PARAGRAPH 277-GRAPEFRUIT. Mr. JAMES. I wanted to know whether or not I should dodge grapefruit. Mr. KITCHIN. The kind that Mr. Harrison bought at the St. Regis Hotel is a luxury, but the kind you are trying to bring into this market is for the people generally? Mr. COMSTOCK. Yes, sir. Mr. KITCHIN. What are shaddocks? Mr. COMSTOCK. The original of grapefruit. Mr. KITCHIN. They are not shipped in here now? Mг. COMSTOCK. No, sir; grapefruit were only bred from the shaddock. Mr. KITCHIN. What are pomelos? Mr. COMSTOCK. That is grapefruit. Grapefruit is a fictitious name given this fruit by the American people. Mr. KITCHIN. Í see there were shipped in from Cuba a value of $119,880 at 1.6 cents per pound, of shaddocks, pomelos, and grapefruit all together? Mr. COMSTOCK. No, sir. Mr. KITCHIN. No pomelos were imported? Mr. COMSTOCK. No, sir. Mr. KITCHIN. And no shaddocks were imported? Mr. COMSTOCK. No, sir. Mr. KITCHIN. All were grapefruit? Mr. COMSTOCK. Yes, sir. Mr. HARRISON. We exported nearly $2,000,000, and from that fact I do not see that we are having any serious competition from imports. Mr. COMSTOCK. We actually ship California fruit into Habana. Mr. KITCHIN. The hearings in 1909 showed that the American producers of oranges and grapefruit had practically a monopoly of this market. Mr. HARRISON. But this gentleman, Mr. Kitchin, is not an American producer; his plantation is in Cuba. Mr. COMSTOCK. I will file a brief a little later. The CHAIRMAN. All right. You will have until the end of the month in which to do so, if you wish that much time. The following letters were presented to be printed in the proceedings following Mr. Comstock's remarks: The WAYS AND MEANS COMMITTEE, LAS TUNAS CITRUS FRUIT Co., House of Representatives, Washington, D. C. HONORABLE SIRS: As we American growers of citrus fruits for American people have learned by experience that the tariff duty now in force on citrus fruits from Cuba to the United States is such that we are not on a fair competing basis with the American growers in Porto Rico on our right and Florida on our left, we have requested Mr. John K. Comstock, president of the Eastern Cuba Development Co., to represent us before your honorable body on the 20th instant. We have 1,100 acres of land, about 400 acres of which are planted principally to grapefruit, all accomplished by American capital, and you no doubt know that almost the entire fruit industry of Cuba owes its existence to American capital invested for the benefit of American people. We therefore earnestly ask you to consider the claim Mr. Comstock will make and trust that you may be instrumental in putting us on an equal basis by a reduction PARAGRAPH 277-GRAPEFRUIT. of the duty on citrus fruits from Cuba to the United States which will enable us to more fully accomplish what we have anticipated for all concerned. Very respectfully, WAYS AND MEANS COMMITTEE, THE LAS TUNAS CITRUS FRUIT Co., MOORE CARVING MACHINE Co., House of Representatives, Washington, D. C. GENTLEMEN: This is to inform you that I am president of the El Caimital Fruit Co., whose grove is located in Pinar del Rio Province, Cuba, half way between the towns of Los Palacios and Paso Real, the Western Havana Railway passing through our property. We own over 1,000 acres of land, nearly 200 of which has been planted to citrus fruit trees, including grapefruit, oranges, and lemons, their age ranging from 5 to 7 years. We have about 7,000 orange trees, 6,000 grapefruit, and 2,500 lemons. We simply ask that we be placed upon a basis where we may have a fair chance as compared with the growers of Florida and Porto Rico. I presume that you are aware of the fact that almost all of the citrus fruit groves of Cuba are owned by American citizens. In fact, I know of none that are owned by citizens of any other country. In view of the fact that killing frosts are not infrequent in Florida, and from recent experience it seems they prevail also to an alarming extent in California, it seems more than ever that the people of this country should be able to supply their wants from Cuba, where frost never prevails, rather than to be obliged to pay a high tribute to obtain a very necessary article of food. Mr. J. K. Comstock, of Chicago, has been asked to represent us before your committee, and he will undoubtedly present facts and figures which ought to be convincing regarding the reduction of the duty upon citrus fruits. Very respectfully, yours, Mr. DANIEL C. ROPER, Clerk Committee on Ways and Means, E. J. PHELPS, President El Caimital Fruit Co. House of Representatives, Washington, D. C. CHICAGO, January 27, 1913. DEAR SIR: Replying to your favor of the 23d, I wish to add to my petition dated New York, January 15, 1913, the following rates of freight from shipping points in Florida on oranges and grape fruit to New York and Chicago as a base and freights and duties from shipping points in Cuba to New York and Chicago as a base. Rate from Jacksonville, Fla., to New York via water 35 cents per box plus rail rate from shipping station in Florida to Jacksonville varying from 10 to 23 cents per box, making a total of 45 