PARAGRAPH 265-POTATOES.

The Hollander grows from 50,000 to 60,000 plants to the acre. Here we grow from 18,000 to 20,000 per acre. He produces large bushes, but the growth is forced, the wood soft and pithy, and the plants do not succeed, seldom surviving over a year. The public does not know this, and buys the plants because they are cheap.

Nursery stock is in its nature perishable; it must be sold when it arrives at the marketable age and size. If it is not then sold it is dug and burned; it can not be laid on the shelf and be carried over to another season, like merchandise. This condition led to the dumping of large consignments of stock from Europe to be sold by auction on commission, and all that was received above freight and expenses was clear gain. This was largely done previous to the duty of 25 per cent which the goods now carry.

We ask that the present rate of 25 per cent ad valorem on trees, shrubs, and evergreens known as nursery stock be retained.

The present rates of duty are now satisfactory, and there is less friction and fewer misunderstandings in administering the law than at any time within the last 20 years.

We also ask that evergreen seedlings now on the free list should be defined by the words "three years old or less."

Mr. HARRISON. Do you not think, with the tendency of modern times toward reforestation, that it would be a mistake to impede the importation of evergreen seedlings?

Mr. ROUSE. Exactly so; we do not ask for any duty. We simply ask that the age should be defined. Evergreen seedlings to be transplanted should not be more than three years old. Under this ruling, as made by the United States appraisers, a seedling may be 20 years old and 20 feet high, and I do not think it was ever intended to have such old or large trees brought in free of duty.

Mr. HARRISON. Even the bringing in of old and large trees to be transplanted would be a good thing, do you not think?

Mr. ROUSE. They can not reforest with large trees; that is impossible.

Mr. HARRISON. I should think that anything they can transport across the ocean could be transplanted.

Mr. ROUSE. It would cost too much, and it would not be feasible to plant such large trees. It was intended to transplant these seedlings, but they simply left out the age definition, and by leaving that out the large trees were allowed to come in.

PARAGRAPH 265.

Potatoes, twenty-five cents per bushel of sixty pounds. For potatoes, see also James W. Nye, page 2751.

POTATOES.

BRIEF OF F. B. VANDEGRIFT & CO., PHILADELPHIA, PA.

Hon. OSCAR W. UNDERWOOD,

PHILADELPHIA, March 9, 1912.

Chairman Ways and Means Committee, Washington, D. C.

SIR: The recent shortage of the potato crop in this country, necessitating the importation of great quantities, has brought to our attention a condition which should be remedied by legislation. The shortage affected not only this country, but the Continent of Europe as well, so that the different countries affected had only Ireland and Scotland to draw supplies from.

PARAGRAPH 265-POTATOES.

Germany, although the largest producer of potatoes in the world, in the fall of last year removed the duty from them, which at once gave them an advantage over this. country of 25 cents a bushel, and was therefore in a position to obtain not only a better grade of potatoes, but if their needs warranted it, could prevent the buyers in this country going into the markets of Ireland and Scotland to obtain such an important article of food until Germany was supplied.

We do not know the manner of accomplishing this legislation by the German Government, but we do know from the history of tariff legislation in this country that several months would elapse before the people would receive the benefit and there would be no remedy when such shortage occurred while Congress was not in session.

We deem such a condition should be remedied in the interest of the consumer, especially at this time when there is such a cry about the high cost of living, and we therefore have the honor to direct your attention to same for the purpose of investigation and with the view to having an act passed authorizing the President to remove or reduce the duty (as in his judgment may be necessary) for a certain period of time on any staple article of food whenever satisfactory evidence shall be produced to him showing that there is a shortage and such shortage will necessitate the importation of a considerable quantity of such staple to meet the demand.

We attach herewith a statement issued by the Statistical Bureau showing the extent of the potato production of the world, and your committee will find upon investigation that this country is now drawing supplies only from Ireland and Scotland.

We are, yours, respectfully,

[Inclosure.]

F. B. VANDEGRIFT & Co.

IMPORTS AND EXPORTS OF POTATOES, 1901-1911.

