1909. CONGRESSIONAL RECORD-SENATE. 9325·
becomes definitely known what revenue they should receive in order to Jere H. Brooks, reeompense the stockholders on a reasonable basis. Henry 0. Gearing, jr., Trusting that you will vote for and use every effort possible to have Elmer W. Tod, tliis bill passed, I remain, Thaddeus A. Thomson,. jr.,. Yours, truly, . W. A. •MEARS, Manager. Virginius E. Clark. Whereas the United States Supreme Court has held that in deter George W. Simpson, mining a reasonable rate for freight and passengers, the tribunal be Reuben R. Smith. fore which the case is tried must consider the cost of reproduction of the transportation line involved ; and Homer H. Norton. Whereas on the hearing of various cases before the Interstate Com Alfmi H. Miles, merce Commission the railroad companies have submitted evidence Reginald E. Gillmor,, that seems not to be governed by actual statisticsr but by the individual opinion of the person testifying; and Carl C. Krakow, Whereas this testimony has been of such character as to· warrant the James Parker,. jr., belief that it is greatly exaggerated a.s to the amount, and is apparently . Charles. F~ Pousland, put at as high a figure as possible, the method of producing such re sults appearing purely arbitrary; and John F. Cox. Whereas the information as to the cost of such roads lies wholly Grattan C. Diehm.an, within the knowledge of the railroad companies, and it is manifestly Harry A. 1\Ic01me. impossible for an individual litigant to secure even an approximate es- timate of the cost oi'. rebuilding a railroad ; and . Louis J. Gulliver, Whereas no· satisfactory knowledge upon this subject can be obtained Cortlandt o. Baughman~ until public authorities. make 'a detailed valuation upon a uniform · Richard B. Coffman, basis; and Whereas the Interstate Commer-ce Commission now has authority to Jonas H. Ingram, make such valuation, but has not the necessary money to have such Em-0ry F. Clement, valuations made ~ Now therefore be it Robert F ~ Gross. Resolvad by the tramportation buraau ot the Seattle
Mr. PAYNTER. I desire to state that my colleague [Mr. by which ·a reduction of 20 per cent was allowed on the impor BRADLEY] is ill and unable to be present this morning. tations from that island. Mr. JONES. lrfy colleague [Mr. PILES] is temporarily de The trade monopoly that was to have been ours has proven tained from the Chamber on important public business. a veritable will-o'-the-wisp. We ha-re received no benefits The VICE-PRESIDENT. Fifty-three Senators have answered other than would have come in the natural course of expand to the roll call. A quorum of the Senate is present. ing trade, while, on the other hand, we have poured a golden Mr. SCOTT. Will the Senator from Louisiana yield to me stream into that island year after year without receiving any for a moment before proceeding? adequate benefits from the concessions we have made. The pro Mr. FOSTER. Certainly. duction of sugar has increased from 975,000 tons in 1893 to Mr. SCOTT. I should like to have the Secretary read the 1,449,316 tons in 1907, all of which has been exported to this clipping I send to the desk. country. The VICE-PRESIDENT. Without objection, the Secretary In the history of Hawaii, and especially in the commercial will read as requested. treaty we had with those islands and their final annexation, The Secretary read as follows : we should read a lesson and a warning against this legislation. GOES TO THE WALL-STATE WINDOW GLASS COMPANY, OF BUCKHANNON, I think it may be well to go back and examine with the re FILES BANKRUPTCY PETITION IN FEDERAL COURT. sultant effects that first legislation enacted in behalf of for eign sugal'. PARKEJtSBURG, w. VA., June 14. A voluntary petition in bankruptcy was filed before Judge Dayton in When Hawaii was knocking at our door in 1876 for trade con the United States court here this evening by the State Window Glass cessions, an act of Congress was necessary before the treaty Company, of Buckhannon. could be made, inasmuch as the revenues were affected, and the '.rhe assets and liabilities were not stated, but the latter are in the debate, especially in the House, is full of interest, as indicating neighborhood of ~75,000, -it is said. Attorney F. C. Sifer, of Buck hannon, filed the petition. how conditions and the point of view have changed, as well as The VICE-PRESIDENT. The Senator from Louisiana will illustrating how completely the men who favored the treaty proceed. were mistaken or deceived. Mr. FOSTER. Mr. President, in supporting the amendment On January 6, 1876, Mr. Luttrell, of California, introduced a offered by the Senator from Florida [Mr. FLETCHER], I think I bill to carry the convention into effect. It was reported favor fully understand and appreciate the situation in this body. ably on March 2, and as the remission of duty on Hawaiian I know that the President of the United States favors this sugar was the principal change effected by the treaty, the ma provision of the bi11, and that he earnestly desires its passage. jority report was an effort to prove that the limit of production I know he does not believe that the importation of the amount had already been nearly reached; that the American domestic of sugar and tobacco provided for, free of duty, will in any producers could not possibly be affected injuriously; and that manner affect injuriously those industries in this country, tlte isolated condition of the people on the Pacific coast made it while, on the other hand, it will prove of immense benefit to imperative that this source of.supply be opened up to them. the people of the Philippines. · The Pacific States are to receive from those islands- I wish that I could agree with him, for I have the highest respect for his judgment and the greatest confidence and faith Said the report- in his wisdom and patriotism. My opposition to, and convic what they do not produce, and the islands are to receive from the Pa tions against, such legislation, however, are so deep and fixed cific States in exchange therefor what they do not produce. • • • As sugar is the principal article released, it may be well to consider it that I feel it due to myself to protest against the adoption of especially in this connection. Some fears have beeri expressed as to such a policy by this Congress. the effect of this release from duty on the like products of the United I am opposed to this paragraph for many reasons~ In the States. * * * It can not be said that the admission of Hawaiian sugar will have the least influence upon the sugar market in the United first place, I am opposed to a policy on the part of this Govern States, for it is impossible that this sugar can in any way come in com ment which will admit to the American markets any products petition with it. * * * Imports of sugar from all countries into of the Philippin.es, whether manufactured or agricultural, free the Pacific States in the fiscal year ending June 30, 1875, was 66,446 470 pounds-33,000 tons-while the importation from the islands to 'the of duty, when such products come in competition with similar Pacific States was 17 ,888,000 pounds-8,944 tons-a trifle over one products raised in this country, mainly on the ground that the quarter of the whole importation; so it will be seen that the whole American laborer, manufacturer, and farmer can not success importation from the islands can not affect the market in the Atlantic States. It is not possible that the Hawaiian sugar can ever find its fully compete with the cheap labor of the Orient. way into the Atlantic States-the cost of transportation would exclude In the second place, I am opposed to such a policy, because if it ; nor can there be fear of any great increase in the production of this we admit annually 300,000 tons of sugar, 300,000 pounds of sugar, in view of the steadily diminishing populatron of the islands. wrapper tobacco, 2,000,000 pounds of filler tobacco, and 70,000,000 cigars, such legislation must logically culminate in the admission Much weight was attached to a letter from the Secretary of of all the sugar and 'tobacco raised in those islands free of duty. the 'l'reasury, in which, after pointing out that this country Finally, my opposition is based on the belief that such a policy only imported 8,944 tons from the islands in 1875, he said : will ultimately result in the permanent annexation and incor The lack of natural facilities for developing the production of sugar poration of those islands and their people as an integral part of in the islands "\YOuld keep down the future importations. our territory and of our people, and thus destroy all hopes or He also placed the limit of stimulation ·as a · result of free prospects of their independence. Mr. President, if -the course we are about to follow was at entry into this country .at 12,500 tons. all uncertain, if there was no warning light to guide us upon l\Ir. Wood, of New York, who opened the debate in favor of the troubled shore, if our fears were merely born of doubts, the treaty, said: nnd this were in the nature of an experiment, I would willingly There has been a gradual extinction of population, a gradual obliteration of the natives of the islands, lea>ing them as it were a prey to some more defer to the judgment of the President and his advisers. powerful nation to come in and occupy the ground which Providence has But there can be no question as to what the future holds determined in His wisdom that they shall occupy no longer; and yet in store when we take this step. An accurate estimate of the gentlemen are frightened at this product of a handful of starving na tives, lest it will interfere with the revenue of this Nation. '.rhe popu results to be expected politically, industrially, and economically lation has decreased from 400,000 in 1779 to less than 130,000, includ can be had when we consider other experiments where the con ing 6,000 foreigners, in 1875. And it was the native population that ditions were almost similar.. furnished the labor. No sugar can be produced except by the manual labor of the natives of those islands. 'l'he decrease in the population is Let us first see if our experience in other tropical adventures a painfully remarkable fact. In round numbers, omitting fractions, in undertaken in recent years do not justify the gravest fears 1779 it was 400,000, 1832 it was 130,000, 1850 it was 84.000, in 1853 it was 73,000, in 1860 it was 69,000, in 1 G6 it was 62.000, in 1872 it for our domestic industries as a result of this proposed legis was 49,044, of which 6,853 were foreigners, leaving only a little over lation. We will first begin with Porto Rico. When that island 42,000 as a total native population of the Sandwich Islands. was acquired in 1898, as part of the booty of the Spanish war, the production of sugar amounted to 53,000 tons. This has ex The United States Government has continued this narrative of panded by leaps and bounds until the crop of 1907-8 reached "a vanishing race" from the place where the gentleman left off 217,000 tons, an increase of over 300 per cent in ten years, and in 1872. The sequel is even sadder than the narrative of Mr. it is still. increasing. Wood when we reflect what it means to American labor, Ameri Most Senators are familiar with the case of Cuba. You will can ideals of living, and American institutions. The story has recall ilie tearful stories of distress; the humbug about the been brought down to date, and later on I am going to read a moral obligations of this country; the glittering promises of brief extract from what the Bureau of Labor has to say about it. trade;· all of which was to be our own, in return for concessions There might have been some excuse for the legislation by to Cuban sugar. In response to those appeals the Cuban reci which that treaty was entered into, however, as it was our procity treaty was entered into by the Fifty-seventh Congress, first experience in exploiting the Tropics, but there is none for 1909. CONGRESSIONAL RECORD-SENATE. 3327
this. Congress, too, was then influenced by ·aomestlc conditions l .At page· 11 it :say.s: that no longer exist, as is amply indica.t.ed by that debate. Not <0nly ls the plantation w-0rk'.lng force uverwbelmlngly .Asiatic, ·bro: There was at that time 'but one railroad to the Pacific and ill ?- 'S ~ondary _Asiatic po_p~ation, u~_11g Jargely · ~n 1he first and supp~y- . . . . • f th .,, ' mg its n eedS. has come into the lslands, has IDvaded all lines of m- openmg the discussion rn favor ·o the treaty e .uope was .ex- dustry, and the two combined now .form the larg~st elem~t in the -total pressed that th.e child had ah·eady been bo:rn wh-o would li>e to · popu~ation. From a total Asiatie popula:q.on of 'less than 6,000 in 1878, see other roads comp1eted while the support of western -Con- formu;ig !>nlY 10.~ per .cent of the po_pulation -of the lslands, the number ' . . of Asiatics had .mc:reased to 18.000 in .1884, and formed over 22 per gressmen was sought -on the plea that at the preceding session cent of the total population. By 1890 the foreign-born Asiatics had friends ~f the treaty supported the bill to. &tend a telegraph increased to 27,000, .and
executive documents for the Fifty-third Congress. In a table .Mr. President, this policy and its disastrous results ought to 'Of 22 unincorporated plantations, with an estimated value of bring to reflecting people a realization of the consequences of $3,000,000, the various interests are classified as follows: Amer such ill-advised legislation and mistaken policy. ican, $415,000; ,Hawaiian-born Americans, $500,000; British, The history of the· development of ca_ne culture in these $1,195,000; German, $515,000; Norwegian, $375,000. tropical islands indisputably establishes the fact that they are Then follows a table showing the holdings in the 40 in susceptible of unlimited production; . .that the beneficiaries of corporated planting companies, with a capitalization of $28,- such development are a few exploiters; that labor is abundant 594,695, which is divided as follows: American, - $18,594,695; and cheap; that th~ white man can never colonize them, and Hawaiian-born American, $2,960,280; American Hawaiian (half that the system produces but two classes, the very rich and the caste), $88,900; British, $4,303,218; Hawaiian-born British, very poor, or the master and the serf. $196,200; British Hawaiian (half-caste), $160,098; German, What has been said about the effect on the sugar industry $1,233,935; Hawaiian-born German, $39,165; German Hawaiian and industrial conditions in these islands, especially Hawaii, (half-caste), $2,058 ; Hawaiian, $38,991 ; Chinese, $259, 700 ; will apply with equal force and truth to all the other islands Chinese Hawaiian and Portuguese Hawaiian (half-caste), of the sea we have been gathering in our train since Admiral $34,000 ; Portuguese, $49,500; all other foreign, $3,550 ; total Dewey s_teamed into Manila Bay that May m9rning eleven years amount stock issued, $27,964,290. ago, and the American people proceeded forthwith to forsake the The statement issued by the Hawaiian and California Sugar warning of Washington and the fathers; decided to extend our Association, January 1, 1906, places the total amount then in institutions to the heterogeneous races of the Caribbean and the vested in the Hawaiian plantations at $83,000,000. Pacific, and, flying in the face of universal experience, to I wish now to invite the attention of the Senate to the neglect this great industry at home, while indulging a pleas enormous loss in revenue that this country has suffered from this ing fancy beyond the seas.· · so-called "reciprocal trade arrangement." The duty remitted Still, using Hawaii for the purpose of comparison, as con on Hawaiian sugar, according to the statement furnished by ditions in that group more nearly approach those in the Philip tlie Bureau of Statistics, by this Government from 1876 to Jan pines than do those of any of our other colonies, I call a tten uary 1, 1909, aggregates $193,151,634, and there has been a tion to the fact that the Philippines have a population of regular and progressive growth of these annual remissions, be 7,635,426 as against 200,000 in Hawaii. There is an area of gim;ling with the year 1877, when they amounted to $986,475, 73,345,415 acres awaiting exploitation in the Philippines, 68,- until they reached the sum of $17,241,130 in 1908. 405,415 of which are owned by the Government, and the evidence From the standpoint of trade alone the experiment has been shows that 50,000,000 acres of this land are richer than the disappointing if not disastrous, as will be demonstrated by the lands of either· Hawaii or the United States. following facts : According to the reports of the Bureau of Labor, the number In 1876, the year of the treaty, the imports into those islands of persons in these islands engaged in gainful occupations is amounted to $1,811,771, while the exports amounted to $2,241,- over 3,000,000, or more than 43 per cent of the civilized popula 042. Almost all of this trade was with the United States. tion. The average monthly earnings of all classes of both sexes In 1898, the year of annexation, the imports from the United is $4.50 per month in gold, including rations. The number of States were $8,695,592, and the exports to this country amounted males engaged in agriculture is over 1,000,000; in manufactur to $17,256,084, while in 1908, the importations from the United ing and mechanical pursuits nearly 250,000; in domestic and States amounted to $15,038,155, while the ·exi>Orts· to this coun personal service nearly 500,000; and in trade and transportation try· ·had grown to $41,636,505. The value of the· -imports those over 150,000. islands received from us that year was almost two and a half The method of cultivation in the past has been of the crudest millions of dollars less than the duty that would have been col and :ffiOSt primitive nature, just as it was in Java and Hawaii~ lected on their sugar for that year alone, had their products not before the Dutch Government and our own introduced scientific been admitted to this cotmtry free. In other words, we give and modern methods into those possessions. From a statement them more than a dollar in order to sell them a dollar's worth of the Manila Bulletin which is appended, it will be seen of goods. that with the introduction of the steam plow and modern These .figures show at a glance how much thei.'e has been in methods of cultivation the production per acre in the Philippines this arrangement for the Hawaiian planters and how little for will equal that of Hawaii and exceed that of Java. And why the people of the United States. not? The soil, the labor, the climatic conditions are just as A summary of the foregoing facts shows that since· the ratifica favorable in those islands as in the -groups mentioned. tion of the treaty with H awaii the product\on of sugar in those With these adrnntages and an additional bonus of $10,000,000 islands has increas d from 9,000 to G00,000 tons. . The duty in the way of remission of· duties, which goes .to the producers remitted on the sugar imported into this country during that of sugar and not to the Filipino people, it is almo t an assured perjod has amounted to $1!)3,15_1,643.77, and·_-the amount 're fact that the production in the Philippines will reach the 300 000 ·mitted during the year 1908 was $17,241,130, a sum greater by tons in a very 'few years, and when that amount is reached, I more than $2,000,000 than the entire exports to those islands have no doubt but that all tariff restrictions will be removed 'duripg that year. . from the importation of sugar and tobacco· into this country : To whom has this money gone? To a little coterie of sugar free from those islands. This looks to me· logical and inevi· planters, some of whom are foreigners, and the others American table. citizens who are exploiting the islands, and to the Japanese anq The most avowed partisan of the Filipino must admit that as Chinese, who constitute the bulk of the population. the sugar industry is developed in those islands the industry is .Millions of dollars, the product of-American skill and labor, threatened to that extent in our own country. There will be are annually-drained from the ·wealth of this country to main no diminution of production in_ Cuba, none in Hawaii, none in tain a few individuals in their ever-increasing riches and to sup Porto Rico, but not so with our domestic industry. port this Asia tic labor. In a few years the demands of the country for sugar will be Instead of establishing an American colony, we have es supplied from these sources, while that great industry in this tablished a colony of Asiatics. Instead of opening up the country must necessarily dwindle away and perish. wonderfully productive fields of those islands for the American Why should we enter upon such a policy? We have already citizen to build American homes, we have actually opened them gi>en the Filipino free markets in this country for all his non for the Orientals. Instead of planting a colony. where the competitive products and have reduced the tariff 25 per cent on spirit of American institutions wm live and breathe and grow his sugar and tobacco. strong as the year~ roll by, we ha>e been building up a colony It is true we have conquered these people; that we have of Orientals, who --a re opposed to every form and feature of our taken possession of their territory, and national honor and na system of go>ernrnent, and who add nothing and can add noth tional justice demand that we should- treat them fairly and ing to the support or perpetuation of our republican institutions. justly. No white race is taking the place of the vanishing Hawaiian But our first duty is to our own country and our own people, people. No American citizens are there to add to the wealth and there is no law of good morals or of nations which re and prosperity of our country in time of peace, or to defend our quires us to sacrifice our industries or our people to them. country's flag in time of war. . If it be for trade and commerce alone that this sacritl.ce is Should the rucle aJarum of war be sounded over our land and to be made, then I submit that after ten yea rs' po ession of the the President of the United States issue his proclamation for islands our experience does not warrant or justify such a · volunteers to defend the country's honor and to uphold our policy. nation's flag, not a battalion of American soldiers could be mus The statistics submitted by the Department of Commerce and tered in those far-off possessions. Labor, which I herewith append, show that the imports from 1909. CONµRESSIONAL RECORD-· SENATE . . 3329
this country for the year 1907 amounted to. $5,09(),000, whereas Natural Resourc;es held in this city a few weeks ago. Not only their exports to . this country amounted ·to some $12))00,000; have child:1-'en tl;ten bo~n, but men who participated in that de while the last British Consular ReportS, an extract from which bate ·and are still here· have lived to 'see half a dozen great is also appended, shows that the trade of these -islands in railway systems span ·this continent to the coast, all Clamorous· cotton goods and y~rus goes almost entirely to. Great Britain ~or the trade of the Hawaii.an planter, who lays his sugar down and Japan; that their trade in iron and steel is ahriost equally at Missouri River points and competes ev.en in New York with divided between -0-reat Brita1n and this· country;' that the trade , the· home producer for the American trade. - in horses and cattle is exclusively "7ith Australia and China; We are no longer the strident young giant of the West. We while .Australian flour has almost banished A.mei'ican flour can no longer frankly and buoyantly disregard the economic from the Filipilio. market, the importations having . inc~eased and natural laws, feeling that there is an unlimited reserve to from H per cent in 1903 .to 62 per cent in 1907. · - · · draw upon. We have filled up our waste places with a crowd Now, Mr. President, I ask, in all fairness, should our own ing -population, whose wants are now taxing Congress to pro people, in the face of this showing, be' called upon _- to make vide a revenue; we have joined the old nations of Europe in a this tremendous sacrifice for the Filipiiro ~e? _ · scramble for colonies, and are now engaged in reaching out into It will be seen by reference to the_appencjix that instead of the Pacific, beyond Hawaii, toward the teeming coasts of Asia. having deprived them of a market, we have al"7ays taken the I have heretofore dealt with the commercial and industrial bulk of their sugar, even under Sp~nii;;h rule, although instead aspect of the Philippine problem. I shall now deal with it of turning their duties into our own: ·coffers, as ·the Spaniards· from a broader point of view. did, we have remitt~ a _q-µarte.r of this tax to assist their In my humble judgment, Mr. President, the ratification of planters, and sent back all that actually was ·collected to· Manila, the treaty of Paris,_ by which this Government acquired the to be applied to the expenses of their local government. Philippine Archipelago was, next to the fifteenth amendment . This of itself is a .heaTy competing burden to· place upon the to·the Constitution, tb,e greatest economic and political blunder· American producer, who annually makes a riew crop with the that can be charged agaip.st. the .dominant . party. most expensive class of agricult:ural labor. · . I believe that the fundamental principles upon which this You now intend· to inflict upon the Americaµ -suga-r producer a Republic is-founded can only be. supported, maintained, and per-· double calamity. You propose to strike ·off all -of the duty just petuated by a people capable of self-government; that there is when the Filipino planters are beginning to follow in the path of no other people upon the face of the earth·except the white man modern and improved methods (see appendix-)_:_when· they are competent to exercise this highest type of human government, beginning to supplement their farm labor costing 10 cents per arid tliat whenever we "seek to fucorporate into the body politic diem with steam plows that do the work of "100 carabao and o:t this Republic any· people except the Caucasian we · weaken 50 men and are operated for about 20 pesos ·per day." · the powers of our people and our Government. Whenever we Mr. President, in pursuit of the mistaken policy we are now attempt to govern a people other than· by their consent, we de asked to further enlarge upon, in the .interest of the Philippine part from the constitutional landmarks of . the Republic and Islands, this country has already remitted to. the Hawaiian menace the basic and struCtural priilciple of our free institu group, to Porto Rico, Cuba, and the Philippines the enormous tions. , · . - · · · sum of $274,544,256.77 for sugar alone.in a comparatively few · Sovereignty under our form of government is lodged in the years, and of this sum ·$32,891,304 was remitted in the fiscal people. I do not want that sovereignty lodged in any other year 1908. hands than those of· the, white man, because I honestly believe Had the proper duties been imposed upon this tropical sugar, that only in ·such· hands can the destiny of our· Republic be· produced by pauper and cooly labor, and brought into this coun safely confided. try to compete with the American :farmer and laborer, we would I do not want this Government to hold any colony or any now have a surplus instead of .an· empty Treasury; if we applied possession or . any territory to which the white man of our to sugar and the other products of these islands the rates country can not go and build up his home, and carry with him exacted of our best customers among the nations of the earth and plant there the great and subliine and inestimable principles" when they send their produce to our shores, there would be, in of our Republic. · . · contrast with the paralysis that now marks all _of. the depart · Mr. President, it is utterly impossible to build up a colony of ments for want of funds, a handsome balance in the Public Americans in any of the islands of the Philippines. Climatic Treasury insuring against a suspension of public work, and the conditions forbid it, and local environments would prevent it. Senate would not now be in a quandary as to what it shol:lld I have visited those islands, Mr. President, and their agricul tax next, inheritances, incomes, or corporations, in order to tural possibilities are practically unlimited. Those people are raise sufficient revenue. strictly Asiatics. They are Asiatic in their national life, in Does any Senator believe that this or any other nation can their civilization, in their hopes and aspirations, in their social afford to indefinitely continue such a drain on its resources? usages and practices, and in their political thought. We can We saw when the sugar tariffs of · Europe were being dis never impress upon those people the civilization and national cussed a few days ago that not one of those countries admitted ideals and aspirations of the western world. the products of its over-sea possessions to the full benefits of I saw the splendid and.humane work which our President, as the home market, and that France is the only one that allows governor, inaugurated years ago taken up and carried on by the her colonies any concessions whatever. civil officials of the insular government' I saw courts estab When we began this short-sighted policy, a third of a century lished for the administration of law and justice meted out to the ago, there were some palliating circumstances, as we have seen, poor-peon and rich landowner alike. I saw schools established but they have ceased to exist at the present time. all over those islands, .and thousands of children given the ad At the time Hawaii was knocking at our door our country vantage of a public~school education. I saw the humane philan spread away in almost unbroken stretches from the Missouri to thropist at work in every direction, and a corps of able and the Rockies, and· herds of buffalo roamed the plains not . yet learned army and civilian physicians mastering the deadly wrested from hostile bands of Indians. Bismarck, who was plagues that for centuries have atH.icted those islands. overshadowing Europe like some Colossus, had just said that And yet, Mr. President, I saw a discontented, a restless, and no other country could do what we had accomplished-disband a sullen people, whose opposition to our control was as great, if the two greatest armies the world had yet seen without disturb not greater, than it had been to the Spanish rule, and who would ance, and find homes for all of them, as well as·for every immi- in a day throw off American supremacy were it not for the grant who reached our shores. · presence of the American Army in sufficient force to repress any Land was abundant, distances immense,. m:ta .transportation uprising. · crude. Our natural resources were as yet almost untouched, For over three hundred years these people were under the while many industries that to-day support millions of our people dominion of Spain. Whether right or wrong, they believed and annually add other millions to our wealth _had scarcely that they would have achieved their independence had Dewey's started, much less been developed. The American sugar in guns never been heard over the brigh_t waters of Manila Bay. dustry had not even made its appearance in the West or on the They believe to-day that they are capable of governing them coast, except as an exp~rimen t. sel"res in a manner best suited to their own advancement, inter To-day all the conditions that prompted that ti·eaty are est, and happiness. Even " as the hart panteth after the water changed. From less than 44,000,000 our population has more brooks," so these people yearn for freedom ; and they will never than doubled; herds of buffalo no longer roam the western be contented or satisfied until they achieve that freedom and plains; the bands of hostile Indians have followed them to the their independence. - "happy hunting grounds," and our lands have all been taken. But what appealed to me as an insurmountable obstacle and Our forests have been cut down, and alarms are still vibrating difficulty in the solution of the Philippine problem was the bit that were sounded at the C.ongress for the Conservation of our ter and irreconcilable race antagonism which exists bBtween
XLIV-.209 3330 . OONGRESSIONAL RECORD-SENATE. JUN~ 16, the Ame!-'ican and the Filipino. This prejudice is found in all t In response to an ove1-whelming demand of the American stations arrd conditions of life. Instead ot diminisbjng it is be- people, we excluded the Chinese from our shores because his coming more intense and acute. It is as deep, if not deeper, and p1-esence was a menace and a danger to the Ainerican laborer. more bitter between the American and Filipino than between . Our Government is to-day making an effort to circumscribe, the white man and the negro in the South. It is: deep seated if not prohibit, the Japanese laborer from our country. and ineradicable. It is not only racial rivalry, but racial The same objection would be offered to the Filipino as to the hatred, and will never be extinguishea, eradicatedt or mitigated. Japanese and the Chinese if he would come here in sufficient On the contrary, in my judgment, it will grow and increase as numbers. Our tariff laws are specially constructed so as to the years go by. prevent the free importation of Chinese and Japanese products General Smith, the retiring governor-general of the Philip- in competition· with those of our own land. If we had no such pines is quoted as saying in the course of a ree~t address be- provision in our .tariff lft:w,. our cquntry would be inundated by fore the Quill Club, of Manila: the- products of these two countries.. What paradox it is to levy a tariff upon articles. produced The man who will soon occupy the place I am now filling will have :a to contend with a thousand and one difficulties. Slowiy but snrely, and in Chiil.a . ~nq jap~n. i~ oruex to.. exclude the products of the much to my deep regret, I have watched for the last few years the cheap labor of th9~e co-qntries from competing with the labor growing separation between the American and Filipino races. It is developing into bitter race- prejudice. of this country ai;i.d yet a.qmit the products of the same class of labor from the Philipp~e Islands. to come in competition The same idea is forcibly expressed in the following extra.ct with similar products r~sed. in this country by American Iabor- from a recent editorial in a Filipfno newSP<-'lper : ers and American farmers! Give the secU:rity to capital and it will seek those fields of The least effort to ·promote the interests. of the country was at first investment which will. yield the best returns. Protect with the receiveCI with gratitude, for such an act of ge:nerosity and justice was most deeply felt. With childlike simplicity the people listened to hope United States Army the sugar and tobacco exploiters in those ful assurances which fell like a benevolent rain upon their hearts. islands, and at the same time permit their pro.ducts a free mar-' .~hey applauded them and o~ered their help- to give them practical ket in our country; and you will find tha_t capital not only from form. * * • But now the racial division, which was nothing but a dividing line- in the beginning, has grown into a. mountain range-, this country,. but from England and Germany, organizing into ~P.ru::ating the nation from tbe Government, the Americans from the powerful corporations and flowing to. those islands fo1· invest- Filiprn_os. ment. · · The Anglo-Saxon, Mr. President, is a masterful race. The With the soil, the climate, and labor conditions, development dynamic forces of his civilization brook no opposition, and Will be phenomenal, and in a. few years. the similar- indus~ .wherever he plants his foot, whether upon line or pole, he wm In this country will be annihilated. The great 3.gricultuial in ·dominate and rule; and as long as this Government holds pos~ terests of this country ca·n not compete with the natural and session of that archipelago, just so long will the Americans labor conditions of those islands. 'l'he American laborer antl rule and dominate that p.eople as a subject race. If he does the American farmer can not compete with the peon la.J:>or· of not rule the Filipino, the Filipino will certainly rule him. In the Philippines. m~ judgment there will never be a political or social equality l\Ir. President, stimulate the development of the sugar and between the two peoples. tobacco interests of those islands and open up free markets to The only method, however, of maintaining American suprem their products in this country and similar industries in America acy is by force, and the presence of the United States Army will be overwhelmed and destroyed. is not only required for the present, but will be required as long .Mr. President. we can not raise sugar in this country, beet as we hold these possessions and maintaih our supremacy over or cane, in competition with the cheap labor of the Tro.p.ics. these people. It is no use to disguise this fact. The Philippines to-day, with Mr. President, I do not like the idea of goyerning any people proper cultivation,. can ship their sugar into this market and 11ay by force and that force the American Army. It is contrary to the tariff and undersell the American prodnce.r; and I predict the genius of our institutions ; and if we must keep the people that with the encouragement of free trade this sugar in less of those islands in subjection, it will not only cost us millions than a decade will destroy the immense beet and cane interests and hundreds of millions of dollars and the untimely death of of this country. thousands of our soldiers, but I am afraid that it will gradually And, Mr. President, ~f the Philippine Islands themselves will undermine that respect and weaken that confidence which we not furnish sufficient labor for the full development of these have for a free government. agricultural interests, mark my· prediction, Japan will do it, While the loye and confidence of a people can not always be just as in· Hawaii; or- if J"apan does not do it, the laws of
won by the application of just laws and fair treatment1 yet this country will be so changed as to admit the Chinese. the great mass of people a.re often influenced and dominated . The same virile forces which opposed Chinese immigration through, their business and commercial interests. Open up the into this co.nntry will not be present to make similar opposition rich markets of this country to the products of the Philippines to their introduction into the Philippines. The great labor and we will in a very few years establish a commercial union interests will not be there to oppose them. There will not be which, in my judgment, is bound to beget a political union. the potential opposition of the white man; but, on the other hand, Unite the· people of these islands to us by the ligaments of large corporate interests that have located there will be de trade and the bonds of commerce; complicate the fiscal sys manding that the bars be lifted to admit Chinese laborers to tems of the two countries; establish interdependent trade rela cultivate and develop those- fertile fields. tions between the two peoples by tariff laws, navigation laws, 1\Ir. President, give these people free markets in this country; and other laws, and you make it almost impossible to sever just as we did Hawaii under our first convention, and; just the political ties which these conditions have produced. The as in that case the concession was followed by annexation, commercial interests of this country and of the archipelago, as l\fr. Garfield foresaw, -s<> when you give the Filipinos the looking to their own selfish aggrandizement, will insist and markets of this country free there will be interests springing up demand not only the maintenance of a commercial union, but advocating a pe1~petual political union between this country and a closer political union than now exists. those islands. The history of the Philippines will be exactly what the his These interests will oppose the independence of the islands. tory of Hawaii has been-we will have no Americans there ex Their greed and lust for money and markets will be the main cept those who go to exploit these islands. We will have no spring of their action. These island interests will find able great middle class of white men to enrich them by their labors cohorts and.powerful;-allies•in this country. The refining inter and their endeavors. We will have but two classes-th~ very ests, backed -up by the· great sugar trust and the great tobacco rich, composed of the American, the English, and the German trust, want free raw materials, and with their potential influ exploiters, and the very poor, composed of the native Filipinos. ences will strike hands with similar powerful interests in the ·we will have the product of oriental labor brought into com Philippines, and demand not only a closer commercial union, petition with the products of our own labor. We will have the but a closer political union. . sugai'." and tobacco and other agricultural products of that coun Mr. President, do not misunderstand me; as long as our try coming into competition with our own, and you practically Government has .possession and hold these islands I want bring in the Oriental himself when you bring in his products these people to receive a: square deal; I want to see them in fre_e competition with the American laborer and the Ameri treated justly. and every a~d. given theID; lo. the improvement of can farmer. their social and govternmental conditions, and every encourage- 1909. CONGRESSIO,NAL :RECO;ItD-SENATE. 3331
ment extended them for the development of their business and in the domestic-sugar industry is shown in the following table commerce. I wish to see everything done to promote social order taken :from the third report of the Bureau of Labor on Hawaii. for the establishment of orderly conduct in the affairs of the The Caucasians mentioned were usually employed at special Government. But what I do mean to say is that I do not wish tasks requiring technical skill, which accounts for the higher to see any interest of that country erected upon the ruins and wages. . destruction of similar interests in my country. I do not wish to see the farming interest of the American sacrificed to the farm Aver ing interest of the Filipino. I do not wish to see the sugar in Em Days age terest forced into 'such an unequal contest. It is not fair to the Occupation. ploy Sex. Nationality. per wages ees. week. per American interest; it is not just to our own people. No other day. government in the world giv.es the people of its colonies a pref erence, or even equality, in its own markets with its own people. Mr. President, reverse this proposition. Suppose these islands Field hands ...... 1,2~ M. Chinese ...... 6 $0.65 M. German ...... 6 . 71t were a manufacturing instead of l m agricultural people. Sup 338 M. Hawaiian ...... 6 . 74 pose the;\' had cotton, wool, silk, paper, machinery, and other 1 F...... do ...... 6 .46 . manufacturing industries, as in Japan; would the great manu 1 M. Part Hawaiian .... _.. 6 :77 2 M. Italian ...... 6 1.00 facturing interests of this country for a moment tolerate the 11,820 M. Japanese ...... 6 .65 importation of the output of these factories .:tree of duty? 2,091 F...... do ...... 6 .4~ There would be thunders of protests :from every labor union 3,039 M. Korean ...... 6 .6.5 44 F...... do ...... 6 .49 between the Atlantic and the Pacific denouncing such a policy, 1 M. Polish ...... ·-······· 6 .84! and every manufacturer from every section of the country 1,005 M. Porto Rican ...... 6 .64 .would justly and loudly protest against such unjust legislation. I do not wish this Congress to adopt any policy which will tend to strengthen the political ties between this country and How completely orientalized the islands have become is the islands and which will make it more difficult to sever the -also shown by the following table, giving distribution of labor bonds that now unite us. No matter how long we remain we on Hawaiian sugar plantations, by groups of occupations and will not establish an American colony in those far-otI waters nationality, 1902 and 1905: -friendly and loyal to our free institutions, but, just as General -Reagan said as to Hawaii, we will establish an Asiatic colony, Me Nationality . A=- C~ti- Irriga- Manu· chan- . bound· to us by no ties of race or blood, hostile and antagonistic, tion . . vation. tion. facture. tr~da~. and a colony that in years to come will prove a source of weak ness instead of strength to our people and Government. ------·:- --t-----1---,____... --- Mr. President, I want this Government to get out of the Phil Caucasian: a ippines. Their people and enfeebling climate ofl'er ·nothing of 1902 ...... 173 107 51 146 129 honor or profit to our people. We could not withdraw while 1905 ...... 195 96 38 146 114 Portuguese: the insurrection lasted ; and our people then were also fired with 1902 ...... -...... 43 2,011. 54 63 148 the appeal that while any of our sons lay buried along the sands 1905 ...... 43 2, 076 49 85 154 of Luzon no other flag should float aboYe them to greet the Porto Ricans: 1902...... 4 1,962 1 10 18 morning in the Philippines. ~ 1905...... 4 1, 722 . 70 4 Since then we have learned what a hollow mockery any mi,i Hawaiians and part Hawaiians: · · · · · · ·1 tary achievement is against these peoples in this age of scien 1902...... 30 994 51 32 87 . tific warfare. We have sickened at the idea of slaughtering with 84 United States troops savage men, savage women, and even sav Sou{~f - ~~~~e~~~ ~~ ~~~~: ~ ~ ~ ~ ~ ~ ~ ~ ~ ..... ~~. .S: ..... ~~ ...... ~~. 5 1905c...... 1...... 22 ...... 2 age children armed with primith·e bows and arrows, bolos, Chinese: - spears, and bamboo cannon. 1902 ...... 11 3,294 134 286 33 And yet, as long as we stay there this warfare will continue. 19G5 ...... -...... 5 3,962 69 2G9 11 Race hatred and the deepest human passions will perpetuate Japanese: 1902d ...... -- .. -.. 121 25,849 869 1,64.0 751 the hostile feeling. The metropolitan journals are replete with 1905 ...... -• . 132 23, 461 608 2, 830 590 trouble in our far-away possessions in the Pacific. From Hawaii Koreans: I comes the report of wholesale arrests of Japanese and the denial
of writs Of habeas corpus and possible international compli 1 1 cations. From the Philippines we learn of the Visayan con- - stabulary deserting our standard and retreating to their native :~~¢L::::::::::::::::::::::::T--: - 1 :.: 1 -,,i~ 1·:. ,:: 1::'.'.'.'.'. fastnesses in the interior with their arms and accouterments. 1905 ...... -• ...... 428 36, 584 801 3, 458 959 Of course there can be no doubt as to what the result will be. There never has been and there never will be when the white ISuper· ITrans- u 1 I man copes with the colored races; and the Japanese disturbers Nationality. intend· P?rta· sift~r - , Total. and the Filipino- mutineers will learn that they must bear our ence. tion. _ __· [ __ _ presence in sullen silence as long as we care to remain ·in the Orient. CauFook~:~- ...... -...... 353 50 23 1, 032 But, Mr. President, what profit is there in continuing to keep 1905...... 328 42 47 1, 006 these people in subjection? To continue to stay there means Port1~~~:...... 202 117 31 2, 669 to destroy the very traditions under which this Republic was 1905. _...... 200 171 161 3, 005 born and has grown to its present commanding position among Porto Ricans: the nations of the earth. I 1902·····...... 11 29 1 2, 036 7 79 21 If we stay there, we will have no American colony loyal to Ha;~~aiici 'Iiari.iia~ailans:...... 1 1, 9{>7 our country and faithful to its institutions, but an oriental ~;:g;- ..... ···· ···· ··· ··· ·...... - 103 ~~~ 42 1, 493 colony, hostile to our Gove~nrnent a;i~ despising its f!ag: I south sea.iiiaiiciers iirid..negroes·:· ·· · · · · · · · · · · · · · · · 114 86 1,452 As the years go by, their oppos1hon to our rule will grow 1902b...... 2 6 46 stronger; their hostility to our people 0 wil1, increase; the race 1905.c .... _._...... 1 4 3 32 war between the white man and the yellow man will become ~:iL .... -... -...... 28 64 31 3,881 more bitter as the two peoples grow wider and wider apart. 1905 ...... -...... 23 39 31 4,409 The American and the Filipino never can and ought never to Japanese: be assimilated. The immutable laws of nature forbid it. The ~~;~.'.'.'.'.'.:::::::::::::::::::::::::::::::::::: m ~ ; ~~~ 2: g~ ; ~~ two l?eople can n~ver be united; the twain can never meet. Koreans: I As Kipling has said· 1902 ...... -...... East i~ East, and West is West, 1905" ...... • ...... • ...... · 4 I 248 I 17 I 41683 And never tbe twain shall meet, Totals: Till earth and sky stand presently 1902...... ---826 i---2,043 i--233- ,---42, 242 At God's great judgment seat. 1905...... 864 4,485 650 .f.8,229
APPENDIX A. 0 Not including Porto Ricans and Portuguese. b Including 7 Filipinos. • The compensation paid on the sugar plantations of Hawaii to 0 Including 4 Filipinos. the labor that has been brought to that gronp of islands, pr.inci d Including 445 Chinese and Japanese employed In c.ultlvating; mostly pally from Asia, to compete_wit~ theAmericanfarm labor engaged Japanese. 3332 .CONGRESSIONAL RECORD-SENATE. JUNE 16,
The report of the Bureau of Labor for 1906 says-: APPENDIX D. The prepondeyance of· Asiatics ls even more marked in the last cen The Philipplnes have a population of 7,635,426 as against sus figures taken in 1900, and sh-0wing sex. As will be seen .from the 200,000 in Ha ail. The last available figures show that there following table, out of a population of 106,369 males, the native and foreign-born Asiatic element taken together represent 69,804, or 65.6 were 99,916 acres of sugar under cultivation in Hawaii, while per cent of the total male population : Mr. W. 0. Welborn, the government director of agriculture in the Philippines, when before the Senate committee in 1906 gave APPENDIX B. the following figures showing the area then in a crude state Tbe enormous expansion of the sugar industry in Hawaii, of cultivation in those islands: Sugar, 180,000 acres; rice, especially since the ratification of the reciprocity treaty in 1,600,000 acres; tobacco, 80,000 acres; sweet potatoes, 60,000 1875, by which the products of the islands were admitted to acres; plantains, 85,000 acres; hemp, 550,000 acres; cocoanuts, this country duty free., is shown in the following table taken 375,000 acres; corn, 267,000 acres. " I made those figures my from the December issue of the Planters' Monthly, of Honolulu. self," said Mr. Welborn, "and they are correct." From 1837, the earliest available record, to 1877 the growth is There has been a great deal of conflicting testimony as to the shown at intervals of ten years, and the growth is shown by yield to be expected of this land, but perhaps there is no better pounds from 1837 to 1891; subsequent to that date it is given way of approximating it than to hear what Mr. H. C. Prinsen in tons: Geerligs, one of the authorities on sugar production in the Pounds. Orient, has to say. When the sugar fields of Java were threatened with extinc tion by a blight that struck that country, in the latter part of the eighties, the Javan planters appealed to the mother country li~~======~gi;~~! for aid, and this distinguished scientist was sent out by the Holland Government to save the industry. He not only accom ~ un======u: H~: !H plished this, but built up the yield from a few hundred thousand tons to a million and a quarter tons, making Java the second tropical sugar-producing country in the world. Mr. Truman G. Palmer, secretary of the American Beet Sugar 1885---.------~lti~~~~~~~~~~~~~~~~~~~~~~~~~ 17.1,ii~ ill!350, 314!H Association, when that industry was threatened by importations from our island possessions, went abroad to discuss the sugar :situation with the leading experts of all the continental coun tries and the Orient, including this distinguished Dutch 'SCien tist, Mr. Prinsen-Geerligs, who said: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~!!ll!ii~ They (the 177 Ja.va.n sugar planters, whose estates last yea.r produced From 1891 to 1907 the production is shown in tons by the 1,210,197 tons of sugar) are all independent financially, but are all !following table: members of the Sugar Planters' Association and work together. Prac Tons. tically all -Of them live 'in Holland. They have "811 made money, but the people of the islands are just as poor as ever-30,000tOOO natives, 60,000 Hollanders and half-castes. Thirty thousand Dutcn and native soldiers in .all the Dutch possessions. Wage rate: Men, 6d. ; women, 2~d.; boys, 2d. per day. Women and boys do only light work. Ab1lll· HU~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Hi: ~ii dance of people. When planters want laborers they send criers through the towns and get all they want. Pay off every few days, and natives spend their money quickly. The country was occupied <0ne thousand two hundred years ago, but was given up later on. Ruins o:f most beautiful Ui!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~U: Hi palaces are still there, but the natives .detetio.rated as soon as left to themselves. Every inch of ground now cultivated. One who had not been there in ten years would not recognize it. Far more generally cultivated than Holland and Belgium. yet believes that if left to them ~Hi=~~~~~~~~~~~~~===~~~~~~~~~~~~~~~~~~~~~~~ fti:IH selves for ten years only rusty railroad tracks and ruins would indi cate that civilization had ever been there. The Filipinos are practi· ically the same race of people. Holland can not coloni.ze Java; can merely hold it. The soil iB very poor, far inferior to that of the Phllippines, which is exceedin.gly .rich. Largely by fertilization have ilii~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ !~1~1 doubled the ·sugar crop without greatly, increasing the acreage. Use much ammonia and oil cake. Without any tariff favors Philippines APPENDIX 'C. can compete with the world in sugar production. In no event will the building up of the sugar industry benefit the peo_ple of the Philip The duty remitted on Hawaiian sugar, according to the state pines. The money will all go to absentee people of wealth. Java ment furnished by the Bureau of Statistics, by this Govern enjoys no taritl'. concessions and asks for none. She bas driven Eu ropean sugar out of China, largely •out of India, and partly out of ment from 1876 to January 1, 1909, aggregates $193,151,634; in Persia. At 1~ cents per pound Java can make 40 per cent profit, and the following annual amounts: the Philippines can do much better with modern methods. Fears large 1877------$986,475 production in Formosa. Java has good climate for sugar-always 1878------989,602 warm--.but soil is very poor. Parties wanted him to go into a sugar 1879------·------1, 266, 554 enterprise in Porto Rico, but he declined for reason that we had not 1880______1,881,563 settled Philippine matters, and that if we encouraged Philippines they 1881------2,427,777 would eventually min Porto Rican sugar industry, as we1l as home 1882------3,314,938 beet .and cane and Ha.wail. 18 3------~.554,139 1884------·------2, 959, 913 18 5------~------3,937,947 APPENDIX E. 1886------4,435,-091 . 18 1 ------~ 5,016,380 In the various hearings had in both Houses of Congress, am 18 5,007,200 ple evidence bas been adduced that agricultural labor is plenti 18898------5,210,049 1890------4,804,477 ful at 10 cents a day and up. 1891 ------~ 5,544,150 The government report on the labor conditions in the Philip 1892______~:> pines, issued in 1905, says that- 1893------) 1894------~-~ G) The number engaged in gainful occupations is 3,037,880, or 43.5 per 1895------(") cent of the total clvlllzed population, as compared with 39.6 per cent 1896 ------~------4,535,392 in Cuba and 33.1 per cent in Porto Rico. The proportion of females is 1891------5,265,751 very large among the workers, but this is chiefly due to the fact that 1898------7,996,269 .they are engaged in the domestic manufacture of textiles. Women are 1899 ------~------7,396,798 not employed largely in agricultural labor in the Philippines. The per 1900------8,075,410 cen~ge of total population engaged in ga1nful occupations. according 1901------1902 ______11,528,85411,054,093 to sex and maturity, in the United States, Philippines, and West Indies is as follows : 1903------12,397,207 1904------11,783,873 Per cent of males and females ancZ of children 10 to 14 years .of age em 1905 ------13,323,542 _ployea in gainful occupations in the Philippines, United States, Porto 1906------~- . 11,945,642 Rico, and Ouba. 1901------13,136,237 190 ------17,241,130 1909 (six months)------6, 135, 181 10to14 Country. Males. Females. years of Total ------193,151,634 age. This, remember, was an outright gift, a bonus added to the purchase price of this sugar after it had been thrown upon the Philippines (19035 ••• •••••••••••••••••••••••••••••• •••. 57.6 29.4 16.8 markets of the world and the American consumer had been com-· United States (1900) .... ···········--···········-······ 61.2 14.3 14.8 Porto Rico (1899) .. --····~·-·········-·······-········ 56.9 9.9 22.4 pelled to buy it in open competition with the balance of mankind. Cuba (1899) •••.•...•.•••••••••••••••••••••••••••••••••• 68.2 8.8 24.6 "Period of free imports of raw sugar.