to 63 cents per box for Florida growers to deilver their fruit in New York City. Rail and water rate from Cuban points to New York City 47 cents per box, plus duty-64 cents per box, making a total cost of $1.11% per box for Cuba to deliver her fruit into New York City. Cuba's cost over Florida is approximately 100 per cent greater. Cost of freight from Jacksonville to Chicago 56 cents per box, plus 10 to 25 centsper box from shipping stations in Florida to Jacksonville, Fla., making a total cost for growers in Florida to deliver in Chicago 66 to 78 cents per box. The cost to growers in Cuba to put her fruit in Chicago markets $1.11%, New York plus freight and handling charge to Chicago, 37 cents per box, equals $1.48% per box. Approximately 100 per cent greater cost for Cuba growers versus Florida. Porto Rico can deliver her fruit into New York for 30 cents per box, plus cost 10 to 20 cents per box from the grove to the boat at San Juan, making a total of 40 to 50 cents per box New York plus 37 cents to Chicago per box, or 77 to 87 cents for Porto Rico to deliver her fruit in Chicago. Thus, making Cuban growers' cost about 100 per cent more than Porto Rico. Therefore we contend that the duty should be entirely eliminated from Cuba, as we Cuban growers are all Americans and stand identically with the Americans growing fruit in Florida. As the disposition of America is to aid Cuba, we trust that this action will be taken. PARAGRAPH 278-COCONUT. Grape fruit is not a luxury but a necessity and should be put on the table of the. American at as low a price as is consistent to grow regardless of where it may be produced. I wish to correct error on page 2640, tariff schedule No. 12, remarks made by Mr. Harrison regarding the exports of oranges and grape fruit from the United States in the year 1912, which is more than $3,000,000 and the exports $400,000, while this statement shows figures at $2,000,000, which is an error. Yours truly, J. K. COMSTOCK, Representing Eastern Cuba Development Co., Chicago, Ill.; Las Tunas Citrus PARAGRAPH 278. Orange peel or lemon peel, preserved, candied, or dried, and cocoanut meat or copra desiccated, shredded, cut, or similarly prepared, two cents per pound; citron or citron peel, preserved, candied, or dried, four cents per pound. COCONUT. REDUCTION OF DUTY RECOMMENDED. Hon. OSCAR W. UNDERWOOD, NEW YORK, January 16, 1913. Chairman of the Ways and Means Committee, Washington, D. C. DEAR SIR: On behalf of the large consumers of coconut throughout the United States, I have the honor to plead that the now unnecessary duty on coconut be reduced, for the reason that this country does not produce any coconuts. You have a duty of 2 cents a pound on coconut manufactured in the island of Ceylon, an English possession. There was imported into the United States from Ceylon in 1912 less than 3,000,000 pounds. If there was a duty of only one-half cent or 1 cent a pound, there would be from twelve to fifteen million pounds imported into this country; therefore the Government would collect more money. Manufacturing confectioners and bakers prefer to use the Ceylon coconut to the domestic manufactured, for the reason that it does not contain sugar; it is cured by a different process; it keeps sweet much longer and the goods that are manufactured with it are more palatable. The United States draws its principal supply of what we call green coconuts that is, coconuts in the shell-from Central America. The importation of coconuts is largely controlled by the United States Fruit Co., known as the Banana Trust. It is this concern that is principally benefited by your duty of 2 cents a pound on manufactured coconuts. In the United States there are only the following manufacturers: L. Schepp Co., New York, multimillionaires; Dunham Manufacturing Co., Brooklyn, N. Y., very wealthy concern; Hills Bros., New York, wealthy concern; Franklin, Baker & Co., Philadelphia, made a great deal of money; National Cocoanut Co., Baltimore, small concern; F. W. Bussing, Jersey City, N. J., small concern. Coconut is one of the most nourishing and healthy foods that can be used. It requires very little labor to produce desiccated coconut, and there is no industry in this country that turns out as much product with a small number of employees as the coconut industry. The entire labor of all these plants would amount to a very few hundred people. Yours, very respectfully, H. B. GRUBBS. PARAGRAPH 279. PARAGRAPH 279-PINEAPPLES. Pineapples, in barrels and other packages, eight cents per cubic foot of the capacity of barrels or packages; in bulk, eight dollars per thousand. See also under paragraph 274-Preserved pineapples. PINEAPPLES. TESTIMONY OF A. W. EAMES, PRESIDENT OF THE HAWAIIAN ISLANDS PACKING CO., SAN FRANCISCO, CAL. The witness was duly sworn. Mr. EAMES. Mr. Chairman and gentlemen of the committee, I represent by request other growers and packers of pineapples of the Hawaiian Islands. The present law has worked quite satisfactorily, enabling us to compete on fairly equal terms with foreign producers, who have free trade and cheap labor. The industry has grown in about 