STATEMENT OF DR. CHARLES F. McCANN, OF LAKE CITY, FLA. The CHAIRMAN. Mr. McCann, what subject do you want to talk about? Doctor MCCANN. Sea-island cotton. The CHAIRMAN. Well, we will hear you briefly on that. We have heard a good deal about it. How much time do you want? Doctor MCCANN. I do not want very long; just a few minutes. Doctor MCCANN. Mr. Chairman, I am here in the interest of the sea-island cotton growers of Florida, asking a duty on sea-island cotton. These people are in a deplorable condition in the sea-island cotton region. The average farmer down there raises from 5 to 10 acres of sea-island cotton. That is his money crop. He makes from a bale to three bales of cotton in a season. That is the average crop of the farmer of the sea-island cotton growing country. With 75 per cent of these farmers that is the average crop. Now, these farmers, in order to get this cotton crop, have to go to what is called the supply man, and mortgage their mule and their farm to get supplies to raise that cotton. At the end of the year, when the cotton is gathered and produced and delivered to this supply man, they have used up the entire crop and they have nothing left. That is the entire money that they have got. The CHAIRMAN. Are there any questions? That is all, I think. Doctor MCCANN. I tried this cotton business myself The CHAIRMAN. How is that? Doctor MCCANN. I say I tried this cotton business myself. I had 10 acres of cotton planted one year and fertilized. I hired the work done, and on 10 acres of land I raised 2 bales of cotton. That cotton cost me $172 for two bales of cotton. I sold that cotton for $160the two bales. There are 400 pounds to the bale. I produced that cotton at a money loss to me of about $12, after paying out all the expenses. Mr. CLARK. Are you a practicing physician? Doctor MCCANN. No, sir. I have been. Mr. CLARK. Are you a farmer? Doctor MCCANN. No, sir. Mr. CLARK. It was a case of the doctor supporting the farmer, was it not? Doctor MCCANN. No, sir; I am not practicing medicine. I will say that I was born north of the Mason and Dixon line. My home is in Ohio, but I live in Florida. Mr. CLARK. I do not see that that makes you any better than if you had been born south of the Mason and Dixon line. Doctor MCCANN. It does not make any difference where I was born; but I can not raise cotton in Florida Mr. CLARK. The truth is, is it not, that you did not know how? Doctor MCCANN. I do not know how, but I have been in touch with that business for years for the Florida Central and Peninsular Railroad, and I have had experience enough to know, taking people to Florida, that a man raised north of the Mason and Dixon line can not raise cotton in Florida and make a living. Mr. CLARK. I expect that is true. They do not know how. Doctor MCCANN. The men down there do not know how, either. They can not raise sea-island cotton in such a way as to make a living and support their families. Mr. CLARK. I know Mr. Bates, Attorney-General under Mr. Lincoln, had a fine farm in my district, and he always said that Lawyer Bates supported Farmer Bates. I have nearly always found that to be the case when lawyers and doctors go to farming. Doctor MCCANN. I do not depend on the practice of medicine for my living. The CHAIRMAN. Are there any other questions? That is all, Doctor. Doctor MCCANN. All right. Thank you. STATEMENT OF MR. GORDON S. MORSE, OF DETROIT, MICH. Mr. MORSE. Mr. Chairman and gentlemen of the committeeThe CHAIRMAN. You want to talk on the tariff on goods going from the United States to the Philippine Islands? Mr. MORSE. On one particular line of goods; yes, sir. Mr. Pou. Will you speak a little louder? The CHAIRMAN. What is your line? Mr. MORSE. Marine engines-gasoline marine engines. The CHAIRMAN. Proceed, Mr. Morse. Mr. MORSE. Referring to the Philippine tariff revision law of 1905, page 40, section 243; page 40, section 267, and also page 10, section 10 A, I desire to say that I am the export sales manager of the Gray Motor Company, of Detroit, Mich., the largest manufacturers in the United States of a certain type of gasoline marine motor. I am also representing here a dozen or so of the other manufacturers of marine engines employing gasoline as fuel, all of which companies are interested in selling their product in the Philippine Islands. Very briefly I wish to conduct your attention to the consideration of a very unfortunate phase of the Philippine situation concerning the present tariff arrangement and its effect upon our efforts to introduce the product of our shops into Philippine markets and the very distinct loss those living in the islands are suffering as a result of the operation of this tariff. Owing to the peculiar char acter of the islands there is no place under the American flag, from a geodetic standpoint, so perfectly adapted to the employment of the motor boats for commercial purposes, and being an archipelago all intercourse between the islands is accomplished by means of boats, and where the more rapidly distance is overcome and the more abundant available means for reducing time required in