HF Aa UAH~S I A R An Abseceoy Relif tote Cubans A PER RTAE EDUTON OF F DERALCU TOM$ O1 ther: o-'Moop 0 py Mvasures fB.yW i.. aRSS Authdri Ca' gar i REN RU? ARY ri3E "'it I/ II I 1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ A CUBAN RELIEF MEASURE,\S ()-'ll< )Sll) I' ) An Absence of anyl Relief to the C(ubaitlns in the Immedi;ate Future AN ) A PERCENTAGE REDUCTION OF FEDERAL CUSTOMS ( )le Other Pro-Monopoly MeLasutres By. I'. I. - \ASS (\uthor of Ci -SI rtP \Ii futAitue, J)(o) WASHIN'(TON, 1D. (9. FFP3BRUAPY 3, 10o2 rphie subjects a~re placed in the reverse ord-er of' their presentation. This, like Finnigan's pig, must he )ulle~d backwairds to be made to go forward. Any reUalei' who knows what (NY0t'itutdCS the d'itJ'eence between TnfinCt(i, and ainreftived svtgar ccat i ivantageouslvy readI,straight through hi the order of' its present'ation, otherwise the, a-rticles should be read1 beginning at the last andi coi ming towardIs the, front of'this p~aintldlet. Thsmakes for' a~ more ready tmIderstamhliig byv all, -such as, may be inltere —ste(l ini the theme. The subject is one of much impIortance to the A mieltican public, for the steps taken b~y the Americani Federal authorities ait this date determine, to a large extent, thre possibilities of serious national complications in the 'iear futu re. NP. TO THE REA]DER. A careful p~erusall of' the conitents of' these, pages will make aipp)arent the risk the Adminiistrtationi is lialble to incur should aniy per-ccntage r-edvactiort of (luty be made in favors o-f Cuban iinports into th(e United States, at ti date. These pages make plain the fiact thcat tlhe graniting- of antiy perceintge reduction (sQay of 25 p~er cent.) will in niowise benefit the Cuban sugar industry, but directly tend to incereaise the profits of' the two existing Americanl Refininig combines, while ruhining both the Louisianat and Beet su~gar ind~ustries. With a full uindevstanidiing that such will be the case, it see11s hardlv Possible that the p~resenlt Adiministration will sactrifice, these Various interests to hut deliberately further stiengthlien two of the miost profitable lnonol)olies with which the Uinitedl States is gracedI. Historical referencee to the extent of which these coinlbin es Ii ave al read ~v I eeii associated with Felederfal Trariff' mneasures is unnecessary at this dIate. \V. L. IAsIs. Febiuarry -;L 1902 —. Rge The following lettel was adldressed February 3, 1902, to tlie below-i al ed Senatoirs, wh are (on the Senate (Cotmmittee of Rlatiotvs w ith Cluba Sentator 0. I. Platt, Chairman. Seia:tor N. \W. Aldrich. Senator S. M. Cullom. Sela ot O IH. E. lBurmt ni. Sena tor Janmes McMillanl. Senator XW. J. D)eboe. Senator J. C. Spooner. Senllator H. I). iMolne Senattor H. M. 'Teller. Senator J. P. 1'. Riaferro. Subject-Cuban Relief. rLTHE. FAIRFAX, WASHINGTON, D. C., February 3, 1902. HONORABLE SIR: llle enclosed, in envelope, is copy of that whicl I mailed to His Excellecv, The President, Friday, January 31,1902. Permit lme to resp)ectfully request tlhat you exercise your goo(l offices to the elld that this specific aInd cor- pllete suggestion may not be consigned to the waste-basket witlout bleing carefully examined into. I remain, dea:r sir, Resp ectfully, (%Signed) W. L. BASS American Planter of the Domintican Republic, W. I. \Vith this letter was enclosed copy of complete comimunications addressed on January 31, 1902 and Februarv 3, 1902, to the President. f 1) [copy.] THE FAIRFAX, WVASHINGTON, D. C., Februtary 3, 1902. Mr. PIU~SIDENT: Fully awa-re that many themtes are presented for your consideration, the request is made that my suggestion of Janutary 31, 1902, submitted in reg(ard to Cuban relief, be accorded Ca primary hearing before such a comm111ittee as vou mnay be, pleased to appoint, such as the Chief of the Departmnent of Customs, thie hiead of thie Buireau of Agr~iculture, and others enjoying your confidence, and whiose uniderstanding wouldi prompt a severe exami-in~ation as, to the propriety of the suggestion. My proposition in every respect accords withi the(, uniderstanding th-at vou ar-e anxiouIs to assist Cuba if the mneans can be, devised so as not to injure exisigAei can interests or'the t~ariff revenue. rrhe disastrous dIevelopmenuts -and coml~)1 ications, whichi must be the inevitaible outcome of either uot grantThy anythIng to Cublr, or gr-anting a percentaqe redi ction, imay be avoidled at thtis time. I trulst you will not refuse niy petition to provide for the mierits otfthis specific and1 comiplet~e suiggestion to be. examinedA into prior- to its b~eing) sul)m~itted to your Excel lencv. (Signed) W. Li BAss, Plaiau i~tntr of the Do-mi'nican, Republic, 'W. I. ho His E"xcel lencv, TR~Eo[)oi{E RoosVEVJLT, P)'erilde'n of the, Untited States, Wa"sh'inlgton, Dl* (1 [EnJiclosulre to the President.] SIR, 8110111(1 Cubta be annexed, withI or without the comimercial privileges of time C/onstitution, the sagar refining inonopolies will I-e (iestroyed. Such) prospects must p~romipt a (louble, opp~osition; the immediaite comiplicantions of.affairs to keep) Cuba fronm 7 being annlexed. a (nd latte, \lel( a'1 llllexed, 8l lierculealn effort to )l'reellt allnexed (Cub:a's )1ro(licts tfl'oll tIle freedom of the lAmiericlan ma 1rket. Shlould (no 1ttps be tatkein. to telic.ve telie ildutlstrill crlisis in Cuba thle foregoilg' is to he expecit ted( shloltlv. Shoulld a percectage retdlctichn of Ale lc'ica ll illlmport duties be ceded( to Culan Ipro(lucts, it will rluil both the Cuban and Amilerican prilanirv producers of sugar, and but furtther strellgtlhell at1 enrich thle Americatn refilers. With -a percentage relductionl o(f (duty grantedl to Cuba, tlie sugIar illdlustl'r ()o1 thle Island is (doomed'( a.nd tile I4evelopmIlelt off tle (erman sugar ill(lulstl', n111 * thle stimulus of tlie cartel, will be tlie chietf so'urce of unr'fined sugars importec t 1tl0' 'refillillg 8111(1 collsu1tmption il the States. ' c'lrcul sta1ce will thell be so) tavort)le as to the refiling nlio(opolies (frs,ler there re two of them that tihese will sp)are 11 efforts to, retarld a 1y A mericall legislati(,o whichl hl:s f; 1 its pur' pose tlie oftfsettilg of tlie uauthlorizel d cartel: riangemelit, of Eu rope. In1 such 1ll inllstalce, tli e writer tllougl a81 out tsi(iler, tand la1 t1y o theri Almeric'i(ls expect to be ruined. 'The writer is dlisi.iteirested (as regal s any adval tages whiich the Cubanls i\ay secure as thie result of tle propositioll, but, is vitally co(elcertlled if t1 illcorlrect Ilmesure is adopted, or none at 1al. -e is Ilot associ.teld with Ian of the illdividilals wilV) liave beei) importuning voll il this connlection), alnld lhas beell busy iI arranlgimlg his presentatiol of tlte stl)ubjec(t so tiat it niighit he realfily unlderstood)( slhoul 1111 opportliu tlit!v 1e prese(llted( fot(' hearing. \\.. BASS. 8 [From The Springfield Daily Relpublican, Feb. 4, 1 90O, Springfield, Mass.] Annexation or Lower Tariff-Thel Sugar Int erests and CubaA-A Que(er M1ix-up. SI:R: 'iThe Cuban situattion is nlow at its mlost ilteresttesting stage. After weeks devoted to hlearings, Iby thle W\Va;s and Means Commlittee, tie illability to distinguisll bt:etweenll the primary productioOn aln(l the refint, i of sugars, 1)otll domestic and foreign, has prompted( the (Colmlnittce to deny any relief to the Cutban sugar ildustries. Nearly all of the Beet ald the Louisiana sugar representatives have returned to ttheir lihomes, tand in tile mlind of the uninformed, tlie Cuban delegation act \VtWashigton shoulld have every reason to feel des)ponlent. Such would be tlie case were it not for circumsttncles utldersto(t by only a few. It will be renmenbered tlhat the Louisitllana ad t13et representatives opposed a percen.taqe rceduction, as it wou ld wipe tlheml out, without in any wise interftelinIg with tlhe refininig inte:rests, or wlhat is currently knlown as tlie two Sugar 'Trusts (for there are two refinii1ng combllines.) At tlhe lhearting before tle W\ays and Meals (.olnlittee tlhe refiners a(lvocate(l ea prece'utatle redtlction of (lduty on sugar to assist tihe Culllas, so tlthat lannexalti(on migllt nlot be Irecipitated. It was generally Ibelieved, by suclh as were p1osesse(1 of only a superficial knowledge of tlhe situation, thlat this was but a move on the part of tlie Refininlg combines to disconcert the Beet Refininig interists. Such was not the case. The managers of Refining Co(mbine; s are well verlsed in all that pertains to the business, and realize thlat whlen Cuba is IItanxed( the IRefilinlg Combines will no longer' enjoy tlie monopoly of refining ill the (1ubatn c'rop) lrio(l' to its being placed upon tile Americatn illarket. Under such circumstances it is not (difficult to perceive that thle profits necessary to pay (lividends on tlhe 9 large capital stock of the two existing refining combiiies, will not be fortlicominlg when tile refiners are only alle to VIass a third of tle present amoult of sugars througll their refineries. At this (date the Cubtan delegates, who appear to be rmore interested iiI anllnexation tllan reciprocity, are most jubilant. 'They recognize tliat now tlhat thle Beet "and Louisianla pleol)e liave blocked the Ways and Means Commnittee, tlie refining comlbinles are obliged, for their own preservation, to come forward and urge that something be done to help Cuba and delay annexation. Up to the present, at the hearings of tile Wanys and Means Commnittee, the represenltatives of thle refining interests hatve been conspicuous by their absence, for it was expected that a perceCtaqe redaction would be granted to Cuba) andl they (the refiners) klew that they would get the benefit of suclh a mleasure instead of thie Cubans. The failure to granit any assistance whatever makes the situation dangerous for the refiners, while it but temporarily satisfies tlhe Beet avid Louisiana pleople. Almost all of t}le representatives of tlie domestic sugar producers were so busily engatgedl in a nmadl endeavor to monopolize tlie credit of lhaving blocked al ll ssistance to the Cubtans, tllat they lhave juipe(l from tlle pan into tlhe fire, a1d( oblige(l the two refining cotlbines, to upliold tlhe value of tl(eir stock on tlhe nmarket, to coime forward and champltion tile cau.se of tile Cubanis. A few of tle Beet and LouisianaI people, in t le last few days, iave just begun to realize tliat if Cuba is not assisted it will inot only violatte tlic National pledge to assist Cuba, but lpreciitLate allnexati)on, anld thlat this means tlhe ruin of tle Beet sugar, the Louisiana sugar and the American Ref iln1qg Moinopoly. Individual shortsiglhtedness l)ronmte(l the opposing of any anld all assistaince to) tile Cubans, whlie general interest and tlie slightest particle of understalning of the subject would thave indicalte(l tlie propriety of granting at least somne assistance to Cuba. Tlle present attitude of t le Ways and Means Committee is most enlbarassing to tlhe Adminiistration in its de 01 silre tanll tt('empt to carry out the Nationlal pledge to assist (iba w(ithtout arnexing it. ()le must to-lday travel a long (listalnce to find an in(lividualtl w1o falils to realize tlhat without assistance at this jullcture, tle peolple of tle Islatld of Cuba will be starv'ed(l into anIllouncin tlheir consent to an early annexa tio. A p/ercertIage rdc 'uction of (Iuty on free Cuba's sugars wijpes out the Louisianla and the Beet illnustries, while it st rengt lilns tIhe two refining coltmbines. Ao (aissisfn-cf tealende'red to thle Cuball sugarl intIlustry, Imel(is not, only annexation of tlhe Island at an early ldate, l)ut teli wilpi i, out of tie Beet (and Louisiana sug;ar: il dut stri es, as well as a 75 per cent. stirinkage of' tle refinitug clombin(e's commonlll stock. Thle neglect of tlle sugar refining people to take an,teergtiic lart in tle hlearings before the Ways and lMealns Conmmlittee c(tan oly be accoounlted for by their i, resenit:atives lhaving failed to recogllize tliat there was ( r politics tln sugar ii tlie mindls of tle members (lie ( Co r i ittee. Is not tlie outlook farvorable for an animated reconsid-:rllatio() of thle subjcct at no late date? Are not thle Cuba:l)li lanters to be congratulated at }havinlg elllitsted tlhe two refining colmbines on tleir sid~e,? l)oes it inot seeim strtalge tllat tlie Refitting Combines are about to urge a lturried lopping off of the tariff? It woul(l 1be stral ge, were it not for the fact tlhat the re:fillig coinii(eis enj(oy tlihir mnloopolistic powers by virtue of a:io)t c 'r fetature tlian tle monetary duty on such' ullrefilced sugars as aie imported into thle United St:at s. F. O. C. F: Il. inq.U to,ACY 1, 19. 