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The Commoner.
,VOLUME 11,. NUMBER 30
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What the Reciprocity Treaty Will Do
In prosontlng the prospcctlvo benefits of tho
'reciprocal trado agreement between tho United
Statos and Canada it is necosary to consider that
under tho present tariff law many of tho duties
have boon wholly prohibitive. Tho present
amount of importation or tho present income
to tho United States through tho medium of tho
custom houso is, oxcopt in a few instances, no
index to tho future trade in any particular articlo
or commodity.
Tho restrictions of tho past removed, certain
"articles, today only nominally upon the list of
imports from tho United States into Canada and
from Canada Into the United States, must in
tho immediate future, becomo important articles
of trado in one direction or the other and in
some Instances in both directions.
Tho following aro among the important
changes in the present trade conditions between
tho United States and Canada which the agree
ment ratified by tho bill passed recently will
put into effect at once when Canada also ratifies.
Tho question then is, What will reciprocity
accomplish?
IT WILL:
1. Admit to the United Statos free of duty
articles to tho value of $39,811,560 upon which
under tho Payne-Aldrich tariff law there is now
a duty. In roturn Canada, by a similar remission
of her duties, will admit free products of tho
United Statos to tho value of $21,967,605, ac
cording to the statistics for tho last year obtain
able for purposes of calculation.
2. Place upon the free list wheat, rye, oats,
barley, buckwheat, dried peas and beans and
corn, upon which the United States at present
imposes a varying schedule of duties ranging
from 10 conts per bushel for rye to 45 cents per
bushel for dried beans, all this benefit to tho
consumer being accomplished at a revenue cost
to tho United States of less than $300,000.
3. Place upon the free list cattle, horses,
mules, sheop and Bwino, at present dutiable at
varying rates averaging, approximately, 25 per
cent, but at a revenue coBt to the United States
of less than $275,000.
4. Place upon tho free list vegetables of all
sorts, including potatoes, cabbages, onions, tur
nips, sweet potatoes and yarns, now taxed at from
25 cents to 40 cents per bushel, and all other
fresh vegetables not enumerated at 25 per cent
ad valorem, and at a cost in revenue to the
United States of $380,000.
5. Relieve from the tariff of cent per
pound the annual importation of 31,841,152
pounds of fresh-water fish, and from the tariff
of from to 1 cent per pound of 13,341,921
pounds of mackerel, eels, smelts, halibut and
. herring; 17,085,091 pounds of cod, haddock,
hake and otljer dried, smoked and salt fish, and
10,000,000 pounds of salted and smoked
mackerel and herring, at a revenue cost to the
United States of $380,000.
6. Remove the existing tariff on pulp wood
and print paper, thereby admitting to the United
States free 160,217,659 pounds of pulp wood
now dutiable, and 86,766,027 pounds of print
papier, according to the importations of 1910, at
a revenue cost to the government of $300,000,
and 75,446,100 pounds of chemically prepared
unbleached and 19,345,312 pounds of bleached
pulp wood at a revenue cost of $175,000.
7. Place lumber upon the free list, thereby
relieving the American consumer of the tariff
of $1.25 per 1,000 feet upon the 975,975,000
feet of sawed lumber imported last year at a
revenue sacrifice of $1,219,970.
8. Reduce tho present tariff on fresh meats
from 1 cents per pound to 1 cents per
pound, for tho return concession on the part of
Canada of a reduction from 3 cents a pound to
1 cents. Reduce the tariff on bacon and hams
from 4 conts per pound to 1 cents per pound,
on all other dried and smoked meats from 25
per cent ad valorem to 1 cents per pound, in
return for a reduction on the part of Canada
from 2 cents per pound to the same figure. These
changes in the meat tariff to be effected at a
revenue loss to the United States of less than
$8,000.
9. Reduce tho duty on canned vegetables
from 40 per cent ad valorem at 1 cents per
pound, at a revenue loss of $86,000.
