1922.1 CONGRESSIONAL RECORD-SENATE. 1100~ .
Jands claimed by each appll.cant, in accordance with the system of P0Sn£ASTERS. United States public-land surveys, be submitted to the Secretary of the Interi-0r within six months from and after the approval of this act : • CALIFORNIA. Provided further, That patents shall issue to such purchasers and shall Irene Beckley, Grimes. inure to the benefit of their heirs, assigns, or devisees to the same extent and as if such purchasers had secured full title from the State Bertha E. Kelley, Palms. of Louisiana through. such pnrchasers: Ana pro'IJ'i
Simmons Stanley Underwood Watson, Ind. domestic sugar has all been disposed of. That happens every Smith Sterling Wadsworth Willis Smoot Sutherland Walsh, l\1ass. year. So long as the refiners have it in their power, through Spencer 'l'ownsend Warren the production of sugar in Cuba by themselves, to lower the Stanfield Trammell Watson, Ga. price of sugar whenever the domestic sugar comes upon the l\lr. LADD. I was requested to announce that the junior market, they are going to do so. By reason of the conditions Senator from Illinois [Mr. McKINLEY] is detained at a hearing following the war they thought that last year was the time 1Jefore the Committee on Agriculture and Forestry. for them to throttle the sugar industry of America. They cut The PRESIDENT pro tempore. Sixty-one Senators have an the price of sugar down to 1.67 cents a pound, knowing -full swered to their names. There is a quorum present. well that that meant absolute financial ruin to every sugar pro Mr. SMOOT obtained the floor. ducer in the United States, following a year of unheard-of l\Ir. HARRISON. Mr. President, I desire to ask unanimous losses in that industry. In my statement to-day I shall name consent to call up the resolution ( S. Res. 334) which I offered the dates and the prices and show just what brought those late Saturday afternoon touching the sugar investigation. conditions about. .u _ Mr. SMOOT. I object. This propaganda had its origin with the refiners. As I The PRESIDENT pro tempore. Objection is made. have said, they have always been enemies of the domestic in Mr. NICHOLSON. Will the Senator from Utah yield for a dustry. Their position is easily understood. Every ton of moment? • beet sugar which is produced means one ton less for them to The PRESIDENT pro tempore. Does the Senator from Utah refine; and the competition of beet sugar prevents their control yield to the Sena tor from Colorado? of prices and markets so long as that product is upon the Mr. SMOOT. I yield, but I do not want it taken out of my market. Recently this propaganda of the refiners bas been taken up time. by another group of men who have been seeking the same end Mr. NICHOLSON. No; it will not be taken out of the Sena but for different reasons. I speak of certain national bankers, tor's time. On Saturday there was a resolution introduced by promoters, and speculators who extended unwarranted credit on the Senator from Mississippi [Mr. HA.BRISON] which contained Cuban sugars at war prices and who took advantage of the certain statements and allegations concerning the sugar sched sugar boom to expand Cuba's production of sugar beyond all ule which is now to be considered by this body. There were reasonable limits and to foist upon the American public tens of very serious charges contained in the article read by the distin millions of dollars of sugar stock, on the glowing promise that guished Senator from Mississippi. Now he has asked for an war-time prices and profits would continue indefinitely. These investigation, and, under the unanimous-consent agreement, he companie: are "war babies," so called, in the fullest sense of is denied the right to have the investigation take place. I for the term. Now these gentlemen ask that we kick our own chil one feel that we should not proceed-- dren out of their own hou e and make way for theirs. Mr. SMOOT. Mr. President, I do not want to have this taken l\Ir. President, in America we can reach and control monopo-' out of my time. lies within our boundaries, but beyond those boundaries we are l\Ir. NICHOLSON. Just a minute. I for one feel that we powerless to do so. It is not necessary to indulge in speculation should not proceed with the consideration of the sugar schedule .or in theory to establish this fact with i·espect to sugar. Recent until the charges contained in the article read by the Senator history tells us what could and doubtles ' would be done in this from Mississippi have been investigated, and I therefore move direction were the domestic industry destroyed. We entered the that the sugar schedule be temporarily laid aside until the inves World War in April, 1917 ; on August 10 of that year the food tigation is made. control act went into effect. The domestic crop of sugar had The PRESIDENT pro tempore. The Chair is constrained to been marketed and the country had to look solely to Cuba for hold that the motion is not in order. its supply. On August 22 in a memorandum to the President l\Jr. SMOOT. We are proceeding under the unanimous-consent calling attention to the difficulties sun-ounding him Mr. Hoover, agreement now, and the motion is not in order. who had been appointed food administrator, said: Mr. NICHOLSON. I am not asking for unanimous consent; Certain Cuban sugar producers, who are out of reach, have combined · I made a motion. to force U.P the prices of the remaining 1917 Cuban crop, prior to the l\Ir. SMOOT. Mr. President, I do not yield for this purpose. new crop m December, and have lifted the prices of raw sugar in New. York from 5 cents a pound to 7! cents, duty paid, on August 16, and Mr. HARRISON. Was the point of order made? this against a three-year pre-war average of 4! cents. The recent a~ The PRESIDENT pro tempore. The Chair holds that the vance of 1.6 cents alone would represent an added tax upon the Ameri motion is not in order at this time. The Senator from Utah can people of over $30,000,000 by the end of December of that year. has the floor, and he wm proceed. Soon after this the producers of sugar in the United State Mr. SMOOT. Mr. President, on account of the limited time and its possessions voluntarily placed the output in the hands of allotted me to speak upon this great question I want now to Mr. Hoover at a price li cents below the price of Cuban sugar. state that I shall decline to be interrupted. I want it so that By reason of this control of this crop, then in the making, and what I have to say may be stated in regular order, and there be<:ause of the ability of the Government to regulate shipping, fore I feel that it is my duty to give notice now that I do the Food Administrator was able to purchase the 1918 Cuban not intend to yield for any question. crop and thereby supply our people with sugar ·at a reasonable I want the Senate and the country to know that the propa figure, so long as this sugar lasted. ganda which has spread from one end of the country to the In 1918 Attorney General Palmer succeeded Mr. Hoover, and other is a continuation of the fight against the domestic sugar while still regulating the price of the domestic product, he re industry by the sugar refiners. They are back of it all, and fused to purchase the 1919 Cuban crop. What happened in since their evidence was given before the Hardwick committee 1920 and the early part of 1921 constitutes one of the most fan of the House of Representatives, in which they all declared tastic episodes of the history of speculation in a food ne<:essity. themselves unalterably opposed to domestic sugar production, A world shortage of sugar was heralded, although none existed, they have made up their minds that they will never be con and raw sugars advanced rapidly. tented until they destroy the production of sugar in the United Mr. President, I remember appearing before the Committee States. Later in my remarks I shall call attention to who they on Agriculture and Forestry of the Senate when the question: are and why they are doing it. of the amount of sugar in the world was under consideration. In passing, I wish to say that five of the sugar refiners I then made the statement that there was no shortage; that of the country to-day control companies in Cuba which pro there was a visible supply of sugar sufficient to· furnish sugar ' duce the greater bulk of all the sugar produced in that island. for the whole world; but we then found the refiners down here Mr. President, if they succeed in their fight, which they before the committee testifying that there was a shortage of nearly did in January of this year, the American people will sugar in the world. They did so for no other reason than to pay dearly for it. If I had the time to-day I should like to advance the price of sugar to the Amer~an people and to insure, present the history of the industry and show to the Senate and unconscionable profits to themselves. . · the country that every time the sugar refiners of the country Raw sugars advanced rapidly until they reached the unheard-of find a short crop of sugar in the United States, their profits price of 23 cents a pound, while in the East, where Cuba sup have been unconscionably large. The extra cost to the Ameri plies the market, granulated sugar sold as high as 35 cents a can consumer directly and indirectly in 1911 was as much pound. During this period the manufacturer of beet granulated as would have been required to build all the beet-sugar fac· sugar was receiving from 10 cents a pound to 12 CE>nts a pound tories in the United States. for his product. It has been estimated by reliable authority Mr. President, what do we see to-day1 I received this morn that this debauch of speculation and manipulation cost the ing tbe American Sugar Bulletin, dated August 4, 1922, in American consumei· some $600 000,000, and, from what I know which it is stated that raw Cubans opened on Thursday at 3i of the situation, it is my opinion that this e timate is con cents. cost and freight. Why is this price& Simply be<:ause the servative. Hl22. CONGRESSIONAL RECORD-SENATE. 11003
Were the speculators in Cuban sugar satisfied with this Group 2. The 0W. J. l\fcCahan Sugar Refining & Molasses-co. stupendous price? Not at all. They saw.no top, and held their have 21 mills, producing 972,800 tons of sugar per year. - ' supplies off the market for still higher prices. In the late Group 3. The National Sugar Refining Co., with 14 mills, spring of 1921 the bubble burst, and Cuba awakened to the fact producing 630,100 tons of sugar in Cuba each year. that, while she was holding back her supply, 800,000 tons of Group 4. The Pennsylvania Sugar Co., with six mills, produc full duty paid sugar from 44 countries had found their way ing 210,135 tons of sugar per year. into our market. This sugar Cuba could have supplied, and, Gro·up 5. The Revere Sugar Refining Co., with two mills, pro- if ·be had, there would have been no situation such as de ducing 160,000 tons of sugar per year. - Yeloped in the latter part of 1920 and the fore part of 1921. Group 6. The Warner Sugar Refining Co., with four mills, Had she done so at the price allowed by the Attorney General producing 134,000 tons of sugar per year. to Louisiana for her crop, which was from 5 to 7 cents above The total of the Cuban production by these six sugar re-· that which the producers of beet sugar were allowed, she would fineries of the United States is 2,331,033 tons per year. ha Ye had some $400,000,000 of American money with which to Group 7, concerns independent of the United States sugar re meet her obligations here and to maintain her financial house .fining companies, although their offices are located in New in good order at home. As it was she went into the grinding York, produce-785,909 tons, making a grand total of 3,116,942 campaign of 1922 with a carry over Ctf 1,200,000 tons, and during tons. the month of January Cuban raw sold c. i. f. at New York as Who produces the other small amount r A few Cubans with low as $1.67 per hundred pounds. It was this surplus which small mills, producing all the way from 25 tons up to 150 demoralized the sugar industry. Cuha not only pulled down tons; and I want to say that not only was the object in Janu her own house but destroyed that of her neighbor as well. ary, 1922, when I wrote the letter to General Crowder, to de The control of the price of beet sugar by the Attorney Gen stroy the industry in the United States but at the same time to eral was not relinquished until August, 1920. The manufac crush to death every small producer of sugar in Cuba. Not one turers were about to enter upon their manufacturing campaign of them was to escape. These companies, together with the at the instance of the Government. In the spring of that year men in Wall Street, were not only to control the sugars of they had contracted with the growers of beets to pay $12 per Cuba but they were to control or destroy the sugars produced ton, which was more than twice the pre-war price. The sugar in this country, and yet we find the s ·enator from Mississippi beet crop was probably the only profitable one which the farmer here pleading their cause, asking that they be given a chance produced in 1920; but the sugar-beet manufacturers, caught in to rob the American people as they have ! He did not refer in the Cuban jam, were compelled to market their output at a loss his speech on Saturday to the fact that the price of raw estimated at $50,000,000 or more; some were forced to the brink Cuban sugars, since the local production had been absorbed, bad of bankruptcy, and all were compelled to exercise their credit increased from 1! cents a pound to 31 cents a pound. Who to the limit. Owing to. the Cuban surplus the 1921-22 crop of gets it? Directly and indirectly the refiners get it. They have beet sugar was then being marketed at a loss, in many cases, contracts made for all the sugar produced in Cuba at t1'ese and, in all, at a ridiculous low Margin of profit under the present ridiculously low prices ; and now the refiners, not satisfied with tariff of 1.6 cents on Cuban sugar. a reasonable profit, ask that the American people be mulcted The control of the sugar necessary to supply our needs by from now on, since the local sugar is off the market, 2 cents a tho ·e who, to repeat the words of Secretary Hoover, "are out pound on every pound of sugar imported into the United of our reach." cost the American consumer some $50,000,000 in States! 1917 and $600,000,000 in 1920 and 1921. Mr. President, at this time I desire to place in the RECORD a· In continental United States 700,000 acres of our best agri list of the American prod11cers of Cuban sugar, and then the cultural lands are devoted to the production of sugar beets; Senate can find out just what is produced outside of this-a 100,000 farmers are engaged in growing them; 85.000 field quantity this year that will amount to just a few hundred workers, and 35,000 mill operators are employed in the indus thousand tons-and yet they are so greedy that they wanted to try. They give to our people a war ration of sugar which can kill them and the whole American industry! _ · always be depended upon; they furnish the competition which There being no objection, the matter referred to was 01·dered is necessary to prevent monopoly and insure reasonable prices to be printed in the RECORD, as follows: · to the consumer; they have introduced the element of crop ro GROUP I. tation, which is so necessary to our agriculture; they keep at Mills ?wned outright by the American Sugar Refining Co., 117 Wall home millions of dollars which would otherwise be sent abroarl Street, New York: to pay for foreign supplies. It is hardly fair, therefore, to ask Central Cunagua Co.: Capital, $15,000,000. (Cuban Corporation, all stock owned by A. S. R. Co.} that this industry be destroyed to cover Cuba's economic blun Central Cunagua, Moron, Province of Camaguey ; 291,000 acres ; out ders. The American Congress should never again place it in put 112,000 tons. the power of any set of men to monopolize a great food neces Central Jaronu, Moron, Province of Camaguey ; output, 112,000 tons. sity, fix its price, and control its distribution. GROUP II (RIOl'.'DA GROUP). l\lr. President, I refen·ed to the testimony before the Hard Mills owned outright 01· affiliated with the W. J. McCahan Sugar wick committee in 1912. I wish Senators would take that Refining & Molasses Co., 101 South Front . Street, Philadelphia, and testimony and begin with the testimony of Mr. Claus A. 112 Wall Street, New Yor-k: Cuba Cane Sugar Corporation: Incor.poratM in New York, 1915; 112 Spreckels, winding up with Mr. Lowery's testimony, the stool Wall Street, New York ; capital, preferred, $50,000,000; common pigeon of Mr. Spreckels, he that constituted the whole of the 916,667 shares, no par value. W. E. Ogilvie, president; Regino Truf~ " ·wholesale Grocers' Association of America " when the last fin, Alfred Jaretzki, Frederick Strauss, and B. B. R1onda, vice presi dents; H. F. Kroyer, secretary and treasurer. Acreage, 747,800; out ta1iff bill was up and the same class of propaganda was being put, 714,800 toons. spread from one end of the country to the other. It developed Centrals: . Output (tons) . in the testimony that l\Ir. Spreckels furnished every dollar of LaJulia, Duran, ProVlnce of Havana______34, 000 the money for the propaganda, that Mr. Lowery was the only Alava, Banaguises, Province of Matanzas______53, 000 Conchita, Union de Reyes, Province of Matanzas______30, 000 member of it, and he was the person that spread broadcast, Feliz, Union de Reyes Province of Matanzas;..______24, 000 under the name of the " Wholesale Grocers' Association of Mercedes, Guareiras, Province of Matanzas______60, 000 America," the lies that were so prominently printed from one San Ignacio, Agramonte, Province of Matanzas______18, 000 Santa Gertrudis, Bannguises, Province of Matanzag_____ 33, 000 end of this country to the other. Socorro, Pedroso, Province of Matanzas ______._ 60, 000 Who are the members of this American Committee on Cuban Soledad Jovellanos, Province of Matanzas______23, 000 Emergency! Have you traced them back? Do you know who Lequeit10,1 Cartagena, Province of Santa Clara______26, ooo Perseverancia, Real Campina, Province of Santa Clara__ 26, 000 is the power behind the thron~? Do you know who is furnish· Lugareno, Lugareno, Province of Camaguey ______48, 000 ing the money! The great refiners of the eastern coast, with Jagueyal, Jagueyal, Province of Camaguey __ .______61, 000 Moron, Pina, Province of Camaguey ______102, 000 no other view than to destroy the beet industry and the cane Stewart, Stewart, Province of Camaguey ______84. 500 industry within the confines of our own country. Violeta, Aguada de Pasajeros, Province of Camaguey ___ 32. 000 Who are the American Qroducers in Cuba? I have here a Cuban Commercial & Industrial Co.: Incorporated· in New Jersey, recapitulation, and if there is any doubt aboµt it I will put jn 1901; 112 Wall Street, New York; capital, $450,000. B. B. Rionda, the RECORD the name of every company that I refer to in this president; R. Zevallos, secretary. . · Central San Vicente, Jovellanos, Province of Matanzas; output, recapitulation; but I have not the time now, nor do I desire to 20 000 tons. . . publish it in the RECORD unless somebody wants it. Francisco Sugar Co.: Incorporated in New Jersey, 1899; 112 Wall Here is a recapitulation showing the producers of Cuban Street, New York; capital, $1,000.000. - . Central Francisco, Francisco, Province of Camaguey; output, 75,000 sugar, showing who is interested· in this American Committee tons. on Cuban Emergency : Manatt Sugar Co. : Incorporated in New York, 1912; 112 Wall Street, New York; capital, preferred, $5.000.000: · common, $15,000.000. Group 1. The American Sugar Refining Co. have two mills. Regino Truffin, president ; M!llluel Rionda, Frederick Strauss, Alfred They produce 224,000 tons of sugar a year. Jar~tzki, William P. Phillips, Blginio Fanjul, vice presidents; E. D, - LXII-694 '11004 CONGRESSIONAL RECORD-SENA.TE. AUGUST 7,
de Ulznrran, Tke p1·esident and general manager; M. R. Angul<>-, sec GROUP VI. retary ; M. El. Rion
