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Full text of "Report on the commercial and industrial condition of the island of Cuba"

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HARVARD UNIVERSITY 

GRADUATE SCHOOL 

OF BUSINESS 

ADMINISTRATION 

BAKER LIBRARY 




FROM THE LIBRARY OF 
SENATOR NELSON W. ALDRICH 




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JgEPORT 



ON THE 



COMMERCIAL AND INDUSTRIAL CONDITION 



OP THB 



ISLAND OF CUBA, 



BT 



ROBERT P. PORTER, 

SF»ECIAI- COMMISSIONER F^i^ iHE UNITED STATES 



TO CUBA AND PORTO RICO. 



RESPBCTFULLT SUBMITTED TO 

HON. LYMAN J. GAOE, 

SbCRBTARY of THB TREASURY, 

Washington, D. C, 
IsrOVKMBEJR 15, 1©08. 



WASHINGTON: 

GOVERNMENT PRINTING OFPICB. 
1898. 



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Celt Has/ &l,l<i^n 

U593 



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Theasury Department, 

Docnnient No. 2072. 
Division 0/ Customs, 



PUMAUr 

SENATOR NELSON W. ALDRICH 



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y 



REPORT 



ON THB 



COMMERCIAL AND INDUSTRIAL CONDITION OF THE ISLAND 

OF CUBA. 



Tbeasubt Department, 

Office Speoial OoMmissionbb op the United States 

TO Cuba and Pobto Rioo, 
November 15, 1898. 

Sib: In accordance with instructions from the President and your- 
self I have the honor to make the following report and recommenda- 
»ons in relation to the revenue and customs of the island of Cuba: 

In consequence of the unexpected interest taken by the commercial 
and industrial interests of Cuba in the work intrusted to your com- 
missioner and the large number of witnesses examined and statements 
made, both in the United States and in Cuban cities, my time has been 
fully occupied since August with pressing Cuban matters, and the 
intended visit to Porto Bico has been for the present postponed. In 
the prosecution of this inquiry Cuba was visited and public hearings 
held for two weeks in the city of Havana. All persons interested in 
the industry, trade, foreign commerce, currency and banking system of 
Cuba were invited, through the newspapers, to express their views on 
Uiese and kindred subjects. The testimony, published as the appendix 
of this report, shows that many responded and that the information 
gathered took a wide range and will be of practical value in adjusting 
the questions which the Government of the United States will have to 
deal with during the military occupation of the island. Public hear- 
ings were also given at Cienfuegos, and committees of persons repre- 
senting interests at Trinidad, Caibairen, Sagua la Grande, and other 
parts of the island were given an opportunity to express their views as 
to the industrial necessities of their respectfve communities. 

In New York and Washington opportunity has been given those 
interested in Cuban commerce, and such American citizens as repre- 
sent large sugar estates, iron mines, and tobacco and fruit interests in 
the island of Cuba, to give a full and free expression of their views on 
all topics included in the scope of this report. A large amount of 
information has been given and no inconsiderable assistance rendered 
by these gentlemen. With hardly an exception, such assistance has 
been rendered freely and disinterestedly, and your commissioner takes 
this opportunity to thank a large number of business men who have 
been found ready and willing to drop their business at any moment and 
devote much valuable time in an endeavor to elucidate the somewhat 
oomplicated conditions which surround the foreign commerce of Cuba. 

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4 COMMEECIAL AND INDUSTRIAL CONDITION OF CUBA. 

In Cuba every possible consideration was shown your commissioner 
and no pains or troable spared on the part of the Spanish officials and 
business men to give all required information and to aid in the inquiry 
undertaken. In this work neither political prejudice nor nationality 
took any part. The Spanish banker and merchant, whose influence a 
lew weeks previous was arrayed against the United States, came for- 
ward and placed such information as he had at the disposal of the 
United States Government. The Cuban engaged in business and the 
military commander in the field, fix)m Generals Gomez and Bodriguez 
down, have alike assured your commissioner of their sympathy in the 
work thus instituted by the United States aud proffered their services 
in its prosecution. The following expression from the veteran warrior. 
General Gomez, dated BoffiU Plantation, October 3, 1898, will be reaa 
in this connection with interest: 

I must congratulate you cordiaU^ for the high mifisiou which you have had 
intrnsted to yoa. I am completely identified in all and with all concerning it ; I 
reserve for a better opportunity giving you my personal views on this matter. * » • 
On my side I am working in the same sense ; I am doin^ aU I can for the immediate 
reconstruction of the country ; its wounds wiU heal with the rapid promotion of 
work. This is the battle we are now fighting, and aU men of good will should Join 
us in our struggle. I avail myself of this opportunity to tender my services. 

The business men and merchants of Havana and other large cities, 
regardless of nationality, have rendered services of incalculable value 
to this investigation, on the ground that the one thing, as General 
Gomez truly says, that Cuba wants more than all else is that its popu- 
lation should lay down its arms and take up the implements of peace. 

The presidents of the chambers of commerce of Havana and Oien- 
fuegos have both taken an interest in this work, and elaborate reports 
have been prepared by committees appointed specially to aid your 
commissioner. A similar report has been prepared for Matanzas. 
Whatever may be the shortcomings of the report herewith submitted, 
it can not be attributed either to lack of interest on the part of the 
people of Cuba nor to any failure on their part to give information, 
especially on all matters relating to foreign commerce. There is, of 
course, a dearth of statistical information, in consequence of which it 
has been difficult to work out some fiscal statements and estimates with 
the degree of exactitude easily attainable at home. The information, 
however, which has been obtained would seem to leave no room for 
doubt as to the wisest course for the United States Government to pur- 
sue in the adjustment of Cuban duties during the period of the occu- 
pancy of the island by the military forces of the United States, and 
the recommendations for changes in rates and administration are made 
with no misgivings that additional information, if obtainable, would be 
likely to alter the conclusions. 

TABIFF BBVISION. 

It soon became apparent that the most urgent need of the island 
was a fairiff that would bear lightest in directions where the people 
could least afford the burden of taxation and heaviest on commodities 
which the well-to do and those engaged in large enterprises required. 
The Spanish tariff was made by Spaniards, for Spain, in the interests 
of the Spanish. That seems to be the only principle in it. On any 
other theory it was inexplicable. In adopting for an exigency measure 
the rate of duty which Spain levied for her own commodities, the 
United States acted wisely. Those rates were, however, full of inequali- 
ties and were not levied on any sound principle, but on the ^^ heads 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 5 

Spam wins and tails Cuba loses" idea, which prevails in the whole fiscal 
fabric. It was found that the only way to remedy these inequalities, 
equalize the rates of duty, improve the administration, and to reduce 
the rates of duties on all articles of general consumption was to prac- 
tically frame a new tariff. With the assistance of Assistant Secretary 
of the Treasury Howell, your commissioner, on returning from Cuba, 
undertook the work, and as a result the proposed measure has been 
completed, and with the report and explanation is herewith submitted. 

It has not been thought advisable to make radical changes in the 
administrative branches, nor to change weight and measures into 
United States equivalents, because the people of Cuba are accustomed 
to the metric system. As a rule, all duties are levied by the kilo and 
100 kilos. United States currency, however, has been substituted for 
the Spanish pesos. This will simplify collection of duties, as customs 
duties at the present time are collected in Cuban ports in possession of 
Spain in three different classes of currency, gold, silver, and bank 
notes, all (for the gold coins used in Cuba both have fictitious values)* 
fluctuating in value. The tariff herein proposed, and the adoption of 
which by the United States when the military forces take over the cus- 
tom-houses is herewith recommended, reduces all duties about 60 per 
cent on the old Spanish rate and will average fully two-thirds less than 
the rates now exacted by the authorities in Cuban ports in possession 
of Spain. The reasons for these reductions, together with the reasons 
which led up to the decision of the President to admit cattle and agri- 
cultural implements free into Cuban ports in possession of the United 
States, are fully given in this report. An analysis and discussion of 
the Cuban budget will also be found, in which the effect of the new 
tariff on the revenue of the country, together with the other sources of 
revenue, are explained and discussed. 

It will naturally be urged, with such a large reduction of duties, how 
is it possible to secure revenue for the purpose of administering the 
government of the island t There are several answers to this question, 
and the facts bearing on the subject are given in full in the proper place 
in the report. The general answer is that by reason of fraudulent classi- 
fication and smuggling much of the revenue collected from the people 
of Cuba never found, its way into the treasury ^f that island, nor of 
Spain. The cupidity and rapacity of the Spanish officials in Cuba is 
beyond conception, and, if we may judge by the results at Santiago, the 
United States officials will be able to collect as much revenue, on a tariff 
the duties of which are more than a half or nearly two thirds less, than 
under the iniquitous and exasperating law now in force. The reduction 
to a reasonable rate of duty in certain schedules, such as those relating 
to machinery, railway supplies, etc., it is believed, will increase itaporta- 
tion, and the revenue will certainly be greater than during the period 
of prohibitory duties. A railway company naturally hesitated to import 
a locomotive when the duty^was equivalent to the value of the engine. 
With a revised tariff of 20 per cent ad valorem, it may import two, or 
four, or even six. 

In adjusting such schedules the revenue features alone need be con- 
sidered, because Cuba has no locomotive works or iron and steel indus- 
try. The same is true of a variety of other articles. In all cases where 
there are home industries in Cuba capable of supplying a manufactured 
product made by home labor, care has been exercised, either by making 
free the raw material or not making a too radical reduction of duty, 

* See footnote; page 7. 

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6 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

not to injure their prospects. In so doing it is only carrying out the 
policy which has been so fruitftil in developing the industries of the 
United States, and in securing diversified employment for its labor. 

THB CURRENCY QUESTION. 

Although Cuba is afflicted with many kinds of depreciated currency, 
the established basis is strictly gold, and in any commercial engage- 
ment the value is understood to be in Spanish gold unless specified to 
the contrary. Indeed, there is something almost pathetic in the man- 
ner in which Cuba, though plundered and depleted of her resources 
and wealth, has never wavered from the gold standard. The testimony 
taken and statements made on this subject have been unanimously in 
favor of a continued gold basis, for the Cubans have suffered so much 
from Spain's various attempts to force depreciated currency upon the 
people, both in the form of silver and bank bills, that they want no 
further experiments with the currency. The Spanish silver money 
current in the island is only taken at the daily value, which is fixed, 
partly by the larger or smaller demand for wages and necessities of 
the government to pay troops, but principally by the continually fluc- 
tuating value of the Spanish money in the European markets. As 
this Spanish silver is legal tender in Spain for its face value, it is able 
to maintain a Hctitious value for purposes of shipment to that country. 
At the present moment, therefore, this dollar fluctuates in value with 
the fitful changes in Spain's credit, and it is probable should the 
United States establish American currency as sole legal tender for the 
Island of Cuba, that the Spanish silver dollars will all be shipped to 
Spain. 

There was, when your commissioner was in Cuba, in September, a 
margin of 30 per cent on the silver dollars, and the financial and busi- 
ness men of Havana do not think these dollars would go down to a 
point where it would not pay to ship the Spanish silver to Spain and 
utilize the American dollar in Cuba. In this event it will be necessary 
for the United States Government to ship as many silver dollars to 
Cuba as possible, one prominent banking firm suggesting five or six 
millions, which, with the subsidiary coins, would be required for small 
payments. At Santiago the immediate disappearance of Spanish 
dollars and minor coins has made small transactions extremely difficult. 

Some think that the present stock of Spanish silver in the island 
exceeds the necessities, but, however this may be in the western part 
of the island, it was evidently not the case in Santiago. 

Besides the silver there is a bank-note circulation, but that has no 
actual bearing on the question of currency, as the trade and business of 
the island has refused to accept it, and the present quoted value is less 
than 10 cents on the dollar. The greater part of this emission, which 
was a war issue made by the Spanish Government at Madrid through 
the Banco Espailol de la Isia de Cuba (not by that bank), and which 
your commissioner finds, is largely in the hands of speculators and Gov- 
ernment contractors. The only public application is for the payment 
in the custom-house of the so-called 10 per cent ad valorem duty assessed 
on the official value of imported merchandise, in addition to the regular 
specific rates of duty exacted. The abolition of this duty when the 
remaining Cuban ports come into possession of the United States will 
be the end of the bank bills. There still remains a question as to 
whether the Spanish Bank of Cuba was in any way responsible for these 
bills, and the question will come up for future a^ustment. The bank 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 7 

will probably deny responsibility, and refer those who hold this depre 
ciated cnrrency to the Spanish Government at Madrid. As an inter- 
esting fact in this connection, the credit of the Spanish Bank of Onba is 
of a higher order than the credit of the Spanish Government, for the 
bank has never, so far as yonr commissioner has been able to learn, 
foiled to redeem its own paper daring nearly half a century of its exist- 
ence, first, as the Bank of Spain of Havana, and subsequently under its 
present name. It has at times suffered embarrassment, but ultimately 
the bills of the Spanish Bank of the Island of Gnba have always been 
redeemed. 
The gold coins cnrrent in Gnba ar^ the Spanish and French coins,* 

*The following shows the precise yalne of both the Spanish Alfonsino and the 
French Napoleon, side by side with the inflated value. It also shows the cost of 
Spanish silver in Havana in September, 1898. These facts are necessary to a com- 
plete view of the subject of Cuban cnrrency : 

Statement ihomng value of United States gold in oompariaon ioith Spanish and French 
gold at actual legal-tender value, 

Spanish Alfonsinos $5.80 

Irench Napoleons 4.24 

Spanish Alfonsinos, value in Havana 5.30 

valae in United States mint, $4.80, less shipping expenses 4. 776 

.524 
(Exchuige, lOH per cent.) 

French Napoleons, value in Havana $4.24 

Yalae in Imited States mint, $3.84, less shipping expenses 3. 8208 

.4192 
(Exchange, lOli per cent.) 
Valae of $5, less one-half per cent shipping expenses, $4,975, at 10|^ per cent. $5. 53 

Statement ehowing value of United States gold in comparison toith Spanish and French 
gold on the basis of par value, 

Spanish Alfonsiuos $5.00 

french Napoleons 4.00 

Spanish Alfonsinos, value in Havana 5.00 

Valae in United States mint, $4.80, less shipping expenses, $0.024 4. 776 

.224 
(Exchange, 4|i per cent. ) ' 

French Napoleons, value in Havana $4.00 

Value in Umted States mint, $3.84, less shipping expenses, $0.0192 3. 8208 

.1792 

(Exchange, 4|J per cent.) 
Value of $5, less one-half per cent shipping expenses, $4.975, at 4|i per cent.. $5. 21 
Quotations : £ sterling Spain, 39.40 cnrrency in Havana, 10 per cent £ in United 

States 4.84 

Statement showing actual value of fl Spanish silver. 

100,000 dollars Spanish silver can be bought to-day here with $66,000 Span- 
ish gold, equal to United States currency $60, 000. 00 

100,000 silver dollars shipped to Spain, after deducting 1 per cent shipping 
expensee, would produce $99,000.00 

99,0(K) Spanish silver on Spain will buy at rate of £, which is $7.88 £12, 563 

£12,563 would produce in the United States, at $4.84 $60, 8(H.92 

Cost $60,000.00 

Proceeds 60,804.92 

804.92 
from which deduct commission, revenue stamp, interest, and profit. 



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8 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

the bulk of which consists of Spanish 25-peseta pieces, so-called Alton- 
sinos, which for many years have been inflated by royal decree to 
$5.30, and the French 20-firanc piece, so-called Kapoleons, which have 
also been given a legal value of $4.24 and decreed since the end of 
1893 as legal money. When the necessity for adopting and inflating 
another gold coin besides the Spanish Alfonsinos was under discussion, 
the suggestion was made that the United States golden eagle would 
• make an excellent coin for this purpose, as it would figure out almost 
exactly eleven dollars Spanish gold.* The idea was not entertained 
because of the general mistrust of Americans and the fear lest the 
relations between the United States and Cuba should become too inti- 
mately interwoven. While the principal banking concerns are unani- 
mous as to the gold standard, there is a difierence of opinion in relation 
to the advisability of squeezing the inflation out of these gold coins. 