10 years from nothing to a pack last year of about 27,000,000 cases, of a valuation of about $4,000,000. The pack of 1913 was 32,000,000 cases. The industry has many small growers and independent planters, and is doing much to diversify agriculture and increase small land holdings in the islands. There are 10 independent canneries and another projected. There are many small producers that are homesteaders on Government land, and pineapples is the only crop in the absence of water for irrigating that promises them any profit in growing. No industry that I know of in the United States has to compete with so poorly paid cheap labor as does ours. We pay from five to ten times as much per day as do our foreign competitors. Considering the difference in labor cost and the fact that nearly everything we use in packing the pineapple is enhanced in value by a duty over what it costs our foreign competitors, the present duty on pineapples is not too much. This is proven by the large quantity of both canned and fresh pineapples that were imported this year into this country. Pineapples cost more to pack than peaches, pears, or apricots, as they cut much more to waste and take more sugar, and consequently should sell higher in the market. They exhaust the soil so they will continually cost more to grow, requiring more fertilizer every year. As for the profits of the business, the oldest cannery in the islands has only paid one earned dividend. Two canneries in 1908 or 1909 failed-one went out of business; the other the stockholders lost all they put in, but it has been reorganized under another name and is running, but its dividends as yet have been in red ink. I think three companies have done quite a profitable business and it is possible one other has made a little money. But they all have hopes of doing better and are increasing their output. Your petitioner respectfully represents that he is engaged in the business of growing and packing pineapples in the Hawaiian Islands; that he appears before your committee on behalf of the growers and packers in the Hawaiian Islands, and in his own personal behalf, to be heard on paragraph 274 in the present law, so far as it relates to canned pineapples. PARAGRAPH 279-PINEAPPLES. PRESENT LAW SATISFACTORY. Your petitioners are satisfied with the present law and would prefer no change. Under its operation the industry of growing and packing pineapples in the Hawaiian Islands has increased from 329,000 cases produced in 1908, to 1,150,000 cases produced in 1912. The value of the production last year was approximately $4,000,000. There are 10 canneries on different islands, all independent; many small producers who are homesteaders. Within a year the Government has disposed of two large tracts of land under the island homestead law in small holdings of about 50 acres each for the growth of pineapples. No other crop, in the absence of necessary water for irrigating, can be grown by them for profit. The Government has other tracts available for pineapple growing, which can not be profitably put to any other use, and these will be disposed of under the island homestead law in the near future if the industry continues to be profitable. It will thus be observed that the continued growth of the pineapple industry is a necessary factor in the development of the islands. BAD EFFECTS OF CONSTRUCTION OF DINGLEY LAW. At the time the present law was passed the pineapple industry in Hawaii was in a precarious condition. The production in 1908 was 329,000 cases a little more than one-fourth of the production last year and yet not half of the crop of 1908 could be marketed in the United States at a profit. This was due to the fact that the market in the United States was fully occupied by importations from Singapore and the West Indies. This situation was created by a ruling made by customs officers construing the paragraph in the Dingley law governing the admission of canned pineapple packed in sugar. This decision operated to the benefit of importers and the foreign producer. This ruling practically nullified the clause in the Dingley law imposing a duty of 35 per cent and 1 cent per pound. The importations of pineapple under the Dingley law amounted to, approximately, 400,000 cases a year-more than the entire annual production of the Hawaiian Islands and three times as much as our producers were able to market in the United States. Fully half of this importation came from Singapore and was produced by cheap labor. BENEFICIAL EFFECT PRESENT LAW. The Payne-Aldrich law gave the Hawaiian producers relief from this condition by rewriting the language imposing a duty on canned pineapple so that the duty of 35 per cent and 1 cent a pound on pineapple packed with added sugar was not open to misconstruction. The effect of this legislation was immediately to revive the industry and we were enabled to market our carryover of nearly 200,000 cases of the 1908 pack, and since then our pack has increased from 329,000 cases to 1,150,000 cases. If the same relative protection is maintained, the industry will continue to grow rapidly. 78959°-VOL 3-13- -62 |