Central Santa Cecilla, Guantanamo, Province of Orlente: output, Cuba enjoys a preferential of 20 per cent, or 40 cents per hun· 15,500 tons. Santa Clara Sugar Co. : Cienfuegos, Santa Clara. dred, while tf the duty were raised to 2} cents per pound tlie Central Juragua; output, 11,400 tons. preferential would amount to 50 cents per hundred, and it re· Santa Mnria Sugar Co.: 2 Rector Street, New York. duced to 1! cents per pound it would amount to only 30 cents Central Santa Maria, Guantanamo, Province of Oriente; output, 10,000 tons. · per hundred. But as a 2l-cent duty would mean prosperity Washington Sugar Co.: while a H-cent duty would mean disaster to the domestic Central Washington, Hatuey, Province of Santa Clara; output, 27,500 sugar industry, the American investors in Cuba are for a tons. RECAPITULATION. 1}-cent rate of duty, and they feel that now is the time to strike and utterly destroy the domestic industry. Tons of THE RllCl:NT RISE IN THli PRICE OF SUGAR. Mills. 2,000 pounds. It should be borne in mind that the recent rise in the price of sugar has benefited few, if any, of the domestic producers, for it did not come until their product bad been sold. As long Group I. American Sugar Refining Co ...... •...... ••• 2 224,000 as they have no sugar to sell, it would profit them nothing if Group II. W. J. McCahan Sugar Refining & Molasses Co ..•. 21 972,800 Group III. National Sugar Refining Co ..•.•.•.•.....••••.... 14 630,100 sugar were a dollar a pound. As is the usual custom, as long Group lV. Pennsylvania Sugar Co ...... •••.••..•••...•.. 6 210, 135 as domestic sugar is on the market, say, from October to Group V. ltevere Sugar Refini~ C-0 ••••••••••••••••••••••••• 2 160,000 l\farch, the Cubans force the price down and the seaboard re Group VL Warner Sugar Refining Co ..•....•••.•...•..•.... 4 l:U,000 finers reduce their margin between raw and refined, with the Total...... 2,331,033 object of making the domestic producer sell his product at the Group VII. Independent of United States sugar refining lowest possible price. And then when the domestic producers companies ...... :1 785, 909 are out of the market the Cuban producers put up their price, Grand total...... · ...... •.... 851 3,116,942 the seaboard refiners increase their margin, and if on their earlier sales they have lost anything they speedily make it up, l\!r. Sl\fOOT. We had before the Finance Committee l\Ir. and meanwhile they have injured their severest competitor. Atkins, followed around by l\Ir. Lowery, telling what to say. If there were no domestic sugar, there would be no such sea 'Vherever he went, Lowery was there. Whenever he made a sonal depres ion in the price of the imported product. misstatement to the committee Lowery corrected him. He rep COXDITIO~ OF THE DOMESTIC INDUSTRY. resented the sugar refiners of this country. What did he say in As a result of this studied policy on the part of the sea his testimony before the Hard\'\ick committee? board refiners and their Cuban mills and of the over specula Mr. MADISON. You stated a moment ago, Mr. Atkins, or this morn tion and production in Cuba, the domestic sugar industry, both ing, that you decidedly opposed going into the beet-sugar business. beet and cane, is in a deplorable financial condition, all of the What was the reason for that? Mr. ATKINS. The beet-sugar business was a competitive business. It producers haYing been compelled for two years past to sell roduced in the western territorie , where our market lay. That is, ugar at a loss, usually of 1 to 2 cents per pound below the f say " our market "-I mean the market of the refiners. the various actual cost of production. They h~ve used up their cash refiners. As that industry grew-and I foresaw that it would grow rapidly-I believed that it would reduce the volume of business not reserves and most of them are in the hands of their bankers, only of the American Sugar Refining Co. but of all the refiners on the from whom they ha\e borrowed to the limit. Unless relief Atlantic coast; and although we bad millions of dollars invested in the comes soon in the shape of a high enough duty to make it. business there we were building up a competitive business, one that would compete with ourselves, and one which was bound to ~et away impos ible for the exploiters of Cuba to continue seasonal selling from us; we could not control it in the end. I say "we "-I had no of sugar below the cost of American production, a large por connection whatever with it; that was simply a business man's opinion. tion of the present owners will be ruined, the factories will be · Why, Mr. President, so determined were they that they cioserl clown 12 months out of the 12, the American people will should control the sugar production in the United States that be at the absolute mercy of the very men who two years ago, they began to secure control of these industries so that they when they found we had no sugar, pegged their price at the could compel the American people to pay an unconscionable unconscionable figure of 24 cents per pound. profit not only during the time that the domestic sugar was on R&ASONS FOR PRlllSE?l'T CO~ITIOK OF DOMESTIC INDUSTRY. hand but also when it ''"as disposed of. They were not satis The present deplorable condition of the domestic sugar in fied with 9 months of robbe~r:r; they wanted 12 months of it. dustry is due to a combination of circumstances covering a The establishment of the sugar industry in the United States considerable period of time. during the three months that they had their product on the The industry was built up under a protective tariff, the rates market has saved to the American people millions if not bil of which the best economic experts had figured out in 1897 lions of dollars more than ever the duty amounted to. to be just sufficient to encourage a reasonable rate of ex-· Mr. President, do Senators want to feed thi monster? If pansion. The industry grew by leaps and bounds-more than they do not want to check it, let them place uch a duty upon 600 per cent in five years, when the frightened refiners set sugar that the American industry can not live. I know that the about and secured a reduction of 20 per cent to Cuba, which American companies are in straitened circumstances. I know immediately checked the growth of the domestic sugar in· that they did not have enough assets to borrow the money to dustry and stimulated that of Cuba. Again, in 1914, the duty pay for the beets last rear. I know that the War Finance Cor on sugar wa reduced, this time 25 per cent, and during all poration advanced to them $4 a bag upon their sugar to pay the this time the industry, with the exception of a few com farmers for the beets, and I know that when that sugar came panies, has had a struggle for bare existence. upon the market they did not get the $4 a bag which they had to pay for the beets. I wish the American people understood RJ!lG"CL.ATION OF DOMESTIC SUGAR INDUSTRY BY FOOD ADMINISTRATION. the situation, Mr. President. The Senator from Mississippi In 1917, after we had entered the World War and •en would not be standing upon this floor pleading for the monster sugar refined from Cuban raws was selling at 8! cents in as he has been pleading if he understood it. New York, the Food Administration exacted from the do Let us see about the history of the transactions in sugar during mestic beet and continental cane sugar producers an agree the war. ment that they would market their entire 1917-18 crop at American producers of sugar in Cuba, most of the1.n con not to exceed n cents per pound less 2 per cent, or 7.1 cents nected with our seaboard refiners, boast that they have in net. Food Administrator Hoover since has stated publicly vested over a billion dollars i.n the Cuban sugar industry and that this action of the domestic sugar prorlucers saved the since 1914-15 hR>e increased the Cuban output from 2,900,000 American people from $25,000,000 to $30,000,000, but it meant to 4,400,000 tons, or practically enough to supply the entire that while other Amelican manufacturers were earning and United States requirements of 4,600,000 tons. To dispose of setting aside reserves for a rainy day the American producers this enormous product to best advantage they now wish to of sugar were selling at or near the bare cost of manu supply the entire United States market, but to do this they first facture. must put a quietus on the United States domestic and insular The country was zoned and the Government distributed production of 2,480,000 tons. To accomplish this object they the product. All through the year 1918 the domestic producers are :flooding the country with elaborate propaganda directed of sugar were compelled to sell their product on one side of not only against any increase in the United States rate of an imaginar:r line for less than the Cuban product was allowed duty on Cuban sugar but advocating a decrease in the rate to be sold on the other side of the same line. In other words, :from 1.6 cents to 1 cent per pound. beet sugar producers were. compelled to sell their product in Youngstown, Ohio, for considerably less money than the THB CUBAN DIFFJ:RJ:~TU.L. refiners got for their Cuban sugar in Pittsburgh. Inasmuch as under the reciprocity treaty Cuba enjoys a In 1919, to s~cure a supply of raw material, the beet sugar percentage preferential, the higher the duty the greater the manufacturers were obliged to raise the price of beets nearly 1 preferential. Under the present duty of 2 cents per pound ~3 per ton and were compelled by the Food Administration •
11006 CONGRESSIONAL REOORD-SENATE. AUGUST 7,
to market their product at not to e:x:ceed 8.82 cents per pound. CUB.A DEFEA!l.'S OBJECT OF &MERO&NCY TARIFF. All opportunity to reap more tha·n ·a minimum ·J>:r;oftt was ~ith the collapse of the pool sugar fell to unprecedentedly low llenied them. prices. In an effort 'to prevent the utter ruin of .American 00\l!lRXi\IF:XT PURCHASE OF CUB.AN SUGAR. I sugar producers Congress in the .-emergency tariff bill Of May, )Ieam...-hile our Government pm·chased the 19.fS...,19 Cuban 1921, raised ~e duty 0'11 sugar from lt cents to 2 cents whicb crop of .. ugar at 1.94 cents per J)ounCI.above the 1914 Ouban tprlce under the 20 per cent reciprocity treaty, 'gave Cu ha a' rate of and their 1919-20 ci·op .at 2.94 cents .above their 1914 price, J..60, as .compared with .1 .cent, -and ra:ised her differential from ihe Cuban producers thus reaping eno:rmous profits. New 25 cents to 40 cents per 100 pounds. area \-vere planted to cane, .new mills were .-erected, old ones But anxious to dispose of their surplus stock and determined were reequipped wifh new machinery, and the output of the to deprive the domestic sugar industry of the relief intended island was increased by more than 50 per cent. the American :imoducers of sugar in Cuba and the seaboard re~ 1\itb the scarcity of sugar in the wofld's markets in 1919 finers so reduced their price and their margin that their aver tbe •Cubans ·began to ·maTk 'up the price, which reached 12} age price for 60 days after the bill went into effect wa $1.3~ r nt. 'by fue end of ·the year and a few months later it ruse per hundred less than it was for 60 days prior to the pa ..,s..'1-~ ·to 24 eents. I of the blli that tncre-ased the duty 59 ·cents -per hundred. nEGGLAT-rON OF PRICE OF ·uuT suaXR IN 1920. Whether it be in increasing the pric-e of sugar 800 per cent , h-.· 'tl1 ~n· a· th f t that · 1914 th · above normal when 'Only the Cubans have sugar to ell or in ~ OL "' swn Ing e ac smce e .average pr..lce decreasing the prtce to a point 'below the cost of product!' on in of beet in tbe Dnited States had gone from $5.45 to $11.74 ·per 'ton, oar GornTnment compelled domestic beet sugar ;to order to ruin the United States dome tic sugar industry the lie :::-old at not to exceed 10! cents -and later at not exceeding 1 Ameilican 1>roducers of 'SugaT in Ouba and our :seaboard i-eflners '1'.! rents le. s ·2 .:per cent, during which .period Cuban sugar was , are equally conscienceless. nllowed to be sold at any price the _producers could exact, and The operating losses of the domestic beet-sugu companies The New York wholesale price of granulated sug r was $4.72, the unanimous-con8ent agreement at any time he de ires to do being 12 cents more than $4.60, and the refiners took 8 cents of so while that paragraph is under consideration. that in profits for refining. It is perfectly obvious that the Senator from Utah has been Now I have taken two months preceding and two months fol addressing himself to the paragraph and not to the amendment lowing the enactment of the Wilson law imposing a 40 per cent which is pending. His hour has expired upon the paragraph duty upon sugar. What was the result? The average for the and the Chair feels that it is due to the Senate to make the whole two months was as follows: New York in-bond price of announcement that the Senator from Utah may continue for raw Sllgar per hundred pounds $3.27; United States duty per another hour, but he must confine himself to the amendment hundred pounds, nothing; United States duty-paid raw Sllgar which is pending. per hundred pounds $3.27; refiners' margin 98 cents; New York Mr. SMOOT. I ask unanimous consent that I may be given wholesale price of granulated sugar $4.25. another hour to speak as I wish. When the 40 per cent ad valorem duty was timposed, during The PRESIDENT pro tempore. Is there objection? the next two months the averages were as follows: New York Mr. HARRISON. I have no desire to object, I will say t() in-bond price of raw sugar per hundred pounds $2.64; United the Senator from Utah, but I should like to get the parliamen States duty per hundred pounds $1.05; New York duty-paid tary situation. What amendment is now pending? price of raw sugar $3.69; refiners' margin 81 cents; New York The PRESIDENT pro tempore. The amendment offered by wholesale price of granulated sugar $4.50 or 25 cents higher on the Senator :from Louisiana [Mr. BROussARDJ. . the average than tbe two months preceding when sugar was Mr. BROUSSARD. That amendment, I submit, covers the free. entire question. I think it changes every rate in the paragraph. Next we come to the Dingley Tariff Act. In 1897 the Dingley I do not think the Senator from Utah should be limited .as to Act became effective on July 24, imposing a duty of 96° the latitude of his talk so long as he talks about the rates on sugar of $1.685 per hundred pounds. Now let us see what hap sugar. pened. On May 27, 1897, the New York itl-bond price of raw Mr. SMOOT. I ask unanimous consent that I may proceed. sugar per hundred ponnds was $2.32; United States duty per The PRESIDENT pro tempore. The Senator from Utah asks hundred pounds 92 cents; United States duty-paid price of raw unanimous consent to discuss the pending paragraph for how sugar $3.25; refiners' margin 98 cents; New York wholesale long? price of granulated sugar per hundred pounds $4.23. Mr. SMOOT. I shall try to get through in an hour. On July 22, the day the prices were quoted before the enact The PRESIDENT pro tempore. Is there objection? ment of the Dingley law in which there was an increase, it · Mr. GERRY. Reserving the right to object, I should like to will be found that the New York in-bond price of raw sugar make a parliamentary inquiry. I want to know if I under per hundred pcmnds was $2.58; United States duty per hun stood the Chair correctly. Does the Chair rule that the dred pounds $1.03; United States duty-paid price of raw sugar Senator from Utah has spoken one hour on the pending para $3.62; refiners' margin $1.03; New York wholesale price of graph and not on the amendment, and that only one hour i.S granulated suga:r per hundred pounds $4.66. allowed on the pending paragraph? Then the duty was raised to $1.681- per hundred pounds, The PRESIDENT pro tempore. He has spoken one hour on and what happened? Five days following that the price of raw the paragraph but not on the amendment. sugar in New York in bond was $2.06, not $2.58. The duty was Mr. GERRY. Then the Senator from Utah is allowed one $1.68, not $1.03. The New Y{)rk duty-paid price of raw sugar hour on the paragraph and one hour on the amendment. Is per hundred pounds was $3.75, where previously it had been that correct? $3.62!. Now we be.gin to see where the profits are. The re The PRESIDENT pro tempore. That Is correct. The unani finers' margin was $1.03 then, where the refiners' margin pre mous-consent agreement so provides. viously had been 97 cents. The New York wholesale price of Mr. SMOOT. I have asked unanimous consent of the Senate granulated sugar per hundred pounds was $4.66. The Dingley that I might proceed. I think I can get through in an hour or law, under the increase in duty from 40 per cent to $1.68! per a little longer. hundred pounds, brought the price up to $4. 72, or 6 cents higher The PRESIDENT pro tempore. The Senator from Utah asks than it had been the week before. unanimous consent that he may proceed with the discussion of Taking the averages, what do we find? During the whole the paragraph for one additional hour. two months preceding and the whole two months following the Mr. GERRY. That will give the Senator from Utah threa difference in the wholesale price of granulated sugar per hun hours. dred pounds was the difference between $4.46 and $4.75, or The PRESIDENT pro tempore. If the Senator from Utah 29 cents per hundred pounds. desires thereafter to discuss the amendment, he would be per-. But let us not stop at that. The Underwood law became mitted to discuss it for an hour. · effective on March 4, 1914, reducing the duty on Cuban sugar Mr. SMOOT. I think I can get, through in an hour. from $L384 to $1.01 per hundi·ed pounds. What was the re The PRESIDENT pro tempore. Is there objection? sult? On February 26, 1914, the New York in-bond price of Mr. JONES of New Mexico. May I inquire if the Senator raw sugar per hundred pounds was $2.04; United States duty from Utah could now use one hour of the time allotted for the per hundred pounds, $1.34; New· York duty-paid price of raw discussion of the bill? sugar per hundred pounds $3.39; refiners' margin, 53 cents. Mr. SMO<;>'I'. No. I am discussing the paragraph, I will say Just notice that, Mr. President-53 cents. As soon as the to the Senator. Underwood law was enacted, it went to 91 cents within a week. The PRESIDENT pro tern.pore. The unanimous-consent agree ,The New York wholesale price of granulated sugar per hun- ment, as the Chair has s.uggested, for the consideration of the dred pounds was $3.92. . Senate, relates to the paragraph and not to the bill as a whole. Now, what was it on March 5? On that day the New York Mr. SMOOT. It relates to the paragraph. incbond price of raw sugar per hundred pounds was $2; United Mr. JONES of New Mexico. I was just wondering if, under States duty per hundred pounds, $1.01; New York duty-paid the unanimous-consent agreement, the Senator from Utah might price of raw sugar per hundred pounds, $3.01; refiners' margin, consume one h<>ur npon the bill? 91 cents; New York wholesale price of granulated sugar per :rt1r. SMOOT. I do not want to consume one hour on the hundred pounds, $3.92. Who got the difference? Did the con bill sumer get it? 1\-Ir. JONES of New Mexico. I should like to inquire if an The PRESIDENT pro tempore. The Chair desires to make additional hour might not be allotted to the Senator from Utah an announcement. The Senator's hour has expired. The in that way? Ohair probably should have made the suggestion or the decision l\Ir. SMOOT. That ·would not be in accordance with the he is about oo make before the Senator from Utah began, but unanimous-consent agreement. the Chair will make it now. The PRESIDENT pro tempore. The Senator from Utah, Under a ruling made by a former President of the Senate under the unanimous-consent agreement, may not discuss. the in the case of a unanimous-consent agreement, which limited bill at this time at all. the time upon an amendment and also the time upon the bill Mr. SMOOT. No; I am required under the agreement to itself, the President of the Senate at that time ruled that when discuss the pending paragraph. an amendment is pending a Senator may not take the time Mr. JONES of New Mexico. I am perfectly willing to grant allotted to him for a discussion of the bill itself. • unanimous consent for the Senator from Utah to proceed, for The Chair finds it utterly impossible to apply that rule to he is discussing a very interesting subject, and I want to hear the provisions of the unanimous-eonsent agreement under him. which we are now acting contained in lines 18 to 22 of page 2 Mr. SMOOT. I thank the Senator from New Mexico. of the agreement. and the Chair will hold that a Senator may The PRESIDENT pro tempore. Is there objection to the address the Senate upon any of the paragraphs mentioned in request of the Senator from Utah for unanimous consent to .. 