Some of the Cuban bankers and financiers contend that the United 
States Government should add another gold coin to the currency, 
namely, the American eagle, and by maintaining the fictitious value 
given the other two gold coins, leave it equivalent to 111 in Cuba. 
This, it is claimed, will be a very easy way of leaving matters in statu 
quo, as it were, until such time as permanent government and laws 
shall be provided for the island. They fear that making the United 
States dollar a legal tender for settlement of existing debts — contracts 
at 100 cents which were made payable in Spanish dollars — a legal rate 
of 106J cents would work an injury to the debtor class. ' There are others 
whose opinions are equally worthy of consideration who recommend as 
the only logical remedy to this situation the substitution of the American 
currency as sole legal tender. Such action on the part of the United 
States Government would not seriously interfere with present con- 
tracts, which are invariably expressed as payable in Spanish gold, and 
which might be arranged for accordingly. The premium on Spanish 
gold, your commissioner was informed by no less an authority than the 
president of the Spanish Chamber of Commerce of Havana, was never 
agreed to by the business people. 

Having thus arbitrarily put* a premium on Spanish gold, the same 
authorities later put a premium on French gold, and to make the mat- 
ter more complicated, the United States Government is now requested 
by some of the Cuban financiers to introduce another gold coin, which 
will practically be worth 10 per cent more in Cuba than in the United 
States. As a temporary measure this may be justifiable. The process, 
however, is entirely artificial, and to continue it, in the opinion of your 
commissioner, would involve many complications. A perusal of the 
testimony will show that some bankers think it inadvisable to intro- 
duce American money at this time, while certain planters are fearful 
lest their labor should refuse to take 1 American silver dollar instead 
of 2 Spanish silver dollars. The latter looks more, it must be granted, 
but if the purchasing power of the American dollar, by reason of the 
sound credit of the United States, is double that of the depreciated 
dollar, with only Spain's guaranty between it and its intrinsic value 
of 60 cents, there will be no difticulty in the end. A country which is 

"Taking into account the weight of gold contained in the United States gold $10 
piece and in the Spanish Alfousino or ceuten (5.30 Cuban doliars), the valne of 
the American eagle is exactly 10.9875 Cuban dollars, or practicaUy 11 Cuban dollars. 
There is a shade of diflference, namely, $5.53, which would equal $11.06 for the Amer- 
ican eagle in the estimate given in the former footnote, but the exchange is included 
in the calculation. As the matter now stands in Cuba, a $10 American gold piece is 
worth 11 Spanish dollars in gold. 



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OOMMEBGUL AND INDUSTRIAL CONDITION OF CUBA. 9 

just now going through an operation involving its very existence will 
hardly be seriously affected by taking this fictitious value out of the 
gold coin and establishing once and for all a sound currency that will 
be good for 100 cents on the dollar, no more, no less, the world over. 

AMERICAN PAPER CURRENCY. 

A suggestion has been made in relation to the administration of the 
currency regulations of the island to the effect that United States paper 
currency of any kind circulating in Cuba should not be returned by 
banks for circulation in the United States, but disinfected and sent to 
Washington for destruction and reissue. This precaution is regarded 
necessary on account of the danger irom infectious diseases, especially 
smallpox, which is so common a disease in Cuba that the people do not 
take the most ordinary precautions to prevent it spreading. 

BANKINa. 

Cuba has no banks in the national sense. There are some excellent 
private banks, and since its existence nearly half a century ago, the 
Spanish Bank of Cuba has cut an important figure in the finance of 
the island. Your commissioner has now in course of preparation a 
report on the history of banking, from the earliest period to the present 
time. For the moment, the banking facilities are adequate to the busi- 
ness, for it would be extremely hazardous to loan money in Cuba on 
any kind of collateral or property. Upon the revival of business, 
however, the agricultural interests will require facilities for obtaining 
money in advance of the crops, at reasonable rates of interest, and 
protection from the abominable usury which heretofore has blighted 
the strongest industries of the island and added materially to the 
burdens of the Cuban planters. 

TAX REFORM. 

There are so many forms of obnoxious taxes in Cuba that even a 
brief description of them would occupy considerable space and convert 
this report into a treatise on the evils of Spanish taxation. Foremost 
among the taxes which should be abolished is the '^consumption tax" 
on the killing of cattle, which is an exaction that greatly increases the 
price of food to the people. This tax, like many others, is simply 
farmed out to private firms or corporations, whose emissaiies in its 
collection become a constant menace to thrift and industry in their 
respective districts. Another tax which will fall down of its own 
weight when the United States forces take possession of the island is 
the "cedula," or head tax, which varies in amount from a few cents to 
$100, according to the rank and importance of the individual. 

Curiously enough, this tax, when not collected, becomes a greater 
source of injustice and annoyance than when collected. It is generally 
allowed to run until some occasion comes for the unhappy victim of 
Spanish rapacity to require a public document or permit to bury a 
child or relative, a license to marry, a transfer of real estate, or a nota- 
rial acknowledgment. Then it is that the petty rascals in charge of 
public business bear down heavily, and unless the fines and back 
"cedula" and a handsome ** gratification" to the oflBcial is forthcoming 
the body must await interment, the marriage must be postponed, or the 
transaction delayed. It is not probable that the United States Govern- 



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10 COMMERCIAL AND INDUSTEIAL CONDITION OP CUBA. 

ment will coutinne taxes that yield nothing in revenue and are simply 
the means by which anprincipled officials whose cupidity seems to 
know no boands are enabled to plunder and distress the weak and 
unfortunate. The "consumption tax,'' the "cedula,'' and the revenue 
from "lotteries'' must necessarily disappear with the advent of United 
States administration of alfairs. 

Until the tax laws of Cuba can be thoroughly revised the revenue 
from customs, from the various forms of internal revenue (and there 
are many), and the receipts from taxes upon municipal real estate will, 
if the strictest economy prevail, suffice for the immediate wants, with- 
out resorting to measures of taxation which are alike debasing and 
tyrannical. It is impossible to make specific recommendations in rela- 
tion to a subject so hopelessly complicated. When the affairs of the 
island pass into the hands of United States officials to administer, this 
part of the report can be greatly strengthened. The true inwardness 
of Spanish taxation, as developed in the Island of Cuba, can only be 
studied at close range, and even then but imperfectly mastered by 
those accustomed to radically different methods. 

BDUOATION AND CENSUS. 

The question of education is one that should receive early attention. 
There are free public schools in Cuba, but the teachers have the right 
to take pay scholars, and naturally those who do not pay get little or 
no attention. In the cities from which data are available it was found 
that only a small portion of the school population attend school. There 
were 888 schools for boys and girls in 1893, and the amount paid for 
their support was $775,646. It is impossible to even approximate the 
situation at the present moment. In a general way it may be described 
as simply deplorable. A census of the island was taken December, 
1897, and the schedules as returned are on file in Havana. Your com- 
missioner had an interview with the official who had charge of tiiis 
work and learned that for the provinces of Havana, Pinar del Rio, 
Matanzas, and Santa Olara the enumeration was fairly correct. For 
Puerto Principe and Santiago de Cuba, in consequence of the war, the 
returns are worthless. 

These schedules could be tabulated at a small cost for all the cities 
and towns of Cuba, and your commissioner recommends that authority 
be granted to do this work and in connection therewith to make a 
census of the children of Cuba of school age. This should at once be 
done in the principal cities and towns. The information is obtainable 
now in some cities but not in all. In order to prepare for this work 
and to avoid delay your commissioner has obtained all information, 
including instructions to enumerators^ in relation to the work attempted 
last December by the Spanish authorities. The untabulated schedules 
will, of course, be turned over to the United States authorities when 
the military forces take possession of the island. 

A free public-school system must be immediately established, for 
much of the mistbrtune and suffering which Cuba has undergone may 
be traceable to the neglect of education. The proportion of people who 
are illiterate is very great. Some statistics show only one in forty of 
the laboring classes able to read and write. There can be no stable 
government in Cuba until this has been remedied. Those familiar with 
Cuban history 'will remember that the first movement toward the eman- 
cipation of the slaves was the practical freeing of all children born sub- 
sequent to 1868, the year, the revolution started which ended in the 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 11 

abolition of slavery. In the same way the first act looking toward 
political emancipation shoald be the establishment of a free public- 
school system, which shall have for its aim the preparation of the yoang 
Cubans for self-government, whether exercised as part of a Cuban 
republic or part of the greater republic, the basis of which is industrial 
freedom and the common school. 

MANUPACTUBINO AND SANITARY CONDITIONS. 

Manufacturing in Cuba is limited to a few industries in Havana, to 
the manufacture of sugar and tobacco, and to machine shops and small 
foundries scattered over the island for the convenience of the railway 
companies, sugar centrals, and harbors. Your commissioner visited 
all the manufacturing plants of Havana, some of which were located in 
quarters of the city reeking in filth and saturated with disease germs. 
There is little hope for industrial enterprise in the broader sense until 
the sanitary conditions have been improved in all industrial centers of 
the island. The fear of that deadly enemy to all enterprise and thrift, 
yellow fever, which lurks in the vicinity of the most flourishing indus- 
tries of Havana, makes it dangerous for those unaccUmated to enter 
these occupations. The initiatory success of manufacturing in Cuba 
must depend upon the importation of skilled labor from the United 
States or Europe. With this invisible and deadly foe in the background, 
ready to strike when least expected, and against which, as a Confed- 
erate officer now in the United States Army at Havana said, "you 
can not even raise an old-fashioned rebel yell," the outlook is far from 
attractive. 

Not only the commercial prosperity of Cuba, but, to a considerable 
extent, that of the southern portion of the United States, depends upon 
the possibility of destroying the foci of yellow fever which exist in the 
lar^^er cities and towns— especially in Havana and Matanzas — and 
which have been the cause of the epidemics of this disease which have 
occurred in the United States during the present century. It is believed 
that it is possible to do this, and from a mere industrial and commercial 
point of view it would be a good investment to expend several millions 
of dollars, if necessary, to effect it. A commission of experts, some of 
whom should be engineers of skill and experience, to make a sanitary 
survey of Havana and Matanzas and report as to what should be done 
to stamp out yellow fever in these cities, with careful estimates of cost, 
would seem to be most desirable. Until this has been accomplished 
and the centers of industrial activity of Cuba made safe for the influx of 
skilled artisans, whose advent alone will make it possible for Cuba to. 
diversity its industries and elevate the condition of its labor, there can 
be no manufacturing progress. 

NAVIOATION. 

Considerable testimony has been taken on the important subject of 
navigation. The questions arising under this branch of inquiry are 
delicate, and involve, as does the question of discriminating duties in 
favor of the United States (which many have advocated), in a greater 
or less degree, our international relations with other countries. Wit- 
nesses heard and statements received suggest discrimination in favor 
of American vessels between Cuba and the United States, and some go 
so far as to indicate that a joint arrangement of the American and Cuban 
flag would be a solution of the problem. Much of this is mere specula- 



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12 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

tion, as we can not discriminate in favor of American vessels in tbe 
trade between Cuba and foreign countries, for we can not do so in tbe 
case of American vessels in trade between New York and foreign coun- 
tries on account of our commercial treaties. The material so far gath- 
ered under this head has been submitted to the Bureau of Navigation 
of the Treasury Department, and as the experienced and efficient officer 
at the head of that Bureau has now under consideration a plan for 
facilitating the trade relations between Cuba and the United States, a 
report at this time on the subject would be inopportune, if not confusing. 

THE RAILWAYS OF CUBA. 

The railway system of Cuba, consisting of seven companies, the 
2kggveg2kto length of which is only 1,467 kilometers, or 917 miles, 
is entirely inadequate in bringing the extreme ends of the island 
together, Santiago and Havana in point of time being as far apart as 
San Francisco and New York, though only separated by a distance of 
a few hundred miles. The facts gathered on this subject, and the maps 
and reports to be submitted, point to the advisability of immediately 
constructing a trunk railway from end to end of the island, with 
branches extending north and south to the important cities and ports. 
In the opinion of your commissioner from whatever standpoint it may 
be viewed, no one enterprise could do so much to improve tbe situation 
upon the island. No revolution could have existed in Cuba if such a 
railroad had been completed by the former government, and nothing 
will so rapidly tend to the revival of commercial and general business 
as the facility for quick passage from one end of the island to the other, 
and from tbe trunk line over branches to the seaboard cities. All 
political turbulence will be quieted thereby and prevented in the future. 
The entire country will be open to commerce, lands now of practically 
no value and unproductive will be worked, the seaport towns will 
become active, and commerce between the island and the United States 
will soon be restored to the former figures of approximately $100,000,000 
X>er annum. Business enterprise, ever alert to conditions such as herein 
described, has already surveyed the route, and there are several 
projects on foot looking toward prompt action in this direction. After 
a careful study of the situation, it would seem extremely doubtful if 
such an enterprise could be made a commercial success for many years 
to come without material assistance from those responsible for the 
industrial future of Cuba. 

DISTRIBUTION OP LABOR. 

That the wounds of Cuba will soon heal with tbe rapid promotion of 
work is undoubtedly true. This is the struggle the United States is 
now entering upon, and the employment of the people should be the 
first aim of those responsible for the management of affairs. There 
will naturally be many disappointments and some disillusioning. The 
condition of labor in the island requires tbe most serious attention of 
our Government. There is at this moment a steady increase in tbe 
demand for labor on plantations, and in Santiago province labor for the 
mines. While in Cuba your commissioner received one cable dispatch 
calling for 1,500 laborers for tbe mines, while three large planters stood 
ready between them to employ 1,000 men to work in tbe sugar fields. 

In tbe neighborhood of the sugar plantations all tbe able-bodied men 
had either been killed in battle, died of disease or starvation, or were 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 13 

still in a state of practical destitation hidden away in the insurgent 
camps. Those who offered themselves for employment were, as a rule, 
too weak to withstand the hard labor. Three years of privations and 
lack of food had destroyed their stamina. To be sure, there is surplus 
labor in Havana, able-bodied labor, but those who applied there had 
no means of transportation to the localities where they could obtain 
work. Through a suggestion made by your commissioner to an enter- 
prising American concern 400 of these Havana laborers were sent to 
Santiago. It is estimated that at least 3,000 additional laborers could 
be well employed in these mines before the end of the year, if it were 
possible to send them from the spots where starvation stares them in 
the face to the localities where work can be obtained for those able to 
withstand the hardest toil under trying climatic conditions. 

Many Spanish soldiers desire to remain in the island. They have 
formed alliances in Cuba — some of them have married and have families 
there. These men have come before your commissioner and entreated 
him to aid in finding them employment of some kind, either as civil 
guards, in the mines, or on the plantations. As a rule, they make indus- 
trious and faithful laborers. Attention is called to an extract from a 
letter written by a prominent business man of Havana, the man, in 
fiujt, who, in October, was employed to send the 400 laborers from that 
city to Santiago: 

I adTertised for laborers in the Santiago mines in our principal newspapers, and, 
in consequence, have had for the last three days at least 120 men calling at my office 
for situations. They are willing to accept the price offered, but not one of them can 
pay the passage from this port to Santiago. 

Lots of soldiers, lots of laborers, many of whom have already worked in the San- 
tiago mines and know all about the work, living, and everything else, but were 
taken away from there as guerrillas, volunteers, and soldiers of some kind, are will- 
ing to go, but, as you will understand, the people here have been without work and 
the soldiers without any pay, and therefore nobody can pay the passage. 

While writing these lines several men have called on mo, but it is tne same thing 
over and over again ; they need work and are willing to work, but they have not 
got one cent to save their souls. 

It is believed this indicates clearly and without exaggeration the 
present conditions in Havana, as regards would-be laborers and their 
snfierings for want of work. During fifteen years' experience in opera- 
ting iron mines in Cuba those who know say the labor question there 
has always been the unsolved problem, as never during that time have 
they been able to fully supply their wants in this direction. If the 
number of laborers has not in normal times been sufficient to satisfy 
the requirements of all industries in Cuba, how much will it fall short 
under the existing conditions? The only hope for the renewal of 
prosperity in Cuba is, first, the rehabilitation of the sugar industry; 
secondly, a revival of work on tobacco plantations, and thirdly, a full 
complement of men in the mining districts. These industries are the 
basis of the prosperity of the island. A better distribution of labor 
will aid somewhat, and if this was done intelligently by the United 
States Government, employment could be found for thousands whose 
presence in Havana without work will be a menace to the city. 