. 1909. CONGRESSIONAL RECORD-SENATE. 3333
The following table shows the number employed, by sexes, in the ver currency, and 3 or 4 cents' worth of fish. The cash wages, in 5 groups of occupations presented in the census classification i addition to rations, were from $0.75 to $1.50 silver currency (ap proximately $0.56 to $1.12! American currency) a week, and were paid Number and per cent of males and females emploved in each group of monthly in money. occupations in the Philippines, 1903. The actual cash wage of a field laborer is the same or less for a week in the Philippines than for a day in the Hawaiian Islands. Though rations are provided in the former country and not in the latter, Males. Females. the Hawaiian planter has a far greater expense for importing labor, medical attendance, and for quarters and other living conveniences than has his Filipino rival, and he must pay interest on a much higher "in Occupation group. Total. vestment for each ton of sugar produced. The write1· saw a nipa bar Number. Per Number. Per rack capable of accommodating 50 Filipino plantation laborers that cost cent. cent. the planter between $25 and $30 American currency. The cost of producing a picul (one-sixteenth of a short ton) of muscovado sugar was given by the proprietors of two plantations in different locations Agriculture ...... 1,163, 777 92.8 90,286 7.2 1,254,063 and of different capacity at $3 silver currency ($1.26 American cur Professional service ...... 23,358 91.1 2,279 8.9 25,637 rency) a picul, and the cost of marketing at Iloilo at 50 cents silver Domestic and pel'Sonal service ... 431,388 75.4 140,567 24.6 571, 955 currency (21 cents American currency) in each case. This would make Trade and transportation ...... 150," 989 66.6 -· 75,566 33.4 226, 555 the cost in American currency of sugar placed in the shipping market Manufacturing and mechanical about $23.50 a ton as against an average cost-for a somewhat higher pursuits ...... 243,081 25.3 716,589 74. 7 959,670 grade sugar-of over $45 a ton in Hawaii and $28 a ton in Java. The average selling price of sugar in the. Iloilo market in the autumn of Total...... ••.. 2,012,593 66.2 1,025,287 33.8 3,037,880 1903 was about $32 American currency a ton. The following comparative figures, in American currency, allow some Not gainful ...... ••...... 1,484,059 37.6 2i 465, 747 62.4 3,949,806 inference to be made as to the relative cost of labor and the profits in sugar production in the Visayan district prior and subsequent to th~ American occupation : Per cent of persons in gainful occupations in the Philippines, au1Ja, and tlze United States, by groups. Wages of fiela hands and profits in sugar proauction tn Vtsayan distriot, 1898 ana 1903. - .
Philippines (1903). United 1893. 1903. Occupation group. Cuba (1899). States (1900). Male. Female. Total. Weekly wa~es of field hands ...... •...... $0.56 to $1.125 $0.42 to $0.63 . 70 ------11------...... -- -~---- Weekly rations of field hands. • • • ...... • . . . • . . . . . 50 Iloilo price of sugar per ton...... • . . • ...... 48. 00 32.00 Agriculture ...... 57.8 8.8 41.3 48.1 35. 7 Planter's cost of sugar per ton...... 24. 00 24.00 brofessional service ...... 1.2 .2 .8 1.4 4.3 Planter's profi:t per ton...... • . . • . . . . 24. 00 8.00 omestic and personal service ...... 21.4 13. 7 18.8 22.8 19.2 Trado and transportation...... 7.5 7.4 7.5 12.8 16.4 Manufacturing and mechanical pur- The imperfect methods of manufacture employed in the Philippines suits ...... ·...... 12.1 69.9 31.6 14.9 24.4 are the occasion of great waste, and the product of cane per acre might be indefinitely increased by scientific fertilizing, stripping, irri gation, cane selection, and possibly by deeper plowing and more thorough · The Philippines, therefore, appear to stand about midway between cultivation. On a single plantation visited the writer estimated that the United States and Cuba in the proportion of workers employed in sugar to the value of .$45,000 American currency was being burned agriculture. . • up in the bagasse through imperfect extraction alone, and the gov· The average monthly earnings of workers of all classes and both ernor of the province estimated that the loss from this source averaged sexes are 8.59 pesos. In the Philippine currency now in use, the 45 per cent of the sugar content of the cane. Foreman gives the cost of plantation and mill labor would be under the equivalent of averaged juice extraction as 56.37 per cent of the full weight of the $4.50 a month in gold. This rate is stated by the census authorities to cane and the weight of the dry bagasse as 26.84 per cent. This would include the value of rations served to the laborers. mean that slightly more than 70 per cent of the total juice was ex· tracted, as against 96~ per cent on Ewa plantation in Bawa.ii; but it Area ana product of .chief cuztivatea crops. is very doubtful if there ls more than 55 to 60 per cent extracted in a majority of the Philippine mills.
Crop. Area culti-1 Product. The following table shows the wages given in the sugar. vated (acres). producing provinces: Average daily ·wages in selected occupations, bV provinces and coman_, Rice ...... '. .. 1,464, 725 24,402,368 bushels. dancias, 1903. Hemp ....•...... •...... : · 538, 199 147,172,166 pounds. Cocoanuts ...... a366,313 94,434, 707 pounds copra.b [From the Philippine census. The figures are given in pesos and Indian corn ...... 266,821 3, 391, 776 bushels. equivalents In United States currency have not been computed on ac Sugarcane ...... 177,628 397,311,047 pounds sugar. c count of the fluctuations in value of the Philippine currency, as shown Tobacco ....•...... 77,631 37,499,043 pounds. on page 739.] Cotton ...... 7,544 2,914,769 pounds. Coffee ...... 2,469 164, 431 quarts, Average wages per day, in pesos, of-
a Not including isolated trees and uncultivated groves. Province or coman- 1 -----~.,..------,-----~------ dancia. b Not including 12,033, 76~ quarts tuba, 1,660,162 quarts oil, and Farm Ordinary Carpen- Masons Painters Black- 2,323,148 nuts from the estimated annual product of cultivated trees. laborers. laborers. ters. · · · smiths. o Unrefined sugar, not including 471,385 gallons of molasses. ------1------~------~------The report continues: Antique.. .•._p ______0.52 0.30 0.5l 0.42' 0.71 Bataan______.71 .54 1.04 .99 1.01 ----~-2~00 The cbief industries of the Phillppines are agricultural, and the Ilocos Sur______.46 .35 ,67 .59 .84 .79 most important of these is the. planting of hemp, sugar, tobacco, and Iloilo. ------ ,.44 .31 .53 .70 .82 .92 cocoanuts-of the four industries thus emphasized, the cultivation of N egros Occidental.. .33 .:rr .54 .67 .91 1.05 sugar presents the most conditions analogous to those occurring in Negros Oriental. .•. .33 .34 .65 .63 .63 1.09 other countries, where the problem of labor for tropical agriculture Nueva Ecij a .••..... ,.43 .40 .70 .63 .83 .90 is important. It is the one that affords the most satisfactory data Pampanga __ p ______.78 .43 .65 .78 1.01 .78 for a comparison of wages, labor efficiency, and standards of living Pangasinan-~------· .53 .45 .76 .71 .79 .76 with those prevaillng elsewhere or at former periods in t)le same .25 .26 .33 .28 .25 islands. Pa._ragua------·-· .38 Rlzal.---~-·-·9·--- 1.09 ,79 1.33 1.35 1.28 1.41 Sugar was for many years the most important article of e~ort from the Philippines, and the United States was the principal buyer of this Philippine Is- - , -~ -~---- product. For the five years ending with 1887 the average annual ex lands...------.55 .fil .90 .89 1.06 1.U: ports were 175,775,792 kilos (193,759 tons), ·of which the United States took 115,252,460 kilos (127,044 tons), or over 65 .Per cent. During the subsequent five years the average yearly exports increased to 185,062,816 kilos (203,997 tons), but the American purchases fell to APPE::\DIX F. 67,303,243' kilos (74,189 tons) per annum, though they still exceeded by nearly 9.000,000 kilos (nearly 10,000 tone) those of any other single What is being done to develop the sugar industry in the country and were fifteen times as great as those of Spain. * * • Philippines by modern methods is shown by the following ex In Pampanga, which in 1890 exported $2,000,000 worth of sugar, tract from the Manila Bulletin for 1907: wages, when hired labor was employed, were 25 cents silver cur rency a day, or at the rate of exchange then pl'evailing about 19 cents THE EMPLOYMEN'r OF .A.Ml}RIC;U< STE..\M PLOWS IN TH:El DISTR'ICT HAS American currency. Sugar boilers were paid 75 cents silver currency_ GREl.A.TLY IN~ED THE SUGA.Xi OUTPUT, AND TH:Iil PUNTERS ARE NOW. a day, this probably being the highest i;ilantation wage. At the present T.UYING TO GET CAPITA.-., FOR A CEN'TRAL MILL, time wages in the Luzon sugar provmces are 40 to 50 cents silver currency ( 17 to 21 cents American currency) a day, not really higher Glance at the map of Negros. About three-fourths of the way down than in 1890--1894, prior to the American occupation, though nominally the east coast you will see two islands and back of them, on the main nearly twice the former amount. . The system of wages that has until land, the town of Bais. The level alluvial plain surrounding the town recently prevailed on the sugar plantation of Negros is thus · de lneludes some 7,500 acres of the best sugal· land, which at present,. scribed: owing to conditions of capital, labor, tariff, etc., produces less than Wage men were lodged in cuartels, or barracks, and received a 90,000 piculs annually, while it m.igbt easily produce tbree times the rice or maize ration of 5 chupas (39 pints), wortb. about 6 cents sll- amount.
j 3334 CONGRESSIONAL RECORD-SENATE. JUNE 16,
Perhaps nowhere in the archipelago is the yield per acre greater than in this district. The hacenderos claim that the soil in the vicinity Country. 1903. 1904. 1905. 1906. J.907. of Buis is, in many places, more than 12 feet deep. It Is a rich black loam. Some of it bas been under cultivation for thirty-five ------1 ----1------years and is still producing. When it is considered that with the £. £. £. £. £. otsolete wooden plows still much in use the soil is but poorly turned, United States_ ...... _...... 161,302 143, 747 104,573 90, 464 78, 230 the showing is remar·kable. Two planters of Bais, however, have Australia .. __ .. _...... _...... modern steam plows that plow to the depth of 14 inches, and their 237 7,231 48,404 86, 425 129, 940 fields a re producing like virgin soil. Other countries ...... 31 14 1,025 126 !j94 Don Jo!1quin MontenE!gro was among the earliest settlers. He came to the Philippines as mate on shipboard and decided to cast bis lot Total...... 161, 570 150, 992 154, 002 177, 015 208, 764 in the country. When be retired from active service, a few years ago, be divided a handsome fortune among his children, but retained his favorite hacienda. Cambuilao, adjoining the the town of Bais, which is Hear what the report says about timber: now farmed by his son, Senor Felix Montenegro, and is the largest Australia held the leading position in this trade in 1905, but fell producing property in the district. away in 1906 in favor of America. In 1907 Australia again occupies Cambuilao contains uOO hectares, or about 12,500 acres, of rich the leading position. sugar land, which now produces about 25,000 piculs of sugar a.nnually. FRUITS. Seiior Felix Montenegl'O is not quite 30 years of age. He is pro gressive and a hard worker, and is considered one of the most up-to Though the importation of fresh fruits from AustraliA. increases date hacenderos on the island. constantly, yet the figures are far from satisfactory. It must, of Senor Jose Bocanegra, a Spanish ·hacendero who is noted for his course, be remembered that California is a competitor in this market, practical ideas, was the first to substitute a steam plow for the carabao. but this is not sufficient reason for the backward state of the fruit His brother-in-law, Senor Felix Montenegro, followed his example, and trade with the South. tne modern implements have proven a grand success in every way. HORSES. Senor Bocanegra's machine is a Buffalo-Pitts 35-horsepower traction Practically all the foreign horses used in the islands, exclusive of engine, drawing a gang of six plows. It is really too big for his place, the military stock, comes from Australia, and recently orders have but be leases adjoining lands. The plow can turn the soil to a depth been placed at Brisbane for the supply of over 600 horses for cavalry of 14 inches and breaks it up so thoroughly that no additional plowing purposes. It is probable that the army mounts will in future be and ban·owing are necessary to prepare the ground for planting. The almost entirely obtained from Australia. machine does the work of 100 carabao and 50 men, and can be operated fo1· about 20 pesos per day. CATTLE. Senor Montenegro's engine is of the same type, but of only 22 horse Almost all the importations of cattle to the Philippine Islands come power. He would not trade it for all the carabao in the country. He from southern China via Hongkong. had a field of 7 hectares in which the land appeared to be worn out. If these figures ha-ve little of consolation for the American Seven times he plowed it with the old-fashioned Chinese plow, but still it refused to yield. Last year the steam plow went over it once, farmer in them, there is if anything even less satisfaction for plowing to a depth of 14 inches, and Senor Montenegro has just taken the American manufacturer in this British report, as will be from the field a yield of 1,500 piculs of sugar. This year it has been seen from the the following excerpts : replanted without .additional plowing. Neig!lboring planters have offered Senor Montenegro as high as 25 CANNED SALi\10:-i. pesos per hectare to plow for them. The machine can do from 2~ to Canada supplied 197,094 pounds of canned salmon, valued at £2,823, 3 hectares per day, managed and controlled entirely by Filipino labor. in 1907, thus marking her entry into a field which has been distinc Such machines cost, delivered at Bais, about 9,500 pesos each. tively American hitherto. In Bais the cane reaches Its full strength in from twelve to fourteen IRO'N' AND' STEEL. months from planting. In most haciendas two rattoon crops are taken The imports of iron and steel are valued at nearly £500,000, over off before the ground is replanted. Senor Bocanegro says that if only £50,000 in advance of the figures for 1906. The United· Kingdom and a handful of fertilizer was put on each plant after the secnod rat the nited States share about 70 per cent of this total, with a slight toon another crop could be taken off equal to the first. advantage in favor of the former. An examination of the remarks The planters of Bais want capital to erect a central mill in the dis . column of the imports table No. 1 will reveal the preponderance of the trict, o that they can get out. of the milling business and devote all of British trade in the cruder forms of these metals, while the United tbeiL· time and efforts to planting cane. States is credited with manufactured articles of a more advanced de· gree. Germany is the only other competitor of importance, with a total of over £75,000. APPEXDIX G. COTTOX PIECE GOODS AND Y.A.R:N"S. In bleached goods, such as shirtings, drills, and yarns, imports are It is interesting to note what the Philippine Islands haYe been still almost exclusively British, but in gray goods (drllls and sheet· 'doing in the way of trade when their necessities have clrawn ings) our manufactures a.re gradually disappearing from the markH, finding it harder each year, apparently, to compete against the local them into the markets of the world to purchase those articles mill (which is under Ilritish management) and Japan; while in gray they do not produce at home to satisfy their limited wants. yarns Japan seems to have largely monopolized the trade. There· has been so much misinformation published to the Competition from this quarter (Japan)' would appear to be growing steadily, and by the introduction of certain fancy cloths (peculiarly American people concerning our trade relations with the islands, Japanese) a. considerable business is being worked up. and the possibilities of its expansion, that it is well to look to some disinterested source for a true statement of these condi The official figures of this Government published in the Sta tions. The plain rm-varnished tale, given in the official language ti tical Abstract, issued by the Department of Commerce and of the British diplomatic and consular reports, makes very dif Labor, show how the balance of trade between this country and ferent re::rding from the glowing accounts given to the Ameri the Philippines has been steadily against the United States can nublic by interests bent on exploiting the islands for their since we acquired that archipelago: pri'rate gnin. Imports and ea:ports of merchandise into and from the Philippine In a " Report for the year 1907 on the trade and commerce of :.;; lands: Values, 1884 to 1907. the Philinpine Islands, edited at the foreign office and the board Imports. Exports. of trade ... t., * * and presented to both Houses of Parliament by command of His Majesty, November, 1908," being No. 4171 . Year. of the series, we find the following: From From To United To other United other Total. Total. The customs returns for the calendar year 1907, from which statis States. countries. States. countries. tics :He taken for this report, show a total trade volume of £12,711,135 ($63,555,675), with a balance o~ £528,011 ($2,640,
The VICE-PRESlDENT. The amendment offered by the Mr. BRANDEGEE. The Senator from Rhode Island will Senator from Florida '[MT. FLETCHER] is the pending q:aestion. nutiee on the first page of tlle amendment, in line 11, for in The -Secretary will state it. stance, it says "_gross tons." ~he :SEcBET.A.RY. It is p1·oposed to amend the substitute para Mr. -.ALDRICH. I think it Should read "gross tons" in graph, on page 1, linB 5, .by striking out the colon after. the . line 16. word " countries " and adding the words ·U except as provided l\fr. BRA.NDEGEE. I suggest that the same language be em by existing law now in force," and by striking out the remainder 'Ployed in tine 16. of the S11bstitute. :so that .it will read: Mr. ALDRICH. Very well. The VlCE-PRESIDENT- The amendment proposed by tbe 471d. 'There sh-all -Oe Ie:vied, collected, and ·paid upon an articles com- Secnator· from ""onn~en.gcut "n,·11 be stated. · ng I.into the [[Jni:ted Stat-es trom the Philim>ine Islands the rates of . .u u .... w .. 1 dnty whioh are required to lJe lev'ied, collected~ n.nd paid upan like arti- The SECR"ETARY. On page :2, line 16, afte:r the words "'five lC1es .imported from fore}gn countries, -except as pro-vided iby -existing law 'hundred,'" add the wnrd "gross." now in force. The amendme11t was agreed to. The VICE-PRESIDE:NT. The 'q'U-estion is on Jl..goo0in.g to 'the Mr. BRANDEGEE. I suggest also, in line 18, on }Jage 2, amendment of the Senato.r from Florida. that the word '"' .exemptions" .shol.lld be changed ·t-0 the \Vord · ~fr. FLETCHER. On that 1 ask for the yeas and nays. ~ exceptions," because, if the ·senator from Rhode Island will The yeas filld nays were ordered, rand the 'Secretaey proceeded · turn to pa.ge 1 i0f the proposed amendment, in line 9 .it pro- to ·can tbe roll. vides that these articles .shall J>ay the regular rate. except, and Mr. GAMBLE (wheB. bis name was ea.1100.~. I am ,flaired so forth. .It seems to me we should use 'the word u.exceptions."' with the junior Senator :ft'om Indiana '[Mr. 'SHIVEL'Y), I tra11s- .Mr.. ALDRfCH. ·There is no objection to that Change. fer my pair to the senior Senato:r from New York [Mr. DEPEW] The VIDE-PRESID.ENT. The Secretary wlll state the 1 and vote "nay. ' amendment. The roll cail was concluded. . . The SECBETARY. On page 2 of the printed .amendment, line Mr. NEWLAJ\"DS {after having voted in the affirmative) . .J: . 18, strike out "exemptions ' .and insert in lieu the word find that l .am pa'ired witti. the 'Senior Senator from Pennsylvania '' ex-cepfions."' [Mr. PENROSE], and l withdraw m.y vote. _ . The .amendment was agreed 'to. ML FOS'I'ER {a.tter haviug v.eted 1n the rutlirmative). I find : M :r. ·GORE. -'I'h.e pending motl-0n now is on :agreeing to the that the Senator from North Dakota [Mr. McCmmER~, with am.end.meat :a:s amended'? whom I am paired, is absent, and .1 withdraw :my vote. The VICE-PRESIDENT. The pending proposition is to agree Mr. MONEY .(after ,ha'Ving v<>ted in the affirmative· ~. I find to the paragraph as ·amended. that the &mator fi'om Wyoming fM;r. WA'KREN], with whom I Mr. GORE. .I desire to .submit '311 amendment to the para- am ,paired, is .absent, so :r :withdraw my ·v6te. ,graph. Mr. STONE {after having 'VOt.00. Jin th-e -affirmative). I find The VICE-Plt'ESIDENT. The Seer.etary will read the amend· that the SenatoT !from Wyoming [M:r. CI.ABX~, with whom I :run meJ:Lt. paired~ is absent I withdraw my vote. The SEO.RET.A:RY. On line 9, page 1, of the pnn·ted committee 4 Mr. .J:JLAY ( after Jla vling voted m :tOO .affirmativ.e1. The Sen- amendment strike out n.11 .after the ·second word, ' except,'' in ator from Louisiana {Mr. F.es:rER] is :e'X'eeedin~ly :anxi.ous to ibe that fine down to and including the words "gross tons," on recorded on this -vote. I myself will stand paired with the line ~ ~ insert: :Senator t:o:m North D.ak~ta {Mr. 1\1.cCuMBERJ,, :and the ·;Senator Eie.ept sugar m iexcess rof :300,-000 gross tons during .a;ny one fiscal from 'LoUISlana ·can vote. . . year - Pr.oa;id;ed Iwwever ·That the free importation of 300,0-00 gross The VICE-PRESIDENT. The Senat(}r from Gem.:gi.a with- fans ·per nsca'l year :slra'Il' not ex-tend l:Jeyond July 1, Hl11. rdrnws his vot-e. Mr. GORE. .Mr.. Presiden.~ I wis1l to say fha.t I would I arraign the sugar trust at the bar of the Senate as a colossal ~'he articles referred to are as follows: ·thief. · BIG TRUSTS LET ALONE-UN'l.'ER~lYER SAYS GOVERNMEN'l.' HAS NOT EN That is not an idle, it is not an unsupported accusation. Only FORCED LAW-RUNS FROM PUNISHING CRUIE-SUGAR TRUST, ACCORDING TO NEW YORK CORPORATIO. LA WYER, A LAWBREAKER FROM ITS BIRTH a few years ago the sugar trust was caught in the act of steal IS NOW A SCAPEGOAT, SINCE ITS " PRINCIPAL OFFENDERS ARE DEAD "~ ing water from the city of Brooklyn. It tapped the water main USELESS TO PUSH CHARGE. and actually stole water-the palh-y pittance resulting from a [From the Washington Post.] cheapened water bill from the city which in part vouchsafed NEW YOllK, Jtme 15. protection to its valuable properties. Not only that, Mr. Presi Before sailing for Europe on the Kronpt·inzessiti Cecilie to-day, Samuel Untermyer, who was counsel for Adolph Segal in the recent suit against dent, but less than two years ago this sugar trust was a con the sugar trust. has a few things to say in a typewritten statement victed criminal, and it paid :fines and penalties amounting to about the possible prosecution of the trust on criminal charges. Mr. $168,000 for criminal rebates received from the railroads. That Untermyer issued the statement in reply to inquiries whether his client had decided to press such a prosecution or to take any active part in is not the only count in this indictment, and it is not the only aiding it. Instead of answering these questions directly, Mr. Unter conviction or confession. myer's statem,ent consisted chiefly of an airing of his views on the gen Within the last two months the American sugar trust has eral subject of "corporate dishonesty." Said he, referring to the possibility of criminal prosecution of the paid into the Treasury of the United States some two or three sugar trust : million dollars, stolen-deliberately stolen-from the Treasury, " What would be the use? The sugar company has been a consistent :from the people, from the taxpayers of this country; stolen by lawbreaker ever since its birth. Its activities in Congress have been one falsifying its weights, a crime that belongs to the dark ages of the scandals of the country for many years. It has robbed the public and ruined its woul.d-be competitors. But it is no worse than many of and which civilization has rarely heard of for the last two or the others in its criminal methods, and not quite as bad as some. three centuries, yet this colossal trust stands at the bar of the NOW IT IS THE SCAPEGOAT. Senate and confesses theft to the amount of two or three million " This suddenly aroused virtuous abhorrence of its methods is amus dollars. . ing. It accidentally happens at the moment to be the scapegoat, but 'l'hese are the three counts which I desire here and now to as the Government has waited until after the principal ot'l'enders are dead, it does not much matter. Whenever the Government really wants urge against this mighty criminal. I have not yet heard that to bring the criminal rich who are managing these conspiracies that are they have been accused of robbing a henroost or of rifling a notoriously violating the criminal law within the penalties of that law, it will not be difficult. '.rhere never has been an honest, intelligent ef grave, but perhaps they have been more fortunate and have fort to enforce the ample provisions of the law against any of the mon- merely escaped detection. It may be, in sooth, that the trust ster monopolies. _ . engages in these peculations in order to pay higher wages to its "The Government has had no trouble in convicting and driving out employees. of business a few poor, struggling, comparatively harmless combinations that were put together to prevent bankruptcy and secure a small profit. Now, sir, this issue is presented, in my judgment, by the But the financial 'buccaneers' who have been holding up the country in pending amendment : Shall we confer a gratuity upon the sugar the necessities of lifeh keeping out foreign competition through the tariff at one end and crus ing home competition at the other, until the in trust eventually amounting to eight or ten million dollars a crease in the cost of living is alarming, have remained immune until year? Shall we confer that gift upon the trust at the expense every lawyer who has had to deal with this big question knows that the of the Treasury and at the expense of the taxpayers? For if pretended enforcement of the law is a huge farce. " Every time the Government has had a chance to enforce the crim we remit this revenue on sugar, we must make it up by increas inal provisions of the law (which constitute the only effective part, the ing taxes upon other necessaries of life. That is the issue others being mainly academic), it has run. presented. MANY REASO"°'S FOR NOT ACTING. If we desire to bestow this bounty upon this offending h·ust, "There are always so many reasons for not doing things that it is then, sir, we ought to vote "yea," in favor of the committee's never difficult to find one. We learned that lesson in the recent venti lation of corporate dishonesty, when every exposed criminal went un · amendment. If we are not willing to augment their illicit loot punished-the most of them back at the old game on slightly modified by a gift of eight or ten million dollars, we ought to vote" nay." lines, including the subsidizing_ of a part of the press through extrava The amendment which I have offered limits the operation of ~ant advertising at the policy holders' expense and jeering at discom- fited muck rakers." . · this committee amendment to two years. It would expire by Mr. Untermyer adds that the evidence of criminal pools and con the operation of law on July 1, 1911. That will afford us an spiracies to control prices and restrict ,production have for years been opportunity to observe the practical results of this amendment. available in this city if the public authorities had gone about their task with the energy that they do in ferreting out smugglers~;:ounterfeiters, If it secures any advantages to the American people, there will post-office thieves, and other classes of criminals. Mr. Untermyer be no difficulty in then extending it for a limited time or even feels sorry for the future, if it is true, as some Wall street men seem indefinitely. If its operation inures to the benefit of the Fili to think, that there has been a reaction in the public in regard to the attacks against crimlnal corporations. Says he: pinos, then, sir, it could easily be extended; but if this loot is " These pools and combinations are growing stronger and more nu limited to the sugar trust-if neither the American people nor merous. Individual enterprise is being strangled. Unless they are · the Filipinos are to be benefited by this gratuity-then let the brought within the clutch ot the criminal law and destroyed, the future is fraught with danger. '.rhe only way to regulate them is to bury gift terminate by the operation of law. Let us mark its prac them. So long as the President of the United States can defy the law . tical operation, and if the committee has erred in their judg by giving them immunity and go unrebuked the sentiment of the coun ment and generosity, let this limitation be affixed to the pending try is callous. But until the public mind is aroused to a recognition of the extent of the evils from which we are suffering and the far amendment. greater dangers that are threatening us it is useless to attempt to Mr. President, as shedding a little light on the sugar trust, I bring these men within the law." ask to have printed in the RECORD two clippings from news WEIGHERS' TRIALS MAY BE PUT OFF. papers of to-day and yesterday. I shall not tax the time of the Whether the trial of the seven sugar-trust weighers, under indict· Senate by asking to have them read. ment for conspiracy to defraud the Government, which was set to begin Thursday before Judge Holt in the United States court,' will be The VICE-PRESIDENT. Without objection, the articles re begun Thursday or will be postponed is at present a matter of doubt. ferred to by the Senator will be printed in the RECORD. Counsel for the .indicted weighers may apply for a postponement on the 1\Ir. GORE. Mr. President, these articles illustrate what ground that just at this time their clients might sutrer unjustly on trial, owing to the aroused public feeling against the American Sugar kindly consideration and indulgence have been manifested Refining Company. On the other hand, the government prosecutor toward this trust in days gone by, and show that there is less believes that the trial should proceed. excuse for the valuable favors about to be conferred upon that 'l'he seven weighers are accused of using fraudulent scales on the docks of the American Sugar Refining Company at Williamsburg. concern by the ·pending amendment. Spitzer was superintendent of the Havemeyer and Elder docks for many Let me say here there is one character worse than the crim years. The other six men were employed by the American Sugar Re inal himself, and that is the officer of the law charged with the fining Company as checkers and weighers. prosecution of crime who neglects his duty, who winks at law lessness, and who suffers the known criminal to go unwhipped ROOSEVELT WAS WARNED IN 1906 OF SUGAR FRAUDS-RECEIVER EARLE ADlIITS HE PLEADED WITH ADMINISTRATION TO PROSECUTE A.ND THAT of justice. HE DIVULGED BOTH THE WEIGHING FRAUDS IN NEW YORK AND THFl In 1894 a scandal grew out of sugar legislation in the United REBATE PRACTICES-NOTHING IN FICTION TO EQUAL IT, SAYS EARLE States Senate. Senators from two great States did not escape " MOST DRAMA.TIC, INTENSE, INTRICATE CRIME IN CUNNING EVER BROUGHT BEFORE ANY COURT IN MY TIME"-" I HAVE DETAILS; I IM without soiled repntations. Profits were made, fortunes were en PEIUTIVELY NEED YOUR AID,'' HE WllOTE PRESIDENT. hanced by speculating in sugar stocks on the part of Senators [From the New York World.] who had inside information. Those practices belong to another P Hn,ADELPrru, June 14. and to a different age. No Senator in these times would be "In common with every other good citizen, I am at the service of my guilty of such reprehensible conduct; but. speculators on the out country," said George H. Earle, jr., receiver of the Pennsylvania Sugar Refining Company, to-day, when asked whether be would aid the Gov side may avail themselves of the advantages of now investing ernment in a criminal p1·osecution directed against the heads of the in the securities of the American Sugar Refining Company. sugar trust. If this amendment is adopted, I predict-and I am not fa Those who know Mr. Earle keenly appreciated the irony of his i·e mark when they recalled that he had pleaded with and petitioned Pres miliar with stock juggling-that it will eventuate in enhancing ident Roosevelt and Attorney-General Bonaparte in vain to institute or the values of sugar stocks and securities, in the enhancement of to pe1·mit him to institute just such criminal proceedings :is a re now their profits, and will result in absolutely no permanent advan threatened by tbe present Departmen t of Justice. A.5 long- ago as November, 1906, Mr. Earle now admits, he wamed President Hoose tage either to the people of the United States or to the unfortu velt and his Attorney-General of the weighing frauds in New York and nate people of the Philippine Islands. rebating practiced by the sugar trust, but no action was taken. · ..· 1909. .CONGRESSIONAL RECORD- SENATE. 3337· EARLE'S PERSONALITY. United States. Of course you will understand that all this I have upon Mr. Earle is the son of the late George H. Earle, sr., one of the fore information; but one of the peculiarities of this crime has been t_hat most lawyers of the Philadelphia bar. The son, himself a lawyer, ls the parties engaged in it, whether made reckless by past successes and the executive head of five of the largest banks in the city. He has res immunities or not, have left a perfectly inconceivable amount of docu cued many concerns from the graveyard of high finance, was too busy mentary evidence of what I believe to be their crimes. to be mayor of Philadelphia, is not " against " trusts, is worth $5,000,· " I am overwhelmed with the duties of this receivership. It is com 000, but lives on one of his many salaries, and his hobbies are coins, plicated and trying beyond words. But I trust that you will under. first prints, and a model farm. He was offered $100,000 for reviving stand that I shall at any moment give up any time necessary to inform the Real Estate Trust Company and went into court and told the judge you of the conditions that I have found existing. that b\s services were worth only $50,000, .and be has not yet collected "One thing I wish to guard you against, and that ls the impression the $50,000 because " the company needs the money more than I "do." that I am actuated in my part of this because of a prejudice against WWle a financial genius Mr. Earle has absolutely no ambition for the sugar or any other trust, for I believe a large cooperation to be an great wealth or political preferment and no desire for social glories. absolutely essential tWng in so great a country as ours. Cooperation Upon his unsupported word the 55,500 depositors of the defunct Real means power and power advances the undertakings of man and civili Estate Trust Company turned over to him all that was left of $7,500,000 zation; but while I believe in creating and fostering the greatest deposits at the time of the crash, August 28, 1906, and every stock amount of energy possible, I as strongly believe that the energy will holder in the company assigned his property to Mr. Earle without "re become a curse instead of a blessing if it be permitted to be turned to course or recovery," without a scratch of a -pen to safeguard the equity. base and criminal ends, by men intrusted with such duties as yourself " It would be manifestly improper for me to discuss any phase of th~ on behalf of that greater power which is made up of all the people, sugar-trust case at this time," said Mr. Earle, "because I am still an cooperating through the state, of which you are the chief. And so I officer of the court in my capacity as receiver of the Pennsylvania now appeal to you." Sugar Refining Company." This letter to the President was written by one of the most learned " Does the same apply to the Government and its agents?" he was lawyers in the land, by a man of many millions, and one whose word asked. ls good with more than 1,000,000 people in his home town, " Oh, yes ; I suppose so. They did not care to discuss the case two EARLE .APPEALED TO MOODY. or three years ago, and I prefer not to talk about it now, for the more President Roosevelt acknowledged the receipt of the document particular reason that we have agreed upon a settlement, and I con through his secretary's secretary. Six weeks later Mr. Earle addressed sider it hardly fair to agree to a settlement and then participate in an a last appeal to the then Attorney-General, William A. Moody, who expose of the other party to the bargain. Then, too, I must keep in now sits upon the Supreme Bench of the United States. In his letter mind the fact that the court has yet to review the terms and conditions of appeal Mr. Earle gave Attorney-General Moody an outline of the of our settlement, and I might be subjected to some criticism for com essential evidence in his possession, and in closing said : menting upon the case at this time." " Standing alone, is this a case that the Government of the United GA VE WARNING IN 1'906. States can afford to ignore? Has there ever been another like it in " Have you had any conferences with J. H. Graves, special assistant wickedness? " United States Attorney-General, or with E. V. Roadstrum, the special In justice to Mr. Moody, it is right to set out with particular em agent, both of whom are supposed to be gathering evidence against phasis the fact that he was then about to retire from the Roosevelt the sugar trust management with a view to criminal prosecutions? " Cabinet to go upon the Supreme Court Bench. " Neither of the gentlemen you name have called upon me. I suppose It was agreed by all parties concerned that it would be manifestly they are studying up the documents in the case, which are full. of improper for him as Attorney-General to pa.ss upon a case which he, meaty evidence." · as a justice of the highest court in the land, might later have to pass "Is it true that you directed the attention of the Government to the upon as a judge. scale frauds and rebating more than two years ago? " In this same letter to Attorney-General Moody, which saw the light "Mr. Frank L. Neall, of Peter Wright's Sons, told me about these of day after Senator CULBERSON bad demanded its publication, Ur. frauds so long ago that I can not now fix the date, but I certainly Earle, with brutal frankness, described the incidents that immediately wrote to the Attorney-General about them on November 8, 1906, as led up to the suicide of Frank K. Ripple, president of the Real Estate the papers in the Pennsylvania Refinery case show." TrQst Company, in this ·city, the wreck of the Pennsylvania Sugar Re "Do you consider President Roosevelt and Mr. Bonaparte as being fining Company, the collapse of all the great enterprises of Adolph directly responsible for throttling a proper inquiry in 1906? " Segal, except the Hotel Majestic, and many domestic tragedies. " I am not fixing responsiblllties. I am not naming men who Months later .Attorney-General Bonaparte, after carefuly reviewing performed their duties, nor am I pointing out anyone who failed the correspondence and without calllng for the more detailed evidence to measure up to their responsibilities. I am merely ' pointing with at band and at Ws service, solemnly wrote to Mr. Earle, setting out his pride ' to the papers in the case, and, otherwise, I am engag~d in belief " that the Knight c!.lse finally disposed of the matter under dis preparing memoranda upon which to base my report to the cow·t that cussion." Th:;it was the end of it, so far as Mr. Bonaparte figured in named me receiver. . the case. In the Knight case the essential point hinged on a question "I must not be placed in the position of discussing this case in any of legal or illegal consolidations. phase for publication. It would be discourteous to the court. What I In another communication addressed to the Attorney-General Mr. have said will stand by. What I would like to say is another matter. Earle said in part : I will repeat, however, that fiction knows no story equal to the cold . "My embarrassment does not result from scarcity of material, but blooded facts in the conspiracy which bas been proved in this case, from the fact that I do not wish to engage in writing what must read and I shall always consider myself amply repaid for my work in this like a French detective story of crime, for in all my experience I have matter if I get nothing more out of it than the satisfaction of 'having never known of anything quite so infamous as the case I have now to been a player in what I consider the most dramatic, intense, intricate present to you. • * * crime in cunning ever brought before any court in my time. "I have come upon evidence that justifies the suspicion that they are "I am prepared to substantiate every charge I have made, but I will strengthening their monopoly, not merely by rebating and like infrac not enter into any discussion of the matter outside of the court for tions of the law, but by the most serious frauds upon the customs of the reasons I have stated; first, because it would be discourteous to the Government. the court and, next, it would be unkind, if not unfair, to those who "The brief·whicb I am preparing for you as to the law is nearly com have agreed to effect a satisfactory settlement of this issue." pleted. • • * If the managers of the sugar trust were cunning in devising the plan " I have written the President and your department again and again to gain control of the Pennsylvania Sugar Refining Company, to close that we hold this evidence, and a mass of it, and have again and again up the great plant before steam w~s ever J1enerated .in one of its requested that it be examined." boilers, and to pave the way for disaster, <:Jisgi·!lce, dishonesty, and death, George H. Earle, jr., was supercunnmg m getting the facts The VICE-PRESIDENT. The question is on agreeing to the before the country first and then before the courts. amendment proposed by the Senator from Oklahoma [Mr. SPREAD O~ SENATE RECORDS. GORE] . When President Roosevelt and Attorney-General Bonaparte d.eclined Mr. GORE. On that I ask for the yeas and nays. or neglected to publish Mr. Earle's lett~rs m the early days of this case, Senator C u LBERSO~ of Texas, asked m the Senate for all the docu The yeas and nays were ordered. ments in the case.' Pennsylvania was represented in the Senate by Mr. CRAWFORD. Mr. President, just for information, I ask Philander C. Knox now Secretary of State, and Borns PENROSE, whom if, this amendment should be voted down, it would leave the Mr Earle has known all his life. Just why the Senator from Texas should concern himself about a matter so intimately connected with original one hundred and fifty millions to be imported? Philadelphia and Pennsylvania is one more mystery of the many in the The VICE-PRESIDENT. It would leave the amendment as case President Roosevelt and his Attorney-General, Mr. Bonaparte, forwarded the documents, as CULBERSON requested, and by this proceed it was before the amendment of the Senator from Oklahoma ing Mr. Earle spread upon the recor.ds the fact that the Pres~dent was was proposed. in possession of the cardinal facts m two great suspecteq. cr_unes, and The Secretary proceeded to· call the roll. · that neither he nor the Attorney-General had shown an mclmation to Mr. FLINT (when his name was called). I am paired with ac!i_,~~tt~r c'.ES:i·le put this "crime in cunning" squarely up to President the senior Senator from Texas [Mr. CULBERSON] . In his Roosevelt soon after he learned of it is prov~d by his letter, dated Sep absence, I withhold my vote. If he were present, I should vote tember 21, 1D06, in which Mr. Earle, addressmg the President by name, "nay.'' sa~~ i have all the details ~f this conspiracy. I ~ell~ve I know all the Mr. FRYE (when his name was called). I transfer my pair individuals responsible for it. If I am to take th1s Journey alone, I am with the senior Senator from Virginia [Mr. DANIEL] to my col determined to discharge the duties that my conscience places upon me without regard to the results to me personally; but I have. every reason league [Mr. HALE] and vote. I vote "nay." to believe t hat you whom I address are fortunately a man of like mettle, Mr. OLIVER (when Mr. PENRosE's name was called). I and I am absolutely convinced that you have a larger and greater duty wish to state that my colleague [Mr. PENROSE] is necessarily to the public than I myself. " I represent but a body of innocent stockholders and creditors, who absent to-day. He is paired with the Senator from Nevada have incidentally been crushed by an effort to plunder the whole people. [Mr. NEWLANDS] . You represent that people. I imperatively need your aid and coopera Mr. BURROWS (when the name of Mr. SMITH of Michigan tion With it I feel assured that justice will be done; without it I may· be myself crushed in the effort to obtain justice for the smaller was called). My colleague [Mr. SMITH of Michigan] is paired body which I represent; but with it or without it, no consideration that with the Senator from Mississippi [Mr. McLAURIN] . I have been able to give this subject has enabled me to feel that I can The roll call was concluded. possibly absolve myself from the duty of going on-with you, if such good fortune awaits me; without you, I must act alone. Mr. MONEY. My coHeague [l\lr. McLAUR.IN] is necessarilJ;' . DOCU ME~TARY EVIDENCE. absent for a moment. He is paired, as has just been stated, with "I have not gone into the details of this matter. . The details I have, the Senator from Michigan [Mr. SMITH] . If present, my col and they· are at your service or that of _the Attorney-Gene~al of the league would vote " yea." 3338 OONGR'ESSION AL BEOORD-'SEN~TE . JUN-E 16, :Mr.1FOSTER ·{after 1:urVi.ng1Votea =m '.fhe·Jtffirmafive). :In-the ' Mr. NElWLANDS (after having Toted in the negative) . . In absence o'.f ~ the Senator from - orth Dalrnta ];'Mr. 1\Id0.UMBEBJ, · the :;absence 1of 'IDY pair, -the -seriior ·Senator from Pennsylvania ·with whom J: !Um -paired, ·I withdraw my vote. • :.