02, la.Ushii,,qton, ). C, (W. L. BASS.) 11 CUBAN SUGAR RELIEF. BRIEF-W. L. BASS. NOTE:- '-hle two lpges witil staltements in fiilures at tile end( of tlis article belong to thlis.:ndl(l shou)ll 1e glanced( at prior to readliig thle text. Planters' Price. The present ordlinary grades of Cuban unrefined sugars, though less than ()9; per ('cenlt. Ipure, are so r'at.ed. These ar1e obliged to pay an impoiort duty, whenlt of tlis degree of purity, of $l1.(i.8 1pr hlIn(ldred Ilpoul(ds. Thlis commodity has belen I)purcllase(d by tlhe sugar refinelrs lately, duty paid, for $3.50,per lhundred. Numerous cllarges, su(lc as colllllis.si(ons, freiltst, s1am1 -pling, meltlig, lighterallge, whlarfatrge, bIokeragel;(, s, (discount, interest on cllarge4, ete., cause tllese, w1eii ad(lded( to the import duty, to amoul t to about $2.00. In ()tlher words, tlhey vary fromll $0.20 to $0."(0 e lll,(dred poiunds, according to filal(:iall C(,ll(itions of tlle estate andl qu lity of tlie 1lprodlct. This $2.00 deductedl froml tlie $3.50, whlich is whlat tli, planter receivled \en s(elling; 9 per cent. f.. 1). in Cuba,) leaves $1.50. riFis coinimod(ity, w\licll tlie American re'finerl' l),r'(ses, can be refined with but sliglht at(e'itli in l(oss as (regl'rds volume, and b)ut slmall cost as regarlds tit expenseli of tlel refining. Tlie relative cost of these two (onlsiidertilns will together almount to less tliaIn $().25 pIe' huntldred' pounds. Increase of Duty. Tirhis ploduct, wlhenll r(efill, s tisl(osld of to tile Amllerican public at $4.75 per iu ndredl )on(ls. T'ie ( ii fl(etren(e between $84.75 a;11( $3.50 is $1.25. As statedl, whlen unrefinled sulgars at 96) per eent. puritv 1'2 are imported the duty was $1;68,-, and, regardless of the color restriction, thle duty increases at the rate of $0.03~ per hundred pounds for each degree of purity. Planters' Increase of Expense. Therefore, should the planter desire to import sugars, though unrefined, as high as 99-I per cent. purity, these sugars would be 31 degrees higher quality than tlhe 96 per cent. sugars, atnd added to tle or(linary duty would be 3- degrees multiplied by $0.031 per hundred, or $0.121. Adding tills $0.121 to the $1.681, the importer, if the color restriction were not brouglit into contsideration, would be able to import unrefined sugars as high as 991 degrees of purity by paying $1.81 import duty. The increased cost on tile part of planters of manufacturing of this high grade, though unrefined, sugars is equivalent to another $0.121 per hundred pounds, and which consideration can be added to tile $1.81, or to his estimated value of his sugar prior to paying the duty, and tlhe results are in nowise altered. If no duty were imposed in connection with tlhe color restriction on tlle importation of unreefined sugars, tlhe planter, a aan increased cost of less tlhan $0.25 )er lhundred over thie existing conditions, would lbe able to place upon tlhe Amlerican market an lappreciable quantity of unrefined sugar which he could sell to consumers at a price of $0.25 per Ihundred pounds under that which ordinary refined sugars were selling. Proposed Grant. Tlie $0.25 created by the combined increased cost of production and an increase payig of dllties, added to the $0.25 less than the nmarket price of refined, makes $0.50. 1: Under existing conditions tlere exists a tliference of $1.25. The difference between $1.25 alnd this $0.50 is $0.75 and it is this, or on all al)ppreciable part of same, that it is proposed to affordl the Cubanl sugar planters anll opportuit to acquire. Limitations. All of the C(ublanl sugars will not be able to lhave tleil prices advanced to tlis extent, for in the course of primary manufacture there is always created low grade sugars, and these wo1uld liaIve to be disp)sed of to the refiners. It would not be exlpediellt fir the refiners to reduce tlhe current price of $4.75 to anly grelat extent, for tlle are not tlhe only ones tliat supply tlhe Anmecican market, there lbeing tlhe Louisiana:(l Beet, as well,as the 1lawaiian and1 Puerto Rico suglars. With tle operatilg of tlie lproplse(d mexsure, tlie refiners would not be afforde(ld an opportunity to handle or refine, as at present, very nearly all thle imported unrefined sugars. This would lessen tle volume of their operations and plrompt tleiir maintaininig $4.75, and even h ighler prices, fbr tl.e refi ned gra ((les of sugars, andl inl doing so woul(t maintain con(lditions sufficiently advantageous to tie Beet, tlhe Louisilana a(nd tlhe high-grade unrefined Clban, products, as well as their own refined products. Existing Restrictions. In the course of time tlie refining interests have secureld a restraining control overall tihe brokers or jobbers, and this, combined withl tle color restriction, has prevented tile importation of these high-grade unrefined sugars when local prices raln high. -1 Prospective Independence. Should the refinlels attempt to buy up tle volume of 99- per cenlt. sugars, fIor the pullrose of preventing their being directly nmarkleted, alleginlg it to be for the microbial )benefit of the conlsulller, tlle feature of the Cubans being able to ilmport a sufficiently high-grade unrefined sugar tl:ht colulll )e marccketed directly woul(lo oblige tlhe refiners to lhave to p'y too higll a price for these sugars. Thle lrefilners Nwoul(l no(t buy tilese high grade unrefined sugars, but confinle their refilning olperations to tile low gradle inporttel:11d local unrtl efined sugars. Double Cause of Existing Depression. Tlfe present abllrlmnal (le)lression in the price of unrefine(d sugars is (du tl ( thle existence of two artificial con(litions resulti ng fr'om leg'islatioii. It is not cxcltusivel(l1 tlte iresult (of either one of these condllitions Ittut (f I:otl/. No sinigle legislative mleasure can r'emcedy 1)(thl evils. Tl'ie unsaltisfacltory evi(lence tenldere(d to tlhe Ways 1lnd Means C(lolnl i tt(tc w\\s due to tlie fact thalt miany individutal s witlh but tlie sutperficical knowle(lge of the onetlhe ciarte l cad biutty-a-nd no knowledge of color restrictiIon, coInfuse((l tile two) tpr'oblllemls. It is state(l thlat tllt chlielfof tlie United States customs, on January 30, 19)()2, at Washington, admitted that thlough twenty-five years in the business he did not know wlhat constituted tlie lifferenice between refined and unrefined sugafrs.. Immediate Possibility of First Relief. Tlte one of tllese evils, anlld wiici is thle more closely associated wtitlh tle Cu(llban crisis and lying within tihe ilnmenliate p)rovince of' Americanl legislative relief, is the differential dulty corr(eslponllilig to tlme color restriction. 1 5 The existence of this obliges, unlder any and all circumstalnces all mtire/fincd sugars to be dlisposed of exclusively to thle A nercai. refiners. All efforts exercised b}y the r ef li inlgi inlterests il tlie past to control legislatioln 1have beelel exclusively dlevoted to the retention of tilis feau tire l ill tl(he Anllerica i tariff law. This regardless of' what dlutlits were ' i lllos(e, or even when tihe duties oi1 so-termed raw sugaris were e'C)nrovcl, 'I'o the refining interests, so long as the " color-resthriction " duty remainls, it is abslutely iitriaf wllethllr there be no duty, thie existillg lutty, or tdouOlle te pitresent duty imposed on all unrefined sugars, p)rovi(lingt tlle color is restricted to what is ternle(I tlie f16' i)dch standard. Stability of Government's Income. As t Ie rem oval of this itrt ic ularI fe:ture (loes not in any wise alter the ( overnIm-leiit si incomne, (loes not telnd to depress tle e i) ic of sugars i trel:ti, on to loc:al 1prodnuctioll, tlad does iot tend to raise tlie lpice as Irega''ls l()cal consumption, but merely removes th(e mllonoi()listic Iower of the refiners andl specificall\y,bettiers t11(he con)litionl of' tlhe Cuban producers, thllre is (no rel ctaicel to (advanllc this measure for consilder(atilon;a11 ill t11( hopells of its being ad()pted. Future Possibility of Second Relief. Ill'ie oftller, or' seco(nd(, cal; of tlie existiOng ldepessioll il the current lrices of' sugalrs, t(o tll t c(xt(ent whllichl it is reasonable to term abniornal, is (due( to tile( existell ce of such European bounty, wNiicel is direct ill tlie lbounty sense, and id(lirect 1lunder tlie cartel Iregillie. 1 (i Thfe American refiners being able to secure tlis unrefined commodity at at1 abnormlal low price, are able to directly deplress tle value of all unrefined sugars pro(ldced within the United States, deliberately undersell tlhe local beet production, (as lately illstalced in tlie Mlissouri valley), and refrain fromn lowering the market price of tlle refilled comlmodity to tlme American public. iTis catrtel al bounlty issue is onle which} more propcrly pertains to a conlsideration of tariff revision. It will be necessary to take this subject up at no late ldate, butt as it is independent of the Cutban situation, it is here merely mentionled. Disposal of Any Percentage Reduction. A 25 lper cenlt. redtuction of i rllort duty, without ally itlelntion of color restriction 1and thle (lifferential duty correstloldi lg thereto, would siin ply afford a p)ossibility for someb/ody to get 25 per cenlt. of $61.68., or $0.42 tliat tlie United States Governliient is aIt present receiving. For tlie first week tlhe Cuban pltanters would get $0.30; tile secoind week $0.20; thle tlhird week $0.10, and at tlie epdl o-f ( pci',Itf' (te / e.emp)tion of dulttv as l;il,'e rlat i t( ftree ( c ba's "products." 24 The following was addressed, withi special (elivery starmps, Thursday, January 30th, to several of the Beet and1 Lotlisitan rtep)resentatives, but nlo o(1e responlde(: IlE FA IRFA X, \VASHINITON, D. C., D Janutary 30, 1902. I)EAR SR1t: ''The CubIan sugar question, as regards a1ll Amlericaill sugar inlterests, is nOW at its mnost dangerous,tlLase. If no imeetasure of relief is granted to tle C(ubans it will be interprete(l -as anl efiort malde to precil)itate a~nnlexatioll, anld meanwhlile c 'reate a trelmendous hue and cry, wvhichl is liatile to prompt tlte A(lministratioll to adtlot siuch a me1 lsure las in t|heir judgment is ttle readliest, reglard(less of' its proplriety. With the prospect of (Cuba not receiving ally ilnediate aid, the elements lwhichl have been so much concerned il the inmmlediatte lpast (re liiable to become neglectful, a(nd not )be onl hlanl at a latter (date to suitably op)pose some hlurried( and (lalgerious nmeatsure. Several gentlemellll ave alrea(ly illdictetrd an' appl))roval of the lmeasure lereiii bl}iefly otutli ned. Yolu tare respectfully invited to Cattell(nl (a mleeti tg at r(ooml No. 165, tle Fairfax, 14tlh a-nd F Streets, att 8 1P. M. shlarip, ThIursday, January 30)t, to consider this (question. If tIhese i(leas in a Ileasure meet y(ur ap)lroval, alnd c(irlcum.stallces will not I)ermit your being )present this (,evllinlg, woull!(ou kitndly take te t trouble to, write aI)tploved,(l your n(ame 111(1 a(ldress, an(1 return it in tile e(tclosedl envel(ope, with such coln111ents tllat you care to imake, whichl will be carefully entertaine( andl gratefully 'rcei v ed. lThnl~king you in anlticipation, I renmai n, dear sir, respectfully, WXV. B.ASS. With) this wast enclosed copy of the two-pge suggestion senit to the President, indicating the at),proval (and (advantages clainied(, an(l special ldeliverv sta ll)ed 111d a(lddressed lettln' evelo()l)es. 25 Suggestion for Cuban Relief Measure. [Prcsentation of. Jani ary 29, 1902. W. L. Bass]. MR. CIIAIRMAN AND) (IESNTLEMS I EN OF TIlE WAYS AND M EA NS (.,'COM)MITTEE. 