been con­ We know very well that a tariff can not be made up in that vinced. that the duty upon fuller's earth in its unwmught or way. Nobody knows it better. The New "England men hasten unmanufactured state should be increased. This company is not to do whatever is generous and just-I leave ont the word gen­ directly interested in the manufactured article, but the committee erous-they hasten to do what is just by our friends all over the has seen fit to favor a much higher duty upon the article in its country. We desire, in the substantial language of the Demo­ wrought state, and propose to raise that, but leave the duty on cratic platform of 1884 and 1888, to have the difference in wages the unmanufactured article where it was under the Wilson Act. between the United States and other -countries considered in all So far as I am personally concerned, I have been disposed to adjustments of the tariff. That is first-rate Republican doctrine, accept the action of my party friends when they made the Wilson and that we aim at in this measure. I want to have all the Act, and I have not asked, aud do not ask, for any increase~ but I American labor that is concerned in this business have a fair do not think that the committee should raise the duty upon the chance at protection; and we rejoice in t.be discovery of fuller's manufactured product and still leave the duty on the unwrought earth in this country by reason of the fact that it emancipates us article where it is left in the Wilson Act. from those men abroad. I wish to state now, so that there-may be no misunderstanding Mr. PASCO. I suggest to the S~nator from Connecticut that '8oS to my -own position, that I shall not vote for this increase, and I there is a very simple way of satisfying these gentlemen who are do not myself ask for any increase. The responsibility must rest interested in these deposits in Florida that they are going to be with the committee, who have all the facts before them and the treated with exactly the same degree of fairness that the citizens reasons urged by my correspondents for a higher rate of duty on of his own State are treated, and that is by persuading his col­ the unwrought article. league, who is a member of the committee which has charge of Mr. HOAR. I should like to inquire of the Senator what, in his the bill, and who has an influential voice in their deliberations, jud~ment, should the duty on the crude article be? to raise the duty upon the unwrought material as well as upon Mr. PASCO. The duty on the unmanufactured article was the manufactured article. placed in the Wilson Act at $1 a ton, exactly where it is placed in But when we see the duty upon the manufactured article largely tlte present bill. So that I presume the Senator from Massachu­ raised, while the duty upon the unmanufactured article is left setts and the committee agree that the Wilson law was correct in where it was before, the people will not be satisfied that they are that respect. These gentlemen whose letters have been read dif­ treated with that exact fairness and justice that the Senator from fer with the committee and they differ with the committee that Connecticut says he is disposed to treat the people of all sections made np the Wilson Act, and they ask for the higher rate, the of the Union. same rate that is moved by the Senator from South Dakota. That But this seems to be another case similar to the cotton ties, of proposition I have presented to the committee. They still adhere the bagging and other articles used in my section of the country to the idea that the Wilson Act put a sufficiently high duty upon which have a duty imposed upon them, while similar articles nnwronght fuller's earth, and they have left it whe1·e the Wilson used by the Western farmers are not subjected to these higll rates. Act did leave it. But when you come to the manufactured article, Mr. HAWLEY. Perhaps it is a case like that of Be semer steel. which is manufactured in a Northern State, the committee has The pdce went down from $150 a ton to $20 or 21. Perhaps it is seen fit to put on a much hi~er rate of duty. a case like tin plate, which, it was said, could not be manufactured I think myself if the committee had been disposed to treat the in this country, but it is successfully being done nuder the influ­ article wit}l entire fairness they would have carried out the ence of the