It should be borne in mind that the Cuban harvest is in the winter 
months, and your commissioner therefore respectfully recommends that 
some plan be at once inaugurated by which those who want work can 
be immediately brought to those anxious to give them employment. 
A small expenditure of money in this direction will save a large expen- 
diture in some other and less desirable ways. With a comparatively 
small expenditure of money for water transportation and rations for a 
week or two, your commissioner, during the few weeks he stayed in 



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14 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA, 

Havana, conld have given steady employment to 2,500 able-bodied men 
in various parts of the island. Surely we have here a practical field 
for work. 

It is useless to try to create new industries until the old and strong 
industries of the Island of Cuba are on their feet again. K it is diffi- 
cult to secure the necessary labor, after the Spanish soldiers leave, 
for the plantations, producing, as they will this vear, a maximum of 
400,<»00 tons of sugar for export, where are the laborers coming from 
to produce the high- water mark of 1,100,000 tons of sugar? The proc- 
ess of industrial reconstruction will necessarily be slow and depend 
in a large degree upon the stability of the government and the rapidity 
with which the people settle down to work. There is no possibility, 
however, of a surplus labor supply. Work can be found for all capable 
and willing to perform hard labor the moment the affairs of the island 
pass into the hands of the United States military authorities and the 
new customs tariff goes into force. From this time the work of repair- 
ing the dismantled sugar plantations will begin and thousands of 
laborers will be required. Take, for example, such a port <;s that of 
Oienfuegos, which is in touch by rail with a large number of the best 
sugar plantations of the island. From this point thousands of hands 
may start to work that will give them all the necessaries of life, though 
none of the luxuries. It is therefore regarded of the utmost importance 
that this port come under the control of the United States Govern- 
ment December 1, even should there be further delay in the western 
ports of the island. 

Whatever may be the ftiture of Cuba, the present must be provided 
for and life and property and the right to labor protected. The dis- 
posal of the insurgent troops is so intimately interwoven with labor 
that it IS difficult to separate the two questions. Some of the insur- 
gent troops should and probably will be utiliz^od as civil guards, and 
supplement the United States forces, but those who are not needed for 
this purpose should be systematically aided as far as possible in any 
endeavors they may make to secure work. Men with hardly clothes to 
cover their nakedness, who have existed for three years on a diet that 
would kill the ordinary American laborer in three weeks, and who have 
practically foraged for their daily existence, must be helped a little 
before they can stand alone — helped at least to the extent of food and 
raiment and transportation to the locality where there is work n 
abundance. 

THE NEBD OF HOMES. 

The need of homes in Ouba is one of the most pressing. The condi- 
tion of those who labor on the plantations is truly deplorable. They 
literally have none of the necessities of civilization. A complete state 
of savagery would be preferable to the condition of some of those 
employed on the sugar estates, who toil from early sunrise to sunset on 
rations of the plainest sort and live in huts built of the bark of palm 
trees thatched with the palm leaf. Elsewhere, in the report accompa- 
nying this letter, the condition of the labor of Cuba will be fully 
considered. 

SPECIAL REPORTS IN COURSE OF PREPARATION. 

The material has been collected for special reports in relation to the 
agriculture of Cuba, together with a statement relative to the past and 
present condition of the sugar plantations and to the future possibilities 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 15 

of Onba as a sugar-prodacing country. A report is also in preparation 
and all the material for the same secured on the tobacco industry. A 
large amount of valuable material has also been gathered in relation 
to the mining industries of the island, with special reference to the 
situation in the iron-ore districts of Santiago province. In addition to 
•the fActs herewith submitted in relation to currency and banking, mate- 
rial has been collected, and some of it is now in process of translation, 
which will, it is hoped, furnish a complete history of the finances, cur- 
rency, and banking of Cuba for* the last fifty years. The question of 
navigation and shipping, as already indicated, is one of great impor- 
tance, and special effort has been made to obtain from all available 
sources information that will enable your commissioner at an early day 
to make a full report on this important subject. 

There are also among the data and testimony collected many 
valuable general statements, in relation to the financial, industrial, 
commercial, and social condition of the Island of Ouba, which will 
form the nucleus for a report on the possibilities for American enter- 
prise and the opportunities for American capital and labor when the 
more pressing questions of the government and revenue and taxation 
of the island have been settled. As it is the intention of your com- 
missioner to return to Ouba at an early day, it has not been thought 
best, even had the time permitted, to submit these reports until all 
sources of information have been exhausted. The reports above men- 
tioned, relating to specific subjects, will be submitted separately, 
because in that form they will be more easily attainable by persons 
interested in special subjects, who will not care to be burdened with 
the complete report. Should it afterwards be decided to print the 
entire report under one cover, there will be no difficulty in arranging 
the topics in their proper order and rounding them all into one comple.te 
report. 

All of which is respectftilly submitted. 

EOBBRT P. Porter, 

CommisHoner. 

Hon. Lthan J. Gage, 

tkcretary of the Trensury^ Washington^ D. C. 



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EECOMMEITDATIOHS IN SELATIOIf TO CHAITGES IN RATES OF 
CUSTOMS DUTIES IV POETS IN CUBA. • 

Treasubt Department, 
Office Speoial Commissioner of the 

United States to Cuba and Porto Rico, 

November 15, 1898. 
In recommending changes of rates in the several schedules of the 
Ouban tariff now in force in Cuban ports in possession of the United 
States, your commissioner has been guided by the following consid- 
erations : 

1. The necessities of obtaining sufficient revenue to administer the 
affairs of the island. 

2. A reduction of duties in those cases where Spain retained in the 
<< minimum-rate" column exorbitant rates because she could not herself 
supply the commodity. 

3. An increase of duty in the schedule relating to spirits, wine, and 
malt liquors, in which the reduction by the adoption of the *^ minimum- 
rate" column is altogether too great. 

4. Changes of rates that have been suggested, by the testimony taken, 
for the purpose of encouraging local industry in Cuba. 

5. Changes from specific duties to ad valorem in cases where the 
former method of levying duties resulted in inequalities and, in some 
cases, injustice, alike to importer and consignee. (!Note Schedule XI, 
*^ Instruments, machinery, and apparatus employed in agriculture and 
locomotion.") 

6. Changes in the line of additional reductions, as in the case of 
Schedule XII, "Alimentary substances," in which many of the rates of 
duty now in force in Cuban ports in tbe possession of the United States 
were found to be unnecessarily burdensome. In this case the aim has 
been to make the specific rate of duty average not over 25 per cent of 
the present market value of the imported commodity. 

7. In these changes of duty consideration has been given to the fact 
that the Cuban customs, under American administration, will be col- 
letjted in United Strftes currency, whereas the Spanish duties were 
collected in 80 per cent Spanish gold, and 20 per cent Spanish silver; 
roundly speaking, therefore, if the old Spanish duties were left 
unchanged, it would practically mean an increase of 10 per cent in the 
tariff. It should therefore be borne in miDd that the reductions made 
are in fact 10 per cent less than the figures indicate. On the other 
hand, however, the additional duties exacted by the Spanish authori- 
ties, levied as "war tax" since the signing of the protocol, more than 
counteract the difference in currency. 

With these general ideas in mind and the testimony of a large num- 
ber of witnesses, together with numerous statements relating to the 

Note: The appendix, to which reference is made in these recommendations, con- 
taining in fuU the testimony of the several witnesses who have appeared before 
Commisaioner Porter, wiU be pnbUshed later. 

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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA, 17 

Yarious classes of the Cuban tariff, tbe several schedules have been 
carefully examined, and the general reasons for the changes in rates, 
etc., suggested, may be found in the subjoined summary, which has 
been arranged according to the number of the schedule or class, which 
is the more literal translation of the Cuban tariff. 
The following table shows 

TheAvkragb per cent of Reduction in the Sevbrai« Classes between Old 
Spanish Rate and Rate Originally Adopted by United States for all 
Imports. 

Class I. Stones, earths, ores, etc 64.1 

Class n. Metal8,eto 62.1 

Class III. Pharmacy and chemicals, sabstanoes of 58.1 

Class IV. Cotton,eto 63.7 

Class V. Hemp,flax,eto 62.5 

Class VI. Wool,eto 70.4 

Class VII. Silk,etc 59.0 

Class VIII. Paper, etc 76.9 

Class IX. Wood,etc 63.1 

Class X. Animal8,etc 61.8 

Class XI. Instroments, machinery, etc 60.6 

Class XII. Meat, fish, butter, and greases 61.5 

Class XIII. Miscellaneous 61.8 

Qeneral average, all classes 62.0 

Class L— Stones, Earths, Ores, etc. 

Glass I relates to stones, earths, ores, glass, and ceramic products, and 
contains six groups, divided as follows: Group 1, "stones and earths 
employed in building, arts, and manufactures;" group 2, "coal;" group 
3, "schists, bitumens," etc; group 4, "ores;" group 5, "crystal and 
glass," and group 6, "pottery, earthenware, and porcelain." In 1895, 
the last normal year of the Cuban tariff, the total value of imports into 
Cuba on this schedule was $4,733,368.12. 

The articles on which the rate now levied in Cuban ports in the pos- 
session of the United States remains nnchanged, and is the same as 
the rate exacted on goods coming from foreign countries to Cuban 
portB in possession of Spain, are as follows : Section 6, " tar and mineral 
pitch, asphalts, bitumens, and schists;" section 7, "crude petroleum," 
ete.; sections, "refined petroleum and other mineral oils." etc.; section 
9, "ores," and section 15, "incandescent electric lamps," etc. 

The policy adopted in this inquiry has been to make special investi- 
gations in relation to these articles, with a view of ascertaining, if 
possible, why the Spanish Government exacted no differential duty. 
The reasons, as heretofore suggested, have nearly always been discov- 
ered to be that they were articles in which Spain herself had no partic- 
ular interest, because they would be supplied anyhow to the population 
of Cuba by foreign countries, and, with an utter disregard of the 
interests of the Cuban consumer, the highest rate of duty was main- 
tained. Wherever possible it will be found these rates have been 
reduced about one-half, the idea of so doing being to bring about a 
unifcrraity of reduction of about 50 per cent in all schedules, except 
those relating to articles of luxury and to commodities which do not 
enter greatly into general consumption, where, as will be seen, the rates 
of duty have only been decreased 25 per cent. In addition to the 40 
cents per ton duty on coal there has been charged a tonnage tax. This 
tonnage tax should be abolished or the rate on coal reduced. As it 
may not be practicable to discriminate so as to abolish the tonnage tax 
8753 2 



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18 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

in the case of vessels carrying cargoes of coal, it is proposed to pnt 
coal upon the free list. Although the duty on paving stones has been 
reduced from 40 to 20 cents per 100 kilos, this would still seem to be an 
unreasonable rate of duty to put on an article which will cut such an 
important figure in the sanitary rehabilitation of the city of Havana. 
The testimony of one of the most public-spirited aldermen of that 
city is worth reading on this question, and it has been decided, as 
suggested by this witness, to put unwrought paving stones on the free 
list. In view of this reduction and the fact that the discriminating 
or highest rate of duty has been retained on tar and mineral pitch, 
which includes asphalt, also largely used in paving, it has been deemed 
advisable to reduce the duty about 60 per cent on these articles. A 
very interesting statement by Mr. 0. Ti Harris, president of the Celadon 
Terra Cotta Company, of New York, suggests that the method of levy- 
ing the duty in section 16, <' tiles, bricks, and roofing tiles of clay, etc,^ 
and section 17, << slabs, tiles, ceramic tiles, glazed roofing tiles, etc.,'' 
be changed from weight to measurement. This statement would seem 
to be so clear on this point that it has been followed and two additional 
sections under 16 and 17 inserted, sections 16 and 17 to be changed to 
read: 

Sec. 16. Bricks gf olay. not glazed, for ballding parposes, fomaoes, etc., articles 
of fire clay, G. W., per 100 kilos, 30 cents. 

Sec. 16a. Roofing tiles of clay, not glazed, for ballding purposes, $1.50 per square 
(10 by 10 feet). 

Sec. 17. Slabs or conduits of clay, glazed or unglazed, cement or stoneware, G. W., 
per 100 kilos, 60 cents. 

Sec. 17a. Ceramic tiles of aU kinds and glazed roofing tUes, $2.50 per square (10 
by 10 feet). 

It will be noted in this schedule that bricks and other articles for 
building purposes have been reduced 70 per cent. While it might 
be better to levy the duty on bricks by the thousand, as in the United 
States, it was not considered a hardship to leave this item at 30 cents 
per 100 kilos, or $3 per gross ton. A thousand of bricks weigh about 
5,000 pounds, and the duty levied, which is a reduction of 70 per cent 
from the old Spanish rate, makes the duty on bricks less than 25 per 
cent ad valorem. The specific duty arranged for tiles will be about the 
same. 

Oonsiderable testimony and several statements have been received 
in relation to the present duty on petroleum oils, crude and refined. 
While it might be desirable to admit crude oil free of duty, it is impos- 
sible at this juncture to abandon the revenue which will be collected 
from these sources by abolishing the duty. The present duty on crude 
oil going into Cuba is 3.08 pesos per 100 kilos, equal to about 11.24 cents 
per gallon. This duty has been reduced to 5 cents per gallon, or 1.40 
pesos per 100 kilos. As the importation is likely to reach, when peace 
and prosperity return to Ouba, 5,000,000 gallons per annum, this should 
gtve a revenue of $250,000, which it is impossible to abandon at this 
time. The present duty on refined oil is 5.20 pesos per 100 kilos, or about 

19 cents per gallon; this has been reduced to 17 cents. According to 
a statement made by those interested in the oil refinery of Havana, 
the rate on refined oil was increased December 7, 1897, by royal decree, 
to $8.22 per 100 kilos, maintaining the duty on crude oil the same as at 
present, $3.08. This was done for the purpose of protecting the Havana 
industry. For this purpose, according to the testimony, a difierence of 
14 cents is required between crude and refined oil. 

Under the reciprocity treaty between this country and Spain the 
difference in duty between crude and refined oil was placed at 16 cents 
per gallon. Your commissioner, however, after making full inquiry in 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 19 

Havana, believes that with strict economies and the increase in business 
which will follow a stable condition of affairs this industry can con- 
tinue in operation with a difference of 12 cents between crude and 
reftued oil, and the rate has therefore been fixed at $1.40 per 100 
kilos for crude (a special rate has been made on crude oil intended for 
tiie manufacture of gas only, of .70 per 100 kilos) and $4.70 per 100 kilos 
for refined oil (a special rate has been made for cordage oil of 2.35 per 
100 kilos), all these duties figured on the gross weights. Of-course, if it 
were possible to make crude oil free, the duty on refined oil could be 
reduced to 12 cents a gallon, or 3.29 pesos per 100 kilos, but this can 
not be done at present. At one time the net protection given this 
industry was nearly 24 cents per gallon. The protection accorded in 
this schedule will be about halt that amount and it is believed will be 
sufficient to hold the industry for Cuba. There are so few industries 
in Havana that it would seem a great hardship to destroy this one, 
which was built at a large cost by American capital, and which is still 
owned by American citizens, and is one of the four or five prosperous 
industries of the place. 

In the manufacture of refined oil it has been stated to your commis- 
sioner that all material, shooks, cans, chemicals, etc., including coal, 
have to be shipped to Havana, as Ouba does not produce these 
articles. The buildings now occupied by the refinery can not be used 
for any other purpose. There is no well-developed market in Cuba 
for most of the by-products produced in distilling crude petroleum, 
and which amount to about 22 per cent of the crude run, and which 
products in the Unit'Cd States have a ready market. In a statement 
published in full in the appendix, those interested in this industry say: 

With the duty in force at the present time, and which, as before explained, is con- 
trary to the royal decree, it will be impossible for as to continue operating the 
refineries, and the seyeral hnndred thousand dollars invested in plant must b^ome 
practically a complete loss, as to dismantle the construction would mean its ruin and 
a large number of workmen thrown out of employmeut. We do not ask the highest 
prot^tion which the Spanish Goverument has accorded this American industry in 
the past; but to operate the works we reaUy require something like the protection 
given us under the reciprocity treaty, which was a little over 16 cents on refined, 
and at which time we had free crude. If it is thought necessary to place a duty 
on crude, then we would respectftilly suggest a net protection of say 14 cents between 
crude and refined, which would be oonsiderably less than the protection accorded us 
in the past. 