transportation results in more rapid progress and in more quickly establishing closer social and commercial relations. As a factor in the bringing about of all this and facilitating the development of the natural resources of the territory, the power boat is bound to attract considerable attention in the future if given an opportunity to work out, as it has in other localities, its intended purpose. The rivers reach into the heart of the richest portion of the islands, where agricultural and mineral possibilities are awaiting cultivation and development. These rivers are shallow, prohibiting for more than a short distance the use of steamboats of even the smallest type, which, with their limited supply of fuel and little room for cargo, have never been used successfully for the purpose of moving their product from the fruit belts. The present practice of using native boatmen is slow, and as the American idea obtains and American methods succeed in other departments, the man power must give way, as it has in Porto Rico, Cuba, and Mexico, to modern motor craft; there this means of navigation is employed by the fruit companies in bringing down to ports of shipping the products of the interior. Greater quantities are moved more expeditiously at an insignificant cost. I am interested only in developing trade relations beyond the borders of the United States. It is my business to avail myself of the use of every source of information; to study the requirements and to supply the needs of new fields under development. The CHAIRMAN. I want to say, Mr. Morse, that if this committee should take up the question of goods going to the Philippine Islands from the United States, they probably would follow the lines of the bill already reported in the last Congress, passed through the House by almost unanimous vote, or by a very large vote, making those goods free after the end of the ten years of the Spanish treaty-goods going from the United States into the islands, as well as goods coming this way. If we take up the subject at all, I presume the committee would not change their minds on that proposition, and if you would be content with filing your brief to be printed in the record, where it can be referred to, I do not think it is necessary to read it. Mr. MORSE. What I am after is a protective tariff. The CHAIRMAN. You want a protective tariff? Mr. MORSE. Yes; on goods going into the Philippine Islands from Germany, France, and England. The CHAIRMAN. Of course the subject of the tariff on goods going into the islands might be considered in the same connection. We will hear you on that if you want to read your brief, or you can print it, as you desire. Mr. COCKRAN. Is this for the good of the Filipinos? Mr. MORSE. Yes, sir. Mr. COCKRAN. You want to put up the price of the commodities for them so as to increase their general comfort? Mr. MORSE. Yes, sir; and to give them the benefit The CHAIRMAN. Proceed, and read your brief. Mr. MORSE. I have investigated very carefully at long range conditions in the Philippine Islands, and I know positively that with the present tariff eliminated from the consideration, making it consistent for us to send our commercial representatives there, we could sell in the next few years several thousands of our motors to be used for the same commercial purposes for which they have been adopted in our contiguous territory. The result of the introduction and use of motor boats capable of developing 8 or 10 miles an hour at little expense as compared with the native bateau now in use, the speed of which averages 2 to 3 miles per hour, is very apparent. The ratio of actual business from inquiries received is 1 order from 57 inquiries. The representative cities and towns from which we have had requests for information that would indicate on the part of the inquirer an interest and desire to apply the gasoline engine to his use numbered, in 1908, 26. Now, these inquiries, which we call prospective business, cost us thousands of dollars, and we are prevented from enjoying remunerative returns in the way of a large volume of business through the action of the import duty on the gasoline marine engine, an article of common use. The evidence we have in our current files leaves no doubt concerning the correctness of the foregoing statement. Three specimen paragraphs will serve to show how directly the matter may be traced: First. As evidenced by the sales of the companies now in the field (referring to European builders), I believe there is a good opening for motors in this territory, but American-made engines have to pay the same duty as and compete with the cheaper-made motors of the European. This puts a black eye on the American motor. Second. I am confident that once we get your motor started here there will be more to follow. The customs farce is the cause for my delaying. We have ideal waters for small craft the year around. The natives take great interest, and once the tariff obstacle is removed I look for brisk business. Third. "I am anxious to place an order with you, but two things are against it." (This letter was written July 