10. Reduce tho tariff on flour from 25 per
cent ad valorem to 50 cents per barrel of 196
pounds, at a revenue loss of $18,000.
12. Reduce the tariff on laths from 20 cents
per 1,000 to 10 cents per 1,000, and upon
shingles from 50 tfonts per 1,000 to 30 cents
per 1,000, at a revenue loss for tho two items
of $200,000. nwt
13. Articles to thfe value of $47,333,158 aTo
affected by tho now reciprocal agreement. Upon
theso articles tho total tariff levied at present
is $5,649,826 per annum. Of this revenue tho
United States will remit duties to the amount of
$4,849,933. Now York World.
SUGAR TRUST METHODS
Tho following is air Associated Press report:
New York, July 22. Claus Augustus Spreckles,
son of the late Claus Spreckles of California,
and principal owner of the Federal Sugar Refin
ing company of Yonkers, N. Y., gave the most
sensational testimony that has developed before
tho congressional committee investigating the
sugar trust during the hearings hfere.
Besides giving a most important sidelight on
the conference between John Arbuckle and the
late Henry O. Havemeyer, which Is believed to
have ended the great sugar war, he described
under oath the vicissitudes of an independent
sugar refiner. He said his plant in Philadelphia
before it was controlled by the trust had been
put out of commission several times by persons
who threw sand in the machinery bearings and
otherwise wrecked the plant.
He swore that in the Yonkers refinery, after
he had turned down trust overtures, dead rats
wore placed in barrels of sugar ready for ship
ment and that whole vats of liquid sugar had
been drained off in the night into the sewers.
The nuisance of dead rats continued until private
detectives pointed out a number of his employes,
whom he discharged, refusing to pay their wages
In the hope that they would sue him and thus
enable him to question the men under oath as
to who so employed them. Much to his dis
appointment he was nover sued.
Mr. Spreckles declared that Henry O. Have
meyer, Theodore Havemeyer and John B.
Searles, all then officers of the American Sugar
Refining company and now dead, purchased a
half interest in all the California refineries to
end the Spreckles war for $2,225,000 in cash
and six months later sold this Interest to the
American Sugar Refining company for $5,000,
000 In preferred stock, which at that time was
worth $120 a share, or $6,000,000.
Interesting points in Mr. Spreckles testimony
included his assertion that in four years he had
made $2,000,000 in a Hawaiian sugar planta
tion on a cash investment of $10,000. Since
starting the Federal refinery ten years ago by a
cash payment of $3,500,000 for equipment, he
has paid 6 per cent dividends on that $3,500,000
regularly, ho declared, representing the pre
ferred stock, and has turned earnings, amount
ing to an equal amount, back into the improve
ment of the plant.
Representative Garrett of Tennessee asked Mr.
Spreckles if he knew anything about the con
ference between John Arbuckle and Henry O.
Havemeyer, which was supposed to have ended
the sugar war.
"Yes, something," he said. "Soon after that
conference John Arbuckle came to me and said:
'I've just had a little talk with Henry O. Have
meyer.' He said an understanding had been
reached; that there was an overproduction of
sugar and asked me if I would reduce the out
put of the Federal. I told him the Federal would
work to its full capacity forever.
"He said: 'You misunderstand Havemeyer,
just like I did. He is a fine, cultivated man r
why, he plays the violin."
" 'So did Nero play the violin,' said I, 'and
Rome burned.'
"He told me that we ought to reduce our out
put; that there waB too much sugar; that by
reduqing the output we could reduce expenses,
keep Up the price of sugar and thus make more
money. Ho said that was what the American
was going to do."
"Did yon understand from John Arbuckle that
he had reached an agreement with Havemeyer
and tho American Sugar Refining company that
the production of sugar was to be reduced?"
"Yes, he Baid that he and the American had
burled the hatchet."
"Did any one else ever try to get you to reduce
the production of sugar?"