[Mr. ·:P:ENRoSEl., .1 wlthdra w m_y :vote. · Mr. STONE :(after haViIJ.g ·votea in fhe •llffirmative). iI ~ ha.-ve i lMr. DANIEL ·(after haVi.ng -voted in -the negative). I ·am J-ust ~ been Jn.fo.mned that the Senator :from W_yoming [M.r. -palrea -With the senior Senn.tor :from 1\Iaine [Mr. HALE], and .CL.ARK], ·with w..hom l am paired, -:has not -v-oted...... therefore desire ·to withdraw my vote. -When I voted I did not .The VICE-PRESIDENT. '.The '.Senator :from ·. ~:oming :bus · :notice the '. Senator from Ma:in~ was.abi3·ent. not ·vuted. :Mr. Jjl£INT, 1 aesire -:to -ttr·ansrer ::m.y pair "W.tth the senior 1\Ir. STONE. Then, _J: 'Withdraw .my -v-ote. .Sena.tor ;from Texas Hlr. ·GULB.ERsoN] to ·the senior Senator The ·restilt ·was :llnnoun.eed-'yeu.s ~ 25, tn~ys ·43, :as follows:: ,from New :'York .[Mr. ·DEPEW] and vote. .I 'Vote "'Yea:" ~-25. ~h'e ..result was announce.d-ycas 42, .nays 28, as ·f'ollows: ;Bacon :Davi£ "Mal..'tin =Smlth, Md. :YE.As-42. iB.ailey .:.Rletche1· Money Smith, :S,iC, ·Aldrich Crane .Frye :Page ::Bankhead Gore Overman Taliaf.erro · Bourn~ .Cullom Gallinger Pel'kins ..Bristow Hughes ·ow.en :.Tillma:n 1Brandege:e ·Cummins Gug~enhelm ;pfies Chambe.tlaln J' ohm!ton,.A:.la. -Pa-ynter llriggs Curtis · ;Eleybm·n "Sc tariff bill a duty was placed on iron ore, and a much higher one The VICE-PRESIDENT. Without objection, the Secretary than the one for which I Yoted has been maintained by all sub will read. sequent revenue bills, including the Wilson bill, which placed it The Secretary read as follows : at 40 cents per ton. Every Democrat in the Senate except one YOUNGSTOWN, OHIO. during the consideration of the Wilson bill voted against admit MY DEAR SENATOR PAYNTER: Referring to our conversations of Thurs ting iron ore free of duty. It has not been asserted in this day and Friday last, I write to say that at a meeting of iron-.ore pro ducers and merchant pig-iron manufacturers held in New York City on Chamber that the duty of 25 cents per ton, which is about 8 to November 24, 1908, I was selected to represent the above interests and 10 per cent ad valorem, is anything but a revenue duty and that appear before the Ways anu Means Committee. the imposition of which is not in accord with the repeated decla At subsequent meetings, held on March 24 and on April 14, this au thority was confirmed and continued, and at the last-named meeting rations of the Democratic party that the tariff duties should be there was added to the committee Mr. F. S. Witherbee, Mr. Leonard levied and collected on a revenue basis. A free list has always Packitt, and Mr . .J. H. Frantz. been and will be maintained. As to what imported articles Briefs were submitted on .January 20, 1909, March 30, 1909, and April 29, 1909, and copies sent to all the United States Senators. should be placed upon it is necessarily a matter for individual * • • • • • opinion and judgment of the members of the Democratic party The independent iron-ore interests which I represent believe that the who believe in imposing duties for revenue only. duty of 25 cents per ton as fixed in the Senate Finance bill is fair and A certain amount of revenue must be raised by means of tariff equitable, and it meets with the approval of all the independent pro If ducers of iron ore and more than 90 per cent of the manufacturers of duties. we increase the free list, we necessarily must make merchant pig iron. I consider, and the independent interests I repre good the loss of re>enue resulting from the free list by increas sent believe, that it is inconsistent for the manufacturers of iron and ing the duty on other imported products, perhaps on cotton or steel in this country to ask and insist upon iron ore coming in free of duty and at the same time insist on their :finished product bearing duty. woolen goods, thus increasing the cost of clothing to the con The assertion has frequently been made in the United States Senate sumers. So far as I am concerned, I would prefer to see the that the United States Steel Corporation owns 80 per cent to 85 per duty that will be collected on iron ore go into the Treasury cent of the iron ore in the United States. This statement is absolutely untrue, and I am hoping to be able to send you within a very few days than to see its equivalent go into the pockets of the manufac a statement showing as nearly as it can be estimated the amount of turers, as it would certainly go there if the ore is admitted available ore by districts in the United States and the ownership free. No mathematician or statesman can show, by figures or therein of the United States Steel Corporation. I can say frankly now that in my judgment the United States Steel otherwi~e, that the consumers would be able to buy the product Corporation, I do not believe, owns more than 25 per cent of the iron of the iron manufacturer at a price that would save them the ore in the United States, and I hope, when I obtain further :figures amount of duty paid on the iron ore from which it was pro added to those now in my possession, that I may be able to write you and give you a very close estimate. duced. The manufacturers would be the gainers to the ex I will be pleased to have your acknowledgment of this letter. tent they did not pay a duty on iron ore, and the taxpayers . .J. G. BUTLER, .Jr. would l>e compelled to make good the loss in the revenues. It Hon. T. H. PAYNTER, would seem that to give the manufactnrer free iron ore and Washingto1i,, D. 0. protection on his manufactured product is the besto'\:\•al of a Mr. SMITH of Maryland. The statement I made was not double blessing in the way of protection. At the time the that the United States Steel Corporation owned 80 or 85 per Democratic party declared in favor of free raw material it was cent, but it was that it controlled 80 or 85 per cent of that west demanding that there should be a radical reduction in the duties of the· Allegheny Mountains. I did not state that they owned on the manufactured product, the idea being that the manufac that much, but that they controlled it, which is a very different turer could stand· the reduction on the manufactured product if proposition. · he could get the raw material at a reduced price, and by that · Mr. PAYNTER. I did not quote the Senator at all upon process enable the consumer to buy the product of the mills that proposition. and factories cheaper. Mr. SMITH of Maryland. This letter does. No such reduction in the manufactured product has been Mr. PAYNTER. This letter does not quote the Senator from made in the bill under consideration, nor will any subsequent Maryland at all, and I was not pretending to give the words, reduction be made thereby; hence, the scheme has failed. It is l>ut to give the effect of his statement as to what induced his. folly to proclaim that duties are too high, that the manufac Yote on that question, not with a view of criticising the Senator turers are overprotected, and then allow the duties which give from Maryland, but to show one of the considerations that protection to remain and pretend to give relief to the consumers influenced Senators upon the question. by giving the fayored manufacturers their raw material free, Rogers, Brown & Co., whose principal office is in Cincinnati, for in doing so there is an addition to his protection. The giv conducts the largest iron-commission business in the world ; ing of free raw material does not compel the manufacturer to they belong to the class known as the " independent " producers sell the manufactured product at a reduced price. It does not of iron, and are interested in 10 different.furnace stacks. produce competition in the manufactured article. There may I think their output is over 3,000 tons daily, and so I sought be cases where an exception to this rule should be recognized, from them some information upon this subject, ancl in response as in the cases of monopolies. If the raw material in this to it I have this letter, which I send to the clerk's desk and ask country was controlled by a monopoly, or the finished product to have read. was so controlled, I should be inclined to vote in a way so as The S~cretary read as follows: to destroy such monopoly. This statement brings me to the real ROGERS, BnowN & Co., question I arose to discuss. Cincinnati, May 1!5, 1909. Hon. T. H. PAYNTER, As no Democratic Senator voted against placing iron ore on Washington, D. 0 . the dutiable list because 25 cents per ton was in excess of a DFJAR Sm: We most respectfully call your attention to the proposed re-venue duty he must have been influenced to do so by some rP.duction in the duty on iron ore. It has been expected that tbe tarllr other cause. The junior Senator from Maryland [Mr. SMITH] would be reduced and the iron men generally of the country have con ceded that a cut of 15 cents per ton, from 40 cents down to 25 cents, did so because he was under the impression that the United could be made without serious detriment to the mining interests of the States Steel Corporation wanted a duty on iron ore and the TJnited States, and at this figure during the coming years the revenue to the Government may possibly be increased somewhat. independent concerns wanted it free of duty. At the time I ThPre seems to be an impression that any duty retained on ore will voted to place a duty on it, I did not know the wishes of the inure to the special benefit of the Steel Corporation, and that the inde United States Steel Corporation or those of the independent con pendent interests of the country might be helped if the duty was en tirely removed. The fact is, however, that during recent years the inde cerns, as no one representing either had interviewed me upon pendent companies have made the bulk of the pig iron for the open the subject. market and have to a large extent interested themselves in ore proper I was influenced entirely by the consideration that, as the ties and have put up many millions of dollars to develop them so that it thev would have sources of supply. . Government needed the revenue, was better to place the The furnace companies in which we are interested, with 10 different amounts that would result from a duty collected on iron ore stacks, located in Illinois, Ohio, New York, and Pennsylvania, formed a in the depleted Treasury that must be replenished than to place company some time ago with $1,000,000 capital, and since then have formed another with $300,000 capital for the purpose of developing it in the pockets of the United States Steel Corporation or those mines in the Lake Superior district. The Empire Steel and Iron Com of the independent producers of iron or steel. After the junior pany, in Pennsylvania, of which the writer is a director, owning B Senator from Maryland [Mr. SMITH] made a statement as to blast furnaces, has spent a large amount of money also in developing local ore mines for its own use, and what we have done has been done what induced him to vote for free iron ore, I began a little by other blast-furnace people on a large scale. investigation to see if I had made a mistake in casting my vote. While th~ Steel Corporation may be benefited by a duty on ore its I thinl.: I owe it to the country and to the Members of this position is such that we believe it can do business at a profit at prices which would put the rest of us out of the running, and it is in behalf of body to give the result of my investigations. Mr. Joseph G. the independents that we are writing you. Butler, jr., represented before the Ways and Means Committee So far as we are able to learn free ore might help a few of the steel the independent iron-ore producers and 90 per cent of the plants that have blast furnaces located on the seaboard or in the ex treme East, who would draw their supply from Cuba and other points manufacturers of merchant pig iron. After learning this fact, where they could get their mining done at prices for lauor impossible I approached him in quest of information. He answered mv in this country. If reports are true, those parties can well al!ord to inquiries, and I requested him to do sa by letter, which he did. pay a duty of 25 cents per ton on the ores they may bring in from Cuba and Spain, and the Government, we believe, is justly entitled to I send to the Clerk's desk a copy of his letter and ask that it that amount of revenue from the ore imported. There ls certainly no be read. reason• why the United States shou~d foster and help develop mines in 3340 ·CONGRESSIONAL RECORD-SEN ATE~ JUNE 16, other countries and by so doing either shut down the mines· here or vania Company owns 27,000 acres of it, averaging 18 to 10 feet thkk, force a radical cut in wages. and fully tested by thousand of drill holes. We believe that a duty on ore is a legitimate means of raising money Mr. Charles l\L Schwab in his testimony before the Ways and Means to help pay the expenses of the Government, and that it is a tax that Committee of the House of Representatives stated that the Bethlehem is borne in a very slight degree, if at all, by the workingmen of this Steel Company had ceased to use domestic ore and was using nothing counti·y, while to the extent that it increases OUJ' mining interests at but Cuban oL-e. With a view to the use of Cuban ore the Bethlehem home it is a direct benefit to the working classes. Steel Company has within the last year ox: two expended $17,000.000 We trust you may find it consistent to vote for a. dufy of 25 cents or 18,000,000 in building new furnaces and in the enlargement of its per ton on ore. plant. When this vast expenditure was made there was no reason to There has been considerable discussion about reducing the rate on suppose that there would be any reduction in the duty on iron or . In imP-Orted scrap down to 50 cents per ton. This has apparently been fact, Mr. Schwab at the same time testified that Cuban ore could be brou ht about by the efforts of a comparatively few corummers in the landed on the Atlantlc coast and carried by rail to Pittsburg and de East, who get protection on their manufactul"ed output, but who desire livered there as cheaply as Lake ores. His company claims to own as to get their so-called "raw material" free. We believe that an investi much Cuban ore as the Pennsylvania Steel Company has definitely gation oi this subject will convince you that as scrap is used in the place proved up, or a minimum of 600,000,00"0 tons. of pig iron it should bear the same rate of duty that may be fixed on These are interesting facts previously published in the Manufac pi"' iron, which we trust will not be less than $3 per ton. turers' Reeord, but they are worth repeating. With the Pennsylvania Klndiy pardon us for writing you at such length, but these matters Steel Company committed to the use annually of 1,000,000 tons of directly concern hundreds of thousands of employees and many millions Cuban ore as a minimum, and with the Bethlehem Steel Company of dollars that have been invested by the manufactarers. spending $17,000,000 or $18,000,000 on the enlargement of its plant Very truly, yours. with a view to using Cuban ores exclusively, these two concerns would ROGERS, BROWN & Co., neces arily have to consume about 2,000,000 tons of Cuban ore as a By D. B. ~!EACH.Hf. minimum. They could afford to do so even with a duty of 75 cents a ton and thus add to the revenue of the Government to that extent. Mr. PAYNTER. From this letter it appears that Mr. D. B. These two va~t concerns-one backed by the Pennsylvania and the Meacham, a m~mber of the firm of Roaers, Brown & Co., is also Ilea-0.ing railroads and the other suppo edly backed by Mr. Carnegie- own, according to their own statements, about 600,000,000 tons each a director in another corporation which owns some furnace . of Cuban. ore, or in the aggregate about as much as the Steel Corpora The e letters not only show that the independent iron manufac tion is supposed to own in the Lake Superior dist1·ict, even including turers, except a few along the Atlantic coast, did not want free the ores leased from Mr. James J. Hill and the Great Northern Rail road. These ores are mined in Cuba by poorly paid labor as compared iron ore, but were of the opinion that it was inconsistent to ask for with the wages of American miners. They are delivered on the At free iron ore and, at the same time, recei\e ample protection on lantic coast by water transportation. To the extent of the needs of their rnanufactlll'ed product. I regard the letters which I have these two companies these ores will be brought to this country, even if tile duty should be 75 cents a ton. Moreover, on all of the finished bad read as a valuable contribution to tile discussion of the oroducts made out of these ores and exported there is a drawback of question, and that they will serve a u eful purpose to preserve 90 per cent .of the duty on- the ores, so that the foreign trade of the e historical accuracy. two companies, all"eady very large, would reduce the actual amount of duty paid by them to practically nothing on their foreign shipments. A I hold in my hand an article from the Manufacturers' Record reduction of the duty to 25 cents a ton would simply to that extent of May 27, 1909, which gives some very intere ting information increase- the value of the holdings of the e two companles and give on the subject of iron ore. It is stated that the Spanish-Ameri them the whip handle over the jndependent iron an.d steel people who are not so fortunate as to own Cuban ores. can Irnn Company (the stock of which is owned by the Penn It is not at all improbable that if a reduction of the duty on ore sylvania Steel Company} owns 27,000 acre of iron-ore-bearing could be brought about these two companies might be in a situation to lunds in Cuba; that the ore beds average from 10 to 19 feet in practically force a deal by which the United States Steel Corporation, in order to secme their vast holdings of iron ore, might be willing to thickness; that it is estimated they contain 600,000,000 tons; pay them almost fabulous prices for their properties. Should this be that the ore can be mined and put on the cars with a steam done, the Steel Corporation would be still further strengthened in its shovel at a cost of 10 cents per ton; that the Pennsylvania iron-ore holdings and would then have a complete mastery practically of the world's iron and steel trade, and the independent iron and steel Steel Company is under contract with the Spanish-American people in the North and West and Sooth would then be able to live Company to take not less than 1,000,000 tons per annum, and only by sufferance. Those who have been favoring free ore or a reduc that the Pennsylvania Steel Company is owned by the Pennsyl tion might in this case be proven by time to have been working, wit~ tingly or unwittingly, for the benefit of the Steel Corporation. vania Railroad Company ~d the Reading Company. · With vast SUJ?plies of ore in the South awaiting development, why It also appears that the Bethlehem Steel Company, headed by should this section or any other part of America be willing to injqre · Charles ::\f. Sch,vab, owns a quantity of ore-bearing lands in itself by voting for a reduction of the duty on ore simply to benefit the Pennsylvania and Reading railroads as owners of the Pennsylvania Cuba equal in quantity and richness to that of the Spanish Steel Company and the Bethlehem Steel Company, which, judged by all American company, and that Mr. Carnegie is said to be backing indications, is- being financially backed by Mr. Carnegie? On the strictly the latter concern. The aggregate quantity of iron ore owned revenue-producing basi . a fairer basis of duty on iron ore would be 75 cent::; a ton instead of 25 cents. The Pennsylvania Steel Company, the in Cuba by the two concerns named is said to be equal to the Bethlehem Steel Company, and their allied interests, who are working holdings of the United St~tes Steel Corporation in the Lake for free ore for thefr own profit, regardless of the welfare of others, are Superior district. injuring the whole iron and steel trade of the country by giving ground for the ~rowing feeling that the duty on finished products should be The Pennsylrnnia :Steel Company· and the Bethlehem Steel reduced Just as largely as the duty on the ore. They stand to lose far Company might, perhaps, want free iron ore, because if they more in this way than they will gain by a reduction on ore, unle s~ import as much iron ore as is predicted by the l\1anufacturers' perchance, their fight shonld result in forcin.g the Steel Corporation to buy them in order to control their ores_ This would be a disaster to Record they would sa:re making a yearly contribution to the the whole country, for every section would feel its di.re effects. United States 'l'reasury of the sum of $500,000, while the con sumers of .iron would not be benented by granting them such l\Ir. PAYNTER. Mr. President, I have said all I desire to say privilege. · on this subject. I ask to have the article from the 1\Ianufacturers' Record The VICE-PRESIDENT. The question i_s on agreeing to the printed with my remarks, without reading. substitute offered by the Senator from Missouri for the sub Mr. BACOX Let it be read. stitute offered by the Senator from Rhode Island. Mr. PAYNTER. It is a pretty long article, and I dislike to Mr. KEAN. Let it be read. interrupt the proceedings of the Senate to that extent. The SECRETARY. After the figure" 190," numbering the para The VICE-PRESIDENT. Without objection, the article will graph, strike out the remainder of the paragraph and insert: be inserted in tl1e REcoRD. Zinc in blocks or pigs ; zinc, old and worn out, fit only to be manu !actUl"ed; oxide of zinc in whatever form o~ combination; and all man The article referred to is as follows : ufactures made wholly of zinc, or of which zinc is a material component, POSSlBLE RRSULTS THAT WOULD FOLLOW A REDUCTIQN OF DUTY ON IRON shall be admitted free of duty. ORE. Mr. I (Reprinted from Manufacturers' Record, May 27, 1909.] KEAN. should like to ask the Senator from Missouri The Pennsylvania Steel Company is under contract with the bond what is the object of the amendment? holders of the Spanish-American Iron Company to import not less than Mr. STONE. The amendment speaks for itself. 1,000 000 tons of uban ore annually. This contract was made when Mr. ALDRICH. It seems to be perfectly clear and definite to the bonds of the Spanish-American Iron Company, the stock of which is owned by the Pennsylvania Steel Company, were sold to the public my mind. · last year. Thu.s, regardle s of whether tho duty on these ores be 25 Mr. KEAN. I supposed it was for no other purpose than to c nt r 75 cents a to-n, this million tons. will come into the country. try to put a duty on zinc ore. . The agreemen.t was that the Pennsylvania Steel Company would "take Mr. STONE. . Mr. President, zinc ore under existing law is and pay for a minimum of 1,000,000 tons of ore annually." The aggre gate might run far beyond 1,000,000 tons. There is no condition to on the free list. The House bill, known as the " Payne bill," the contract with relation to the question of duty. With an estimated fixed a duty on the zinc content of ore at 1 cent per pound. quantity of 600,000,000 tons of high-grade ore which can be mined by The amendment proposed by the Finance Committee provides ·team shovels at a very low cost, a duty of 75 cents a ton would no more interfere with the incoming ·Of this ore than would a duty of 25 for a graduated. scale. If the amendment I offer hould • be cents a ton. The contract stands without any loophole, and, as the agreed to, it would leave zinc ore still on the free list, and Pennsylvania Steel Company is practically owned by the Pennsylvania would in addition send the chief manufactmes of. zinc to the Raill"oad and the Reading Railroad, there is ample financial backing to carry out not only this contract, but any other contract that this com free list also, to keep company with the ore. pany might desire to make. This ore is a great bed, covering many Mr. President, since this question has been under considera thousands of acres It has no overburden and. can be scooped up by tion by the committee~ of the two. Houses there have been steam shovels as easily as could a bed of gravel. A large contractor who has made a personal study of it says the ore can be put on the some powerful interests· at work here to keep zinc ore on· the cars at a cost of 10 cents a ton for the steam shoveling. The, PennsyL- free list. What is commonly ~own as the " zinc trust," located } ; 1909. CONGRESSIONAL RECORD-SENATE. . 3341 in New Jersey, has been very persistent in tne advocacy of free The SECB.E.TAXY. It is proposed :to s.trilre ·mrt lhe whol-e .of ore, and others have joined in that contention. I wish new to ;paragraph 19:0. vut these interests, and ·th-0se who -agree with them, to tile test. The VICE-PRESIDENT. Of -eourse the paragraph :must be I -propose to leave zinc ore on the tree list if the ducts of the mines. Carolina .has not ""\'iOteil. Mr. KEAN. Mr. President- Mr. DILLINGHAM. 'Then I will withdraw my ·vote, maving Tl.le '\TICE-PRESIDENT. Does the Senator from Missouri a general pair with that 'Senmtor. yield to the Senaror from New J.ersey~ .The rresnlt W'8.S .announced-yeas 1:6, Ill.Rys 49, ra:s -foilows.: .. Mr. STONE. Certainly. YEAS-.1.6. . l\fr. KEAN. I .merely want to ask the ;Sena.tor .ifrom Mis- "Bacon na-vts ,Money Simmons souri if they do not have :free zinc a:t the present time·? ·Chamhei:.laln '.Fletcher '0ver:man .smtth, --s. ·c. 1\Ir. STONE. If the Senator from New .JeFsey is :asking for 151ay_el Foster !()wen 'Stone Martin !Paynter Tl'aliaferro :dnfurmation~ if he does n-0t know, I will inform bim that under · · a:ni .th-e present ii.aw zinc ore comes in free might -as w.ell dispose of rt:he :amendment of the Senator from :recently:; and ...... ~_.. f t .1 d 1·ssouri Whereas .:for •l.lle 1l.U>.~ or Y -yea.rs ;.,.ea ore .has .been 'SU.bject to an M • ,. • adequate tariff duty, the result of which is that the State of '.Ka.m>as 1.s l\1r. BURTON. I merely wish 1o 1lav-e it stated. to-day one of the largest lead-producing States in the :Union and since The VICE..:PRESIDENT. Is it an amendment rt:o the camena- the .cot of Jill'.Odncing lead o~ IRil.d zinc ore in the State ot' Kansas is t f th s t f · M. · Q the same : Now ltller.efor.e be .it men O · e ena or .rom .isso~ri ·, . . . Resol,,;ed by the .house .of rep1:esetitatives ·(the ·e-e.nwte ·conawrring l\lr. BURTON. It is not. I ·ask that it be stated 'SO that 1t t1zerein), "Tha-t·we favor a just and equ1table import iiuty on an zinc.ores, may be ·understood. and :that we request -0ur .Senators in the :Senate of th~ 'United State;; ·and The VICE-PRESIDENT. Without objection, the ·amendment our MeJ?b~·s of Con~ress to work and vote _fo.r -such legislation as will h th s t "' . -Oh" ill 1-.. tnted save tills important md.ustry fr.om ,destruction and :produ.c.e a .subs.tan- l>TOPOSe d 3342 CONGRESSIONAL RECORD-"SENATE. JUNE 16, The above concurrent resolution was offered in the house, rules sus necessarily, to a considerable degree, be the result of compro pended, emergency declared, read second time, and adopted February 11, 1909. Message to senate read first time, rules suspended, emergency mise. declared, read second time, and adopted February 11, 1909. In my own judgment, the most objectionable feature which is J. N. DOLLEY, likely to appear in the pending bill is the relation between raw Speaker of House. Attest: materials and the finished product. Every eountry-at any W. T. B E CK, rate, every European country-of advanced economic develop Oliief Clerk of House. ment has shown a general tendency toward freer raw material W. J . FITZGERALD, President of Senate. and, for the most part, to lower duties on food products and Attest: the elementary materials of life. For instance, seventy years z. E. WYANT, ago there was a duty on wheat, or corn, as they call it in Great Sect·etary of Senate. Britain, which was adjusted according to the price; it might Mr. SCOTT. I desire to have read a very short communica reach a maximum of 77 cents per bushel There was a similar tion from the president of one of the largest foundries in this duty on other kinds of grain. These duties have all been country, who had a contract to furnish the foundry work of the abolished. Pennsylvania Railroad Company in their effort to get into New There was also a duty on almost every variety of ore. But York City. the duties on ores have not only been abandoned in England, but The VICE-PRESIDENT. Without objection, the Secretary in France and Germany, so that zinc ore, lead ore, iron ore, and will read as requested. other like materials for manufacture all enter free of. duty. The Secretary read as follows : It should be stated also that in those counh'ies, as compared (Copy of telegram.) with our own, there is a scarcity of these articles, a fact which CHICAGO, ILL., Aprll ~, 1909. affords some arguments for and some arguments against a duty WHEELING MOLD AND FOUNDRY COMPANY, Wheeling, W. Va.: here, though it certainly should be said that with the great I! proposed tariff on zinc ores, hitherto admitted free of duty Is abundance in our own country there is not the same basis for passed, it will make it impossible for us to operate intended plant. a protective duty on these ores as would be afforded by the con Are therefore obliged to ask that you cancel our contract for construc- in tion material. · . ditions in Germany and France, or even England. MINERAL POINT ZINC Co. I desire to state briefly some illustrations of the relation be tween raw and finished material in the pending bill. The duty WHEELING MOLD AND FOUNDRY COMPANY, of H cents on lead ore is figured at 78.8 per cent. The duty on . lVheeUng, W. Va., April 15, 19~. Hon. N. B. SCOTT, white lead is about 50 per cent. On pig lead and other less ad . Uni ted States Senate, Washington,, D. 0. vanced forms it is somewhat less than that. So here the duty I)EAR Srn: Inclosed please find copy of telegram received to-day, on the raw ore is twice as great as the average duty on the which is self-explanatory. finished product. I will not go into the merits of tariff: or free trade. That is too big a subject, but I will say that unless you have positive proof that a This proposed duty furnishes a more serious incongruity whole lot of good can be accomplished by changing the tarifl'. I think it than that, for if the duty proposed in this paragraph is adopted, is a great mistake to agitate the subject. the ad valorem rate of. duty on zinc ore will approximate This country, as :tar as I can see, has been, on an average about as prosperous as any other in the world under the present tarifl'.. It is 84 per cent, while the duty on the spelter, or pig zinc, will be of course, all right to correct a real evil, but I do not see any use i~ slightly in excess of 20 per cent. Such a difference is not only disturbing things just for the sake of a change, especially when the first e1fect of such a change is from bad to worse usually. an incongruity; it is an absurdity; because with every improved Very respectfully, yours, process by manufacture there is an increment of labor; an · C. El. BLUE. increased investment of capital is required, and an additional Mr. SCOTT. Without reading, I ask that the following duty is demanded. That is the general rule running through letter be printed in the RECORD. this tariff bill and through every oth~r tariff bill which has There being no objection, the letter was ordered to be printed stood the test. in the RECORD, as follows : I do not deny that there should in some cases be duties on WHEELING COrutUGATING COMPANY raw materials; that those which exist should be continued .at Wheeling, W. Va., April v,,' 1909. lesser or greater rates; and that where a valid reason exists, Hon. N. B. ScoTT, Washi ngton, D. O. even in case one has not already been imposed, one might DE.An SENATOR : For our annual production of about 50 000 tons o! be imposed. This statement, however, should be coupled with galvanized sheets, galvanized roofings, and galvanized ho~sehold ware another, to the effect that the whole tendency in the most we require 6,000 to 8,000 tons of spelter (zinc) , or about 3 per cent to rational tariff legislation has been toward the removal of duties 4 per cent of all the zinc smelted in this country; and understanding that the Payne blll as it now stands provides for a duty of 1 cent per on raw materials. ound on the zinc contents of zinc ores, we ask that you use your Whatever ·may be the general principle, there is no justification Enfiuence to have these ores admitted free, or, at the most with not more than one-fourth cent per pound tarit'f. ' whatever for a duty on zinc ore. Why is it needed? I want to I! the 1-cent rate becomes et'fective, it will be very hard on us !or give a few facts and figures. In the year 1900 the average price under normal business conditions this country can not, so we uiider of ore at the Joplin mines was $26.50 per ton. The a>erage stand and believe, produce ep.ough ore ~o meet the demand for spelter, and, therefore, the importation o! foreign ores is absolutely necessary price in 1907 was $44.36 a ton. Here was an increase in value and it follows that the price Of SJ?elter will be very high, working a in seven years of 67 per cent, or approximately from $26 to $44. double hardship on us through havmg to pay a higher rate for spelter In 1897, when the Dingley bill was passed, the price at Joplin and having a lower rate fixed on galvanized sheets which are coated with it. . was $22.28. In 1894 it was $13.60. In thirteen years the price If a 1-cent per pound tax is levied on the zinc contents of foreign as compared with 1894 increased from $13.60 to $44.36, or to ores, it will probably mean an increas-e of about $25 per ton in the more than three times as much. Under these circ\l.mstances price of spelter, and this would make an increased cost on galvanized sheets o! ~4 to $5 per ton, and on galvanized ware, such as pails tubs what need is there of any duty? and similar household articles, of $6 to $9 per ton. ' ' What is the reason for this increase in price? It is because We believe in the protection of American labori but a duty of 1 cent per pound on the zinc contents of zinc ores wil protect labor beyond of the healthy development of the industry of smelting zinc into all reasonable bounds, and back of this movement for this much of a spelter and into zinc sheets, and the very large use of these duty are the mine owners, who own the . zinc-bearing ground and zinc products for brass, which requires about 16 per cent of the charge all the way from 20 per cent to 25 per cent royalty on all ores taken from it. It is this outrageous tax levied by the mine owners that zinc made in the country; for galvanizing iron and steel, which is working such a hardship on the actual miners, and it is the mine requires about 65 per cent; and for zinc sheets, requiring about owners, not the miners, who will get most of the benefit if this pro posed duty is made effective; but irrespectlve of who may receive the 13 per cent. . benefit of such nn unnecessarily high duty, there is no doubt but The industry of manufacturing spelter is protected by a duty of what we will be very seriously injured. Therefore, if you can con H cents for the zinc spelter or pig zinc, and 2 cents per pound sistently use your influence. ~n our behalf, it will be very much appre for the sheet zinc. The price of the spelter has been slightly ciated. We are to-day writmg to Senator ELKINS and Mr. HUBBARD upon the same subject. higher than that in the foreign market, usually about one-half Because a large part of the spelter we use ls consumed at our Mar of a cent per pound, thereby showing very conclusively that tins Ferry (Ohio) works, we think it quite likely that the Senators from Ohio may feel disposed to work with you toward permitting for there has been no trust or combination in this business, because eign ores to be brought in free, or at the most with a duty of not the producers have not taken advantage of the duty of 1! cents more than one-fourth cent per pound on the zinc contents of zinc ores in the price which they have charged. levied against them. Very truly, yours, It will be noticed that the production of spelter has increased WHEELING CORRUGATING COMPANY altogether out of proportion to the increase in zinc ore. Zinc . ALEX. GLASS, Secretary. ' ore in the Joplin district was worth, in 1900, $26.50, as I have Mr. BURTON. Mr. President, it is hardly possible to frame said; and it is now worth $44.36. The mining or production a tariff act which will be entirely satisfactory t~ a majority or has increased from 248,000 tons to 286,000 tons. The spel ter even to any of those who support it. Such a measure must produced in th~ United States has increased from 123,000 tons include so great a variety of interests and of items that it must to 249,000 tons. It will thus be noticed that the J op.lin ore has I .· 1909·. vONGRESSIONAL RECORD-SENATE. 3343 in.creased in,pr:oduction only 15.per cent, while the production· at vanized iron, such as.the black iron, the terneplate; a.nd if these sp lter has increased 102 per cent. One has increased. riot quite , prices go a little.