An instructive statement by Julio Durege, manager of the Havana 
works, containing the facts and figures in relation to the petroleum 
business in Ouba, will be found in the appendix. From this statement 
it appears that prices of oil since the establishment of the local refinery 
have been fully 25 per cent cheaper than the prices of imported oil, the 
consumer deriving, therefore, benefit from the establishment of this 
industry in the island. 

There have also been slight reductions in duty on incandescent elec- 
tric lamps. The duty on iron ore has been reduced 50 per cent per 100 
kUoB, or about 81 per ton, which would seem to be suf^cient. 

Class II.— Metals and all Manufaotubbs m which Metal 
Enters as a Principal Element. 

Under this schedule during the last normal year, 1895, there were 
imported into Ouba $2,063,281.95 worth of merchandise. A glance at 
the exhibit containing the old rate of duty for all imports except Span- 
ish, the new rate for all imports as adopted by the United States in 
Cuban ports in possession of the United States, and the reductions and 
changes proposed in the present report will show that in about fifteen 



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20 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

sections the new rate for all imports is substantially the same as the 
old rate for all imports except Sp..ni8h, namely, section 22, "gold and 
platinam in jewelry and goldsmith's wares," etc.; section 23, "gold and 
platinum wrought in other articles;" section 24, "silver in ingots, bars," 
etc.; section 25, "jewelry or wares of silver," etc.; section 26, "silver- 
smith's wares," etc.; section 29&, "lubricating boxes for railway trucks 
and carriages," etc. ; section 33a, " rails ;" section 36a, " wheels, springs," 
etc.; section 40, "anchors, chains," etc.; section 43a, "agricultural 
implements, hammers, and anvils:" section 59, "wire;" section 61, 
"pipes, bearings," etc.; section 6o, "mercury;" section 67, "nickel, 
aluminum, etc., in lumps or ingots;" section 77, "filings, shavings, cut- 
tings of iron or steel," etc., and section 78, "scoriae, from smelting of 
ores," making a total of fifteen sections. 

In addition to this in section 27 a discrimination was made by the 
Spanish in favor of certain Spanish firms to import plated goods. 
While in the duty on nickel, aluminum, and their alloys, in bars, sheets, 
and wire, in section 70, the difference between the two rates was less 
than 10 per cent. It has been decided that articles in group 1, which 
were considered articles of luxury, shall remain unchanged, except 
that the discrimination in favor of two special Spanish concerns has 
been abolished and the maximum rate on plate left, namely, $2.40 
per 100 kilos. The other rates, as they all relate to articles used in 
manufacture, have been reduced so that the rate of reduction will cor- 
respond to the general rate of reduction for the entire schedule with 
the exception of group 1. Steel rails, 33a, now dutiable at $8.50 per 
ton, have been reduced to $4.26 per ton. Agricultural implements, 
43a, have been placed on the free list. 

Several communications and statements from American concerns 
have suggested the advisability of admitting some of the articles in 
this schedule free of duty. However desirable this might be, the 
revenue features preclude the possibility of the admission of anything 
except plows, hoes, machetes, cane knives, etc., for agricultural pur- 
I)08es, and other agricultural implements, not machinery, free. The 
schedule, however, has been materially reduced and the inequalities, as 
far as possible, eradicated, and it is believed that in its present shape 
it will not be burdensome to those enterprises in Cuba which will 
require the commodities coming in under this class, nor will it retard 
the American enterprise in its endeavor to supply the Cuban market 
with manufactures into which metals enter as a principal element. 

Class III.— Phabmaot and Chemicals, Substances op. 

Under the next class, substances employed in pharmacy and chemi- 
cal industries, and products composed of these substances, $2,166,414.92 
worth of merchandise was imported into Cuba in 1896. It will be 
observed that in the following sections the new rates for all imports 
adopted by the United States Government for Cuban ports in the 
possession of the United States, have not been reduced, namely: — In 
group 1, sections 80a, "colophony," etc.; 80c, "gutta-percha;" section 
83, "opium." In group 2, section 936, "bromine, boron, iodide, and 
phosphorous;" section 946, "inorganic acids, other inorganic acids;" 
sections 95c and 95df^ "organic acids, acetic acid, and other organic 
acids;" section 97, "inorganic salts;" c, "sulphate of ammonia," etc.; 
d^ "other salts," etc., and e, "chlorates of soda and potash;" section 
98, "organic salts;" a, "acetates and oxalates," and 6, "citrates and 
tartrates;" section 99, "alkaloids and their salts, chlorides of gold and 
silver." In group 4 of this schedule, "oils, fats, wax, and their deriva- 

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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 21 

tives;" section 104a, "cod liver and other medical oils;'' section 105, 
<< mineral, vegetable, or animal wax." In group 5, section 112, "car- 
bons prepar^ for electric lighting," making a total of sixteen articles 
which come under the general plan adopted in this report for special 
examination. A reduction of about 50 per cent has been recommended 
on all these articles excepting opium, upon which the duty has been 
increased over the present tariff in force in Cuban ports in possession 
of the United States. Quinine, an article of great necessity, has been 
placed on the free list, and common salt cut down more than two-thirds 
of the old rate of duty. 

Further reductions of duty have been made on two or three articles, 
such as under the head of inorganic salts, where the difference between 
the Spanish and American rate was smaller than the average of the 
schedule. Also, some slight changes have been made in the schedules 
relating to common soap, perfumery, and raw materials out of which 
these articles are manufactured. These changes have been made at 
the suggestion of an important home industry of Havana, with a view 
of encouraging the manufacture of these copimodities in Ouba. 

Class IV.— Cotton, etc. 

Under Schedule IV, *^ Cotton and manufactures thereof," there were 
imported into Cuba in 1896 $5,908,202.23 worth of merchandise. This 
schedule seems to be satisfactory, as the testimony on this subject has 
been very meager, the reduction made by the adoption of the new rate 
for all imports being 64 per cent. The revenue features of this sched- 
ule are so important that it has been. deemed advisable to increase the 
duty from the tariff now in force in Cuban ports in the possession of 
the United States so that the reduction from the Spanish tariff against 
foreign countries will average 50 per cent instead of 64 per cent, as would 
have been the case had the minimum rate been adopted throughout. 
In making these changes the classifications have been altered with a 
view to lightening the rate of duty on the lower grades of cotton cloths, 
thus making the finer grades pay higher rates than the articles of gen- 
eral consumption. The only item remaining on this schedule at the old 
Spanish rate was section 115, cotton in the wool and cotton waste. As 
the duties on all other articles have been reduced about 50 per cent, 
there would seem to be no reason for not including this section, therefore 
a similar reduction has been made in section 115. 

Class V.— Hemp, Flax, etc. 

Class V, " Hemp, flax, jute, and other vegetable fibers and their manu 
factures," under which in 1895 $3,587,713.23 worth of merchandise was 
imported into Cuba, is a schedule of considerable interest, because 
upon its satisfactory adjustment turns one of the most important indus- 
tries now carried on in Havana, namely, the manufacture of rope and 
twine, and also a prospective industry, namely, that of the manufacture 
of bags. While in Havana your Commissioner visited the rope manu- 
factory, which, like most other manufactories in the Island of Cuba, is 
carried on by American capital and due to American enterprise. This 
factory was in operation and employing 150 hands. The proprietors of 
this industry, as will be seen by their testimony, promise, if some of the 
raw materials entering into their manufacture are made free of duty, to 
immediately start in Havana a factory for the manufacture of bags. 
if our Commissioner has endeavored to meet these gentlemen, and the 
changes made in this schedule, namely, the placing of hemp and 

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22 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

manila on the free list, together with some other minor changes, are 
recommended with a view of establishing this industry. 

A glance at the exhibit, with the several rates of duty, shows that 
section 132, "hemp, flax, and ramie," etc. ; section 133, "abaca (manila), 
jute and other vegetable fibers,'' etc.; section 144, "carpets of jote, 
hemp," etc., all remain at the (Ad Spanish rate of duty; while on the 
other articles of the schedule an average reduction of over 60 per cent 
was made by the adoption of the tariff in force in Cuban ports in pos- 
session of the United States. The following paragraph, from a state- 
ment made to your commissioner in Havana by the Heydrich, Baffloer 
Company, through its president, Eudolph Erbsioh, sums up the situa- 
tion in regard to this industry: 

The special object of this statement is to call yonr attention to the fact that the 
tariff wnioh the United States intends to enforce in all the ports of Cuba is very 
harmfal to ns. The dnties on our raw material, which we need in the manufacture 
of cordage, remain the same, whereas the duty on cordage has been out down 50 per 
cent. It was formerly $12 per 100 kilos; it is now $6; and yon will readily see that 
this tariff is no protection whatever, as we have to pay dnties on raw material (hen- 
iqnen and manila), machines, cordage oil, lubricating oil, coal, burlap, tar, belting, 
repair materials, and in fact almost every article we need in the manufacture of 
cordage. Ninety per cent of heniqnen and manila which we use we import. The 
heniqnen frown in the Island of Cuba is so little that it does not constitute a flEUStor 
in the problem. 

The duty of $6 per 100 kilos would be satisfactory to us if we did not have to pay a 
duty on all the articles mentioned, especially on raw material (heniqnen and manila). 
If you think that the duty on raw material and on all the articles mentioned can 
not be abolished, we would kindly ask you to propose to the authorities at Wash- 
ington to increase the duty on rope and cordage (section 133 of the customs, tariff, 
and regulations for ports in Cuba in possession of the United States) from $6 per 100 
kilos to at least $8 per 100 kilos, as this would not be more than a fair protection. 

We can, of course, sell our manufactured ^oods only in the island of Cuba, as it is 
impossible for us to compete in other countries with the United States and England, 
as these countries have all the raw material and most of the other articles free of 
duty, and, as their factories are considerably larger than ours, of course they are in 
a position to manufacture a little cheaper than we can. 

If the duties on raw materials and all other articles used by us in the manufacture 
of cordage remain, and the duty on cordage is reduced to $6 per lOO.kilos, we shall 
have to face the question whether we ought not to abandon the business and with- 
draw our capital from the island. 

As it did not seem advisable to increase the duty on rope and cord- 
age, your commissioner has decided that it would be wiser to make the 
articles in sections 132 and 133 free. This will in no way interfere, so 
far as your commissioner has been able to ascertain, with any native 
industry. The statement referred to is published in full in the appen- 
dix. It will be noted in the appendix that requests have been made by 
specific firms for further reduction of the duty on rope, but as reduc- 
tions made by the present tariff range from 46 to 73 per cent, and in 
view of the fact that Havana has a flourishing rope industry, it seems 
to your commissioner that this is undoubtedly a case where the future 
interests of Cuba should be considered, and not the interests of the 
importer. If a duty, as suggested, of $2 per 100 kilos should be placed 
upon these commodities the flourishing rope factory in Havana would 
undoubtedly be wiped out of existence and one of the few opportuni- 
ties of Cuban labor and for the diversifications of employment in that 
island (a consummation most devoutly to be hoped for) lost. 

In addition to making hemp, flax, and manila free, it has also been 
deemed advisable to put spun jute on the free list for the following 
reasons, given by Heydrich, Eaffloer & Co., in speaking on the subject 
of sugar bags: 

We want to make sugar bags, our privilege from Spain covering the manufacture 

^f this article. The bags now come firom Barcelona, paying $2 per 100 kilos duty, 

d compete here with Calcutta bags paying $7.58 duty. We could not make these 

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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 23 

htk^i here, because the Spanish ba^s had a very low duty, although English bags 
paid a very high duty. A sugar bag weighs about 2^ pounds, so that 100 bags would 
only pay a little over $2. Now, we would start a factory here right away if we were 
authorized to import spun jute. The process of spinning jute is very difficult, and 
we want the priyilege of importing spun jute. If we can get this in free, we could 
compete with everyone, and will guarantee to start the factory within two months. 
On the basis of the highest crop, 1,000,000 tons, there would be 7,000,000 bags used. 
We have evervthing ready to start the factory for making these bags ; we have three 
bnlldings, and have our own dock. Jute now pays a duty of $2.20 per 100 kilograms. 

There is some objection to this action, nrged by those interested in 
the importation of bags into Cuba, and one prominent American sugar 
mannfactarer, who owns large estates in Cuba, recommends a low duty 
on mauofactured sugar bags, not over 25 per cent of their value; this is 
done on the ground that neither the United States nor Cuba can com- 
I>ete with England or Germany except under high discriminating duty. 
As the present rate of duty, $2 per 100 kilos, which is a reduction of 
73.6 x)er cent from the rate exacted by Spain^ is neither unreasonably 
high nor a discriminating duty, it is the opinion of your Commissioner 
that if these gentlemen are able to start the industry suggested by giv- 
ing them simply the advantages of free raw material and not by increas- 
ing the rate of duty that the opportunity should be allowed them to 
demonstrate their enterprise. It is possible that, like the tin-plate 
manufacturers of the United States, in a few years the sugar planters 
who use the 7,000,000 sugar bags per annum will find, as the users of 
tin plate have found, that they are getting a better and cheaper article 
manufactured in Ouba than they have ever had heretofore, by shipping 
from Calcutta via Barcelona. 

In section 144, '< carpets of jute, hemp, or other vegetable fibers, with- 
out admixture of wool," the old Spanish rate has been retained, namely, 
10 cents per 100 kilos. It is recommended that this duty shall be made 
5 cents per 100 kilos. 

As the average reduction on this schedule is but a little over 60 per 
cent, and, with the additions to the free list, will be considerably less 
than that if the calculations could be made on quantities of goods 
imported, it is deemed advisable to leave the other reductions, large as 
some of them are, as they stand. It will be noticed that under section 
139, in the various classes of thread used by the people of the island, 
the reductions have ranged from 66 to 73 per cent. 

Mr. Ernest BafQoer stated personally that they would like section 
132, << hemp, flax, and ramie, raw, hackled, or tow," and section 133, 
'^ abaca, heniquen, pita, jute, and other vegetable fibers, raw, hackled, 
or tow," put on the free list. 

Also to have section 134 read: 

Twisted yams of two or more ends (including the weight of the reels), also the 
fibers of abaca, heniquen, pita, jute, and other vegetable fibers, prepared for spin- 
ning, N. W., per kilo, .10. 

Spun jute for the manufacture of sugar bags only has also been made 
free of duty. 

In subsequent testimony on the question of free admission of jute 
Mr. Ernest Eaffloer, treasurer of that company, gives the following 
assurance in relation to the establishment of an industry in Havana, 
provided jute yam was made free: 

If jute yam should be placed on the free list, we will, make the very greatest 
efforts to establish a very large industry for the manufacture of sugar bags. We 
have decided to undertake this enterprise. 

In view of the fact that a rope and twine industry already established 
by this firm is at the present time one of the most flourishing industries 
in Cuba^ ithas been decided to make this change in the hope that this 

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24 COMMERCIAL AND INDUSTRIAJLi CONDITION OF CUBA. 

enterprising concern will be able to accomplish results that will be bene- 
ficial alike to the labor interests of Cuba and to the planters who use 
the bags. At any rate, the planters can have no cause whatever for 
complaint, for the duty on bags has been reduced from the rate which 
Spain exacted against all foreign countries of $7.58 to $2 per 100 kilos. 
While those interested in the prospective industry of bag manufacture 
in Cuba strongly urge an increase of this duty, it was not thought 
advisable^, in view of the present conditions of the sugar industry of 
Cuba, to grant it, and it is hoped that they will be able to accomplish 
the desir^ result by admitting the yarns from which the bags are made 
free. 

Class VI.— Wool, etc. 