11008 CONGRESSIONAL RECORD-SENATE. AUGUST 7, continue his discussion of the paragraph for one hour? The sugar from the same acre. The by-products alone of an acre of sugar beets will prod ce as much human f0-0d in the form of meat as will the Chair hears none, and the time of the Senator from Utah for entire product o! an acre of corn. the discussion of the paragraph is extended for one hour. "Many exhaustive and careful investigations have shown convinc Mr. SMOOT. Now let me proceed to show the effect on the ingly that there is no other crop grown on a commercial scale in the United States that produces the surplus food per acre that the sugar price of sugar of the ratification of the reciprocity treaty. beet does, taking into account both the sugar and the various by On December 24, 1903, the New York in-bond price of raw products properly utilized. sugar was $1.87!; United States duty per hundred pounds "This is a startling and comprehensive statement, but the fact has long been, and is to-day, recognized and taken advantage of by $1.68!; the New York price, duty paid, on raw sugar per hun Germany and other countries of continental Europe. The value and dred pounds was $3.56 ; the refiners' margin was 80 cents. adaptability of the sugar beet crop to American agriculture must be Mark how the price rose immediately following the going obvious to anyone. It is almost lnconceivable t.tiat the American U<>vernment will fail to shape its tari1r policy to protect the industry into effect of the Cuban reciprocity treaty. The New York in the present crisis." wholesale price of granulated sugar per hundred pounds was • BY-PRODUCTS ABE VITAL. $4.36. The proper use of beet by.products enters into the farm economy and Mr. POMERENE. Mr. President, I should like to ask the fertilization of all our beet-growing districts. It is one of the most source of the Senator's figures. valuable assets of the dairy and live-stock business in these States. To western farmers, especially those on irrigated lands, the sugar beet Mr. SMOOT. The :figures are taken from the published state crop is thelr most important product. And even the western farmer ments of Willett & Gray, whi1>h are furnished to all the world. who, though remote from the seat of tariff making in Washington, has On December 23, 1903, the Cuban reciprocity arrangement he watched the precarious downward course of the industry for the past two years knows full well that this vital part of his agricultural eco came effective reducing the duty on 96° sugar to $1.34S per nomics is d<>omed without adequate protection. hundred pounds, and on December 31, one week after the quo tations above, after the Cuban reciprocity treaty had gone SUGAR'S SOCIAL CONTRIBUTION. The charge of selfishness ls made by certain interests against the into effect, the New York in-bond price of raw sugar was plea of our people for protection. But we have " our all " in our farms, $2.12, not $1.87! ; United States duty per hundred pounds was and we have given to tnese farms years of toil that mean much to us. $1.348, not $1.681; the New York price duty paid on raw sugar The beet-sugar industry nae aided materially in building up communities that are models of American life that other parts of the country might per hundred pounds was $3.47, and not $3.56. The refiner's well pattern after. And in building up this industry we have createtl margin was 84 cents, not 80 cents. one of the most important phases, not only of western agriculture, but The New York wholesale price of granulated sugar per hun of western commerce. dred was $4.31 instead or $4.36, or 5 cents a hundred pounrls JUSTICE ONLY IS ASKED. difference. Who got it? Did the American consumer? We all. We believe that Congress will recognize these facts; that they will listen to the voice of the western farmer in this crisis and will see to know that he did not. it that a tariff is imposed upon imported sugar sufficiently high to So, Mr. President, all of our tariff bills and the clurnge~ in insure the manufacturers of domestic beet sugar a selling price for the tariff rates on sugar prove beyond question that wllerever their product which will enable them to pay the farmers a reasonable price for the beets grown, based on the selling price of sugarI which a duty is raised the price of Cuban sugar declines and wherever is the form of contract we now grow beets under-a price wh ch will the rate is reduced the price of Cuban sugar increases. When I return to the farmer a fair compensation for his labor, and an American say increases or declines, the difference all goes hack, directly wage for the extra labor which he is compelled to hire in the produc- tion of this crop. . or indirectly, to the refiner. Do not think that the American Respectfully submitted. consumer is going to get it. History proves othe1·wise. UTAH STAT11l FARM BURlllAU Mr. President, I have here a petition addressed to the Con By EPHRAIM BERGESON, President. gress of the United States, signed by the Utah State Farm Mr. SMOOT. I wish I had the time to read the petition, for Bureau. I do not wish to take the time to read it, but I ask the picture it presents is perfect as to the effect the decrease that it may be printed in the RECORD without reading. in the duty or even the maintenance of the present rate of duty The PRESIDENT pro tempore. Without objection, it is so will have upon the omes and communities which have been ordered. . built up around the domestic sugar industry. They plead to The petition referred to is as follows : Congress for a 2-cent rate of duty against Cuban sugar; and · MAY 11, 1922. To the Oongress of the United States of America: I say now to the Senate that unless that rate is gi_ven the The undersigned, representing the majority of the sugar-beet growers sugar industry can not grow. It may live; the Great Western of Utah, earnestly appeal to your honorable body for a tariff of at least Co., of Colorado, whose stockholders own more stock in Cuban 2 cents per pound on imported sugar from Cuba in order that the beet sugar than they do in the Great·Western, can live, but the great growing industry might be preserved. bulk of the sugar plants in the United States will not be BEET-SUGAR MAKING--AN AGRICULTURA.L INDUSTRY. In considering the importance to Utah, as well as Idaho, Colorado, able to live; and there will be little chance for the cane-sugar and other beet-producing States, of an adequate tariff on sugar, it producers to exist. should be borne constantly in mind that the beet-sugar industry is I plead with the Senate to take this great industry out of the essentially an agricultural one; that the farmers are the class m~st vitally concerned in its welfare ; that the growers of beets are the real hands of the refiners and give the sugar producers a rate which producers of the Nation's supply of this domestic product. As pioneers will prevent the refiners killing them off; for, just as sure as· in the introduction of the beet-sugar industry in the United States, the the sun rises to-morrow morning, unless we do, the refiners in farmers of these Western States have learned from experience the eco nomic value of the sugar-beet crop. the end are going to destroy or control this domestic industry, The issue is perfectly clear. For the· beet-sugar industry to continue all of the companies engaged in the domestic sugar industry Its important service to the farmers and to the consuming public of the being financially weak. United States it is imper.ative that such tariff protection be provided as will permit the domestic industry to meet the competition of foreign I wish to say to the Senator from Mississippi [Mr. HARRISON] sugars produced at extremely low cost under conditions of labor which that I am not pleading for this duty because I own 440 shares no enlightened citizen of this country would for any length of time of Utah Co. stock. The offer for that stock on the Salt Lake endure. THE FARMERS' CAS11l. City market to-day is $3 a share. Is there anyone in all the United States who will think because I have $1,300 in sugar The position of the operators of the beet-sugar factories and of the domestic cane interests has been presented to the Senate Finance Com stock that my action will be in any way controlled by that fact? mittee in the bearings on the sugar schedule. But the interests of the Great stress was laid upon the profits being made by the farmers ln the matter have been but barely touched upon. It ls the domestic sugar factories on Saturday last by the -Senator from case of the farmers that most concerns us here. Upwards of 10,000 farmers are engaged in the production of sugar Mississippi. He said that the dividends of the Great Western beets in Utah a.lone. Their income from the beets they produced in Co. amounted to $300,000, but when the Sen.ator from South 1921 was $6,341,000. The United States Department of Agriculture Dakota asked him what rate of interest that represented upon reports show that Utah produced 155,755 tons of sugar made from 1,152,000 tons of beets ground by 18 factories-the largest number its capital he said 6 per cent. I have some figures, Mr. Presi operating in any one State in the Union. dent, over which the Senator from l\Iis issippi coulu roll his BEETS AND THE WESTERN FARMS, tongue. They begin with the profits made by the American The money paid to the farmers for their beets is but one part of Sugar Refining Co. Let us see bow they run in that instance. their income from this crop. We Utah farmers know from experience That company makes a greater profit in the interest on loans the truth of the statement made to the Senate committee by W. D. Lippitt, general manager of the Great Western Sugar Co., in which he and deposits than any sugar factory in the United States declared, in substance : makes all told. In 1913 they made $4.184,988.71; in H>14, "It is o! vital importance to the Western States that the foodstuffs $6,139,389.96; in 1915, $6.184, 720.69; in 1916, $13,703,443.56 ; in they produce be transported in concentrated form. Huge quantities of western farm products can be economically marketed in the food-con 1917, $14,212.789.21; in 1918, the year in which the war closed, suming centers of the East only by being transformed into live-stock they made $12,!')89.486.85; in 1919 they made $15,250,519.12. I products. have not :.he time to give the figures as to all of the refiners, "An average acre of sugar beets produces 2,500 pounds of pure, white granulated sugar, constituting a human food 100 per cent of which is but they disclose that the profits which have been made by the digestible. Utilizable on the farm and constitutirig excellent food for most profitable sugar manufacturing company in the United live stock are the plant tops, the residual pulp, and the molasses. States look like a half pint of cold water in comparison with a "Properly fed to live stock in a balanced ration, the mere by-products from an average acre of sugar beets will produce approximately 300 bucket of milk, and not a drop, as the Senator from Mississippi pounds of meat in addition to the production of a ton and a quarter of suggested on Saturday. 1922. CONGRESSIONAL RECORD--SENATE. / 11009 The Senator irom Mississippi is very solicitous about the beet from 11 cents to 12 cents per -poDD.d. Within i:he next month it had dropped to 9~ cents per pound. 'llhere was a .further ateady decline grower, not that he CRL>es anything about him, but it was for until by January, 1922, cane ,sugar was .offered freely at f.rom $4.80 political effect. He says that the beet grower 1is not dissatis to $4.90, New York base price. · fied; that the beet grower will !llot _get any more; that it will The beet-sugar manufacturers did not participate in any of the high • prices prevailing .during 1920. The GovernmeDt continued to regulate all go to the sugar manufacturer. Mr. President, I have a copy the price of beet sugar until .August .26, 1920_, the prices ranging from of a sugar-beet contract entered into by •beet growers and a 10 cents a pound to a maximum of 12 cents a pound, the ultimate con sugar company, and, as I stated the other day, the price which sumer buying such beet sugar at 15 cents per pound. The entire crop of beet sugar made east of the '.Missouri River went into con@mption they get for their beets is based upon the price which sugar by April 1, 1920. The fa.ctories in the Rocky Mountain States .retained bring in the New York market. The American beet grower is enough of their sugar for their local consumption until midsummer or at tlle a solute 111ercy of the refiner. He tells the producer o! 1920, but sold their output at not to exceed 12 cents per pound. The injustice to the beet-sugar manufacturer did not merely atend sugar every day what he shall sell his sugar for, and not only to the limitation of his prices .for the output oJ sugar made from the that but he has compelled a trade arrangement under which beets harvested the fall of 1919. While the control over beet sugar cane sugar sells for 20 cents per 100 pounds more than beet was being maintained by the United States 'Food .Administration until August 26, 1920, it was necessary to determine the terms of the beet sugar. Seriators ma'Y ask why does the beet-sugar manufac- . contract which the beet-sugar companies should offer to the farmer turer :agree to such an arrangement. It is because .he is ,help in the winter of 1919-1920. The Government took a band in fixing les . We know that that -power can destroy the industry; -it is the price to be paid for beets to be planted in the spring 0 cper on for the beets planted t-he spring of 1920 and harvested sion of the ·Sugar business .in this cmmtry. the .fall i-0f that year. ~be ,sugar made .from these high-"Priced beets was marketed during the -season beginning October, ~9.20, lon~ after Mr. .President, if .every sugar plant in the United States were the Government -had ceased to control the price of either foreign or closed 1:0-morruw, within two months the American eonsumer domestic sugai:. The beet-sugar !factories received an average of only about 6 cents :per pound for the sugar made from the $12 to $12.50 would pay more ·on account of the advance ·in price of sugar beets grown the summer -of J.920. ConBiderable of that sugar was car than the cost .in the beginning of the suga:r plants and the ried over into the 'late summer and early fall of 1.921 and netted the profits which they have .made. There ·is no telling -how mueh factonies only about $4 per hundred p0unds. fru..·ther it would go ; but I know that the price would go just Mr. SMOOT. When the Cuban representative was before the as high as the people of this country iWho -purchase sugar would Finance Committee _pleading that the rate on -sugar should not stand. exceed 1 cent per -pound it developed that in Cuba the wage We are pleaded with .that we <>ught to have a love for Cuba, paid to men was 65 cents a day-not E hours a day, but 12 our little sister. I think that we ·ought to treat Cuba right·; I hours a day ; not in cash,·· not a dollar ·of cash. it was in -store think that iwe ought to treat e-very country right. We mave pay; and the poor fellow, after receiving his 65 cents a -day, given Cuba a preferential rate of 20 per cent, but at the very has to go to the -store and -purchase goods upon whieh God only first opportunity Cuba had to show her love for America ;she knows what pro:fit was made ; and we are asked now that our raised the price of her sugar 889 per cent. American laboring men a.nd women shall compete wlth such 'l'he first time that she had a chance to sho:w her appreciation conditions as those. Our labor costs are higher, our taxes a.re for :what we have given her-namely, :we gav:e her the AmerJ. higher, our fuel and other supplies are higher, our freights can ,market for all of her sugar, cutting ou;t ,evecy other country rure higher. W..ben the refiners ship their sugar fr.omNewYorkto in the world-she laid tribute, together 'With •the refiners of Chicago they have to pay but·63 cents a hundred ipmmds. When this aountry, of over $600,000,'()00 annually upon the sugar con-· Utah ships ker -product to Chicago she has to pay ~7 cents a sumers of the United States. hundred pounds; so we are discriminated against aU along the .Mr. President, I ba-ve hei;e a statement showing the prices line. at the ,different dates, and the increases that were made 1dur 'Mr. LODGE. '.Mr. .President, may I ask the .Senator a ino- the war period. I have not the time to read :it. I ask question? that it be ·printed with my remarks without Teading. Mr. ·SMOOT. Yes. There being no objection, the ·sta-tement refer.red to was l!t1r. LODGE. Does Cuba sell her whole crop here? ordered to be -printed 1n the RECORD, as follows : Mr. SMOOT. Ordinarily she sells it all here; but during the "RA.NOil OB' CANE-SUGAR -PRICllS JN 19~0. last war years her product.was so huge that.she increased it until '· On September 23, 1919, the United States Gov-ernment :relinquished She .i:aised 3,900,000 tons o'f sugar, and if she had sold her sugar its control of the price of foreign raw sugar. Up to that time the at a reasonable price at the time the Ouban pool was organized refiners had been paying $7-28 per .hundred i1or Cuban .raws, duty paid, and the selling price o! the refined product made therefrom was $8.82 she never would have had 1,200,000 tons llang over; but she per hundred _pounds net Cll$h. .All of the crop of Cuban sugar har forced the United States to .go to all ,parts of the world to get vested ·the preceding :lived a thousand years, and each day made a speech similar The Underwood tarifT and the pt·ice of sugar. ~ to that he delivered last Saturday, it would not create a happy home, redeem one acre of waste land, erect one public building, New New New nor make one person the better for having heard or read it. York in United York York bond states duty. wholesale Senator, for the future turn your powers and abilities to price duty per paid price Refiners' price of something better. There ls more real pleasure and happiness of raw 100 of raw margin. granulat in creating, building, helping, than in carping criticism, tear sugar per pounds. sugar per ed sugar 100 100 per 100 ing down, and knocking. pounds. pounds. pounds. 1\1r. HARRISON. Mr. President, whose advice is that? Mr. SMOOT. That is my advice to the Senator from 1\fis ------··------sissippi. Ian. 2, 1914 •••••••••••••••••••• $1. 882 $1. 348 $3. 230 $0.690 $3.920 Jan. 8, 1914 .••••••••••••••••••• - 1. 882 1.348 3.230 .690 3.920 Mr. President, I ask unanimous consent that the diagrams Jan.15, 1914 .••••• ·····~······ 1.942 1.348 3. 290 .630 3.920 on the wall, to which I have .referred. in the course of my dis Jan. 22, 1914 •••••••••••••.••••• 2.007 1.348 3.355 .565 3.920 , cus ion, may be printed in the RECORD as a part of my remarks. Jan. 29, 1914 ..••••••.•.•••••••.. 2.132 1.348 3.480 .«O S.920 Feb. 5{ 1914 ...•••••••••.••••••. 2.132 1.348 3.480 .«O 3.920 The PRESIDING OFFICER. Without objection, it is so Feb. 1 , 1914 ..••••••..••••••••• 2.132 L348 3.480 .440 3.920 ord~red. Feb. 19, 1914 ..••••••••••••••.•• 2. 072 1.348 3.420 .500 3.920 Feb. 26, 1914 .•••••••••••••••••• 2.042 1.348 3.390 .530 3.920 The tables referred to are as follows: ------The Wilson tariff and the price of sugar. Average••••• ·-·········· 2. 025 1.348 3.37 .658 3.920 ------?.far. 5, 19141 •••••••••••••••••• 2.000 1. 01 a.010 .910 3.920 New New New Mar. 12, 1914 .• ··········-······ 1.940 1. 01 2.950 .872 3.822 York in United York York Mar. 19, 1914 •.••••••••••••••••• 2. ()()() LOl 3.010 • 763 a. 773 bond S duty- wholesale 11'.l:ar. 26, 1914 .••.•••••.•••••.••. L9!0 1.01 2.950 .823 3. 773 price tates paid price Refiners' price of Apr. 2, 1914 .•••.•••••••.••••..• 1.940 1. 01 2. 950 .823 3. 773 of raw du~ ofraw margin. granulat Apr. 8, 1914 •.••••••.•••••••••.• 1.910 1.01 2. 950 • 755 3.675 sugar per pounds. sugf~per ed sugar Apr. 16, 1914 •••••••••.•••.••••• 1.970 1. 01 2.980 .695 3.675 100 per 100 Apr. 23, 1914 .••..••....••••••.. 2. ()()() 1. 01 3.010 • 725 3. 735 pounds. pounds. pounds. Apr. 30, 1914 ••••••••••••••••••• 2. 030 1. 01 3. 04.0 .695 a. 735 ------·--- Average .••••••••••.•••.• 1. 970 1. 01 2. 980 • 785 3. 765 J~e 28, 1894 ...••••••••••••.•.. $3.125 S3.125 $0.855 $3.98 J y 5, 18941. ·•••••·•••••••·•·• 3.125 3.125 .855 3.98 1 July 12, 1894 .••••• ,. •••••••.•.•. 3.180 3.180 .800 3.98 Mar. 1, 1914, Underwood bill effective, reducing duty on Cuban July 19, 1894 .•••••.••••.•.•.•.. 3.125 3.125 1.105 4. Z3 sugar from $1.348 to $1.01 per 100 pounds. 3.125 3.12-5 1.105 4. Z3 DISTRIBUTION OB' 33. 7 CENTS RJllMISSION OF DUTY. 3.125 3.125 L225 4.35 ti:l~!:·::::::::::::::::::: 3.375 3.375 L095 4.47 After lowering the duty another 33.7 cents per 100, the New York 3.500 3.500 .970 4.47. wholesale price of granulated sugar declined only 151 cents per 100, i~: ~: i:t: ::::::::::::::::: 3. 750 3. 750 .850 4.60 18.2 cents per 100, or 54 per cent of the entire reduction, being a.ppr<> priated by American refiners. Average.••••••.•••••••••• - 3.27 3.27 .984 4.25 Ouban reciprocit11 treaty and the pr-ice of sugar. 2.680 SL07 3. 750 ~ .97 4. 72 ~-.~,l~~-·::::::::::::::::: 2.680 1.07 3. 750 .97 4. 72 Sept. 13, 1894 .•.••••••....••.•.• 2.680 1.07 3. 750 .97 4.72 New New New 2.680 1.07 3. 750 • 79 4.54 York in United York York Sept. 20, 1894 .•••••••••.••.•.•.• bond duty- wholesale Sept. Zif. 1894 ..••••••..•.•••.•.• 2.680 1.07 3. 750 .66 4. 41. price States paid price Oct. 4, 894. .••••••••••••••••••• 2.680 L07 3. 750 .60 4. 35 duty per Refiners' price of 2.680 1.07 3. 750 .60 4. 35 of raw 100 of raw margin. granulat- 2.500 LOO 3.500 .85 4.35 sugar per pounds. sugar per edsugar 2.500 1.00 3.500 .85 4. 35 100 100 per 100 .~: ~: ~=:::: :::::: :: :::: ::: • pounds. pounds. pounds. Average.