'Tl suggestion wlhiclh I have thle hlonor to respectfully submit for the consideratiol of tle Honornable Chairman and Gentlemen of tle Ways land Means Committee, is in relation to thliat wliicll many individuals, well versed in the intricacies of the sugar question, con;sider anl appropriate measure to be tendlered for the immlnediate relief of tile Cubanl sugar ilndustry, and(1 one devoid( of all hlarmful influences or results. It is exactly tlhe olpposite of anyll percentage reduction of American d( uty in favor of Cuban p)lodllucts, particularly tlhat of sulgar. It is entirely (listinct fromn any Suggestion to relmove the differential (luty 1on refined sugars. Tt is the (lesire of tile Ad(linlistration, in tle understanding of imany, to assist tile industrial resources of Cuba in such} a Imanner as will not tendl to precipitate annexatioln. Is it not tle (desire of tlie Administration that, if there is to be an1y annexing of Cuba, it Inust be instigated at the express (desire of its ihallblitan.ts, an(l this after it has l)eeln (Iccordle its political i(lentity, and devoi(l of pressure? This, in order tllat tlherte iay lnot exist tile least trace of lany infilence havilng br een brouglt to bear, by tle atutioritites of this gre:at lnatiOIo, whichl htistory nmay record as a subterfuge to (leprive tlie Cubans of thieir promised li berty. Tile plurpose of this 1)reseitation is to have you consi(ler tle prolpriety of granlting at an early date, at least the exemption of the diferevntial (duty ont the Cutban unteflied sugars so long as the Isltand remains unalilexcd. And un(der no circuinstance to grant a percentage reduction without a(dding the exellmptiot of tlie differential duty on ut^nrefined sugars. If, in your judgment, the Cuban plallters should be deemed to be deserving of both a percentage redeuction of duty on un.'frefined, and also tle exemptionl of the difterential duty on unrefined sugars, tlle Cublans will have to Ilpl)oinlt a m1ore conp)etent one than mnyself to express tlheir tlhanks. In sticli an instiace, your a(ttention, hiowever, will be calle(l to soine disastrous conditions of thle domestic sugar prodlucers, at a time removeed ilversely in proportion to suctl percentage exemption of duty as may )e granited to free Cubla's pro(lucts. You Ilave already been requested to refrain from adolting taly metasure which woull oplerate to, tle dislad:lantage of the many, blothi in and outside of Cuba, alnd tendl to (demnoralize tlhe resources utpon wliicli tile Island Imust count for its revenue. Whaltever may be tlie stattus of Cuba, in tlie immie(liate or d(istant future, thlis imeasure will ill 1owise cause any complications, for it is purely industrial and Ilon-p)olitical. 'Tiis measure is offere(l as a substitute for ta percentge re(luction of duty, ald is one the nature of which will not in anywise impair tlhe income of thle Federal (overnllilenlt. Th'le plan involves merely providiig for tile Cubans to Ipay as much duty as at present, andl should they elect to pay eveI hligher duties, they will be financially benefited at once, and this without added capital or time in which to 1prepare. 27 T'his measure is applicable at once or later, witl Cutll lunannexed, all(n with restricted trad(e relations. The (lay that Culba becomes anlllexed, an(1 can elljoyl the commnercial a(tvanltages of the United Stattes C'ostitution, either by thle direct provisions of Congress, or by virtue of Congress fiaililg to act, tlhe Cuban s.ugar mlanufacturers will be largely obliged to help tlhemselves by mleans of tllis proposed meassure. This measure lias tile advantage of beinlg one which the President caln be judiciously advise(l to institute at once, regardless of Iany legislative delay. It will in nowise interfere withl tile existing arranigements for the Fe(leral (o()vernmlent's income, on tlhe col trarv, p'rompt an increase. It is mlerelv necessary thaJit the di/tfrenittial (1dites, in, connection wuith color restriction, of the existing tariff; on unrefinedE Cuban sugar rs be ignlored. 'rToughl tile evi(icllce, botll material and sentimental, which hlas ttaken upl so much of valulable time, might prornmpt llmany, not verse(l in tlie intricacies of tlie sugar business, to consider tlhat a, percen:tage red(uction ol unrefined Cuball sugatrs was tlie recadiest mea.ns to effect a desirable relief to the Cubanl sugar ilnduistry, tlie attempt is nevertheless undertaken to Ilalce this subject before you in a liglht other thani as heretofore preselteld. A percenetage reduction on nIrefined Cuban sugars would work inimeense lharmn in the very quarters which tlis honorable bo(dy would not, under any circumstances, deliberately or knowingly plan.,. to effect. Permit me to tlank the Honorable C!hairlman and Members of tills Commnittee for tile opportunity alfforde(l to present the suggestion, not in tlhe interests of myself jalole, but of a nurmber, the magnitude of which tlhe morrow will best indicate. Those most interested in this presentation of the sub 28 ject are the Cuban planters, be their nationality what it may, as well as every cane sugar planter located elsewhere than or within the bounds of the United States and Cuba, whose exclusive market for his products is this the United States. This proposition has not, up to tills time, been sifted out and prepared for a concise presentation to your goodselves. For a more ready understanding, tile terms refined and unrefined will be used, the latter, when used in connection with sugar, corresponding to the current word raw. (1) We have to assume that the existing duty on imported refilled sugars is a legitimate protection for any grade of the domestic refined sugars. (2) The duty on what is currently termed raw sugars, or, more properly speaking, unrefined sugars, must be assumed to be botlh a legitimate and necessary protection for American made sugars. Time has demonstrated the propriety of this duty as a protective ineasure. Without it, it would be absolutely impossible for any sugar, either cane or beet, to be produced in tle North Temperate portion of the United States in competition with that of any civilized and purely tropical parts. (3) There is a differential or color restriction duty imposed upon the higher grades of unrefined sugars, and this it is proposed to concede to the Cubanls in their present straits. This suggestion, which is presented to this honorable body is: If any relief is to be accorded in the near future to the Cuban sugar industry, and apart from any measures which may effect other conmmodities, that such relief be: 29 The removal of the differential duty, or the duty corresponding to color restriction, on Cuban unrefined sugars imported into the United States. Ample testimony is already in the hallds of the Comlmittee to the effect that such a measure is approved by the following interests: (1) The American refining interests. (2) The American Beet suga:r interests. (3) The Hawaiian and Puerto Rico sugar interests. (4) The Louisiana sugar interests. (5) The independent Americanl 1)platers, whlo (are imlporters, alnd located elsewhere than in Cuba. (6) The Cuban sugar planters themselves. The advantages of this suggestion are: (1) It does not decrease the Federal Governmenlt's income on unrefined sugars. (2) It affords a prompt an1d nmaterial relief to tle Cuban sugar planters. (3) It leaves the American refiners protected withl the differential duty on all imported refined sugars. (4) It leaves the Louisiana unrefined sugars protected with the existing duty on imported unreJfied sugars. (5) It leaves the Louisiana refined sugars doubly protected(a) By the existing duty on unrefined; and (b) By the differential duty on refined. (6) It leaves tile Hawaiian and Puerto Rico sugars, refined or unrefined, correspondingly protecte(l, the same as the Louisiana sugars. (7) It leaves the American Beet sugar Irotected by a double duty(a) The existing duty on unrefined; and (b) The differential duty on refined. (8) It leaves American planters in Cuba and elsewhere materially protected. 3)0 (9) Whiile affording immediate relief to the Cubai planlters It does not tend to demoralize, wlhether free or alnnexed, tile fuiture economnic coll(itions of Cuba. My task is nlot to lplay upon your fancies, or to deceive you, but to place bl)fore you ideas, not only in the capacity of tle legislators, but of judge and jury, on the proper utdleClstalll(ling of whicll depends the happiness a11d welffare of manLly fellow-beings. Under tlle circumstanlces, an effort will be made to p)romnIpt youl to lhesitate prior to deciding to extend a percevntage r'cdtctioo o(f (ltty on the unrefined sugars of Cuba; for it is a lmeasure wvhiich would work untold misery upoi inanyv, iositively )benefit no one, alnd prompt regrets. It lhas been statedt tlhat the Amlericanl refining interests approve(1 of tllis suggestion. You will pardon mly recallilg to your memory that wlichl, without (ldoblt, you are alrea(dy familiar witli in this conllcctiol. It is tlhe fact tlhat there are in this country: A refiriut.q interest p 're and simnrle, and A (o),ie'dl m(Utni afact s'iuring an re fining interest. l'lle form(er oplerate with a purchased primary product land the latter pvroduce the primlary product andl refile it. Tlhe first are Iere referred to as thle refiningll interests. An uinlerstan(ling of tlhe otlhers is best reaclied by considering tlhem of tlhe same category as the American Beet Sugar Factories. Furtlerrore, tlie fact that to these refitingq interests it is immaterial wletlher there is levied any duty by this Goverinment luponl '.tute'fiseC sugars or not. So long as tlelre exists tlie (luty on refined sugars these interests are fully protected and should be satisfied. Sucll, however, is not tle case with the American Beet Sugar ITdustry. Tle refining part of this business is dependent uponl the protection accorded to tle ordinary 31 refining interests, but it is furtliermore dependent for the protection of their production of thle primary product upon the duties at Ipresent levied upon the n1 -refined suglars. I trust tlis makes cle(ar to you, genrtlemenl, the inditference on the part of the pmtrely Wc/in/iLj intcrests, as to whether a small or large percelllt(ge lreduction of tlhe duty oln unrelnfined sugars is glranted to tlie (_tCuLban sugar interests. Mr. Hawley apleared before you, not il tile (caltacity of a refiner, but of a (Cuban pllllter. Mr. Post, of New York, did not ap)ear }bef'}ore 3you in the captacity of a (Cuban planlter, 1but of at refiners' broker Cland refiler, and indicated to you thle indif( rene to hlis interests of any met:1asure so long as it ldid lnot take; off tle duty on refinfedl sullars. As lonIg as no step is contiemillitetl Wtic} wiill in alywise redluce tlc existi g (luty (ol rc(jic(d s,/rta'., f trust it is evident that tlie lproosition advanced involves no menace to tlie refining iiterests of tllis counltry. To substantiate this assertioll you wVill )(lperit, me to quote fromn tlie letter, if' I mistake not, from Mr1. Joln I ). Spreckels, 'President of tlhe Splrekcls Sugar Comp)any of Sail Francisco, an{dl wvlicll was I taddlIress(ed to onel of thle members of tllis ltonorallle Commnittee, Mr. Long. I, n this tlie statementl is specificallvy Inalll(e, tt I:at, "shouild Colngress oleemn it advisablle to nmake a rteason(., ablel reduction onl raw sugllrs from Cubal), we, as beet suga1tr aIllnlu" facturers, can stand1l siucl a rdcl luc(tiion suc tal liff,:and "still, witll sucll dlccrelsell du(ties, tel alssrled o(f t l egit i" ate 1,rofit on tie a(ctual lilolnel in vested.' rThle foregoing applroval is 1 lmaltd il ti e ca l,)acity of both 1)eet sugalr manu fatturers land is re tfiners of b(eet sugar. If, in this connection, ftl'iber sumbstan!tiatlion ho neces 32 sary, permit men to quote from another paragraph of the same letter: " Wlhatever concession, however, is made in "thle duty on raw sugar, we desire your co-operation for " tle continuance of thle protection on refined sugar iirportedl from any country, as any reduction in said duty ' would cause more general lhardship to beet sugar manufactures tlhan a realsonable reduction of thle duty on ( raw sugar." We hlave a specific statement tlhat, so long as the duty is nlot affected as regardIs refined su'.gars there is no objectioi to such i steps as imiglht be taken with the view o reimoving some slight restrictiont upon raw or lunrefined (JCubanll sugars. Thle next assertion was to tlie effect that this measure l1as tlhe endorsenment of the American beet sugar interests. In this connection l)ermit me to call your attention to tlhe indications repeatedly made by the representatives of the beet sugar industry before this body, and whlich are alrea(lv in the records of tliese hearings, that tlley favored thle removal of tlhe differential, or color restrictioll, in preference to a percentage reduction being ten11ered thle CubanL unlrefined sugars. To inidicate to Vou, gentlenmen, tle harmony of interest whichl exists between tlhe beet sugar element grouped 1und1er1 tlie leadership) of Mr. HI. T. Oxiard and tlie Spreckels Sugar (lompany, ot San Francisco, permit me to quote from the abotve referre(l to letter, " Slould Congrless deem it advisable to mlake a reasonable reduction oi r1:aw sugars front Cuba., we, as beet sugar imanufacturers, cant stLand1 suchl a reduction on such tariff, and still, witil such decreased duties, feel assured of a legitimate profit on tle actual monoey investment." \itl tile foregoing, tlhe approval of the American beet sugar interests is indicated. 