Class VI, "Wool, bristles, hair, horsehair, and their manufactures," 
under which in 1895 were imported into Cuba $1,060,192.13 worth of 
merchandise, does not seem to interest the Cubans, for no testimony 
has been offered your commissioner in relation to this schedule. The 
average reduction resulting from adopting the new rates for all im- 
ports would seem to be altogether too large, and, as woolen goods are 
not much used in Cuba, certainly not by the toasses of the people, it has 
been deemed advisable to put the duties back on this schedule, and to 
make a rate of 40 per cent ad valorem. In this connection it would 
seem that section 147, '* bristles, hair, and horsehair," 148, "wool, raw," 
and 149, "woolen yarns," etc., have been unchanged. It has been 
thought advisable to make the same reductions in these sections as in 
the rest of the schedule. 

Class VII.— Silk, etc. 

Class VII, "Silks and manufactures thereof," is the least important 
so far as imports are concerned, aggregating in 1895 only $315,010 
worth of merchandise imported into Cuba, In adopting the rate of 
duty which Spain reserved for silk goods coming from that country 
the United States made altogether too great reductions of duty, when 
it is considered that silk is an article of luxury and that the rates 
arranged for Spain were with a view that that country and no other 
should supply Cuba with silk goods. As a real anomaly in this 
schedule, your Commissioner calls attention to section 174, in which 
the duty has been reduced from $3.10 on trimmings of silk to 60 cents, 
a reduction of over 80 per cent, for which there would seem to be no 
reason whatever. There would be no particular injury if the Spanish 
rate of duty on this schedule were retained, but as reductions have 
been recommended in each case it might be advisable to ma^e an 
ad valorem rate of 50 per cent for the whole of this schedule. 

Class VIII.— Paper, etc. 

Class VIII, "Paper and its applications," in 1896 showed an impor- 
tation of $1,256,132.94 worth of merchandise into Cuba. 

An interesting statement on this subject will be found in the appen- 
dix, from Mr. Chester W.Lyman, secretary of the American Paper and 
Pulp Association. According taMr. Lyman, Spain, through outi*ageous 
discriminating duties, was able to hold for herself about $1,000,000 
worth of this trade, not because she could supply the best and cheap- 
est paper, but because the discriminating duties were so high against 
all other countries that could supply the goods cheaper and better that 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 25 

Uie Cuban market was obliged to secure its supply, of an inferior article 
at a greatly enhanced cost, from Spain. According to the statement 
made by the American Paper and Pulp Association, it is the hope of 
the American paper manufacturers to secure this market; but to do 
this they ask a discriminating rate of duty in favor of the United 
States. Mr. Lyman says: 

If it is the desire of the Govemment that the paper trade of Caha should he tnrned 
over to the United States, the duties as against other countries should certainly not 
he less than those which form a part of our own tariff law. 

As a discriminating duty in favor of the United States is not believed 
to be a part of the policy of the Government, and as your commissioner 
believes that to discriminate in one case would necessitate discrimina- 
tion in another, the suggestion of Mr. Lyman has not been acted upon 
in making up this schedule.^ As the rate of duty for this schedule 
seemed to be a secondary consideration, and as the difference between 
the old rate for all imports except from Spain and the new rate for all 
imi)ort8 adopted by the United States was very great in this case, 
namely, 76.9 per cent, it has been decided to make the reduction 
throughout the paper schedule, as nearly as may be possible, 50 per 
cent, instead of nearly 77 per cent. In carrying this into effect two or 
tiiree suggested changes have been made in the wording. 

Under sections 176-177 endless paper generally means only paper in 
rolls, and writing paper is never put up endless, as it is impossible to 
use it in this shape, and it is always put up in ream packages, in large 
flat sheets of various sizes, the printers cutting it up to the proper 
sizes for ruling and printing into documents of all kinds. Consequently 
the condition of its being endless would not cover any paper, with the 
sole exception of newspaper, though even that, in this instance, would 
probably not be covered by this schedule, for the reason that it is only 
newspapers that have a large circulation that print their papers from 
endless rolls, and the smaller papers, such as would be issued in Cuba, 
invariably import their paper cut to the proper size that they use ordi- 
narily in the issues of their papers. It is also thought that the dis- 
crimination for differences in weight of paper is not necessary, as it 
merely serves to complicate the proper collection of duties. Taking as 
basis the schedule published of "Paper and its application" (group 2, 
"printing and writing paper"), the following schedule is suggested as 
more satisfactory and easier to understand from a mercantile standpoint : 

Paper, endless or in sheets, white or colored, uncut and unprinted, for printing 
purposes per 100 kilos 

Paper, endless or in sheets, white or colored, used for wrapping purposes, per 100 
kilos. 

Paper, in sheets, unruled, unprinted, and uncut, white or colored, used for writing 
purposes per 100 kilos 

The note in reference to surtax of 50 per cent on envelopes and paper 
in boxes rieady for immediate use is considered very fair, but it is 
thought it should cover all ruled paper of any kind, thus making a 
discrimination in favor of all flat paper which has to be cut up, ruled, 
and printed in the island. 

A delegation representing the lithographing trade waited on your 
commissioner and asked that a discriminating duty in favor of the 
United States should be levied on labels and lithographs for cigar 
boxes and other purposes, for their protection in the Cuban market. 
Th6 arguments against such a course, as given above in the case of the 
American Paper and Pulp Association, equally applies in this case. 
As, however, it appears that American ingenuity and American presses 



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26 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

enable the lithograpliers of the United States to print cigar labels — 
the principal production in this line of business with Cuba — witb less 
printings than any otber nation, it is recommended that the classifica- 
tion of paragraph 180 be amended to read as follows: 

a Of a single printing and bronze or leaf, including lables printed only in 

bronze or leaf kilog.. .05 

6 Of two printings and bronze or leaf do 20 

cOf three to ten printin/^s and bronze or leaf do 40 

dOf more than ten printings and bronze or leaf do 80 

Class IX.— Wood, etc. 

Glass IX, "Wood and other vegetable materials employed in industry, 
and articles manufactured therewith," represents in value of imports 
$2,054,057.57 worth of merchandise in 1895. This is a most important 
schedule for both the lumber interests of the United States and those 
engaged in various Cuban industries, especially agriculture. Houses 
must be built immediately in Cuba for the population who were driven 
from their homes by the order of General Weyler and are now huddled 
in the vilest kind of huts in the vicinity of the towns and cities. Hun- 
dreds of thousands of these people have undoubtedly perished of ex- 
posure and starvation, but the first thing necessary after the supplies 
of cheap food are available will be to remove as far as possible the 
impediments to the supply of cheap lumber for rebuilding what has 
been destroyed by the war. In the testimony of Mr. Louis Ponvert, 
taken at Hormigaero September 20, that gentleman, who has spent his 
life in Cuba, and who has done much for the comfort and welfare of 
those employed on his plantation, says: 

One thing we need is cheap lumber. Onr lumber oomes from Pensacola, Mobile, 
etc., and is jgenerally of the poorest quality, and they charge us from $20 to $30 per 
1,000 feet. The poorer classes can not afford this, and they have to build their homes 
out of sheaves of palm and leaves. It demoralizes a people to live in these huts, 
instead of living decently. 

Hardware should also have a lower duty. I have here an invoice of ordinary 
things, such as wire, nails, oil, etc., the value of which was $416.45, upon which I 
had to pay $234.84 duty. 

A glance at the exhibit showing the old rate tbr all imports except 
Spanish, and the new rate for all imports as adopted by our Govern- 
ment for Cuban ports in the possession of the TTnited States, will show 
that the rates of duties in group 1 in the schedule under discussion 
have not been changed at all, because the Spanish rates were identical 
with the rates exacted f^om other countries. Yet in this group we find 
the class of lumber used for building. In the next group, 2, in some 
items, the tariff adopted by the United States reduced the rates of duty, 
notably on joiners' work, nearly 79 per cent. In view of these inequali- 
ties, it has been decided to make a uniform reduction of about 50 per 
cent on the entire schedule. 

Class X.— Animals, etc. 

Class X, ^Animals and animal wastes employed in industry," is an 
important schedule in the Cuban tariff, the imports in 1895 aggregating 
$3,880,209.64. It is unnecessary to say that the revenue from this 
schedule will be seriously reduced in consequence of the wise decision 
of the President to practically admit cattle for all purposes into Cuba 
free of duty for the present. The reasons for this radical action in regard 
to cattle have been fully discussed in a report to follow this^ and 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA, 27 

it is not necessary to refer to them here. While the minimum-cohiinn 
rate adopted by the United States reduced the duty on some food 
products, notably flour, two-thirds, it made no change whatever in this 
schedule, the rates exacted under it being precisely the same as the 
old rate for all imports, Spanish or foreign. 

For this reason, if for no other, immediate action was demanded of the 
Prewdent, because, until his order for the free admission of cattle into 
Cuban ports in the possession of the United States was made, the peo- 
ple of Ouba in these ports were paying, in consequence of the difference 
in currency, a higher rate of duty on the entire group 1, animals, of 
this schedule than had been exacted by Spain prior to the enforcement 
at Havana and other ports in possession of Spain of the additional 
" war tax.^ The proposed tariff makes a nominal charge of $1 per head 
on all imported cattle in lieu of the tax heretofore exacted by the 
Spanish Government for slaughtering the animals when used as food. 
The experience in Santiago Province where the original order for free 
admission of cattle has been carried into effect indicates that this tax 
can be more easily collected in the manner prescribed than by farming 
it out as the Spanish did to companies whose emissaries harassed 
planters in its collection. Those administering the law at Santiago 
are strongly in favor of collecting this tax through the customs depart- 
ment, and the revenue necessities of the situation make it inadvisable 
to abandon all revenue from this source. The duty on other animals, 
sncli as horses, mules, pigs, sheep, etc., have also been reduced to a 
nominal rate. 

The next group in this schedule (2), '< Hides, skins, and leather wares,'' 
would seem to be satisfactory; the average reduction of duty between 
the old rate for all imports except Spanish and the new rate for all 
imx)orts adopted by the United States is 61.8 per cent. As some of the 
articles are of prime necessity and it has not been considered advisable 
to increase the rate much when the difference in currency is taken into 
consideration, it really amounts to about 50 per cent reduction. 

Glass XI.— Instruments, Maohinebt, etc. 

In Class XI, "Instruments, machinery, and apparatus employed in 
agriculture, industry, and locomotion,'' the imports in 1895 were only 
$2,123,315.43. This schedule, if arranged on sound business principles, 
should, in the opinion of your Commissioner, be one of the most impor- 
tant schedules of the Cuban tariff. As it stands to-day, or rather as 
enforced in Cuban ports in the possession of the United States, it not 
only greatly adds to the burdens of Cuban producers, but in the enor- 
mously high rate of duties, together with the absurd method of levying 
these duties — by the 100 kilos, on the broadest kinds of classification, 
classifications which might include a sewing machine and a trip ham- 
mer« the duty on both to be assessed at the same rate per 100 kilos — ^is 
manifestly both absurd and unjust. 

In this schedule sections 235a and 235&, << wat<ches of gold and silver 
or other metals, and chronometers;" 239, '< machinery and apparatus for 
making sugar and brandy f 240, ^< agricultural machinery and apparatus ;" 
241, ^'steam motors;" 242, ^<marine engines, steam pumps, hydraulic, 
petroleum, gas, and hot-air or compressed- air motors;" 243, "boilers;" 
244, "locomotives and traction engines;" 245, " turntables, trucks, and 
carts for transshipments, hydraulic cranes and columns;" 248, "sewing 
machines and detached parts thereof ;" 252, "railway carriages of all 
kindS; for passengers, and finished wooden parts for same;" 253, "vans, 



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28 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

trucks, and cars of all kinds, miners' trolleys, and finislied wooden parts 
for same;" 254, "tramway carriages of all kinds and finislied wooden 
parts for same ; " 255, *< wagons, carts and handcarts 5 " and 258, " salvage 
from wrecked vessels,'' remain unchanged and have practically the 
rate of duty which Spain exacted from foreign countries. All these 
articles have received special attention. 

A large amount of testimony was taken by- your commissioner in 
Oienftiegos, Havana, and New York on this schedule. There are 
many Cuban planters who strongly advocate the free admission into 
Cuba of all agricultural machinery and apparatus of all kinds, including 
locomotives. There will also be found statements and testimony from 
manufacturers in the United States suggesting a very low rate of duty 
on these articles. In the opinion of your commissioner, the fair and 
just way to adjust this schedule would be to take, as it were, a middle 
ground. In the first place, the President has already issued an order 
admitting agricultural implements, including plows, hoes, and machetes, 
cane knives, etc., for agricultural purposes, free of duty. In the order 
the President distinctly says "not agricultural machinery," believing 
that this machinery will be purchased by those who have sufficient capi- 
tal to protect their interests in Cuba and to rebuild and repair their 
large sugar fact/ories. It would seem that for the Cuban planter to 
advocate the free admission of machinery into Cuba would be a short- 
sighted policy. 

There is in Havana a good technical school, which prepares every year 
200 or 300 boys for mechanical pursuits, and scattered over the island 
are several machine shops, which are clearly of advantage to those 
engaged in producing sugar and in transportation, and, in fact, in all 
lines of industry where repairs are necessary. One of the witnesses 
who appeared before your Commissioner calls attention to the fact that 
the wear and tear on sugar machinery are very great, and that it would 
be far better for Cuba to be able to do its own repairing, without send- 
ing the heavy machinery back to the United States. It would seem 
that it would be fair to consider these facts in connection with this 
schedule. The free admission of machinery would mean the wiping 
out of these machine shops, and while it might be of small immediate 
benefit to those owning large sugar centrals, it is impossible to see in 
such a policy permanent benefit to the country. Above all things 
Cuba needs diversified industries, and it is impossible to hope for any 
permanent industrial reconstruction if the first visible signs of its 
industries are to be thus destroyed, as they certainly would be, so far 
as the manufactures of metals are concerned, if machinery of all sorts 
was admitted free of duty. 

Another consideration in relation to this schedule is the necessity of 
securing some revenue from it. It has been shown that not over 10 
per cent of the taxes on rural property, which includes sugar estates, 
was collected last year, and it is extremely doubtful if anything is 
realized from this source. In fact it may be decided that for a period 
of years this source of taxation shall be abandoned. If this remission 
of land taxes is made, it would seem reasonable that instruments, 
machinery, and apparatus employed in agriculture other than agricul- 
tural implements, should pay a reasonable rat« of duty, and thereby 
help to support the Government. Many of the same gentlemen who 
advocated free admission of all kinds of machinery other than that 
used in locomotion are likely to require of the military authorities of 
the new government protection for their estates, and this protection 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 29 

can only be accorded by securing suflacient revenue from the customs 
to pay the expenses of the civil guards or whatever force may be decided 
upon for this purpose. 

As Schedule XI stands to-day it has been reduced in spots, whereas 
in 16 sections it stands practically the same as the old Spanish tariff. 
These sections cover many immediate needs, such as machinery and 
apparatus for making sugar, motors, boilers, locomotives, traction 
engines, turntables and trucks, railway carriages, and sewing machines, 
trains, vessels, etc. Omitting these sections, the general reduction of 
the schedule was about 60 per cent. It is almost impossible to figure 
with any degree of accuracy the average ad valorem of this rate, 
because the method of weighing articles introduces all sorts of uncer- 
tainties into this schedule. It is therefore suggest.ed that the specific 
rates of duty charged in this schedule be all changed for ad valorem; 
that the rate to be collected on group 1 (instruments, which include 
watches, and articles of luxury) and group 3 (carriages) shall bo 40 per 
cent; on g^oup 2 (apparatus and machines) when used in the manufac- 
ture of sugar, 10 per cent, and when used for other purposes 20 per cent 
ad valorem. Such an arrangement will at once abolish the inequalities 
pointed out in the 16 sections in which the old Spanish rate is still 
retained, and at the same time simplify the administration of the law« 

It would seem to your commissioner that with efficient and honest 
American administration of the custom-houses, which the United States 
Government has obliged itself to give to Cuba, there should be no 
trouble in having correct invoices for all articles included in the several 
groups of this schedule. Another advantage is, it would give a reason- 
able rate of duty both for the sugar factories and for the railway com- 
panies of the island, which are anxious to purchase new material and 
assure your commissioner that with a reasonable rate of duty it will be 
purchased in the United States. Under existing conditions it is almost 
impossible for the railways of Cuba, which have been, in common with 
all other forms of industry, destroyed in a large measure— that is to say, 
the stations have been burned, the bridges torn down, the tracks torn 
up, the freight cars converted into peripatetic block houses and gen- 
erally devastated — to replace their rolling stock, rebuild their bridges, 
depots, etc., relay their tracks, and resume the business of transporta- 
tion. Under the present t>ariff exacted in Santiago and other ports in 
possession of the United States, the duty on railway material is very 
excessive, as will be seen from the following samples: 

Per ton. 