•.•••••••••••••.. 2.64 1.056 3.694 .81 4.50 ------$2.190 Sl.685 $3. 875 S0.675 $4.550 1 Aug. 28, 1894, Wilson bill effective, imposing sugar duty of 4-0 per 8~t ~; ~~:::::::::::::::::::: 2.190 1.685 3.875 .675 4. 550 cent ad valorem. Oct. 29, 1903 .••••••••••••••••••• 2.190 1.685 3.875 .625 4. 500 • DISTRIBUTION 011' $1.056 DUTY IMPOSED. 2.125 1.685 3.810 .690 4.500 2.125 1.685 3.810 .690 4.500 After adding a duty of $1.056 per 100, the New York wholesale price 2.065 1.685 3. 750 .700 (.450 of granulated sugar increased only 25 cents per 100, 80.6 cents per 2.065 L685 3. 750 .610 4.360 hundred, or 76.3 per cent of the entire duty, being absorbed by the 2.005 1.685 3.690 .670 4.360 foreign producers and American refiners. ~;.~im:rnrn++ L9-!0 1.685 3.625 • 735 t.360 The Dingley tarlfT and the price of sugar. l.9t0 1.685 a.625 • 735 4.360 E: ~ fm:: ::::::::::::::::: ---L875 ------L685 3.560 .800 4.360 New New New Average•••••••••••••••••• 2.064 L685 3. 749 ------York in York York .691 4.44 United duty. bond States wholesale 2.. 122 1.348 3.470 .84-0 4.310 price duty per paid price Refiners' price ol 2.122 1.348 3.470 .840 4.360 of raw 100 olraw margin. granulat- f~: ~l~:T:~:·:·:::::::::::::::: 2.122 1.348 3.470 .84.0 4.360 sugar per pounds. sugar per edsugar 2.002 1.348 3.350 LOlO 4.360 100 100 per 100 1. 962 1.348 3.310. pounds. pounds. pounds. ~:~: M; ~~::::::::~::::::::::: 1. 050 4.360 1 1.962 1.348 3.310 1.050 t. 260 ~eb". ~ 11:1.·:: ::: :: :: : ::::::::: 2.002 1.348 3.350 .910 4. 260 Feb. 11, 1904 ••••••••••••••••••. 2. 00.2 L348 3.350 .910 4. 260 1 $2. 321 $0.929 sa. 250 $0.980 $4. 230 Feb. 18, 190L ••••••••••..•••••• 2.002 1.348 3.350 .910 4. 260 f~f,·A~ :.:::::::::::::::::: 2.364 .946 3.310 .920 4.Z30 Feb. 25, 1904 •.••••••••••••••••• 2.027 1.348 3.375 .885 4. 260 June 10, 1897 .•.••••••.••••••••• 2. 500 1.000 3.500 .970 4. 470 Jane 17, 1897 ...••••••••••..•... 2. 500 1.000 3.500 .970 4.470 A..verage .•••.••••••••••••• 2.033 L348 3.380 .925 4.31 .rune 24, 1897 ••••••••••••••••••• 2.500 1.000 3.500 .970 4.470 July 1, 1897 ....••••.•••••.•••.. 2.. 500 LOOO 3.500 .970 4.470 i Dec. 27, 1903, Cuban reciprocity effective, reducing duty on 96° sugar to SL343 .Tuly ~1897 •..••.•••..•••••••.. 2.500 1.000 3.500 1.090 4. 590 July '1897 .•.••••..•••••••••. 2.589 1.036 3.625 .005 4. 590 per 100 pounds. 2.589 1.036 3. 625 1.035 July 22, 1897 ...••••••.•••••.••. ------4. 660 DlSTRIBUTION 011' 33.7 CENTS REMISSION OJl' DUTY. Average•••••••••••••••••• 2.485 .994 3.478 .986 4.460 After lowering the duty 33.7 cents per 100, the New York whole sale' price of granulated sugar declined only 13 cents per 100, 20.7 July 29, 1897 1•.•..•••.•••••••.. $2.065 Sl.685 S3. 759 $0. 970 $4. 720 cents per 100, or 61.4 per cent of the entire reduction, being appro· Aug. 5, 1897 ...•••••.•••.••..••. 2.065 1. 685 3. 750 .970 4. 720 prlated by American refiners. Aug. 12, 1897 .••••••••••••...... 2.. 065 L685 3.150 .970 •. 720 Aug. 19, 1897 .•••••••••••••••••• 2.065 1.685 3. 750 .970 4. 720 Mr. McCUMBER. Mr. President, I shall condense into five Aug. 26, 1897 .••••••••••••••••.. 2.065 1.685 8. 750 .970 4. 720 minutes the one-hour speech which would be allotted to me, Sept. 2, 1897 ••.••••••••••••••••• 2.065 1.685 3. 750 .970 4. 720 2.190 1.685 3.875 . 94.5 4.820 if Senators will allow me to do o now. There is not a 2.100 1.685 3.875 .945 4. 81.0 pound of sugar produced in my State. The sugar industry is !:it ~tt:~r :: :: :: ::: :::: ::: : --- 2.255 ---1.685 ---3.94.0 ---.880 ---4. 820 a very important industry in several States of the Union. Average .•••••••••••••••.. 2.114 1.685 3. 798 .954 4. 750 I feel, therefore, under the unanimous-consent agreement, that the time which is allotted to the discussion of the sugar sched 1 July 24, 1897, Dingley bill effective, imposing duty on 96° sugar at ule should be given, as far as possible, to those Senators rep $L866 per 100 pounds. . resenting the States in which the sugar industry is an impor DISTRrBUTION OB' 69.1 C»NTS ADDITIONAL DUTY. tant factor in their industrial life. But, Mr. President, I think After increasing the duty 69.1 cents per hundred, the New York I would be derelict in my duty as chairman of the Finance wholesale pr.Jee of granulated sugar increased only 29 cents per 100, 4:0.3· cents per hundred, or 58.3 per cent of the entire duty, being ab Committee if I failed to take notice of the remarks of the sorbed by the foreign producers and American refiners. Senator from Mississippi [Mr. HARRISON], and especially to 1922. CONGRESSIONAL RECORD-SENATE. 11013 note some of the matters which were printed by him in the weeks ago. The Senator from Utah, however, was very courte RECORD the other day. ous and kind. He said he would not let me have it that day, I do no injustice to any member of the Committee on Fi but that in the course of time we should all know what the con nance when I say that the Senator from Utah [Mr. SMOOT] tents of the letter were. I had heard that the letter proposed has a greater practical and technical knowledge of the more to the Cuban producers through General Crowder that if Cuba important schedules of the tariff bill, and especially of the cot would re ict her crop to 2,500,000 tons this year the Senator ton, the woolen, and the chemical schedules, than any other from Uta would use his good offices to make the rate 1.4 cents Senator upon the committee or of any other Senator in this a pound. The Senator from Utah to-day in reading the letter body. As an indefatigable worker, as a studious Senator, one reaffirms everything that I stated on last Saturday touching who works every minute for long hours every day, I think I the letter. So there is nothing in conflict about it, there is little but speak the voice and express the sentiment of every Sena difference between us, except that I did not know the letter tor upon the committee when I say that the Senator from Utah contained the further proposition that he would try to see that has no peer in the United States Senate. His sterling integ legislation was passed by Congress permitting sugar to come in rity in the presentation and consideration of the various items from Cuba in bond, so that it might be shipped right out to of the tariff bill, his candor and fairness and honesty in the Germany or England or somewhere else with the 99 per cent discussion of them, will be acknowledged by every member of drawback. I presume, although I do not know-and that is the committee, Democrat and Republican alike; and I know why I wanted to ask the Senator a question when he was speak that every member of the Committee on Finance agrees with ing-that he introduced a bill to carry out that proposition. I me that any insinuation or suggestion coming from any source am wondering now if the Senator from North Dakota, the which challenges the honesty or the integrity or the fairness chairman of the committee, knows whether any bill to that of the Senator from Utah demands condemnation from all effect has been introduced and referred to the committee. those who know him. Mr. McCUMBER. Mr. President, I will state that it is not .Mr. President, I know the situation that faced the sugar in ·necessary to introduce such a bill, because that may now be dustry in Utah in the year 1920; I realize the situation that done under the present law. was then faced by the Senator from Utah. He saw a great l\fr. HARRISON. It may be done under the present law. industry, one of the most important in his State, being driven The Senator from Utah was mistaken, then, wben he thought into bankruptcy; he saw every bank in that State threatened that it would take additional legislation, because the letter, as I with the necessity of closing its doors; he saw the trail of heard it read, said that he would.try to secure the enactment of misery which he keenly understood would follow the consum legislation by Congress to carry out that suggestion. So, Mr. mation of the purpose to destroy the beet-sugar industry in the President, in the Senator's letter he reaffirms everything that I State of Utah and the result which would ensue to the banks stated last Saturday touching its contents. that had been giving that industry credit. It was, therefore, I know that the Senator from Utah is greatly interested in but natural that, as a representative of that great State and his people, who are interested in sugar and in beet production its interests, he should lend an ear to any honorable sugges ! do not mean personally ; I care nothing about that-but it was tion coming from Cuba or elsewhere, the result of which would a strange admission which the Senator from Utah made this be to save his State from ruin. I think any of us would have morning in his speech. He said that the industry was in such done likewise had we seen and understood the situation as he dire distress that when its representatives came to see him he saw and understood it. went with them to see Eugene Meyer, jr., head of the War I think the Senator from Utah has explained honorably, Finance Corporation, and used his influence to get Mr. Meyer to fairly, and fully every insinuation and every charge made loan over $7,000,000 to these interests; but he said then that he against him in the press ; and I know I voice the sentiment of felt the Government might lose it unless some legislation could. those Senators who have worked with him for many years in be enacted or some agreement entered into which would pro.tect defending him against any challenge of his honesty or his in them against the sugar that would come in from Cuba. That tegrity or his fairness in dealing with this or any other great is a pretty strong admission. ... national question. The Senator from Utah says that it was not officially done. Mr. HARRISON. Mr. President, I am sure that the Senator However, Mr. President, General Crowder is the representative from North Dakota would not put me in the attitude of ques of this Government to Cuba, sent there to aid and assist Cuba tioning the honesty or integrity of the distinguished Senator in working out her economic problems. He came here and saw from Utah [Mr. SMOOT]. I know of no Senator for whom I the Senator from Utah, so the Senator from Utah says, con have a greater degree of fondness. I like him very, very much. ferred with him, and finally got him to write the letter. I appreciate his sterling qualities. I know that he is very Th~ Senator also said that the letter contained the statement, industrious, most able, and because of his long experience he is "I have the sugar schedule in charge as a member of the a most valuable Member of the Senate. However, Mr. Presi Finance Committee, and I will hold it up until I hear from you, dent, we are here considering a proposition of laying a duty of after you have consulted with the President of Cuba." 2 cents a pound upon sugar imported from Cuba, that being, as Mr. President, thus is the chapter written, and I shall leave it. I understand, the amendment to be offered by the Senator from If Senators want to vote for a tariff rate of 2 cents a pound on Louisiana [Mr. BROUSSARD]. sugar, if they want to vote for a rate of ~.6 cents a pound on Then, too, we are to vote as to whether or not we shall retain sugar, let them do so ; but I say to them when they do it they the 1.6 cents a pound as carried in the House bill, which is in are voting in the teeth of the statement by the Senator from corporated in this paragraph. There will also be amendments Utah [Mr. SMOOT] that a rate of 1.4 cents would be written in offered to reduce the duty to 1.4 cents a pound and to 1 cent a the permanent law or that it would be in the permanent law if pound. I was discussing those propositions so that the country it was in his power to bring it about, provided that the pro might know and Senators might have the facts before them as duction of Cuban sugar were restricted to two and a half to the attitude of the coming chairman of the Finance Com million tons this year. mittee, who will succeed the distinguished Senator from North So far as the Grover letter is concerned, I stated in my Dakota on the 4th of March next year, and what he thought of speech on last Saturday that it was published in the newspapers. the proposition of placing a duty of 1.4 cents a pound on Cuban I read a copy of the whole instrument; I said I did not know sugar in the permanent tariff law. He stood for it; be said that anything about Grover, but I gave his address. I do no know he would use his good offices in having it placed in the perma anything about the outcome of the scheme, but I said then it nent tariff law. was a damnable scheme, and I doubted if he could get anybody The condition, it is quite true, was that Cuba for this year to go into it. However, the thing that struck me in it was that was to produce only 2,500,000 tons of sugar; but tbe agreement he said that there was a " congressional arrangement " to back said nothing about what was to be done this coming year and it up, and so I offered the resolution. . the year followirig; in other words, for one year, namely, this The Senator from Massachusetts [Mr. LoDGE], the leader on year, it was agreed that if Cuba should cut her production ta the other side, and the Senator from Utah [Mr. SMOOT] . and 2,500,000 tons there would be written into the permanent tariff other Senators over there promised me that if I would offer a law a duty of 1.4 cents a pound on raw sugar coming in from resolution providing for an investigation so that the country Cuba. That was to be the permanent duty. So I was discuss could have the facts, so that if anything smeared their names ing the question as to whether or not the Senator from Utah it might be cleared away, but, notwithstanding that promise, would have ever suggested such a proposition if he had not when I offered the resolution last Saturday objection came thought that rate had been sufficient in the years to come to from the other side, and when this morning as soon as the protect the sugar-beet interests of this country. Senate convened I again offered the resolution for an investiga All I did on last Saturday was to show these facts. I did not tion, the Senator from Utah himself made the objection. I have the letter and I have never been able to see the letter nor now offer the resolution again and ask for its immediate con to hear it read until to-day. I called for it a month or six sideration. lll014 CONGRESSION.A.:D RECORD-SENATE. AUGUST 7, .Mr. CURTIS. Mr. President, I suggest the absence of a 5,000 tons ; and the Philippines, 276,000 tons. These estimates quorum. are all given in long tons, and the total is 2,308,503 tons. The PRESIDING OFFICER. The Secretary will call the From further information that I have received I believe that roll. the beet-sugar industry in the United States will prbduce prob The reading clerk called the roll and the following Senators ably nearer 800,000 than 900,000 tons ; but in any case, roughly answered to their names: speaking, the United States will produce less than half of the Ashurst Hale Moses Smoot sugar that it will consume. It will import something like Ball Harris New Spencer 2,700,000 tons in order to make up the deficit. Borah Harrison Nicholson Stanfield Whatever can be said about a duty not being effective on a Brandegee Heflin Oddie Sterling Broussard Jones, N. Mex. Overman Sutherland commodity, I do not believe it can be contended for one moment Bursum Jones. Wash. Pepper Swanson that a duty is not effective in raising prices if the commodity Calder Kendrick Phipps Townsend is one which the home market can not supply the demand tor.' Cameron Keyes Pittman Trammell Capper Ladd Pomerene Underwood I think the tables presented to-day by the Senator from Utah Caraway Lenroot Ransdell Wadsworth are interesting, as showing conclusively that when the sugar Curtis Lodge Rawson Walsh, Mont. duties were lowered the price of sugar went down, and I Dillingham McCormick Reed Warren Fletcher Mcc umber Sheppard Wat on, Ga. intend later to say a few words about the theory which he FreUnghuysen McKinley Shortridge Willis propounded this morning on that subj"ect. · Gerry McLean Simmons The beet-sugar interests of this country have always con· Gooding Mc~ ' ary Smith tended, and I think quite naturally, for a proteetive tariff on The PRESIDING OFFICER. Sixty-two Senators having sugar. They claimed, first, that it was an infant industry. answered to their names, a quorum is present. The question Pr~bably when they started making that claim it was, and is on the unanimous-consent request of the Senator from Mis their contention was sound; but that can not be said of it now. sissippi [Mr. HARRISON]. The fir t beet-sugar factory in this country was started by l\Ir. CURTIS. l\Ir. President, at the request of the Senator a man called Edward Lee Church, at Northhampton, Mass., from Utah [Mr. SMOOT] I object. in 1838. The State of New York at one time gave bounties, The PRESIDING OFFICER. Objection is made. and the industry was then started there, but when it ceased Mr. GERRY. Mr. President, I intend to show that the duties to give bounties the industry died. fixed under the bill on this schedule were fixed at a time wheu The beet-sugar industry has grown from small beginnings, there was an entirely different condition in the sugar market when Doctor Wiley took an interest in it, in the nineties, until and that the conditions now are not what the beet-sugar indus to-day it is a very large industry, producing something less try expected them to be for the summer of 1922. than one-fifth of the sugar we consume. It is located in some I shall first take up and give the different duties. thing like 17 States of the Union and has large factories in Under the Dinglcy and Payne-Aldrich bills the duty on sugar California, Nevada, Utah, Colorado, Idaho, Michigan, and other ·was 1.68 cents per pound. Upon the Cuban sugar that womd States. . equal 1.34 cents per pound, as Cuba, under her treaty with as, 1 When it was first suggested that sugar should come in from has a 20 per cent differential in her favor. In other words, the Hawaiian Islands and the Philippine Islands free of duty, Cuban sugar comes into this market 20 per cent cheaper than there was a hue and cry by the beet-sugar interests that it sugar from any other foreign country. Under the Underwood would kill that industry in this country. The same argument bill the duty was 1.25 cents a pound on full-duty sugars, and was used in regard to Porto Rican sugar. But it did not on the Cuban sugar it was 1 cent. Under the Fordney blll. happen. Hawaiian, Porto Rican, Philippine, and Virgin Island which is the one now under consideration, the Senate committE>e sugar comes in free of duty, and it has not injured the beet made no changes in the rates fixed in this chedule and as~es::; sugar industry here. ; a duty of 2 cents per pound, which on Cuban sugar would be Hawaiian and Philippine sugar is marketed: on the Pacific · 1.6 cents per pound. The Senator from Louisiana [1\Ir. BROUSSARD] has offered an coast, and comes in closer competition with the beet-sugar in ' amendment, which I understand is the amendment pending be dustry tban any other sugar, and yet it has had practically no Ifore the Senate, making the duty 2! cents per pound. This effect rn injuring the industry. would mean that the Cuban sugar would have to pay 2 cents Mr. President, when the sugar schedule was being consid ' per pound, a very large increase over the rate carried by the ered the beet-sugar people came before the Finance Commit~ pending bill. tee and contended that they would have to meet a 2-cent raw Mr. President, I intend now to take up briefly the amount of Cuban sugar ; that the then quoted price on beet sugar was sugar consumed in this country and where it come from. $4.80, and that if the Cuban sugar came in at 2 cents it would It used to be e timated that the United States conSt1me :paid to labor. So I think that when I state these figures, 5.42, for it. They were not satisfied to leave it as a temporary a the cost of p1 cluction for the beet-sugar industry, I am cer tar.ifi'. to meet a remporary c-0ndition. They insisted that it tainly not doing the industry any Injustice, and probably the should go into a permanent law, so that it should not only actual cost of production is a great dea11ower. protect them now but that they should reap that rich harvest Mr. RROUSSARD. Mr. President-- in the future. The Finance Committee of the majority on the The PRESIDING OFFICER (Mr. 0DDIE in the chair). poes other side of the Chamber very graciously acquiesced in their tl1e Senator from Rhode Islan I have here a tatement which I shall review briefly, and UTAH-IDAHO SUGAR CO. then I shall ask unanimous consent that it may be printed in (Owns and operates 15 beet-sugar factories in Utah, Idaho, and the REconn, showing the profits of some of the large beet-sugar Washington.) companies as bearing on the question how much they really need protection. Net earn- Amount of Ratedivi· Year. ings. dividends dends Mr. President, the contention when the emergency tariff act paid. paid. was passed, and when the pending bill was passed in the other House, and taken up by the Finance Committee of the Senate, Per ~nt. was that the beet-sugar industry was su:tfering from very hard 1915 ...... - ...... - • -··. ···-. - ...... ·- •••••••• $1, 129, 906 $566, 984 11 times and that Congress must do something in order to save 1916 ••••••••••••••••••••••••••••••••••••••••••••• 3, 365, 600 1, 039, 470 12 1917 •••• ·--·---·-·····-·-··-········-···········. 