·higher the demand for galvanized. iron and the one-sixth-that is, the 01~e-while the spelter has more than. other products of which zinc is a part will fall off and other doubled. articles will. take their place. Glass has been used as a 8ubsti- This explains the increase in price. The manufacturers of the tute in certain cases. The imposition of this duty would mean snelter haYe found it difficult, if not impossible, to obtain a sum- that thi& uticle would rise in.. price out of- all proportion to any cient supply in this country. While their production has other article in the metallic schedule; and, as it rises in price, doubled, their prices have increased only 35.8 per cent, as against and other articles do not show the same increase, the result will an increase of 67 per cent in the price of the ore. That made it be that other metallic substances will be used in place of zinc necessary to obtain sources of ore from other States or coun- and its price will fall. I make the prediction with entire con tries. fidence that. if these prices continue rising-and they are in- It is true this amendment differs somewhat from the House creasing very rapidly now-the in.creased manufacture of zinc bill in the lower grades up to 25 per cent. There is a lower and the increased demand for it, which have both been charac cluty on the zinc contents, but that means;nothing to the smelt~ teristic of the ti'ade in the.last-five or ten years, will experienc:e ing trade. It may mean something to the manufac.ture1~ of zinc a. change;- so that, instead. of its being on an ascending plane, it oxide, but in the manufacture of speller- anything under 20 per: will go on a descending plane. cent is mere dust; it is not available for the· manufacture of There are some other things about the cost of zinc. in this zinc, and no ore under about 30 per. cent can. be· profitably util- Missouri locality. I have received many letters from members ized for the manufacture of zinc spelter. of investing firms from my own. State asking me to vote fol" this It has been. necessary to go further afield, to go to Mexico duty on zinc ore.. What is the reason? An unusual number of · and to other places, to obtain supplies of this ore. The manu- mine:s,. not all ot them profitable for working, are being ex facturers ot zinc ha"\"'e not gone there because they desired to. ploited by brokers and others. Again, an unduly high royalty ,Why? The Joplin or 1\Ii.ssouti ore contains about 60 per cent is: paid to the farmers or ownei:s. of the ground. It is in the of pure zinc; the Mexican ore only 30 to 35 per cent. That first instance about 15 per cent of the value of the: gr:oss product: means that. the cost is nearly twice as great in: the smelting of Then, these leases, in· which 15 per cent is the amount ta be the ore into the zinc. It means, in· the next place, as against paid to the owner, have. been frequently sublet. Each snblessee the whole proposition of. imported Mexican ore, that they must gets some added· price-5 per cent more, then. another 5 per pay $6.50 a ton for bringing in the I recommend, then, first, the adoption of a joint resolution by Mr. ALDRICH. I move to l"B.y the motion on the table. two-thirds of both Houses, proposing to the States an amend The PRESIDING OFFICER. The Senator will modify hiiii ment to the Constitution granting to the Federal Government motion in accordance with his own wishes. The question then the right to levy and collect an income tax without apportion will be upon agreeing to the motion of the Senator from Rhode ment among the States according to population; and, second, Island. the enactment, as part of the pending revenue measure, either Mr. ALDRICH. To lay the motion for instructions upon as a substitute for, or in addition to, the inheritance tax, of an the table. · excise tax upon all corporations, measured by 2 per cent of their Mr. LODGE. To lay the motion for instructions upon the net income. table. WM. H. TAFT. Mr. .GORE. Mr. President-- THE WHITE HOUSE, J'llne 16, 1909. Mr. LODGE. That is not debatable. Mr. GORE. Under the motion to table I have no right to The PRESIDING OFFICER. Without objection, the message discuss it, but by unanimous consent--· will be printed (S. Doc. No. 98) and referred to the Committee . on Finance. Mr. LODGE. The motion is to refer to the Committee on Finance. The Senator from Oklahoma proposes to amend it _by M1·. HEYBURN and Mr. GORE addressed the Chair. · adding instructions. Tpe motion of the Senator from Rhode The· PRESIDING OFFICER. The Senator from Idaho [Mr. Island is to lay the amendment on the table. HEYBURN] has the floor. He rose first, and has been recognized. Mr. HEYBURN. I think I was recognized before the mes Mr. TILLMAN. I think the Senator from Massachusetts is sage was received. in error there. There is no motion in regard to this message at all, but it is the action of the Chair in having under The PRESIDING OFFICER. Does the Senator from Idaho the ordinary course referred it to the committee without a yield to ihe Senator from Oklahoma? motion. · Mr. HEYBURN. For what purpose? Mr. ALDRICH. The Senator, I · think, is mistaken in that. Mr. GORE. I wish to object to the reference. I should like The suggestion was made that it be referred to the Committee to make a suggestion. on Finance. Mr. HEYBURN. I yield for the Senator to make his ob Mr. TILLMAN. By whom? jection. Mr. ALDRICH: By. the· Chair. Mr. GORE. I desire to make a moticn, Mr. President. I l\Ir. TILLMAN. But the Chair can not make a motion. inquire if the Senator from Idaho has yielded? Mr. ALDRICH. , That is the motion. The PRESIDING OFFICER. The Senator has yielded. Mr. MO:N"EY. I rise to a parliamentary inquiry. Mr. GORE. l\fr. President, as I understand, the Chair pro- The PRESIDING OFFICER. The Senator from Mississippi. posed-- . Mr. ALDRICH. It goes there under the rule. ·. Mr. HEYBURN. I did not yield for remarks accompanying Mr. TILLMAN. But there is no motion. the motion. I thought the Senator merely desired an _oppor Mr. MONEY. I understood that the Senator from Oklahoma tunity to object. I have the floor for the purpose of discussing had the floor to make a motion. He had a right to· move, and . another matter. he had a right to say what he pleased upon that subject; and Mr. GORE. Mr. President, I did not want the announcement .who could take him off the floor by a motion to table? He made that the message was referred, because I desired-- had the floor. The motion to refer is not privileged. You can Mr. ALDRICH. It has already been referred. not take a Senator off the floor who has it by the recognition of The PRESIDING OFFICER. The reference has already the Chair-- 1 been made, and the. Senator from Idaho has been recognized Mr. HEYBURN. He had it by unanimous consent. upon another subject. Mr. MONEY. Not by unanimous consent, but by the recogni Mr. GORE. I was trying to get the attention of the Chair. tion of the Chair. You were on the floor for something else, as Mr. BACON. Mr. President, if you will pardon me a sug you stated yourself, and the Chair ruled you were not in order gestion, the question of ref~rence of_a m~asure of any kind is or did not have the floor because the inatter of reference had always in the control of the Senate. It is the custom to yield not been concluded. The Chair then · rec9gnized the ·senator that to the Chair, subject, of course, to th~ right of the Senate from Oklahoma, who proceeded in his o~ right to make. a to decide that matter. I submit to the Chair that the Senator motion to refer with instructions; and he has the right to say from Qklahoma was in ti~e, because the C_hair did not put any what he chooses on that subject, and can not be taken off the question with reference to it arid there was no opportunity to floor by some other Senator who wants to make a motion to - make any objection. tahle. . Mr. HEYBURN. Mr. President, I had . asked for and ob Mr. ALDRICH. · The Senator from Oklahoma had taken his tained ,recognition," if I am not entirely mistaken, before the seat, and I was recognized in due course by the presiding officer message from the President was received. · and made the motion. Mr. BACON. Very well. Ml': HEYBURN. !--- Mr. HEYBURN. And I merely yielded the floor for the pur Mr. MONEY. I did not know that was the fact. I thought pose of having the message received and read. the Senatoi· from Oklahoma was standing all the time- · The PRESIDING OFFICER. The Chair is of the opinion Mr. ALDRICH. Oh, no. . that the question of reference may be considered open. The Mr. MONEY (continuing). And waiting an opportunity . to Senator from Idaho. [Mr. HEYBURN] had the floor. He yielded continue what he had to say. Of course if he had taken his seat for the reading of the message, and if the yielding of the Sen and abandoned the floor, that is another question. , a.tor from Idaho gave room for the reference of the message by - Mr. HEYBURN. I yielded the floor for a purpose that was consent, it gaye room also for a moti6n regarding the reference expressed and limited. I had the flo.or before the message came or for an objection. So the Chair does not think that the into the Senate. question ought to be considered closed by the rather peremptory Mr. MONEY. I know you had. treatment of the subject, which is customary, and which ordi Mr. HEYBURN. I yielded for the purpose of receiving it. narily is treated as being subject to being open for any "objec: I did not yield for the purpose of considering the question tion or motion; The Chair will recognize the Senator from whether it should go to this. committee or that committee, and Oklahoma for the purpose of making an objection to the refer all that has intervened since the reading of the message was ence of the message or a motion in regard to it. concluded has been under a waiver on my part, as a matter of Mr. GORID. Then, I move that the President's message just courtesy. I was proceeding to speak upon t~e -question undei· read be referred to the Committee on Finance, with instructions consideration; which is not the message-- to that committee to report, on or before Friday next, a joint Mr. MONEY. The Chair has already_ruled, as I µnderstal!d... resolution proposing an amendment to the Constitution of the against the position of the Senator from Idaho; but whether United States authorizing the levy and collection of an income he has or not, he certainly will rule that way when his atten~ tax in accordance with· this message. tion is called to it, because, having the message here, the Sen Mr. HEYBURN. I retain the floor, Mr. President. ator can not resume the' floor upon another question, rutd tlius Mr. McLAURIN. Is that debatable? interrupt the proper reference of that message. He has no Mr. HEYBURN. If it is debatable, I have the floor. right to the floor until that is disposed of. Mr. McLAURIN. I understand. · Mr. HEYBlJRN. The disposition of a message is not privi Mr. ALDRICH. I move to lay the amendment upon the leged. The receiving of a message is. I yielded to priYileged table. business. I had not yielded to the question of the disposition of Mr. GORE. I wish to modify the motion by striking out this message. That might involve a week's discussion; and "in accordance with this message." having had the floor, I am entitled to retain it I .may yield XLIV-210 8346 OONGRESSION AL RECORD-SENATE. JUNE 16, it within the rules of the Senate for a limited prrrpo8e, ifer a : Mr. ALDRICH. I insist upon· the :regular ·order, Mr. Presi· question, <>r fol' a more -extended pnrpose: That is entirely-- - dent. 'The PRESIDING OFFJ:CER. "The Chair is of the -opini-On Mr.. GORE. I wish to reform my motion. lthat :the-- , ?ifr. ALDRICH. That is not _possible now. 1\fr. NELSON. I rise to a point of order. Mr. BAILEY. I hope ithe S.enator from Rhode J:sland will :not · The PRESIDING QFFIOER. 'The Senator· fr.em Minnesota .object to that. l will not vote for this motion as it is :worded, will state his point of order. because if they :are to rej)ort a constitutional :amendment to the · ·Mr. NELSON. I mak~ this -suggestion to the :Senator from .Senate I shall insist on :,giv.ip...g Congress the power to graduate 'Rhod~ Island: A motion to lay this amendment on the table the income tax, and I think we will give Senators on the <>ther lays the whole proposition on it.he itable. 'Th.at iS tlle :general side a little more than they bargain for when we get to that rule of parliamentary law. · · proposition. The Senator trom -OklahoIDa, I nm sure, agrees , 1\fr. KEAN. Not in the .Senate. with me that if we are to have the neeessity .of a long and tedi· Mr. NELSON. The only exception ito the rnle is found in ons eonstitutional amendment it :Shall be one ithat wlll not need Rule XVI : · 'to be amended -for many yeaTs to come. - · ·Any amendment to -a _gene:ra:l ·appr:opriati.on bill may be laid on '.the . I hope the Senator from .Rhode Island will not insist upon the able without ·prejudice to :the bill. technical rule w'hi.Ch will pre-vent the :refo],'mation of the Sena- This is not a general apprO'priation bill, and it ·does no.t :come :tor's motion in accordance w.ith the :Senator's views. 'Within the 1rule. The PRESIDING :OFFIC-Em.. The Ohalr 'is of :the opinion ·.Mr. LODGE. If the Senator will -excuse me, be ,is not qunting that ·wlrl.le the Senator fro-m Oklahoma is not now at liberty to the :rule which .app-1ies. It r.eads: · vary in an_y respect the motion which he actually made, if the When -an amendment ·proposed to any ·pendmg measure 'is laid on .the 'Secretary bas failed te correctly Tecord -the motion which was table, it shall not carry with it, or prejudice, such measure. ~ made, the Senator from Oklahoma ·may correct it. ''.Any pending measure." · l\Ir. GORE. I withdraw it, and make it in this shape. In iMr. NELSON. This is~ 'motion t-0 Teter. fact, the Secretary did- not report it ·as I -suggested it. The Mr. LODGE. This is a pending measure. motion was to instrtLct the Finance Committee to Te.Port ·a joint The PRESIDING OFFICER. The -Chair is -of \the op.inion -resolution submitting a eon-stitutional amendment. The Secre· that since the Senator from Idaho yielded to permit the read- : tary did not read it in that way. I wish to submit the motion ing of the message of the President and the r~ferenee of the in th.is shape, that the Finance Committee Shall be instructed to message to the appropriate committee, ·or· other .disposition of , report, on or before F.riday next, a joint resolution submitting the message, it is tno longer ·:within his pow:er so to limit fhe a constitntianal .amendment authorizing _tbe J.evy and coll-ection oppurtenity as to sa_y whether or :n:ot the Senator from (}kla· ref Jill ine0me tax. · homa ·has the right to discuss the Preposition for the reference , l\Ir. CLAPP. The Senator from Oklahoma will allow me to of the message. The ,Ohair, .bow-ever, understood the Senator £3.il .bis :attention-- ftem -Oklahoma, .ha-vhtg ·offered his resolution, whlc:h wru:; in the Mr. ALDR'ICH. I must insist 1lpon the .r.egular order. :nature .of an amendment of the proposition to ;refer the message Mr. {)LAJP.P. I rise to a ·point of order. .:of the P.residen.t to the Fina.nee -Committ~ to yield the '.floor. · The PRESIDING OFFICER. The Senator will state his point He refrained from supplementing bis motion by any observations. 'Of '()rd"0r. · Thereupon the Senator .from Rhooe Island rose .and .moved 1:.o , Mr. CLA.P.P. The point of ~rder is ihat the Ohair ·had :already lay :0n the .table the amendment o:ffer.ed 'by the .Senator from announced in pro forma manner that -the message would be .re. Oklahoma. That motion having been made, the Chair is Qf ferred to the Finance The roll call having been concluded, the result was an I have never known such a revolution to occur in proposed nounced-yeas 51, nays 25, as follows : legislation in tlie few minutes that have elapsed. I feel as YEAS-51. though the Republican party were brought up in this moment Aldrich Clark, Wyo. Frye Nixon face to face with the question whether or not they shall main Borah Crane Gallinger Oliver tain the old protective tariff policy or whether they shall step Brandegee Crawford Gamble Page aside and seek to carry out the vagaries of those whose idea Briggs Cullom Guggenheim Perkins Bristow Cummins Hale Piles of government is to get what the· other man has and to keep B1·own Curtis Heyburn Root all they themselves have. In other words, to make the statutes Bulkeley Dick Johnson, N. Dak. Scott that are intended to affect the civil rights of the citizens penal Burkett Dillingham Jones Smoot Burnham Dixon Kean Sutherland statutes. In other words, to see whether or not you can not Burrows Dolliver La Follette Warner devise some means here to meet the demand not of those who Burton du Pont Lodge Warren think and who benefit by thinking, but of the great mass whose Carter Elkins Mc Cumber Wetmore cry goes up at the dictate of a local leader. jWhat occasion Clapp Flint Nelson can there be, if the Government is provided with sufficient reve NAYS-25. nue under this law, of enacting some additional law that will Bacon Davis Martin Smith, S. C. Fletcher Money Stone· provide a larger sum of money? What are we going to do with ~:~head Foster New lands Taliaferro it? Has some one some covert idea of a new plan of govern Chamberlain Gore Overman Tillman ment, by which we are going to branch out and spend more Clay Hughes Paynter Culberson Johnston, Ala. Rayner money than is required under the present system? If so, it Daniel McEnery_ Simmons should be disclosed. • NOT VOTING-15. What would you do with the revenue that was received from Beveridge Depew Penrose Smith, Mich. an income tax when you already have money enough in the Bourne Frazier Richardson Stephenson Treasury to meet the Government's necessities? There is in my Bradley McLauri.n Shively Taylor untamed bosom an idea. I would like to see an income tax Clarke, Ark. Owen Smith, Md. levied upon certain things and for certain purposes and within So the motion to table was agreed to. certain limitations, but it does not emanate from the conscien The PRESIDING OFFICER. The message stands referred tious idea that I have of the duty which confronts me. We as upon the original declaration, and the Senator from Idaho were not called together here for the purpose of getting even is recognized. with somebody or punishing somebody. We were ·called to- . Mr. BEVERIDGE subsequently said: Mr. President, I was gether for the purpose o! revising the revenue law that provides necessarily absent when the vote was taken on the motion the money for the expenses of the Government, and in doing of the Senator from Oklahoma [Mr. GoBE]. If I had been that the man who would allow the spirit of resentment or the present, I should have voted "yea", upon the motion of the spirit of opposition to interest to enter into it-well, in my Senator from Rhode Island to lay that motion on the table. judgment, he would have forgotten the duty that rested upon Mr. HEYBURN. Mr. President-- him. Mr. BROWN. Will the Senator yield to me for a moment? I rose to discuss the zinc item in this JJill, and in doing so Mr. HEYBURN. I will yield for ·a moment, but for nothing it was my purpose to discuss it, first, from the standpoint o! the that will displace the pending business. revenue which we are here to provide, and, second, in its rela Mr. BROWN. Out of order I offer a joint resolution. - tion to those interested in that enterprise; and I will leave fur The PRESIDING OFFICER. Does the Senator from Idaho ther consideration of the suggestions contained in the message yield to the Senator from Nebraska? for a future occasion. It may be that we will not succeed in Mr. HEYBURN. I -yield for the purpose of allowing the passing any bill that wm provide enough revenue through our Senator to introduce a joint resolution. custom-houses, and then we would be compelled to go out and The PRESIDING OFFICER. Out of order the Secretary resort to some other kind of taxation. But the founders of the will-- Government never intended that that should be true. I was Mr. HEYBURN. Not for any comment. proposing to discuss this question along the lines of first in Mr. BROWN. No. tention on the part of the founders of the Government; and I Mr. BACON. Under the rule, the Senator can not yield for . will not enter upon a discussion of the principle of protection at that purpose. this time, because we have already discussed that question. Mr. ALDRICH. That is true. Mr. President, it is my purpose to offer an amendment to the Mr. HEYBURN. I think that is true, but I did not care to substitute offered by the Senator from Rhode Island, my amend suggest it. ment to provide in the beginning of the paragraph- The PRESIDING OFFICER. Except by unanimous con Zinc contents contained in zinc-bearing ores of all kinds, 1 cent per sent-- pound. Mr. BROWN. I ask .unanimous consent. I intend, if I can, to have the attention of those who will Mr. BACON. The rule is that the Chair shall enforce it with vote upon this question. I will not spend one minute upon this out any point of order being raised. floor in order to make a record of what I say. I suggest the l\Ir. BROWN. I ask unanimous consent that the joint resolu-. absence of a quorum. tion-- The VICE-PRESIDENT. The Senator from Idaho suggests Mr. HEYBURN. It can not be given. the absence of a quorum. The Secretary will call the roll. The PRESIDING OFFICER. The Chair is of the opinion 'rhe Secretary called the roll, and the following Senators an that it can not be done until the Senator from Idaho has yielded swered to their names : Aldrich Clay Frye Page the floor and the Senator from Nebraska proceeds in his own Bacon Crane Gallinger Paynter right. Bail PY Crawford Gamble Rayner Mr. HEYBURN. Mr. President, I do not suppose there ever Bankhead Culberson Gore Root Borah Cullom Guggenheim Scott was an occasion in the history of the Senate where the condi Brandegee Cummins Heyburn Simmons tions that confronted us and the questions to be determined Briggs Curtis J"ohnson, N. Dak. Smith, Md. changed so radically between the time that a Senator was rec Brown Daniel Johnston, Ala. Smith, S. C. Bulkeley Davis Jones Smoot ognized and the time that he came back five minutes later upon Burkett Dick Kean Stone the floor. We were engaged in considering how we might raise Burnham Dixon La Follette Sutherland revenue to conduct the affairs of this Government and, inci Burrows Dolliver Mccumber Taliaferro Burton du Pont McEnery Tillman dentally, protect the American people in the field of competition Carter Elkins McLaurin Warner against foreigners. Chamberlain Fletcher Money Warren Since I first addressed the Chair, about ten minutes ago it Clapp Flint Oliver would seem that one of these great questions was pretty :i;i.ea'rly elark, Wyo. Foster Overman eliminated from consideration. When the Finance Committee The VICE-PRESIDENT. Sixty-six: Senators have answered first reported this bill, they reported correctly, in my judgment to the roll cail. A quorum of the Senate is present. The Sen that it would provide the revenue necessary to conduct the af~ ator from Idaho will proceed. fairs of the Government. If that is true, and I believe it is Mr. HEYBURN. Mr. President, if I can have the attention true, where is the necessity of proposing these statutes providing of the Senate, the item of zinc in ore is as important as that of ' for a tax upon the incomes of the people or a tax upon the gross the cotton schedule, the wool schedule, the lumber schedule, or earnings of corporations, or any other kind of a tax, in addition of any other schedule; and those who produce it and are inter to those proposed in the bill, which already provides a sufficient ested in it are as large in numbers as those interested in other I fund for this Government? schedules. ; . I 3348 CONGRESSIONAL RECORD-SENATE. JUNE 16, The committee n1>-0rted a. duty' of 1 cent per pound on the lieve that just the contrary is the. ruler ]daho is a zin.e-pro· zine conten.ts oi. o:i:e We ha:d a right to. believe that the com1 ducing State. Some may possibly sa-y, with ::tome reason,.. th.at mittee would stand fo:t: that report.. first,. because it was. the I bring Idaho into these debates pretty often, but I bring it in report. of the committeer and a:s weilI because: i was just. when it is. a good illustration of the p-rinciple. We had net l\Ir. ALDRICH.. .Mr. President,. in justice to the committee,. been impoFtin.g zinc into the llJnited States from Mexico; miti:I :r will have to say that the committee have o:n. seyera.1 occasions within the· last five years: we never imported! any at an. At the st~ ted that they had noft arrived at any conclusion aJxmt the time the last tariff bill was enacted the.re was no occasion fo1· duty- on zinc: ore. They made no :report: upon the subject until mentioning itp because it was: not an item in existence.. You thisi one. have been. told here a dozen times within twenty-four hours Mr. IIlIYBURN. Paragraph 190 in the bill provides for a. that zinc in o-re had always been on the free list, but no one duty on zinc ore. has before suggested or seemed to undei:stand that the reason .Mr. ALDRICH. That :ts the H{)ase provisloo. why it was on the free list. was because ther was no zinc ore 1\-fr. HEYBURN. It was reported here ·by the Senate: com1 importoo at the time of the enactment of the. existing tariff: law, mittee~ and it is :tigmed out with ronsiderahle detail and care or for many years afterwards. in. the book ot imports thnt aeeompanies it. The necessity had not a.risen. It has arisen now. There Mr. ALDRICH.. Technically, of coarse,. the Senat()t' from have been developed in Mexico bodies of zinc ore that can b.e Idaho is correct to that extent; but I tbink the:re is: no Member scooped up; and put on the cars in vast quantities, and brought of this body who d-0es not know that the Committee on Finanee into this ecnmtry, either in the shape of zinc or spelter. They have been. struggling with this q~stion evei: since the bill was can either bring it here as ore, or they can reduce it ta spelter reported. • on that side of the line and bring in the· spelter. In either MF. HEYBURN. I know it. event it comes into our market~ When it comes into our market Mr. ALDRICH. It is the most diffienlt problem in tlt1a whole it comes in. to underseU our product. · bill, and if we have satisfied any ooe Senator outside of the com What. ff they can produce ore in certain. zinc mines; in the mittee I shall b:e more or less disappointed. '!'he committee, United States for practically a little more: than it is produced nevertheless, have p.i:esented their repo:rt, and have, done the in Mexico? Is the line of p-rotection oniy to extend to that best they eonld in thi provision:. class of mines? There are ~inc- bt>dieSJ in! the United States Mr. HEYRUfu~. I. welcome- the: statement of the Senato!." where zine can be produced nearfy' as- cheap!y. a.s in those in from Rhode Island that this. is one of the most important itemg Mexico-~ There is very little money invested in them. They in the bill. require very little expense. But we have also in this country, Mr ALDRICH. What I said wars the most difficult~ and: particularly in th& State I represent.. zinc ores that have Mr. HEYBURN. Yes; and important. ro be mined where. before you take out a pound of' zinc, you MF. ALDRI([!H. I will agree that it is impru"tant mlISt: expend: some hrmdEeds o:f th-ousands o! dollars. I speak Mr. HElYBUUN. It is not a trilling item in the eommei:cial of the Success mines., where the depth already,· reached is wol'ld of' this eouniTy. Fo:rr that Fettson,. J took the liberty ot something o er 70() feet, a.nd the;yi propnse 400 mOI"e imme inviting Senators who I am quite sure did not know it was dia tely. It is a mine equipped with a m-0dern. up-to-date plant, under consideration to come in that they might hav-e an oppor fo.i: the. purpose et concentrating· and reducing the- zinc~ at tunity,. at least, of being present. an expense ot some hundreds of thousands ot dolllll' . \V Can Senators wonder that we have a .cause here and that· we Mr. SUTHERLAND. The concentrates will carry 50 or 60 insist on presenting it? Why not protect zinc if you protect per cent? lead? Why not protect lead if you ·protect wheat or cotton or Mr. HEYBURN: Yes. wool or anything? The conditions of zinc mining are exactly Mr. SUTHERLAND, Then, if that is true, is it not equally those of lead mining. These men are compelled to pay the true that it would be exceedingly unprofitable for the Mexican same wages; the machinery is as expensive; the daily cost is producer to ship crude ore containing 10 per cent or under to as great as in any other mining. this country? In other words, is he not in the same position in Deep-sh.aft mining means expensive pumps, heavy -hoisting ma- that respect as we would be, and would it not be necessary for chinery; and it not only means that, but it means transportation; him to coneentrate that character of ore there, which would it means concentrati l\Ir. HEYBURN. I shall have to ask the Senator to defer We do not make comparisons against States here, because the oxide question until he has the floor. I am not speaking of a very wise rule that no Senator shall reflect upon a State for the oxide people; I am not speaking for the spelter people; represented by another, and I do not want, under any circum- ' but I am speaking for the men who own and work mines. stances, to do it. But the increase in the production in the 1\Ir. SMOOT. I was speaking for all the interests of the States of Missouri and Kansas was 9 per cent, in New Jersey United States-every one of them-and that is what we had it was 32 per cent, in Wisconsin it was 174 per cent, in to take into consideration. Arkansas it was 115 per cent, and in Colorado it was 51 per Mr. HEYBURN. If the Senator will permit me, I am not cent But it is a real, live, growing industry in Idaho. It in going to spend very much time on this question, because, inas creased 600 per cent in a year, and it would increase a great much as these other zinc-producing States have made up their many times 600 per cent if you could get interest enough in game, I am only going to make up my record. this subject to treat it just as you treat other metais similarly Mr. KEAN. I' have not made up mine ·yet. situated. That is the proposition. 1\fr. HEYBURN. Yes; the Senator from New Jersey comes I do not know what bas come over the spirit of the dream of in with an entirely new proposition that is as wide as the poles Colorado and Utah in this matter. I am of an inquiring turn apart from that submitted by this amicable arrangement of mind and probably will know. When lead was at issue in between Utah and Colorado. this Chamber they were alive and awake, because that was an l\Ir. President, if Idaho stands alone to-day in a position pe industry the development of which is not shrouded in any doubt culiar to itself under the rule of protection, it is entitled to or uncertainty. consideration. It may make for other States a little too much I would not for a moment charge that any of these interests money. I do not object to the Senator from Colorado [Mr. own mines in 1\fexico or are interested in the zinc business in GUGGENHEIM] or his constituents making a little more than l\fexico; but if it should be that the interests did extend over they would make otherwise, or the Senator from Utah [Mr. the line, then I might understand it. I might understand how, SMOOT]. If they make a little more because it is necessary that with free ore, smelters would be constructed on the Rio Grande they should do so in order that Idaho should make any at all, I River, which is less than 60 miles from the great deposits of will let them have the benefit of it. Why they should stand here raw ore that can be put to the Rio Grande River-mining, and attempt to whittle and hew down a kindred interest in freight, and everything-for $4 a ton, and there reduced to another State I am unable to understand. I might understand spelter that will come into the markets of this counb.·y without it probably if I were to investigate it. any duty whatever. It will be American-produced spelter out of 1\fr. President, I am going, at the proper time, to offer an free Mexican ore. Is not that plain enough to everyone? amel}dment to restore the Dingley rates upon spelter and upon It may be that men or combinations of men do want free ore zinc products, and to amend by retaining the rate proposed in because they own the ore fields and they can bring the ore this bill as reported. I shall offer that amendment at the across the line and save themselves against the spelter duty, proper time. I am sorry that New York and Pennsylvania and but that is not Republican tariff ma.king. Ohio and Illinois and some other States do not produce zinc. l\lr. President, I have reached a period where I do not feel They would probably be more interested in it if they did. I in quite so great a hurry as some of my associates in regard to do not know whether the great State of Rhode Island produces the disposition of this question. It seems to me that this tariff zinc or not. I have not heard the Senator from that State say bill has reached a position something like that described in the whether it did produce zinc, but I infer from the circumstances Pauper's Funeral. Great items and great interests are satisfied, surrounding the consideration of this question that that great and now they are rattling bis bones over the stones to get him Commonwealth does not produce zinc, Mr. President. [Laughter.] out of the way. Mr. KEAN. I did not quite understand the Senator. Did he So far as I am concerned, I have time enough to perform refer to the State of New Jersey? what I conceive to be my duty in this legislation; and I shall Mr. HEYBURN. No; I referred to Colorado and some States take the liberty of occupying it even though they put an ad that are not known to produce zinc, and did not include the valorem duty on speeches. [Laughter.] I am going to give State so ably represented by the Senator :from New Jersey. those who are present here an opportunity to hear and to I am watching this question of the enactment of a tariff law think, and I am going to give those who are not present an under the alias of " revision of the tariff " with a great deal of opportunity to think, and they will come in and vote, I pre interest. I am beginning to realize that the Republican party sume, on this question. organization will have to put out some watchmen and station Mr. President, I propose the amendment which I send to the some guards pretty soon, or the old lines will be lost. This is desk. a question of protecting an interest that is of such vast impor l\fr. NELSON. .Mr. Pr.esident-- tance to a State, where one mine will ship 250,000 tons of ore The VICE-PRESIDENT. Does the Senator from Ida.ho yield product every month in the year, and when, simply because some to the Senator from Minnesota? other States represented upon this floor by the members of the Mr. NELSON. Will the Senator allow me to suggest the Finance Committee do not happen to produce that particular absence of a quorum? article, but do produce others. I think that the old Republican Mr. HEYBURN. If it would-- doctrine of protection, that should spread like a mantle over Mr. NELSON. If it is not disagreeable to the Senator- all the interests of the country, needs guards. Mr. HEYBURN. Not at all. I should rather see Senators l\fr. KEAN. l\fr. President-- here. , The VICE-PRESIDENT. Does the Senator from Idaho yield Mr. NELSON. I suggest the absence of a quorum, Mr. Presi to the Senator from New Jersey? dent. Mr. HEYBURN. I do. The VICE-PRESIDENT. The absence of a quorum beillg Mr. KEAN. Would it interrupt the Senator if I asked him suggested, the Secretary will call the roll. what the production of zinc ore was in Idaho? The SECRETARY called the roll, and the following Senators Mr. HEYBURN. I call the Senator's attention-and I am answered to their names : only speaking now for one camp-to the fact that the Success Aldrich Clay Guggenheim Paynter Pet· kins mine, with the ore blocked out, the mill erected, and concen- ~!f1~~ g~birson ~!;turn Piles ttators erected, has concentrated a very large quantity of ore Bankhead Cullom Hughes Rayner and can ship 2,000 tons of concentrates per month. That i~ Borah Cummins Johnson, N. Dak. Root Scott 24,000 tons of concenh·ates that that one mill can ship in a ~~:f~egee g~~1~ ~~~~;ton, Ala. Simmons year. There are a dozen others that can be put into the same Brown Davis Kean Smith, Md. position before the snow flies if the Republican party, true to Bulkeley Dick La Follette Smoot Sutherland its history and its principles, will protect that interest. ~~~~~~m B~N1~~~am ~~~tl~rin Taliaferro Mr. KEAN. l\fr. President, I only had before me what I sup- Burrows du Pont Nelson Tillman Warner _posed to be the production of zinc ore, and I find that Idaho in ~~~f~~ ~l~~~ger ~f:Oi:nds Wetmore 1904 produced none. Chamberlain Flint Oliver .Mr. HEYBURN. No. Clapp Gamble Overman ~fr. KEAN. In 1905 it produced 1,700 tons; in 1906, 2,150 Clark. Wyo. Gore Page tons; and in 1907 it produced 11,847 tons. The VICE-PRESIDENT. Sixty-five Senators have answered Ur. HEYBURN. The increase in Idaho, according to this to the roll call. A quorum of the Senate is present. 'rlle same official table, was 600 per cent last year. amendment proposed by the Senator from Idaho will be stated. Mr: KEAN. What is the last year for which the Senator The SECRETARY. On page 66, paragraph 190, lines 14 and 15, has the figures-1908? strike out down to and including the word "therein," in line Mr. HEYBURN. I have not the figures for 1908. I know 115, and. insert: what they ar~. They do not represent an increase of less than Zinc contents contained in zinc-bearing ores of all kinds, 1 cent per 600 per cent m that year. pound. 1909. CONGRESSIONAL RECORD-SENATE. 3351 1\Ir. HEYBURN. Mr. -President, that is the language con .And that a Republican should stand up here and attempt tained in the lead schedule, and there is no reason why it is not either to apologize for it oi: to denounce it puts me upon inquiry appropriate in the zinc schedule. If it is not appropriate in as to the conditon of his mind when he said to the constituents one, it is not appropriate in. the other. We are competing who elected him to participate in the proceedings of Congress against the wage scale of 1\Iexico as much in zinc as we are in that the Republican party was entitled to their suffrage and that lead. We are competing against exactly the same conditions, he represented the principles Of it, and that he would s4'lnd for and we are not asking as much by this amend.men~ on zinc as them. If there is a man in this House or in the other who was asked on lead, although we would be entirely justified in apologizes for the Republican party, he is not worthy to wear doing so. I will undertake to say that had there been any the honors that the people gave him. I am tired of these half necessity of doing so at the time that the Dingley law was en stated and often insinuated apologies for the wisdom of tt~ ·acted, the same duty would have been put upon the zinc con party. tents of the ore as was put upon the lead contents of the ore, Mr. President, if you do not deal fairly with all the people of because they were then dealing with a ·clear field ; they were the country, you will only make the task the harder for those of making a Republican ta.riff, and not revising one. us who participate in the political campaigns that result in I notice that there is not that outspoken patriotic spirit of Republican supremacy. If you think you can throw this State Republicanism displayed in revising this tariff that there was down and this interest down, remember you have to pay for it in making the existing law. They had then, right close in in some States in votes. I do not think you will have to pay their memories, the experience of four years of Democratic for it in v-otes in Idaho, because the protective-tariff system is tariff. It had been a lesson to them in every State in the Union, their law and their gospel, and no man can ever go into tp.at especially in the _mining States; and when they were looking Stnte an.d make those people belie"°e that it will not ultimately for the right thing to do they were not embarrassed by exist prevail. You mnv shake their confidence by slurring over this ing conditions. They were rather aided by the comparison be zinc schedule, and we may have to explain your action and tween poverty and prosperity in those sections. That is what apologize fo1· it, bnt they will still vote the Republican ticket, I am standing for to-day. .A new condition has arisen demand having faith that the time will come when there will be a Re ing the same class of relief and assistance as existed at the pnblican p::i.rty in Congress which wil~ know Republicanism and time of-the making of the Dingley law. how to apply it. Mr. President, does anybody suppose that there would have You wunt the lumber of Washington protected. Where would been a Republican vote against this amendment had it been you sell it if you bankrupt a whole community? You would offered at the time of the making of the Dingley bill? No one sell it to some other. Where, if you bankrupt the other? The would have been able to give a reason for it a..t all. Why do prosperity of one community depends upon that of another. Senators oppose it? Do you want wages paid to the foreign ·we are your market; you are our market, living only across the miner and leave our own zinc ore in the ground? What for? line. On the ground of the conservation of the natural resources of Mr. President, I do not know that I can say much on this oc the country? I can think of no other ground. Of course it casion that will infiuence the minds of those who are to deter would stay there all right. It would not rot like timber ; it mine it, but I have never belieYed in shirking a responsibility would not burn up like forests; and there is no Senator here or a duty because some one else was apt to forget his. I never on either side who would for a moment, after due consideration did take my moral code from somebody else, and I do not pro of this question, say that anyone would be benefited by leaving po e to take my political code from somebody el e. This is the this ore in the ground and going down into .American pockets center of responsibility for legislation, right here upon this floor. and taking the price of your corn or your wheat to buy foreign Our jud.gment must control, and not that of any other. I am zinc that represented foreign wages and foreign investments. not going to Yote for any alternative provision, with a view of Mr. NELSON. Mr. President, will the Senator yield to me supplying money to pay the expenses of this Government, until for a moment? we hav-e exhausted the constitutional method of providing that The VICE-PRESIDE~T. Does the Senator from Idaho yield money through the custom-houses of the country and the inter to the Senator from )!innesota? nal-re\enue resources. If, after we have enacted a revenue Mr. HEYBURN. Certainly. bill and it has been in operation for the period between now Mr. NELSON. I ham looked ov-er this book of Tariff Notes, and the next session of Congress, it should be pro-ved by experi and I do not find Idaho listed among the States producing ziilc ence that we did not ha-ve re-venue enough, I would then be will ore. Therefore I am very much surprised at the statement of in.,. to take up any legitimate proposition for the purpose of the Senator from Idaho about the quantity of ore produced m~eting the deficit. But until that is demonstrated-demon there. What I should like to know is, what is the grade of strated, not claimed or asserted, but demonstrated-I shall not that ore? Is it a low-grade ore, spelter ore, or oxide ore? support any of these measures that are recommended. If I had Mr. HEYBURN. I will tell the Senator. First, there are no other reason than that of sustaining the judgment of those two kinds of States-there are States that have a history and who are responsible for this bill as it was presented to us, I States that have a future. [Laughter.] Some have both. -I would sustain them. I have supported them, not always with was reading from the official report of the production, and, perfect accord, but I have supported them because that support leaTing out the Joplin district, Idaho stands on .the Government's was a part of a systematic method of enacting a sufficient statute report as . the third largest zinc-producing State in the Union. to meet the requirements of the Government. I realize that The Senator may not find it in the "Book of Estimates." I looked legislation, as everything else in life, must be a matter of yield for some things there when that came here as the concentrated ing some here and some there by either party. Otherwise it wisdom of the distinguished body at the other end of the Cap would mean that men were all of one mind, which they are not, itol. I did not find some things which I should have been very and neyer will be, and should never be. Out of the differences of glad to have found there, and I found some things I regretted minds we gather that average wisdom which is best. to find there. But we are here to act upon our wisdom, not :Mr. President, I am content to leave the zinc schedule, with the wisdom of the House. I will not say that I do not care for the amendments which I have offered and two other amend their opinion, for I care for the opinion of eYery man who has ments that I will now offer, for the consideration of the Senate, given any consideration to a question; but I am not bound by it. unless something should occur to prompt me to say something I heard it stated here early in the consideration of this tariff more. bill that the presumption was in favor of the House bill. With The VICE-PRESIDENT. The Secretary will state the amend- all due consideration to the House and its prerogatives, I deny ment submitted by the Senator from Idaho. it. The presumption is in favor of the wisdom of the existing The SECRETARY. On page 66, lines 14 and 15, strike out down law. You can not get away from that proposition. Every pre to and including the word " therein " in line 15 and insert "zine sumption here is in favor of the sufficiency and the ap!} 3352 CONGR.ESSION AL RECORD-SENATE. JUNE 16~ . .. The Secretary called the roll, and the following Senators an The VICE-PRESIDENT. As a substitute for the paragraph. swered to their names : Mr. ALDRICH. Offered by me for the committee. Aldt·lch Crane Gamble · Perkins l\fr. KEAN. So I understand. · Bacon Crawford Guggenheim Piles Mr. President, I shall be brief. Zinc ore has never been on Bankhead Culberson Heyburn Rayner the dutiable list in any tariff of the United States save in the Borah Cummins Hughes Root Brandegee Curtis .Johnson, N. Dak. Scott tariff acts of 1846 and 1857. It has, always been free, and this Briggs Daniel .Johnston, Ala. Simmons departure, taking it from the free list to the dutiable list, to Bristow Du.vis .Tones Smith, Md. my mind is an extraordinary proceeding. I do not think it can Brov.