PARAGRAPH 246 CHEESE. nearly prohibitive were it not for the necessity felt by the people for this hygienic and medicinal fruit. Some of the countries have lowered the duty on lemons, and others have placed the same on the free list, as it was done, per example, by our neighboring Canada. California lemons are fine in appearance, but lack the acidity possessed by the fruit from southern Italy; however the production increases annually and will in time yield a supply sufficient for the entire United States and even for export. The disadvantage with California lays in the fact of its climatic changes; for instance, this year California has suffered from a heavy frost; consequently the crop will be reduced to one-fourth or perhaps even one-fifth of its customary quantity; as a result of this, prices on lemons advanced $2.50 per box on former prices, and will probably keep advancing, with the disadvantage to the people who are compelled to pay exorbitant prices. With a reasonable tariff, lemons could be imported freely in this country, and the masses would reap the benefit in buying this hygienic fruit at a low cost. In my humble opinion I believe that lemons should be on the free list. Let them come from all parts of the world where grown, let California produce all she can, and let the people have all the lemons they can use at a cheap price; by benefitting their health they will have less doctors' bills to pay. The inhabitants of the crowded districts, who have not the opportunity of going in summer to the seashore or mountains, should at least be able to enjoy a good pitcher of lemonade to benefit their health. In reference to oranges, it matters not if they pay a duty of $1 per box or they are placed on the free list. They will never be imported here from abroad, as our crops will be abundant, ever increasing, and we can export them to Europe. California produced 11,000,000 boxes last year, Florida 4,000,000 boxes, and Porto Rico 365,000 boxes, of which there has been exported in the same period 1,600,000 boxes, the larger part having gone to Canada and the remainder to England, Germany, and France. The recent frost in California will naturally reduce the crop, as oranges do not suffer from frost as much as lemons, but the supply will be sufficient for this country. Oranges are in demand in the north of Europe, where high prices are obtained. A low tariff on oranges, however, would be reciprocated by European countries, who would probably reduce their duty, benefitting our exportation. ANTONIO ZUCCA. MEMORANDUM FROM THE NORWEGIAN MINISTER. The Hon. OSCAR W. UNDERWOOD, Department of State, Chairman Committee on Ways and Means, House of Representatives. SIR: At the request of the Norwegian minister at this capital I have the honor to inclose for the information of your committee a copy of a memorandum alleging that in the existing tariff act the classification of certain Norwegian importations will be found to have led to results which were not intended. I have the honor to be, sir, Your obedient servant, The legation of Norway ventures to draw the attention of certain Norwegian specialties for which the prevailing classification of goods in the existing tariff act certainly will be found to have led to unintended results. Whey cheese (tariff act, sec. 246).—A special Norwegian product is cheese manufactured from the whey of the milk. Though it is a cheap product, it is a wholesome and highly nutritive food. In the United States it is exclusively used by the population of Norwegian extraction. As far as is known it is not at all manufactured in this country. This product being made out of the cheapest part of the milk-the wheyit ought not to pay so high a duty as real cheese. Nor is it cheese in the true sense of the word. Norwegian sardines, in oil, in tins (tariff act sec. 270).—When the rate of the duty on fish in oil, in tins, was fixed regard was probably taken principally to French and Portuguese sardines, which command higher prices than the Norwegian sardines. PARAGRAPH 246-CHEESE. Since then the sardine industry of Norway has developed to a considerable extent, but the importation of Norwegian sardines into the United States has unfortunately not developed on a normal basis. The Norwegian sardines which sell at a moderate price are in the United States chiefly used by the laboring classes, and the importers claim that the tin must sell at a price not higher than 10 cents. The consequence of this has been that to a great extent the poorer qualities of Norwegian sardines are imported into the United States, it being impossible to produce the better qualities of Norwegian sardines at 10 cents, including the existing import duty. As the best qualities of Norwegian sardines contain up to 18 per cent fat, while the poorer ones contain only 8 to 9 per cent fat, the difference in quality denotes as far as this article is concerned not only a difference in flavor and appearance, but a great difference in nutritive value. The bulk of sardines imported into the United States being at the present time probably Norwegian sardines, it will certainly be found just that the lower price and the class of consumers of this article are taken into consideration when the duties are fixed. All other fish in tins (tariff act, sec. 270).