The recent announcement that large quantities of potatoes are being imported into the United States lends interest to a statement prepared by the Bureau of Statistics, Department of Commerce and Labor, showing the imports and exports of potatoes during a term of years. While the production of potatoes in the United States is usually sufficient to meet the requirements of its population, there have been a number of occasions following short crops in the United States on which considerable quantities were imported. On other occasions, when there were shortages abroad and large crops in the United States, considerable quantities were exported. The total imports of potatoes into the United States in the last 10 years aggregated 22,845,634 bushels, valued at $10,985,770, or about 48 cents per bushel, this valuation being based upon the wholesale market price in the countries from which imported and does not, therefore, include the cost of transportation or duties paid, the rate of duty being 25 cents per bushel of 60 pounds both under the present law and its immediate predecessor. The exports of potatoes from the United States during the same decade amounted to 10,900,566 bushels, valued at $8,413,675, an average of 77 cents per bushel.

Potatoes imported into the United States come chiefly from Canada, Mexico, and Bermuda in America, and Scotland, England, Ireland, Germany, and France in Europe, while in recent years small quantities have also been brought from China, Australia, and the Canary Islands. The potatoes exported go chiefly to the West Indies, Central America, and Canada, the largest quantities usually go to Cuba, Canada, and Panama and lesser quantities to other Central American States and the West Indian Islands. Small quantities have also been sent in recent years to China, Hongkong, British Guiana, the Philippine Islands, French Oceania, and certain of the South American countries, but practically none to Europe, which, although a large consumer of potatoes, is also a large producer.

The world's potato crops, so far as it can be measured statistically, runs between 5,000,000,000 and 6,000,000,000 bushels per annum, but these figures do not include the production of China, North Africa, and most of South America, the original home of the potato, which was found under cultivation in South America by the Spanish discoverers and transplanted to Spain and thence to other parts of Europe. Germany is by far the largest single producer of potatoes, her total crop for 1909, the latest available figures, being 1,716,000,000 bushels, against 1,173,000,000 in European Russia, 613,000,000 in France, 480,000,000 in Austria, 184,000,000 in Hungary, 137,000,000 in Great Britain, 120,000,000 in Ireland, 99,000,000 in Canada, and 377,000,000 in the United States.

New York is the largest potato-producing State in the United States, her product in 1910 being 44,500,000 bushels, against 35,000,000 in Michigan, 28,000,000 in Maine,

PARAGRAPH 266-OIL SEEDS.

28,000,000 in Pennsylvania, 25,000,000 in Wisconsin, 15,000,000 in Ohio, 12,666,000 in Illinois, 12,250,000 in Iowa, and about 10,000,000 bushels each in Minnesota and New Jersey, while practically all the remaining States are represented with totals ranging from 1,000,000 to 8,000,000 bushels each.

The largest importation of potatoes during the past decade occurred in 1909, being 8,333,000 bushels; the largest exports of the decade occurred in 1911, being 2,333,000 bushels.

PARAGRAPH 266.

Seeds: Castor beans or seeds, twenty-five cents per bushel of fifty pounds; flaxseed or linseed and other oil seeds not specially provided for in this section, twenty five cents per bushel of fifty-six pounds; poppy seed, fifteen cents per bushel; mushroom spawn, and spinach seed, one cent per pound; beet, except sugar beet, carrot, corn salad, parsley, parsnip, radish, turnip and ruta-baga seed, four cents per pound; cabbage, collard, kale, and kohl-rabi seed, eight cents per pound; egg plant and pepper seed, twenty cents per pound; seeds of all kinds not specially provided for in this section, ten cents per pound.

OIL SEEDS.

TESTIMONY OF HON. W. E. HUMPHREY, A REPRESENTATIVE IN CONGRESS FROM WASHINGTON.

Mr. HUMPHREY. Mr. Chairman and gentlemen, I want to file a brief presented by the Chamber of Commerce of Seattle in regard to soya beans and other oil-producing seeds. We are not able to raise any of these oil seeds on the Pacific coast, and we are so far away from the South that the freight rates are prohibitive on cotton seed.

I want to call to the attention of the committee only one sentence, and then I will file the brief, and I ask that it be given attention because it means a great deal to the dairy industry of our country. It says:

The Manchurian soya beans, which during the past four years have entered extensively into international trade, yields, by crushing, only about 12 per cent oil, or 240 pounds per ton; hence the proposed duty of one-fourth cent per pound on soya-bean oil amounts to only 60 cents per ton of beans crushed, while the present rate on a tou of beans is $15.