-n Dick Kean Smoot Bulkeley Dillingham La Follette Stone be justified on any showing of facts or that any reason can be Burkett Dixon Lodge Sutherland advanced for it, either in the interest of the producer of ore or Burnham Dolliver McEnery Taliaferro in the use of the manufactured article. I believe the situation Burton NI kins McLaul'in Taylor Cartet· Fletcher Martin 'Varner of the mines is such, with the freight rates against foreign ores, Chamberlain Flint Nelson Warren that a duty on the ore is unneces ary. I suppose the commit Clapp Foster Overman Wetmore tee's amendment is a little better than the bill as it came from Clark, Wyo. l!"'rye Page Clay Gallinger Paynter the House. But I do not see that it is very much better. Zinc-bearing ore of all kinds, including calamine, containing less than The VICE-PRESIDENT. Sixty-six Senators have answered 10 per: cent of zinc, shall be admitted free of duty. to the roll cal1. A quorum of the Senate is present. To my mind zinc ore, and so forth, containing less than 10 l\Ir. STONE. I desire to ask the Senator from Idaho just per cent of zinc, is nothing but dirt. But there are admitted what would be the difference in the effect between his amend into the United States some foreign ores that are smelted-of ment now pending and the provision in the House bill fixing the silver, gold, and copper-that have some 10 per cent of zinc in duty 011 zinc contents at 1 cent per pound? them. This exempts that class of ores, but I must say also l\Ir. HEYBURN. The provisio11 in the House bill fails to in that I think it is impossible for the smelter of that ore to save clude all classes of ores. The language is not so full and com that 10 per cent of zinc, because it goes up in the furnace; it is prehensiye as to fuDy pTOtect against all zinc co11tents in zinc lost. The next provision is: ores. The la:o.guage was correctly stated in the lead schedule. It is merely made more comprehensive, so that there may be no on;.~~~;~~i~~ ioc~i~T. cent or more of zinc and less than 25 per cent- opportunity for an adverse ruling on the question whether all zinc contents, in whatever form, are subject to a duty. Fully That is ore which does not exist and is not used. It is not one-half are calamine. It is divided about evenly into two commercial in any way. It is not transported. Containing 10 pet· cent or more of zinc and less than 20 per cent, classe of ore. one-half of 1 cent per pound on the zinc contained therein. Mr. STONE. Yes. I wish to inquire if the House provision should be agreed to and if the amendment proposed by the That duty would be absolutely prohibitory. No one could Finance Committee is yoted down, what contents of what zinc bring it in. And so on, up to 1 cent per pound for zinc, which ores would escape that tax? is practically a duty of $12 a ton on 60 per cent ore, which is l\Ir. HEYBURN. Is the Senator now referring to t±e provi ordinarily known as the ore of commerce from the Joplin dis sion suggested by the committee or to the House bill as it came trict of Mi ssouri. over? Mr. BURKETT. Let me ask the Senator a question. As the Mr. STONE. The House bill is the bill before the Senate. House passed the bill, it put all this ore at 1 cent a pound? l\Ir. HEYBURN. But the committee has submitted a substi Mr. KEAN. It did. So far as the commercial a:spect is con tute- cerned, it is generally rated at 60 per cent ore. That would be Mr. STONE. Yes. $12 a ton. l\Ir. HEYBURN (continuing). Which classifies the ore on the l\Ir. BURKE'rT. As I understood the Senator to state, · the 10, 20, 25, and 40 per cent basis. amendment which the committee have now suggested puts the l\fr. STONE. I understand that. If that is disagreed to, then highest grade, 25 per cent or aboYe, at 1 cent a pound, and that the House provision would stand. which is less than that at samething less than that rate. Mr. HEYBURN. Then the House bill should be amended as Mr. KEAN. On the highest-grade ore, after' it gets to 25 suggested by the amendment I have introduced, which is only per cent, the rate is 1 cent per pound. That is really the only in the interest of making the duty certain and making it cover commercial ore. From 25 per cent up to 60 per cent is the all cla ses of contents. only commercial ore. I know that the Senator from Colorado l\fr. STONE. The point I had in mind was that the amend will say there are other ores, and so on, but they are not ment proposed by the Senator from Idaho would leave the mat transported. ter substantially where it is under the House bill. Mr. GUGGENHEIM. Mr. President--- - :Mr. HEYBURN. No. The House bill is not sufficiently ex Mr. BURKETT. Let me ask one more question in continua i·.>ressive to include the two principal classes of zinc ore which, tion. As a matter of practical purpose, while this appears to 'lo far as the zinc producer is concerned, stand upon the sama be a reduction it is practically the same as the bill as sent over basis, so far as the need of protection goes. Zinc ore is of a from the House, if I understand what the Senator from New peculiar ·character. There is one class of zinc ore that has Jersey states. always been so classified, and the other has not been included Mr. KEAN. I think it is, almost. in that classification. The Senator will find it is necessary, be Mr. BURKETT. · If there are no imports below 25 per cent, cause of the classification of the ores. if the importation of such grades is impracticable on accollilt of Tlrn VICE-PRESIDENT. The question is on agreeing to the business reasons, either because it is not transported or other amendment propo ed by the Senator from Idaho. wise, then the rates are not reduced. :Mr. KEAN. Would the Senator like to have a Yote on the l\Ir. KEAN. I think the Mexican ores run from 28 to 35 per amendment? cent. Mr. HEYBURN. I expect it will be voted on at the proper l\Ir. BURKETT. That would take the cent rate. time. I did not offer the amendment to lay it on the table. l\fr. WARNER. I think the plea of the New Jersey people Whenever, in the orderly procedure of the disposition of this themselves before the Finance Committee was that they wanted matter, the amendment comes to be voted on, I desire a vote. these low-grade ores in order to make zinc oxides. I think I The VICE-PRESIDENT. A vote is in order now unless some am right. Not that the zinc smelters wanted the graded scale. Senator wants to debate it. The question is on agreeing to the for they protested against it. But the committee thought it amendment of the Senator from Idaho. to be an act of justice to all. The amendment was rejected. Mr. KEAl~.. Does the Senator from Missouri contend that The VICE-PRESIDENT. The other two amendments pro ore containing less than 20 per cent is commercial ore? posed by the Senator from Idaho seem to be to the following l\Ir. WARNER. I do, from the outside. It is only a ques paragraphs and not to this paragraph. tion of getting it cheaply; and with the freight aside, I not l\fr. HEYBURN. I see. only so contend, but the record will show, tbnt these ores can The VICE-PRESIDENT. The question is on agreeing to the be obtained from mines in old Mexico for GO ceuts a. ton; and parn(J'raph as amended. if you get it free on board of the cars at $2-the cheap ore- Mr. KEAN. This is-- the freight from the shipping point to the mines in Missouri The VICE-PRESIDENT. Par ~ graph 190, the substitute of is $6.50. the committee. Mr. GUGGENHEIM. To remove an erroneous impression, :Mr. KEAN. I understand the amendment before the Senate I ~ish to say_that th~ zinc ores of Missouri, known as "Joplin ls the amendment offered by the Senator from Rhode Island. ores," and concentrated, contain about 1,200 pounds of metallic :rtfr. ALDilICH. The substitute. zinc. At 1 cent per pound, the duty would be about $12 per ton. . . 1909. CONGRESSIONAL RECORD-SENATE. 3353 But the zinc ores from Mexico contain on an average 600 pounds the tariff duty on zinc oxide and the.other products of zinc and of zinc. Therefore the duty under this bill would be $6 a ton. pig zinc is to stand as parts of the protective tariff, the Tery Mr. KEAN. Not at all. . small duty now carried by the Senate comruittee amendment While th·e Senator from Ohio was speaking to-day the Sen certainly ought to go through in the ~arue S<'hedule. ator from Colorado called attention to the production of -spelter Mr. KEAN. The Senator interrupted me for a question to in the United States. He stated that there were 24,885 tons make his little speech, which I am glall to have interjected into of spelter made in Colorado. my few disconnected remarks. · _ - · Mr. GUGGENHEIM. How many? Mr. President, I am opposed to thi;.; amendment because, in the Mr. KEAN. Twenty-four thousand eight hundred and eighty first place, it puts zinc ore on the tlutiable list and imposes a five tons. According to the statement which he read, and which prohibitory duty on it. In the second place, I think: the impo I ha-ve here, he did not read the top of the page where it says sition of the duty is intended to protect the miners of tlle " apportioned according to source of ore." That means there Joplin district and of the district in Idaho, and I do not believe were 24,885 tons of spelter made in the United States out of they will ever get any benefit therefrom. · ores that came from Colorado. ' Mr. HEYBURN. Mr. President, that is a most astounding Mr. GUGGENHEIM. I was connected at one time with a statement. The Senator from New Jersey says it must be ad zinc plant in Colorado that did produce and is producing now mitted that the purpose of this amendment is to protect the about 15,000 tons of spelter from Colorado ores. It is im zinc miners in Missouri and in Idaho, and he does not think they material whether this ore was smelted in Colorado or not. ought to be protected. Some of the ore does go to Illinois, Wisconsin, and Kansas. My 1\fr. KEAN. I did not say that. I think that they will not statement about it having been produced in Colorado has nothing receive the benefit of it. to do with this case, because it is really the amount of ore pro Mr. HEYBURN. That is a subsequent statement. The Sena duced in the State of Colorado. tor says he does not think the miners in Idaho and in Missouri Mr. K~AN. Then also in this table I find ~' apportioned ac would receive the benefit. Who would? cording to locality in which smelted." In the Eastern, South~rn. Mr. KEAN. Does the Senator want to know who I think and Western States there were smelted 35,817 tons; in Illinois, would receive it? I think the foreign smelters would receive it. 50,244 tons ; in Kansas, 99,298 tons ; in Missouri, 10,201 tons ; Mr. HEYBURN. I think probably certain zinc institutions in in Oklahoma, 14,864 tons; making a total of 210,424 tons. New Jersey would receive the benefit of it. · Mr. GUGGENHEIM. Spelter? Mr. WARNER. Mr. Presid-ent-- Mr. KEAN. The ore smelted aggregated 210,424 tons. I fail The PRESIDING OFFICER (Mr. CARTER in "the chair). to see th-at Colorado had any at all. Will the Senator from New Jersey yield to the Senator from Mr. HUGHES. I should like to inquire of the Senator from .Missouri? New Jersey if he means to claim that they do not? Mr. KEAN. Certainly. Mr. KEAN. Ob, no; nothing of the kind. Mr. WARNER. The Senator says that the miners of Mis Mr. HUGHES. Those of us who live there- souri would not get the benefit of this duty? Mr. KEAN. I know there is. Mr. KEAN. I said, in my opinion, they would not. .Mr. HUGHES. Know that the amount stated by the Senator Mr. WARNER. I do not know what information the Sena from Colorado is under the quantity rather than over it. tor has as to the class of men who constitute the miners of the Mr. KEAN. I only took the figures from the report of the Joplin district in Missouri. There are 11,000 men there as in Geological Survey. telligent and b-right as any class of business men you could find Mr. GUGGENHEIM. Mr. President-- in the State of New Jersey. 1\Ir. HUGHES. Was it for the purpose of giving informa- Mr. KEAN. Mr. President, I have no object in the world in tion or misinformation? · reflecting upon citizens of Missouri. Mr. GUGGENHEIM. I suggest that the Senator from New Mr. WARNER. You could not. Jersey ask the Senators from Colorado for the facts. Mr. KEAN. I would not want to. I think they are very Mr. DIXON. I ·merely want to ask my friend, the Senator hard working; they have built up a wonderful industry in from New Jersey-- Joplin. The zinc industry is a ·very marvelous production, The VICE-PRESIDENT. Does the Senator from New Jersey and they have worked very hard to build it up. I think the yield to the Senator from Montana? freight rate on the 1\Iexican ore is a sufficient protection for alJ. Mr. KEAN. Certainly. I will try to answer the question. The freight rate on ·Mexican ore is about 60 per cent of the Mr. DIXON. I wish to ask a question or two before he value of the ore, and therefore it is nearly within 25 per. cent closes his argument. I have been very much interested in the of the selling price of the manufactured product. mental attitude of the Senator from New Jersey and am a Then, again, there is not sufficient zinc ore produced in this little bit surprised to see a new recruit to the tariff-revision country to supply the demand, and some has to be imported. downward element of the Senate. Of course, after the Senator from Idaho gets that wonderful Mr. KEAN. I do not belong to the element the Senator production of his State, producing 1,700 per cent more, perhaps thinks I do. · they will be able to supply the home demand. Mr. DIXON. I notice that paragraph 53 of the bill reads: l\Ir. HEYBURN. The increase of 600 per cent is present Zinc, oxide of, and white pigment containing zinc, but not contain history; the 1,700 per cent is assured future. We have ah"eady ing lead, dry, 1 cent per pound; ground in oil, li cents per pound; sulfid of zinc white, or white sulphide of zinc, H cents per pound; produced 11,000 tons. That is not a guess. . chloride of zinc and sulphate of zinc, 1 cent per pound. 1\fr. KEAN. I knew the past was secure, but I did not know the future was. . I should like to inquire of the Senator from New Jersey Then again, zinc ore is the only article in the tariff bill, I whether, in his opinion, the duties fixed on oxide and the manu think, which has been taken out of the free list and at the same factures of zinc are too high? time has had really a prohibitive duty placed upon it. The Mr. KEAN. As I understand it, if a duty is put on zinc ore reason why I say it is a prohibitive duty is because one of the another amendment will be reported changing those rates. l\fr. DIXON. No; but the . Senator does not think that the chief· witnesses in advocating a duty on zinc ore before the duty fixed on oxide of zinc•is at all too high? Committee on Ways and Means was a gentleman from Joplin, A. 0. 1\fr. KEAN. I am not discussing the question of oxide of Mo., named Ihlseng. He seems to be an active gentleman, zinc at present. desiring to purchase ore. He seems to have come down here to Mr. WARNER. Those articles are of common use. Washington and to have made himself rather secure in his Mr. KEAN. Of very common use; we are aware of that. position, because he returned to. Joplin,_ Mo., and he writes his But they have to be made from zinc ore. If you are going to friend down in Chihuahua, Mexico, statmg what he proposes to put all the price on the zinc ore, how are you going to get the do. He says: other things out of it? JOPLIN, Mo., May 21, 1909. Mr. DIXON. I real1y have been somewhat impressed with DEAR Sm : Some time since I had a communication from you with reference to zinc carbonates. . - · · · the nn.iversal line of fairness and consistency that I think the 'l'he tariff situation is such that it will be necessary to ship all these Finance Committee has pursued in the preparation of the bill. ores to Europe, and I should be pleased to hear from you as to what I think all along the line the general plan has been to give all tonnage you can furnish on a long.time contract, sending me a · genernl things that we produce in this country a fair clegree of protec sample of yom· ore and an analysis. . tion where it has been demonstrated that a difference in cost Yours, very truly, A. 0. IHLSENG. exists between here and abroad. I think that i:;; the only theory The letter is signed by the gentleman who was so desirous of on which the Senate can ever pass a protective-tariff bill. I having a duty put upon Mexican ores in order, to all appear can not conceive of the argument thut where an indnstry is ances, that he might buy up Mexican ores and take them to Eu protected in its manufactured products it must not ccnsistently rope, thereby enhancing the price not only of our ores, but of carry a relative duty on the raw products of that industry. If the l\1exican ores. , . I CONGRESSIONAL RECORD-SENATE. 'JUNE 16, . t . These facts, I think, are all I desire to state, ex.cevt to off er The striking discrepancy between the enormous increase fn .Toplin ore I prlces and the slight increase in the spelter prices shows that the smelt the amendment which send to the desk. ers have ginn to the miners almost all the increase in profit due to· The PRESIDING OFFICER. The amendment offered by the improvements in smelting and increased demand for the metal. Tbis Senator from New Jersey will be read by the Secretary. condlti-On has been unavoidable 011 account of the fierce competition for SECRETARY. the ore and the shortage in the ore supply. 'l'he On pages 66 and 67 strike out paragraph 190 In addition to the figures given above, which tell their own story, it and in ert in lieu thereof a new paragraph, as follows : has been n-0torlou-s in the trade that from a period long before the 190. Zinc ore and calamine containing not over 30 per cent ~inc, · 50 imported ores of Mexico and British Columbia we1~e a subject of much cents per ton ; containing more than 30 per cent zinc and not oyer 40 interest the Joplin district was failing to meet the increasing demands per cent zinc, $1 per ton; containing more than 40 per cent zinc and upon its mines. We have not attempted to collect all the evidence on not 01er 50 per cent zinc, $2 per ton; containing more than 50 per cent this subject, but we have collected a number of items from the Engi zinc and not oYer 55 per cent zinc, $3 per ton ; containing more than 55 neering and Mining Journal, an impartial and recognized authority~ per cent zinc, $4 per ton. showing the conditions of the Joplin ore supply in the years 1904, U>05, Mr. SMOOT. Is the Senator from New Jersey through? and 1906. These items follow : · . Mr. KEAN. Except that I have here a statement that I EXTRACTS Ji'ROM ENGINEERING AND MINING JOURNAL OF VARIOUS DATES. January "I, 1904-Page 15.-Zinc in 1903, by W. R. Ingalls. "The de should like to have published in the RECORD. cline in production in the Joplin district was due partly to the very The PRESIDING OFFICER. In the absence of objection, it wet weather in the spring which inte1'fered With operations to some is so ordered. extent, but the chief cause is obviously the inability of the mines of the district to do any more than they have been doing. It appears that the The statement referred to is as follows: productive capacity of the Joplin district has attained its maximum, ZINC ORE UNDER THE PAYNE TARIFF BILL. even if it be not already on the wane." The production of zinc ore 1n the United States in the yea.rs l904 to August 4_, 1904-Pa.ge 1105.~Missourl ore market (special correspond 1907 appears from the following table, taken from Mineral Industry ent). * • • "Elven then, with the new smelters in the field for the for 1907 (Vol. XVI), at page 904: product of the 1\Ii.ssouri mines the output will barely meet the urgent dema.nds of the -capacity of all the works drawing a supply from this district." State. 1904. 1905. 1906. 1907., September 8, 190.t,--Page m.-Missouri ore market (special correspond ent). • • • "As has been pre-v1ously outlined in the Journal, the output is insufficient to meet the demand of the increased smelting capacity drawing a supply from th.ls district, and in conseqtlence the ore Tons. Tons. Tons. Tons. price has been about :i;4 per ton higher than the metal market for two Arkansas------0 1.900 2,200 4,200 4,088 142 510 months." . fdo~~~~~~-:_:-:_-:_:-_"'_::----~---_:::·_::::::::-_:::-_~ &94,000 lO~:m Sevtember !9, 190.lr--Page 5S4.-Missour1 ore market. • • • " Tb~ ng: 11:-841 effort to supply the demand of approximately 6,000 tons Der week, with Kentucky------·-----·----- cgss cru 975 1,005 an output of approximately 5,000 tons, has resulted in cleaning up all 2917,126 the reserve ore in the district and forced buyers to contract largely d27J,238 1,218 w:~~:~~~~~====---======·~:~ "~:~ 4,693 ahead of the output." Nevada------7,080 October 6, 1904-Page New MexicO------e21,000 17,800 30,000 4,281 5"13.-Mi ouri ore market (special correspond New JerseY------0 280,0'29 <:Sfil,829 404,690 368, 710 ent). • • • . "There are just two things there is no apparent ques -Oklahoma.------·------· 3,240 tion about in the ore situation-the scarcity of zinc ore and the need -9,043 of zinc ore." Utah..------·-----·------·-·--~-~-- 9,265 10,700 Novembe1· 24, 1901,.-Page 854.-Missou:ri ore market (special correspond Wisconsin------·------·- "19,300 32,600 42,180 53,011 ent). • • • "The capacity of the smelters drawing ore from the Others------&2,600 13,SOO ~850 t12_241. Joplin district.is greater than the mines are outputting, a fact that was pointed out in this column last July." . TOtal.-u·-~-----~-··-----u~•-••-· '93,025 795,698 005;175 902,923 January 5, 1905~Page 14.~Zinc, by W. R. Ingalls. • • • "The direct cause of this has been of course the insufficiency of the Joplin a According to H. F. Bain," Contributions to Economic Geology," 1904. ore supply to meet the present demand for spelter for consumption." b Estimated. Mm·ch 16! 1905-Page 548.-Missouri ore market. • • * "It was 0 Report of state geologist; crude ore. noted in this column last year that it was apparently a physical impos a Production of Joplin district plus output of southeastern Missouri, sibility· for this district to supply all the zinc ore needed to manutac the latter as reported by the state mine inspector. ture all spelter demanded · by American consumers. Consequently, as e Partly estimated. this district does not keep pace with the increasing output of spelter, it t Arizona, Nevada, Illinois, Iowa, Tennessee, and Virginia. becomes necessary each year to procure a larger proportion from some 11 Virginia, A.ri.zona, and California. other source." June 29, 1905-Page 1269.-Missouri ore market. • • • "So far The above ores are of two kindS, viz, blende, which ls the ore ('()D the imported ore is of a grade that does- not compare with the poorest ta.ining sulphide of zinc., and calamine, which includes the ore contain ore of this district, and it is handled only because the output of this ing carbonates and silicates of zinc. Calamine has been on the free district is insufficient to meet the requirements of the smelter capacity list in all the tarltr acts since 1792, except in the tariff acts of 1846 of the United States." and 1857. Originally, and until comparatively recent years, the term Jantuwy 6, 1906--Page 12.-Zlnc. By W. R. Ingalls. • • • "It calamine has included all the ores of zinc that were commercially valu appears to be recognized that this district is now affording as large an able. It is only within the past thirty-fivEl years that the blende ores output of ore as can reasonably be expected from it, and further sup that is, the ores containing sulphide of zinc~have been considered com plies must be looked for in other quarters.'·' mercially valuable. Blende ores have been admitted free of duty under Febrnary s, 1906-Page 234.-The Joplin district {editorial). .• • • section 614 of the Dingley Act as crude minerals not otherwise provided " It is to be feared that there will be a further falling otr in the output for. It bas, therefore, been the apparent policy of the Government of zinc ore this year, even if the price continues high, for the reason from the earliest time to admit zinc ores free of duty ; and experience that the new openings of ore are not compensating for the exhaustion has shown tha"t this policy of the Government is sound. It has never of the older mines." appeared to be in any way a menace to domestic enterprises, and there is Nearly all of the New Jersey zinc ore and some of the ore from no ground for alarm on this score in the future. other States goes into the manufacture of oxide of zinc. I. We may conclude this point by repeating that it is and for years has been notorious in the trade that the United States can not produce THE l>RODUCTlON OF ZINC ORE FROM THE JOPLIN DISTRICT, WHICH IS enough zinc ore to keep the smelters supplied under normal business THE CHIEF DOMESTIC SOURCE 011' SUPPLY OF ORE FOR METALLIC ZINC, conditions, and this situation is pretty clearly demonstrated under the HAS FALLEN FAR SHOBT OF THE DEMAND. next heading. The rapid development of domestic manufactures in which zinc is II. used has made the question of ore supply important. The following ENOUGH ORE IS NOT PRODUCED IN THE UNITED STATES TO KEEP THE table shows that the production of domestic spelter, 1. e:J metallic zinc SMELTERS StJPPLIED WHEN RU ' NI"NG AT FULL TIME, bas in~reased much more rapidly than the production or zinc ore from According to Volume XVI of Mineral Industry, page 899, the spelter the Joplin district. in spite o:f the fact that the price of such ore has . retorts in the United States number 89,560. The average consumption increased much more than the price of spelter. The figures are com of ore is 40 pounds per diem for each retort. The capacity of the piled from "Mineral Industry" for 1907. retorts in a year of three hundred and sixty days is 644,760 tons of ore. Before used in the retort all blende ore ha.s to be roasted and in that Zinc ore pro- process loses a percentage of weight, so th.at to keep the smelters in ducoo in.Jop- Aver·age Spetter Average operation it would require not less. thaon 758,000 tons of blende per annum. The largest production of domestic ore was in 1906, when Year. Un district price of ore ~r~~:a s~~f~ro~t 905 175 tons were produced. or this production, after deducting only (actual at Joplin. States. New York. such portion of the New ·Jersey ores used chiefly for the manufacture shipments). of oxide of zinc and not· available for spelter, and assuming what is beyond the fact, that every pound of other ore went to the smelters, there remain but 553,960 tons available for the smelters. This. shows 1900. ------248,446 26.50 123,321 4.39 a balance o.f 204,040 tons of ore available for spelter to be produced 1901. ------. 258,306 24.21 140,822 4.117 from some source outside ot the nited States if all the smelters are in 19(1.L::.-----~---~·--~------262,545 30.73 158,239 4.84 operation. The following table gives the foregoing facts in condensed l.903------·----- ~------· 234,873 34.44 158,50-2 5.40 form: 19()!_ __ ------· 267,240 37.40 181,800 5.10 252,435 47.40 201, 748 Total spelter retorts in United States in 1907------89,560 1905------· --~------5~88 Average charge roasted ore per retorL _____ pounds per diem __ 40 1906--Ul07 ______------• ------._ 278,000 44.82 225,494 6.19 Capacity of spelter retorts per year, roasted ore ______tons __ 286,589 44.36 644,760 249~.fil.2 5.00 Equivalent tO------tons blende unroasted __ 758,000 Total spelter ores produced in United States in 1906 (which was the year of largest production) _.______tons __ 553, 960 ·Jt must be bame in mind that about 2 tons of. Joplin ore are required to maim 1 ton of spelter. Ore required iis above------·------do ____ 75 , 000 This table shows that while spelter producti-on in the United States Ore available as above ______do ____ 553, 960 has increased 102.4 per cent in the past eight years, with an inc'rease in price of 35,8 per cent, Joplin ore has. increased :in production by 'Only 15.4 pei· cent, although its price has inc1•eased 67.4 per cent. Ore which mu-st be secured outside United States __ do ____ 204, 040 In 1007 the highest pt"ice paid for Joplin ores was $53.50~ and in It mu t be borne in mind that the weste1·n manufacturers of oxide of 1908, $47. zinc have also to be .supplied. They purchase!l· in 1907 93,000 tons of 1909. CONGRESSIONAL RECORD-SENATE.- 3355 zinc ore, which reduced, by that amount, the ore available for spelter Twenty-one dollars and sixty-eight cents less $21 leaves 68 cents as manufacture. It should also not be overlooked that it is only the the cost of producing 1 ton of Mexican ore, which is impossible, and Joplin oi·es which can produce spelter at the rate of 1 ton for each 2 shows that Joplin needs no protection. tons of ore. The ores from Wisconsin, Colorado, and all other dis Or, taking the cost of producing a ton of Mexican ore at $4 (which is tricts are much leaner and must be used in much larger quantities to the figure put forward by the Joplin interests), the cost of spelter made get the same yield o.f metal that the Joplin blende wi11 produce. from it would be: It has been objected by Joplin interests that all the smelters have 0 not been in operation at one time and that they are producing spelter ~~~i~~!nfo ~!ilroaa======$!: 88 in unnecesc:;arily large quantities. The answer is that in eight years Freight to smelter------'------6. 50 the consumption of spelter has doubled and that if the ore is obtainable Smelting ______:______10. 50 there is no reason to doubt that the use of spelter will continue to in crease in volume and in the same proportion. It is absurd to say that Total------25.00 the smelter will knowingly make more spelter than the market will stand. It is equally absurd to say that there would be enough domestic make 595 pounds at a cost of 4.20 cents per pound, or higher than the ore if the smelters made less metal. Within the past eight years there cost of spelter made from Joplin ore when all profits are deducted. has been no year in which the domestic consumption of spelter fell EXAMPLE B. appreciably short of the domestic production of spelter, except in the Again, take actual market prices of a few days ago and compare the. year 1903, when great depression in the metal and all other industries costs of Joplin and Mexican ores : caused the exportation of about 10,000 tons of spelter early in 1904. An accumulation of spelter again occurred with the advent of the panic Joplin. of 1907. On September 1 of that yeai· there was no stock of spelter. 1 ton 60 per cent ore, delivered------$39. 75 During the four following months practically 40,000 tons accumulated, Smelting cost, 1 ton------10. 50 but no reasonable person can dispute that the trade conditions at that time were abnormal in all industries and can not be attributed to the Total ------50. 25 importation of Mexican zinc ore. From this the smelter may get a maximum of 8H per cent, 1,050 pounds of spelter. . III. Now, take Mexican ore, running 40 per cent zinc, which is far above THE JOPLIN DISTRICT IS SAFE FROM FOREIGN COMPETITION WITHOUT A the average. Obviously the smelter must buy H tons of this to equal PROTECTIVE TARIFF. the metallic contents of his 1 ton of 60 per cent Joplin ore. The inland location of the Joplin mines and the proximity of the Mea:ico. smelters furnish Joplin with abundant protection. 1 ton 40 per cent ore, delivered ------$22. 50 The smelters of one-half the spelter produced in America are located One-half ton 40 per cent ore, delivered______11. 2:5 close to Joplin in the Kansas gas belt. The freight from Mexico to Smelting cost, 1! tons------15. 75 Kansas for each ton of ore averages $6.50, or about 10 times the Joplin Kansas rate. Total------49.50 The Joplin ores, which are the richest in the world, average, when From this the smelter may get a maximum of 85 per cent, or 1,020 concentra ted for the market, about 57 per cent zinc contents and are pounds of spelter. sold on a basis of 60 per cent zinc contents, which is the standard. On the above figures, it would appear that the cost of Joplin spelter They often run even higher. The o.res from Mexico may average a_bout and Mexican spelter, when one had the benefit of the best Mexican ore, 35 per cent zinc. They may occas10nally run to 40 per cent, while a stood about as follows: Joplin, 0.478; Mexico, 0.485; giving Joplin an large tonnage figures at only 32-33 per cent, and some even lowH. advantage of about one-tenth of a cent to every pound of spelter. c. E. Siebenthal, Assistant Geologist of the United States Geological Survey, writes as follows : EXAMPLE C. "I have yours of March 15, inclosing clipping from the Joplin Globe, It takes approximately 2 tons of 60 per cent Joplin ore to make 1 ton· in which the statement is made that Mexican zinc ores imported in 1908 of spelter. Therefore the smelter must charge against each ton of averaged 43 per cent zinc. 'l'he mining editor of the Globe evidently spelter made from Joplin ore the following sums in addition to the price arrived at this result by dividing the spelter made from Mexican ores of the ore: during 1908 by the importation of Mexican ores during that time. Joplin: This makes two assumptions which are not warranted: (1) That all Freight to Kansas, 2 tons, at 65 cents per ton ______$1. 30 the zinc ore im_Qorted from Mexico is used in making spelter, which is Smelting charges, 2 tons, at $10.50 per ton ______21. 00 not the fact; (2) that the spelter produced during 1908 was derived from ores imported during that year alone, which takes no account of stocks of ore on hand at the beginning of the year. According to Total------22.30 the reports of the zinc smelters to me from 1907 and 1908, the average It takes approximately 3~ tons of 35 per cent Mexican ore to make 1 recovery of zinc from l\Iexican ore was 27 per cent for 1907 and 30~ ton of spelter. Therefore the smelter must charge against each ton of per cent for 1908. Assuming that the smelting losses were 15 per cent, spelter made from Mexican ore the following sums in addition to the this would make the zinc contents of the ore approximately 32 per cent price of the ore : in 1907 and 36 per cent in 1908." Mexico: It is thus apparent that to get from Mexican ore the same amount Freight to Kansas, 3~ tons, at $6.50 per ton ______$21. 67 of metal that a smelter can get from 1 ton of Joplin ore he must use Smelting charges, 3§ tons, at $10.50 per ton______35. 00 more than 1 ton of Mexican ore. Taking, therefore, 1 ton of Joplin ore of the 60 per cent standard, it would take H of the 40 per cent Total------5a67 Mexican ore and nearly 2 tons of the 32 per cent Mexican ore to This demonstration shows that there is a natural protection on the carry the same amount of zinc, according to the assay. There is Joplin ore of $34.37 for each ton of spelter, or about li cents for each another advantage in the Joplin ore, viz: The most efficient smelting pound of spelter made from Joplin ores as against the Mexican ores. practice may gain from the Joplin ore a maximum of 87?; per cent of In neither case has any charge been made for cartage or expense in the theoretical zinc contents, while equally efficient smelting of Me-x.i buying, but in both these items the amounts are heavily against the can ore will yield a maximum of but 85 per cent of the theort!tical Mexican ores. zinc contents. The difference is due to the dilference in the character EXAMPLED. of the ores. Still further, the furnace space required for the lean Lead-bearing ores of all kinds bear a duty of 11; cents per pound on Mexican ores is obviously greater than ·that required for the richer the lead contained therein. All Mexican zinc ore carries lead, and it Joplin ores to get approximately the same yield. This involve~ g-!"eater cost. The smelting charge of a ton of Joplin 60 per cent o_re is $10.!'iO. averages about 4 per cent of the contents. The government assayers To get the same amount of metal from 40 per cent Mextcan ore tile allow hereon 1~ units in the assay, so that only an average lead con tent of 2~ per cent is assessed for duty. This amounts to an assess smelter must treat 1~ tons, at a corresponding cost of over $Hi.15. To summarize: (1) The freight rates are against the Mexican ores; ment of 1~ cents per pound on 50 pounds in each ton, or 75 cents duty, (2) The Mexican ores are leaner; (3) it is impossible to gain from collected on each ton, on the average. This item, though small, is a the Mexican ores more than 85 per cent of their theoMtical zinc con constant burden on the importation of Mexican zln<; ores. tents; (4) there is greater cost in handling the Mexican ore in IV. furnaces. THE REAL SITUATION IN JOPLIN. Let us consider the following examples : The entire zinc industry, including the Joplin producers, felt the de EXAMPLE A. pression of 1907-8, but they are in error in ascribing it to the importa tion of Mexican ore, if, as might have been inferred from the arguments In May, 1908, competent parties made an elaborate- lnvesti~ation cf of l\lr. S. Duffield Mitchell and l\lr. A. 0. Ihlseng, they do ascribe it. the cost of mining and concentrating· at Joplin and the surrounding It is our belief that, had business remained normal during 1907 and camps which showed that the cost of a ton of concentrates averaged 1908 the Joplin ore producers would not have noticed the importations $28.54', excluding royalty. The average produ~t of the district was 1 of zinc ore. That it is an afterthought on the part of some of the ton of galena (lead) to ·7 tons of blende (zmc). Lead ore is now interested parties to place the cause of poor business in 1907 and 1908 worth $52 a ton, so that the one-eighth ton of lead concentrates in on Mexican ore is clear to anyone who wUI read the leading article in each ton of concentrates is worth $6.50. Deducting this from the cost the Joplin Daily Globe of January 26, 1908. We quote from it the gives $22.04 as the net cost of seven-eighths of 1 tone of zinc concen following : . • trates, or $25.19 for 1 ton of blende, when all profits are deducted. " The panic has proved that the ores of Mexico can not be produced The blende concentrates average 57 per cent zinc. Spelter would under a 5-cent spelter market, according to the highest authority, and then cost: correspondence from a leading reliable source conveys the information that the halcyon days of the Mexican production are of the past-a his tory and recollection only-that the immediate future has little hopes ~~:ig~f t~f .:~~~~======$25:ij~ in store for an early resumption of outputting, while transportation mat Smelting ------10. 50 ters have become a serious problem, except through a few months of the summer. Total------36.34 " The producing areas of the Rocky Mountain States practically One ton of 57 per cent ore contains 1,140 pounds of zinc, of which ceased their production early in the panic; Wisconsin, with Joplin, con 8H per cent is obtained as spelter, or 997~ pounds, costing 3.644 cents tinuing a small output to the end of the year. pet· pound. "In writing of the year's record of zinc-ore production, Walter Ren One ton of 35 per cent Mexican ore will give a yield of 85 per cent, ton Ingalls, in the Engineering and Mining Journal, concludes his or 595 pounds of spelter. To make this at the same cost as the spelter resume in these words: 'In any event, the experience of 1907 seems to made from Joplin ore as above--3.644 cents per pound-would give a show that these foreign ores are not serious competitors of the Ameri total cost of $21.68. The costs to be deducted from this are : can, duty or no duty.' Mr. Ingalls might have added that no importa Cartage to railroad ------$4. 00 tions of ores were made except to supply a demand in excess of the domestic production. 1g:gg "While the recent panic has proved that Mexican ores can not be pro g~~r~~gt~-~~~~:~======duced under a 5-cent spelter market, it might be added thereto that Total------21.00 Mexican ores are no competition to superior grade of ores mined in the 3356 . CONGRESSIONAL RECORD-SENATE. JUNE 16, Joflin district, at any price for spelter. These ores will be imported fore the result of the proposed duty on ore would be to bring in Mexican on y when the domestic supply of. zinc is less than the demand of the ore in, the form of spelter and thus defeat the very purpose of the .Toplin ;;melters. mine owners. To prevent this and Eurovean importation, a prohibitive "Another lesson the panic bas forced home to the producer of the duty on spelter would be necessary, but such a duty on spelter would Joplin d' t.rict, and to the smelters reducing the ore of this district, is create inflated prices of spelter, work hardship to the consumers, and · the fact that the market fQr Joplin zinc ore rules the price of spelter ultimately drive the consumers to the u e of cheaper substitutes and. in nounal conditions of business. This means that with conservative completely check the development of the industry. This would neces production the producers of the zinc ore of this district can maintain sarily injure the miner as well as the smelter. their own price for their commodity, without reference to any other The Monterey dispatches of April 29, 1909, repor~ that a concession producing area under the sun, so · Iong as those demands are in for the manufacture of spelter in Mexico bas just been granted by the harmony with the general business conditions of the country at Mexican Government. · large. * * * It will hardly be gainsaid that a restriction of the zinc-ore supply by "At the end of the first half of the year 1907 this average price was a prohibitory tariff or the imposition of any duty at all will enhance the $46.82 per ton, and with anything lilie normal conditions during the· price of spelter to the consumers. With the ~ery slight disparity here last half of the year the average would have exceeded the banner year tofore existing betwen the price of spelter here and abroad it has been of 1005, notwithstanding the fact that the importations during 1907 of some advantage to import spelter for· the purposes of domestic manu~ w~re more th::tn. double the previous year." factures and secure drawback on the exp01·tation of the manufactured This article we believe reflects the mope intelligent sentiment of the product. It is not known in what arts this practice bas been followed United States ore producers, including those in Joplin. It should be but tlrn Treasury Department statistics show that drawbacks amounting appreciated, however, that if, as is generally understood, Mr. A. 0. to $10,610.13 were paid on the exportation of foreign-made spelter in Ihlseng, who h:is been foremost in the demand for a duty on zinc ore, 1906. If tllis practice has been profitable in the past it w11! become is largely interested' in the buying of Mexican ore as the agent of much l!lore profit:abl~ in the fut1~re if the~e is an import'duty on ore und European smelters, he and others similarly situated would derive a the pr1ce of d, into carts, or because the mine was all-eady opened and ready fol'.' we read in large headlines : " District is now producing at the greatest operation. For obvious reasons these two sources of zinc ore supply rate in its historyr Zinc ore mark.et holds very steady at the $41 level are but temporary, and are- now, as we are advised, rapidly approach throughout the week.." In the text of the article we find that the high ing an end. The alleged new discoveries of zinc depo its in Mexico est price poid was $43.50. It should be borne in mind that this steady have been greatly exaggerated. We have gone to considerable expense buyin00 of Joplin ore and the high range of prices are maintained in the in. the past five years in sending experts to search for such deposits face of absolutely free importation of Mexican ore, stimulated by the in Mexico, but the results have been very disappointing. The known_ threat of absolute prohibition of im.portation in the near future. zinc deposits of importance in Mexico are compara.tlvely few, and their working is sure to entail much greater expense than the working v. of the tailin.,,as dumps and the abandoned lead mines. In the majority MPO'RTEU ORE HAS NOT DI IINISHED THE OUTPUT OF THE .TOPLIN DISTRICT. of zinc-ore prop-0sitions in Uexico transportation has been, and for Imports of zinc ore into the United States. many years will be, n matter of serious moment. We should think it a simple matter for· the commlttee, through a [In tons of 2,000 pounds.I disiuterested expert who is acquainted with conditiorut in l\lexico, ro verify the above statements. Source. There is some preten e that a sincere effort wns ma.de to obtain reliable statistics regarding zinc--0re production in Mexico, and the ~~~00>-~ Daily Consular Report of December 'l, 1908, is brought forwar-d by 2,100 8,561 600 1,157 the Joplin interests RS' embodying the results of that effort. This British Columbia------report contained a letter from the United States consul at Chihuahua~ Mexico------. ---. ___£_(??)) ~ ::~= a 8988,, 500000 ~0908 '. 