Honolulu Republican, Volume IV, Number 504, 23 January 1902 — CUBA EXPECTS BANKRUPTCY IF TARIFF IS UNCHANGED [ARTICLE]

CUBA EXPECTS BANKRUPTCY IF TARIFF IS UNCHANGED

Pessimistic Views of Eastern Business Men New York Merchants Present Their Cause Before the Committee On Ways and Means, and Plead for a Marked Reduction of Existing Duties.

WASHINGTON, Jan. 16.—Cuban reciprocity was again under consideration today by the Ways and Means Committee with large representation of Cubans and of the various sugar and tobacco interests in attendance. A delegation from the New York Produce Exchange favorable to reciprocity and several delegations from the beet growing sections opposed to reciprocity arrived this morning. Ewan Thomas, ex-president of the New York Produce Exchange, presented the views of that organization. He said that last year $9,000,000 of American food products went to Cuba, about 75 per cent of the business being done by members of the Produce Exchange. Continuing, he said: "Should the United States refuse to grant a reduction of duties on the im- ports of the two great staples of Cuba (sugar and tobacco) we believe the result will be ruin to the planters, bankruptcy to the merchant and great distress to the laboring classes of Cuba, followed by serious industrial ditsurbance and disorder. "Financial and economic disaster to Cuba will correspondingly injure our trade and materially reduce our exports of flour, corn, lard, bacon, pork, beans, peas, canned goods, and other commodities. The material reduction of our exports and imports to and from Cuba followed by a corresponding decrease in the carrying trade, will result in a loss of freight to shipowners. “This committee urges such reduction in the duties now levied on sugar and tobacco as will avert this impending disaster and thereby safe-

guard the interests we represent." Representative McClellan of New York called attention to circulars received by himself and other members of the committee, attacking the current sugar quotations, and stating they were influenced by the sugar trust. The business men present gave their opinion that quotations were accurate and impartial. Mr. McClellan remarked in this connection that there was an evident purpose in some quarters of prejudicing the cause of Cuban reciprocity by creating a public impression that the trust was behind it, whereas all the witnesses thus far had shown the Cuban cause stood on Its own merits. Charles Rabidan and C. P. Armstrong of the Produce Exchange also spoke in favor of reciprocity and were examined at length by Chairman Payne and members of the committee on the details of the export trade to the island and the effect of reciprocity on various sugar interests. Representative Robertson of Louisiana asked a series of questions tending to show that the Cuban people had not spoken of reciprocity, and that the movement was directed by “the sugar people,” interested in the trade. Mr. Armstrong answered that the interests of all the Cuban people were bound up with sugar production and must stand or fall with it. Mr. Robertson also sought to show that American capitalists were buy ing large tracts in Cuba and would he benefited by reciprocity more than Cuban people. Louis Place, head of the Cuban del-

egation, was heard as to the tariff reductions Cuba was likely to make in order to give the United States control of the market. He said the Cuban tariff was very low and should be raised 50 to 70 per cent, and after that a differential granted to the United States sufficient to control the trade as against other countries. He favored ultimate free trade, both ways, which, he said, was the only solution of Cuba's commercial problem. Free Trade at Havana When Representative Long brought out that Mr. Place had sought free trade at Havana the Cuban spokes man explained amid laughter that he yielded to the majority, and that by asking much it was hoped to get as near that as possible. He gave 50 to 60 per cent as the lowest concession which would grant relief. As the hearings closed Representative Richardson of Tennessee, the ranking Democrat on the committee, said: “I notice that a very prominent United States Senator is quoted in today's paper as saying the Senate will settle this whole question, will make a treaty and that we will have nothing to do with it." "He will find out differently before he gets through," swered Mr. Dalzell of Pennsylvania. Chairman Payne stated that the tobacco men would be heard on the 21st, the beet sugar interests on the 22d and that General Wood was expected up from Cuba. The committee then adjourned, subject to the call of the chairman.