I call the committee's attention to that to show that under present conditions it is absolutely impossible to bring soya beans or any of this seed into this country and crush it here. What we wish on the Pacific coast is the tariff so adjusted that the beans can be brought in and the work done here, and they ask for a lowering of the tariff on the bean itself and an increase on the oil.

I also shall present a number of telegrams from industries in the Pacific northwest protesting against the removal of the duty on macaroni, and I shall read only one, a brief one, which gives the substance of all. This is from the Fisher Flouring Mill Co., one of the largest flouring mill companies on the Pacific coast:

Hon. W. E. HUMPHREY,

House of Representatives, Washington, D. C.

We believe if duty is removed from macaroni that it will mean flooding this country with Italian macaroni manufactured with cheap labor and from Russian flour. Will appreciate your support in maintaining present duty.

FISHER FLOURING MILL Co.

PARAGRAPH 266-OIL SEEDS.

Mr. Chairman, I also want to file a letter from one of the breweries asking for a reduction of the tariff on rice; in fact, asking that rice and hops be placed on the free list. This letter sets out that it is a well-known fact that rice is now grown in the States of Arkansas, Louisiana, and Texas more cheaply than in Siam, India, China, Japan, or any other of the countries of the Far East.

Mr. LONGSWORTH. Is that in the interest of the ultimate consumer of rice or the ultimate consumer of beer?

Mr. HUMPHREY. I imagine the ultimate consumer of beer, but inasmuch as they are asking that rice go on the free list I take pleasure in presenting this to this committee.

Mr. KITCHIN. Do you favor rice going on the free list?

Mr. HUMPHREY. Yes.

Mr. KITCHIN. You do?

Mr. HUMPHREY. Especially in view of the action you will probably take on lumber. [Laughter.]

The documents filed by Mr. Humphrey are as follows:

Hon. W. E. HUMPHREY,

NEW SEATTLE CHAMBER OF COMMERCE,

Member of Congress, Washington, D. C.

Seattle, Wash., January 7, 1913.

DEAR SIR: Referring to our telegram of December 4, on the subject of the revision of the tariff on soya beans, we herewith attach for your information a brief on this subject prepared for the chamber. As you no doubt are advised, the Washington State Dairymen's Association has strongly indorsed the appeal for the revision of the tariff on this article along the lines suggested.

Yours, very truly,

C. B. YANDELL, Secretary.

EFFECT OF TARIFF ON FOREIGN OIL SEEDS, OILS, AND OIL MILLING.

A large benefit would accrue to the agricultural and manufacturing interests of this country, and especially to the Pacific coast, if peanuts, soya beans, sesame seed, China wood oil seed or nuts (Aleurites fordii and Aleurites Cordata), when imported for crushing, were placed on the free list in the pending revision, and a small duty placed on the oil and oil cake made from these seeds, to compensate for the difference in cost of production here and abroad.

The large and growing demand in this country for such vegetable oils as peanut oil, soya bean oil, China wood oil, and, to a less extent, sesame seed oil, is now entirely supplied with oils manufactured in European and Asiatic oil mills. Our present protective tariff policy reverses itself with respect to those commodities, in taxing a high rate of duty on the raw material—the oil seeds—while the finished products made from those seeds-the oils and oil cakes-is admitted duty free.

This condition has excluded the American oil mills from participating in a business which of right belongs to them, while foreign and Asiatic oil mills a e enjoying a lucrative business under the protection our tariff gives them. In this connection, it should not be overlooked that the European oil mills are furnishing us with the oils above mentioned from seeds that they themselves must import. A considerable portion of our imports of soya bean oil is made in England from beans brought from Manchuria, but perhaps a larger percentage is made in Japan from beans also grown in Manchuria.

Much of the peanut oil we import comes from France, made there from shelled peanuts brought from China, India, and Africa, admitted duty free in France. Should the American oil miller attempt to crush peanuts in this country, he must pay a duty of 1 cent per pound.

A large part of the coconut oil we import is also made in France, from nuts grown in the Philippines. The coconut oil would be made in this country if our tariff would give a little encouragement to the crushers.