33 The statement is made, tlhat the idea meets with tlie approval of the lawaiianll a(nd Puerto Rico sugar iiiter. ests. T'Ilie pllailters of btotl localities to-(lay enjoy the privileges of lmal ufactturitlg and ilimporting into the balance of the counltry any grade of refinled or unrefined sugars which they may elect to mlake, or whlich is tle more readily p)r;duced with such equipmnlent as they have in their fattories. The meclhanical status of the Puerto Rico sugar illdustry, it is true, is far belhind the lage, and no sugar is refinled ill tle Islanld. Th'e Hawaiian planters, on tlie contrary, thave the most apI)proved al)1)liallcs. Botli of these communities, tle on e situated to tile southeast and: tlie othler to tihe soluthwest, are located within tice l:urely' troI)ical zoine an(l are thuls able to, enjoy all tlie c(orr'eslpondilng climatic advantages. Being within tlme United Stutes, they enjoy tile double lprotection (1) of existing duties onl unrefined and (2) tlie correspond(ln g dtuty on refined sugars. The slugar planters of both comimunities are fully aware of tlme results which would take place in their respective l)callities were a simple percetttage re(dluction concede(l, either recilrocally or1 gratuitously, to thle Cuban umlrefillned sugars. 'The gentllemne l who upheldl c tlie interests of I lawaii in tlhe presence of this committee ad initted that tlie condlition of tile sugar indulstry in tlhat localitv readlily permitted of at least a: 1() Ier cenit. favor t(, tlie (Culbans. Uldeer tlhe circumstlances, tile IIaxlwaiian sugar interest. can (not offer any well founded oibjections to assisting tlhe Cuban stugar industhry as long as it is not by, a p)ercentage redluctioli, but rather a meIlasure to afford tile Cubans an opportunity to assist thelmselves without materially affecting tlme many American sugar interests. 34 The stateient is made that the, prolositionl bears tile approval of the Louisiana interests. While aware of the circumstances tlat when the subject of taking off a differential was bro(,aclhel beflre this hollorable body, anl opposition was indicated( f'roI ailo lg some of the Louisiana constituents; this assertiol lnevertheless holds good. Botl inl lan industrial and ptoliticatl sense this is a country of Inljorities. Such individi(uals in Louisiantia,as priml'ily 1)ro(luce( a refined sugar are in a mlarked lnilority, ad( il fact are rlated as refiners. These alrea(ly elijo\,y (louble plrotectioii, andI will continue to do so evell slould tlis suggestion be a(dopted. rThley have the p1rotection corresponding to tlhe unrefirned product and tlhe adde(ld protection oil thle reefined product, and they ar e not to be (accused of being unrtea.sonble. 'lne i s e neu Icproposed surely leaves tlhem too well pr)ovilded for to warrant ally (opposition on tlheir )art to wlat is p)roptosed(, for lany otpposition in thlis isltance is liable to work disastrous conse(quences uponi their Louisianla atid1 othler associates, as well as themnselves. While recognizing that a large plroportion of tlhe louisianat crop is in the form of high gradle,unrefined sugars, it is nevertleless a faict tlat tliese planters of high grade unrefined sugars, as well as the p)lanters whlo p)roduce lower grades, lare fully alive to tile differenlce which would result to their interests by granting to the Cubans s percentage reduction instead( of the removal of thle color restriction. Even a slight percentage reduction of (duty in faivor of Cuban sugars would have the effect of inmmediatelv lowering the value of every poulnd of Louisiana sugar whicl is det!endent for its marketing upon the local reti ners. 35 It is indeed( difficult to conceive that, in ain extrem'ity like the present, whten somecthing is surely goiing to be doule, that the well-informed Louisiana platnter, with a full understcanding of the terms color restriction on ~ unreiuited sugars anlt a ])crccfltage reduction of daty, can be found who would piprove of grantiting the latter to the Cubans. I'hie next annmouncement. was to the effect thiat this measure wa-is a-ipproved of by the independent or scatteredl Am-ericanis who are sugar planters, have exclusivelv the Uniited Stlates for their market, and happen to be locate(1 elsewhere thanr in Curlbf-ba. rphese understandl that thie gre~at Cubani crop of mnrefi'Zcd sugars coming to this imarket anIl enjoyinlg aI )ercenttage reduction of custom (luties, poerinits thre refiners, wlio are the sole pu'chlasers of all vwatre fined imp~orted sugIars, due to the existing color restrainit on unrefinedl sugtars, to bear down or lower the existin(g low price of unrefined sugars front botli Cubla tand elsewliere. This will result for thie reason that when the Cubans enjoy a 25 PCI' cent. reduction of import duties they will hIave no reluctance from the very start to lpart with a slight or even material part of this adlvantage, so long as they are, able to effect a ready sale of their product n~ld still enijoy some actual advaniita-ge over other lrodlucers wo10 dO not Imappeni to be located in Cuba. This is on the one handl. On the othier, the cartel sugars of Europe, ever prepared as they are to be (epresse(1, is an important factor for consid eration. Between Europe:an kartel sugars and( reduced (luty Cuban sugars, the mn arket value of imiported and local unrefined sugars can be readily depressed far beyond present limitations. It is in this process of reduction that the advantage that it is alleged will accrue to the Cubans, by the granting of a percentage reduction, will vaporize. 36 There are many Americans most materially interested in thlis particular feature, and these more than request, they implore you to consider this feature. The sixth assertion is that the Cuban planters approved of the proposition. No surprise should be occasioned by this statement. Every Cuban sugar planter hopes that some assistance may be tendered to hin at an early date. They are not concerning themselves as to what may be the particular grant. Their ideas vary. A few desire annexation, regardless of wlhether tlle United States Supreme Court will allow them the commercial provileges of the Constitution or otherwise. A few desire annexation but witlh the specific condition of enjoyilig absolute free commercial intercourse with the balance of the nation. A few desire percentage reduction in the inmmediate future, regardless of its consequences, and whether the Island be annexed or continue as anl independent community. Many will be satisfied to enjoy, until the Islald is annexed, the commercial advantages which will accrue to them wlen tendered the privilege to import any grade of unrefined sugar, anld pay the existing rate of duty, provided tllat the differential duty corresponding to color, or, as it is currently termed, the color restriction, be removed. Tile importance of this apparently insignificant grant, and tlhe magnitude of the advantage tendered to the Cuban sugar industry can be readily mlade clear to the gentlemen of this Committee. What would be the status of tlhe Louisiana, tlle American Beet, the Hawaiian, or the Puerto Rico sugar industries, if by an act of Congress either of these were to 37 be denied tle privilege of locally marketing any sugar wlhich was not refined, and were obliged to dispose of all unrefined sugars to refilneries? This question best ilndicates the actual coitlition to whic imlported unrefinied sugals are subject, a11nd whlliCl results solely froml the llailltaining of tlie existing differelltial duty for color on i lllported l r(efibned sugtars. American plroducers of unrefined suugars recogniize what ( natterial adv.antage is tlliis, viz., thle lprivilege to disl)ose of h ig 1 grade uJUnrfiecd products, regardless of tle extra cost of tleir 1,roduct ioll. The removal of the diffterential duty, or tliat corresponding to color restriction on unlrefined Cuban sugarts, will iertllit tle Cubant planter to, dispose of an unr/fincd sugar att a price malterially above wlitt tlle Americn r1efiners will offer for them, wlhile the Americaln public will be able to acquire tlie various grades of botlh i-mported and local sugars at a sliglt reluction from tlie lprices currently maintained. Tlhe beneficial results of suclh a( measure would take effect almost ilmmediately upon its adoption, or at tiie latest within thlree weeks, and in many instances at an e(arlier dlate. Tlis, fromt tlhe fact that many estates on tlhe Islatnd of Cuba 1have tlready plrepiared for such an eventuallity. Every factory in Cuba)l would only have to disburse from $150 to $500 to install a sull)ltur furnace and batlh, or bleaclhing outfit, throtughl wtlicli to pass the juice wlhen it was being plumnped from tlhe mill to the next step il tlie process of' nzm:nufiacture, purge lhot, and rillse the unrefined sugars wlhile in tlme centrifugals. These bleacllers would require a week to manufacture, a week to slii, and anotler week for local tratlsportation and installation. Many would be constructed locally. When it becomes kniown that a hearing has been 38 given to this slpecific suggestionl, manly planters will not wait for tlie measure to 1be adopted, but install these bleachers iin anltici)pationl. The hlarml inisteadl of the benefit wlich would accrue to the (/)Cubant sugar interests were a percenltage reduction granted, iiistead( of the remiloval of the (lifferential duties on tlire fin)ed stug/arrs, lias been referred to. rThle value of their unlrefiledl sugars under no circumstallces woulldl e bellefitedl by the entire amount of percentage reduction granltedl, so long as the differential restriction oil 'utirefli'J, rellained operattive. l'l'tose lwho ehave been lhonored with the task of pleadill the cause of the Cuba:)n sugair interests might have platced before this honorable body the petition to graint niot only 1a nmterial p)ercentage re(luctioll, but the removal of the (ilitereential on unrefinled sugars, all thlis accomlpanlied by tlhe statetment that anytlhing else, other than t'ree trade twouldl not benefit tlemi itn the least. The subject lhas been hereil considered in connection with the conteimpllated granlting of a slight percentatge reductioln, say to tlhe exteunt of 25 per cent. The various influences whtich becom le trilmenltally operative to all coIncerne(l, should a grlant of )percentage reduction, lowever litnited, be1 madl:l e,l are aggtravated wlhei thie percentage is increased to, sty, 50 per cent. or 75 per cent. Every one en;lglated in tile capacity of mnaiiger or owner in thle m tanufatilcture of sugar recognizes tlhat tilis Imetasure will tafbford pr{ompt tand mnate.rial relief to the CuLban platers, lwh icl n n 1ot be disproved by anyone, whether plauiter o or tlher. It will take tlte form of permitting himi to get some part of tlat ever existing difference, between tlhe price tlhat the refiners wo(uld give himn for his present differeltially restricted tnd(1 unrefined product and the price tlhat the refiners are selling refined sugars to the American public. 