Section 33. Iron and steel rails $8.50 

Section 36. Wheels and axles 12.00 

Section 39. Bridgework 18.00 

Section 44. Bolts, nnts, and washers '. 10.00 

Section 64. Copper, articles not mentioned 20. 00 

Section 244. Locomotives 46.00 

Section 245. TarntaMes 15.00 

Section 255. Wagons 38.00 

A good locomotive will weigh 70 tons. It will be manifest that an 
ad valorem rate will better relieve these industries and enable them to 
parchase of the United States several million dollars worth of needed 
new machinery and supplies to put their railways in good condition 
again. In changing the method of collecting the duties of this sched- 
ule from specific to ad valorem all classifications discriminating as to 
the use of certain articles should be abolished. Tbis practice results 
ia endless corruption. For example, when witnesses testify to the fact 



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30 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

that the duty on railway equipment for use exclusively on sugar plan- 
tations is very much smaller than on the same equipment destined to 
ordinary railroad use. . On the shipment especially referred to the duty 
tbr plantation use amounted to $2,000 or $3,000; for ordinary railroad 
use, $8,000 to $10,000. Your Commissioner quotes from a witness: 

The oastom-hoase official at the port where this merchandise was landed stated 
that he was ohliged to enter the locomotive and cars as being for ffeneral railroad 
Qse; that the owner would have to pay $10,000 down in cash, and might take steps 
to try and get a refond later on ; but that if the sum of $800 was paid to him he 
would at once enter the equipment as being for plantation uses, and there would be 
only two or three thousand dollars duty to be paid. 

The witness thus concludes this story of corruption: "He got his 
$800.^^ 

There is no reason why the large sugar centrals — and only large con- 
cerns have their own railways — should pay a less rate of duty on loco- 
motives and railway supplies than the railway companies themselves. 
It is believed the reduction of duty on machinery used in the manu- 
facture of sugar to 10 per cent ad valorem will meet the requirements of 
the case and aid in the reconstruction of the smaller sugar plantations. 

Class XII.— Meat, Fish, Butteb, and Greases. 

The most important schedule or class of the Cuban tariff is Class XII, 
"Alimentary substances.'' There were imported into Cuba in 1895 $31,- 
179,389.98 worth of merchandise under this schedule, an amount slightly 
exceeding half of the imports of merchandise into the island for that 
period. The tariff policy of Spain seems to have been the reverse of 
the policy adopted by the United States in the framing of its several 
tariffs, namely, the lowest possible rates of duty on all articles of gen- 
eral consumption and higher rates on articles of luxury. Spain re^E^- 
ized that the people of Cuba must have food, and, as that island con- 
sumed large quantities of food which was not produced to advantage 
in the island, a tariff was levied with a view of compelling the people of 
Cuba to pay an exacting and burdensome revenue upon articles of daily 
consumption. 

The reductions made by adopting the "minimum rate'' of duty in 
this schedule were large, averaging 61.5 per cent. If these compaii- 
sons were made with the present rate in force on nearly all the products 
imported into Cuban ports in the possession of the Spanish Gk>vern- 
meut, the reduction would be at least two-thirds, and in some cases 75 
per cent. It will be seen, therefore, that the adoption of the tariff in 
force in Santiago, to say nothing of the subsequent admission by order 
of the President, October 8, of cattle free of duty, was an immediate 
and great relief to the starving population of the island. Notwith- 
standing this sweeping reduction, the schedule as adopted contained 
many high rates, many classifications which failed to discriminate in 
the value of the provisions, thus exacting the same amount of duty 
from articles of provisions worth 10 cents a pound as from articles worth 
25 or 30 cents a pound. On the other hand, there are some articles in 
this schedule, such as wines, spirits, and beer, in which the duty Spain 
arranged for her own commodities was so low and the discriminating 
duty against foreign countries so high that the adoption of this schedule 
by the United States has resulted in the discovery of many discrep- 
ancies which your commissioner, aided by the testimony and statements 
made, has attempted to correct. Note the following from the testimony 
of Mr. Fran Figueras : 

In regard to alcoliolio beverages, winee, liquors, beer, and cider, classified under 
articles 283 to 289, inclusive, I must observe that the reductions made in their favor 



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^,v 



COMIIEROIAL AND INDU8TRUL CONDITION OF CUBA, 31 

tfe 80 large that they must be considered unnecessary and even dangerous. Talcing 
bottled beer as an example, I calculated two liqnldations of this article, one accord- 
ing to the Spanish and one according to the proposed Auici lean tariff law : 

Article 288. 100 liters, $6.30 and $1.40; total, $7.70 $7,700 

Article 191. Duty on wooden cask, 15 kilos, at $1.60 240 

Article 10. About 30 kUos of botties, $2 and $0.80, $2.80 690 

8.630 
$lper 1,000 kilos tax of unloading on 145 kilos, per pound 145 

8.775 
20 per eent additional tax 1.755 

10.530 

It must also pay the beyerage tax of 10^ cents per liter $10. 50 

90 per eent additional tax 2.10 

12.600 

23.130 

These $23.13 are paid in the following manner: 

20per cent in silyer, $4,625, at 66 per cent 3.052 

80 per cent in gold, $4.625 18.505 

Then 10 per cent on $21. value of 100 pounds, $2.10, at 10 per cent 210 

21.767 
American duty 1.400 

Reduction 20.367 

Now, this immense reduction, wliioh is about the same for all the other beverages, 
is in favor of an article of luxury, while articles of first necessity only have a right 
to eigoy a fairly well balanced tariff. 

In the interest of a fairly well balanced tariff, it is recommended that 
the redactions made on these articles, which range from 41 to 81 per 
cent, shall be rescinded and a reduction (if any redaction is thoaght 
necessary) of about 25 per cent be made for the entire groap 6, with 
the exception of olive oil. It will be noted iu the above extract from 
an invoice that there is a very heavy consamption tax in connection 
with the admission of liqaor into Gnba. It is not possible to report at 
this time on the advisability of the retention of this tax, bat if it is 
not retained the rate of daty on these commodities, if reduced 25 per 
cent, would not seem to be unreasonable. 

The Santiago schedule, so far as it relates to foods, seems to be satis- 
factory, as note the following from an exporter of flour, John Boyd, jr.: 

In reply to your communication of the 14th instant, we beg to say that we are only 
interestea in flour for export, and consider the duty of $1.50 per sack of 200 pounds, 
in Cuba, on this product beneficial to the trade and low enough for aU purposes. 
It will give our country a monopoly of this article, furnish quite an income for the 
new government to be established, and make attempts at smuggling or evasion of 
duties unprofitable and unlikely. 

On the other hand there have been some requests, but nothing like 
so formidable as those relating to cattle and agricultural implements, 
asking for the free admission of provisions. These statements and 
communicatioDS have generally been from persons who have not given 
the subject of the Guban tariff much attention, and who do not realize 
that over half the imports of that country are from this schedule. 
Considerable more than half, if we include Class X, under which live 
animals for food are imported, and which aggregated $3,880,209.64, 
making, together with Class XII, a total of over $35,000,000. For this 
reason it would be impossible to follow these suggestions. It has, how- 
ever, been possible to so tecoustruct the food schedule as to make it 



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Q.S 



32 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

more equitable in its classification and to eradicate, so far as possible, 
serious discrepancies in rates. Below will be found one or two criti- 
cisms which your commissioner found to be just and all of which have 
been corrected. The representative of the Armour Packing Company 
siftys: 

Referring to the Santiago tariff, the duty is too high npon pork and lard (section 
261). Instead of being $6.30 per 100 kilos^ it shonld only pay abont $3 per 100 kilos, 
because you can bay lard for 5 cents a pound in the United States and the duty upon it 
is about 3 cents. If this reduction is made, there will be a great importation of lard. 

Again, from the same authority: 

Salt meat and anything that has a valuation of 5 or 6 cents a pound should not 
pdy more than $3 or $4 per 100 kilos. Hams and breakfast bacon could stand more 
than lard. There are ten different classifications for meat. I think that hams, 
breakfast bacon, and what you might caU a finer class of packins-house products 
should stand more duty than a common product, such as pickled goods, dry salt, 
lard, greases, etc. 

The following, from Libby, McNeill & Libby, indicates another class 
of goods which should be properly classified and bear a low rate of 
duty : 

We should like to have yon do your utmost in the interest of making the duty on 
beef and pork products packed in barrels and cans as low as possible in Cuba. Up 
to four or five years ago we sold quite a lot of canned meats in Cuba, but Uie duty 
was raised so that it stopped our shipping altogether. 

Louis N. Ohemidlin, of New York, referring to the provision schedule, 
says: 

In looking over the schedule of alimentary substances we note paragraph 261, cov- 
ering pork and lard, including bacon (and which we also presume covers ham and 
other smoked meats, as we do not see them mentioned elsewhere in the tariff) ; we 
note that you propose to charge $6.30 per 100 kilos : this, if ^our proposed duties are 
to be paid in silver dollars, is not excessive. At the same time we would call your 
attention that it is a higher rate than any other that you mention in this schedule, 
and as pork and its products are much cheaper than beef and other meats, we cer- 
tainly ao not think it should pay a higher rate of duty. We also note that butter 
is to pay 4.40 pesos per 100 kilos, and as butter is certainly worth in this market 
three times as much as pure lard, we certainly think it should pay a relatively 
higher import duty. 

The above extracts are only samples of many letters and statements 
received. The only possible way to improve this classification was by 
practically framing a new schedule and endeavoring to make the rate 
of duty, though specifically levied, average about 25 per cent ad valorem. 
Under this, instead of having two classifications, beef (brine or salt) 
and pork at $2.78 per 100 quintals, and bacon, ham, and lard at $5.83, 
we have five classifications, making: 

Beef (brine or salt) $2.80 

Pork 2.80 

Bacon 4.00 

Ham 5.50 

Lard 2.80 

It will be noted that beside the very considerable reductions Ifrom the 
old Spanish tariff are some reductions from the Santiago rate, but they 
are levied in such a way that the value of the article is taken into con- 
sideration. 

The increased rate on spirituous, vinous, and malt liquors, it is 
believed, will make an improvement in this schedule which would be 
beneficial alike to the importers and to the Cuban consumers. At any 
rate, outside of wines and liquors, the Cuban consumer will know that 
on this immediate schedule he is not paying, with a few exceptions, 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 33 

over 25 per cent ad valorem — in some cases the duties being slightly 
less, and only in one or two exceptional cases, where a reduction from 
a very large Spanish rate — ^namely, flour — does it pay over 25 per cent 
ad valorem. 

Two interesting communications in connection with this schedule will 
be foand in the appendix, one from Mr. Trelles, of Oienfuegos, who 
strongly arges, for reasons which seem to be satisfactory, that there 
shall be no further reduction in the item of jerked beef; the other from 
Mr. Jesus Cowley, of Havana, who thinks that with free olive oil he 
could build up an important manufacturing industry. Crude olive oil 
has therefore been made free and no reduction has been made in the 
case of jerked beef, as it is believed that the arguments submitted by 
Mr. Trelles are worthy of consideration. The admission of cattle at a 
nominal rate of duty into Cuban ports in the possession of the United 
States places at the disposal of the people of that island cheap food 
from Mexico and South America. This, together with large reductions 
in duty on flour and other necessaries, not only gives the people of 
Cuba cheap food, but gives them the best food for recuperative pur- 
poses. It is estimated that the importation of 800,000 quintals of jerked 
beef displaces an enormous amount of stock that would otherwise be 
raised in the market. ' 

In the fields of Cuba can be raised, almost without the aid of man- 
kind, as Mr. Trelles says, cattle to take the place of this jerked beef, 
which is dry and salt and the consumption of which requires the use of 
enormous quantities of water, on account of the thirst which it pro- 
duces, and brings with it anemia to the population. It is estimated 
that Cuba could economize by raising its own beef from six to seven 
million dollars every year. Added to this the country would produce 
from 700,000 to 800,000 hides, as well as the tallow, hair, horns, hoofs, 
etc, which would give the basis for several industries. It is estimated 
that if Cuba would take up its own cattle farms, from 300,000 to 400,000 
caballerias of land (cabaUeria, 33 acres) could be used. Each of these 
cattle farms would ftirnish wood, honey, bees^ butter, cheese, vegetables, 
corn, and a thousand lesser products, including, of course, some tobacco 
and sugar cane. 

Thus employment could be found for several hundred thousand 
Cuban families in lighter farming than the exclusive raising of sugar 
cane. The climate, being tropical, requires that meat be used fresh, 
and by the million and a half inhabitants, says Mr. Trelles, there should 
be consumed at least one-half pound each, say 5,000 quintals, per diem. 
This gentleman estimates that the importation of jerked beef displaces 
700,000 head of cattle. It is difficult to read this testimony without 
being impressed with the fact that the great benefits arising from the 
President's order admitting cattle free of duty would be neutralized by 
the free admission or the further reduction of the duty on jerked beef. 
Mr. Trelles, it will be noted, requests a higher rate of duty, but as the 
rate adopted in the Santiago tariff is substantially the Spanish rate — 
namely, $3.96 — it has been thought advisable to leave it as it is. 

In view of the fact that Cuba a generation ago exported 100,000,000 
pounds of coffee, and that it produces a very fine grade of this impor- 
tant article, it has been deemed advisable to restore the duty on coffee to 
the maximum Spanish rate. This shoiHd have a tendency to encourage 
coffee production in Cuba. Natives, especially Cubans living in the 
agricultural districts, as a rule use the coffee produced in the country. 
8753 3 



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34 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Class XIII.— Miscellaneous. 

Under Class XIII, "Miscellaneous goods," $1,116,156.61 worth of 
goods were imported into Cuba during 1895. No complaints or sug- 
gestions have been received that would seem to warrant any changes, 
and the schedule is left as adopted in the Santiago tariff 

Glass XIV.— Tobacco. 

Tobacco, however, the importation of which was prohibited under 
the Spanish tariff, has been taken out of Schedule XIII, as its impor- 
tance would seem to demand separate classification. The duty on 
tobacco as provided by the law of August 8, 1898, for i)orts in Cuba in 
possession of the United States was altogether too low to prevent the 
importation into Cuba of inferior grades of tobacco and its reexporta- 
tion as ** Cuban to"bacco.'^ The proposed tariff largely increases the 
rate and it is believed will effectually prevent any dishonest practices 
of this kind. A large amount of testimony and many valuable state- 
ments from the tobacco and cigar industries of Cuba will be found in 
the appendix to this report. Together they comprise a full treatise on 
this, the second great Cuban industry. The question of export duty 
on Cuban tobacco is also one of considerable importance to the planter 
and has been carefully considered. Export duties are un-American and 
against the general policy of the United States, and if it were not for 
the necessity of revenue a flat recommendation for their total abolition 
would be made. Under present conditions the export duty has been 
reduced more than two-thirds on Havana tobacco, and as an expediency 
measure it is hoped this will meet the views of the Cuban planters. 

AU of which is respectfully submitted. 

BoBBBT P. POBTBB, Commissioner. 

Hon. Lyman J. Ct-a^gb, 

Secretary of the Treasury j Washington^ 2>. 0. 

NOYBMBEB 15, 3898. 

EXHIBFT. 

Tariff Mchedulea ofoustoms duties for porU in Ct^ha, ihawing the rate impoeed 5y the Spaniek 
for goode entering Cuba from other oountriee than Spain, the rate adopted by the United 
Statee on Auguet 8, 1898, for porta in Cuba in the poB$ei$ion of the United Statee, the 
percentage of reduction made by the lattw rate, and the ratepropoeed in the reoommmda- 
tione of which thi$ ie an exhibit. 



Class I.--Stonk8, babths, orbs, glass, and cbbamio 

PBODUOTS. 