"Yes, Mr. Warner of tho American company.
He said it would create better feeling among the
refiners generally and that an understanding
could be reached. I think that both Arbuckle
and Warner were sent by the American Sugar
Refining company to get me to enter an agree
ment."
Mr. Spreckles said tho war between tho
Spreckles and the American started about 1887
and that John B. Searles of the American finally
proposed peace in the interest of both sides. Tho
result was the formation by tho Havemeyers,
Searles and Mr. Spreckles' father of the Western
Sugar and Trust company, which was sold to
the American for $10,000,000.
In the afternoon the discussion of the tariH
on sugar occupied much of the time.
Mr. Spreckles said that in his opinion th rts
moval or big reduction of the tariff on sugar
would decrease the price of refined sugar in this
country 2 cents a hundred.
"It would also be the best thing for
Louisiana," he said.
"The planters down there are antiquated, uso
ancient methods and machinery and are not
scientific farmers. The reduction in the tariff
would wake them up and modernize them like
it did Hawaii."
Mr. Spreckles said that "refineries and
planters of both beet and cane sugar in this
country could compete with the world without
a tariff."
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UNDERWOOD AND STEEL
Special dispatch to the Philadelphia Inquirer:
Washington, D. C, July 25. Champ Clark,
speaker of the house, and Oscar W. Underwood,
floor leader of the democrats in that body, camo
to the parting of the ways in the democratic
caucus today, . and after a bitter light the forces
controlled by Underwood were victorious.
The battle in the caucus was the most serious
the democratic party has witnessed since it came
into control of the house. Speaker Clark had
introduced a resolution calling on the ways and
means committee, of which Underwood is chair
man, to report bills revising the steel and iron
schedule and measures revising all the other
schedules; he was completely bowled over by the
Underwood forces and the sum total of positive
action in the caucus was the unanimous vote in
favor of considering the cotton bill.
It was decided, as a result of the vote that
downed the Clark resolution, that the democrats
of the house would not pass any more bills re
vising the tariff after the cotton bill has been
acted upon. The vote upon this proposition was
closed; although it was taken viva voce, the
.Underwood victory was clea"r.
Claude Kitchin, of North Carolina, made a
bitter speech, in which he said that the chair
man of the ways and means committee, Mr.
Underwood, had proclaimed to the country the
fact that all his money was tied up in the steel
business, his district including the big mills at
Birmingham, Ala., and that unless the steel and
iron schedules were revised the nation would
gather the impression that the democratic party
had been sidetracked by its floor leader's con
nections. "The democrats would know that such
an impression would not be justified by the
fact," said Kitchin in an effort to take the sharp
edge off of his remarks, but the Impression
would go forth nevertheless.
"The only way we can offset such an impres
sion," said Kitchin, "is to revise the steel and
iron schedules at once."
The remarks of Mr. Kitchin did not change
tho position of Mr. Underwood. He made it
clear that he was acting in -the best interests of
the country, stating that there was no necessity
for further tariff action at the present time. He
was strongly supported by Representative Fitz
gerald, of New York, chairman of the appropria
tions committee, who intimated that the country
was becoming impatient of so much tariff re
vision, given in one dose.
Mr. Webb, of North Carolina, who represents
a district containing 110 cotton mills, also made
a plea for the manufacturers of that commodity.
The stand taken by Clark was bolder than
any he has yet taken. He has been stating right
along that congress would remain in session
until September and possibly until next Decem
ber, but none knew that he intended to force
the issue in the caucus.
LOOKS GOOD FOR STEPHENSON
"Senators Paynter and Bradley, of Kentucky,
with Bailey, Heyburn and Sutherland, will com
pose a subcommittee of the United States senate
to investigate the election of Senator Stephen
son, of Wisconsin." News Item.
That looks bully good for Stephenson!--
Henry Wattorson in Louisville Courier-Journal,
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