—If we go only a few years back, we will find that the cheaper kinds of fish were not packed in tins, this package being reserved for products having the character of fancy or luxury and used by people in easy circumstances. In later years a great change has taken place in this respect, tin package being now employed even for the cheaper qualities of fish products used as ordinary food by the laboring classes. This is at least the case as far as products of Norwegian fisheries are concerned. Even salted codfish (splitfish) is exported in tin packages, especially to countries with hot climate, but the splitfish is for this reason not changed into a new or a fancy product, being able to support higher duty. The reasons for a special high duty on fish in tins therefore seems to have diminished. Salted codfish (splitfish) (tariff act, sec. 273). In the existing tariff the same duty per pound has been fixed for salted as for dried fish, the salted fish having thus to pay an extra duty for the salt and water contained in it. The salted fish being very heavy, on account of the salt and water it is holding, the duty has proved to be completely prohibitory to the importation of Norwegian salted fish. The minister of Norway should appreciate very much if a copy of this memorandum could, through the kind intervention of the State Department, be transmitted to the Committee on Ways and Means. EXTRACT FROM THE COMMERCIAL REVIEW. The COMMITTEE ON WAYS AND MEANS, Washington, D. C. NEW YORK, December 28, 1912. GENTLEMEN: I take the liberty of inclosing herewith a clipping from this month's issue of the Commercial Review of an article written by me, which will show you my attitude toward the revision of the tariff, and as an American citizen engaged in the importing and exporting business I beg to state briefly my opinion concerning desirable changes that may be advantageous in the interest of all concerned, viz: Schedule A, Olive oil: The present rate of 50 cents per gallon on packages containing less than 5 gallons does not seem to be at all justified, both from the point of view of domestic competition, as the production is such that can not be considered a factor, nor from its consumption, because it is essential as an edible as well as a medicinal article, hence can not be classed as a luxury. I don't believe it is necessary for me to go into any explanation of its use, because as a matter of fact it is an article consumed by the people at large, and its beneficent effects are too obvious to mention; therefore the price should be within the reach of the consumers, particularly among the poor class, and in view also of the prevailing conditions of the crops in the various places of origin, which of late years have been very short, the cost is kept at a very high level, at would be advisable that the duty be reduced to 25 cents per gallon. Schedule G, Cheese: There is no valid reason why foreign goods should be taxed to the extent of 6 cents per pound, equivalent to about 30 to 35 per cent of the value according to the quality and cost, which is undoubtedly exorbitant, considering, first, that this country exports cheese to a great extent to foreign countries; second, that most of the varieties, particularly coming from Italy, can not be imitated or manufactured in this country, thus it serves only to enhance the cost to the consumer; therefore I would suggest that the duty on cheese be reduced to 3 cents per pound. Schedule G, Canned vegetables: I would particularly refer to preserved tomatoes and prepared tomato sauce in cans. Same are now subject to 40 per cent ad valorem and PARAGRAPHS 247-248-MILK. at the present prices the market value of Italian tomatoes here is nearly 100 per cent higher than the domestic goods; and as to the sauce, it is not even manufactured in this country; same is now selling from $4.75 to $5 per 100 tins, weighing about half a pound each; however, considering that it is