39 This difference is idue to the duties onl bottl tlhe unrefiled and refined suglars, atlnd tlhe differeltical onl unre'fined sugars. At present it is applroxima tely $1.25 per I)u1 I I d red. What the Cuban ptlanter can aclquire by hlis owI1 re(adi means sliouldl thlis SUggestionll bCe mat(e olera'tive, is readily seen to be equivalelnt to( minore tlin lie could get f'rom < 25 'per cent. lreduc'tion of e(xisti lg duty, or' t-2 cen ts l)er lundlred. lie is alt pIreSenllt receivitll ti ir hiis reldatively i ll ( Ilde a(trefiaed p)roduct approximalltely but $1.50 per( hInidi' ldred. Thie unrefined( ii n ported suga ('s, (Iltyv paii 1, are at, $3.50, an(1 the quotation o(f this commo01 dity af'tr ) eiig r'efi'nc( in the States is $4.75 (see quotationsi of J.Ltliaary 25, 1902), lea:ving a dlif'frence of' 1.25. 'This Ivy not appear as much, but any p)iart of' $1.25 added to $1.5() is not to be ligiltly considered by sugar pail;a te.trs. Of tihe $3.50, inear ly $2.00 sliould 1)(1 dedu( lctled fr iflri port duty and cliarges. Thiis $82.00 taken from $3.50} leaves tlie (Cubat1 or otllie;r i1llporter' at,resentt wit lh a littleI over $1.50 'per Iulltdred ipoundls. 'ThIe CubaTn planter liats but to sliglltlv illprove I Iis product (at no appreciable( expense), and lpay sligtl t increase of ilmpiort (lduty, (correspond(litug to thle Iigileir lpurity),tll dhe is inilldiately afforded ai opportullity to secure a pa}rt of tile $1.25, )but (not, aLll, ec'ca:1se IIis proluct is still tuntl'fi'nd. To o()ie not actually engrage(l ill tile mallnufacture of sugar, it might scete strange tlhat thle C(luball sugar planters could be aided by atri'agiig to have tlheml, if they so elect, )pay highler dtlietis. Sliould thle Holorllabl)le (lairIaniua ofa the Ways andI Means (Corllnittee inllui're of a neuttral suga;tr 1)laniter, say of Jamaicsa, if lie woull Ic s;atisdfif e' witl tle remtovsal of thce difeoi'ential iltv or 0)1' Irestriel oil, thle iplll)-()itance of thlis suggestion would b eh e ade further nmanifest. 40 It is a measure whiclh, should there rise any international controversies in connection with tlhe most favored nation clause, the President may, without detriment to the interests of any one, concede to any and all applicants who lmay not haplpen to be asssociated with any )bo0tnty. 'llhe extension of this grant, to otllers t'hanl the (Cubats, will not be detrimental to tle interests of the Cubanll )lalliters, as they are, by tlie status of their meclh(anlical equiplment, well lrepalred( to prod(uce ttle higher grades of unrc fined sugars, alndl thlus be p)rotected (against suclh conmpetition as mtiglht inlirc('tly arise in connection with tlhe importation of low grande Java and Plhilippine unrefinecd sugars. T''le delay il presentinlg this specific suggestion was Iue to the'demonralization tihat restilted from the consternation tliat existed atmong tlhe nunerous interested parties, whien it became evident that tlie relief to tlhe C(ubans, itn that whlichl effected tlhe particular product, sugar, was to take tlhe form of a s.imlple percentage reduction of existing duties on unrefined Cuban sugars iniportedl into tils country. Trhe feature of wletler it was to be tendered as (a reciprocall or maIglltaimous lmeasure Nwas not a considteration. It was not until tile termination of tlie cearing on Sttulrdy, Januarly 25, 1902, tlhat it becamltle apparent to tle variouls factions tlhat each( (of tlle five, wliicli were liable to be so violently affected(, a(ld whliichl itad1 apparIetly opp)ose'd any relief to tlhe Cuban stugar interest, were unanIlllm us in tlhelir entertatining no reluctance to l:hve tlie Cubtia sug.ar intcrcst assistedl along tlie line of doing a:vway withl tlie differential duty on unrefiind sugars. The many advantLages of this proposition, in so far as 11 it leaves unaltered thle numellrous existing American interest, does niot require to he enlarrged upon. tuey, have already been alnnoul ced. Inl tllis yo(tl have preselntedl n1 ('lp)letc.,fgestiont,, Viz.. the removal of the (tiffeirenti!i (tl!/, (or tllat corresp(ondilng to color restriction, upolIn Cuban,, reffieed Sugars Imported into the United States. NMark Nvell tie tlerimll ur eficd. Thlis plroposition does not i volveo I thle remlovalt, to, tile detriment of eitlher tlie Fedleral (:)vernment's i com)ne or Amlericlan pro(lucers, any l)pat (of tiie dutity on cithler unrefined s1ulars or refirne s. tt(/ 's. Tlis (lif erelltial oil i llio tte! )tilrefi ed sugars, tllougl apparentlv a 8 i nsig, ific l(t Itat ire. is, 11vertl1less, a1 grievous restriction, illit its r(h,;)oval l woulld promplt mnaterial relief. Its existenlce( wVorkls harit to botil the American an(l othier uroducers as well 11 thle American consum ers. \Vere this suggestion (otIte(1tre(l fI t;e lpulrpose of cornpliceati0ng a111itters I before tlls 11monorllable (Conllimittee, tlis p)lesenttioll wo\\ld stop 11(her. lBut such) is not tll( case. lie ilurpose of propo)ing i this 1(measuire is to 11istel an(1d not to d(elty y s1cli steps:is ny 1l ave f(or their pl:urlose t to provide for an iIit me(lite relietf lf)r (tlu1ba. In tile furtherwords, rcfi~c( aldl u(ftref(ed.. ol raw, stlgrsi, is giv(eI. LIet(find sutgars ae -11(su11c 8s ive weei 1 i11f8iactturedl in connection wit i the use (of vivifd tll eblack) l, by SOmTe ternled anitimal charcoal, adi' others ' ehar.'' Uirefied, 0or raIt, sugars r sh as hiave been 1i anufaicturedl witlhout ti us( of( thiis 1 oneblack ' or " cIlar.' rTjhese (detinitionls are sp)ecitfic, i(nd lold( good for the nmany grades of botlh refill((el 1ad unlrefinel sugars, regardless of tlheir degree of tpurity. 42 Unrefitned sugars vary froml ttle lowest to the very highest degree of purity. 'o produce the latter in an unrefined state is a wasteful process an(l seldom practiced. Refined sugars are of varlious gradles,f purity, for when the refiner supplies himself with unrlefined sugars hlis entire refiined product is not exclusively of the highest grade. Th-is measure, if adopted, would pIromnpt such advaltageous conditions, not only to tle Cuban sugar industry, be the political status of tlhe Jslalld wliat it lumay, but to others, alld prove of suchI a nirke(l advantaige to both tlhe American producers of all grades of sugar that at no distant date this body would be called lupon to consider the advisability of removinlg fro:n the tariff this particular feature, whicel is here suggested should be granted to tile (Cul)an l)lanters att thlis juncture. Tlie Press Iyv nlo meanls voices tlie ideas of tlle ilformed individual, for wlhen the Spr(ckels' letter was pIrinlted, parts lhereinl q-uoted were not tused. In order that no unjust accusation may be directed against such as hIave ()appear(ed before this Ilonorab)le body, you will permnit me to quotre from time Press, tlie following: " Anotlier plrop lias been knocked from under tlie beet sugar itmen and l tlleir supporters in Congress, by Prof. ' Jolin l;ssitt Moore." Profess(or Moire's evildence before tl i I lonorable body is sumlmarized by the quotatioln attributed to llim. " I ' am of tlie opinion that the most favored nation clause does not stanid in the way of tlie lutual reduction of; duties on trade with (Cuba." Mr. Chairmai and (Gelitlemen. Pern it me to respectfully inquire, if any ilndividtual has come before this body objecting to "the mutual redactione of duties on trade with Ctah, otr in otlier wortds any reciprocity?" 43 Colonel Bliss hias made maniifest to you the ab selic of that deplorable condition so widely announced by the Press. The indirectness of Mr. Hawley's replies to tlhe relealted inquiries in this regard need no recalling. JANUARY 28, 1902. WM. IL. BASS, Es(q. DEAR SIR: I am directed by tie Clhairmlan to acknowledge tlie receipt of youlr comlmunication of tile 26th installt, and to say tllat you can be heard on Wednesday or Thursday next-Wednesd(lay!)preferred. Resplectfull y, ItHULL (n]IvNFIlF, (Jler/:. TIIE FAIRFAX, \\ASI ILNTON, 1). C.,.Jtnary 2, 190()2. ionl. S. E. P. IYNE, ('hairiman iof the \VlWas tland Meatlns Co( mittee. I)EAR SIR: Permit me to respectflIlly,lace 1}(ef('ire tihe Ways and AIeans Committee for its considlenration a suggestion regarding a mleasutre for tlhe relief of tlhe ('Cuba sugar indlustry, othler tlhan a ])e(rcCntage red action of dutly. Ift the hearings slloul(d termninate as llmtters standl, at lack of teclhical understanding of the manaufacturle of sugar will, wNitliout dlonubt, llro(,llt the Commllittees to report a mtneasur'e il favo(r of a pt1)(4el1tage Ireduction of( duty fr t (Vnha II) seII d I o4)l t1he 1 levidlei(ce telle(lre(l to the Committee. Fromn t sa t ie eviWc1(,e ("l1 be ildlicatell teo tlhe Honorable NMembenrs of tlIe \Ways anl Means Committee tie fact that tlere exists a una llli lous accord to grant to the ( CuIan sugar industry anple assistance by other meansltl tlhan: a percentage reductioll of American import duties. 44 A nmeasure that would harilm io onie, materially aid the Cuban sugar industry at an early date, and be in every respect a most satisfactory move, a(nd in harmony with the prompting of the A(tdmiistratioin. Muchl Americ-:a capital wVill be swept away, many Americans ruined, anld no one lbernefited by a perceiitage reduction of tie dutyl oii Cubani sugars. In the interest of manlly largely concerned, of whicl I alim one, witi} ruin starting them in the face, I respectfully petitioii tlat you afford me the privilege of a healring before the C(ommlittee, 11ow that the situation is understood, the p)etty jealousies hlave leen afforded an opportunity for their venting, and a general awak ening and undlerstanding on tle p)art of the threatened interests has talkei place. May you, honorable sir, find it convenient to favorably consider this petition, which is of such moment to mlany, atlll afford me as 1muche titie as possible to complete my preselintation in a brief and coIcise a manner. Awaiting your pleasure, I remai1n, Itespectfully, (Signed) W. L. BASS. 4 5 Arriving at Wtashinigton on M~ondaiy, JanLuary, 20,,i)0-2 and at once placing myself iii Com111inuiicationl with the representatives of both the Beet anid the Louisiania sugar interests, I found that it wvas a case of pcersona noe I/rat a. Onl Thu rsday, Janua-ry 20", having atteni(led the meeting of the Ways anid Mleans CIommittee, at the en(1 ot' the a fternoon session, 4.30 o'clock, I was juirinmed. that th ee would be anothier hearing onl Frid~ay. Retirinig at once by the iielxt nioriiing aIt 10 o'clock, the following paper had beeni Irl.)1pare(] with a, view of' gainiiivg time by, assistingr in the (lelav of matters and to afford an op1)ortunitv to make at more specific presenitationi of the subject. Up to noon on F~i-lay there appeared nio opportuniity to make my presentantioni. I then hadl the good fortunle to secure the attention of Colonel Hill, of New Orleanis, who kindly presented mec to thie Chairman of the Watiys and Means Committee, and I wais afforded an opportunlity to present the followingW.LBs. Washington, D. C., February 3, 1902. 