6, 445, 292 l, 133, 967 9 its life. That also was the contention of the Senator from 1918 ••••••••••••••••.•••••••••••••••••••••••••.•• 1, 523, 449 1, 937, 336 9 Utah [Mr. SMOOT] to-day. I think, however, I have demon 1919 ...•••••••.•••••••••••••••••••••••.•••••••••. 978, 290 2, 136, 371 9 strated that, in spite of the dark prophecies, the condition 1920 •••••••••• -· ••••••• --··-······ -··. - ••• -··· ••• (1) (1) of that industry is such that it has nothing to fear but in creased dividends. The American Beet Sugar Co. in 1915 1 Not. reported., , had net earnings of one million four hundred and twenty-four On May 17, 1917. stock dividend of 150 per cent was paid on capital stock of $10,000,000. The present outstanding capital stock is and odd thousand dollars; its preferred stock paid a dividend of $23,730,000. 28 per cent, and its common stock paid a dividend of 7 per (Moody's Analyses of Investments 1921, pp. 1712-1713.) cent. I am quoting now from Moody's Analyses of Invest GREAT WJDSTERN SUGAR CO. ments. In 1916 the net earnings had increased to $2,445,000; (Owns and operates 16 beet-sugar factories in Colorado, Nebraska, Montana, and Wyoming.) in 1919 they were $1,200,000 and over; in 1920 the net earnings Capital stock: were $2,425,000 ; In 1918 they paid 62 per cent on the pre Preferred------$13, 630. 000 ferred stock and 18 per cent on the .common stock ; in 1920 Common------15,000,000 they paid 48 per cent on the preferred stock and 14 per cent on the common stock; yet, after corporation making these Amount of dividends Rate dividends large profits for the last five or six years, the beet-sugar • paid. paid. people clajm that they must have the proposed high rates of Year. Net earnings. duty if these poor weaklings are to survive, although the Pre Common. Pre Com· American Beet Sugar Co. have a capitalization of $5,000,000 ferred. ferred. mon. preferred stock and $15,000,000 of common stock. The Utah Idaho Sugar Co.'s net earnings in 1915 were $1,129,000; in Per ct. Per cl. 1916 they were six million four hundred and forty-five and odd 1915 .. : ...•.••....•..•....•. Notreported .• $954,100 $750,000 7 5 thousand dollars. In 1920 the company did not reJjbrt their 1916 ...•.•••••••.••••••.••••.••.. do ...... 954, 100 1,050,000 7 7 1917 ...•••••••.•.•••••.•.•....••. do ..•..... 954, 100 5,550,000 7 37 net earnings, but the rate of dividends paid in 1915 was 11 1918 ...••••••.•.•.•..••••••..•••. do ...... 954,100 7,0.50,000 7 47 per cent; in 1916 it was 12 per cent; and in many other years 1919 ••••••••••••••••.•••••••.•••. do ...... 95i, 100 7,050,000 7 47 It was 9 per cent. 1920 ...... do ... -· .. . 954, 100 7,050,000 7 47 1921. •.••..•.•.•.••.•••••••••••. do ...... 954, 100 2,662, 500 7 17f On May 17, 1917, however, a stock dividend of 150 per cent was paid on the capital stock of $10,000,000, and the present Calculated from rate of dividends paid. (Moody's Analyses of In outstanding capital stock is $23,730,000. vestment, 1921, p. 210.) The Great Western Sugar Co. has a capital of $13,630,000 AMALGAMATED SUGAR CO. preferred stock and $15,000,000 common stock. Its net earn (Owns and operates eight beet-sugar factories iJ,l Utah aDd Idaho.) Capital stock : ings are not reported, but its preferred dividends have been Preferred (iS'Sued July, 1919)------$4, 833, 300 7 per cent and its common dividends 5 per cent, 7 per cent, Common------6,284,400 and so on. The Amalgamated Sugar Co. has a capital of four million eight hundred and odd thousand dollars preferred Amount of Rl;lte of Net dividends dlv1d.ends stock and over $6,000,000 common stock, making a total capi Year. earnings. tal stock of over $10.000,000. Its net earnings in 1916 were paid. cf~~n. $1,857,000, and in 1917 they were $2,680,000. It has paid 12 and 18 per cent dividends. Prior to 1919 its outstanding stock Per cent. was $5,824,400 of common. Since that time the common stock 1916 ...... $1,857,566 $665,172 13 has been increased to $6,824,400 and $4,833,300 of preferred 1917...... 2,680, 755 698,928 12 stock was issued. Apparently as the net earnings increased 1918 ••• - • -·- ••• - •••..• -· ·-••••••••••.•.• ·- ••• -·.. 1, f.23, 21'1 698, 928 12 1919...... 389,267 20t, 732 3 the capital stock was increased. 1920 ••••••••••••••• ····-·· •••• -·-- •••• ····-·-··-· 329,633 386, 664 18 The Holly Sugar Co. has a capital · stock of $3.300,000, and the Union Sugar Co. a capital of $2,530,000. I ask unanimous i Preferred. consent that the statement from which I have quoted may be Calculated from rate of dividends paid. (Moody's Analyses of In vestments, 1921, pp. 1412-1413J printed in the RECORD in connection with my remarks. Prior to 1919 the only outstan ing stock was $5,824,400 common. At The PRESIDING OFFICER. Without objection, the state that time this was increased to $6,824,400, and $4,833,300 preferred ment will be printed in the RECORD. was issued. The matter referred to is as follows : UNION SUGAR CO. (Operates one factory o.t Batteravia, Calif. Outstanding capital stock, Statement sh.owing proff,t8 and dividends of certain beet-sugar companiea $2,530,000.) west of Mississippi River. Year. Net Dividends AMERICAN BEET SUGAR CO. earnings. paid. o 'n and operates six beet-sugar factories in Colorado, California, and Nebraska.) Capital stock : Per cent. Preferred------$5,000,000 1915 ...... $413,525 8 Common------15,000,000 1916 ...... 912,585 11 1917 ...... ·-······-.••• ·--...... 944,9n 24 1918 ...... 494, 857 24 Amount of dividends Earned on 1919 ...... - •••••• - ••••• - ••••••••••••••••.••• - ...... - •••• 626,414 16.8 paid. stock. 1920 ...... 926, 887 16.8 Year. Net earn- i----.-----i----,-- ings. Mr. BROUSSARD. l\fr. President-- Pre Common. Pre Com ferred. ferred. mon. Mr. GERRY. I yield to the Senator from Louisiana. Mr. BROUSSARD. I know nothing of the beet-sugar com panies; but I should like to ask the Senator whether any of Per ct. Per ct. 11115 • . •• •••• - •• - •••••••• - ••• - • • • $1, 424, 65! $300, 000 ...... - • 28 7 the corporations to which he has referred have any accumulated 1916 . .•• ..•... ••••.• _...... 2, 445, UlO 300, 000 S900, 000 48 H surplus or undivided profits? If they have, of cour e, it would 1917 . .. • . ·--· •••• ··-·· •••• ·---·. 4, 882, 980 300,000 3,000, 000 97 30 reduce the percentage of dividends. 1918 ..•••••••••• - ••••••••• - • • • • • 3, 135, 188 300, 000 1, 200, 000 62 18 1919 . . . . - .•• - .••••• -- - • • • .. • • • . . 1, 200, 740 300, 000 1, 200, 000 24 6 l\fr. GERRY. I know no more than what I have stated. All I 11)2() ...... _...... 2, m , ooo 300, ooo 1, 200, ooo 48 14 did was to go to l\Ioody's Manual for the facts which I have stated. The committee absolutely did nothing to ascertain the (Moody's Analyses of Investments 1921, p. 1413. financfal condition of these companies. As I haYe already said, ' ·. ... (_ 1922- CONGRESSIONAL RECORD-SE_dT.A_TE·. 11011 they did not try to determine what the cost of production was; I Mr. GERRY~ In: a minute. L_ feel sure that in the States they simply, according to the testimanyc in the record, accepted! . inr which: this' occurs some legislation ought to be passed illJ the statements of the men interested in beet-su.gar manufacture. ordeii to prevent it. It also seems apparent that as the net earnings, as I ha-ve said, Now I yield t 1 tlley can not carry on their industry without a high protective : The PRESIDING OFFICER. The Chair will announce that duty and that they will be on tlle verge of bankruptcy unless the Senator's hour hRS expired. this' proposed duty be granted to them. l\1r. GERRY. The· Senato1· from Rhode-Island is talking on I1submit that the figures I have just put in the RECOBD prove the amendment of the Senator from Louisiana [Mr. BRous that this is not the case. 'JThis industry has be.en paintecli as · SABD] I understand' that a Senator has one hOUI' on the sched a great industry for the farmer a& doi:n.g- much· for western ule and one heur on the•amendment. lands and doing much for the little homesteadel!-in o:ther Mr. Presi"dent, the Senator fr.om Rhode: Island did not base w-0.rds,. as.. being: of great value to the small American family- his statement entirely on the photographs. The Senator from and naturally everybody is kindly disposed toward anything Utah very likely knows conditiuns in Utah, but the fact re- that helps out the small family in making a living. Un.fur- mains that I hold in my hand here a child-labor bulletin, pub tunately, however; from my studies of this industry I find thnt lished by the National Ohild Labor Committee; showing eondi' those :rosy pictures. painted by those :ibterested in the beet- tions in the beet industry. It states; and I think accurately sugar industry are not entirely corl!eet. In many fields where it gave the stattistics-that children ~ were employed for lonw 1 the best is harvested, f $93,000,000 of cotton. If we try to strangle Cuba's buying power I infer, was the· suggestion hinted at by the Seuator from by putting excessive duties on her main industry, the raising Utah-then we should investigate those conclition . of ugar, we will not only unstabilize conditions in the island, I know that in my own State, Rhode I lancl, and in fact we will not only create financial havoc and unrest among the throughout New England, the people in great numbers are out people--and there are no people in the world we want to be of work ; there has been a disastrous strike going on ; many frienillier with or for whom we have more sentimental attach of them are in want, and at a time like tlli ·, to increase their ments-but we will also be cutting off our own noses, in a burdens seems to me absolutely indefensible. financial way, and dealing a great blow at the farming industry, It will not, I contend, destroy the beet-sugar indu try of the other than that interested in sugar. In 1919 the United States West if the Underwood-Simmons rate is reenacted, but it should furnished 78 per cent of all Cuban imports. Last year Cuba give relief to the people of this country. It is for that reason rose from seventh to fourth place among our customers. that I am so strongly advocating the amendment that I send In regard to the Louisiana sugar, where producers always are to the desk. I ask to have the amendment printed and pending, demanding a heavy duty, which is so strongly advocated by my col so that I can call it up at the proper time. leagues from that State, my contention is-and I am going to be The PRESIDING OFFICER. The amendment will be printetl quite frank about it-that the Louisiana sugar industry is prac and lie on the table. tically a hothouse industry ; that sugar in order to matm·e prop Mr. GERRY. I will tate that the amendment is simply to erly really requires 24 months, and very often in Louisiana, on substitute the rates in the Underwood-Simmons law for tho e account of the climate, it can not get 12 months, so much of the now proposed by the committee. crop is lost. . I believe it would be cheaper for the American. Mr. TOWNSEND obtained the floor. people to take Senator Thon1as's advice and do what he said in Mr. WATSON of Indiana. - Mr. President, will the Senator a ·peech delivered in the Senate in connection with the emer yield to me for a moment, no to take the Senator's time? gency tariff bill, which I quote. He said: l\fr. TOWNSEND. If it does not come out of my time, I I want to say, a'3 I have already said, that it has cost the people of yield. the United States, since the beginning of the sugar industry in Louisiana, Mr. WATS ON of Indiana. May I ask unanimous consent, many times more than the value of the entire product. We have been protecting it for nearly a centuryi and when we have not protected it without coming out of the time of the Senator from Michigan; we have pald it a bounty, nnd stil it is about to be ruined; and it will for the present consideration of a resolution which I wish to always be in that condition so long as it is possible to secure from the report from the Committee on Interstate Commerce? Government of the United States the levy of duties upon the consumer The PRESIDING OFFICER. Is there objection to the re to keep it alive. To my mind it would be better to-day if the United States Government should pay to the people of Louisiana interested in quest of the Senator from Indiana? the sugar business the value of their laud and their crops, plus 10 per Mr. Sll\11\fONS. What is the re olution? cent, and abandon the business than to continue this constant exaction Mr. JONES of Washington. Mr. President, I want to suggest on the consumers of millions upon millions of dollars from their pockets to the end that it may continue. that the Senator can not yield for that pu:rpose under the rules. l\1r. WATSON of Indiana. If that be the ruling of the Chair, That was also practically the idea of former President Mc I want to know about it. This is a resolution from the Inter Kinley when he was in favor of a bounty upon sugar instead of state Commerce Committee with reference to the investigation a duty. of the condition of the engines of the country, but I do not want I wish now to refer to what these Fordney duties will cost to take the Senator from Michigan off the floor nor interfere the American consumer and discuss that question very briefly. with his speech. If that be the ruling of the Chair, of course The total consumption of sugar in the United States at the I shall abide by it. pre ·ent time, as I have already shown, is more than 5,000,000 The PRESIDING OFFICER. The Chair recognize the Sen tons annually. The cost to the people of the United States by ator from Michigan. the increased duty of 1 cent over that of the Underwood law Mr. WATSON of Indiana. Very well. in other words, the cost to the American people that the Brous . Mr. BROUSSARD. l\lr. President, will the Senator yield to sard amendment would entail, would be $110,000,000, without me? I want to put in the RECORD a figure with reference to the the usual pyramiding which always occurs. This would add production of Louisiana sugar in 1921. $100,000,000 more. Mi·. TOWNSEND. I am coming to that subject myself, and If the House provision is sustained the additional cost to the the Senator could put it in at that time, but I have no objection American people will be something over $66,000,000. to his asking to have something inserted in·the RECORD now. If the beet production of the United States, figured at 900,000 Mr. BROUSSARD. I just want to state that the production tons, received the advantage of this 1-cent duty provided by the in Louisiana in 1921, according to the .figures given out by the Broussard amendment it would have · an advantage of $20,· Department of Commerce, was 324,421 tons, which was not high. 000,000, and if the Fordney rate were agreed to it would have Mr. GERRY. The estimates I gave were for the year 1921-22. an advantage of $12,000,000. l\fr. BROUSSARD. This is for the season of 1921-22. The per capita consumption of sugar is about 100 pounds. Mr. McCUl\1BER. Mr. President, I make the point of order That is, an increase of 1 cent per pound in the duty is an addi· that under the unanimous-consent agreement the Senator from tional tax of about $1 per annum for every person in the United Michigan can not yield the floor in this way. States and a total tax of $2 per capita per annum. The PRESIDING OFFICER. The Senator from Michigan 'Ve will have to decide whether we want to vote to-morrow has the floor and will proceed. to place this heavy burden on the people of the country, when Mr. TOWNSEND. Mr. President, I am a protectionist be· they are already suffering from the bad .financial conditions lieving in the theory that tho e things which can and ought which now exist. We will be increasing a burden upon one of to be produced in the United States should be encouraged to the greatest necessities of life, and one which hits every man, such production by a duty which measures at least the differ woman, and child, and we will be doing it in spite of the fact ence in the cost of production here and abroad. To me there is that the industry at the present time needs no such change. no better example of the needs and benefits of a protective-tariff I have already shown that it can exist on sugar selling at duty than sugar. It is a necessity. The late war showed that 5.42 cents; that the present price of granulated sugar is 6.90 the United States was practically helpless to supply the sugar to 7 cents; that even with the Underwood-Simmons duty they wants of the people, and hundreds of millions of dollars were would have a sufficient margin of profit; and with the condi extorted from American citizens for even a limited amount of tions which exist in the sugar market to-day, the decreasing this life essential. It is my contention, sir, that the United surplus and the increasing demand, sugar will undoubtedly go States has the land and the facilities for producing all of the higher, and more and more of a burden will be placed on the sugar that we need here. It bas been clearly demonstrated that backs of the people. this can be done. It is my further contention that it is the An additional increase of siX-tenths of 1 per cent, as I lla ve al- part of wisdom and patriotism that our people should produce - 1·eady stated, means adding orer $60,000,000 to the high cost of the sugar that they need. The very life of a nation may de living. If you make it 2 cents, it will be $110,000,000, and even the pend upon its ability to get sugar a.nd in time of war it may figures the Senator from Utah has given are in answer to the not be able to obtain it outside its own confines, hence the im argument that an increase of duty does not increase the price perative necessity that a nation be self-sufficient to its need for of the ·commodity. The Senator from Utah argued this morn· sugar. ing that while a lowering of the duty lowered the cost of the I propose briefly and within the hour which is allotted me commodity, it did not lower it as much as the amount of the to give my reasons for the imposition of u rate of 2 cents per duty. pound on 96° Cuban sugar. I submit that if we can lower the cost of living by lowering THE MOBILIZATION AND DElllOBlLlZATlOK OF THE SUGAR INDUSTRY. any duty on a commodity, such as sugar, even a small amount, In the fall of 1917 the United States Government, acting we will have done much, and that if it is not lowered the full through Food Administrator Hoover, as ·urned the control of amount of the duty on account of some combination-and that, the marketing and distribution of sugar in the United States. 1922. CONGRESSIONAL RECORD-SENATE. 