used mostly by working people, it becomes a luxury, although a necessary ingredient for their meals, consequently I would recommend that the duty on both of said products be reduced to 20 per cent. Free list: I would also recommend that all raw materials as well as semimanufactured goods be free of duty, for the reason that whilst it would tend to reduce the cost of the products to the consumers, it would enable the manufacturers to favorably compete in foreign countries with the object of expanding the foreign commerce of the United States. Maximum rates: The provision calling for maximum or countervailing rates has undoubtedly not responded adequately to the expectation, having been rather a source of constant trouble and embroilment with foreign countries, because it is impossible to provide for all contingencies, and rather than create any friction it would be preferable to abrogate that provision and substitute in lieu of it a clause for the stipulation of special treaties with those nations that may offer reciprocal advantages. Respectfully submitting the above for your kind consideration, I remain, Very truly, yours, PARAGRAPH 247. Milk, fresh, 2 cents per gallon; cream, 5 cents per gallon. PARAGRAPH 248. ACHILLE STARACE. Milk, preserved, or condensed, or sterilized by heating or other processes, including weight of immediate coverings, 2 cents per pound; sugar of milk, 5 cents per pound. MILK. TESTIMONY OF LOUIS J. AUERBACHER, REPRESENTING THE AMBROSIA MILK CORPORATION, NEW YORK CITY. The witness was first duly sworn by the chairman. Mr. AUERBACHER. Mr. Chairman and gentlemen of the committee, I come here to protest against the maintenance of the duty on preserved milk at the present tariff rate, which is 2 cents per pound duty. In the present tariff there is a duty of 2 cents per pound on dried milk, or preserved milk, as it is listed, which is equivalent in the liquid to about one-half cent per quart. I do not know whether the members of this committee are conversant with the great feature of preserved milk and the great rôle it is playing in the milk supply in this country to-day. Health authorities and physicians and all people conversant with milk are doing their utmost to encourage the drying of milk, which is one of the large industries of Europe to-day, and the one logical way to handle milk. It enables you to pay a little more for the milk to the farmer; it enables you to charge a little less to the consumer. Why? Because you are not paying icing charges; you are not paying transportation charges on seven-eighths of water; and you are bringing in a germ-proof product which is not contaminated. I believe it is wrong that we should tax this product, which is being used, especially amongst the poor, to a great extent for feeding their babies, as it is found superior to the liquid product, and it is used a great deal amongst the hospitals, and it is a product which in the future will play a very large rôle in the milk supply of this country, as it is playing abroad. We are bringing it in from France, as well as starting to manufacture it here, and there is no reason why, when the milk shortage occurs here, as it does periodically every year, we should not PARAGRAPHS 247-248-MILK, be able to bring milk from Canada, from France, from the Argentine, or from wherever we wish, and the freight plays very little in the cost of the product, while the duty of 2 cents per pound, equal to one-half cent a quart, is simply a tax on one of the greatest food products we have. I trust you will carefully consider this and bear it in mind when you come to that part of the schedule. Mr. HILL. How is it dried? Mr. AUERBACHER. By coming in contact with a heated roll, heated to 300° F., and the water passes off in steam, and the milk comes off like a sheet of paper, a process which at the same time makes it free from bacteria and more assimilable than the raw milk. I believe the medical authorities of this country are agreed that it is far better, especially for infant feeding and for invalids, and naturally better for anybody, than the raw milk. I believe the chief health officers, in fact I know the chiefs of the milk committee, feed their own families with it, because it is a safe thing. Mr. LONGWORTH. What is the retail price? Mr. AUERBACHER. Skim milk is sold to the bakers; the bakers of this country are using such a large amount of it that they have to bring it from Canada now. That grade of milk, I believe, sells for about 10 to 12 cents a pound, equivalent to about 3 cents a quart. The one-half cream milk and the full cream milk is sold at the rate of 