protective doctrine. wishes of these people who are interested in this matter in my I never heard anything said-nothing was ever said to me-about State by increasing the duty on the raw material also; but I have putting a duty of ·2 upon this crude earth. I know that friends not made that motion, and I do not expect to. I have felt that my of mine who are engaged in the business wanted the duty on the · duty in tbe matter was discharged by bringing the views of these manufactured earth to be $3, that it might compensate for the gentlemen to the attention of the committee and of the Senate, difference between the labor of the men who get 60 or 75 cents and I know very well that if I should make a motion myself to over there, while the same classes of men, comparatively, get a increase the duty on the un wrought article it would have no effect. dollar and a half or two dollars here. I understand that the duty is fixed and settled by the action of the I only say that if the Committee on Finance can adjust this committee and the action of the Republican caucus. but I deem it thing more fairly. if they think it would be better for American proper to present the views of these gentlemen and spread them labor and American capital to make any change in the bill, I shall upon the record, so that they may have a hearing, and the friends be perfectly willing to consent to it. But as for the influence over ()f the bill can act as they deem best upon their request. They my colleague which the Senator refers to, I have not found it avail will understand that the reason why the relief which they desire much during the consideration of the bill. I think that be stand§ has not been granted to them is because the committee which so erect that sometimes, to show his independence, he does not do framed the bill and those who support them politically do not think exactly what I want. But I find no fault with him, as a general the higher rate of duty should be granted, and it is only through rule, about anything. He has done in the bill exactly what he them that favorable action can be secure

• • 1897. CONGRESSIONAL RECORD-SENATE. 2043

Mr. ALLISON. I ask tnat paragraph 88 with all the pending The PRESIDING OFFICER. The Chair understands that the amendments may be passed over. new paragraph 189, originally proposed by the committee as a The PRESIDING OFFICER. The Senator from Iowa asks substitute for paragraph 189 of the bill as it came from the House, that paragraph 88 with the pending amendments may be passed is int6nded to be disagreed to. over. Mr. ALLISON. Yes, that is intended to be disagreed to. 1\:lr. ALLEN. Is that the paragraph under discussion? The PRESIDING OFFICER. That will be the order, in the The PRESIDING OFFICER. It is. absence of objection. Mr. ALLEN. To be passed over until when? The Secretary proceeded to read paragraph 109, which the Com­ The PRESIDING OFFICER. To be passed over for the day. mittee on Finance propose to amend, in line 8, after the word If there be no objection, it will be so ordered. "painted," by striking out" window glass and stained or painted;" Mr. ALLISON. If it suits the convenience of Senators, I ask in line 9, after the word "windows," hy im;erting "or parts that we now go to page 59. thereof;" and in line 12, after the word "manufactures," by in­ The PRESIDING OFFICER. The amendment which was serting "of glass or paste, or;" so as to make the paragraph read: passed over on page 59 will be stated. 109. Stained or painted glass windows, or J?arts thereof, mirrors, not ex­ The SECRETARY. The Committee on Finance propose to strike ceeding in size H4 square inches, with or without frames or cases, and all out, beginning in line 6, on page 59, paragraph 189, as follows~ glass or manufactures of glass or paste, or of which glass or paste is the com­ ponent material of chief value, not specially provided for in this act, 45 per 189. Watch movements having not more than 7 jewels. 