that it will keep only in hermetically sealed tins; for this reason and because of its entirely different appearance and flavor compared with the Spanish olive, it is commercially, and in fact, an entirely different article. An increased duty could in no way benefit the California interest and would only result in adding to the cost of the imported article, restricting its consumption, and hence materially reducing the revenue derived from this source. The imported olive sells from 40 cents to $1.50 per gallon in bulk, while the California product does not bring more than about 50 cents per gallon in bulk, conclusively showing that the price of the domestic article is not held down by competition of the foreign olive, but its value is decided by its intrinsic merit and its appreciation by the consumer. We urge upon you consideration of the fact that the imported olive is a raw material indispensable to an important American industry of an annual amount of $3,000,000, in which the American interest enters for $2,040,000 and the foreign for only $960,000; and, further, it is our earnest belief that a reduction of duty from 15 cents to 10 cents per gallon, for which we petition, would so stimulate this industry that the present revenue would be most materially increased. There are annually imported approximately 10,000 pipes of 160 gallons each, representing foreign interest of foreign value_-_-_ While the American interests are: American-made bottles, cases, labels, etc. American profits of this industry. United States revenue on above importations.. Total American interest_. $960,000 $1, 000, 000 2,040, 000 3, 000, 000 After many years of effort and experiment, California can oppose 75,000 The enterprise and activity of California growers has been demonstrated by their success in the cultivation and preparation of prunes, dried apricots, and peaches, in which articles they have not only stopped importations, but have also exported and successfully sold these fruits on the very markets that formerly supplied the United States. Hence, it is self-evident that their failure to produce any showing in keeping on olive growth is attributable not to lack of will and energy, but altogether to soil and climate which can not produce an olive similar to the imported Spanish article. OLIVE OIL We take from the exhibit submitted by Mr. Edward F. Woodward, chairman of the California commission, the following figures: Importation of olive oil in 1898. Gallons. 736, 877 3,449, 517 Showing an increase of 2,712,640 gallons in nine years, or at the rate of 300,000 gallons each year. The California production of 1907 is stated as 350,000 gallons. The subcommittee admit that an orchard of 160 acres, after being cultivated for fifteen years and producing during eight years, re sults in an income of $1.35 per acre during time of production. The logical deduction would be that the best of care and attention which it is stated was given this orchard could not combat the natural causes of this poor result, which were unsuitable climate and soil. The report does not state the quantity of oil produced by this orchard, or this figure would have been more instructive. The profit, however, seems to show that it must have been very small, and certainly no amount of protection could have increased the yield. It is doubtless unnecessary to enter into further details to show that the conditions governing the production of olive oil are similar to those already stated concerning olives-i. e., the olive tree can not successfully thrive in unsuitable soil and climate-and this from results obtained appearing to be the case in California, it is difficult to see how this State could succeed in producing the quantity required by consumption, but even should it be able to do so, the present duty, equivalent to 30 per cent of the foreign cost, as shown by the California committee, more than offsets the difference in cost of Californian and European labor. The annual increase in the consumption of olive oil is almost as much as the entire production of California, and this increase augments annually, chiefly by reason of the efforts of the medical profession urging its use as a nutritious, palatable, and healthful food, and in many cases as a remedy. California has reason to be proud of the immense increase in its production of walnuts, oranges, prunes, etc., to which its committee. calls attention, but reading this report further it states that the production of olive oil in Italy is fully equal to the total production of all other European countries combined. Now, when we compare these statements to the one of the 160-acre olive orchard, we are forced to the conclusion that growth and yield are the result of natural causes, and can not either be produced or increased by protection or added. cost of labor. We therefore respectfully submit that the duty be made 30 cents per gallon upon olive oil in small packages as ample, and further that if the duty on oil in bulk was reduced to 20 cents per gallon, the result would be an American industry in bottling far exceeding the one established in bottled olives. We would most urgently recommend that olive oil imported for industrial purposes free of duty should be thoroughly denatured and rendered absolutely unfit for use as an edible oil." Respectfully submitted. December 16, 1908. La Manna Azema & Farnan, 397 Washington street, New Henry McGruber & Son, 66 Washington, Brooklyn; GRAPES. STATEMENT SUBMITTED BY FRANCIS E. HAMILTON, NEW YORK CITY, IN BEHALF OF IMPORTERS OF ALMERIA GRAPES. COMMITTEE ON WAYS AND MEANS, NEW YORK, December 10, 1908. Washington, D. C. GENTLEMEN: Your petitioners, importers of Almeria grapes, respectfully request that paragraph 265 of the act of July 24, 1897, be omitted from the revised tariff now under consideration, and that grapes be placed upon the free list. The reasons supporting this request are briefly as follows: The grape industry of California requires no protection, as it now produces and markets nearly three times as many grapes as are imported, while the foreign grape industry has been so burdened by the existing duty that it is in danger of extinction. The importations of the season just closed are quite decidedly less than for 1907, and the reports from Spain, where the grapes are grown, show that