11019 As far as the foreign sugar was concerned this was accom· continued its attempt to regulate the refining charge which the plisheu by negotiations with Cuba, the principal source of such refiners might make, and also the gross profits of the jobber and supply. Under the terms agreed upon the Allies purchased the retailer, but this was, however, unsuccessful, as the price of entire output of Cuban sugar at a fixed price and distributed raw sugar steadily l'ose and it was impossible to trace the the crop under regulations determined by a joint commission identity of raw sugar through the refining process and subse of the allied powers. In the United States the Food Adminis quent marketing transactions. Very soon the price of foreign tration controlled not merely the price which was to be paid sugar increased enormously and by the late spring of 1920 the for raw sugar but also allotted such sugar to the different Cubans were charging the American refiners 23 cents per pound refiners an LXI~--695 111020 OONGRESSION AL RECORD-SEN.ATE. '.A UGTJST 1l', The effect of this method of dem-obiliza:tlon of the beet-sugar fuel, taxes, and insurance, will average higher than during industry was very disastrous. The loss entailed upon the do the years covered by the above-mentioned Government reports. mestic sugar indu try up to January 1, 1922, by virtue of the It is fair to assume that for several years to come the amount plan of demobilization, with the• resultant demoralization of the paid the farmer for his beets will represent not more than 50 sugar market, has been the net loss to the beet-sugar industry per cent of the total cost of producing beet sugar in the l]niteu of pbout one-third of the $200,000,000 capital invested in that States. industry. The minimllJll price for which the farmer will grow the neces The experience of the United States in trying to control ln sary amount of beets to produce a million tons of sugar is $6 time of war a necessary food product like sugar should thor per ton. This was the general priqe in 1916 and 1917, and as oughly convince the country that it is not safe . to depend en far back as 1912 the factories were paying the farmer $5.65 tirely upon foreign supply. In the first place such supply might per ton for his beets. lt is unreasonable to suppose that with be cut off entirely in time of war. This objection would apply , the increased agricultural costs the farmer will grow beets in with equal force if we should depend upon the supply of sugar the future at less than $6 per ton. produced in our insular possessions. In the second place, when The Government reports above referred to show that the we depend upon a foreign supply our experience demonstrates a\erage extraction per ton of beets is 240 pounds granulate(l that it is irnpossfble effectually to regulate the price of such sugar. When the factories pay the farmer $6 per ton, deliv supply, especially during the periods of mobilization and demo ered at the railroad station, for his lJpgts they are paying that bilization. We can not always depend upon the friendly atti amount for the 240 pounds extractal>le sugar in the beets ; tude of the G-Overnment controlling uch foreign supply, and, that is, they are paying the farmer at the rate of 2.50 per Mr. President, I submit that we ought not to consent to depend hundred pounds for the extractable sugar in the beets. If such upon such fo1·eign control. Neither of these objections holds payment epresents 50 per cent of the total cost of producing with reference to a supply of sugar produced within the borders beet sugar in the United States, then the total cost of pro of continental United States. Such a supply is always subject ducing such sugar will be $5 per hundred pounds, or 5 cents to the absolute control of our G-Overnment so far as price, distri per pound. This is a careful estimate of the average cost of bution, and marketing are concerned and can not be disturbeq production for the next few years. Those factories which are by foreign invasion, for the area of production is in the central able to get an extraction of more than 240 pounds per ton of part of the country. Moreover, if we still maintain our hundred beets will be able to reduce this figure somewhat. The oppor beet-sugar factories with their organizations intact and their tunity for such increased extraction is not, however, as great beet-growing farmers interested in the business, it is possible, in as formerly, owing to the fact that the s11gar-beet seed which case of a protracted war, to increa e the output of domestic is now being imported from Germany is not of as high a quality beet sugar at least 50 per cent by simply encouraging the farm as that which was imported before the war. Only a compara ers to raise more beets. This would gi>e our people a ,war ration tively small amount of the beet seed now used is raised in the of sugar even if all foreign sugar and sugar production in our United States; but I desire to state that, due to the action of insular possessions were cut off entirely from our market. No Congress in making appropriations for the Department of fiscal legislation should be passed which would close our beet Agriculture, we are rapidly producing American sugar-beet sugar factories or cut down our annual output of beet sugar seed, and there is every reason to believe that within a short below 1,000,000 tons, which amount is practically one-quarter time we will have produced a sufficient quantity to meet the of our annual consumption of sugar in peace times. To reduce needs of this great industry in the United States. our output below this figure is not only to run an unnecessary The following are the high and low prices of 96° Cuban war risk but is also to remove from our market the best balance sugar, deli>ered in bond at New York, for a period of 12 rears wheel serving to regulate the price of sugar in time of peace. preceding the war, as given by Willett & Gray, the quotations Mr. President, the raising of sugar beets in the United States being the net cash price per hundred pounds : is directly in the interest of agriculture. Many of the Sena tors who are opposing a proper protective tariff on sugar are Year. IDghest. Lowest. expressing their extreme friendship for agriculture; and yet I shall show the number of people who are interested in the growing of sugar beets, that it is a great industry, and that its 1902 .. ••••••••·••••••••·••·••·••••••••••••••••••••••••••••••••• $2.31 $1.585 1903 ... ·•••·•··••••••·•••·•·•··•••· ••• •·•·•·••·••·•••••••••·••• 2.225 1. 815 possibilities are unlimited. It is a farmer's product; it con 1904 .•. •··•···••··•····••····•··•••·••••··•·•••·•·•·•·••·•••··• 3.50 1.97 tributes to the welfare of the country. Tbe beet-sugar indus 1905 •.•.•.••.••.••..• -· .•••.••....•••••••.•••• - · •••.•.•.••.••.. 3. 875 2.06 1906 •. ····-····················································· 2. 73 2.00 try should not be destroyed or it~ growth e,·en retarded by 1907 •.•.....•.•.••..••.••••.. ··- ..••..•••..••••••.•••••.••.••.. 2.59 2.03 the competition which is furnished by organized capital con 1908 .••••...•••.•••.•••..•....•.••••••••••.•.••••••.•••...... 3.125 2. 31 tributed by people who are not interested in farming or in l909. ·········•···•····•·•··••····•·•·•·•··•····•·•·••··•·•···· 3.09 2. 25 1910 ... •·•••••• .••••••.•••• ···················-··•············· 3.09 2. 44 agriculture, and I think I shall be able to show before I con 1911 ...... •••.•••••...••••.••.•...•.•..••••..••••.•.•••••.... 4. 60 2. 06 clude that that class of people are .controlling not only sugar 1912 ••• ·-· ..•••.•••••••.••..••••••.•..•••.•••.•••••••••••••.... 3.'" 2.il production but also sugar prices and disb.·ibution, and are 1913 ...... ·································· ... . 2. 44 l.tn5 influencing this legislation. In my judgment the situati0n may be summed up in this way : The struggle on the floor of the The crop of sugar which Cuba is now making will be pro Senate to-day is a contest between the great sugar refining duced at a less cost than any previously made. This is pri· interests of the East and that wllich are already absorbing the marily owing to two reasons : First, her improved factories sugar lands of Cuba and are in control of the sugar output, on as compared with pre-war conditions, which factories enable one side, and the American sugar-beet growers ancl su~ar pro her to get better extraction ; second, labor cost is less than ducers here in our own country on the other. ever before since Cuban independence. There is abundant Mr. GERRY. Mr. President-- Government testimony to show that Cuba will produce at Mr. TOWNSEND. I yield to the Senator from Rhod-o Island. least 2,000,000 tons of sugar this season at a cost of not to Mr. GERRY. Does not the ·Senator from Michigan think exceed $1.50 per 100 pounds, and that an additional million that the consumer is involved at all? tons can be produced at a cost of from $1.75 to 2.25 per 100 Mr. TOWNSEND. Indeed I do think the cor:sumer is in pounds. The freight rate from Cuba to New York is back to volved; I am not overlooking that fact; but I think that the pre-war conditions. sugar refineries have no regard whatever for the good of the In view of all the facts in the case it can be safely stated consumer. They are evidently exploiting Cuba and free or in that the in-bond net cash delivered price of Ouban -sugar at sufficiently protected sugar will destroy American competition the port of New York for some time to come will range from and then God have mercy on the consumer. They have never $2 to $2.25 per 100 pounds, which prices will afford many of shown the least sympathy for the sugar user; every time the the Cuban mills an ample profit. domestic product has been disposed of, the p1ice of foreign In making this statement I am not saying what the refiners sugar has been increased and they have more than recouped of New Yo1·k will sell the finished product for to the con the losses which they sustained during the time when they sumer. The range between the price paid by the re.finer for were cutting the price of the domestic product for the purpose' raw sugar and the price which they receive from the public for of eliminating American production. refined sugar is very great. At times it is unconscionable, and The Government reports covering several years prior to our yet his friends here are either consciously or unconsciously entering the World War show that the amount paid by the aiding him to destroy bis American competitors and thus allow beet-sugar factories to the farmers for beets constitutes from him to practice all the time what he now does a part of the 52 per cent to 58 per cent of the total cost of producing .sugar. time. Sir, if I am not without common sense or ordinary The average of these figures is 55 per cent. For several years to reason, inadequate protection of a necessity of life which our come the costs of manufacture, including transportation, labor, country has ample agricultural possibilities to produce, not 1922. CONGRESSIONAL RECORD-SENATE. 11021 only in sufficient quantities to supply the needs of its own peo world, and also that it has the highest-valued currency in the ple but for export as well, is an impeachment of statesmanship world. All civilized peoples are trying to sell their products in and patriotism. Why, when agriculture is suffering from American markets for American dollars. unprofitable production, rob it of one of its most profitable The conditions confronting Congress in the consideration of products? Beet sugar is an infant industry. Its possibilities the present sugar schedule are different from the conditions are unbounded. When other nations are protecting their sugar confronting Congress in the consideration of any previous sugar industries with duties in excess of the highest which anyone schedule. From the passage of the l\IcKinley bill to the passage . ha proposed. for ours, should we hesitate to impose a sugar of the Underwood bill the annual output of Cuban sugar, duty barely sufficient to enable it to exist? plus the annual output of our domestic sugar, was less than the The figures published. by Willett & Gray show the follow annual consumption of sugar in the United States. This situa ing difference between the duty-paid price on raws and the tion is now entirely changed. Cuba is producing 4,000,000 tons New York net cash price for refined during the years enu of sugar annually. The duty-free sugar of continental United merated: States and its insular possessions now amounts annually to Cepts per 2,000,000 tons. These 6,000,000 tons of sugar are competing 100 pounds. for the market of the United States, which can consume only 19111910--~------______89.278.0 . about 4,000,000 tons of sugar annually. Last year our con 1'9131912------______77.287.9 sumption was only 4,100,000 tons. 1914 ______86.9 These two sources of supply have competed for the United 1915------91.7 States market since our Government relinquished the control of 1916______107.6 sugar in August, 1920. During the 15 months that elapsed It is fair to assume that the refiner's costs of operation are from that time up to January 1, 1922, there accumulated a now greater than they were before the war. A $1 margin surplus of 1,200,000 tons unsold Cuban sugar, and nearly as between raw and refined is reasonable. It must be remem much unsold domestic sugar. In round numbers, the surplus bered that the· lower the price of raws the lower the necessary of these two stocks on January 1, 1922, was 2,000,000 tons. margin between raw and refined, on account of the fact that The financial results of such competition have been disastrous the 7 pounds lost in the act of refining is of less value with both to Cuba and the United States, and for several months cheap raws than with expensive raws. in the winter of 1921 and 1922 sugar was selling at much less If to the probable average New York in bond price of Cuban than the cost of production. raws, namely, from $2 to $2.25 per hundred pounds, we add EYery bank in Cuba, with the exception of the branch banks $1 per hundred pounds to the refiner's margin and a $2 per of certain banking institutions of the United States, has become hundred pound duty effective against Cuban raws, we will have insolvent and closed its doors. Millions of dollars' worth of as the New York price of refined sugar a quotation of from American goods shipped to Cuba are unpaid for. The wage $5 to $5.25 per hundred pounds. Beet sugar is sold at about rate on Cuban plantations has dropped to 40 cents per day. 20 cents per hundred pounds less than cane sugar. This would Coupled with this financial and social disaster there was threat make the effective New York basis for beet sugar to range from ened revolution, intervention, and annexation. In the United $4.80 per hundred pounds to $5.05 per hundred pounds. Re States fully half the sugar properties of Louisb.na have passed member, the probable cost of beet sugar is $5 per hundred into the hands of receivers or are on the verge of receiver pounds. ship; 15 of the 106 beet-sugar factories in the United States It will thus be seen that the minimum duty to be imposed upon were closed down before the crop harvested in the fall of 1921 Cuban raws is $2 per hundred pounds. Under such a duty the was manufactured. Most of the beet-sugar factories that manu beet-sugar factories can pay the farmer $6 a ton for his beets factured the crop of 1920 and the crop of 1921 lost heavily and can produce granulated beet sugar at $5 per hundred both seasons. I understand that many of the factories which pounds. Such a tariff will equalize the difference in cost of operated in the fall of 1921 are not operating now. All heet production between the average Cuban ;mgar and the average sugar factories in the United States hesitated last spring to put beet sugar and will undoubtedly allow the best mills in Cuba out contracts to their farmers for growing beets this season. and the best situated beet-sugar factories in the United States All have waited to see what Congress will do with the sugar to make some profit. Any reasonable tariff must be based on tariff. The price which factories could offer to farmers was average costs and not on the highest or lowest cost sugars in not sufficient to encourage them to grow beets in sufficient quan either country. tities for the profitable operation of the factories. Fully one I am going to print, with the permission of the Senate, third of the $200,000,000 invested in the beet-sugar factories of Mr. President, a table prepared by a Member of the House the United States bas been wiped out by the last two disastrous of Representatives [l\ir. l\f.ABTIN]. In a speech delivered in seasons. tbe House of Representatives July 11, 1921, Representative Mr. President, I have not been in the Senate Chamber all of MABTIN stated that the effective sugar tariffs then in force the time. I do not know whether or not reference has been in different countries were as follows, the rates quoted being made by any Senator to an alleged report sent out by the Great jn dollars per 100 pounds of sugar: Western Sugar Co. I have heard that such a report bas been sent out and that it showed a satisfactory condition of that England------$5. 574 company. I do not know, and I do not desire to speak with any France------~128 Japan------3.392 Austria------t------2. 39 ~~~~~i~·?ia~o~~f~;e:~;, t~h~ugi1?;:t wJ!~~~e~!vsu~~e J~ ~:~ ~~i~~ Ita1Y------2. 00 Netherlands------4. 103 the refiners of the East and the West. I do know that attempts HungarY------2.39 have been made in the past by these refineries to absorb the Denmark ------1. 216 beet-sugar interests of our country. They could well afford Canada------1.93 Spain------2.276 to buy and close them. I do not know just what particular Czechoslovakia ------1. 216 benefits or advantages surround this particular company which Germany ------2. 03 ham enabled it, I understand, in the past to handle its business Since the date of Representative l\f.ABTIN's speech several with greater profit than those engaged in the business elsewhere of these tariffs have been materially increased, notably that in the United States. of Canada, which is now, I think, $2.39. I understood the I do know that the sugar factories of the United States junior Senator from Louisiana [Mr. BROUSSARD] on Saturday generally, more than 90 per cent of them, have had most dis to say that the Canadian tariff is now $2.35. I may !:>e mis astrous years, that they are laboring under great troubles now, taken, and he may be right; but that is immaterial. and that they have not been able during the last year to enter The United States Department of Commerce has recently into contracts for sugar beets to supply sufficiently their ac compiled data showing that in most countries of the world the tivities during this fall and winter. I do know that the report tariffs have been increased since the war from 50 per cent of the Michigan Sugar Co., which company generally is perhaps to 600 per cent. For data concerning these increases I refer one of the most successful of the beet-sugar facto1ies. shows to an article in the Literary Digest of January 7, 1922, on page a much better condition than the reports of nearly all of 74. I have not verified that with any statistics from the the other factories engaged in the business. I have here two department. reports of the Michigan company, one for the fiscal year In the face of such a general trend toward higher tariffs it ending June 30, 1921, and the other for the fiscal year end is unwise to consider as a fetish the schedules in the Dingley ing June 30, 1922, and I desire to insert them in the RECORD at tariff bill and the Payne-Aldrich tariff bill. Certainly it is this point. common sense to appreciate the fact that in these post-war The PRESIDENT pro tempore. Without objection, it is so times the United States has the highest seal~ of wages in the ordered. .11022 CONGRESSIONAL RECORD-SENATE. AUGUST T ' The matter- referred to is as foIIows : Lothrop, Detroit, Mlch.; George B. Morley, Saginaw~ llich.; James B Peter, Saginaw. Mich.; John H. Qualman, Saginaw, Mich.; Guy w: REPORT OF THE DmECTOBs OF- THE :MICHIGAN SUGAR Co. Rouse, Grand Rapids, Mich.; William H. Wallace, Saginaw, Mich.; SA.GINAw, Mrcn., September 1, 19!1. Charles B: Warrerr, Detroit, Mich.; ll. N. Wallace, Saginaw, Mich. To the stockholdei·s: Ofti.cera: Charles B. Warren, pre. ident and general counsel ; George The annexed balance sheet · give& the financial condition of' the com: B. Morley, first vice president; Gilbei:t W. Lee, second vice president; pany for the fiscal year ended June 30, 1921. William H. Wallace, third vice president and genet·al manager; F. R. · Respectfully submitted. Hathaway, secretary-treasurer; H. M. Sullivan, assistant secretary; For the boa-rd of directors. H. L. Berdan, assistant treasurer; R. N. Wallace.. assi tant general F: R. HATIUWA.Y, Treasurer. manager; Charles W. Bradford, comptroller; R . .r. Baird, auditor, President's, ecretary's, treasurer's, and sales offices : Union Trust Michigan S·ugar Oo. btdanoe sheet; June· so; 19U Building, Detroit, Mich. ASSETS. Ui~:~eral manager's· and purcha'Sing offices·: Eddy Building, Saginaw. Property account : Land, buildings, machinery, a-nd equipment: REPORT OF THE DIRECTORS OF THE! MICHI during this two-year period have been very heavy. Repair e-xpenditures. because they ask it but because I believe that it is right, nnd neceis,.,:u:v to put the plants into opera1:rng condition for the coming i • 110:~4 CONGRESSIONAL REOORD~SE:N ATE. AUGTJ T 7 has giwn the beet- ugar indu ·try such a hold upon the spar ely refiners had been paying 7.28 per hundred for Cuban raw·, populate • 1922'.. CONGRESSIONAL RECO-RD-SENAIE~ 1109...5 ning October, 1920, long afte1· tlie G-Overnment had- ceffsed- to. There b.e.lng no objection,.. the matter-- was ordered to ·be tontrol the price of either foreign or domestic sugaT. The beet! printed in the. RECORD in 8-point type, as fol1ows : sugar factories received an average of only about 6 cents a THE WooLGROWERS' ANSWER TO THE CLOTHING AND CLOTH MANUFAC pound for the sugar made from the $12 to $12.50 beets grown TURERS' kt'TACK ON WOOL TA.RIFF. the summer of 1920. • 11026 CONGRESSIONAL RECORD-SENATE. AUGUST 7, . ACC rSATIONS OF CLOTHING AND " The statement that domestic wools are not uited for u e CLOTH MANUll'AC~'URERS-con. WOOLGROWERS' ANSWERS-con. in_the manufacture of better grades of d9thing is propaganda woolgrower and the tariff be pure and simple, as any reliable woolen manufacturer will responsible for $150,000,000 to frankly state. In many cases the domestic wool is preferable. $361,000,000 irrcrease in cloth ing values when the total CONNTlON OF DOMESTIC WOOL INDL' STRY. '· amount of money received by " The number of sheep in the United States has decreased the woolgrowers for their clip approximately-10,000,000 head in the · last 10 years, and in 1920 is considerably less than half 163,000,000 pounds more wool were imported into this country of the estimated increase to the than in 1910, which shows the rapid decline of . the domestic consumer by reason of the sheep and wool industry. The woolgrowers are not seeking to tariff, as set forth in the cloth impose a tax on the consuming public, but demand equal pro ing manufacturers' advertise tection for the wool-growing industry to that accorded the ment? manufacturers of our products. For a certain group of manu "B. That the proposed duty " The prons1ons of the facturers to assail protection accorded one industry, wllich is of 33 cents per clean pound Payne-Aldrich bill of 11 cents established by the same principle, namely, ' difference in the content is 83 per cent higher per grease pound duty on wool cost of production of foreign and domestic,' that they them than the rates in the old and the manufacturers' com selves staunchly uphold in fixing duties upon their products Payne-Aldrich bill, which pro pensatory duty of 44 cents per strongly savo_rs of an attempt to secure special favors. vide • 1922. CONGRESSIOXA.L RECORD-SE ..