cents to 1 cent. It certainly ought to be as high as 2 cents, and dextrine, burnt starch, gum substitute, or British gum, which is an advanced product, ought to be either 2 or 3 cents. In the county of Aroostook, Me., potato starch manufacturing is the industry which most affects the farmer. I have traveled over that rich portion of the State and find the starch factories built close at hand to the fields which produce the potatoes from which the starch is made. The farmer takes his potatoes, which he can sell at 30 cents a bushel, to the starch factory, which is almost at his door, and in this way there has grown up a business which converts over 3,000,000 bushels of potatoes into starch, turning out of the latter product something more than 25,000,000 pounds. It is one of the plainest instances of the benefit arising from a judicious tariff, in furnishing a home market. The House bill has reduced the duty on starch 50 per cent., and under such a provision, should it become a law, the manufacturers of potato starch in Maine, and it would be the same in Vermont and New York, would be forced to quit business. It would bring the product of the Dominion farmer across the line, who is glad to sell his potatoes at 12 cents a bushel, into competition with our own product, and destroy the latter. FISH. When you come to consider fish there ought to be a provision to regulate their introduction. The modern processes of preserving fresh fish in ice, which were not considered when the duty was fixed in 1883 . (and I will ask my colleague, Mr. Frye, to come in and present that matter, with an amendment drawn by him covering that subject), that is a business that has grown up altogether within the last few years. LIME. Lime is a thing upon which the duty ought to be specific, I think. The CHAIRMAN. You have a pretty large lime industry in the State of Maine, I think. Senator HALE. Yes; Maine produces the best lime in the United States. The CHAIRMAN. Rockland lime and cement? Senator HALE. Yes; 12 cents a cask would be about 16 per cent. duty. The CHAIRMAN. How many pounds to the cask? Senator HALE. I have just received a dispatch which I will ask the stenographer to take down. It is dated at Rockland, Me., and is directed to me.. It reads as follows: Cost to manufacturers of a cask of lime is 72 cents; weight of a cask is 200 pounds. JOHN S. CASE, Rockland. I telegraphed yesterday, because I wanted this exact information. I knew about it generally, but was not certain, so I telegraphed in order that I might know what percentage 12 cents specific would be. I have no doubt that it would be better in every way, instead of an ad valorem duty, to have a specific duty of 12 cents per cask. Senator HISCOCK. Six cents per hundred-weight. Senator HALE. Six cents a hundred. A cask of lime is a well-known measure of quantity. The CHAIRMAN. They put 200 pounds in a cask. Senator HALE. Two hundred pounds to the cask. Say 12 cents per cask of 200 pounds. The CHAIRMAN. Is that the usual importation? You know they might import it in different ways. Senator HALE. I do not know the method of importing. I think that the trade recognizes 200 pounds to the cask. If you put it in by casks it should be by cask of 200 pounds. The CHAIRMAN. We had better say 6 cents per hundred pounds. Senator HISCOCK. Lime is sold everywhere by the barrel, and the barrel is known in commerce as holding so much, a fixed quantity. Senator HALE. A barrel of flour is 196 pounds. Senator HISCOCK. But it holds a specific quantity. The CHAIRMAN. They put flour in bags. Senator ALDRICH. I think 6 cents per 100 pounds is very much preferable. FRUIT BOXES. Senator HALE. The manufacture of boxes, to be used largely in the transportation of fresh fruits, has been carried on for several years quite extensively in Maine and in some other parts of the country. The industry was built up mainly under the provision of the tariff bill known as the "Little Tariff bill” of 1875. Under that provision fresh fruits, imported into the United States in boxes manufactured in the United States, were allowed a reduction of the duties upon such fruits of 5 cents per box and 3 cents for each half-box. Under this provision large manufactories of these boxes grew up in Maine, the exportation amounting to several millions of dollars, and our people getting the benefit of the enterprise. By the act of 1883, although the Tariff Commission reported unanimously in favor of the retention of this clause, and the bill reported from the Ways and Means Committee of the House in the Forty seventh Congress included it, it fell out before the bill was finally adopted in conference. No point or argument was anywhere made against it. The effect of this omission has been to prostrate the industry, which is now practically dead. In some cases the year's production has to be carried over unsold, and all of the parties engaged in the manufacture of these boxes are pressing earnestly for the restoration of the clause in the act of 1875, under which they were able to continue business. I desire that the committee may insert, in the proper place, the following provision, or what is its equivalent: "Provided, That when fresh fruits are imported into the United States in boxes