the producer has made no profit from his vineyards and is ready to give up the industry if the duty remains. The fruit is no longer a luxury and should be within the reach of all citizens, but as this country is unable yet to meet this demand, unless foreign grapes are brought in the consumer will either be unable to enjoy the fruit, or, on account of the shortage, the price will place it beyond the reach of the masses. The question of revenue, never having amounted to $300,000, is too small to be of moment in comparison with the rights and interest of the public and consumer, who should be permitted the use of this healthful fruit at the minimum cost. The duty is not required as a protection to the home product and is only called for by the home producer in order that he may reap the benefit of the higher prices thus established. The present consumption of grapes grown in California and Spain in the American market is about 55,000 tons, of which quantity during the present season California supplied 41,000 tons. This is no longer an infant industry requiring protection, as the home product is nearly three times as great as the quantity imported. Almeria grapes do not compete with California or home-grown grapes, as the time of marketing and the quality of the grapes are separate and distinct. California grapes market from September 1 until about November 15. Almeria grapes market from October 1 until about December 15, although the larger part of them are held by jobbers in cold storage and sold to the retailer and consumer from January 1 until April 1. The California grape must be eaten within seventy-two hours after leaving the refrigerating car. It is not a fruit that will store or keep. These conditions separate the fruits so that it can not be claimed in justice that the imported grape has any effect upon the price of the home product. If the Almeria grape fails to be imported, however, the price of the California would as a natural consequence advance, since California is not yet producing a large enough quantity to supply the demand. Under the present duty rate the Almeria grape can not be successfully imported. This condition has developed within a very few years and for this reason: The cost of the production of the grape in Spain has nearly doubled in the past ten years, and the cost of the labor to produce it at present rates, far higher than even three years ago, together with the expense of packing, cartage, and freight, has entirely absorbed whatever of profit the trade formerly yielded. It is an admitted condition among both the growers and importers of Almeria grapes that unless the duty is removed the business will continue but a short time, with the necessary result that the American market will be short of grapes and thus left entirely to the mercy of the home growers. To establish the fact of the present precarious condition of the trade we submit the following data: Almeria grapes sell in the New York market at an average price per barrel, 45 pounds net, of about $3.15. The cost of production and transportation is substantially as follows: Cost of picking, packing, and cartage to dock.... Cost of package_. Cost of cork packing. Duty per barrel. Auction charges, commission, insurance, etc., New York- Actual cost to grower. Barrel. $0.285 60 .15 .43 .39 .30 1.10 3.255 It will readily be seen that if the above figures are correct it will not be long until the producer, whose fruit must pay all charges before it can return to him the actual expense for labor per barrel, $1.10, which he has paid out during the year of growing, recognizes that his business is a losing one and gives it up. This result would have taken place some years since if the grapes were grown by great organizations as in California, where mutual knowledge and mutual helpfulness aid the individual; but in Spain each small nurseryman works for himself, few have vineyards producing over 500 barrels of grapes annually, and as each man puts his own labor in, it is not until he finds his work actually going for nothing, his grapes crossing the sea, but no money coming back, that he realizes the conditions. The past two years, however, have brought this serious question home to the grower, and as a result it may be positively stated that unless the duty is removed so that the producer in Spain can receive some returns for his crop Almeria grapes will disappear from the markets of the United States. Further verified figures as to cost, both of labor and expense of growth, will be submitted to your honorable committee as soon as received from Spain. In conclusion, we earnestly urge that the duty upon grapes be entirely removed, first, because such duty is not a revenue producer in any event; second, because it is no longer needed to protect the grape industry of the United States, which now produces three-fourths of all the grapes consumed in this market; third, because, if not removed, the imported grape trade will cease, the public be deprived of the fruit, and the price of the home product necessarily be advanced, to the detriment of the consumer. Very respectfully, Sgobel & Day, per II. W. Day; Argenin Carl Rainey, HONEY AND WAX. THE HAWAIIAN BEE KEEPERS' ASSOCIATION URGES RETENTION OF PRESENT DUTY ON HONEY. WASHINGTON, D. C., December 10, 1908. COMMITTEE ON WAYS AND MEANS, Washington, D. C. GENTLEMEN: The honey and wax industry in the Hawaiian Islands represents an investment of some $250.000. The industry is one of the few minor industries that is established and on a paying basis. However, the margin of profit is so small that a discontinuance of the present tariff would ruin the local industry. The net profit does not average more than one-half cent per pound, while the duty on honey amounts to 13 cents per pound. The Hawaiian product comes in direct competition with Cuban honey, and Cuba can produce honey and pay the duty of 13 cents per pound and sell at a profit for the same price that the Hawaiian producers receive. As is the case with all products of Hawaii, honey and wax must go to the mainland or world's market. There is no chance whatever to sell an appreciable amount locally as a table honey, neither are there large baking or confectionery concerns here that can use it in bulk; neither can the Hawaiian producers place their honey on the main |