-ATE. 11027 tjwe of one-half cent per pound. Sugar was absolutely free sumption that sugar can be produced under fairly good condi except as to that small duty above No. 16 Dutch standard, and tions in this country. As to beets. the late l\lr. Jame Wilson, in lieu of a duty, as I said, there was a bounty of 2 cents per when Secretary of Agriculture in 1909, issued a very interesting pound. statement entitled "The Beet Sugar Industry in the United 1\lr. SHEPPARD. What was the amount of the Dutch stand States," which was published as Senate Document No. 22, Sixty ard sugar as compared with the total? ftrst Congress. fir t session. In this he said that 274,000,000 ::\Ir. RAN8DELL. I can not an ·wer that question. acres in the Bnited States ha\e soil and climatic conditions L'nder President Madison, brown sugar, which must haYe adapted to satisfactory beet culture, and concluded bis gen been the same as the 96° test sugar of the pending bill, had a eral discussion in these words : duty of 3 cents, which was reduced to 2! cents under President I estimate that H the beet sugar were grown throughout those por Andrew Jack on and the sallie under President Tyler. Under t ion of the United States adapted by nature . and wtth the aid or irrigation to it· culture, with a system of rotation including the cul President Grant the duty on sugar was 2 cents to 3.25 cents, tivation or the beet every fourth ;vear. 15,000,000 tons of beet sugar according to grade. Under the Morrill law, during the Presi could , be produced in the United S tates annually, or more than the dency of Mr. Arthur, 96° sugar had a duty of 2.24 cents. Under world s total pro Nil. 53 of the Department of Commerce, ta, which L alluded lasses out of it and made it an edible product paid out in labor a. moment ago, shows that in order to prodiree a ton of raw for the proe-ess- of cleansing that sugar $6 ..72. That is what cane si.1gar ini the State of Louisiana there is money paid· to l s.aut I wus trying: to lead the- Senate to understand that th farmer for his labor and to the factory for its cost. to the when a ton of sugar is made in America we get out of the extent of $79.56. Let me repeat that. To produce a ton of transaction $79.56. When we bring a ton of sugar from Cuba sugar in Louisiana there must be paid out in expenditures all that American. labor and American enterprise get out of of every kind and sort $79.56. For beet sugar it is about the the transaction is $6.72 paid by the refinery. same, or perhaps a fraction lower. But what about a ton of Mr. SIMlUONS. That is for conversion? Cuban sugar that is imported, let us say, in a good American l\fr. RANSDELL. Yes; that is the proposition. ship at a cost of $3 a ton freight charge from Habana to New Mr. Sil\IMONS. Then I did not understand the Senator. York? The ship gets $3 a ton. out of it. The refiner pays: Will the Senator tell us what it costs to produce a ton of sugar out for labor to refine that sugar, to· put it in shape so that in. Cuba as compaTed with what he said it costs to make a ton we can use it on our tables, $6.72. In one inBta.nce, to get the of sugar in Louisiana? sugar in ha.pe· to consume, in Louisiana and the beet-sugar Mr.. RANSDELi:,, r can give that to the Senator. Tbe fig- region, $70.56 is expended in this country, and in the other ures are as follows : The cost to produ Mr. SIMMONS. I said that-- " It is difficult to believe that the memory of the American The PRESIDENT pro tempore. The Chair reminds the public is so short that this statement will be accepted at its senior Senator from Louisiana that the colloquy is wholly within face value. Cuban sugar was largely controlled from the his control. United States during the war, but in the absence of such con Mr. BROUSSARD. I do not care to interfere further. trol, and sometimes in spite of it, the supply was undependable l\1r. RANSDELL. Then, Mr. President, I will proceed, though and subject to combination and control over which we had no I wish to be just as courteous as possible. jurisdiction. l\Ir. SIMMONS. If the senior Senator from Louisiana will FALL OF 1917. yield for that purpose, I have not any objection to discussing "The food control act went into effect August 10, 1917. On the matter. August 22 Mr. Hoover, in a memorandum to the President out l\Ir. RANSDELL. I was stating, Mr. President, that a ton lining his problems, made the following statement: of sugar in this country would cause on the part of the people " ' Certain Cuban sugar producers-who are out of our who made the cane and those who ran the factory and ground reach-have combined to force up the price of the remaining up the cane an expenditure of $79.56. Let us see what that 1917 Cuban crop, prior to the new crop in ::>ecember, and have means. A million tons of sugar which we produce in the United lifted the price of raw sugar in New York from 5 cents in States, a million times $79.56, or $79,560,000, so that every June to 7.5 cents, duty paid, on August 16, and this against a million tons of sugar that we produce in the United States three-year pre-war average of 4.2 cents. The recent advance causes an expenditure in the agricultural sections of nearly of 1.6 cents alone would represent an added tax upon the $80,000,000. If we buy that sugar in Cuba and bring it over American people of over $30,000,000 by the end of December.' to this country and have it refined here, we then pay out in "As soon as the domestic crop came on the market the beet America $6.72 a ton, as I have before shown; multiply that by sugar producers, together with the cane-sugar producers of a million and Senators will see that we have a very different Hawaii and Louisiana, entered into a voluntary agreement by result. It is $6,720,000 in that instance as against nearly which the entire western half of the country was supplied with $80,000,000 in the other. refined sugar on a basis of 7.25 cents. At the same time the Do Senators want to encourage an enterprise in this country eastern seaboard, dependent upon Cuban sugar, was paying which will build up a wonderfully successful form of agricul 8.40 cents. ture? As I have shown, we get more money per acre for pro " In spite of this disparity the supply of Cuban sugar ducing sugar than for producing any other farm product with promptly ran out and the eastern refineries were obliged to the exception of sweet potatoes, Irish potatoes, and tobacco. close for the lack of supplies. The Franklin refinery at Phila Do Senators wish to build up a form of agriculture in America delphia closed on September 15, Arbuckle in Brooklyn on Sep which will be very successful and profitable and pay enormous tember 19, Colonial refinery on October 4, followed by the others sums of money to our own farmers and manufacturers, or do i~ rapid succession. By October 24 all the sugar refineries in they want to build up Cuba? Do they want to build up a the United States were closed except one belonging to the foreign land? I have always believed in America for Americans, American, and four refineries which were being supplied by l\Ir. President. I believe in looking after Amer;can institutions Hawaiian raw sugar. first, especially if along with my attempt to look after American " The shortage which followed in the eastern States was most institutions I can give the consumers of sugar a cheaper product acute and was the subject of senatorial investigation. l\Ir. E. D. than they ever would receive if we should get into the merciless Babst, president of the American, testified that it was a short hands of the refiners of sugar. Everyone who has ever studied age of supplies in no way due to the Food Administration. 1\Ir. this subject closely agrees that if we permit the sugar business 0. A. Spreckels, of the Federal, endeavored to lay the blame ou to get into the hands of the refineries they will fix any price an agreement signed by the refineries on October 10 after a upon it they see fit. So we should by the imposition of this majority of the refineries had closed, whereby the refiners duty be giving, first, a good big revenue to carry on the Govern agreed not to pay more than 6.90 for raw sugar. At any rate, ment-anywhere from $120.000 000 to $140,000,000 a year of there was no supply of Cuban sugar available at a price far in revenue--and we should be gi-ring cheaper sugar to the con excess of what domestic producers were willing to accept for a sumer because of the effective competition growing out of the similar grade and the country suffered accordingly. great American industry being divided up among ·so many 1918 AND 1919. sources. as I have attempted to show. "The entire Cuban crop of 1918 was purchased by the United l\Ir. President, there has been a great deal said in the argu States and its allies at a price of 4.60 f. o. b. Cuba, although ment-and I am not going to elaborate it-about the purden the Cuban representatives requested 5.25 cents. As Bernhardt which a duty of 2 cents a pound would impose upon the American remarks in his Government Control of Sugar,' The tremendous people. The refiners have been putting out their propaganda to increases in the Cuban crops which have followed this .action that effect, and then, in the very next breath, they say that we are testimonials to the sound judgment displayed at that time are ruin"ng poor, downtrodden, oppressed Cuba. In one breath by . the Food Admin]stration officials.' It can hardly be we are adding 2 cents a pound to the American consumer of doubted that the voluntary agreement of the domestic producers sugar because of the proposed duty, and in the next breath the to take a 7.25 price for refined sugar had a considerable effect Cuban producer pays the freight, pays the duty of 2· cents a on the negotiations. T.he price finally agreed upon worked out pound. They have got to take one horn of the dilemma or the into a price of 7.45 for that year. The Cuban crop of 1919 was other. likewise purchased at a price, necessitated by advance in costs, I am frank to say that, as representing in part the State of of 5.50 f. o. b. Cuba. The corresponding refined price in the Louisiana, I expect the price of sugars to go up somewhat in United States was 9 cents. proport·on, although not absolutely in proportion, to the in creased duty of 2 cents, and I expect the pe.ople of my State to OFFER OF THE 1920 CROP. produce more sugar; I expect the industry to grow throughout " In August, 1919, the Cuban committee offered to negotiate the land. for the sale of the 1920 crop. No price was named, but it is · Mr. President, I have occupied the time of the Senate longer generally understood and accepted that at that time they would than I anticipated. I now ask to publish in 8-point type, have asked 6.50 f. o. b. Cuba, or an advance of a full cent on without reading, an interesting article prepared for me by the preceding year's price. This offer was referred to Presi Mr. Sidney Ballou, who repre ents Hawaiian interests in this dent Wilson, from whom the most energetic representations of country. It ls entitled " Cuban sugar in war time." the Sugar Equalization Board failed to obtain any response The PRESIDENT pro tempore. Without objection, it will whatever. By September 23 the price of sugar had advanced, he so ordered. the Cuban committee confessed that they could no longer con trol the action of the Cuban producers and their offer was with drawn. APPENDIX. FALL OF 1919. CUBAN SUGAR IN WAR TIME. " With advancing prices and the prospect of the relinquish (By Sidney Ballou.) ment of control at the .end of the year, the fall of 1919 again "Those interested in the production of Cuban sugar are con demonstrated how little we could depend on Cuban sugar in ducting a vigorous and well-organized publicity campaign time of stress. Again all Cuban sources of supply mysteriously against the domestic industry and in fa \Or of a lower tariff dried up and the country suffered another acute shortage. The on their product. Ainong the claims made the following is United States was divided into zones, the Hawaiian and beet- prominently featured: ' Experience during the recent war ugar production taking care of the entire country as far east showed the complete assurance with which the Unite 1922. CONGRESSIONAL RECORD-SENATE. 11033 boast that they bave refining capacity enough to supply the en- ' and dropped its price by the full amount of the added duty tire United States,. were left only a narrow strip along the with an intervening market decline besides. Atlantic seaboard, and here the famine was most acute. On ' " While under conditions as they existed the absolute control several occasions domestic beet sugar was called upon to re 11034 . CONGRESSIONAL RECORD-SENATE. AUGUST 7, but if that section of the bill related to the general industry in manner, however, there crept into these discussions a sini ter which I might have an ownership in one particular company, I note. It became rumored that unless Cuba would agree to limit should feel that it was my right-and not only my right, but my the crop the tariff would be fixed at a higher rate than 1.4 cents, duty to the citizens of Colorado, whom I represent in part-to and it might go up to 2 cents or 2! cents as a sort of retalia vote in their interest for an increase to 2 cents as against tion for the refusal of Cuba to comply with the demand of the Cuban sugars under this schedule. local sugar interests. Mr. CALDER. l\fr. President, following exhaustive public At that time the argument was not that this high rate was hearings and much discussion the Finance Committee adopted required for protection, but that it would be imposed to the the tariff of 2 cents per pound on imports of 1·aw sugar, which injury of Cuba. Of course, such a suggestion was received was the rate in the })ill as it came from the House. Owing to with surprise by Cuba, a country which we freed from foreign the preferential of 20 per cent granted imports from Cuba this domination at great cost of men and treasure, and which is at rate amounts to 1.6 cents per pound on raw sugar from Cuba. the present time our ward among the nations. It was shock .A tariff of 1.6 cents per pound on raw sugar is, to say the least, ing to the sense of fair play of the American people. high enough. It certainly should not be increased beyond that, .Cuba was unable either officially or unofficially to comply to 2 cents per pound on Cuban sugar and 2! cents per pound on with the demand for crop limitation, and let us see what bus sugar imported from all other places. Personally I urged the happened since. Finance Committee to adopt an even lower rate on this neces- . The present emergency tariff rate on Cuban sugar is 1.6 cents. sity of life, and I feel that any increase would be entirely un- Under that rate there has been no dumping of Cuban sugar justified and would. be resented by the American people. nor the ruination of the American beet-sugar industry. The From the standpoint of needed revenue the tariff rate of 1.6 beet-sugar crop of the United States has been sold out com cents per pound on Cuban sugar will produce a great sum. pletely, to the profit, if not the complete satisfaction, of the l\.iore than 3,000.000 tons of Cuban sugar will be imported this beet-sugar interests. It is all gone. Cuba has sold to this year. At 1.6 cents per pound, or $32 per ton, this amounts to a country since the first of the year more than two and one-half tnriff revenue of $96,000,000. This additional tax on a neces- million tons of this eason·s crop. She has sold practically all sity of life comes out of the pockets of the American consumer. of the surplus remaining from la t year of 1,200,000 tons, and To increase this rate to 2 cents per pound will add approxi- yet this country is still buying sugar. mately $25,000.000 to $30,000,000 to the cost of living of the Had the limitation of two and one-half million tons been American people directly, without in any way assisting in pro- made effective in Cuba, the United States would now be con ducing additional sugar from the cane fields of Louisiana or the fronted with a sugar shortage; and where would we turn for beet fields of the West. This also involves a still higher price the requirements of the consumers in this country for the re on all sugar produced Jocally, and simply means that millions mainder of the year had the crop limitation been adopted? of do11ars will be banded over in excess profits to the beet-sugar There would now be a mad scramble in the market of the world factories. A tariff revenue of appro:ximatey $100,000,000 on for sugar, and prices would have gone very high again at the this necessity of life would seem to be sufficient, and to go expense of the American consumer. beyond that would simply mean extortion. rrom the stand- Under the circumstances, we may be thankful that the crop point of protection the rate proposed by the House and con- limitation plan was not accepted by Cuba. Under the c!rcum curred in by the Finance Committee, namely, 1.6 cents, is more stances, it is claimed there is no justification for increa ing than ample. In fact it is the highest ever placed on this com- the tariff beyond the present rate, for no additional protection modity. It is 30 cents a hundred higher than the Payne law is needed, and the only real beneficiaries would be the specu and 60 cents higher than the Underwood Act. lators who have stocks of sugar on hand on which they would Dming the time the bill was under consideration by the profit by a big rise in prices. Finance Committee there were conferences of beet-sugar pro- To increase the tariff by 2 cents a pound on raw sugar im ducers of the United States, Cuban representatives, and repre- ported from Cuba, and 2! cents per pound on sugar from other sentatives of the United State Government. This was during countries, would inevitably increase the price of sugar by at the winter and the first part of the year. At that time the beet- least 1 cent a pound to every housewife and family in the United sugar producers knew that Cuba had in stock about 1,200,000 States. tons of the preceding crop. They knew that Cuba was in dire straits financially. They Sugar is now being landed in this country at from 3i to 3i feared that this store would be "dumped,, on the market of the cents a pound, without duty. It is sold at wholesale at 7 cents United States at a ruinous figure, and that this would depress per pound. the price that beet sugar and cane sugar produced in the United l\ir. GOODING. Mr. President-- States would bring. Then they feared also that Cuba would The PRESIDENT pro tempore. Does the Senator from New produce a very large crop this year, which would also be York yield to the Senator from Idaho? "dumped," and they saw their market for beet sugar disap- Mr. CALDER. I do. pearing. That was their state of mind at that time. They were Mr. GOODING. How does the Senator account for granu- apprehensive lest their efforts would go for naught, and to hear lated sugar selling for 7 cents a pound at the present time? It some of them talk one would imagine they feared they would is true that we are eating Cuban sugar now, I believe; but I alruost have to give their sugar away. will say to the Senator that the average price of sugar grown Animated by this idea, it was proposed on behalf of the beet- on the American farm, produced by American lnbor, and re sugar interests that the Cuban Government should limit the fined in American factories, was 5 cents a pound. sea:::on's crop of sugar to two and a half million tons. It was l\!r. CALDER. When was that? aro-ued that this total, together with the 1,200,000 ton in stor- Mr. GOODING. That was this year. All the beet sugar sold age in Cuba, would be sufficient for the year when supplemented for an a>erage price of 5 cents a pound. Now, the American by the sugar crop of the United States producers. people are paying 7 cents a pound for Cuban suo-ar, or, in other As a matter of cold business, it was held that the crop limi- words, it is costing them something over a quarter of a million tat.ion on Cuba would be profitable all around, because it would dollars a day to eat Cuban sugar. tend to prevent an. oversupply of sugar and keep up the price. Mr. CALDER. The Senator knows that the beet-sugar crop At that time, although the beet-sugar producers put on long was short this year. He knows that the beet-sugar crop is sold. faces and predicted the ruinat:on of their industry, they maue He lmows that Cuba is the only country within reasonable the uggestion that they would agree not to oppose a tariff of sailing distance o.f this country that bas sugar to sell to us, 1.4 cents per pound on sugar imported from Cuba. and tile Cubans have the market to tbemselve . If we had lim- One and four-tenths cents per pound suggested by the United ited the sugar crop, if we had permitted them to rai e only States industries, when the outlook, they professed, was very 2,500,000 tons this year, where would we be to-day? We per dark, mind you, would be enough to give them the protection that haps would be paying 10 cents a pound, because of the limita they felt the American industries required. That rate is even tion of the crop, for the sugar required to take care of our lower than the rate included in the bill now before us, and needs. represents a vast difference below the 2-cent rate now proposed. Mr. GOODING. The Senator has been very frank. That is There was a condition, however, to this offer. It was that exactly the situation. Cuba has a monopoly of the American the Cuhans limit this season's crop to two and a half million market, and there is not any scarcity of sugar in Cuba. The tons. If Cuba would do that the price of 1.4 cents per pound crop of this year is the greatest that they have ever produced, would be ample for the purpose of protection. It would seem almost enough for the entire consumption of the American to me that it would be ample under any condition. If the beet- people. It merely shows what happens every time a foreign sugar producers could get along with 1.4 cents in JanuaI"y they monopoly has conh·oI of American markets. It is the old, old can get along with that for all the time to come. In some , story, without any exception to the rule. 1922.