Gboxtp l,—SU>nstand4artht employed in buiiding, art$y and 
mantifaeturee. 

I Ifarblo, jasper, and alabastor: 

•. In tho rough or in dressed pieces, squared or pre- 
pared for shaping, G. W 100 kilos.. 

b. Slabs, plates, or steps of any dimension, polished or 
not,Q.W 100 kilos.. 

*TMs does not Inelade addlttonal datles of 10 per sent and proTiilonal dtttlei lerted as *'war 
taxes** slsce sffBlnf of protoeoL 



Old rate 
foraU 

im- 
ports, 
except 
Span- 
ish.* 



origt- 

nally 

adopted 

by 
United 
States 
foraU 

im- 
poru. 



P§»o§. 
0.90 



2.60 



P$90t. 

0.60 



LOO 



Per- 
centage 

of 
redno 

tion. 



44.4 

00 



Proposed 
rate. 



DoOarM. 

0.50 



1.00 



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COMMESCIAIi AND INDUSTRIAL CONDITION OP CUBA. 



35 



Tariff 9chedule8 ofouaioiM duties for porta in CubOf etc.— Cont'maed. 



Old rate 
for all 

inn* 
porta, 
except 
Span- 
iah.* 



Class I.— Stonvs, babths, obes, glass, and oebaxio 
PBODUCTS— Con t in ned . 

Gboup 1. — Stones and earthg employed in building, arts, and 
maMnfactures-Ajoniianed. 

1 Marbki, Jasper, and alabaster— Conthined. 

e. Senlptorea, high and bas-reliefs, Tsses, nms, and 

•unilar articles for house decorations . . 100 kilos . . 

d. Wrought or chisled into all other articles, polished 

or not, T 100 kilos. 

t Stones, other, natural or artificial: 

a. Unwrought, G.W 100 kilos. 

h. Slabs, plates, or steps, 6. W do... 

s. Wrought into all other articles, T do 

I Earths employed in manufactures and arts: Cement, lime, 

and gypsum, O. W 100 kilos. 

4 Oypsom manufactured into articles: 

a. Statuettes,T 100 kilos.. 

6. Articles, other, T do.... 

Gboup 3.^8ehists, bitumens, and their derivatives. 

6 Tar and mineral pitch, asphalts, bitumens, and schists, G. 

W 100 kilos.. 

7 Oleonaphtha, crude natural petroleum, and crude oila de- 

rived from schists, G. W 100 kilos.. 

«. Crude petroleum, to be used exclusively in the man- 
nfaoture of iUuminating gas and only at gas 
-works in Cuba, said eas works to be subieot to 
inspection by the customs authorities, and to be 
used for no other purpose, provided that the 
importer gives such bond as maybe regarded nec- 
essary by the acting collector. G. W ... 100 kilos . . 
i Petroleum and other mineral oils, reotifled or refined, des- 
tined to illumination; benzine, gasoline, and 
mineral oils not specially mentioned; vsAeline, 

G. W 100 kilos.. 

•. A product from petroleum known under the name of 
cordage oil, imported by and used excluAively 
for cordage works in their manufacture of rope 
and cordage, provided that the importation oe 
made at the direct demand of the pre»ident of 
the cordage oompany, and that the latter sub- 
mit their works at au times to the inspection of 
tiie customs authorities and that the importer 
girt such bond as may be regarded necessary by 
the acting collector, G.W 100 kflos.. 



Gboup Ay—Ores. 
t Ores, G.W 100 kilos.. 

Gboup ^—(hystals and glass. 

10 CoauDon or ordinary hollow glassware ; electric insulators, 

T. (common bottles of glass or earthenware in- 
tended to contain beer, rum, and sparkling wines, 
manufactured with native fruit, and garrafones 
or demijohns and syphons to contain mineral, 
carbonated, or seltzer waters, shall ei\Joy a re- 
bate of sixty per cent of the duties stipulated in 
this number when imported and declu*ed in the 
custom-house by the manufacturers of said bev- 
erages) 100 kilos.. 

11 Crystal, and glass imitating crystal : 

s. Articles, cut, engraved, or gilt, T do — 

b. Artielas, other, f do. 



Rate 
origi- 
nally 
adopted 

by 
United 
States 
for all 

im- 
ports. 



Pesos. 
6.80 

4.00 

.40 
1.50 
2.60 

1.10 

8.00 
2.00 



1.10 
3.08 



5.20 



.20 



2.80 



28.00 
14.00 



Per- 
centage 

of 
reduc- 
tion. 



Pesos. 
3.10 

2.00 

.20 
.50 
1.00 

.60 

3.00 
.75 



1.10 
3.08 



5.20 



.20 



.30 



10.00 
5.40 



46.6 

50 

60 

00.6 

61.5 

45.5 

62.5 
62.5 



87 



04.3 
63.8 



Proposed 
rate. 



Dollars. 



.10 
2.00 

Free. 

.50 
LOU 

.60 

8.00 
.75 



.60 
1.40 



.70 



4.70 



2.35 



.10 



1.00 



14.00 
7.00 



* lUs itss BSt iBcUde addlttoual dstlsi of 10 per cent and proTlslonal duties leriod av 
tsxst** ilBes ilgBiBf of frotoeoL 



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36 



COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



Tariff schedules of cuetome duties for ports in Cuba, efc— Continued. 



Kate 
Old rate J'Jifl; 

?P.*°- foraU 
im- 
ports. 



Class I.— Stones, earths, obes, glass, and cebamic pbod- 
UCTS — Con tinned. 

Gboup 5.^0rystals and glass— Continued. 

12 Plate glass and crystal : 

a. Slabs for paving and roofing, T 100 kilos.. 

b. Por windows or in other articles, provided they 

be neither polished, beveled, engraved, nor an- 
nealed, T 100 kilos.. 

e. Window glass set in lead and polished, or beveled 
plate glass, T 100 kilos. 

d. Articles engraved or annealed, T do — 

13 Glass and crystal tinned, silvered, or coated with other 

metals: 

a. Common mirrors not exceeding 2 mm. in thickness, 

covered with red or dark mercurial varnish. T, 
100 kilos.. 

b. Mirrors, other, not beveled, T do — 

e. Mirrors, beveled, T do.... 

14 Glass and crvstal in stataettee, flower stands nnd vases, 

ana similar articles for toilet purposes and house 
decoration ; spectacle and wateh glasses, imita- 
tions of precious or fine stones ; eniunel, T . k ilos . . 

15 Incandescent electric lamps, mounted or not hundred. . 

16 Tiles, bricks and roofing tiles of cUy, not glazed, for 

building purposes, ftimaces, ete., articles of fire 

cUy, G.W 100 kilos.. 

Proposed elasslfleation to replace paragraph 16 : 

Bricks of clajy not glased, for bntidiBg parposes, 
fkiniaees, etc., artteles of lire elar, O. W., 

100 kilos :. :, 

Booflng tiles of elaj, not glased, for building pur- 
poses, per square (lObjlOfeet) 

17 Slabs, tiles, ceramic tUes, glazed roofing tiles, or oonduiU, 

of clay, cement^ or stoneware, G. W..100 kilos.. 
Proposed elasslfleatloB to replsce paragrspli 17: 

Blabs or conduits of elar, glased or unglaKed, ce- 
ment or stoneware, CT. W .100 kilos. . 

Ceramic tiles of all kuds and glased roofing tiles, 
persouare (10 bj lOf^t) 

18 Hollow ware, glazed or not, of day or stoneware: 

a. Household and kitehen utensils. T 100 kilos. . 

b» Dishes or other articles, provided that they be 

neither gilt, painted, nor ornamented in relief, 
T (common bottles of earthenware, to contain 
beer, eto., are provided for under paragraph 10) 

100 kilos.. 

s. Articles, gilt, painted, or ornamented in relief, 

T 100 kilos-. 

10 Hollow ware or dishes of faience: 

«. Neither painted, gilt, nor in relief, T do 

b. Gilt, painted, or with omamento in relief; T..do 

20 Hollow ware or disnes of porcelain : 

a. Neither painted, gilt, nor in relief, T do. . 

b. Painted, gilt, or with omamente in relief, T. .do 

21 Statuettes, flower stands, and vases, high and bas-reliefs, 

articles for toilet purposes ana house decoration, 
of flne clay, faience, stoneware, porcelain, or 
bisque, T kllog.. 

Class n.— Metals and all manufactubbs in which metal 

ENTEBS AS A PBINCIPAL ELEMENT. 

Gboup 1.— Gold, silver, and platinum, and aUoys of these metals. 

22 Gold and platinum in Jewelry or goldsmiths' war^s, with 

or without precious stones or pearls; Jewelry or 
wares of silver, with precious stones, pearls, and 
see<l pearls, not set, N. W hectogram. . 

23 Gold or platinum wrought in articles, other, of all kinds, 

K.W hectogram.. 



Pesos. 
3.30 



6.80 



0.80 
19.60 



20.00 
30.00 
36.00 



1.15 
3.00 



1.00 



1.50 



2.00 



13.85 
14.50 



8.85 
16.00 



14.50 
23.35 



.47 



7.60 
2.80 



Per- 
centage 

of 
reduc- 
tion. 



Peson. 
L65 



8.40 



4.00 
8.00 



8.00 
12.50 
15.00 



.55 
3.00 



.80 



.50 



.75 



8.00 
4.00 



3.00 
4.50 



4.00 
5.00 



.12 



7.50 
2.80 



50 



50 



59.2 
69.2 



58.3 
58.3 



52.2 



70 



66.6 



62.5 



78.3 
72.4 



66.1 
71.9 



72.4 
78.6 



74.5 



Proposed 
rate. 



Dollars. 

L65 



8.40 



4.90 
0.80 



10.00 
15.00 
18.00 



.56 
2.60 



.SO 
1.60 



.60 
8.60 



6.50 
6.60 



8.50 
6.40 



6.80 
0.30 



.25 



7.60 
2.80 



*Tlils does not Inclade additional duties of 10 per cent and proTlsloBsl dalles lerled as 
taxes*' since signing of protocol. 



Digiti 



ized by Google 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



37 



Tariff sdiedulea ofcuatonn duties for ports i?» Cuba, etc. — Contiuned. 







Rate 








Old rate 
foraU 

im- 
ports, 
except 
Span- 
ish.* 


oriri. 

nally 

adopted 

United 
States 
foraU 

im- 
ports. 


Per 

centage 
of 

reduc- 
tion. 


Propo-^cd 
rate. 


Cuias IL— Metals A:n> all manufactures in which mbtal 










■NTBB8 AS A PBINCIPAL BLBMBNT— Ck)ntinued. 


. 








Gboup 1.— Gold, Hlver, andvlatinum, and alloys of these 
iiMtalf—Continaed. 










24 SOver, in ingots, bars, plates, sheets, or powder, K. W., 


Pesok. 


Pesos. 




Dollars, 


kUos 


2.60 


2.60 




2.00 


25 Jewelry or wares of silver, witboat precions stones or 










pearls, N.W hectogram.. 


1.50 


1.50 




1.5o 


20 SilTeramitbs' wares, other, of all kinds, and platinum in 
ingots, nTw kilos.. 










8.00 


8.00 




8.00 


J7 PUte,N.W do... 


2.40 


1.20 


'"ib"' 


2.40 


Group 2.— Oast iron. 










28 Pigs.G.W 100 kilos.. 


.50 


.20 


60 


.10 


29 Articles not coated or ornamented with another metal or 










porcelain, neither polished nor turned : 










a. Bars, beams, plates, gratesforfumaoes,cohimn«.nnd 

pipes,G. W lu ilos.. 

b. Labricating boxes for railway trucks and can iuges 










1.20 


.60 


50 


.50 










and railway chairs, G. W 100 kilos.. 


.75 


.75 




.35 


e. Articles, other, G.W do.... 


2.25 


.75 


"■*66.*6' 


.75 


30 Articles of all kinds not coated or ornamented with an- 










other metal or porcelain, polished or tumetl, T, 










100 kilos 


3.60 


1.20 


66.6 


1.20 


31 Articles of all kinds, enameled, gilt, tinned, or coated or 




ornamented with other metals or porcelain, T, 










100 kilos :. 


5.80 


1.80 


60 


2.30 


Group Z.^Wrought iron and steel. 




32 Iron, soft or wrought, in ingots or "tochos;" steel in in- 

gots, G.W 100 kilos.. 

33 Wronchtiron or steel, rolled: 










1.00 


.40 


60 


.40 










a. Raili*,G.W do.... 


.85 


.85 




.425 


b. Bars of aU kinds, including rods, tires, hoops, and 
beams,G W 100 kilos.. 










2.40 


.00 


62.5 


.90 


c Bars of aU kinds of fine crucible steel, G. W., 










lOOkUos 


4.10 


L50 


63.4 


1.60 


84 Sheets. roUed— 










a. Keither polished nor tinned, of 8 mm. and more in 










thickness, G. W 100 kilos.. 


2.00 


1.10 


62.1 


1.10 


b. Neither polished nor tinned, of less than 3 mm. in 










thickness, and hoop iron, G. W 100 kilos. . 


8.45 


1.20 


65.2 


1.20 


«. Tinned, and tin plate, G. W do.... 


4.60 


1.60 


67.4 


1.50 


d. Polished, corrugated, perforated, cold rolled, gal- 
vanixed or not, and buids of polished hoop iron, 


















G.W 100 kilos.. 


3.90 


1.30 


66.6 


1.30 


35 Wrought iron or steel: 




Cast in pieces, in the rough, neither polished, turned, 

nor adjusted, weighing, each— 
tt. 25 kilos or more, G.W. . .7. 100 kilos.. 


















2.60 


1.00 


61.5 


1.00 


b. Less than 25 kilos, G. W do.... 


3.70 


1.35 


63.5 


1.85 


38 Cast in pieces, finished— 










a. Wheels weighing more than 100 kilos, fish plates, 










chairs, sleepers, and straight axles, springs for 
railways and tramways, lubricating boxes, G. 


















W 100 kilos.. 


1.20 


L20 




.CO 


b. Wheels weighing 100 kilos or less; springs, other 
than for railways and tramways ; bent axles and 


















cranks, G.W 100 kilos.. 


4.20 


L40 


66.6 


1.40 


37Plpes- 










o. Covered with sheet brass, G.W do 


4.15 


1.40 


66.3 


1.40 


b. Other, mdvanited or not, G. W do.... 

38 Wire, salvanUed or not— 

a. 2 mm. or more in diameter, T do.... 


8.60 


1.40 


61.1 


1.40 


3.25 


1.00 


09.2 


1.00 


b. More than | and up to 2 mm. in diameter, T . do. . . . 
e. 1 mm. or less in diameter and wire covered with 


4.05 


1.30 


67.9 


1.30 










any kind of tissue, T lOOkibw.. 


5.10 


1.60 


68.6 


1.60 


39 In Urge pieces, composed of bars or bars and sheets fas- 










tened by means of rivets or screws; the same nn- 










riveted, perforated, or cut to measure for bridges, 
frames, and other buildings, G. W 100 kilos. . 










4.00 


1.80 


55 


1.80 



'This does not Inelnde additional datlea of 10 per cent and proTlsIonal dntles levied as'^wi 
taxes" tlaee signing of protocol. j 

uigiiizea oy xjOOvIC 



38 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Tar^f schedules ofouetovM duties for porU in Cuba, etc, — Continaed. 



Old rate 
foraU 

im. 
ports, 
except 

SS5- 



Rate 

orijei- 

nafiy 

adopted 

UoUed 
States 
foraU 

im. 
ports. 



oentage 

rodaC' 
tion. 



Propos d 



Class II.— Metals and all makcjfaotxtbes in which mstal 
ENTERS AS A PBiNOiFAirBLEMBNT— Continued. 

Gboup ^.^Wrought iron and «(m(— Continued. 

40 Anchors, chains for vessels or machines, mooring, 

switches, and signal disks, G. W 100 kilos. . 

41 Wiregause: 

a. Up to 20 threads per inch. T do. 

b. or 20 threads or more per inch, T do.... 

42 Cables, fencing (barbed wire), and netting, furniture 

springs, G.W 100 kilos-. 