46 Cuban Relief-(W. L. Bass). [Preseltation of Janluary 24th.] Mr. CHAIRMAN AND GENTLEMEN OF TIHE WAYS AND MEANS COMMITTEE: To the best of ry understanding, the object of this lhearing is to determine, from such sources of information as appear before this body, upon thle propriety of affording some reluction in the import duties of this country to Cuban products. Tills being instigated by a recommendation of the President to provide such means, as lie witlin the legislative possibilities of Congress, to assist the industrial and political interests of Cuba. I believe tllat it is tlie intention of thle Administration to help Cuba, correctly, if possible. Cuba does not require any help. She requires forcible guidance. Surely tlie 'resident could not hlave contemplated a charitable loptling,ff of tile Aierican tariff if it were to prove disastrous to any American industry. Cuba is to-day a minor among nations, and not free to contract; therefore, tlhere can be no reciprocity. The task assumed by the American people, when they intervened in the interests of Cuba, was to establish such conditions as the people of the United States deemed essential for thle orderly carrying on of enterprises, the naintailnance of sell-government and the peaceful pursuit of life, liberty ald happinesss. In other words, to install il Cuba a civilization coiipatible witli tlhe Anmritcan idleas of self-government. A civilization developed by ttle adoptioll of institutions, which have beeni productive of creating, in tlhe course (of 125 years, tlhe United States of Nortl America in contrast to the group of alleged Republics on the Southl Americati continent. 47 With all respect due to the understanding of the gentlenmen present, permit nme to call your attention to a very sinlple fact. It is the feature of providiing thte funds witl whlich to maintain all of our local public institutions fromn immediate or local taxation. Throughout this vast couItry\ evel'y towni, city, coulnty. aInd State is supporte(d witlhout any custols revInue. Our Federal Governmenit is supported bv the National customs and its internal revenue. I ask you to picture to yourselves whlat would tbe thlle status of the civilizatiol in tllis great country of ours it throughout the length anll breadth of tile lalfnd thlre were no other means provided for thle support of all public institutions than the Federal Governmeinit's customns Irevenle. If you can conceive of suchl a condition you will hlave( tlie best understandinlg tlat lies witli in my power to present to vou of wlhat constitutes a mnodern Latinl R()epublic. As an American, I hop)e tlhat this great nation s:hall not commit tlhe mistake of creating one more Latin Republic, the same as thlose that alrea(dy exist. (ubans can not take any offense at mly assertions regarding tlhe lack of modern institutions in Latin Republics, for Cuba is not as yet a Latin Rep)u!blic. Ilowever blessed by a kind Provildence, ulless tih p)reseit American guardianship establishes all u lnalt cI - ble system of local internal taxation, p)rior to grantilg tlhe Island its majority, it will revert to tlie i(lenltical conditions that are exeml)lified upon thle neighboring Island, which is occupied by tlie Republics of Santo Domingo and of Haiti. Gentlemen of tile IUnited States C(ogress, o1() y(,I f 48 kllow wlhat these two names imply? Napoleon, ill his time, dlefined for to-day the Republic of Haiti, " Haiti, IaclYti, pays (de barbares." It can not he necessary for me to enlarge upon that little blot in the Western ITemlislllere, where a white man1 is to-lday uniwelcome. On tle other side of the Island is tlhe Dominicaln Reput)lic. As its friend, I call indicate to you its deplorable coll(litiol, that ou nmay un(lerstand tle extremes to which a Latinll tepublic canl be brought. It lies a helpless cornmuliitv, between IPuerto Rico and your ward Cu)ba, cursed by conlliti(onS which are no fault of its present ilnhabitalnts, for they inherited them. That country, the cleanest, from atn economic anl political stalllldpoint, of any of tlie Latin American Republics, is iln 1a ost despelrate plight. It lias simI)ly reaclled tle 1end( of an existence without internal percentage taxes. Every mtan in tlhat conmmunity recognizes the urgent necessity to reciprocally!)bart er a material portiol of its cutstom tariff in return for a like grant otl tle part of tlhe UJiited States. Thiis countrv is tlie exclusive imarket for the disposition of its plroducts, as vell as tlle acquisition of its necessities. This Latin Republic las relied uponi imports and( export (luties, and thus clioked its exporting itndustries anld curtailed its importing revenues until, tlle already high rates of custoin charges are illsufficient by ltalf for the supp)ort of thle Governmtent. IJUnder tlhe circumstlallces there are no public roa(lS, no publlic scholols, no local police, no public institutions of w\latever nature. A mnortogage is Ian inllvlid( d(locument bv virtue of tlle juidicia;l tolerallce of a friendly receiver's account, known ill Sl)anish by tle term, "Cuenta de Itefaccionista." T'lle restonsibility of contract is of a ldubious lnature. 'T'lhe!y htave nlotrial by jury. Thlese, and tlhe many institutions so fitniliar to you gentlemen 49 and your coInstitueiint, that no lheed is curretntly given, to them, are ]acking. Areo lhey not important factors for consideration when examining into tlle status of the civilization of 'any countr'y? I trust tlat what lits beenl indicalted to the gentlemen of tliis Comminittee will prollmt tlleml to recognize the propriety, of1 the indication tl:hat tlte g(reatest belnefit tlhat this 11nation c(lan bestow u)pon C(ulba is to install ulton the Island a system of local pIercentage taxationl upon real estate. This is a measure whichl can only be effected by tlie might of tlhe United States Federal Governminient. It will never be asslumel by tile p}eople of tlie Islandl, tlie promnises of their relpreslentaltives to ttle contrarvy notwithlstandiig. It may seemn stirantrge thliat I shlou(ld hIave t}he temerity to stand before thlis )bodyl an1d prol)llesy as to wlhait tlie future of (Cubat will be. VWhen tile farmter:il tle Northern pl:)rt of tiis counltry plalts winte wlheat lie knows thlat fromn tlhlt seed tiropic:al riee will not grow. When,V l inl semi-trol ic:l 1on81isiaIsna, sugar camle is pIlant(d, thley (1o Int expect New I Iampshlire sugar maplle trees. So it is witht tle tulllan elemelnts tlha ta o-(day )occl,)y the Island of C(Jua, a:t d whiiclh, to-lmorrow, as a Latii Repu:)lic, will form its citizenship. Tihe people oni tlie Isltand of (Cba ant(l the IslaLnd of Haiti, it left to tlle.::selves, alre tlie samne. Withl due respect to tO e colore(d, thle mixed, and1 the white population of tlhese1 Islan(lds, it can be affirmned thflat tlhe three elements agree in social, in(dustriai antl religious matters. In politics no( instance is Oln record where they have been able to arrive at a temporary accord as to tlie distril)ution of political patronage, except wlien dominated by thle haind of some military dictantor. If local taxes are not permanently fixed upon the comi - 5() niuniity p rior to its behig lilberated asa free state, liberatioji should never take place. Otherwise annexation will ultinately be effected, instigated by that very hell which the tion-political eleineiit of Cuba acknowledges it will be calledl upont to pass through. The coimmunity fronm which I hail is now ini such a transition. If initertfnal p)ercenitage taxes are not to be foreed up~oni Cub. prior to it liberation, then may it never be free. LAt thie Uniited States retain its lreselt guardiainship tii nl ~oim nerickil envy lromlts its political agitators to recognize that there will be ino p)ickings from its inidustrial res-ources. until the inhabitants agree that if the people of Cuba, aire to enjoy the commercial deserts which corresploindi to thlis great nationi, they must of their own. volition, either adolpt internal taxation anl barter their customs reciprocallyfi to the United States or seek,annexaition.,ieriiit nic t{o atternj)t to indicalte how a charitable reductioni of the lJ3nite(I States customis in favor of Cuban prodlucts wvould but add, at an early d(lte, to tle cmlbarrassment of the Cuban people. As a Latin) Republic, the authorities will find themnselves dependent upon their customs, anid unable to app'ly internal locafl taxes. It will not mnatter how urgent ciprocal internalional tariff' exenmpjtioiis may be re(1ui red. Every inlhabitant of a Llatin counltry believes that if such1 as a~re engaiged in ca-(irrying oni the Government desire arny funds they should get them from the custom houses, and not tax thle individual or his holdings. A. Latin idea of' liberty is an fabsence of all direct taxes aind a berth in the customn house. Compare this with:air American's idea of liberty. TIe Cuban soil is as rich as any in the world. The mechanical equipment of the Island is by no means 51 antiquated. The volume of its productions, consumed within the Island and exported, eveii under existing conditions, is greater per capita than aly otlher tropical portion of the earth. To grant to tlhe proprietor of a Cuban cane sugar factory the p)rivilege of importing his products into this country, paying 25 per cent. less import duty tlhan others, will not benefit anybody directly and indirectly, none otlher than a few planters, and a hungry custom officialdom. (See nlote 1.) To grant them 50 per cent. is simply providing the conditions for an abnorlal development of the Island's sugar industry, whiichl must bring about local labor problemns, and the anniliiliation of Louisiana and American Beet sugar productions. (See note 2.) Primarily a 50 per cent. discrimination in favor of Cuban products will create an abnormal volume of imports, and pronmpt the authorities to rely the lnore upon the customs, and to incline less to adopt, of their own volition, local percentage taxation. This they will ultimately have to assume, for the troubles of all our Latin neighbors is that they are extremests in the nmatter of indirect taxation. Later, while enjoying excessive custom-house charges and with the engaging of tile majority of the labor in the sugar industry, the community will become dependelt upon imlported food stuffs. At this stage the communitv will lbecome)( more reluctant thlan ever to assume local percentage taxation, while the proprietors of' tle sugar e:t;t(ts will gradually be forced to relinquislh a portion of sulch advantalges as they enjoy, and there will be no alternative but to secure a further concession in.-\nmeiican c(ustomns firomn tle primary 25 per cent. to 50 1}per cent., and by this means acquire a new lease of industrial life. Sholrtly a 75 per cent. exemption will be n order. Tllhus wlile thle Cubanls will have been enjoying an exeipl ptioii of Amlerican customs, the Americans will lhave been paying abnormal import duties into Cuba. 'There will be no reciprocity attached to thle proposition As regards the internlal affairs of tle Island, they will beconme hlopelessly entanlgled. Tllis is not a protphetic picture, for it is the record of tie uli)-to-(late history of a Latin republic, and United States consular representattives will sul)port my assert ions. The most patriotic individuals in the Dominican Republic recognize tlhat it is with them to-day a question,t' assurming internal percentaye taxation or being annexed to the United States. With the American flag over any purely tropical canesugar estate, one call produce a pound of sugar, under nly circumlstalnce, at less cost thlan in the semi-tropical State of Louisiana, or beet in any of the States. Every tropical sugar planter considers 2t cents a pound( for an unrefinedl sugar, which would be acceptable on any American table, as a bonanza price. The' Cuban cante sugar planters will attest to the trutll of this assertion, and thle Louisiana and Beet Sugar interests may well consider it. 