35 cents ea{)h; if cent ad valorem. having more than 7 jewels and not more than 11 jewels, 50 cents each; if hav­ ing more than 11 jewels and not more than 15 jewels, 75 cents each; if having Mr. ALLISON. Wea1·enotprepared to d~l with these matters more than 15 jewels and not more t.ban 17 jewels, $L25 each; if having more in this and the succeeding paragraphs, it having been the e.x:pecta-. than 17 jewels, $3 each. and in admtion thereto, on all the foregoing, 25 p er tion of the committ-ee that the leather schedule would have been cent ad valorem; watches, watch cases, and parts of watches, including watch fining The SECRETARY. In paragraph 189, line 14, page 59, after the process. words" ad valorem,"itisproposed tostrikeouttheword "watches" Standards-As to color, the so-called "'Dutch standards" are used. .A. and the comma. certain firm in Holland each year prepares with great care, and seals in whit e glass bottles, fifteen samples of raw sugar, numbered from No.6, in The amendment was agreed to. color a dark brown, and ranging to No. 20. in color almost white . .l\:1r. ALLISON. In line 18 I move to strike out all after the These samples serve as standards for the ensuing twelve months, when words "ad valorem " down to and including the words "ad they are renewed. Appraisers are provided with sets of these samples, and the grading of the raw sugar is effected by placing a sample of the latter valorem," in line 20. beside the former and " matching." It will be seen that the result will de­ The PRESIDING OFFICER. The amendment proposed by pend upon individual expertness. the Senator from Iowa will be stated. A s to tlte polariscope test.-If a ray of polarized white light be examined after passing through a solution of crystallizable sugar, it will be found to The SECRETARY. In line 18, after the words "ad valorem," it is have become colored. If the polarizing apparatus be rotated to the right, a proposed to strike out the semicolon and the words" all jewels for series of changes of color will ensue in the asc.ending order of the Newton use jn the manufacture of watches or clocks, 15 per cent ad scale, viz. from red through orange., etc., to violet. If a noncrystallizable sugar solution be substituted, similar phenomena valorem." vrilJ. be observed. But w1th this difference. to produoo the same sequence of The amendment was agreed to. · changes of color the rotation must be to the left. Hence crysta. llizable sugars The PRESIDING OFFICER. If there be no obj€ction, the are classified by the chemist as dextrogyrate, or right-handed, and non· m·ystallizable sugars as levo~rate, or left-handed. paragraph as amended will be considered as agreed to. If, now, a solution cont aining both crystallizable and noncrystall.izable Mr. VEST. Let us first hear it r€ad, 1\:lr. President. sugar be substituted. the direction and degree of rotation required to pro­ The PRESIDING OFFICER. The Secretary will read the duce a particular result will be determined by the relative proportion of the paragraph as amended. sugars present in the solution. Advantage has been taken of the principle involved in the above facts, and The Secretary read as follows: a most perfect optical instrument, kri.own as the saccharometer, or, more com­ 189. Watch movements, whether imported in cases or not, if having not monly, simply as a polariscope, has been devised and is in universal usa for more than 7 jewels, 35 cents each; if having mor~:~ than 7 jewels and not more the testing and grading of sugar. than 11 jewels. 50 cent s each; if having more than 11 jewels and not more In this instrument when the index is at 0 degree and nothing intercepting than 15 jewels, 75 cents each; if having more than 15 jewels and not more than ~he light.• the field o_f view, which is circular, is of a uniform gray tint. Upon 17 jewels, 1.25 each; if having more than 17 jewels, sa each, and in adider the raw sugar as having been received at there­ finery after succe sfully passing t·he appraiser as a low-grade sugar. By the of Montana, vice JohnS. M. Neill, removed. older methods the sugar was at once melted, bag filtered, char-filtered, boiled, PROMOTIO~ IN THE AR!lY, dried. and barreled. .,Not so to-day. This raw sugar is first placed in a cen­ trifugal, a stream of water turned upon it, washing away the film of sticky, Geneml offi,ce1·. dark-colored sirup, and behold the htgh-grade sugar concealed within. · To give an idea of the trifling expense attendant upon the washing of Col Caleb Henry Carlton, Eighth Cavalry, to be brigadier·gen· sugar, it may be stated that 10 men at 10 per week can wash in six days eral, vice Mills, retired from active service. nearly 10,000,000 pounds of sugar. This is about 1 cent per 1,000 pounds. ThiS fraud was first practiced with German beet sugar, and a specific in­ ASSISTANT ENGINEERS IN THE NAVY, stance will best illustrate the growth and present extent. The following-named naval cadets, graduates of the Naval The Standard Refinery of outh Boston has a capacity of 800 to l,fKX> tons Academy, to be assistant engineers in the Navy, from the 1st dq of sugar per day. Four, now six, years ago (1 91> six small centrifugals were devoted to washing 75 to 100 tons beet sugar per day. This plant was at of July, 1897, to fill vacancies ex"sting in that grade, namely: once increased 50 per cent, which was to the extent of space then available. Thomas M. Dick, of South Carolina. Shortly after the construction of a washhouse was undertaken. This bouse Charles K. Mallory, of Tennessee. if 50 feet wide, 70 feet long, and comprises six stories and a melting pit. To-day practically all the sugar received is washed. Newton Mansfield, of Ohio. James P. Morton, of Missouri. Mr. CHILTON. I offer an amendment to the pending bill, Daniel.M:. Garrison, of New Jersey. which I ask to have read and printed in the RECORD. Franklin D. Karns, of Ohio. The PRESIDING OFFICER. The amendment intended to be Frederick N. Freeman, of Indiana. proposed by the Senator from Texas will be stated. John F. Marshall, jr., of Texas. 1897. ·CONGRESSIONAL RECORD-SENATE. 2045

Darwin R. Merritt, of Iowa. COMMISSIONER OF IMMIGRATION. Ernest F. Eckhardt, of Wisconsin. George B. Billings, of Massachusetts, to be commissioner of im· Edward H. Dunn, of Connecticut. migration for the port of Boston, in the State of Massachusetts. ENSIGNS IN THE NAVY. DEPUTY AUDITORS. The followin0'-named0 naval cadets, graduates of the N avaJ George W. Esterly, of Minnesota, to be deputy auditor for the Academy, to be ensigns in the Navy, from the 1st day of July, State and other Departments. 1897 to fill vacancies existing in that grade, namely: Edward McKitterick, of Iowa, to be deputy auditor for the F;ank H. Brumby, of Georgia. Treasury Department. Frank P. Baldwin, of New Jersey. INDIAN INSPECTOR. William C. Davidson, of South Dakota. Harris Laning, of illinois. Charles F. Nesler, of Newark, N. J., to be an Indian inspector. David W. Todd, of CaHfornia. INDIAN AGENT. John V. Klemann, of New York. Henry J. Cleveland, of Arizola, Ariz., to be agent for the Indians William R. Cushman, of New York. r of the Pima Agency in Arizona. • Henry V. Butler, jr., of New York. Walter R. Gherardi, at large. MARSHAL. John R. Monaghan, of Washington. James M. Shoup, of Idaho, to be marshal of the United States James J. Raby, of Michigan. for the District of Alaska. James E. Walker, of North Carolina. POSTMASTERS. I William H. Standley, of California. Thomas L. Dunham, to be postmaster at Lestershire, in the Arthur T. Chester, at large. county of Broome and State of New York. Cassius B. Barnes, of Oklahoma. Henry A. Pease, to be postmaster at EdgartowJ?-, in the county Joseph C. Bret;kinridge, of Kentucky. of Dulres and State of Massachusetts. Albion J. Wadhams. of New York. Joshua F. Ensor, to be postmaster at Columbia, in the county Kenneth M. Bennett, of New Jersey. of Richland and State of South Ca1~lina. Edward H. Watson, of Kentucky. Charles L. Porter, to be postmaster at Plattsburg, in the county Worth Bagley, of North Carolina. of Clinton and State of Missouri. Orlo S. Knepper, of Pennsylvania. James W. Mills, to be postmaster at Versailles, in the county of Michael J. McCormack, of Michigan. Morgan and State of Missouri. Rufus Z. Johnston, jr., of North Carolina. SECOND LIEUTENANTS IN THE MARINE CORPS. The following-named naval cadets, graduates of the Naval SENATE. Academy to be second lieutenants in the Marine Corps, from the 1st day ~f July, 1897, to fill vacancies existing in that grade, MONDAY, June 28, 1897. namely: The Senate met at 11 o'clock a. m. Philip M. Bannon, of Maryland. Prayer by Rev. HUGH JoHNSTON, D. D., of the city of Wash· Newt H. Hall, of Texas. ington. POSTMASTERS. The Secretary proceeded to read the Journal of the proceedings W. W. James, to be postmaster at Monterey, in the county of of Saturday last, when, on motion of Mr. QUAY, and by unanimous Monterey and State of California, in the place of Fannie Ingram, consent, the further reading was dispensed with. resigned. • . . William A. Price, to be postmaster at Delaware City, m the LAWS OF ARIZONA. county of Newcastle and State of Delaware, the appointment of_ a The VICE-PRESIDENT laid