· CONGRESSIONAL R,ECORD-SENATE. 11035 l\Ir. CALDER. Mr. President, when the sugar produced ~n [Western Union telegram.] America was sold and Cuban sugar was the only sugar avail WAUKEGAN, ILL., August '1, 1922. able for our consumption here, of course the price went up. Honorable Members of the Senate of the United States of America, It is perfectly natural. Then, besides, we have a rate of 1.6 Washington, D. 0.: cents pe!· pound upon sugar, as I have already pointed out, the We, American citizens of Lithuanian descent of Waukegan and North Chicago, Ill., at a mass meeting held in commemoration of ~be highest rate ever voted by the American Congress, in the present recognition of Lithuania by the United States of America, hereby wis h emergency tariff bill. But, Mr. President, sugar is now being to express our strengthened loyalty and our sincere gratitude to you landed in this country, as I said a moment ago, at 31 to 3.i for the recognition of the Lithuanian Republic. JOHN B. KRIS, cents a pound, and this is nearly 2 cents a pound more than it SAM GLASS, \Vas sold for in January of this year. MATH BUDR U ~AS, Mr. GOODING. Mr. President-- Committeemen. The PRESIDENT pro tempore. Does the Senator from New PETITIONS AND MEMORIALS. York further yield to the Senator from Idaho? 1\fr. LODGE presented a resolution of the congregation of the _fr. CALDER. Certainly. First Congregational Church of Greenfield, Mass., favoring an· ~fr. GOODING. Does not the Senator think the Americans amendment of the Constitution prohibiting polygamy, Which who own sugar plantations in Cuba are profiteering at the was referred to the Committee on the Judiciary. p ~·esent time when they charge 7 cents a pound for granulated l\fr. WARREN presented resolutions of the Board of Trustees sugar? of the City of Rawlins and the Board of Commissioners oi ~1r. CALDER. I think the Senator is mistaken in the state Carbon County, both in the State of Wyoming, protesti~g ment that the Cubans are charging, in Cuba, 7 cents a pound. against attempts to permit the Southern Pacific Co. to retam Mr. GOODING. No, l\Ir. President-- control of the Central Pacific Railway, etc., which were referred Mr. CALDER. Cuban sugar is being laid down in New York to the Committee on Interstate Commerce. to-day for about 3i cents a pound without the duty paid. When l\fr. 'VILLIS presented tile petition of Alliance Lodge, No. you add the duty of 1.6 cents to that you get something. like. 5! 178, Brotherhood of Railroad Trainmen, of Alliance, Ohio, cents a pound, or a little over that; and then the sugar is bemg praying for the repeal of title 3 of the transportation act of • sold wholesale in New York not by the Cubans but by the 1920, and that the Railroad Labor Board may be supplanted by Ame1:ican refiners, who are paying for the refining and then add the Board of Mediation ancl Conciliation, which was referred ing a cent more for a profit. I make no apologies or excuses to the Committee on Interstate Commerce. for these refiners who are charging a cent profit, but they are doing that because the crop is limited. REPORTS OF COMMITTEES. I make the point that it would have been more costly if Cuba had agreed to the proposition of the beet-suga_r interests that l\fr. WADS WORTH, from the Committee on Military Affairs, they limit their crop. to which was referred the bill ( S. 3408) to amend section 126 Mr. GOODING. Mr. President, if it had been possible to of the national defense act, approved June 3, 1916, as amended, enter into a contract with Cuba, it would not have affected this reported it without amendment and submitted a report (No. year's crop at all ; it would. have affected only next year's crop; 846) thereon. and the point I want to make with the Senator is that it is not Mr. STERLING, from the Committee on Civil Service, to Cuba we should. discuss; let us not discuss Cuba.at all, because which was referred the bill (H. R. 11212) to amend an act 85 per cent of all the sugar produced in Cuba is by American entitled "An act for the retirement of employees in the classi capital. It is not Cuba at all ; it- is Americans who now are fied civil service, and for other purposes," approved May 22, selling to the American people the sugar they have grown in 1920, reported it with an amendment and submitted a report Cuba by contract coolie labor, shipped in there under bond, (No. 847) thereon. 40,000 of them on the island to-day, increasing at the rate of FUNERAL EXPENSES OF THE LATE SENATOR CROW. 8 000 per year. So it is said, and that testimony can be found i~ the hearings before the Finance Committee. With that kind Mr. CALDER, from the Committee to Audit and Control the of labor producing sugar in Cubn, the .American people are pay Contingent Expenses of the Senate, to which was referretl Sen ing something over a ·quarter of a millon dollars a day for ate Resolution 332, reported it favorably without amendment, Cuban sugar. I have the exact figures, which I will put into and it was considered by unanimous consent and agreed to, the RECORD to-morrow. I had not intended discussing this ques as follows: tion to-night. There is no que tion about growing sugar in Resolved., That the Secretary of the Senate be, and h ~ hereby is, authorized and directed to pay, from the miscellaneous items of tho America. When he was Secretary of Agriculture Secretary contingent fund of tbe Senate, the actual and necessa ry expenses in Wilson said that we could grow enough sugar here for the entire curred by the committee appointed by the President pro tempore in wc•rld; and of course we can, but we can not grow it in com arranging for and attending the funeral of the Hon. WILLIAM E. petition with coolie labor sent to Cuba in bonrl. CRow late a Senator from the State of Pennsylvania, upon vouchers to be'approved by the Committee to Audit and Control the Contingent No American industry can develop under such competition as Expenses of the Senate. that I do not care whether it is the sugar industry or anything el se.' The old question comes up, Are we going to give agricul BILLS INTRODUCED. ture in this country a chance to live and develop? I do not Bills were introduced, read the first time, and, by unanimous care to make any further argument on the point now. consent, the second time, and referred as follows : l\fr. CALDER. I am in thorough accord with the Senator's By Mr. WAD SW ORTH: views in that regard. I have voted for every rate in this bill A bill (S. 3890) to amend an act entitled "An act for making providing for an increa e in the duties on farm products. I further and more effectual provision for the national defense, have gone through with the committee on every proposition and for other purposes," approved June 3, 1916, as amended affecting farm products. I follow the judgment of the com by the act of June 4, 1920; to the Committee on Military mittee in this; they have recommended that a rate of 1.60 is Affairs. enough on sugar to warrant its production here. This is a pro By l\Ir. SHORTRID.GE : tective rate. It is 30 cents a hundred pounds more than was A bill (S. 3891) to further amend section 4756 of the Re allowed in the Payne Act and 60 cents a hundred pounds more vised Statutes; to the Committee on Naval Affairs. than in the Underwood Act. I believe it is sufficient. If I did A bill (S. 3892) authorizing the State of California to bring not think it was, I would vote for a higher rate. It is 90 per suit against the United States to determine title to certain cent ad valorem based on the price Cuban sugar was sold for lands in Siskiyou County, Calif.; to the Committee on the in January of this year. It is 45 per cent ad valorem based on Judiciary. the price of Cuban sugar to-day. But, Mr. President, I wish By Mr. STANFIELD: to conclude my remarks. A bill ( S. 3893) granting a pension to Rebekah l\I. Presley; · The increase in the tariff would seem, from the foregoing to the Committee on Pensions. plain statement of facts, to be unjustified; would increase the By Mr. FRELINGHUYSEN: wholesale price to at least 8 cents per pound; and the people A bill ( S. 3894) for the relief of the De Kimpke Construc would have to pay 9 cents per pound, wjth little benefit to the tion Co., of West Hoboken, N. J.; to the Committee on Claims. American farmers or to American ~ndustry. A bill ( S. 3895) for the relief of Benjamin H. Richardson ; RECOGNITION OF THE LITHUANIAN REPUBLIC. to the Committee on Naval Affairs. The PRESIDENT pro tempore laid before the Senate a tele A bill ( S. 3896) fixing the gracte upon retirement of certnin "'ram from sundry citizens of Waukegan ancl No1th Chicago, officers who serYed in the wnr "·ith Spain, the PhHippine in Ill., which was ordered to lie on the table and to be printed surrection, or the Boxer rebellion, and tb P war aga ~mt Uer in the RECORD, as follows : many; to the Committee on Military Affain>. LXII-696 11036 OONGRESSIONAL RECORD-SENATE. AUGUST t,. RETIREMENT OF NAVAL AND MARINE BE-SERVE FORCE OFFICERS. FOR CHILDREN A'ND ADULTS. Mr. SHORTRlDGE submitted an amendment intended to be Broadly speaking, the work of the Government for the 'Indians proposed by him to the bill (H. R. 7864) providing for sundry is d.ivideu. into two main branches : First, the education of the matters affecting the ... 'avul Establi.shment, which was referred I~~1~n children ; and, second, the promotion of industrial ac to the Committee ,on Naval Affairs and ordered to be p1·inted. t1v1t1es among the adult::;. The Indian Service has about 5 500 WHAT THE UNITED STATES HAJ3 DONE FOR THE INDIAN. emplo!ees at th~ different agencies and schools, and 260 in' the Washrngton office. l\ir. SPENCER. I ask unanimous ·consent to ha-;e inserted in the RECORD in 8-point type a short article on· what the ~or ~he educati.on of the Indian children the Government mamtarns three ~nds of schools: First, the day schools ; sec United States has uone for the Indian, written by Mr. H. 0. ond, the reservation boarding schools· and third the nonreser Bishop. It ·contains a great deal of information on the In dian question. v~tion boardin~ schools. Last year there were 158 day schools w1ti: 5,296 pupils; 60 reservation boarding schools with 9,179 There being no objection, the article was ordered to be printed in the RE<'ORD in 8-point type, as follows: pup~ls; an~ 18 n~nreservation boarding schools with 9,372 pup1!s ; besides which there were 33,250 Indian pupils in the (From the National.Republican, August 5, 1922.] public schoo~, 5,530 in mission schools, and 137 in private WHAT u ·cLE SAM's DONE i'oa THE JNnIAN-THE GoVEa~M0NT, As Sol!E THINK, MAY HAVE DONE 'I'oo MUCH, BUT CERTAINLY HAS NEVER schools, makmg a total of 62,764 Indian children in schools of DONE TOO LITTLE E'OR THE RED MAN. all classes. (By H. 0. Bishop.) Half the day is devoted to theoretical classroom work and The other day I was strolling past the huge gray building the other half to manual training for the boys and the do~e tic known as the Interior Department, which is presided over by art for the girls. The Government teaches the Indian boys Albert B. Fall, Secretary of the Interior, when my attention u..seful trades by which to earn their living, and trains the girls was attracted by a dozen ot more bu ky Indians coming out to be home makers. Not long ago former Eresident Eliot of of the main entrance. They did not look stolid and solemn as Harvard, said that the Indian schools had the best curri~ula • I had supposed full-blooded Indians always looked. -111ey were of any in the United States. .Hundreds of Indian boys and smiling and chatting to each other in a most friendly and -con girls, afte~ graduati!1g fro!D the Government school!;), have tented sort of fashion. One large specimen of " the first families tak.en their -places m vari.ous walks of life alongside the of America" nonchalantly extracted a Perfecto from his vest whites. pocket and, striking a match on the front of the btti.ldinO' fired The Indian boys and girls go about their school work eagerly. it up and puffed on it with apparently as much joy and c~~tent They :ire hungry. for the attainment of knowledge .and the art ment as "Uncle JoE" CANNON gets out of his choicest ones. of domg somethmg worth while. The girls quickly emerge As I stood there watching the delegation lowly amble toward from the pathetically primitive ·and in~anitary methods of the White House I was acco ted by a woman who bore all the housekeeping of their mothers and grandmothers and remodel marks of a di contented " high brow." She want-ed to know if home life along .the lines ,of their white neighbors. They al o I didn't think it ·a hame and an outrage the way the Govern take e~pecial delight in learning all the ·details of dressmaking ment of the United States bad treated the poor downtrodden ~nd millinery. .Girls that formerly were ontent with array Indians of the country. 1 timidly l·eplied that I bad always mg themselves m blankets are now clothed in ai.'tistic home been m1der the impression that the Government had been more made . gowns and millinery that would be creditable in any than gene-rous in promoting the welfare and looking after the town ill the country. They soon become exceedingly proficient interests of the red man. She dismi sed me with a withering in athletics, such as tennis and ·basket hall. Many girls are glare and started up the street murmuring something that I .given training in the hospitals and develop into splendid nur es. didn't quite hear-perhaps it was best that I didn't. The bo,ys take to the learning of ·trades with the same avid ll'IIlST7H.A.ND INl!'ORMATION. ity that a duck takes to water. They are given courses in painting and .decorating, printing, blacksmithing and various "'Yell," I -said to myst-lf, "just what bas been done for the other trades that will .fit them for self-supportbig careers -in Indian? " I decided then and thE>re to get -some .first-hand .in after life. formation n_pon the subject. Entering the big Interior building ,A COM:PLJ!lX PROBLEM. I went to the third .floor, where Charle H. Burke, CommisSioner of Indian Affairs, has his office. Burke was formerly a member A few citizens of the country · real~e " bat a complex .Prob of Congre s from South Dakota, and served for a number of lem the education of the .Indian youth is. The Indians are dis years as the chairman o'f the CoDlJllittee on Indian A'ffairs. This tributed throughout more tban one-half of the States. Some experience, together with his residence ·n one of the Jndian of them group themselves within limited aTeas while others sections of the country, giY.es him unusual knowledge of the In live as individual families scattered over large territories. dian situation. I told him about the little incident with the Some are non-English .speaking people, just emerging from .a lady d?'vn in front of his building and smilingly asked, "How life of ignorance and superstition, .while others are almost about it?" ready to take up the .full duties of citizenshjp. In fact, there "With all due re pect to Ute lady, and others of her mis are all classes and conditions between the almost untouched guided and misinformed ilk, I am obliged to say that she does Apache and the independent Navajo of the Black :Mountains of not know what she is talking about," was his quiet reply. "I Arizona, and the intelligent, ambitious, forward-looking Clhero~ wonder if that lady knows," he continued, " that from the yeaT kees, Choctaws, "Rnd Chippewas. This makes a complex an.d 1872 up to this time this Government has spent a little more varied system of schools neees~aey. than $400,000,000 in educating and promoting the general wel :i;n the eaci.y da~s everything was .given gratuitously to the fare of the Indians, 11nd that in this good year of 1922 we are Indians, but the policy now is to furnish free supplies only to speBding more than 10,000,€>00 on them." Then looking me the old, sick, and indigent, as every able.bodiro Indian is ex squarely in the eye, he made this earnest and significant state pected to 'Support himself and family by his own efforts. In ment: " No other Government in the history of the world has 1915 free rations were is. uoo to 16,916 Indians. In :L921 the . treated a dependent people more liberally than the Go>ernment number had been reduced to 11,082, all the others supporting of the United -States has treated the Indian of this country." themselves. · . How I did .wish that .I had interviewed Burke before coming Many of the reservations eem best adapted to the live-stock m contact with that discontented and fault-finding soul down industry, .and the Government is doing everything it can to in front of the building! encourage the Tndians _along .this line. lt employs for this After chatting witl1 •Commissioner Durke •for half an hour· purpose 100 ·stockrnen. In 1921, 44,.847 Indians engaged in this he introduced me to E. B. Meritt, the assistant commi ·sioner industry, owning stock worth $30~000,000. The Government and the beads of important divisions. From these capable and furn~shes high-..gra~e sheep, cattle, andrhor es for upbreeding the energeti~ men I gatheT~ many interesting facts concerning quality of the Indian stock. The small Indian pony is being the Indian and what .J.as been and what is being done in bred with large horses more suitable for agricultural work. their behalf. I was amazed to learn, for instance that ·the The old-time Indian cattle made up mostly of hide and horns Indians under Federal jurisdiction have their reser~ations in a.re being graded up until they are now on a par with the practically every State we t of the Mis issippi River. Like profitable.herds of e~rienced whit-€ stock ·aisers. Sheep that the .average citizen .I had not the remotes~ idea as to·how many formerly were small and prod.need -very little meat or wool Indians there are m the country. Inquiry developed the fact have been bred up until they look like an entirely different that according to the late t reports there are 312,381 Indians breed. The pure-blood breeding animals for this development under Government upervi ion in the United States, con isling it should be remembered. are furnished by the Government of 165,031 full bloods and H7,350 mixed bloods. The Indian through the Bureau of Indian .Affairs. problem is perhap the mo t human problem with which the DIDIAN' AOil.ICULTQR.E. Government has to