10 cents a quart. That is equivalent to the best certified milk, such as the famous milk farms give you, which sells, I believe, at 15 cents a quart. Mr. LONGWORTH. I wish you would put that in pounds. Mr. AUERBACHER. Four and one-half ounces is equivalent to about a quart, so that for skim milk, selling at 12 cents a pound, it would be equivalent to a little over 3 cents a quart. The CHAIRMAN. I understood you to say it takes 4 pounds of this? Mr. AUERBACHER. Four and a half ounces. I beg your pardon if I said pounds. Mr. LONGWORTH. That would be nearly 50 cents a pound. Mr. AUERBACHER. It would be about 32 cents a pound, if it is 8 cents a quart; if it is 10 cents a quart, 40 cents a pound; if it is 12 cents a quart it would be 48 cents a pound. Mr. LONGWORTH. That is equivalent to a duty of only 4 per cent. Mr. AUERBACHER. I do not know what the equivalent duty is; it may appear small, but I take the stand that it is not right to tax the greatest food product we have. Mr. LONGWORTH. Do you mean to say that a duty of 4 per cent is a prohibitive duty? is Mr. AUERBACHER. I never made that statement; I simply say it wrong, morally wrong; wrong from every standpoint to tax the milk supply of this country one-half cent a quart. It may not appear much to-day, but the powdered milk supply, on a tax of one-half cent a quart, is going to mean a great deal of money, especially in the arts, to the bakers, and to the chocolate makers, who are using it in increased quantities. Why should they pay one-half cent a quart more when they can not get enough milk here? Why should they not be able to get milk from somewhere else without paying a tax. Mr. PALMER. Why should anybody pay taxes? PARAGRAPHS 247-248-MILK. Mr. LONGWORTH. But when you are talking about taxes, a 25 per cent tax would amount to something in your argument, but a 4 per cent tax is absolutely negligible. Mr. AUERBACHER. No; it is not negligible. You are paying 10 cents a pound for the dry product, and if you have to pay one-half cent a pound it is not negligible when you buy a great many tons of it. Mr. LONGWORTH. But if you figure it up in quarts you get 50 cents a pound; the duty on it is only 2 cents a pound, which is only per cent. 4 Mr. AUERBACHER. That is on the full cream, on the smallest product used. Take the largest product, the skim milk, the price is 10 and 12 cents per pound for the dry product, then the duty is 15 to 20 per cent on it; and in summer you well know you can not get enough milk in this country. There is not enough milk raised. Why should we not be able to bring it in from somewhere else without paying a duty on it? Mr. HILL. Where is it imported from? Mr. AUERBACHER. It is imported now chiefly from France, where they have a lot of very good milk from Normandy cattle. Why should we not be able to get good milk from France? Mr. PAYNE. Why is it not manufactured here? Mr. AUERBACHER. It is manufactured here in very large quantities; in enormous quantities. I doubt if there is a baker in New York who does not use it. Mr. PAYNE. Is it imported in large quantities? Mr. AUERBACHER. It is imported in large quantities also. Mr. PAYNE. Then it is not a competitive tax, as the language is used here, is it? Mr. AUERBACHER. I do not know that it is really a competitive tax. If the people want it they simply have to pay the increased price for it. We simply pass it on to the consumer. I should just as leave make 10 per cent on 12 cents as on 10 cents. Mr. PAYNE. Do you not think as long as there is a duty on milk there should be a duty on dried milk? Mr. AUERBACHER. I have not got any think on that score at all, because I am not in the liquid end of the milk business; but I do know the dried milk is going to be the bigger end of that business very soon. BRIEF OF THE NATIONAL MILK SUGAR CO. OF VERMONT AND THE DRY MILK CO. OF NEW YORK. The WAYS AND MEANS COMMITTEE, House of Representatives: On behalf of the Dry Milk Co. of New York and of the National Milk Sugar Co. of Vermont it is respectfully submitted that paragraph 248 of Schedule G, tariff act of 1909, should not be changed. This paragraph covers milk, preserved, condensed, or sterilized, 2 cents per pound, and sugar of milk 5 cents per pound. These products are both intimately related to the dairy, and the basic or raw material, skimmed milk, is purchased from the farmers of the United States. Skimmed milk 10 years ago was almost a drug in this country. It was fed to the pigs and calves, where such stock was on the farm, and it was sold when any purchaser could be found. It was almost a waste product, bringing from 5 to 15 cents per |