8009."'T Mexico, and purported to give a ~rue st~tement of:. zinc--0re mines ana. costs of production of zinc ore m Me:nco. The cousul was not an Total------~----- ~ u expert, and he took as his authority one H. B. Pulsifer, an alle.,.ed mining expert. It now apears from the Chihuab:u.a IDnte1·prise of a The actual tonnage oi' ore imported was somewhat greater than this January 2 1909 that the request fm: the consuJ:s report emanated figure, but it included ome mixed ore,_ which, fol' statistical purposes, from Congi-essmah Hackney, of the Joplin district,. and that Pulsifer's has been r.educed to the zinc equivalent. This table is based on reports expenses were paid by the Joplin mine owners. from the smelters of the ore received by them f The brief of Messrs. Robinson and Caulkins, of Joplin, states that ested, an.d the senior Senator from Colorado was present at the uverage cost of mining Joplin ore is $37.78. diff t t• The brief of the Granby Smelting n.nd Mining Company smtes that eren unes. the cost of mining Joplin ore is $35. Mr. HUGHES. Did he represent the miners? Thnt is my A very careful inve :tigation of thls subject has shown that the aver- question. nge cost of Joplin zinc ore is but $25.19. The discrepancy is largely M SMOOT F th ·....: h h tak i ht 1 I accounted for by two items improperly included as costs by the ,Joplin r. ~ · rom e pos1.uon e as ·en r g a ong, brief writers: (1) The royalty of approximately 15 pel' cent on the should think he did. gross selling price, which is paid to the landowner and which is Mr. HUGHES. I know that the amendment as framed by obviously a profit, and (2) the allowance for the lead concentrates the committee is not satisfactory to those who dig the ore, espe amounting to about one-eightb of a ton in each ton of concentrates, worth $6.50. Fifteen per cent royalty on ::i. selUng price of $40 is $6, cially the low-grade part of it. It gives the higher duties to the so th::i.t the total of the two items erroneously included in the costs of ore that is needed least and gives the lower duty to tlle ore the Jo.Plin brief writers ls $12.50. . that eed t ti t Th t i th bjecti I have had Takrng, then, our figures of $25.19 as the real cost of a ton of zinc n s pro ec on mos · a s e o on blende in J"oplin bins and adding the items for lead profit and royalty, presented to me by them when they heard of the form of amend we have $31.69, which tallies approximately with the figures of Robin- ment reported by the committee. son and Caulkins and exceeds the figures of the two other briefs. l\Ir. SMOOT. I think, if the Senator will wait until I finish, The fallacy of figuring the royalty as a cost arises from the circum- stances that the owner of the fee and the owner of the mining lease I will explain to his satis:t'action the reason of this graduation. are usually separate persons. If they are the same person. it would I am just as much interested in the mining of zinc ore as the appear clearly that the item of royalty wC>uld be included in the mining Senator from Colorado, and if the mining of zinc ore was ex- profit. XII. actly in the same condition as the mining of lead ore, I would A PROTECTIVE TA.RIFF ON ORES IS ECONOMICALLY UNSOUND. be occupying the same position as the Senator from Idaho to-day. A protective tariff on ores is equivalent to a premium on the speedy l\Ir. HEYBURN~ Mr. President-- exhaustion of certain natural resources. which, once used, can never The PRESIDING OFFICER. Does the Senator from Utah be reproduced. This objection has been urged against a duty on lumber • ld t 0 t"" S t f Id h '> which in time will grow again, but 1t applies most strongly to ores yie "lie ena or rom a o J which do not grow. Mr. SMOOT. Certainly. Furthermore, if, as is claimed, the cost of mining in Joplin is greater Mr. HEYBURN. 'Wherein does it differ? than formerly, and if th.e call for protection is based on such claim, Mr. SMOOT. I will explain to the Senator wherein it differs. what limit can there be to the ra.te of duty? The cost of mining, as the miner is forced to deeper or lea.n_er ground, is bound to increase. Mr. HEYBURN. It does not differ in Idaho. The theory of protection is to build up industries which can be helped. Mr. SMOOT. I will explain to the Senator wherein it differs; It is a prostitution of the theory of protection to apply it to an industry and I think as far as that is concerned, we are here legislating which from natural causes must inevitably work its own destruction. Mines are unlike factories. There must come a time when, with all the for the whole country and not for any one particular place. protection in the world, there is nothing left of a mine but a hole in Mr. HEYBURN. Idaho is a part of the country. the ground. Surely it can not seriously be claimed that the Govern- M SMOOT A 'b 1 t I d · th St t Th ment must follow the Joplin mines with a wall of protection reaching r. • .n.. SO u e y, an so IS every o er a e. ere- to the center of the earth. The truth is that the only legitimate pro- fore we are legisla.tirtg to take care of Idaho as well as all other tection that can be given to mines is the protection -0n the products. States. ~{:; !:1~~ 1. hni!>°:fiil~~\~1t~d~t~~h~tia~h~;;g~tfv~ti~;f&n 0~0 zI~~ With this graduated scale I claim that Ida:11o will n?t be ~mrt, metal, has been the sole cause of the development of the Joplin zinc or Colorado or Utah. I will tell you wherem there is a differ mlnes. Without the p~ote ction on th ~ meta the mines would never ence. There is a difference in this particular, that in the zinc have been opened. Mme owner and smelter have shared, but not ores there are two classes of users-one is the oxide manufac- equally, the benefit.a of the duty on spelter, most of the benefit having I . gone to tpe miner. A higher price for spelter means a corresponding turer and the other IS the spelter manufacturer. increase m th.e price of ore and all possible additional profit is ab- Now, Mr. President, I want to say that the low-grade ores sorbed exclusively by the miner. It is quite without reason that the according to the graduation proposed allows all ores below 10 mine owners say they are without protection while the smelters are protected. A cuttin~ off of the duty on spelter would quickly bring per cent to come in free, and in so doing can hurt nobody, no thls home to every zinc mine owner in Amen.ca. State, no miner in the United States. co~cLus10N. Mr. HEYBURN. Mr. President-· - Zinc ore, a raw material, free of import duty for fifty years is now The PRESIDING OFFICER. Does the Senator from Utah scheduled for an absolutely probibitory duty while the United States yield to the Senator from Idaho? is unable to produce enough of this ore to meet the demand. The estimates of revenue under the Payna biU figure nearly $1000 000 as Mr. SMOOT. I yield. the revenu~ likely to accrue from zinc ore on importations.' This, Mr. HEYBURN. There would not be any mine to hurt in while showrng that a. shortage of domestic ores is contemplated is Idaho tf you let the Mexican ore in here on th basis • utterly beyond reason so far as the revenue item goes for no ore 'can e you pro be imported at tha.t rate of duty. The estimates are' also misleading pose. There would not be any zinc mines in Idaho. They prob as to revenue under the existing law, for, while certain duties were ably would be raising wheat down in the Pelouse country. collected, they were paid under protest, and the court has ordered a Mr. SMOOT. I can explain it to the Senator in detail. Ten rellquidatlon with no duty. The estimates of _the Finance Committee 200 show that the proposed duty reaches an approximate ad valorem duty per cent ore means pounds of zinc contents to the ton. of .84 per cent, as against free ent17 ~or the past fifty years. It is Spelter to-day is worth $5.30 per hundred, so the 200 pounds belleved that there is no other case similar to this in the entire Payne would be worth $10.30 when converted into spelter. The Sena-. bill, and the feature is thrown into more glaring relief by the proposed t thi k f t th t $6 large reduction in the duty on spelter and sheet zinc. (Dated Washing- tor does no . n or a momen a we can pay .85 a ton ton, D. c., May 10, 1909.) freight and pay for the ·smelting charges of the ore for $10.30? l\Ir. SMOOT. l\fr. President, I have given a great deal of time It will cost more than $10.30 for freight and smelting. There to· this paragraph. I have had before me. as a member of the fore no mine producing 10 per cent ore in the United States Finance Committee, all of the interests-the miners, the smelter would be hurt by allowing 10 per cent ore to come in free. men, the purchasers of spelter and people interested in oxide. There is another reason why the committee decided to let 10 I think I have given more time to this particular paragraph per cent ore in free. Copper ores are imported into this coun- than to any other in the whole bill. try carrying .sometimes as high as 10 per cent of zinc. In the Mr. BURTON. .M:r. President-- smelting of copper ores it is impossible to recover the zinc, so The PRESIDING OFFICER. Does the Senator from Utah the committee thought it was not right to have copper ores yield to the Senator from Ohio? smelted in this country with 10 per cent of zinc content pay a- Mr. SMOOT. Certainly. duty when none of the zinc was recovered, so they decided that Mr. BURTON. I wish to ask a question for information: it would hurt n-0 interest to allow 10 per cent zinc ores to come Did the manufacturers of galvanized steel sheet and iron sheet in free. Ol' galvanized iron, appear before the committee? ' Mr. KEAN. Mr. President--- 1\fr. SMOOT. At no meeting were the galvanized-iron m·en The PRESIDING OFFICER. Does the Senator from Utab present. yield to the Senator from New Jersey? Mr. HUGHES. Mr. President-- Mr. SMOOT. Certainly. Mr. SUOOT. I yield to the Senator from Colorado. Mr. KEAN. In other words, as I understand the Senator if Mr. HUGHES. I should like to inquire whether at any time the 10 per cent exception was not made there would be a d;ty anybody claiming to represent those who mine zinc in Colorado on copper ore that contained zinc. · were either before the committee or were heard upon the gradu- Mr. SMOOT. They would have to pay the duty on the zinc ation of the duty as set forth in the committee's .amendment? contents, at whatever rate we may fix. l\Ir. SMOOT. I can not call to mind now any miner who ap- Mr. KEAN. But, as I understand it, the zinc content of 10 peared before the committee, but if they did not it was not be- per cent is so small that in the smelting it is impossible to retain cause they did not have a chance, because in the public press the zinc. not ices were given of the meetings and intended meetings. I l\fr. SMOOT~ It is not a question of being so small. think as far as the miners generally were concerned they were Mr. KEAN. It goes off in fumes. very well represented. Mr. Sl\IOOT. It is a question of the mode of smelting that Mr. HUGHES. I ask the question because-- the zinc goes off into fumes. Now, referring to ores above 10 Mr. SMOOT. I will say further to the Senator that in several per cent and less than 20 per cent, we decided the duty ought of the hearings we bad before us many of the Senators inter- to be a quarter of a cent a pound on the zinc contents. 3358 CONGRESSIONAL RECORD-SENATE. JUNE 16, I will state the reason for that. lWe wanted to put a duty State contains any zinc, for no such ore is knowu to exist at on that class of ore sufficient to prevent it being brought into this time. However, under the circumstances, I think it is ad the country just across the border and concentrated and visable to have the copper ores mentioned imported to this shipped to the smelter as concentrated ore. country, rather than to have them go to Europe, particularly Mr. HEYBURN. Mr. President-- Germany and England, where there is extreme competition for The PRESIDING OFFICER. Does the Senator from Utah that class of material. yield to the Senator from Idaho? l\fr. HEYBURN. I was just wondering, hearing the argument Mr. SMOOT. Certainly. of the Senator from Utah, whether it would not be better for Mr. HEYBURN. Are we to understand that the first 10 us to consider first how we can take care of the product of zinc per cent of the zinc in the copper ore would all be lost in smelt of other countries, and then, should there not be 'enough brought ing and go off in fumes? in, mine some of our own. · Mr. SMOOT. Absolutely all of it in copper ores. Mr. SMOOT. In this bill we are taking care of the zinc prod Mr. HEYBURN. So, if the ore would have only 10 per cent uct of this country. zinc, it would not then have any zinc in it at all? . Now, in relation to the ores carrying 20 to 25 per cent of Mr. SMOOT. You would not recover any zinc. zinc-- l\fr. KEAN. Unless some method was discovered by which Mr. HUGHES. J\fr. President-- it was done. The PRESIDING OFFICER. Does the Senator from Ytah Mr. HEYBURN. If it had 15 per cent zinc, it would still yield to the Senator from Colorado? lose 10 per cent and have 5 per cent left? Mr. SMOOT. Certainly. Mr. SMOOT. The history shows that copper ores shipped to Mr. HUGHES. Before the Senator leaves that point, I wish the United States for smelting do not carry 15 per cent in to inquire whether it is his understanding that all of the ore zinc, and I am only speaking of copper ores. bearing less than 10 per cent is copper ore, and if he does not Mr. HIDYBURN. The Senator is speaking of history. I can know it to be true that there is much more zinc under 10 per without any difficulty show him that some copper ore has more cent than there is in copper ore brought in? than 10 per cent. Mr. SMOOT. But it is a question of smelting. You can Mr. SMOOT. The only protected copper ores that come in smelt the lead· ores that have zinc and recover the lead and have 10 per cent of zinc in them. zinc, but you can not recover the zinc in copper ores. Mr. KEAN. The Senator does not mean protected copper Mr. HUGHES. But you recover the zinc contained in the ores. lead ore. Mr. SMOOT. I mean protected in this way, by compelling Mr. SMOOT. Certainly, and recover the lead, too; but in them to pay a duty on the zinc that they do not recover. the copper ores you can only recover the copper and not the Mr. HEYBURN. Oh, I see; this amendment is in the interest zinc. of the smelters. · . Mr. HUGHES. Then why does not the committee exclude Mr. SMOOT. It is in the interest of no one except tlie Ameri copper ore bearing 10 per cent zinc which can not be re can workingman. covered, if smelting is now conducted in that way, but whicb ·Mr. HEYBURN. He would not be benefited by vulcanizing can be and is recovered-- this 10 per cent of zinc out of copper ore. How is he benefited? . Mr. SMOOT. Copper ore is on the free list to-day. Mr. SMOOT. If there was 10 per cent of zinc in the copper Mr. HUGHES. I understand. ore and the smelter was made to pay a cent a pound- Mr. KEAN. That is where zinc ore ought to be. Mr. HEYBURN. Who would pay? Mr. SMOOT. That is the Senator's opinion, of course. Mr. SMOOT. The smelters who imported their ores. Mr. HUGHES. That is the opinion of the free trader from Mr. HEYBURN. I am not worrying about those miners if New Jersey, but not of the tari1I-for-revenue Democrat from they are in some other country. Colorado. Mr. SMOOT. Nor am I. Mr. KEAN. I beg the Senator's pardon; I did not hear Mr. HEYBURN. How are the American miners compelled what he said to pay for it? Mr. HUGHES. I said, in the opinion of the free-trade Mr: SMOOT. If the Senator will only wait a min1ite, I will Senator from New Jersey, zinc ought to be on the free list, .tell him. If in the copper ore there was 10 per cent of zinc but it is not where the tariff-for-revenue Democrat of Colorado and the smelter had to pay a cent a pound on the zinc contents, would place it. . every ton of that copper ore would have to pay $2 for the Mr. KEAN. Mr. President-- zinc contained in the copper ore that could not be recovered. The PRESIDING OFFICER. Does the Senator from 1Jtah Mr. HEYBURN. Then the foreigner would have to pay it. yield to the Senator from New Jersey? Mr. SMOOT. Wait a minute. Certainly the American smelt Mr. SMOOT. Certainly. ing people would have to pay it, provided it was smelted in Mr. KEAN.· Mr. President, I do not know whether the America, and if a provision is placed in this bill compelling Senator from Colorado is a tree trader or a tariff-for-revenue them to pay $2, the ore would go to some foreign country to Democrat. I know what he always votes for. It is to put the be smelted, because that country would ha·ve the advantage highest possible duty on every product of the State of Colorado. of the American smelter of $2 a ton. Therefore, instead of Mr. HUGHES. Not yet. I will say, however, that I do· ·ob smelting that ore in this country, it would be smelted in a for ject to a classification of a duty which is pretending to give eign country. . That is how the American workingman gets the some service to the State and yet by its classifications largely advantage in the smelting of this class of ore. destroys it, because I know that in the State of Colorado there Mr. HEYBURN. I would be glad if the Senator would tell is some zinc and some lead and a little silver, and that makes it us where the American ore producer comes in-whether be po sible to operate the mines. If the value is taken out of any would not have the market after we get these other people ont one of the three components, they can not be operated. I know, of it? _ further, that there is no industry in America which pays as Mr. SMOOT. There has never been a pound of zinc ore yet high duties upon everything it uses, including its powder, its mined in America that was of sufficient value to profitably iron, its steel, its fuse, and everything else, as the mining in smelter or concentrate as in- the Joplin district that has not dustry of Colorado. found a ready market in this country, I care not how many l\Ir. SMOOT. Mr. President, I know positively that the tons mined: The fault that is found here is that there is not graduated scale here is not going to hurt tl;le miners of the enough ore mined in this country, and the opponents of this Joplin district, and it is not going to hurt the miners in Colo . measure claim that they should be allo~ed to go to Mexico to rado, nor in any other State in th'I Union. purchase ores, because they can not get ores produced in this Mr. HEYBURN. What is it for? country in sufficient quantities. Mr. SMOOT. I will tell the Senator what U is for. It is for Mr. HEYBURN. I would ask the Senator, then, if he thinks the very purpose of allowing the oxide people who use the Iow it would be well-- grade zinc ores to get their zinc ores from Mexico if they can ~fr. GUGGENHEIM. Mr. President-- not purchase them in the United States. '.rhe PRESIDING OFFICER. Will the Senator yield, and Mr. HEYBURN. The state engineer and geologist says that to whom? there are a million tons of ore in one district ready for ruining Mr. SMOOT. Certainly; to either Senator. if we can simply get the Mexican put to bed. Mr. GUGGENHEIM. The ore in question, to which the Sena Mr. SMOOT. The Mexican never shipped a pound of ore here to! from Utah refers, I judge from what was said to me, is an until a few years ago. ex.ceptionn.l ore. This copper ore is mined in South America and, Mr. HEYBURN. He did not know that he had it. containing zinc, does run exceeding 10 per cent zinc. The Sen J\Ir. SMOOT. Of course he did not know that he had it, and ator from Idaho need have no fear that the copper .ore in his the reason why we are putting a duty to-d:ly upon the ore is 1909. CONGRESSIONAL RECORD-SENATE .. 3359 be.cause of the very fact that he has it'and is shipping it here Mr. SUOOT. I know th.it it has not passed, because we arc and displacing American ore. As far as I am concerned, I penalized to-day for every unit -0f the zinc in the reco-very .of want the duty so high that he can not interfere with any miner ore in our State. That is the case; and it has been for years. in this country, and at the same time I do not want to destroy .Afr. President, the committee also decided that there should any industry in this country. If it were not for the oxide people be a proper differential between what was cha.rged upon the requiring low-grade ores, I would be exactly in the same posi- ore and the spelter. tion as the Senator from Idaho, who claims it is necessary to ·we went into the question carefully, and from .all the testi haYe 1 cent a pound on the zinc centents no matter what per- mony we decided the differential on the zinc in blocks or pigs centage of zinc the ore may carry. should be one-third of a cent, or one and one-third of a cent on 1\fr. HEYBURN. I should like to know if the Senator then zinc .spelter; 'On sheets,-three-fourths of a cent; and so reported candidly proposes to let in that oxide ore free. the amendment. The changes from the House bill were ma.de Mr. SMOOT. They will never ship that oxide ore here if by adding the differential, which was absolutely necessary in they can get enough ores from the United States. order to allow the smelting of the ores in this country and to .Mr. HEYBURN. But then-- prevent shipments of spelter from foreign countries. . - Mr. SMOOT. But to-day they can not get it; it can not be Mr. President, I do not know that I have anything more to purchased. The only place they can purchase it is in Mexico. say on this subject, but I will add that I feel that the committee Mr. HEYBURN. Four years ago they did not know that it have taken all interests into consideration, not the mining in- was in Mexico. terests alone, not the smelter interests only, not simply the l\fr. SMOOT. Many of the mines that they used to purchase owner of the mine, but all interests-the oxide manufacturers, from in Wisconsin they can not purchase fr-0m to-day, because the spelter manufacturers, the miner, and everyone who .is in conditions in the mines have changed. The ore is mined to-day terested in this question. So far as it was possible, we have below water level and the ores are sulphide ores and can not be given the Senate the facts as they were presented to us, and used to manufacture oxide- of zinc. This will be the case in we hope and trust that the Senate will support the amendment almost every mining district in the United States as offered by the committee. Mr. HEYBURN. I should like to ask the Senator candidly, Mr. BURTON. Mr. President, I would say to the Senator then, if he does not propose to let in this Mexican ore because from Utah that I have given my attention to opposing the duty of its being oxide? on zinc ore, but it seems to me that it would be manifestly un Mr. SMOOT. I propose that the ores that will not come in just to leave the differential between zinc ore and zinc in the competition with ores that go into spelter shall come in here .at pig a:t one-third of a cent a pound. I will ask the Senator the duty we have provided. . from Utah is it not true that the actual amount of zinc ob- Mr. HEYBURN. That is the old story; I know just where tained from a theoretical ton of zinc as represented by ore is they stand. They propose to cut our zinc market in two, be- only 87! per cent? cause it is just about one-half on one side and one-half on the Mr. SMOOT. That is absolutely true. I have always ·nnder other. And they propose to give it to some interest that owns stood it was 87 per cent, but some .say it is 87! per cent. Grant the mines in Mexico. They are n.ot Mexicans. I know who ing, however, that it is 87 per cent, then it is also true that that own them. recovery of ore is the .same in all countries; in other words, if Mr. SMOOT. The statement made by the Senator is drawn the ore is smelted in Germany, all they recover there is 87 per from his own imagination. No statement of that kind has ever cent. . been presented to the committee. No thought has ever come t6 Mr. BURTON. I would suggest to the Senator from Utah the minds of the c-0mmittee, and no smelter man even has sug- that this is not reaIJy the question. The question is, At what gested it. price can zinc spelter be produced abroa~? Is it not probable, l\fr. HEYBURN. They generally do not suggest it. with thiB high duty, which will be prohibitory on Me:s:ican ores, Mr. SMOOT. They certainly suggest wherever their interests that those ores and other. will go to Europe to be smelted, and require. so be produced at a lower rate than ever before, and that one- 1\fr. DIXON. Mr. President-- third of a eent per pound would be ab.solutely inadequnte? The PRESIDING OFFICER. Does the Senator from Utah Will -the Senator from Utah state any other case .in which yield to the Senator from Montana? the differential between the crude material or the ore and the Mr. SMOOT. Certainly. finished material, the pig zinc or the spelter, is so small as Mr. DIXON. I suggest, in connection with what the Senator one-third of a cent a pound either in the tariff of the United from Utah has stated, that in copper ores, carrying a small per States or in the tariff of any other country? cent of zinc, the whole percentage of zinc is lost in smelting, Mr. SMOOT. Mr. President, we considered that question and it would not be a matter of justice to charge the copper ore very thoroughly. I had the testimony of the smelter men up with duty on the zinc contents, amounting ·in the case of 10 themselves as to wha-t the real difference was between the per cent zinc to $2 a ton, and then lose the entire contents in smelting of zinc ore in this country and .abroad; and it runs smelting. I want to suggest to the Senator from Idaho [Mr. all the way from 13 cents to 33 cents. Some claim that we can HEYBURN], if he does not know it as a matter of fact, that in smelt zinc ore in this country cheaper than it can be smelted at all the low-grade lead ores that carry 8 or 10 per cent of zinc, any -0ther place in the world. They give as the reason the fact the smelters put on a penalty for the zinc contents. Instea.d of that in Oklahoma and m Kansas, where most of the smelters being added to the value of the -0re, they always penalize lead are located, they have the cheapest gas on earth, and therefore ores that carry 8 or 10 per cent of zinc. can smelt ore as cheaply as can be done in any other country. · lUr. HEYBURN. With the consent of the Senator from But, :Mr. President, the greater pa.rt of the testimony did not Utah- show that to . be the fact. The committee wanted to allow a 1\fr. DIXON. That is what they do. They penalize at the rate of duty sufficient to prot-ect all interests, and decided a rate of $1 a ton for each unit of zinc. differential of one-third of a cent wa:s necessary. l\fr. HEYBURN. I will answer the question that was sug- Mr. GUGGENHEIM. That is per pound, I believe? gested by the Senator from Montana. In the first place, what Mr. SMOOT. That is per pound. copper ores are shipped into this country that would come under Mr. HEYBURN. One-third of a cent. this provision? Mr. SMOOT. One-third of a cent a pound. Mr. DIXON. I could not specify them, exactly. Mr. HEYBURN~ I would say to the Senator from Utah that 1\fr. HEYBURN. There are not enough of them to make no such differential as that would co_ver the difference between figures for. the cost of the raw material and the finished material, in the l\fr. DIXON. I think the Senator is mistaken. I have al- expense of obtaining it or 1n maintaining a differential between ways understood that there was a large importation -of copper the foreign cost and the domestic cost, or in the markets that ore from Chile that carries a low per cent of ·zinc, which was will work out practically. It is conceded that the cost per ton lost in smelting, and which if not brought into this country to is $10.50 for the reduction. All seem to agree upon the fact smelt here would go to European smelters. that it is $10.uO a ton of ore, which is very much higher, mani- Ir. HEYBURN. They would go up the chimney of the festly, than would be the foreign cost, which is estimated to be smelter. I know all about penalizing for zinc. We lived under $7.28 to $8 a ton. those conditions for twenty years, when every calculation that Mr. SMOOT. Mr. President, I will state to the Senator from was made as to what a carload of ore would pay in the net, we Idaho that I talked with the smelter men themselves upon had, of course, to mak.e deductions for the zinc; but that has the subject. We took into consideration what the freight was passed. from Mexico to our smelters, and what the freight rate was :Mr. DIXON. In some ores. from the Mexican mines to Germany, and the freight back upon Mr. REYBURN:. ~t is in certain iron ores. the spelter from G-erµiany. We all?O took into c.onsideratlo.n 3360 CONGRESSIONAL RECORD-SENATE. JUNE 16, the freight rate from the smelter to the place of sale; or, in protection under the rule which; I think, we have .heard pro other words, to the centers where the spelter is used; and there Claimed many times in this Chamber during the past month." was no case in which it amounted to more than one-third of That is "in all tariff legislation the true principle of protection· a cent, as I said before. So I feel .absolutely certain that the is best maintained by the imposition of such duties as will equal spelter people will not be hurt with this differential of one-third the difference between cost of production at home and abroad, of a cent per pound. together with a reasonable profit to American industries." I The PRESIDING OFFICER. The question is on the sub demand the application of this rule that a square deal may be· stitute offered by the Senator from New Jersey [Mr. KEAN] given to the zinc industry of Missouri. for the amendment proposed by the committee. In Mexico they dig 45 per cent zinc ore out of the side of the Mr. WARNER. Mr. President, I am reluctant to occupy the mountain, with a tunnel, using not a cent's worth of machinery, time of the Senate even for a minute,. and· I should not do so and at an expense of approximately $2 a ton. They carry if were it not for the deep interest which the people of my State on the backs of burros and by ox teams, or on the backs of peons have in this question; deeper, I think, than in any other sched a few miles, and place it upon the railroad train. It costs them ule in the pending tariff bill, for the reason that in what is only $6.50 a ton to get ·that ore from the place where it is put known as "the Joplin district," composing portions of Missouri, on the train to the smelter in Kansas, Missouri, or Oklahoma ; Kansas, Oklahoma, and Arkansas, 70 per cent of the spelter and to-day under this rate of duty 35 per cent Mexican ore has· which is used in the United States is produced. Over 11,000 the advantage over 55 per cent Joplin ore. However, I shall men, nearly all Americans, are engaged there in the mining not go into that. industry. They are among the best paid laborers in the world; It has been said that we have had no protection. The fac they are independent laborers; they are home builders, having is we thought we had protection for. zinc under the Dingley their permanent residence in the mining district. bill, and the Treasury Department thought we had protection This and the importance of the zinc-mining industry in my amounting to 20 per cent ad valorem. The Treasury Depart State is enough to make me say something. But, Mr. Presi ment ruled to that effect in construing that act, but the im dent, back of that there is a bit of sentiment, from the fact that porters sought to have that ruling set aside, and they suc ~ my father was a day laborer in the mines in Wisconsin, and ceeded in doing so in the courts. The case was decided iu the as a boy I worked in and about the mines ; and the deepest dish·ict court, and, in January, in the court of appeals, in favor regret of my life, I think, was when, well-nigh three score years of the smelters; and up to the 20th of last month we had ago, I parted company at the mouth of. the shaft from the old returned to the smelters in refunds out of the duties they had blind horse that I had for two years led in the winters' SD.ows paid over $73,000. The importation of zinc ore continued, and and the summers' suns in operating the whipsey-derry of a lead had the 20 per cent ad valorem been collected upon tlle im- · mine. I have therefore some familiarity with the mining ports the amount collected would have equaled substantially J industry. the duty imposed upon such imports by the pending bill as And I have been hopeful that justice would be done to e-very sought to be ainended by the pending amendment. section of this country in the matter of. the duties on zinc. I It was not until 1904 that a pound of Mexican zinc ore was have believed, and believe now, that the Committee on Ways shipped into the United States, and then there were shipped and Means of the House of. Representatives should have acceded from Mexico 2,264 tons. In 1905 there were shipped from that to the claims of the miners, and that the committee should have country 18,074 tons, and in 1906 54,991 tons. It was then that given them the same protection that it gave the lead industry. the miners in the Joplin district began to see that they were be: The Ways and Means Committee, after careful consideration, ing swamped with this.Joreign ore. It was brought here not for· placed the duty on zinc ore at 1 cent a pound. The bill giving the purpose of being manufactured into oxide, but it was that protection came over to the Senate. In my judgment, the brought here by the smelters to be smelted to spelter, in com Senate Committee on Finance should have reported the duty at 1 petition with our own ores. In 1907 102,000 tons were im cent a pound on the· zinc contents contained -in the ore. It may ported from Mexico, and in 1908, when we had a slump. 46,000 be that I am overzealous on behalf of the men who work in the ~~ . mines. Yet, while not getting all that I believe they should Let me give a few figu:res more to show the importance of this have gotten, I do not think any interest has received more matter. I became a little curious to know what our disinter careful consideration at the hands of the committee than has ested smelter friends were doing this year, in view of the. the zinc industry, taking into consideration even the men who prospective legislation putting a duty upon zinc ore. I find are fighting it to-day-the oxide-zinc people and the smelters that in January they shipped 312 cars, or 9,360 tons, of Mexican who are here fighting against the granting of protection to the ore. For February I have not the figures. In March they men who work in the mines, yet always looking for and demand shipped 258 cars, or 7,740 tons; in April, 350 cars, or 10,500 tons: ing protection to their own interests. In May-mark it-531 cars, containing 18,585 tons. Mr. President, . I am no better protectionist than many other At the rate of this importation from Mexico they; would ship Republicans; but, sir, for nearly as long as the children of · here in a year an amount equal to 223,000 tons, an amount Israel wandered in the wilderness I have fought the battles equal to the entire output of the Joplin district last year, the of protection in Missouri against what seemed to be a hopeless chief zinc-pi·oducing section of the country, producing, as is majority, and I have yet to learn that free raw material is a suggested by the Senator from Utah [Mr. SUTHERLAND], about 1 cardinal principle of faith of the Republican party. 70 per cent of the zinc ore of the United States. ~ I regret that my genial friend, the distinguished Senator from According to the figures, the ore at the border cost the New Jersey [Mr. KEAN], has appeared in a new role. The smelter, upon his own valuation, only $8.50. amendment which he has offered does not propose free trade; There is one other item to be taken into consideration, and nor would it afford protection; but, in the language of the it has an influence in this case. The freight rate is $6.50 a ton Good Book, it is neither hot nor cold, offering, as it does, the for shipping zinc ore from any points of shipment in Mexico to l munificent sum-I will not go through with all the figures before the smelter in Oklahoma or Kansas. The railroads have not me-of 50 cents a ton for certain grades of ore. been idle. The annual shipments, according to the May figures, Mr. KEAN. It is $4 for the Missouri ore. are 223,020 tons. Multiply that by $6.50, and, if_my computation Mr. WARNER. Fout; dollars-most generous! But the Sena is correct, you have the comfortnble sum paid to the lines of tor must know that no ore of that grade is imported. If there railroad for freight upon that ore of $1,449,000. I say to you,. is a State in this Union that has its industries protected, New Senators, this freight rate of $6.50 will not be maintained. The Jersey is that State. I am not here to complain of that; I am railways will want this long haul, and they will adjust their not here to complain because the industry of any State in this rates to meet changed conditions so as not to lose this business. Union is protected, but I am here to demand that no industry I have no complaint to make of anything. I would have pre in my State be penalized because it comes in confiict with ferred the 1-cent rate. But I was looking, possibly, at one in the oxide interest of New Jersey or the galvanized-iron in terest too much, just as a lawyer in trying a case differs from terests of Ohio or any other State. I think we have a right to the judge upon the bench. ask for imposition on imported ·zinc ore of a duty that will The committee investigated the entire question, consulted with equalize the wage scale in the zinc mines of the United States the oxide people, the smelters, the producers, and the importers with that in the mines of :Mexico-the rule of protection that of copper, and came to the conclusion as reported here. Perhaps has been our guide in determining the rate of duty applied to I ought to say that I am for a rate of 1 cent or nothing; uut I other industries affected by the pending bill. am here to-day to say that I believe the adju tment made of I had laid out a good many papers here for a set speech, with this question by the Committee on Finance will not injure any statistics, but, if you will take my word for it without the sta American mine or industry, but will preserve to the American tistics, I think it can be absolutely demonstrated that the duty miner the wage advantage which he now possesses, and ! shall of 1 c.ent a pound vroposed by the committee is not an adequate therefore support the committee's amendment. .1909. CONGRESSIONAL RECORD-SENATE. . 33611 Mr. GUGGENHEIM. Mr. President, having the honor to rep- .l\fr. BURTON. Mr. President, I do not desire to detain the resent in part the State of Colorado, which is interested in this Senate for any length of time, but I am unwilling to see this schedule, I hope the Senate will not adopt the amendment pro- item go on the dutiable list without a further statement of the posed by the Senator from New Jersey [Mr. KEAN]. case. If zinc ore, under the circumstances now existing, should Colorado, as I previously stated, excluding the zinc-oxide prod- . be made dutiable, the Senate should impose a duty on copper uct of New Jersey, is the second largest producer of.zinc ores in ore, on tin ore, even on gold and silver ore. If any Senator votes the United States. Having had some personal business expe- for this duty, I do not see how he can refuse to vote for a duty rience in the Republic of Mexico, residing some time there, also on cotton as well. having mined in that country up to a few years ago and know- With few exceptions, which have be~n named, the tariffs of ing the conditions prevailing, I trust that the producers of the 1846 and of 1857, this article has never been on the dutiable United States will not have to longer meet the keen competition list. In 1890, when the McKinley bill was framed, when the of the producers in the Republic of Mexico. price of ore was $20.90, it needed no protection. In 1894, when The Senator from New Jersey has made the statement that the price had fallen to $13.60, it obtained no protection. In 1897, heretofore no duty has been imposed on zinc ores. That is true; when the price was $22.28, it needed no protection. · but it has not been necessary to impose a duty on these ores up But now, when the price is almost exactly twice what it was to the present time. in 1897, the insistent demand is made that there must be a duty The zinc-ore shipments began coming from Mexico, as was of a cent a pound on the zinc contents of zinc ore. stated by the Senator from Missouri [Mr. WARNER], in 1004, I make bold to say that the imposition of such a duty would reaching a point when, in 1907, they amounted for that year to help no one and would seriously injure various lines of industry. something like 110,000 tons. i.