before the Senate a communication postmaster for the said office haVIng, by law, become vested m from the secretary of the Territory of Arizona, transmitting copies the President on and after July 1, 1897. of the Supplement of the Revised Statutes of Arizona for 1887; Lenny C. Gilbert, to be postmaster at Oakland, in the county of which, with the accompanying documents, wa.s referred to the Coles and State of Illinoi~. in the place of William Hunt, resigned. Committee on Territmies. Theodore Bailey, to be postmaster at Por~l a~d, in the .county of PETITIONS AND MEMORIALS. Jay and State of Indiana, in the place of W1lbam W. T1mmonds, Mr. HARRIS of Kansas presented· a petition of 11 citizens of resigned. . Graham County, Kans., praying for the enactment of legislation William A. Stevens, to be postmaster at Columbus, m the granting the Fort Hays Military Reservation to the State of county of Bartholomew and State of Indiana, in the place of Kansas for the purpose of establishing thereon a western branch Thomas A. Rush. resigned. of the Agricultural College and Normal School; which was re­ Elia.." E. Wesseler, to be postmaster at Rockport, in the cou~ty ferred to the Committee on Public Lands. of Spencer and State of Indiana, in the place of Charles L1eb, .Mr. BERRY presented a memorial of George R.M. Browne and resigned. 125 other citizens of Arkansas, remonstrating against the enact­ Edward Hall, to be postmaster at Havre de Grace, in the county ment of legislation intended to destroy the present system of ticket of Harford and State of Maryland, in the place of Edward Hall, l>rokerage; which was referred to the Committee on Interstate whose commission expired February ~6, 18!J 6. . Commerce. Francis Norwood, to be postmaster at Beverly, m the county of Mr. TELLER presented the }Demorial of R. B. De Masters and Essex and State of Massachusetts, in the })lace of Josiah Wood­ 13 ot.b.er citizens of Colorado, remonstrating against the enact­ bury, removed. ment of legislation intended to destroy the present system of C. E. Gross, to be postmaster at Boonville, in the county of ticket brokerage; which was referred to the Committee on Inter­ Cooper and State of Missouri, in the place of John F·. Rogers, state Commerce. resigned. 1\Ir. FORAKER presented the memorial of William Lawrence Theodore E. McCrary, to be postmaster at _Lex~ngton, in the and 530 other citizens of Ohio, remonstrating against the enact­ county of Davidson and State of North Carohna, m the place of ment of legislation intended to destroy the present system of Lewis C. Hanes, removed. ticket brokerage; which was refen-ea to the Committee on Inter­ A. S. Ellingson, to be postmaster at Northwood, in the county of state Commerce. Grand Forks and State of North Dakota, the appointment of a Mr. CARTER presented a -petition of 24 citizens of Castle, postmaster for the said office having, by law, become vested in :Mont., praying for the early passage of the pending tariff bill; the President on and after October 1, 1896, John F. Hogan, ap­ which was ordered to lie on the table. pointed by the President and by him nominated to the Senate, 1\ir. TURPIE presented a memorial of Local Union No. 77, Na­ not having been confirmed. . . . tional Union of the United Brewery Workmen. of Indianapolis, S. W. Willey, to be postmaster at Hmton, m the county of Ind., remonstrating against the proposed increase of the tax on Summers and State of West Virginia, in the place of George W. beer; which was ordered to lie on the table. Warren, resigned. He also presented the memorial of G. W. H. Kemper, ex-presi­ dent of the Indiana State Medical Society, and sundry other citi­ CONFIRMATIONS. zens of Indiana, remonstrating against the passage of Senate bill Executive nominations confirmed by the Senate June 26, 1897. No. 1063, for the further prevention of cruelty to animals in the SURVEYOR-GENERAL. District of Columbia; which was ordered to lie on the table. Edward W. Beattie, of Helena, Mont., to be surveyor-general REPORTS OF COMMITTEES. for Montana. • Mr. BURROWS, from the Committee on Finance, to whom was CONSUL. referred the bill (S. 1311) to refund certain import duties, asked Albert W. Swalm, of Iowa, to be consul of.the United States at to be discharged from its further consideration and that it be r~ Montevideo, Uruguay. ferred to the Committee on Claims; which was agreed to.

I .