of material manufactured in the United States, verified under Treasury regulations, there shall be a reduction of the duties provided by this act of 5 cents for each box and 3 cents for each halfbox containing said fruits." FISH, LIME, AND MOLASSES. SATURDAY, July 14, 1888. STATEMENT OF HON. W. P. FRYE, United States Senator from Maine. LIME. Senator FRYE. Lime ought to be 6 cents a hundred pounds. The ordinary cask contains 200 pounds. Present duty, ad valorem, cask deducted at 20 cents-leaving value of lime as estimated for duty 30 cents, or 3 cents a cask-hardly any protection at all. FISH. The Canadian duties should be adopted: Fish, fresh, salt, pickled, smoked, 1 cent a pound. Duty now cent, salt, pickled, etc. Under item "Fish, fresh, etc.," frozen fish are admitted free. Under modern methods fish can be preserved about as long as when salted; therefore, our market is surrendered to Canada. The importance of the fresh-fish market is increasing enormously. If you can not agree to 1 cent a pound on all fish then make it a cent on all. If you prefer to exclude frozen fish from free admission to our market, without providing a duty as I advise above, then use this language: "Fish, fresh, for immediate consumption," provided that this shall not be construed to include fish preserved by freezing, smoking, canning, drying-only the use of ice or other preservative process. MOLASSES. I call your attention to circular and letter of George S. Hunt, touching duty on molasses. Please consider this partly as to its effect on our sea-carrying trade. It is an important item for our vessels now. Hon. WM. P. FRYE, Washington: PORTLAND, ME., July 12, 1888. SIR: We inclose a printed statement of the relations of boiling molasses to sugar under the new tariff bill, which we beg you will spare time to read with care. It may have come to your notice through other sources, but as a boiling house in your own State will be seriously affected by the decision of Congress on this point, we take the liberty of again calling your attention to it and asking your influence and vote in favor of a duty of 2 cents per gallon on molasses to enable boiling houses in this country to compete on even terms at least with foreign raw sugars of low grade. We do not trouble you with statistics nor details of the business, as the circular states the case quite fully. The Eagle Molasses House here (of which we are agents) labors under much disadvantage in its remoteness from its markets and sources of supply and needs for its continuance-if not positive advantages over foreign raw sugars of similar gradesat least that it shall not suffer under the new adjustment of sugar duties. We remain, yours, respectfully, GEORGE S. HUNT & Co. Molasses in the sugar schedule.—Its place in the tariff and its relation to sugar. 1. Molasses is a residuum, a resultant product in the manufacture of sugar from sugar cane. It is essentially a raw material; fully 90 per cent. of all the foreign molasses imported being used by molasses-boiling refineries, which extract the sugar contained in it; as 2. Owing to the crude, imperfect processes employed in making sugar in the producing countries it contains in solution considerable quantities of sugar. 3. The United States Government has always given encouragement in the past to the importation of molasses from abroad for manufacture into sugar here; because 4. It created an industry employing many men and considerable capital in molassesboiling refineries, and was of great value to several other industries, notably the cooperage trade and the coastwise marine. 5. A gallon of ordinary quality foreign molasses yields on an average 5 pounds of sugar, polarizing 82 per cent. or degrees of saccharine matter. 6. The actual cost of converting 1 gallon of molasses into sugar has been found by averaging the results of most of the establishments in the business to be 3 cents per gallon; this includes no charge for interest on plant or capital employed. 7. The freight on the excess in bulk and weight of the gallon of molasses over the equivalent amount of sugar in dry form amounts to about 2 cents on the gallon. 8. The past policy of the Government and the policy necessary to the continued existence of the molasses-boiling industry in this country was 9. To levy a duty on 1 gallon of molasses equal to the duty collected on 5 pounds of sugar similar in quality to that extracted from the molasses, less the cost of converting the gallon of molasses into sugar, and also less the freight; because 10. The amount of duty thus remitted went directly to American workmen and American vessels, and 11. Without this remission of duty or differential rate the business could not be conducted at all in this country, but would be transferred at once to the foreign producing countries. 12. Molasses boiling can not be done in the United States without a differential rate of duty favoring it, as the sugar produced from molasses does not go into direct consumption, but is sold almost exclusively to white sugar refiners in direct competition with foreign raw sugar; hence the duty on the molasses is not a tax on the consumer directly, as the sugar produced from it sells at a value fixed by the dutypaid price of a similar grade of foreign raw sugar. 