- There is a principle which has been intimated, if not boldly From what I Jn1ow of mining conditions in Mexico, its pr~ advocated, this afternooon, to which I certainly can not give ducers can just as readily ship 250,000 to 300,000 tons of or acceptance, and I think no ·one else should. It is that in framing annually from that Republic. Knowing mining conditions in a tariff bill you must arrange your schedules so as to enable the West, due in part to the higher wages we pay the miners the leanest and poorest mine to do business-not the best mine, in the mining of zinc ores, which are the same wages paid as not the average mine, but that mine which would not naturally in the mining of lead ores, I know such importations would be worked in any country and perhaps exists only in the be a menace before long and would probably close a great imagination 9f some promoter. ' many zinc properties in the Rocky Mountain mining region if If these mines were profitable nine years ago, in 1900, at we do not impose a duty sufficient at least to protect the inter- ~26.50; eight years ago, in 1901, at the price of $24.21, why ests of the American producer and enable him to continue do they need protection now at the price of $45? The plain paying the present wage schedule, which at the best is not too ~reason is, as I stated in my remarks made earlier in the day, remunerative for the American miner. there has been a great increase in the manufacture of spelter Personally, I shou~d like to have seen the rate 1 cent per ttnd the products of zinc. ·we might as well elin:iinate al~ this pound on all grades of zinc ore, but as the Committee on confusion about the manufacturers of zinc oxide and the manu Finance have in their wisdom seen fit to make a slight reduc- facturers of spelter. It is a plain business or economic proposi· tion from the rate fixed by the House, I am willing to accept tion. Is the Senate willing to impose now practically for the the rate now offered, feeling that it will not work any great first time on another article of raw ·material a duty which it injury to the mining interests of the West. did not receive when the price was half what it is now, or The zinc industry in Colorado and in the Rocky Mountain sec- even less? , tion is in its infancy. It is not so in Missouri, for zinc ores In order to show the increased demand, I will read briefly have been mined there for a great many years. We were obliged from the Engineering and Mining Journal, a standard publica to take up the mining of zinc ores in Colorado and in the other tion, which has the confidence of all in the mining business. Rocky Mountain States on account of the low price of silver. In 1904 it says this of the situation at Joplin: Many silver mines have been closed beca.use of the low price, Even then, with the new smelters in the field for the product of the which at the present time is about 52 cents an ounce, a drop of Missouri mines, the output will barely meet the urgent demands of the 13 cents in the past two years. Now, I ask the Senate not to capacity of all the works drawing a supply from this district. menace our zinc industry, which is in its infancy, but to give A little further on it says: the State and the West all the protection to which they are As has been previously outlined in the Journal~ the output is insuffi justly entitled. cient to meet the demand of the increased smelting capacity drawing a Within a few years zinc smelters have been established in supply from this district, and in consequence the ore price has been Colorado. None had existed up to a few years ago;· neither about $4 per ton higher than the metal market for two months. had the magnetic separators been installed, which are develop In 1905 it said: ing the zinc industry very rapidly and extensively. Therefore The direct cause of this has been, of course, the insufficiency of the I want to say to those people now engaged in zinc smelting in Joplin ore supply to meet the present demand for spelter for consump lllinois, Kansas, Wisconsin, and elsewhere that they need not tion. fear that they will not obtain sufficient ores in this country. Again, in 1906: The ore exists. All we want is a chance to develop it. The It is to be feared that there will be a further falling off in the output only reason some of those smelters to-day are making the keen of zinc ore this year, even if the price continues high, for the reason and active fight to bring in the ores from Mexico practically that the new openings of ore are not compensating for the exhaustion free is the fact that they have gone to that Republic and made of the older mines. extensive and cheap contracts. Zinc ores exist there in large I would not wish to throw one obstacle in the way of the quantities, and as there are no zinc smelters and no home mar miners or others, for whom my friend the Senator from .Mis ket the American buyers have gone there and made advan souri has made such an appeal. But are they not prosperous tageous contracts. enough already? Is there any business in the country where It is therefore natural that they should be here to-day pro the price of the product has increased more than it has in this testing against even a slight ducy on zinc ores. If we are given instance? And it has increased by natural causes, by the a chance to develop the zinc industry in the Rocky Mountain added demand for the product. I submit it is hardly fair to region it will not be necessary for the Middle West smelters insinuate that there is a conspiracy on the part of those who to go to Mexico for ores, as they will be able to get all the neces obtain ores from .Mexico. They had no desire to go to Mexico ; sary ores in this country, and thereby enable us to build up our far from it. But the insufficiency of the supply of ores here home industry and also protect the American miner. made it necessary for them to go outside of the State and out The present contention of the smelting companies reminds me side of the United States to seek another supply. of the trouble that the Congress had in framing the tariff bills Mr. President, in any revision of the tariff it will be found of 1890 and 1894. The lead-smelter owners at that time made that one of the chief obstacles arises from existing duties on the statement that it was necessary to import lead ore from raw material. No one who looks at this question as a busi Mexico for fluxing purposes. It was then stated by the Amer ness propositio,n will deny that the added labor of the factory, ican producers that with a proper tariff there would be sufficient all the increased values given by labor, entitle the one who is lead ore produced in this country. That has proved to be the engaged in manufacturing to an additional duty. There is a fact, for the reasonable duty imposed then upon importations of difference between the duty on a lump of iron ore aR com lead ore bas stimulated lead-ore mining. I now make the state pared with that on a steel watch spring. The intervening rates ment unequivocally that such will be the result ju the zinc are determined according to the amount of labor applied and mining industry in this country if my appeal for a fair duty on the amount of capital invested. zinc ores is granted and Colorado and other Western States Now, when the basis-the raw material-carries a high duq. accorded their just rights. it is extremely difficult to reduce the succeeding rates. XLIV-211 3362 CONGRESSIONAL RECORD-SENATE. JUNE 16, I have sometimes said that the ta.riff on raw wool was the are controlled~ or largely controlled, by a monopoly. The mere sustaining arch of protection in this country. I think there :fact that a: gtven article may have been put on the free list are very few advocates on this floor of the removal or substan in one taritr law, or more than one tari.fl-law, or the mere fact tial reduction of the duties on wooL Why? Bee:aUBe it is so that a given article may have been on the dutiable· list in one general an interest in the country, because the farmer, the or more tariff- laws, is not of itself in either case a matter of manufacturer, and' all these varied lines of activity have ad particular importance. justed themselves to that duty. There may be at one time well-foun.ded reasons for putting The value of sheep, the value of land, all, in great degree, an article on the free list or for putting it on the dutiable list, depend upon the duty on wool. But so long as the present duty according to the circumstances existing at the time. At one on wool continues it will be extremely difficult, if not impossible, time the circumstances might be- sucll as naturally and properly to decrease the d11ty on woolen goods. to take a given article to the free list, while ten years later the For one I am decidedly opposed to bringing into the category conditions might be wholly changed, an the subterranean dungeons they make to mine the one metal protect, and nothing from which to exact a revenue. But con as they mine the other. ditions in that behalf have changed wonderfully within the last In the Joplin district lead and zinc are ordinarily taken from five or six years. Enormous zinc deposits have been recently the same mine and are afterwards separated. Now you give to discovered in Mexico, where they are cheaply mined, and large lead ore 1! cents duty per pound, while you propose to give to quantities of this Mexican ore are now being annually imported zinc ore more than a third less than that. The duty is a cent into the United States. The situation is wholly changed from and a half in the one case, and less than a cent in the other case. what it was a few years since. The lead situation and the zinc Mr. President, still greater quantities of lead are mined in situation in this respect are again identical. Now a tariff on the southeastern part of Missouri than in the southwestern, or zinc ore to produce a needed public revenue might be levied, , Joplin district. The lead ore taken from the mines of the Jop whereas ten years ago a tari:tr would have produced no revenue lin di~trict is of a higher grade than that mined in the south because then there were no importations. east. The Joplin product will run approximately from 70 to 80 Mr. President, the Senator from Ohio [Mr. BURTON], and th -per cent lead. Senator from New Jersey [l\fr. KEAN], who represent zinc manu Mr. SMOOT. Eighty per cent? facturers, said that the consumers of zinc ores went to Mexico Mr. STONE. I am informed it often runs from 75 to 80 per for supplies because they could not obtain enough to meet their cent lead in the Joplin mines. In the southet1.stern mines the demand at borne. That rests too much in mere assertion. I quantity of lead runs less to th~ t.on of ore.. . - . . conferred with numerous gentlemen who came here represent- Now sir here we find two mmmg propositions almost identi g both sides of this contention, many being com1tituents of cal in the ~ethod of operating, in the cost of operating, and in mine. Of course both sides had their personal and selfish in the value of production. Recent Joplin quotations gave the terests at heart. I have weighed what they said as well as I current price of a ton of Joplin zinc ore, estimated to contain could. One or two men talked to me who impressed me as be about 60 per cep.t of metal, at $38 to $39 per ton. At the same ing particularly fair and impartial. One of them is the presi time a ton of lead ore running at about 55 to 60 per cent of dent of the Granby Mining and Smelting Company, one of the metal was worth from $43 to $45 a ton. Joplin lead ore was oldest and strongest institutions of that kind in the Middle quoted higher than that. 1 West. This gentleman has had a long and varied experience · The Joplin ore is worth more because of its richness; but in this business. He has been a student of it and is familiar what I am b·ying to show is that if we compare the value of a with its -every detail. He is interested on a large scale both ton of lead ore to that of a ton of zinc ore, the two tons running in the mining and in the smelting of both lead and zinc. His about the same per cent of metal, the ton of lead ore will sell company has large investments in mining ~oth and in smelting for from $3 to $5 more than the ton of zinc ore; but after the both. With him I examined statistics he produced. On this two have been smelted, one put into lead bullion and the other particular question of American production and American con into spelter, the spelter will have a higher market value than sumption of zinc, he showed from authentic statistical data, this, the pig lead. among other things, that the total production of zinc in the After smelting the situation changes and the pig lead becomes United States in 1907 was 534,213 tons of ore. Calling this 50 less Yaluable than the zinc spelter, whereas the lead ore is more per cent zinc, with an extraction of 85 per cent, there was pro valuable than the zinc ore. That is due to the fact that it costs duced that year 227,040 tons of spelter against a consumption less to smelt the lead than it does to smelt the zinc, and there that year of 222,494 tons, which was the year of our largest con- is less of waste in smelting lead than zinc. sumption. · · . l\fr. President, I can not understand the theory upon which This calculation leaves out o:f consideration the New Jersey zinc company's zinc production from its New Jersey mine~. the Finance Committee or the Ways and Means Committee con-_ which amounted in 1907 to 368,710 tons of zinc ore. That, he structed these schedules. Dealing with two propositions so said, should be. eliminated in all fairness to the smelters, for but essentially the same, why should such a marked partiality be little of that production goes into the manufacture of spelter·; shown for the one over the other? the bulk going into zinc oxide, and the remainder being ex I do not know what influences operated to bring this about. ported. It cuts but little or no figure in this discussion and The lead trust permeates the whole country. It is very power should be eliminated. ful, and it ramifies everywhere. Years ago it succeeded in Mr. President, I believe that the amount of revenue that would putting this duty of 1! cents on lead and higher rates ~pon the be realized for our hard-pressed Treasury from a 1-cent flat manufactured products of lead; and now the controlling organi rate would be greater than would be derived from the graduated zation in this zinc industry contends here first for free zinc rate proposed by the committee; and when we take that into ore, and failing in that, advocates an amendment which ap consideration in connection with the other considerations to proximates as nearly as a duty could to the level of free ores. which I have invited attention, it seems to me that the House Mr. President, I am opposed to that sort of discrimination. proposition is in every way preferable. If we are to take zinc ore out of the free list and put it on the Mr. President, since we are to have these duties on both lead dutiable list, and I think zinc ought to be made dutiable for the and zinc, speaking for a constituency interested in both, I in revenue it would produce if for nothing else, it ought to be put sist on equality of treatment in whatever you do, and I shall on a par with lead ore when duties are laid. There is no stand for that which approaches nearest to that level. I do justification for this wide and gross discrimination. I do not not think it right or fair or just to make a discrimination care on what theory a tariff law is made, whether primarily for against the zinc miners in favor of the lead miners, or in favor protection or for revenue, these two propositions should be of the zinc miners against the lead miners. I want to see both treated substantially alike. treated alike and with absolute impartiality. So far as the l\fr. President, I am going to vote for the House proposition, ultimate consumers are concerned, the result will be the same for as between the two I think it in every way the better one. whether you put on the one duty or the other. The form in Not only is it better in itself, but it would be an easier law to which zinc reaches them is in paints, galvanized wire, zinc administer. To prevent fraud in administration,'the fiat rate is sheets, and the like. These manufactured products are highly infinitely better than the graduated rate. And I am going to protected, and most of them are controlled by monopolies. The .vote for the House rate because, under the circumstances of the same is true of lead and lead products. The price to the final case, I believe it would produce a larger revenue for the relief consumer of these commodities will not, under existing economic of the Treasury, now sorely distressed. I am a Democrat, in conditions, be affected. From this point of view, the great ques the minority, but still I am a Senator, interested in sensible tion is whether these manufacturing monopolies shall have free legislation. Besides, the lower rate proposed for the lower raw materials on the one hand and tariff rates so high as to grades of ore is not in the public interest, but in the interest of protect their products from foreign competition on the other the New Jersey zinc trust. hand; and that is a proposition wholly abhorrent to my sense of Years ago when a high duty was laid on lead ore it was done, justice and fair play. so it was said, to protect our lead mines against foreign compe Mr. LA FOLLETTE. Mr. President, as I am confident that tition. If so, then where did that competition come from? From the amendment offered by the committee will be adopted, I Mexico, chiefly. Mr. President, if tl;lat was sound doctrine, then ; shall take the time of the Senate to submit a brief statement. .the economic conditions now prevailing mn.ke that old reason-I The Senator from Ohio [Mr. BURTON] argued strongly against ii.Ilg as applicable to zinc ore as to lead ore. I do not believe inf the duty upon the ground that when the value of the ore was protection per se, but I do think that even Republicans shou1a.; very much· less than at present no duty was required or sought. show some respect for consistency. Ten years ago and less no Why, sir, at that time there were no importations, and con zinc ore was imported into this country. Then a tariff on zin sequently no reason to ask Congress for a protective duty. ,would have made no difference, either as a matter of protection "'" I know something of the cost of mining zinc ore ill Wiscon or of revenue. As no ore was imported, there :was nothing to sin. ,With respect to Jop~in, the cost of mining ore 1s fully 3364 .CONG,RESSION AL REOORD-.· SENATE. 'JUNE .16, .stated in the testimony taken by the Committee on Ways and -to kno-w .how the reductions which are .now pro.posed affect ihe ~Ien.n::;. general increase that I have mentioned. · A few years ago the cost of :mining Jn ·wisconsin ·was very .Mr. ALDRIOH. l\fr. :President, the -reductions have been :ill much le.as than it is now. The mining was :near -the surface. ..At along the .line, as the Senator perha_ps llas seen from the state .:present it i from 100 to 200 feet below the -surface, and in ment which was f1ITilished-to him. 1 should think that the rates going down i:he miners encounter heavy water, wllich makes the :now before the ·Senate are not much, if any., in cexcess of the mining very expensive. present law. The Senator .from Utah [ Ir. SMOOT] has a de The duty ·should b.e based on the difference in-the cost of pro tailed ·statement of the Teductions, which he can submit to the ducing in this country and Mexico. The cost of production in Senate. Of cour e, just what the effect will be no -0ne can pr Company ; Continental Silk Mills ; Aronsohn Bloom NoTE.-The proposed tariff reads: " Weighing not less than 2 ounces Silk Company; Aronsohn Brothers Silk Company, B. per square yard." But we beg to state that the above goods used for Aronsohn, treasurer ; Cedar Clitf Silk Company ; Hale umbrellas all weigh from 2 to 8 ounces per square yard. don Ta~stry Company; Quakertown Silk Company, Very respectfully, yours, per W. Little, president; W. Little & Co., Paterson,. Allison & Lamson, 405 Broadway, New York City; Gans N. J.; John Schwartz, jr.,. Silk Company, Paterson, Brothers, Baltimore, Md.; B. 0. Wright & Co., 385 N. J.; Demarest Silk Company, G. W. E. Demarest,. Broadway, New York City; Rose Brothers & Co., treasurer ; Reiling & Schoen. Lancaster, Pa. ; Simons & McGill, 58 White street, New York City; Arnold, Schiff & Co., 107-113 Mr. ALDRICH. On page 87, in line 4, after the word "in Franklin street, New York City; United States Um cluding," in paragraph 2 9- brella Company, Elizabethport, N. J. ; Anton Russy & Co., Excelsior Umbrella Manufacturing Company, The PRESIDING OFFICER. Will the Senator from Rhode Boston, Mass.; William H. Rich & Son, New York Island kindly indicate to the Secretary the paragraphs covered City; Kiel & Arthe Company, Edward Kiel, president, in the silk schedule as approved? New York City; Stoopack & Garbat, New York City; Connor Wallace & Co., New York City; Suplee, Reeves l\1r. ALDRICH. I have indicated them. Whlting Company, F. F. Mitchell, treasurer, New The SECRETARY. From paragraph 392 to paragraph 401, in York and Philadelphia; James Stokley & Co., Phila clusive. delphia; W. N. Stevenson & Co., New York City; Mr. DOLLIVER. Mr. President-- Hulse Brothers & Daniel Company, New York C1ty; L. P. Henryson & Co., New York City; Miller Broth The PRESIDING OFFICER. Does the Senator from Rhode ers & Co., New York City; Peltz & Biderman, New Island yield to the Senator from Iowa? York City; Kraut & Finver Brothers, New York City; Mr. ALDRICH. I do. I. H. Weinberg & Co., New York City; Kreis & Hub bard, Chicago, Ill. ; E. C. Kuhn, Cincinnati, Ohio; Hull l\Ir. DOLLIVER. Before the silk schedule is disposed of, I Brothers Umbrella Company, Toledo, Ohio; J. Laza aesire to call the attention of the chairman of the committee to rus & Co., New Yor'k City; Herman Bamberger, a: memorial, in the nature of a complaint, against the rates pro New York City ; Bogen. Berman. & Co., New York Clty; Louis Heynmari & Brns-., New York City; W. W. posed between lines 12 and 23 of the committee amendment as Harrison Company~ New York City; John H. Maloy, printed, beginning with the words: New York City; Moxey, Howlett & Co., Philadelphia, Pa. ; Ades Brothers, Baltimore~ Md. ; William H. If weighing more than 2 ounces, but not more than 8 ounces per Beehler, Baltimore. Md. ; Polan, Katz & Co., Baltl square yard-- more, :Md. The memorial to which I desire to call the Senator's atten- . Mr. GORE. Mr. Presi.dent-- tion is a memorial of a large number of people engaged in The PRESIDING OFFICER. Does the Senato.r from Rhode manufacturing umbrellas. They claim that these rates are Island yield to the Senator from Oklahoma? substantial increases over the existing tariff. It appears. also, Mr. ALDRICH. For what purpose? that the rates are very much higher in this cloth than the Mr. GORE. Mr. President, I merely wish to say, before we rates provided for on the finished. product, I think the fin finally pass from the silk schedule, that I desire to offer an ished product being assessed at 45 per cent as a nonenumeraterl. amendment in the form of an additional paragraph. manufacture of silk; but these rates running up as high as Mr. ALDRICH. The Senator from Oklahoma might as well 80 per cent. they seem to think that is not a proper adjustment. offer it now as at any other time.. l\Ir. ALDRICH. If the Senator from Iowa will send the me 1\fr. GORE. Very well. I offer the amendment which I send morial which he has to the committee we will examine the subject. to the desk. Mr. SMOOT. I call the attention of the Senator now to the The VICE-PRESIDENT. The amendment offered by the Sen fact that the rates on these very silks have been reduced. We ator from Oklahoma will be stated. have reduced the rates from $3.20 to $2.75 and from_ $2.50 to The SECRETARY. It is proposed to insert as a new paragraph $2 in our proposed amendment, those being reductions from the following: the rates fixed in the House bill. -. All silks manufactured or otherwise imported into the United lllr. ALDRICH. I think the memorial which the Senator States in pursuance of" this act which shall contain more than 20 per has is based upon the rates as originally reported. cent of other substances than pure silk shall be subjected to an addi tional duty amounting to three times the duty imposed by this act.. and l\fr. DOLLIVER. It is. all silks fabricated or manufactured in the United States which shall · l\fr. ALDRICH. If the Senator will give us the memorial, contain more than. 20 per cent of other- substances than pure Bilk shall we will examine it. be subjected to an excise tax amounting to three times the duty imvosed Mr. DOLLIVER. The rates which are proposed in the last by this act on imported silks of the same character and description. / committee amendment for the whole schedule are in excess of .Mr. GORE. Mr. President, I shall say but a word in regard the existing rates. to this amendment. I feel sure that it will be voted down; but l\fr. ALDRICH. ~he committee will make an examination my object is to call attention to the: fact th.at silk imported and and see. IIillnufactured in this country contains sometimes as much as 63 Mr. DOLLIVER. I shall be glad to have this memorial per cent of other substances than silk. The silks p-urchased by printed in the RECORD, and to have the committee lcrok into the our grandmothers lasted for a generation; the silks now pur matter. chased by their granddaughters hardly last for a single season. Mr. ALDRICH. The committee will examine it. The silkworm, however, is as good a spinner as in ancient The PRESIDING OFFICER. In the absence of objection, times. The fault i.S attributable- to the- weaver of the present the memorial will be printed in the REoonD. times; it is attributable to the manufacturer. · The memorial referred to is as follows: The same spirit that has changed the weights in our sugar, NEW YORK, March, 11109. the same spirit which necessitated the enaetment of a pm·e-food Hon. s. E. PAYNE, law to prevent the adulteration of food, has adulterated silks in Ohatrtnan of the Oomtnittee on. Ways and Mea;ng, this country. Mr. President, I hold in my hand a test made by Washingto1t,. D. 0. the Bureau of: Standards of the United States. I hold here DEAR Sm: The undersigned umbrella manufacturers of the United States hereby beg to strongly protest against the proposed increase in [exhibiting] a sample of black silk. The analysis and test cf the pound duty on silk and c<>tton-mlxed goods used in the manufacture this black silk discloses that there is only 37 per cent of real vf umbrellas. silk in the finished product.. A great port4>n of the adulterant As the present specific tariff rates are prohibitive on the lower grades, the increase proposed in the schedule presented by the commlttee of the is tin oxide, gum, and grease of various kinds. When the bonnie Silk A sociatioll' ot America would seriously atrect the better grades and brides of the country are rustling in imaginary silk, in fact it interfere with <>ur business to a. very large extent. is tin which is affording the music which inspires their bridal Schedule L.-Woven fabrics in the piece, weighing not less than 1! mai·ch. [Laughter.] ounces and not over 8 ounces per square yard, if containing not more I think the practice ought to be stopped. and I have proposed than 20 per cent .in weight o! sllk- an amendment which will limit adulterations to not exceeding Present tariff: Cents. 20 per cent. I believe that usually there is about 10 per cent If in the gum, per pound------50 water in silk; but I desire to cut out this oxide of tin and these It dyed in the piece, per pound------60 various other substances, which are introduced into the silk to Propo ed tariff : If in the gum, per pound------57?;. give it weight and apparent substance. It is purely a fraud on If dyed in the piece, per pound------70 the purchaser,, and explains why silk now lasts 89 brief a time. If containing over 20 per cent and not over 30 per cent in weight It is a cheat which chivalry on the part of manhood ought to of silk- Present tariff : . _ Cents_ stop in behalf of beauty. I trust that the gallantry 3368 CONGRESSIONAL RECORD-SENATE. JUNE 16, ad valorem equivalents, and the rates which we petition to be adopted, Mr. SMOOT. Oh, very strong competition, and of late with corresponding ad valorem equivalents: · years the importations have increased several hundred times over. Rates Equiv- Equiv- Ding- Equiv- Mr. BACON. Then it must be that these are bands for do- which alent Senate alent ley alent mestic cigars and are so represented. we ad va- bill. ad va- ad va- ask. lorem. lorem. blll. lorem. Mr; ·SMOOT. That is what I said before. Mr: BACON. That is the point I was after. ------Mr. LODGE. That is it. Gents. Per ct. Gents. Per ct. Gents. Per ct. Mr. ALDRICH. I send to the desk and ask to have read a Labels, less than 8 colors ______· 15 34i 25 5'[i 20 46 Bands, less than 8 colors ______20 23 30 u~ 20 23 proposed amendment to paragraph 408. After it is read, I will Labels, 8 or more colors ______25 '18 30 57 30 57 ask that it may go over. Bands, 8 or more colors ______30 33 S5 88! 30 33 Mr. SCOTT. Mr. Chairman, will you not have it printed? Labels, metal leaf______40 40 50 50 50 50 Bands, metal leaf______45 30 55 36 ro 33 Mr. ALDRICH. Let it be -printed in the RECORD and as an amendment. The SECRETARY. In lieu of the substitute for paragraph 408 Bronze to be counted as two colors, as under the Dingley tari1l'. insert: · There are 5,265 cigar factories in New York State, according to the report of the Commissioner of Internal Revenue for 1908, manufactur 408. Pictures, calendars, cards, labels, fiaps, cigar bands, placards, ing more than a billion and a half of cigars, besides a large number of and other articles, composed wholly or in chief. value of. paper litho cigar-box factories, and these factories employ many thousands of work graphically printed in whole or in part f.rom stone, metal, or material men. You will therefore see that the interest of New York State in other than gelatin (except boxes, views of American scenery or objects, this matter is a very large one and entitled to protection from the and music, and illustrations when forming part of a periodical or rapacious demands of a few lithographic factories. newspaper, or of. bound or unbound books, accompanying the same, not We beg that you will take up this question and prevent the Repub specially provided tor In this section), shall pay duty at the following lican party from making a mistake which will cost it many thousands of rates: Labels and flaps, printed in less than eight colors (bronze votes. This petition, owing to the shortness of. time still remaining for printing to be counted a.s two colors), but not printed in whole or in , action, is signed only by a number of. representative firms, but your part in metal leaf., 20 cents Ber pound ; cigar bands of. the same num assistance is asked f.or in the interest of all the cigar and cigar-box ber of. colors and printings, 3 cents per pound ; labels and fiaps printed manufacturers of the State of. New York. in eight or more colors, but not printed in whole or in part in metal Fitzpatrick & Draper, O'Connor & Elkenburgh, J. H. leaf., 30 cents per pound; cigar bands of. the same number of. colors and Broderick, J. J. Conway Tobacco Company, James printings, 40 cents per pound; labels and fiaps, printed in whole or in McGahan & Brother, Quinn Brothers, Hess Brothers, part in metal leaf., 1>0 cents per pound; cigar bands, printed in whole Troy, N. Y. ; J. W. Stevens, Metzner Brothers, or in part in metal leaf., 51> cents per pound; all labels, flaps, and bands B. Payn's Sons' Tobacco Company, i,awrence Goldberg, not exceeding 10 square inches cutting size In dimensions, if. embossed Dearstyno Brothers Tobacco Company, George B. or die cut,. shall pay the same rate of duty as hereinbef.ore provided Russell & Sons, John A. Davison Cigar Box Factory, for cigar bands of. the same number of colors and printings (but no White Brothers, Albany, N. Y. extra duty shall be assessed on labels, flaps, and bands for embossing or die cutting) ; booklets, 7 cents per ·pound ; books of. paper or other Mr. SMOOT. The amendment that will be offered by the com material for children's use, not exceeding In weight 24 ounces each, 6 cents per pound; fashion magazines or periodicals, printed in whole mittee, so far as the 1abels and flaps are concerned, will be the or in part by lithographic process, or decorated by hand, 8 cents old Dingley rate. But as far as the bands are concerned, there per pound; booklets, decorated in whole or in part by hand or by is an advance upon them; and I will state also that the cigar spraying, whether or not lithographed, 15 cents per pound ; decal comanias in ceramic colors, weighing not over 100 pounds per thousand makers themselves, or repre~entatives from the cigar makers, sheets 20 by 30 inches i.n dimensions, 70 ce.nts per pound and 15 per admitted that the rate upon the bands was too low. The impor cent ad valorem; weighing over 100 pounds per thousand sheets 20 tations show that. by 30 inches in dimensions, 22 cents per pou.nd and 15 per cent ad valorem ; if backed with metal leaf, 65 cl!nts per pound ; all other There is another thing which must be taken into consideration, decalcomanias, except toy decalcomanias, 40 cents per pou.nd; but all and that is this: When the Jaw was enacted, the bands came in the foregoing, If. containing less than one-half of 1 inch margin on in a square shape. The white part of the band was cut out or any side, shall pay In addition to the rates herein provided, 10 per cent ad valorem; all other articles than those hereinbefore specifically cut away from the printed part. But now they print them in the provided for in this paragraph, not exceeding eight one-thousandths of. figure in the band and cut every particle of the weight of the 1 inch in thickness, 20 cents per pound ; exceeding eight and not ex paper outside of just the printed or lithographed. part, and the ceeding twenty one-thousandths of. 1 inch in thickness, and less than 35 square inches cutting size in dimensions, 8~ cents per pound ; ex weight of the band has been -reduced almost half. It is for that ceeding 35 square inches cutting size in dimensions, 8 cents per pound, reason that the cigar makers themselves admit that the rate is and in addition thereto on all of said articles exceeding eight and not too low, and that is the reason why we advance the rate upon exceeding twenty one_-thousandths of 1 inch in thickness, if. either dle cut or embossed, one-half of 1 cent pe1· pou.nd; if. both die cut and the bands. But on the flaps and labels the rates are the same as embossed, 1 cent per pound ; exceeding twe.nty one-thousandths of 1 the Dingley rate. inch in thickness, 6 cents per pound : Provide Ta the Senate: Mr. Hill to ~Ir. Knox,. No. 264, AprlL 13, 1909. Mr. Hill to Mr. Knox, No. 266, April 13, 1909. In response to the Senate's resolution of June 4, 19091 re Count von Bernstorff to Mr. Knox, Aprfl 23, 1.909. questing the President, ~·it not incompatible in his judgment :Mr. Wilson to Count von Bernstorff, No. 48, April 28, rnov. l\Ir.- Wilson to Mr. Bill, No~ 153, Aprih 28, 1909. with the public interest, to transmit to the Senate c:opies of all Mr.. Rill to Mr. Knox, ~lay 6', 1909. the correspondence which pas: ed bet"-een the Department of State and the German Government, ar between any representa In repry ref.er to file No. 13911. tive of the United States and officiuI of the German Govern INDUS'I!IUAL. CONDITIONS r.f EOREJIG~ COUN'J:RrES. ment, having relation to the report upon German manuta:etures DEPA.RT;\lENT OF STATE., furnished by the German Gozernment to the· United States;" Washington, June 15, 1!J08. f frarismit herewith a report by the Acting Secretary of State, To th.~ Am.ericmi, Co718ular Offe,aers. with accompanying papets. Gn:XTLEliE~ : The Commftte~ on Ways and Means o:f the House of Representatives ha:ving beeu authorized to sit during th~ rec s of. Con WM. IL TAFT. gress and to gather such information, through government a.gents or THE WH1TE HOUSE, June 16, 1909. otherwise as to it may seem fit looking. toward the preparation of n: bUl for the revision of the tariff of the United· States, you :rre instructed, at ttre i:·eClllest of its- clmirma'Il, the Hon. SEn.E:'ro EI .EitYNE, JU.ember of The PRESIDENT: Congress, to pr·epare. and transmit, a.t the earliest practicable date~ a The undersigned, Acting Secr'&ary of State, tO' whom wa:s referred report, in duplfcate, containing answers to the following questions: the :i:es-ofntion adopted by the Senate on June 4, 1909, i·equest:ing the r. ~DUSTBIES .. President, if not incompatible, in. his jlld~11t, with the pubHe in- (1) Describe briefly the principal industries of your respective dis- terest, " to transmit to the Senate copies of ali. the correspondence· which tricts specifying, in the case of manufactures-, the- kind of goods man passed between the Department of State and the German Governme!nt, u:facttir-ed ; in. a.grtculture; the' a-rtieles- p:r.oduced.~ Ln.. mining, th pt'odu.ct 01· between any representative of the Umted States and oilici:l.ls of the mined, etc. German Government, having. relation to' the rel)ort upon Gexman manu- (2) Principal foreign markets of such products as a.re exported in factures furnished by the German Government. to the United Sta.tes," considerreble quantities from ;your- district · . . has the honor to submit herewith the copies requested and to report (3 ) Sources of raw materials· used by the manufactnring- industries as follows-; of your- district. Toward the end of the first session of the Sixtieth Congres-g; t:he ( 4) Mentio:Il any notewoi:thy changes toat have taken place in. the House of Representati.ves,. by resolution, authorized the Committee on various mannfa:cturlng- inclustrie:S' of- your- district since 1897, and ex- Ways and Means t'6 sit during the recess of Congress and to gather 1 · h such information through United States government agents or other· P am t e eauses. n. LABOR CONDITIONS. wise as it might see- fit looking . to· the preparation ot a bill !or the ' revision ot the tariff. (1} The department desires t6 obtrun the' pr-eTI.iling: rate O't ".V'age:s, On June. 1, 190&, the chairman of the Committee on Ways- and the hour or labor IfeT day, and th~ days usually worked per week,. in lleans addresfred the President in th·e follow~ term ·: the. occnp:ttfomr named in Schedttle A inelosed herewith. "It is the desire of the c:ommtttee to obtain fnformatton from the 'rhe informa:tlon. should be obtained from employers: directly or· fl'om various revresentatives abroad in regard to the cost o:f production, authentic statistical reports of the loculi.ty; and for the ye:a.r U)07 if including the price of labor, rates of interest,. and so forth, and the possible. commtttee wm be· very glaa to have the eoopeMition ot the State Care s-liould oe: taken th&t da:t:x are i:eported only for regular fourney: Department in order to obtain tb:i:9 information~ When reports are men in the trades to- which sueh term applies'. Fol" example, bakers received from the various represen.fatives of the Government abroad, (bread) should not include bakers' helpers, l:l.borers, :ipprentices. or it will be necessary to have. them tabruated. If these reports can any persons employed in a bakery who a.re not journeymen bakers. be placed· at the disposal of the committee as so-on as recei~ed, we Miners' laborers a:re caned. fo.r specially. Notes are desired concerning could then take measures for their tabulation1 and It ts desirabl~ that· fa:rm. laborers, statin~ the cl:OI>S tended and the kind o:t work done. Ex the committee be authorized to call upen any bo.rea'tl of the Department tended notes are desired foll. coife~ rice,. and sugar· raising. The rates of Commerce and Labor for thl!J purpose." · · stai:ed in tJie schedule pr-oper should be for ordinary farm labOr. tf The letter wa:s referred by- the- Pres-ident ttJ the S'1:!cretary of State, materially dHl'erent rates are paid accoi"dlng to tne- eason of th~ year, by whose direction a circular instructforr was prepaTed by the Bureau the fact hould: be noted_ ot Trade Relations of the Depa..t±ment of State, tn collabora'tion with The customary da.ys woTke-d peT week. are n.sked £0~ each occupatfon. the clerk of the Committee on Ways and :Means and the Bureau of The desire f$ to aseertafu tile extent. to which the1·e is no r.est day dnr- Labor 01' the Department of' Commerce and Labor; calling upon the ing the week. . consular. officers to prepare a.nd transmit at the. eartiest practicable Under " Hours worked per day " gtve the hours tL!m:aBy· wm:ked on date a report containing answers to certain questions concerning indus- the regular full day li shorte1· hours are worked on any day ot. the tries, labor conditions, <;:ost o:t production, prices, exports - ~o the United week-for example, Saturday-the facts should be clearly stated fn a States, and foreign tariffs. This- cirenlar, a copy of wfileli. is among note. " llours woTked " should be interpreted as in the United States, the papers sabmitted, was not conftned to the consular· o:ffieers in Ger- i. ~.. the hours the employees a.re on. duty and pr-esmnably ar worli:. many, but was sent to all the principal American. consular officers , 1\feal,. lunch, ol' general resting time should. not be included. as hours ·throughout· the world. The reportg weTE! sent as received to the Com- worked~ mittee on Ways and Means of the House of Representatives-. Under " Rate of· Wa'ges or earnings on fllll trme 0 enter- the prevailing It appearing from a report fr-om the. consul-general at Berlin that, wages: fot· a tn:n day's work> ot.. a full week's: work.,. hrserting the woxd with. re-spect to Germany, so much o!.. the information sought by the day or week a;fter the. word " per." rr there is a range ot va.tes from:. a Ways e:n·d' Means Committee as related- to cost of production cou:ld best general low ra.te to a general high rate, the low and hlg.b. rates may oe be obtained through the diplomatic channel, the American ambas a:dor given, but they should be foHowed always- by the a:vera:gc rrte ;- that: is, at Berlin, acting under instructions. from the department, presented the the rate obtained by adding rates o'!. ~several employee·s and dlvi:dlng matter to the GeTman Government. That Government res1.1onded fa7or- the sum by the number of employees. Extreme hi"'n and low rates ably, and obtained the information on the understanding that the names "which are exceptional rather' than repc.esentatlve should noi: be entered of the' individual establishments tornisfiing it would nat be dlsclosed as high and low rate!f. and that the information would not be used for admfnistr:i:Uve: purposes. Perquisites and gratntti.e::r allowed "in addition. to- rates s-hown hould The inform::ition thus courteously furnished by the Gel"JDan Govern- be set to1-tb. folly in note , with estimates as to- their va.lne. ment was received by the department in duplicate, one set through the (2) To wfiat extent is (a) female labor and (b) child labor employed American ambassador at Berlin and: the other through the German :im- in the different manutaetru:tng industrie o-1 yom dlsttict ~ bassador at Wa hington. '.J7he department wa:s tlrus- enabled to supply a (3) Describe briefly the general, condition of the working people in set not only to the Committee on. Ways :ind Mean.st bot ro the· Senate' your district; cost and style of living; their homes, feed, and clothes, Corn.n;iitte~ on Fin.ance a!f well. . and their ability to accumul::rte something. for old age oi: sicknes-s. The ~his was the situation ~hen, .l'epared or preS' ·ved ; hair : hats ; india· wa~hington, June 1.f, 1D09: rubber goods; iron ore; iron, manufactureg of-pig fron, bar iron, steel !i11e~~s ~1j~~:rr~1f· r!!t~ ~! ~e~~!l, 1 a~~ ~e:16:;~s, I~~i1e7. a~~chiiJ1£~; :GIST' OF' l'A.PERi:f. matting; daixy pToducf.s--buttu cheese < musical fustmments; oil Circular instruction to American consular officei-s, June 15', 1908. cloths; paint; napet·; pencils; perf1I1Dery; rice milling;. shoo ; siik l\!r. Thacka:r.lt. ~co11S.ul-gene11ai at Berl-in) to Mr. Bacon, No; 178,. throwing;. silk goods;. stone quarrying; liquors-malt liquors, dlstilled 1 liquors,. wines~ sugar- ugar making, su!?lll" refinin"'; tobacco-tobacco, Se~J~i~~e i~ ~~. ·cortefyou, October- 31, 1.90 . chewing and smoking, cigars ~ toys ; vegetables, prepm::.ed oL" i;ireserved; Mr. C~rtel:you to Mr. RooT, Novem0el" 9, 190 . wood, manufactures of-log cutting, lumber mills, wood pulp ; woofen Mr. Bacon to Mr. Hill, Novem~ 18, 1908. and worsted goods, an:d wool eoY.i:ing. . Mr •. Guenther (consul-general at Frankfort)' to Mr-. Bac:on,. November You a:re instructed to obtain this information.. from the producing 28 1908. establishments- in your district or from an1r othe sources- that may be i.Ir. ROOT to Mr. Guenther, No. 305, Deeernber- 181 UJQS. available to you. Blank copies· ot Schedule B 1tre inelasecl herewith, Mr. Hill to Mr. Roo'l', NO'. 164,. December 11, 1908. upon which you are instructed to make returns·. Mr.. Hill to Mr. Knoxr No, 2o!z. March 27, 1909'.- . . The name. of the establishment will not be: disclosed. It is neetled Count voII Bernstortr to Ml'. K.Ilorr March 31,. 1909. only- tor ldentifica:tfon In: crure of further corresponderrce. The article 1909. CONGRESSIONAL RECORD-SENATE. 3371 should be stated specifically; as, ladles' fine shoes, unbleached cotton sheetings, Bessemer steel rails. . _ Rates of. The cost may be shown in some cases for one article, but generally It Days Hours wages or will be given for a quantity, as 1 ton (2,240 lbs.}, 1 gross, 1,000 yards, etc. worked worked earnings on Care should be taken to describe each article accurately and com Occupation. Sex. per per full time. pletely, in order that it may be recognized from the description. Con week. day. (Note all sideration should be given to quality, style, slze finish, fineness of gratuities.) goods, etc. For example, in textiles give the numoer1 of yarn used In weft and warp, the picks to the inch of warp and weft, weight per square yard and grade of material used. When practicable, submit a sample or a picture of the article produced. Bakers, bread.