'The renmedy for the Cuban sugar planter's alleged ills lies largely witlin Iis own ready means. The Cuban factory owners liave merely been engaged in competing with otne another for cane, and when the market price of their product hlas fallen, instead of attempting to remedy their condition by any efforts along the lines of ceasing this competition, they hIave decided that the readiest course to pursue would be to appeal to American munificence. The situation can be likened to a condition where, in the same locality, there are two tomato canning fac 53 tories, and these have beeii offerinlg extreme inducements to tle farmers for the toltmatoes, until the farmers are more tllan satisfied. O1 a suddtil, the market varlue of canlned totnatoes lhalving fallen, tlhe lIroplrietols of tlhe canlinlig factori'es, Inot laving any111 St;ate legislatuire where they may secure a b)Oullty on1 ctlanned tomatLtoes, entertainred no reluctance to occulpy tile attention and tilIe of lmembers of thle Federal Governllent. I cannot better exp)laill tlie situatio(li without tlhe luse of the teclilnal termis of tlie busitess of liaking sugar from tropical grorwn sugar canes. With tlhese ind(icationls betore you of wlhat ltlst ilevitably occur, I beg tllat you will conlsider tlhe ptroplriety of recoinlmen(ingg thlat, at tlie earliest possible (date, p1rcentage taxation ulpo real estate be lpl)plied, and tllat no exception or special customn favors be exteiinedl Cubali products, of tlie nature of ta p)ercentage reduction. W, L. BASS. The Fairfax, Washington, D. C., Jalnuary 23, 1902. Note 1. So long as an unnecessary color restriction remains, the refining inte(rsts will not. under a1 25 )per cent. falvor to Cuban unrefined ohugis, 1may ot go to tlie trouble of cutting more t}i ii (l)e- at' tf of:t l 5 per ce((nt. favor fromn the price. No redl tctioll will take Iplace( iti tile price of refined unless it be f: 1r tlie c(,ens of in(dustrial comlpetiti(ol with tie loca1l1 l)eet 'refilnlitg it1tterests. The refiners' legitillmate lp'otti,)o is tile duty on refined and not thle dtlty oN c)((lor restriction. All duty, other than that pertalining to color restriction, is the legitimate protecti(on for t;lhe A mericanl sugar producers. 54 Note 2. With a 50 per cent. reduction and color restriction retained, the price of unrefined will be materially reduced, and sufficient to prompt the refining interest to slightly reduce the price of refiled for the purposes of wiping out sucli locally produced sugars as are made for direct consumption. Cuba, as a free country, with its soil, brains, and money that will not be lacking, and privileged to dispose of her sugar in a market of double value, can laugh at Germany's kartel, for the American duty now exceeds the normal cost of tropical production. JANUARY 24, 1902. Account sales of sugar ex-S. S. Cherokee, 3-14, from Macoris 3.5-01, consigned to......................... * & 1* I * D.............. and sold by order andfor account of Estate Consuelo. 1901. Mch. 14..... W. L. Bass ConsuIelo... Sold cash 10 days1,200 bags 1st sugar, test. 95.9. 1,200 " " " " 95.8. Weighing 384,860, 3,840, 381,020, ( $3.99...................... $15,202 70 384,860, 3,840, 381,020, ( $3.98.......................... 15,164 60 CHARGES. Marine insurance, $25,344, @ 1 per cent.............................. 253 44 Freight, $3.85 per 2,240 tbs. on 768,332 lbs......................... 1,320 57 Custom-house expenses............................................. 5 00 Lighterage, 12c. per bag................................ 288 00 Wharfage, $120; insurance, $69.84.................................. 189 84 Duties, 761,632, 96.06184, $1.68716............................ Coop'ge, weigh'g, $76.97; tare, $12; test, $2........................ Mending........................................................... Interest on duty, 3-18, 25............................................... Brok'ge, I per cent........................................................ Comms. and guar., 3 per ceit..................................... 12,849 95 90 97 48 00 14 79 75 92 911 02 $30,367 30 16,047 50 $14,319 80 i__ Net pcds. due Mcli. 2 th....................................... E. & O. E. Sold.( 4c. basis 96, 1-16 up, 1-10 down to 94. 56 Unrefined at $0.04 Net $1.88-(March, 1901.) Talkirig the Account Sales and dividilg 7,(;20 hundredweight into $14,319.80, we find tihat the result is $1.88. Unrefined at $3.50 Net $1.391-(January, 1902.) Take off $0.50 for 7,(20 hundred-weight an(t take off the conlm nission on tithe dliffereince and( the balance is new nlet proceeds-$1)O,627.80. This divided by 7,620 hund(red-weight gives $1.391. T]his to indicate that there is tn exarggeratioll wlheli tlhe figtires were assumedt a*t $1.50 lolr Cuban Il)lanters, as (ubt)a plan ters htave an advanvtage of freiglt over this Accoutt Sales of nearly $0.10 per lhunldred. Charges for Marketing. In the schedule the figulres for mar keting were assunmed to be between $0.20 and $0.31 1. Looking at the AccountS;ales we lhave, by deducteting the (duty fir()l total charges, thet sulnix of $3),197.55. I)ividing tliisby 7,620 hiundredweight, we lhave $0.411, as nlarketing clharges, slowing thlIat $0.3 1 is 1no0 exag teraItion. 7- 1 To MY FELLOW PLANTERS: It mnay be of iltelrest to know tihat m11y p)roposal did arrive at headqularters, andl( tliat it mlllst liave been at least exaImined prior to beilng referredt to tile correspondilng Colllllitttee of Congress. 1'f a perceltllage reductionl is graint(ed to tiet C[(iirl sugal1,.rs, o0r totlhilln is dtone and the Islandl is starved into) yieldling its corsent to be annexed prior to lhavillg elljoyed, if lult fotr at day, its political identity as "Cuba Li}a re', tlre writerl, at least, did tlle best lie coulld forl' hiis ltative soil. I)EPARTMENT OF STATE, \VASH IN (TO N, February 3, 1902. WILLIAM L. BASS, Lsq(uire, I"T'Ie 1'airfax,'x \Vasiinlgto, 1). (. SI': I have to acknowl\ed(ge tlhe reccp jlt of your letter of tlI( 31St ultim(io, enlclosing a c(p of.1 letter you have: addressed(l to tlie Plresidenit in rer(1 to the (tis ( (,lCuban sug: ars. I aItJ1 Siil, ytou1' obedient servalnlt, JON II AY. ' REASU Y ) DEPA ITM ENTJ, O(FFI'4I OF THi SE(ICCI ETAR V, I )iv ision1 of ( ustos)ll S. \\W'ASIXrNGTr()N, Febhr0,ar'/?, 190t(. 'WM L. BA8ss, lie lai rfnx,' Washiingtonll, I). C. SIR: I ltave to alknowle(dlrge the receipt of our le(tter of tlre 3()Oth Illtirllm, at:lddl'ressedt to, tlhe PrIesitldent, regardlinlg propos(ed legislattio l col clcrlninrg (dtties o(, (cert inl atrti cles of import front (nblba. Your letter lras )been referred to tle cirairnman of tlic Comllli ittee (IrI \\n i!vs am11r Means, Tlose o)f Represeiita tives, to wllm (aly a(llditiollal arigullenl1ts you lmayr see fit to present should he a(i(tldess(eld. 1eS)(;t full 11 ly, (. L. SPAULDING, A.s'ista'it Secretary. A. J. No enclosure. rt\REASURlY DI)IC'A I'IM 'ENT, ()F IICE '(F F E 'RSECRETARY. Division (o) Customs. WVASHt I NTON, F'eb/ruary 7, ~1902. Mr. W. L. BASS, The Fai f'ax ' W iashingt(on, 1).,. Srlt: Thle D1)(l)rtelln tlt, is il i receilpt of your letter of tile 31 ilnst., al.(llriessed to the lrlctWsi((Ilt', filithrier ill r(ga:r(l to Iro)posoe(] l egisla:tio()l Co(1nce(rniilg duti(es ol Celrtaini trI'ticles of i'pll)Ort IfomII (Cuba, atl(l sil'gs',stihg' ' t l)rimlIy'v hIearing bef)'(1 i c(l011 (ittee,:( c()lsistit'ng (4> (othicoes of) the I re;astury Dl)epaitrt1(n( t ald(1 the Dep)ait)ent ( Agricultuire. II r1e(:lly I l1avec to st:ate tlhatt 11o ilnitiitorV:y a;ction lookillg to Ca. (diluctionll of the dutlty oni C(laini produ(:lcts illp)ort1e( i tIt) the Ut1 itetl S:ttes (1II l(be tall epreselntatlivoes, to whomvi aliy alrgumeniits 1which ou 1 S( fit to) piesent Rtesp)ectf' ll v, ( ). LJ.," —A l;:li.)]s(.;, At.sistft S rer t(tf'y. A..1. No e11clo01ure. MR. MORRIS' BILL, H. R. 10,994, (FEB. 6, 1902.) AND SENATOR SPOONER'S COMPROMISEI IMPROPRIETY OF BOTH MEASURES, BY W. L. BASS. February 10, 1902. I (Ii Congressman Morris' Bill, February 6, 1902. — H. R. 10,994. Thiere are two weak points in this mneasure. The first is on the, third- andl fourthi lines of the second page of the Congressional print-" * * * anil on sugar above number sixteen Dutch standard in color, *** two cents per pounId;* * * Why is such a, quality, of sugar, when as yet, unrefined, at once arbitrarily placed oni a level, as reg~ards htaving to pay duty, with regular refinted sugars? Is niot this quest iou a, logical one? Mr. Morris mnay lbe Cable to explain it. Th~le unjustness of this detail of the measure is exemplifiedl whjen onle considlers what shall be the duty on ani unrejiheel sugar, as pe.r exarm-ple: 100 pounds 96 test sugars, duty..... $1 681. Added duty by regular increment of $0.035 per hundred pounids for 2 degrees h~igher testing sugar.....0 07I Rational duty for unrefined 98 test suga-r...... $1, 7 54 But M~r. Morris would at once lplace this 98 test unrefined sugar on a par withi 100 test or re'lned sugar anid have: 100 pounds 98 test unrefined sugars, duty same as 100 test refinied.$2 00 Rational du1ty for unrefined...........$1 75J Mr. Morris' unaccounted for increase of duty for only 2 degrees onl unrefined sugar... $0 24J Regular increase.$0 07 $0 3142 Why would Mr. Morris lhave tlhe Cubans )pay $0.31. extra duty iiistead of $0.07 for 2 degrees hligher on unrerefilled sugars ' If Mr. Morris is willing to supress thlat particular setntence " t* * al1 on Sugar' atbove nutl)er sixteen I)utchl statl(darll ill color, * * *' and so pllrase tlle beginnling of 209 p)aragrapt)l so as to coilforlll to salle, lhe will lmaterially iassist tlhe Cubanlls. It is liop)e, lie will accept thle eliriniating of this sentence from lhis proposal or explain wliy it is required. r'tlie next weak p)oint of Mrr. MIortris' mneasure is wherieil lie provi(les: " Tlat tlhe amount of cOncessions to Cuba ii tlhe luties on sugar lherein p)rovided fori, slall ' be 11eld 1 i thle Treasury of tlhe United States aind paid "to thle sugar planlters of Cutia ro-rata accordling to tile ',amoult of sugarm raised by e, ach o{(f said l planIters." 1'lis plan:, tlough on tlhe surface ingenii)us and apparantly jplausible, will lmot belnefit tlie (Cuba1I plantter, l)ut it will work tlie samIe ll:trm to tlle Louisiallla, tlhe Beet, tite Puerto Rlico, an(t tle:1aw1aiian 't)rf/ited sugars as a straighlt perce'ntage reduction, of du.ty. Thle follovwig will make this clear Whenl tie (Cub1an pltanter s shlils is sugar from Cuba into tlhe United States, there will be a doctIlment recording this faict in order to entitle liiin to receive tlie Iprorata rebate of duties tllat may be later allowed by the treaty. When thle Amlerican refiners buy tlhese Cuban sugars tlhey will know tllat a certtail amtnou ft of duty is to be refuInlded on thle particular parcels of sugar, alld either 1demand tliat tlhe rebalte document go \with tihe sugars, or deduct on Cuban sugars tlle amnount of tlhe lprospective rebate from tlie market price. Tlte Cuban planter can tike his choice, for it will be immaterial to the refiners so 63 long as they and not the indelpen!dent Cuban pllllter aire getting the benefit of such rebate. Uldoubtedly, it di(d not occur to Mr. Morris, or whloever assisted in the framlillg( of his measureC, tllat thlis eventuality shlould 11i ave beeln provided for. The writer expresses t}he ildeas of his fll()w pllanltels, and from the two points criticised it nmtlst lhe evidellt that Mr. Morris' pro)osition is of no use to tlle (t}Cubanls, while it is positively as lharmful to the Am1rican p1roducers as a percentage reduction, of duty. Thie idea savors of a mlodificeation of the plrolposition suggested by Senaltor Spooner, of Wisconlsin, a11 whllci tlhe Beet Sagar Grz(tte, No. 12, of February, 1902, statecs: "President Roosevelt is satisfied with it." * * Senator Spooner's pllan will not work, as tlhe Cubl1ii planters can not rely ul)on any fundS reachling tlhem1t througli their own (Govermnent whliclh tlie \Vaslinigton Governmel nt may rebate. A most suplerlicilil exanlmination of Senaator Spooner's alleged ideaR a1nd iMr. Morris' bill, II. R. 10,5994, will make clear that tlhe latter lias but provid(ed ag(ainst this uncertainty of tlhe Cub(al planters getting tlie benefits, and provided for tlhe sums 1Iayvable to tlie Cubaln's endorsement to be direct from tlie United States Federal Tre:sury. Havit(ng indicated tile two oljections in Mr. Morris' bill, it is timely to state that witlh one or more sucli thinly veiled propositions like those presented, one of tlhem is liable to go tlirough. What will lhappen then will be tlha:t tlhe Louisiana, tlie Beet, tile Puerto Rico, and the Ha twaiian interests will have been abandoned by ignorance )perhllas by — Now is the time for t!e Amnerican domiestic sugar producers to watcli carefully and study well any proposal tliat is miade at this juncture, for they are liable to be 64 cauglt off their guard, and when they wake up it may be too late. Now is not the time to rely on the fact ttlat the Cuban relief is blocked. 