13. The molasses-boiling industry can not survive if the differential rate of duty between the 5 pounds of sugar contained in 1 gallon of molasses and 5 pounds of sugar of 820 polarization, imported as sugar, is reduced below existing rate of 4.40 cents per gallon. 14. The existing rate of 4.40 cents is too low, and is driving the business from this country to foreign countries. 15. The lowest possible rate that will keep the business in this country is the old rate under previous tariffs of 4.68 cents difference between 1 gallon of molasses and 5 pounds of sugar of 82° polarization. 16. To check the tendency now developed of doing the business abroad the differential rate should be 5 cents, but a rate of 4.87 might do, and under the proposed tariff would make molasses pay a duty of 2 cents per gallon, when under 56° polarization. 17. To drive the business from this country, abroad, would wantonly destroy the business here with no accruing advantages. 18. It would be a heavy blow to the American coastwise marine, which now has a monopoly of this trade. The business can not be diverted from these craft, as the character of the article requires it to be carried in small vessels of 350 to 400 tons capacity. Over 400 cargoes, paying about $800,000 of freight, are furnished these vessels annually inwards, and they get outward cargoes of cooperage incidental to the business. 19. Out of a total revenue collected on molasses of a little over $1,500,000 fully $1,400,000 is collected on molasses used by the boiling trade (35,000,000 gallons). 20. If this molasses was worked abroad and the sugar sent here the revenue would be increased fully $1,000,000; as the 35,000,000 gallons of molasses would produce 175,000,000 pounds of 820 sugar, which would pay under proposed tariff 1.374 cents per pound, equal to $2,404,500. Sugar would come forward in large vessels, mainly English and Spanish tramp steam-ships. 21. The molasses and resulting sugar handled by the boilers does not interfere with thenative productions, as the Louisiana crop commences in October and is nearly, if not entirely, marketed by March 1. The molasses handled by the boilers scarcely commences to arrive from Cuba before March 1, and is all consumed by September 1. 22. The character of the molasses and sugar handled by the boilers is so different from that produced in Louisiana that there is really no competition between them. 23. The molasses industry would be immediately and certainly destroyed by the proposed tariff, and for some years, while the business was being established abroad, it is probable that considerable quantities of molasses would come to this country seeking a market in its crude state. The molasses-boiling houses being out of existence, and therefore not in position to work this up into different form, would cause this raw, crude molasses to hang a drug on the market to the very serious detriment and loss of native molasses in Louisiana. IRON AND STEEL. TUESDAY, August 21, 1888. STATEMENT OF H. H. PORTER, OF CHICAGO. The CHAIRMAN. Mr. Porter, we will be glad to have you give us some information of a practical character with reference to our western country. Mr. PORTER. In Chicago, where I am particularly interested, I think there is one factor that is not brought into competition with Europe, and that is our enormous transportation facilities. I am interested in steel mills in Chicago, and I am interested in iron mining in Minnesota, a country where iron was not known to exist six years ago; a country now where the land itself can not be gotten from the Government; where we can not buy land except in a certain way, either by a little fraud or by buying some old land scrip and getting possession of the land itself. The CHAIRMAN. That is, some of the land scrip that doubles on any land you choose to put it on, called the Valentine scrip, I believe. Mr. PORTER. Yes; whatever it is called. We transport our ores to Chicago, about 900 miles; then we have to go to Pennsylvania, which is about 500 miles in another direction, to get our coke to carry to Chicago to melt it with to make the iron; and the transportation of these two to this meeting point does not cost us less than $7 for each ton of pig-iron made The CHAIRMAN. That is, the transportation of your iron ore to Chicago, and coke to Chicago, amounts upon a ton of product to about $7. Mr. PORTER. About $7 now; sometimes more and sometimes less. Senator JONES. Coke and ore. Mr. PORTER. Yes. The coke has to come from Pennsylvania over 500 miles east of Chicago, and the United States have the cheapest transportation in the world. A great deal of the manufacture of steel rails in Europe is carried on within 20 miles of its supply of coal, ore, and coke. We are their equals in machinery, but we pay more than twice the wages that they have to pay. We have the capacity to make steel rails to an extent of 40 per cent. more than ordinary consumption. The CHAIRMAN. That is, you must have a plant of 40 per cent.? Mr. PORTER. We must have a plant of 40 per cent. more than is necessary to take care of the business when railroad construction is dull, in order to fairly supply the demand when it is active. In 1883, in con |