------""-- M. In the best regulated establishments cost sheets are frequently worked Building trades: out. Such sheets should be Inquired for and used in preparing the Brickrayers..------M. schedules. Carpenters ______------M. Printed or written matter available relating to the subject should be Laborers. -_--- -·------M. submitted with the schedules. Painters------M. When single articles are produced the getting of cost should be easy. Plumbers.. -----·------M. When several articles are being produced at the same time in an estab Stonecutters------M. lishment the task will be more d.i11icult, and a prorated estimate may Cigar makers------· M. have to be made for the particular article reported. Clothing factory: The year for which the figures are given should be stated, preferably Sewers, band------·---- F. the latest for which data are available. Sewing-machine operators------·· F. The period on which the cost is based should be, if possible, not less Ooal miners------M. than three months ; it need not exceed one year. Coal miners' laborers------M. The two items a and g are vital and without replles thereto these Comvositors------M. schedules will be of no value ; b to f may be combined if not obtainable Farm laborers•------{ ~.. . separately ; h, t, and ; are wanted, if obtainable. The cost of material means the cost as delivered at the establish Glass blowers: ment. Flint bottle.------· M. The cost shown at g means the money actually expended in produc Green bottle------M. ing the article itself. The total at g should show what the article Window------M. could be. sold for at the establishment without either profit or loss on Horseshoers------M. the items named from a to f. Iron blowers, Bessemer------· M. The grand total at k should not include profit or loss, but show only Iron heaters, bar iron______M. cost for items a to f and h to j. Iron rollers: In one factory material may be received in more finished form than Bar iron------M. another. The facts should be set forth under description of material, Steel rail------M. as one factory making cotton cloth may start from the bale of cotton, Iron-vessel men, Bessemer______M. the other may buy its yarn and weave only. The quality of the ma Kettle men, brewery______M. terial should be described as fully as the article produced. It is de Jigger men, votterY------· M. sired that your own statement shall accompany each schedule, giving Laborers on 1treet, hired by city______M. your opinion as to the probable correctness of the statements on the Lumber: schedule. Chovpers and sawYers in forest____ M. In filling out the schedule great care should be exercised to observe Sawyers, lumber mllL------M. that the cost of items in Inquiry 8 be for the quantity of the articles Machinery,Blacksmiths etc.: ______:.______M. stated In inquiry 5. For example, if inquiry 5 reports 1,000 yards .for which cost is shown, Item a under inquiry 8 should report the cost of Iron molders--·------···------M. the labor in producing 1,000 yards. Machinists------·------.. M. Paper mill: .... IV. PRICES. Beater tenders------· M. Paper-machine tenders.. ____. ______M. (1) Pr1ces at date of your report in the currency of the country and ln the United States equivalents of the necessaries of life and of in Tanyard hands, tannery______M. dustry, such as articles of clothing, tools and implements, hardware, Pattern makers, wood------· M. drugs and medicines, and raw materials for manufacture. Sho~: (2) I! these prices have been aft'ected appreciably by the tarilfs of Closers on b------·---·--·------M. the country in the last few years enumerate the articles and state to UJ;>per cutters------M. what extent prices have been aft'ected. Silk culture______{ ~.. V. EXPORTS TO THE UNITED STATES. Textiles: (1) Give comparative Itemized statement of quantities and values of Cotton svinners------~.. declared exports of merchandise from your district to the United States for the calendar years 1897 and 1907, showing the Increase or decrease Silk svinners------~: in any particular item. (2) What erfect, if any, has the present tariff of the United States Woolen svinners------· ~: bad upon exportations from your district to the United States? (3) Are there any items in the list of declared exports for 1907 that Cotton weavers.·------·-·--··---· ~.. would be increased to any considerable extent, in your opinion, it the existing American duties thereon were reduced? Silk weavers------·--··-·------~ .. ( 4) Are there any articles of merchandise not appearing in the llst of declared exports from your district which would probably be exported Woolen weavers------· ~: to the United States it the American duties were lower than at present? Woodworking-machine tenders.·------· M. VI. FOREIGN TAIUFFS. (1) Transmit a copy of the complete customs tarift of the country in 11 See Instruction as to this occupation. which you are stationed, with all amendments up to date, including 11 Sewing linings to uppers, machine work. export duties, if any, as well as import duties, the customs regulations, and any bounty legislation relating to export of domestic products in the country of your official residence. This material mny be sent as SCHEDULE B. printed in the language of the country. In case an accurate English COST OF PRODUCTION. translation exists, it should be sent with the original text. Name of officer: ----- (2) Transmit a complete statement ot the octrol and other local Official title : ------. charges, other than regular customs duties, imposed on goods o! foreign Station: ------. origin entering into consumption In your district. 1. Country: ---. ln order to avoid needless duplication, the information relative to 2. Locality: ---. foreign tarirfs need be furnished only by the consul-general or consul 3. Name of establishment : stationed at the capital of each .country or colony, or, in the absence of 4. Article produced : ---. such officer, by the consul-general or consul stationed at the principal 5. Quantity of article for which cost ls shown : commercial city of the country or colony. 6. Complete description of article : ---. The department desires that your report In answer to this circular 7. Year and length of period on which cost ls based: ---. instruction shall present a comprehensive, clear, and accurate picture of 8. Items of cost : ---. the general industrial conditions prevalling in your district. It should be transmitted to the department as soon as practicable in order that it may be placed at the disposition of the Committee on Ways and Means Oost for quantity in time to afford opportunity for study and analysis of the material. . named in question 5. prior to the opening of the Congress In December, 1908. I ·am, gentlemen, I }"our obedient servant (for the Secretary of State), WILBUR J. CARR~ Ohief Clerk. Inclosures: Schedules. m ( d) .e~!Fuel or water~d~~~~:::=:::::::::::::::::~::::::::::d:::::::::::======-= power (specify which)------1------SCHEDULE A. WAGES AND HOURS OF LABOR. (h)m Interest on investment (-per cent) ______J ______Name of officer : ------. ~:~::::~:;~;:=;:~=~::~:~==~~::::J:====::::==::=: Official title: ------. Station: ------. ~l~ · ¥!~~:!!~'.'.-~-:::.~-~~>::::_~::::_-_-:::.-::.·:.-:::.·:_-_·:.·: f :::::::::::::::::::: Prevailing conditions as to wages and hom·s of labor at. --- in 190-, in specified occupations. (k) Grand tot8.l of cost (g to n------·------·-----· Source of information: ---. 3372 CONGRESSIONAL RECORD-SENATE . . JUNE 16 - ' 9. Description of material used and extent to. which manufactured The importance of the matter appears to justify the course proposed when received at this establishment : ------. by the consul-general, which is doubtless the one best calculated to ob 10. Actual working days in period named in question 7 ------tain the desired results. It is suggested, however. that the· overtures 11. Total expenditure for labor in period : made to the German Government be accompanied by assurances that the Males 16 and over ______names of industrial establishments will not l>e disclosed and that the Females 16 and over ______i.nformation s-ought is for the legisJative branch, not for the use of the customs officers under section 8 ot the customs administrative act. Children under 16------Respectfully, Total____ ~------GEo. B. CORTELYOU, Secretary. 12. Average number of persons employed during period : No inclosure. ~!ales 1616 and over-----~------Females and over______DEPARTMENT OF STATE, Children under 16------lVa8hington., November 18, 1908. The Hon. DAVLD J. HILL, Tota1------13. Hours of labor per day in this· estal>llshment______American Ambassador, Berlin. 14. Days worked per week in this establishment______Sm: The department incloses herewith copy of a dispatch from the 15. Hom·s of labor per week in this establishmenL--~---- American consul-general at Berlin, in which, referring to the depart ment's circular of June 15. calling for data on costs of production for the Ways and Means Committee, he proposes that the German foreign No. 178. office be requested to ask the chambers of commerce. to cooperate with AMERICA.."'{ CONSULATE-GENERAL, the American consular officers in securing such data. The department Berlin.~ Germany,. SeptembC1· 10, 1908. also incloses copy of a letter from the Secretary of the Treasury in re To the honorable the ASSISTANT SECil.ET.A.RY O:F STATE, gard to this proposition. Washington. Understanding that you have advocated this course in your conference with the consul-general, the department authorizes you, in the exercise Sm: Referring to department's circular instruction of June 15 of your judgment as to its expediency, to present the matter to the last {File No. 13911), "Industrial conditions in foreign countries" German Government, with assurances., however, that the names of the I have the honor to. state that, in my opinion, the most effective method industrial establishments will not be disclo ed and that the information · of obtaining- accurate and trustworthy information necessary to fur sought is for the legislative branch and not for the use of customs offi nish the date asked for under Article III of said circular, " Cost of · production... would be to cooperate with the German chambers of cers of the United States under section 8 of our customs administrative commerce. acL Under the existing- commercial agreement between the United States I am. sir, and Germany {Par. E, letter of the Secretary of State to the imperial Your obedient servant, ROBE.RT BA.COX, German ambassador- at Washington of April 22, 1907), the confidential Acting 8ecretar11. agents· of the Treasury Department- in their- tnvestigations of questions Inclosures : 1. Dispatch from American consulate-general, No. 178, bearing upon customs administrations, are instructed to act in con September 10, 1908. 2. Secretary of the Treasury to Secretary of State, junction with the chambers of commerce o-r the districts in which the November 9, 1908. agents are located. Up to the present, a.t least as far as the confiden tial agent at Berlin is concerned, the practice has worked admirably. No. 580. German manutactnrers will open up their books more readily- when AMERICAN CONSOLATE-GmiERAL, asked to do so by their own chamber of commerce than when ap B'ra11rk-fort-on-the-Main,. November !8, 1908. proached by- a foreign outsider. The honorable ASSISTANT SECilETA.RY OF STATE, I have personally seen the president and secretary of the Berlin Washington, D. consular officers in this country with a view to securing the data re The undersigned begs to make the following remarks on the subjeet: lating to costs of production called for by the department's circular The chambers of commerce and industrial associations in collecting of June 15 last for the use for the Committee on Ways and Means ot the material have consulted the protocols of the tari11' hearings before the House of Representatives. the Committee on Ways and Means of the AmeriCan House of R~pre After careful consideration and further conference with the consul sentatives and have examined the statements contained therein relative general in Berlin, I have addressed a note on the subject to the foreign to the costs of production in Germany. This examination I;ias led to office, of which a copy is appended hereto. numerous exceptions to the statements asserted by the com.nuttee. ID.s While this request may not result in procuring all the Information pecially the following general points of view are continually brought up: desired which it ls probably impossible to obtain by any method, it In the comparati'Ve tables on wages in the United States of America will ce~tainly not diminish the chances of obtaining it, and will, it is and Germany data concerning the German conditions have in many believed, leave the whole matter in a better .position than it otherwlse cases been utilized which cover conditions of m~ny years ~go and .qave would be by showing that no secret inquisition has been intended. It no longer any significance for the present day; m calculat1:11g Amer1<:an will also exclude the possibility of complaint that our Government has wages the highest rates have been ta.ken as a basis, whiJ.e m computmg employed untrustworthy data, since it will have employed all that can German wages the lowest rates have been taken; the mcrease in cost be obtained through official channels. of German production by social burden!! has peen left out of co~sidera I have the honor to be, sir, your obedient servant, tion · the comparison of absolute earmngs gives an inaccurate lIIlpres DAVID J. HILL. sion ' because the work accomplished by American laborers is perceptibly greater than that of the Gerrpan laborers, partly in ~tself and partly through the more comprehensive employment of machme work ; if the No. 193. (To accompany disp:i.tch No. 164.) wages for p.iecework to be .used for the manufacture of the separate EMBASSY OF THE UNITED STATES OF AMEnICA, article are calculated. the difference between the German and American Berlin, December 10, 1908. wages is perceptibly less than would appear from the statements con cerning wages on time; in comparing wages on time attention should The undersigned American ambassador has the honor to inform his be paid to the fact that it is customary in America to discharge a large excellency the imperial German secretary of state for foreign affairs number of the laborers in times of economic depression, and under cer that the Government of the United States of America, being about to tain clrcuiru;tances to stop work wholly, while in Germany the em- consider the revision of its customs tariff, desires to obtain such au lo ers restrict as far as possible the discharge of workmen and they thentic information as will best aid it in making such changes as the ~ey all possible means to keep the workmen in employment even during industrial and commercial conditions of the present time may seem to depression in business. It is of-ten in Germany the case that old work justify, and as will be inost just toward other countries. men who are no longer wholly capable continue to be employed under To this end the Committee on Ways and Means of the House of full waa-es A number of firms which complained of insufficient tariff Representatives, which has this subject in charge, has requested such protecti'On ·befcre the Committee on Ways and Means underbid German data to be collected as may be available regarding the cost of produc manufacture.rs in the interior market of Germany as well as in the tion of certain specified articles or classes of articles in foreign coun American market (cf., among the inclosures the printed document rela tries. It was at first thought that the most direct and convenient tive to dutles on productions of lithography, pp. 6 and 7, and the two method of procuring this information might be through the immediate inclosures belonging thereto). In many cases inaccurate statemel!ts application of the consular officers of the United States to those manu have been made concerning the extent and duration of ~emale and child facturers who might be able and willing to furnish it. In order to labor in contradiction to the regulations now in force m Germany. give more unity to the method of inquiry, to secure more uniform As' regards the la.st point, reference ~hould be f!lade to the statll;tory results, and to accompany the ·requests for information with proper regulations concerning female and child labor m Germany (Reici:is assurances of the purposes for which it is intended to be used, the gesotzbiatt No. 14, April 2, 1903, and supplement to No. 2 of the Min undersigned is directed to state that it is desired that this investiga isterialblatt der Handels und Gewerbeverwaltung, January 23, 1909), tion be conducted under the observation, with the approval, and, it is two copies of which are attached, and to the compil11;tion ?f. the statn: hoped, with the cooperation of the various chambers of commerce. The tory regulations and ordinances of the federal council which, togethe.r undersigned therefore has the honor to lay before his excellency the with the law relative to child labor in industrial concerns, dated Mar.en request of his_ Government that the permission of. the Imperial German 30, 1~03, have remained in force; two copies of the compilation are m Go.vernment be given to the chambers of commerce in the Empire to closed. Since from this the employment of children under the a~e cooperate with the consular officers of the United States in this matter, of 13 and of children of school age over 13 in factories, as well ·as m and that the assurance may be communicated to the chambers of com establishments mentioned in the compilation under I and in section 4 merce, and through them to the various producers concerned, that the of the children's · protection law, is absolutely prohibited ; now, since 0 0 compulsory school attendance generally lasts to the completion of the ~~;~~~~tig&c~~~g~: ~; u~~t~de~~fi~v~J>J::1c!'cWo~ 8°~l ~u~·h~u~i~~~ fourteenth year, the employment of children unfier the age of 14 in administrative act. The undersigned is also authorized to say that the factories and the industrial establishments mentioned is only a. matter names of the lndustrial establishments furnishing the information de of a small number of children who for some special reasons have fin sired will be treated confidentially and not disclosed. · ished school before the completion of the fourteenth year, and even The undersigned avails himself of the opportunity to renew to his ex then it is only the question of a period of a few months. In so far as cellency the assurance of his highest consideration. the employment of children in factories and the industrial establish DAVID J. HILL, ments named comes into question at all accor!l~n~ to the said laws, it To his Excellency HERR VON SCHOEN, . is subject to restrictions laid down for youtnrru workmen mentioned Imperial Secretary of State for Fgt·eign A.-{fttirs, etc. under II in the compilation. · The undersigned avails himself of this opportunity to renew to his No. 254. excellency the expression of his most distinguished consideration. SCHOEN. EMBASSY OF THE UNITED STATES, His Excellency Mr. DAVID JAYNE H1LL, Berlin, March tn, 190.9. .Ambassador of the United States of .America. «'be Hon. P. c. KNOX, Secretary of State, Washington, D. 0. Sm: With reference to the department's unnumbered instruction o:t (Translatio~.) November 18, 1908 (file No. -), authorizing me to endeavor to secure through the foreign office the data as to costs of production in Ger GEBMAN EMBASSY, many, called for by the department's circular instruction of June 15, Washington, March 81, 1909. 1908, for the use of the Ways and Means Committee, I have the honor Mr. SECRET.A.BY OF STATE : to inform you that l: have this morning received a note from the _foreign The United States ambassador at Berlin sometime ago requested the office, of which a copy with translation is inclosed herewith, trans foreign office to procure reliable information regarding the cost of pro· mitting the data in question, which have been collected by the various duction of goods exported by Germany chiefly to the United States. German governments through the chambers of commerce and from indi I took the liberty 1·ecently to transmit to the State Department dupli vidual firms. It will also be observed that the chambers of commerce cate copies of the matter which was furnished to His Excellency Mr. have examined the reports of the hearings before the Ways and Means Hill, at Berlin, in compliance with his request. Committee and take exception to the accuracy and completeness of the I have the honor to inclose to your excellency some further informa material there presente.d. · tion of this character which has been compiled by German commercial In view of the fact that the embassy's mail pouch leaves this after associations and officials. noon and that the material furnished by the foreign office will be of In view of the present tariff discussion In Congress, I assume that' little use unless it reaches the committee promptly, I inclose only one these data will also be of interest to the United States Government. copy of the same, without translation, retaining the other pending the Please accept, Mr. Secretary of State, the renewed assurance of my receipt of instructions as to whether it should be b·ans.lated at this most distinguished consideration. embassy, where the facilities for executing such voluminous and tech BERNSTORFF. nical translations with promptness and accuracy are limited, or whether His Excellency Mr. P. C. Knox, it should also be forwarded without the Elnglish rendering. Secretary of State of the United States, Washington, D. O. I have the honor to be, sir, - Your obedient servant, DAVID J. HI.LL. EMBASSY OF THE UNITED STATES, Accompanying : 1. The German minister for foreign affairs to Mr Berlin, .Aprti 13, 190'J. Hill, March 25, 1909. 2. One set of the duplicate inclosures accom: Th~ Hon. P. c. KNOX panying the same. Secretary of State, Washington, D. 0. SIR: Referring to my dispatch, No. 254, of March 27, 1909, and my (To accompany dispatch No. 254.) 1telegram of the same date, I have the honor to inform you that, re ceiving no reply in answer to the question whether it was desired that Translation of a note from the Imperial German Foreign Office, dated the voluminous and technical inclosures fFom the German Government March 25, 1909. be translated here, I have sent the duplicate copy to the department FOREIGN OFFICE. by the hand of Consul-General Thackara, who wished to have the op With reference to the note of the 10th of December last, F. O. No. portunity to examine them during his voyage to the United States. 193, on the subject of inquiries relative to the costs of production of It is expected that he will have delivered the duplicate lnclosures be the principal articles exported from Germany to the United States, and fore the arrival of this dispatch. in supplement to the note of the foreign office dated January 13 last, It may be of interest to know that the German press has not en No. 11 U 85, the undersigned has the honor to inform His EJxcellency tirely approved th,e action of the Imperial Government in furnishing Mr. David Jayne Hill, ambassador extraordinary and plenipotentiary ot for the use of the United States Congress the facts regarding cost of the United States of America, that the proper internal quarters have production of certain German manufactures, as is evident from the in placed themselves in communication with the chambers of commerce closure transmitted herewith, with translation, taken from the Berliner and industrial associations concerned th.rough the agency of the various rr'ageblatt. federal governments. · These have collected the pertinent material, With regard to ·the insinuation that this informaion was sought in Which Is inclosed in duplicate, together with three samples 0 .t silk order to be given out by the .American Government for the benefit of embroidery (in an enve1011e, Schedule L). :various .American industries, these critics are proba.bly not aware o.t the 3374 CONGRESSIONAL RECORD- SENATE. JUNE 16, terms of absolute confidence upon which these facts were asked for-and In view of the fact that this matter has to be forwarded at once in furnished, by which a point of national honor ls involved in the use order to be of. value to the committee, I iuclose only one copy of the made of the information given. It is not impossible that some of the same, without t ranslation, retaining the other pending the receipt of facts stated in these documents may be given to the public at the in instructions as to whether it should be translated at this embassy, stance of the German Government itself. In that case it would be ad where the facilities for executing such voluminous and technical traus vantageous, if possible, to know by whom and under what circumstances lations with 'Promptness and accuracy are limited, or whether it should they were published, in order that the charge of bad faith on our side also be forwarded without the English renderin~. • might not be made. It will be recalled that the terms upon which this information is The attitude of the German Imperial Government toward the criti furnished, like that which has preceded, are strictly confidential, the cisms above cited is shown in the inclosed semiofficial statement made data being for t'he use of Congress only. in the Berliner Lokal Anzeiger, of which a translation is also inclosed. I have the honor to be, sir, It will be noticed that ip this statement the motive which actuated the Your obedient servant, DAVID J. HILL. German Government in 'furnishing the information is said to be the de sire to rectify and explain the erroneous data upon which it was believed Accompanying: 1. Note verbale of the German foreign office. 2. One our Congress was basing its conclusions. set of the duplicate inclosures accompanying the same. I· have the honor to be, sir, Your obedient servant, DAVID J. HILL. (To accompany dispatch No. 266.) (To accompany dispatch No. 264.) TRANSLATION OF A NOTE FROM THE IMPERIAL GERMAN FOREIGN OFFICE DATED APRIL 9, 1909-NOTE VERBALE. EXTRACT FROM THE BERLINER TAGEBLATT, EVENING EDITION OF APRIL 10, 1909-THF. GERMAN GOVERNMENT AS A FELLOW-WORKER OF THE AMERI· The foreign office has the honor to forward to the embassy of the CAN TARIFF BILL. United States of America, as au addition to the note of March 25~ II. U. 1642-the following additional matter in regard to the cost of The Deutsche Exportrevue brings no less a charge against the foreign production of especially those goods exported to the United States of office than that of having given up the business secrets of the German America, appending hereto two copies. The compilatious regarding industries so that they can be used in the preparation of the tariff bill. the lithographic products in these supplementary documents, are an The article is based on an extract from the American Association of addendum to the memorial on the same subject submitted by the • • • . Commerce and Trade, issued in Berlin, and which in its last semi BERLIN, AprH 9, 1909. monthly bulletin, of April 1, 1909, says: " The German foreign office has, at the request of the American De To the EMBASSY OF THE UNITED S'l'ATES OF AME1UCA. partmeut of State, forwarded to the American embassy in Berlin a type written folio document of several inches in thickness, giving official Information about wages and other costs of production of Germau manu (Translation.) factures which are affected by the American tariff. IMPERAL GERMAN EMBASSY, "As the State Department came to the conclusion that the answers ' Washington, D. 0., Atwil 23, 1909. of the consuls to the circular issued in June of 1908 were not satisfac tory because the French, British, aud German manufacturers _were uu Mr. SECRETARY OF STATE : In continuation of my letter of the 31st willlng to give a trade rival facts on which to base a hostile tariff, ultimo, I have the honor to forward herewith inclosed to your excel therefore the State Department instructed the American ambassadors to lency a few additional reports compiled by German commercial ccm obtain this information through the foreign offices of those countries panies and officials concerning the cos:t of production of various arti to which they are accredited. • cles in Germany. This same material has been placed at the disposal "It is uuderstood that Ambassador Hill, in the beginning of December. of His Excellency Mr. Hill, in Berlin, and forms a supplement to the approached the foreign office with the proposition that it would be to information furnished by me in due course to your excellency. the interest of Germany to openly lay before the American Congress Accept, Mr. Secretary Qf State, the renewed assurance of my most statements showing the cost of production of manufactures instead of distinguished high consideration. only partial statements. The German foreign office accepted this view, For the Imperial Ambassador. and requested the governments of the confederation to gather the in WEDEL. formation, which had previously been requested of the chambers of commerce." . Serial No. 48.J DEPARTMEN'l' OF STATE, The Exportrevue makes the point that the tarilf revision was only Washington, April £3, 1909. used as a blind, and that the entire action had primarily for its ob His Excellency Count J . H. VO!i BEnNSTORFF, ject in an. official way, to gather material which would be useful to Imper-ial German· Ambassador. American industries as agaiust their competitors after the German and EXCELLENCY : I have the honor to acknowledge the receipt of your other manufacturers had refused to give up the desired information, note ot the 31st trltimo, with which you were so good as to transmit which meant an exposition of their most essential business secrets. duplicate copies of papers, furnished by your Government to the Amer Even if the pretext were true, that this in.formation was to be used by ican ambassador at Berlin, with reference to costs of production in Congress as an aid in the discussion of the tarilf revision, it would only Germany, which data were desired for the use of the Committee on result iu an iucrease of the duties on such articles which can be manu Ways and Means of the House of Representatives. factured much cheaper in Germany than. in the United States; there In reply I have the honor to say that, by reason of the additional fore the interests of the German industries would ·µi all probability be copies ot the documents furnished by you, the department was enabled considerably harmed. Unquestionably this information would be given not only to supply the needs of the Committee on Ways and Means, but to vari')US American industries, which would make it easy for them to those of the Committee on Fina.nee of the Senate as well. Accordingly overcome the German industries exporting to the United States, and, the department has to-day addressed an instruction to the American eventually, to fight them on their own ground. It would. be unhe8:rd of ambassador at BerHn, dlrectlnl? him to advise the Imperial Government if the German foreign office had not taken such results mto considera of· the disposition made of this material, at the same time conveying tion and it is hoped that the publication of the "American association" an expression of this Government's appreciation of and thanks for the will' meet with a decided denial. courteous compliance with this department's request. In addition, I We are informed that the Imperial Government will give out an have the honor to express to you the department's thanks for the em official explanation of the matter. bassy's kindness in the matter. Accept, excellency, the renewed assurances of my highest con (To accompany dispatch No. 264.) sideration. HUNTINGTO~ WILSOX, TRANSLATION OF AN EXTRACT FROM THE BERLINER LOKAL-ANZEIGER OF .APRIL 13, 1909. Aoting Secretary . With reference to the complaiut that the foreign office had imparted Serial No. 153.J DEPARTME~T OF ST.ATE, to the American Government extensive material in regard to cost of Washington, April fS, 1909. production especially of goods exported to the Unite~ State;S and .had The Hon. DAVID J. HILL, exposed the business secrets of the German industries, it is sem1offi American Ambassador, Bet·lin. cially annou.nced as follows: At the hearings i.n the fall of last year, Sm: I have to ack.nowledge the receipt of your No. 254 of the which were had before the Fiuance Committee of the American House 27th ultimo, wherein, with reference to the department's unnumbered of Representatives which committee was charged with the duty of re instruction of November 18, 1908, directing you to procure for the use visina the tariff 'numerous mistaken statements were made by the of the Committee on Ways and Means certain data as to costs of pro mamffacturers ol. America about the cost of production, and especially duction in Germany, you inclose translation of a note from the for as to the wages paid to workmen, in that the costs were considerably eign office, trausmitting the data in question, collected by the various underestimated. These facts, which the secretary of state of the for German governments through the chambers of commerce and from indi eign office explained, in answer to a question by a member of the vidual firms. Reichstag Stresemann at the session of the Reichstag held on the 31st Additional copies of the papers sent with your dispatch were also of last month, have been given special attention l;>Y the officials, and received by the department from the German embassy at this capital, everything requisite was done to correct these mistakes through the so that the department was enabled to supply not only the Committee chambers of commerce. The material sent in by the cham~ers of com on Ways and Means with copies, but the Committee on Finance of the merce was submitted to. the American ambassador in Berlm, who had Seuate as well. . expressed the wish that trustworthy compilations of the questions at You will advise the German Government of the disposition of this ma issue be submitted. The imperial ambassador in Washington also sub terial at the same time expressin!? this Government's appreciation of mitted this material to the American Department of State. and thanks for its courteous comphance with the department's request. I am, sir, No. 266. Your obedient servant, HUNTINGTO!'l WILSO~, EMBASSY OF THE UNITED STATES, Acting Secreta1·v. Berlin, April JS, 1909. (Confidential.) EMBASSY OF THE UNITED STATES, The Hon. P. C. KNox, Berlin, May G, 1.909. Secretary of State, Washington. The Hon. P . c. KNOX, Sm: With reference to the department's unnumbered instruction of Secretary of State, 1Vashit1gton, D . C. November 18, 1908 (File No. -), authorizing me to endeavor to se Sm: I have the honor to acknowledge the receipt of the department's cure through the foreign office the data as to costs of production in instruction of the 23d ultimo (Serial No. 153, fl.le No. 13911/ 805-807), Germany called for by the department's circular instruction of June 15, relative to the data furnished by the German Government as to costs 1908 fo1: the use of the Ways a nd Means Committee, I have the honor of production in Germany, and to inform you that I have not failed to to illform you that I have received a note from the fo1·eign office, of advise the foreign office of the disposition of this material, at the same which a copy with trnnslation is inclosed he1·ewitb, transmitting the time expressing our Government's appreciation of and thanks for its furthe1· data in question, which have been collected by the various courteous compliance with the department's request. federated German Governments through the chambers of commerce a.nd I have the honor to be, sir, from individual firms. Your obedient servant, DAVID J . HILL. 1909. CONGRESSIONAL RECORD-SENATE. 3375 Mr. .ALDRICH. It is my purpose to take up to-morrow the Fil'st Lieut Henry F. McFeely to be captain. glass paragraphs, whi~h have been passed over, and the matter Second Lieut. Joseph M. Cummins to be first lieutenant. of a duty on hides, and perhaps the paper 'paragraphs, and sl.1ch Second Lieut. Thomas 0. Musgrave to be first lieutenant. other paragraphs as can be disposed of to-morrow. Second Lieut. Converse R. Lewis to be fi1"<~t lieutenant. • .l\Ir. GALLINGER. All to-morrow? l\IEDICAL CORPS • .l\Ir . .ALDRICH. I hope all to-morrow. Mr. BACON. I would inquire whether it would be . practica The following-named first lieutenants to be first lieutenants ble, in connection with the window-glass amendment, to <>'ive us in the Medical Corps of the A.l·my : the ad Yalorem which is represented by these combined duties? Henry Clay Coburn, jr., I am not asking the Senator to make any reply, but if it is prac Arnold Dwight Tuttle, ticable, I should like to have that information. John Brockenbrough Harvie Waring, l\Ir. ALDRICH. I think . it is not practicable. We have William Richard Dear, changed the form of the classification. We put in paragraphs Charles Edward Doerr, as to value per pound. I think it is not possible to make a Daniel Parker Card, comparison. It is possible, though, to compare the rates, be Ralph Harvard Goldthwaite, cause the rates are reduced, say, from 1! to li cents on a certain Frederick Starr Wright, paragraph. _ Daniel Warwick Harmon, Mr. BACON. There is an ad valorem equivalent specified in James Carre Magee, this document-Estimates of Revenues. Corydon Goodrich Snow, .Mr. ALDRICH. Those are on the importations under the old Norman Lincoln l\fcDiarmid, law. Clarence Albert Treuholtz, Mr. BACON. Yes. - Eben Clayton Hill, l\fr. ALDRICH. But there is a considerable reduction upon George Hudson l\fcLellan, all the brackets in the new paragraphs. Alexander Dwight Paree, James .Arthur Wilson, EXECUTIVE SESSION, Armin l\iueller, l\fr. KEAN. I move that the Senate proceed to the considera Thomas J ames Leary, tion of executive business. Morrison Clay Stayer, 1.~he motion was agreed to, and the Senate proceeded to the Robert William Kerr, consideration of executive business. After one minute spent in Lee Roy Dunbar, executive session the doors were reopened, and (at 7 o'clock Leon ConnalJin Garcia, p. m.) the Senate adjourned until to-morrow, Thursday, June William Stephens Shields, 17, 1909, at 10 o'clock a. m. Addison Dimmitt Davis, William Hope Smith, Clarence Elmer Fronk, NOl\IlNATIONS. Rozier Clagett Bay Jy, and Executive nominations received by the Senate June 16, 190~J. George Dawson Heath, jr. APPOINTMENT IN THE ARMY. PROMOTIONS IN THE NAVY. Rev. Robert R. Fleming, jr., to be chaplain. Lieut. Commander Harold K. Hines to be a commander in the navy from the 16th day of June, 1909, vice Commander PROM.OTIONS IN THE NAVY. Francis H. Sherman, promoted. · Lieut. Commander Philip Andrews to be a commander. Ensigns Chandler K. Jones and Herbert H. Michael to be The following-named lieutenant-commanders to be lieutenant lieutenants (junior grade) in the navy from the 2d day of commanders (to correct the dates from which they take rank as February, moo, upon the completion of three years' service in previously confirmed) : present grade. Frank H. Brumby, Lieuts. (Junior Grade) Chandler K. Jones and Herbert H. James P. Morton, Michael to be lieutenants in the navy from the 2d day of Febru Frank P. Bald\rin, ary, 1909, to fill vacancies existing in that grade on that date. George L. P. Stone, Surgs. Robert E. Ledbetter and Charles St. J. Butler to Rufus Z. Johnston, jr., be surgeons in the navy from the 16th day of September, 1908, Thomas D. Parker, and the 19th day of September, 1908, respectively, to correct Jonas H. Holden, the date from which they take rank as previously confirmed. Thomas T. Ora \en, rassed Asst. Surg. Fred l\I. Bogan to be a surgeon in the Daniel W. Wurtzbaugh, na YY from the 2d day of September, 1908, vice Surg. Henry T. Ralph Earle, Percy, promoted. Gatewood S. Lincoln, Ivan C. Wettengel, CONFIRMATIONS. Charles M. Tozer, Wat T. Cluverius, Executive nominations confirmed by the Senate June 16, 1909. Albert W. Marshal1, Thomas A. Kearney, DISTRICT JUDGES. Arthur MacA.l·thur, jr., and George W. Woodruff to be district judge for the Territory of Frank E. Ridgely. Hawaii. Lieut. Edward H. De Lany to be a lieutenant-commander. Peter D. Overfield to be judge of the district of Alaska, Lieut. Cassius B. Barnes to be a lieutenant-commander. division No. 4. Lieut. Michael J. l\IcCormack to be a lieutenant-cornmander, UNITED STATES MARSHAL. Lieut. Ernest F. Eckhardt to be a lieutenant-commander. Lieut. Duncan l\f. Wood to be a 1ieutenant-corumander. Thomas Cader Powell to be United States marshal for the Lieut. Leigh 0. Palmer to be a lieutenant-commander. dish·ict of Alaska, division No. 2. Lieut. Dudley W. Knox to be a lieutenant-commander. COMMISSIONER OF INDIAN AFFAIRS. Lieut. Edward McCauley, jr., to be a lieutenant-eornmander. The following-named ensigns to be lieutenants (junior grade) : Robert G. Valentine to be Commissioner of Indian Affairs. Donald B. Craig, · PROMOTIONS IN THE ARMY. Stanton L, H. Hazard, Roscoe F. Dillen, GENERAL OFFICER. Benjamin K. Johnson, and Col. Marion P. Maus to be brigadier-general. Walter A. Smead. The following-named lieutenants (junior grade), to be lieu- INFANTRY ARM. tenants: Lieut. Col. Arthur Williams to be colonel. Donald B. Craig, l\Iaj. Hunter Liggett to be lieutenant-colonel. Stanton L. H. Hazard, Capt. Frank L. Winn to be major. Roscoe F. Dil1en, First Lieut. Will H. Point to be captain. Benjamin K. Johnson, and First Lieut. Henry M. Bankhead to be captain. Walter A. Smead. ~- 3376 CONGRESSIONAL RECORD-SENATE. JUNE 16, 1909. The following-named paymasters to be paymasters (to cor Benjamin ·F. Beers, rect the date from which they take rank as previously con David Purdon, firmed) : Bernard Gebhardt, George G. SeibeJs, George C. E11erton, Edmund W. Bonnaffon, Charles H. Gilhuley, J o... eph Fyffe, .l\Iurray S. Holloway, John H. 1\ferriam, William B. Stork, Timothy S. 0 Leary, Clarence R. Johnson, George Brown, jr., Ben Smith, Walter B. Izard, WiJliam James, Da•id Potter, Pa trick Fernan, Samuel Bryan, Frank Ris er, Arthur F. Huntington, John Bryce, Harry H. Balthis, Rasmus Iversen, Charles Conard, Henry E. White, William 1-'. Gray, harles C. Holland, George P. Dyer, Cornelius J. Collins, John W. Morse, Lee Grossenbaker, and Robert II. Woods, Daniel C. Beach. Robert H. Orr, William A. Merritt, POSTMASTERS. John Irwin, jr., COLORADO. Webb . V. H. Rose, .Mary S. Clark, at Akron, Colo. William H. Doherty, Charles Morris, jr., ILLINOIS. Frederick K. Perkins, and Moses C. Smith, at Newman, Ill. George C. Schafer. KANSAS. Asst. Paymaster Kenneth C. Mcintosh to be a passed assistant paymaster. , Olga A. Krehbiel, at Moundridge, Kans. Naval Constructors Stuart F. Smith and William G. Groes NEBRASKA. beck to be naval constructors (to correct the date from which Walter L. Minor, at l\Iorrill, Nebr. they take rank as previously confirmed). I William II. Rood, at .J.. ·orth Loup, Nebr. Naval Constructor Richard H. Robinson to be a naval con structor (to correct the date from which he takes rank as pre NEW JERSEY. viously confirmed). l\Iorris Davis, at Bridgeton, N. J. The following-named mnchinists to be chief machinists: OKLAHOMA. John E. Cleary, John C. Byrd, at Wagoner, Okla. Richard Jeffares, Charles Hammond, SOUTH CAROLINA. James W. Murray, Della D. Carter, at Lake City, S. C. John Dexter, UTAH. 1\fartin J. Clancy, Clifford I. Goff, at Midvale, Utah. John J. Fuller, Albert E. Hopkinson, at Sunny ide, Utah. John T. Pennycook, James A. Hickey, WISCONSIN. John 1:'. Riley, Louisa Whitcomb, at Albany, Wis.