'There are millions at stake in the fluctuations of Amlerican Sugar Refinillng preferreld and common stock, 1ald the representatives of all American producers of ldomiestic su-gars tIiust watcli ctarefully tlhe source of all proposals. Now i's the time to bear in mind that no relief means tlhat (uba will shortly be annexed, and tllat after tlat happenls the two refining comibines will no longer be i lllislpellsable. And1 tlat any t )ercentage reduction, which does not do away with tlie excess duty in connection with tile color of unre/fied sugars, no matter how tlle lroposal is tplannedi (as exemplified in bothi Senator Spooner's and Mr. Morris' p)lans), means nlo lielp to tile Cubans, tte ]owerling of local and imported unrefined and the strenlgthening of the refining combines. Tlhe correct tnmeasure is to give tle Cubans tile exemptiol of tlio duty added for color on unrefined. This breaks the imonolpoly of tle refiing combines and allows the Culans to dispose of hlighl-grade unrefined sugars. With such a measure they would get the profit themselves, and by no itndirect route. It also preserves the duty on unrefined to protect local producers, and on refined to protect local producers and refiners. From this timet on, until this Cuban sugar question is settled, every Congressman and Senator who is not well versed in the intricacies of the sugar business will do well to examine carefully into tlhe merits of any plan suggested to himn for presentatiol, otherwise he is liable to find, though unknown to himself, tliat he is tle instrument of the refining combines. 65 All proposals that aire expected to be proof aigainst exposure at this time must be very well- coated. This is by reason of the fact th'at prior to the Stars and S-tripes floating over trop~ical soil, the Louisiana, the Beet, the Hawaiian (by virtuie of the reciprocity treaty) atnd the Refining interests, were in acecord to keel) the color duty on. Tjo-day the Cutban situation hafs nierelv separated these element~s and the refining) com1binles, have to stand alonie, (alleging assistance, to the Cubanis) aigainst the Louisiana, the Beet, the 1Puerto Rico 811l(1 the Hawaiian planters. No eff'orts lare lheing sp~ared by the Press to precip~it~ate a hasty measure, for only such will favor the refininlg combines. The credit of the Nation is in thje hands of tHie Wayts anMd Meanms Coniunittee,'and imay its mnembers stand] finnl a(nd patiently p)rick the buibble of each 1)Cw l)1-oIosa1, unitil they find the right so)lution. Here follows Mr. Mi/orris' bil 1 and Senator Spooners conll01prl15sC 57th (Joiigress-lst Sessioi. 11. I U'. 1 0,994. f n the Houise of' Rep~resenita~tives-F4ebriua,.ry G,) 1892.Mr. MORRIS introdiueed the followintg bill; which was referred to the Comimittee on \Vays and Means and ordered to be prinltedl A B11,LL to amnend an Act elltitle~(l '' An `i ct to lpro.vidle revenue for tile Government andl to encourage the industries of tile United States,"; alpproved~1 July twenity-fourth, eighteen 11undre(11 antid ininety-sevenl. B6 it enacted by1 the 'Se)i~atc a'nd Hoiin~c of It7)resentativcgs Qf the, Un~ited S~tates of Amenrica 'int Cern qifrc8R as Tci, Ihtt paragraph two hutndred and nine, Schedule EI, otfan Act entitled " An Act to provide revenue for the Governmnent 66 and to encourage the industries of the United States," approved July twenty-fourth, eiglteen hundred and niinety-seven, be arnendled so as to read as follows: "209. Sulogars not above number sixteen Dutch standt p)er tpot l tadditional, antl frl'ac(ti(ls of af degree in proportion; and on stugar above Iulnlrcr sixteen Dutch standlard in color, and on all sugalr which lhas gone througlh a lprocess of refining, two cents per pound; (molasses testing above forty degrees alnd not above fiftysix (legrees thlree cents per gallon; testing fifty-six (de'grees altd above, six cents Iper gallon, sugar drailiigs at11t stlgar sweep)ilgs sltall be1 sut)ject to luty ats Inml'tasses or sugar, as t he case aly be, according to polariscopic test: Provided, Tlhat tlHe IPresi(lent be, and and lie is hereby, auitllorized to lego(tiate a reciprocity treaty between tlle Unlitel States and Culba ill whiclh he shall concedle niot to exceed thiirty-thlree and oie-tliird pe'r ccntuin of tlhe duties herein provided1, in considerttion of concessions fronm Cuba in (duties o1n articles iriiportedl by Cuba from tle UnTited States: And provided firther, Tlhat tlte atlloun)t of tlie conllessions to Cuba in the duties on sugrar herein provide( for stlall be held in tlhe Treasuvry of the United Stattes and ptaid to tlhe sugar planters in Cuba pro rata, ac(cordilg to tlhe iamoult of sugar raisedl )v elc of slid pIlanters, nlder such rules and regulaItions as tlie President of the United States lmay i)rescribe. 67I (From the Beet Sugar Gazette, No. 12, February, 190 2.) Senator Spooner's Compromise. The Chicago Record-Herald, which is close to the Adminlistration and generally well ilnforme(d, reports tlat Senator Spooner, of Wisconsin, lhas:a p1lanl tlhat lmeets with tile approval of tlihe lresident a(t1it will solve tile present tangle arisinlg from the (opposition of Colrress to tlie Presid(ent's attitude towards Cubla. As a m:atter of fact, tile planl, is thlfat suggested to tile lPresident by Mr. Henry T. Oxnard,:as expllained inl tile Beet Suigar Gazette of last Decemnber. Tlie p)lan is given il tlie press (isilatch as follows: " Senator Spooner, of Wiscollsinll las devise( a p)lan b)y which it is believed tlie warring elellments lay Ibe reconciled and Cuba be given what slie asks withlout tany political or ind(ustrial harm1 in this country. "The beet sugar and tobacco) people of this colluntry (do not oblject to Cub:ia products comitng into thle United States, p)rovi(led tlme pric e c not cut so as injure l]oeir industries. Hence they are willing to have a rebate allowed or ta bounty to ttie foreign producers. But tlie idea of dlirectt Americ l bounty to foreigners is too red(iculous to receive serious c(nlsideratioil. T lie Cuba pl;anters are not, satisfiedl to lhave a relbter utless they can get it, for in such cases t1hey will bIe 11o beIctter off thlan l)before. It is ]ere thlat tile Senator fromn \\Wisconsin conmes along with tle following ingelni(ous plan 1 " 1. The Unlited States to chargre ftll l)ingley rates oni all sugar an( tobacco comiing in fr(om Cubla. 2. But in consideration (of tlie atgreemnct of ti}e (uban R11epulblic to reduce tlie CubaE n tariiff o() A ilcrican goods going into CubIa tlie Uiited( States is to refuld to the C Iubanll G(overnment say 40 per cenit. of tlie lduties collectel on Cub( a sugar andl tob.acco. 68 " 3. So far as the reciprocity agreement between the two countries is concerned it is to go no farther than this. But the Cuban Congress can turn round and pay to its own planters an export bounty on sugar an(l tobacco equal to tlho (ldrawbtack received from tile United States. " ly tilis plan tllere woul(d be (a fair reciprocity betweenl tlie two countrlics, the lUnitetl States would return to (Cub;a say 40 pe1r cent. of tile revenue derived fromI sugar alll tobacco ilmpollOte(l from that Island. For this co(Icetssion th}e Unlited( Staltes woulld secure a valuable retutrll ill tariff' (oiIcesiounS I)y Cuba. rTl e Cutban GovernIentt wo()ul(d tlakel tl.i monley wtlichl it receives froml tlhe United Statets:i11(a tlurnt it )back to tlhe explorters as a )bolllity, tlhc 1)ollllty eoxcltly equaling tlie drawl)backs aintl filnling its vway to) til il',rper parties. ".Ill othelr worls, (uba wotuld get tlhe relief asked( for Iand l )o rodtucillg interest in the Utnite( States woull be hu Ir t. A numlber of Senators to whoim this plan has been submiitted believe Senator Spooner has founll a solution of tlie vexilg problelm. President Roosevelt is satisfied with it, tlhe Cubans would be pleased withi it, and tlhere is no reason why tlie beet tand tobacco people should object to it. Suggestion for a Cuban Sugar Relief Measure. \A BILL to amenld l ain act lltitled " l An ct to pl'ovi(le revenue for tlie Goverlnmlent anld to encoiurage the in(utstries of the Unitedl States," alpproved.1 ly twenlty-fou(rthi, eighteenll ]hUll(red anl1d nlilety-sevn(l. Be it en.acteCd ( y th)1/ cle snl(dtl a(nd Hosc of Ih/tpri'c.d(ta1fic.s oft te Ulifted Stlatfs f ( tm(ieica inl COwrtres a(8C)tb/lced, IThat pargralph)l two hunttld(red land llile, Shedulle, of at Act entitle:l, "Ad AcVt to provi(ce reveneic for tlhe G.ro V \era 1:lment aidl to (clleou lra(ge' the industries of tlhe United Staltcs, aIlpr1'(oved.uIly twenllt-fourttil, eighteeni 1 hundllllrt'ed lnl lIillety-seve'll, he e tilde1l( d, so aS to read as f 1 o llo s '20(U). Sulgairs ttrt.i'lihtcC, ttallk Ibottoills, siipls oS (' calle jlice, m11(eada, concentrated mllelada, concrete ad11(1 co(Icentrlttedl tnolasses, testinig 1)v tlie pol:iris((cop)c n(it atbove seventy-five d(1-rees, oe cent anlll ()iid one hIlured and nil one-thousandthls of one cot per po'ul)o, anlld t'lo every a(lditillnal (le(rce sllown by tll( l)olariscopic test, tlhirtyfivet one-tllousalldths of one cenlt per po0t1l1d a(1(litionmal. andt1 fractions of a degre in prI(} ortion and( on sugar a)bov(e numlber sixteen l)utcli stal(ltlard in color, aUnt on all sugar whliclh lIas gone tlhrourgl a pIrocess of retfiig, two cents per pol nd; molasses testing above forty (legrees:an( inot (tabove fifty-six degrees, three cents per gallonl; testirig fifty-six degrees and above, six cents per gallonl; Slurtga (Irainings and sugar sweepings shall be subject to duty as molasses or sugar, as tlie case may be, according to tpolariscopic test: Provided, That tlhe Presitdent be, and hie is hereby, authorized to grant, on such unrefined sugars s aare produced on tlhe Island of Cuba alnd imIportedl into the United States, (luring such time as tlie 70 Island remains free, such exempltion as mliay result from the following alteration of the foreoging to read: " 209. Sugars unrefined, tank bottoms, sirups of cane juice, nelada, conceiltrated nelada, concrete anld concentrateld molasses, testing by the l)olariscope nlot above seventy-five degrees, one cent an(d one ]hundred aInd nine onll-thousandths of one cent per poulnd, iandl for every ad(litionall degree shown by the lpolariscopic test, tllirtyfiveC one-thousanldths of one cent per lounfl a(dditiolal, and(3 fr:ctions of a degree il proportion; and on all sugar which lias gone through a1 process of refining, two cents per Ipound; nmolasses testilng above forty degrees t(and not al}ove fifty-six degrees, three cents per gallon; testing if'tv-six deg'rees tand(l above, six cents per gallon; sugar (Ira'iniIgs and sugari sweepings shall be subject to duty as lmolasses or sugar, as the case may be, according to pol;ariscol)ic test: fAnd provided further, That the Presi(lent be, anld lie is herey,N authorized to negotiate a recipr)ocit.v treaty between tlie United States and Cuba when tlie said Island( of Cuba shall have assumed( its political identity, in wliici lhe shall concede not to exceed tllirt ytlhree aind one-thirid per centuin of tlhe duties hlereili provitled, ill colsid(leration of concessions fromn (Cuba in (luties onl aIrticles ilmlported by (Cuba from tlhe United St tces." \V. 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