In this country oil milling is practically confined to cotton seed and flaxseed, while in several European countries a very large milling business has been built up by

PARAGRAPH 266-OIL SEEDS.

crushing imported seeds, included imported cotton and flax seed. The large domestic production of flaxseed and cotton seed, of course, would never allow the crushing of foreign-grown oil seeds to assume anywhere near the relative importance in this country that it does in Europe, but our oil mills should be allowed to supply whatever demand there is in this country for vegetable oil made from foreign-grown seeds.

No interests in this country would be hurt by putting those oil seeds on the free list when to be used for crushing. With respect to the soya bean, it has been attempted to grow this bean for upwards of 40 years in the United States. It has received much attention from our agricultural press and experiment stations, yet this bean can not be obtained in commercial quantities in any section of the country to-day at a price permitting it to be used for crushing, notwithstanding that the growing of it is protected to the extent of 45 cents per bushel of 60 pounds, or $15 per ton, in our tariff. In no locality in this country could a carload of soya beans be obtained at the present time, it being grown mainly for hay and soilage, and no doubt the growers would be benefited could they obtain soya beans for seed, free of duty, same as they can grass and clover seed. It apparently does not pay them to produce soya beans for seed. The present ruling prices in the Southern States where grown is from $2 to $2.50 per bushel of 60 pounds.

The variety of Manchurian-grown soya beans exported and used for crushing is not an edible bean in the ordinary sense of the word, and is not eaten in Manchuria, China, or Japan, but used exclusively in those countries for crushing. In fact, no variety of soya beans would ever come into competition in this country with our edible beans as food for the table, being unpalatable, but are a most valuable food for farm animals.

Sesame seed and wood-oil nuts or seed are not grown in commercial quantities in the United States or possessions, and the domestic production of peanuts is insufficient to supply the demand for confectionery and similar uses and are not crushed for oil to any extent in this country.

If the oils we now import could be brought into the country in the seed and crushed on the Pacific coast and such other sections of the country where the supply of oil cake is short, the dairy, poultry, and live-stock interests and the agriculturist in general would receive great benefit therefrom as the resultant oil cake would supply the high protein feed and fertilizer so much required. The long haul from where cottonseed and flaxseed are crushed in this country prevents them now from obtaining a sufficient supply. The Pacific coast section, where no oil seeds of any kind are grown and perhaps never will be, the climatic conditions being unfavorable, would be especially benefited.

An abundant and cheap supply of oil cakes would increase and lower the cost of production and at the same time contribute to the enrichment of our evermore impoverished soils.

Oil cake made from imported seeds brings to us from foreign countries a supply of soil fertility or plant food in the form of highly available nitrogen, phosphoric acid, and potash contained in such a large percentage in the soya bean and peanutto compensate for the soil fertility now shipped out of the country in the cereals we export. The soya bean oil cake meal and peanut oil cake meal have no equals as vegetable fertilizing products, and in this respect puts us on a par with England, Denmark, and other European countries importing oil seeds. The importance of an abundance of cheap oil cakes was fully recognized years ago in these countries, and has contributed so much to the large crop yields per acre, as compared with ours and their agricultural prosperity.

We have now reached a point where the conservation of our soils is of the greatest importance. No class of fertilizer is so desirable as that obtained through oil cake meal, which, after first being fed to our farm animals and supplying them with the most valuable and palatable class of nutrition, leaves in the manure a large, percentage of humus soil fertility and plant food.

When fixing the rate of duty on oil seeds, oil and oil cake, it should be taken into consideration that when crushing a ton of soya beans, only about 37 per cent of the value of the resultant product is in the oil, and that 74 per cent of the value is in the cake, while in crushing peanuts, about 75 per cent of the value is in the oil. In flax seed the oil value of the output is about 70 per cent, and in cotton seed, about 50 per cent; therefore, if the tariff is changed so as to permit crushing soya beans in this country, whatever duty is placed on soya bean products, whether for revenue or protection, the soya bean cake, as well as the oil, should be taxed, the cake being the principal resultant product.

The Manchurian soya beans, which during the past four years have entered extensively into international trade, yield by crushing only about 12 per cent oil, or 240