1, 1908.) "First, the prevailing hard times and the customs duties which we have to endure against importations from the United States." He goes on to state that it shall mean a great many orders from us if this tariff pressure may be in some way alleviated. Thus you see we are facing a barrier in all our efforts to sell to the island trade. I have other specimens here which I will later incorporate more completely in the brief I intend to file. To give you an idea to what extent the marine motor is a commercial proposition and how it has grown away from the original purpose for which it was intended-that of supplying power to pleasure boats and branched out as has the automobile industry through commercial channels of its own making. In Newfoundland British Government has caused to be removed tariff on gasoline engines in order to encourage their use in the fishing trade with very satisfactory results, for since their adoption more generally there has been a perceptible increase in the volume of fishing and in the number directly interested in the business. In Scotland the fisheries people are largely taking to the motor boat. In Alaska the salmon fisheries use gasoline motors almost exclusively, and so it is on both coasts of the United States in the fishing industries and in the oyster business. On our lakes and rivers the fisherman who has not a power plant installed in his boat is actually playing a losing game, for, dependent upon wind and weather, he often finds himself starting out as the power boatman is returning with his catch. In Russia the Government is about to install an express system that will employ boats propelled by gasoline motors and for the purpose of dispensing with present larger steamboats they have found to be cumbersome in carrying out the idea of rapid water transportation. This I submit as evidence to bear out my statement that the gasoline engine is a commercial engine and we, representing the manufacturing industries, should be allowed to participate in the profits on sales made in the Philippines. We are not asking for a prohibitive duty, but we need an advantage that shall enable us to introduce our engines into the islands. The present tariff of 15 per cent on marine engines, and 30 per cent on motor boats, the boats in whatever form, whether knocked down or set up, places us on the same plane with England, France, and Germany, countries where, owing to the lower rate at which labor is secured, this commodity is produced more cheaply, though at a sacrifice of efficiency. There is no means of knowing the number of this distinct type of engine that have been imported into the islands. No distinction has been made between the steam and gasoline feature, for in most cases consignments are entered as marine. engines, very often merely as machinery. The foreign idea in building finds expression in the heavy, complicated machine, in which very little improvement has been made for a number of years, while in the United States we have demonstrated that the lighter and more simple engine is capable of a higher degree of efficiency covering a greater period of time, and can be produced at a lower cost, and in order to keep in line with home competitors it is necessary to improve in some features from season to season. Our foreign competitors can afford to send their representatives to the Philippines through their commercial relations developed in the Far East during the past one hundred years. It is undoubtedly the man on the ground who gets the business. We can not compete with them by this means under existing tariff conditions. The American plan is to build and sell larger quantities at small profits, making the volume of increased business bear the profit, for it is well known in manufacturing that one hundred pieces may be produced at a lesser individual expense than one piece and that one thousand may be produced cheaper than one hundred. We are willing to and capable of competing with the Philippine business in this line if the tariff on our engine is removed and a protective 25 per cent placed on engines of foreign manufacture. Five years ago not more than one-half dozen builders were interested in the development of the type of motor known as "two cycle," of which type we are the largest builders to-day, and at present the publicity section of Power Boating, the representative organ published in the interest implied by its name, lists about 100 manufacturers and assemblers. The experimental work of any of the more progressive of these companies would run into many thousands of dollars per year. We manufactured and sold 5,000 engines this year, and have the facilities for doubling this output if we can secure the demand for our goods. If we can sell 500 or 1,000 more engines each year and keep adding to this number it will soon make it possible for us to operate full force during the entire twelve months. We employ in our busy season between 600 and 700 men, which in the dull season, when the demand ceases through winter weather prohibiting the use of boats here in the United States, we have to cut |