43 Tools and implements: 

a. Agricultural; hammers and anvils. G. W. 100 kilos., 

b. Fine, for arts, trades, and professions, of crucible 

steel. T 100 kilos. - 

fl. Other.T do... 

44 Screws, nuts, bolts, wsshers, and rivets; Parisian and 

similar tacks, T 100 kilos.. 

45 Nails, clasp nails, and brads, T do 

40 Buckles: 

a. Gilt, silvered, or nickeled, T kilog.. 

b. Other, T do... 

47 Needles, sewing or embroidering, pins, and pens; pieces 

of clock works, N.W kilog.. 

48 Crochet hooks and the like; hooks, hairpins, and surgical 

instmroente, N.W kuoj;.. 

40 Cutlery of all kinds; tailors' scissors; side arms and 
pieces for same, T kilog.. 

50 Firearms: 

o. Barrels, unflnished, for portable arms, G. W. .kilog. , 
b. Small arms, such as pistols and revolvers, also thur 

detached pieces, T kilog.. 

e. Sporting guns, muzzle-loading, and detached parts 

thereoI;T ^i^oft-- 

d. Breech-loading, and detached parts thereof, T, 

kilog 

51 Manufactures of tin plate, T 100 kilos.. 

Wrought iron or steel : 

52 Articles of all kinds not specially mentioned, common, 

even coated with lead, tin, or zinc, or painted or 
varnished: 

a. In which sheet predominates, T lOOkiloa.. 

b. In which sheet does not predominate, T do 

58 Articles of all kinds not specially mentioned, fine, i. e., 

polished, enameled, coaled with porcelain, nickel, 
or other metals (with the exception of lead, tin, 
or zinc), or with ornaments, borders, or parts of 
other metals, or combined with glass or earthen 
ware: 

a. In which sheet predominates, T 100 kilos . . 

b. In which sheet does not predominate do. . . . 

Gboup 4,— Copper, and aUoyi of common metaU with copper 
(brass, bronze, etc.). 

54 Copper scales, copper of first fusion, old copper, brass, 

etc.. G.W 100 kilos.. 

55 Copper and alloys of copper, in ingots, G. W do 

56 Kolled in bars ofaU kinds, G.W do.. 

57 Rolled in sheets, G.W do.. 

58 Wire, galvanized or not: 

a. 1 millimeter and more in diameter, T do.. 

b. Less than 1 millimeter in diameter, T do 

c. Gilt, silvered, or nickeled, T kilog.. 

60 Wire covered with tissues or insulating materials; con- 
ducting cables for electricity over public thor- 
oughfares, T 100 kilos.. 

60 Wire gauze: 

a. Up to 100 threads per inchT 100 kilos. 

b. Of 100 threads or more per inch, T kilog. 

61 Pipes, bearings, plates for fireplaces, and boiler makers* 

wares partially wrought, G. W 100 kilos . . 



Pesos. 
1.65 

6.50 
.16 

8.10 

.80 

20.00 
8.00 

4.20 
3.25 

.85 
.225 

.70 

.60 

.80 

.40 

2.00 

1.20 

6.00 
10.00 



7.40 
5.80 



8.50 
7.50 



7.00 
8.90 
11.70 
14.00 

14.50 
16.60 
1.00 



15.00 



16.60 
.35 



0.55 



Pesos. 
1.05 

2.00 
.06 

LOO 

.80 

8.00 
2.50 

LOO 
LOO 

.20 
.15 

.60 

.30 

.40 

.25 

LOO 

.60 

2.50 
8.00 



2.00 
L80 



2.50 
2.50 



3.00 
4.00 
4.50 
5.00 

4.00 

4.00 

.50 



16.00 



5.00 
.10 



0.55 



69.2 
62.5 



67.7 



60. 
68.8 

76.2 
69.2 

42.0 
83.3 

14.8 

50 

60 

87.5 

50 

50 

58.8 
72.6 



73 
68.0 



70.6 
66.6 



57.1 
55 
6L5 
64.8 

72.4 
75.0 
50 



DoUars. 

0.80 

2.00 
.06 

LOO 

Free. 

8.0O 
2.60 

L50 
LOO 

.20 
.15 

.80 

.80 

.40 

.25 

LOO 

.60 

2.50 
4.00 



8.00 
2.00 



09.0 
7L4 



6.00 
8.00 



8.00 
4.00 
4.50 
6.00 

6.00 

6.00 

.50 



7.60 



6.00 
.15 



4.50 



*Thl8 does not Include additional duties of 10 per cent and prorlslonal duties levied as *'war 
taxes" since signing of protocoL 



/Google 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 39 

Tariff ickedulea ofoustoiM duties for port$ in Cuba, etc, — Continued. 



CLAflBlI.~lfBTAlJB AHD ALL MANUFACTUBBS Of WHICH MBTAL 

nrrsBS as a principal elbmbnt— Continued. 

Oboop 4. — Oopn^, mnd alloy ^f wrnmon meUA$ c^iJ(h copper 
(oitMf, hronxo^ «to.)— Continued. 

•S Kails and tMks: 

•. Gilt, silTered, or nickeled, T kilog.. 

ft. OtiMr.T do.... 

63 Pins or pens, K. W • do 

Copper and alk^ of copper : 
C4 Articles not specially mentioned, varnished or not, T, 

kilog 

Articles nit, silyered, or nickeled, not specially men- 
tioned,! .™...l[Uog.. 

Oboup 6.— OOsr metalf and thair aUoy$, 

MlCereary.G.W kilog.. 

Nickel, alumininm, and alloys haying for a basis these 
metals: 

f7 In Inmps or ingots, O. W 100 kilos.. 

Tin and alloys thereof: 

68 In lumps or ingots, O. W do.... 

Zine, lead, and other metals not specially mentioned, as 
well as tlieir alloys : 

60 In lamps or ingots, 6. w 100 kilos.. 

NiekeL alominium, and their alloys: 

TO In bars, sheets, pipes, and wire, G. W do — 

Tin and allojs thereof: 

71 In bars, sheets, pipes, and wire, Q.W do — 

Zinc, lead, and other metals: 

73 In bars, sheets, pipes, and wire, G.W do 

7t Tin hammered in thin leaves (tin foil) and capsules for 

bottles,T kUog.. 

Nickel or alnmininm, and their alloys : 

74 Articles of aU kinds. T do.... 

Tfai and alloys thereof (Britannia metal, etc) : 

75 Articles of all kinds, T do.... 

76 ZIbo, lead, and other metals, and their alloys : 

a. Articles, gilt, silvered, or nickeled, T do.... 

ft. Articles, other, T do.... 

Oboup 6.— Wostef and ieorim, 

T7 lUlngs, shavings, eattlngs of iron or steel, and other 
wastes of cast iron, or from the manufacture of 
common metals, fit only for resmelting, 6. W., 
100 kilos 

78 8eori»resnltingfromthesmeltingof ores, O.W. 100 kilos.. 

Class HL— Substances kmplotbd iif phabmact aitd ohbm- 

fCAL DTDOSTBIBa, AMD PBODUOTS COMPOSBD OF THB8B SUB- 

•cAHcas. 

Gboup 1,—SimpU dntge, 

79 Oleaginoos seeds, copra, or cocoanuts, G. W 100 kilos.. 

80 Besins and gums: 

a, Colophany, pitch, andsimilarprodoots, O. W. .do — 

ft. Spirits of torpentine, T do — 

c. Oaoatchonc and guttS'peroha, raw or melted, in 
lamps, O.W... 100 kilos... 

81 Sztraets of lioorioe, camphor, aloes, and other similar veg- 

etable Jnkies, G. W 100 kilos.. 

82 Tan bark, O.W do — 

83 0|rfiun.G.W kflos.. 

84 Other simple vegetable prodacts not specially mentioned, 

Q,W.. .V. .\I........ 100 kilos.. 

V ABJmsl prodocts employed in medicine, not specially men* 

tioned,O.W.. 100 kilos.. 

86 Ksteral colors, in powder «r in lamps (oohers, etc.), G. W., 

100 kilos 

•This «sss Bst ladBis addltiOBsi dittos of 10 per cent 

~ ilBSSsifBftif sf ^rvtsssL 





Rate 




Old rate 

foraU 

im- 


orirf- 

nally 

adopted 

United 

States 

for all 

im- 


Per- 
centage 


ports, 
except 

1^ 


of 
reduc- 
tion. 




ports. 




Pesos. 


Pesos. 




.50 


.20 


60 


.24 


.12 


50 


L40 


.60 


57.1 


.60 


.20 


66.0 


1.10 


.80 


72.7 


.40 


.40 




6.60 


5.00 




10.00 


4.00 


60 


2.50 


LOO 


60 


16.50 


14.00 


9.7 


17.00 


7.00 


58.8 


4.00 


L50 


62.5 


.07 


.035 


50 


.80 


.50 


87.5 


.75 


.50 


83.8 


.66 


.30 


53.8 


.80 


.15 


50 


.80 


.80 




.06 


.06 




8.00 


8.00 


81 


LOO 


LOO 




6.76 


2.50 


63 


6.00 


6.00 




9.00 


6.25 


4L7 


.45 


.25 


44.6 


2.80 


2.80 




6.50 


2.75 


50 


8.00 


L80 


40 


LIO 


.60 


45.5 



Proposed 
rate. 



Dollars, 

0.20 
.12 
.00 



.20 
.60 



8.00 
4.00 

LOO 

7.00 

7.00 

L50 

.04 

.50 

.50 

.80 
.15 



.15 
.03 



2.00 

.50 
2.50 

3.00 

5.25 

.25 

6.00 

2.75 

L80 

.60 



and provisional diUes leried as '*war 



Digitized by VjOOQIC 



40 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Tariff eohedulee of customs duties for ports in Cuba, etc. — Continued. 







Rata 








Old rata 
foraU 

im- 
porta, 
except 
ISpan- 

ish.* 


oriri- 

nally 

adopted 

United 
States 
for ail 

im- 
porta. 


Per- 
centage 

of 
reduc- 
tion. 


Proposed 
rata. 


Class III.— Substances emplotbd in phabmact and chem- 










ical INDU8TBIB8, AND PEODUCT8 COMPOSED OF THESE SUB- 










STANCES— CoDtinaed. 










Gboup 2.-~Oolors, dyes^ and vaminihet. 










87 Artificial colors of metaUie bases: 


Peeoe. 


Pesos. 




DoUars. 


a. In powder or lumps, G. W., T 100 kilos.. 


5.10 


2.55 


50 


2.55 


h. Prepared in the paste, oil. or water; also lead or 
colored pencils, G. W., T 100 kilos. . 










11.90 


5.05 


50 


5.00 


88 Other ftrtifical colors in powder, crystals, lumps, or pante, 
G.W kilog.. 










.41 


.25 


39 


.25 


89 Natural dyes: 










a. Woods, barks, roots, etc., for dyeing, G. W., 
100 kilograms 


.40 


.20 


50 


.20 


h. Wadder.G.W 100 kilos.. 


9.00 


4.50 


50 


4.50 


«. Indigo and cochineal, G.W kilog.. 

00 Artificial dyes: 


.85 


.20 


42.9 


.20 










a. Extracts from logwood, archil, and other dyeing ex- 
tracts, G.W.T 100 kilos.. 










8.00 


5.00 


37.5 


6.00 


6. Writing, drawing, or printine inks, G. W. T..do 

c. Ck)lors deriyed from coal. G. W. T kilos.. 


8.95 


3.00 


66.5 


8.00 


.36 


.20 


44.4 


.20 


91 Varnish, G.W.-T lOOkUos.. 


15.00 


7.50 


50 


7.60 


92 Blacking, G.W do.... 

93 Simple bodies: 


8.00 


8.00 


62.5 


8.00 










a. Sulphur, G.W 100 kilos.. 


.45 


.15 


66.6 


.15 


h. Bromine, boron, iodide, and phosphorus. Phospho- 
rus T.; other G.W kilog.. 










.85 


.85 




.18 


94 Inorganic acids: 










a. Hydrochloric, boric, nitric, and sulphuric, also aqua 










egia,G.W 100 kilos.. 

h. Liquid carbonic acid, N. W do.... 


.75 


.80 


60 


.30 








6.00 


c Other, G.W do.... 


"io.66' 


""io.'oo' 




6.00 


95 Organic acids: 










a. Otalio, citric, tartaric, and carbolic, G. W do. . . . 


1.50 


1.00 


33.3 


1.00 


h. Oleic, stearic and palmetlc, G. W do. . . . 


5.15 


1.40 


72.8 


1.40 


e. Aoetio,G.W do.... 


12.00 


12.00 




6.00 


d. Other,G. W do.... 


10.00 


10.00 




6.00 


96 Oxides and oxy hydrates: Of ammoniac, potash and other 
caustic barilla alkalies, G. W 100 kilos.. 










.90 


.25 


72.3 


.25 


97 Inorganic salts: 










a. Chloride of sodium (common salt), G. W do 


L45 


LIO 


24.1 


.60 


h. Chloride of potassium; sulphates of soda, iron, or 










magnesia; bicarbonate of soda; carbonate of 










magnesia; alum, G.W 100 kilos.. 


1.15 


.80 


30.4 


.46 


«. Sulphate of ammoniac; phosphates and superphos- 
phates of lime; nitrate of potash and soda. G. 
W 100 kilos.. 


















.05 


.05 




.03 


d. Other salts of ammoniac, salt« of copper, chloride 
of lime, snphate of potash, hyposulphide of soda. 


















and borax, G.W 100 kilos.. 


1.50 


1.60 




.75 


«. Chlorates of soda and potash, G.W do.... 

98 Organic salU: 

a. Acetates and oxalates, G.W....'. do.... 


3.60 


3.60 




L80 


5.00 


5.00 




2.50 


h. Citrates and tartrates, T do.... 


6.00 


6.00 




3.00 


99 Alkaloids and their salta; chlorides of gold and silver. 










N.W kilog.. 

100 Chemical producta not specially mentioned, G. W. T., 
Kilograms 


13.50 


13.50 




6.75 










.15 


.05 


66.6 


.05 


101 PilU, capsules, medicinal dragees, and the like, T. . .kilog. . 


.75 


.25 


60.6 


.25 


102 Pharmaceutical producU not specially mentioned, T., 










kilograms 


.85 


.10 


fL4 


.10 


Gbottp l.^OiU,faU, and thHr derivatives. 


^.ww 








103 Vegetable oils: 










a. Solid (cocoa-nut, palm, etc.) G.W 100 kilos . . 

b. Liquid, except olive oil, G. W do.... 


7.00 


2.50 


64.3 


2.50 


11.00 


3.00 


72.7 


8.00 


104 Crude oils and animal fata : 










a. Cod-liver oil and other medicinal oils, not refined. 










G.W 100 kilos.. 


2.95 


2.95 




1.47 


b. Glycerin, olein, stearin, and spermaceti, crude. 










G.W 100 kilos.. 


5.15 


1.40 


72.8 


1.40 


0. Other crude oils and fats, G.W do 


2.70 


.50 


81.5 


.60 



* This does not inelade additional daties of 10 per cent and proTlsIonal datles leried as ** war 
taxes*' sIbcs sign log of protocol. 



/Google 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUIJA. 
Tariff achedulea of customs duties for ports in Cuba, etc. — Con tinned. 



41 



Old rate 
foraU 

im- 
ports, 
except 
Span* 

iah.* 



Rate 

origi- 

naUy 

adopted 

by 
United 
SUtea 
foraU 

im. 
porta. 



Per- 
ceatage 

of 
reduc 

tion. 



Proposed 
rate. 



Pe909. 

6.16 

10.90 

3.60 

.63 



4.90 
7.80 
6.00 



12.50 
.86 



2.00 



Peiot. 
6.16 



2.40 
.60 



.05 

1.40 
4.20 
6.00 



4.00 
.20 



2.00 



78 

85.7 

62.8 



71.4 
46.2 



68 
42.9 



CXAS8 m.— SUBSTAIVCES EMPLOTKD IN PBABMACY AND CHEM- 
ICAL niDUSTBIES, AND PBODUCTS COMPOSED OF THESE SUB- 
STANCES— CoD tinned . 

Obottp 4.— OAt, fat», and their derivatives— ConiHuvLedL. 

106 Mineral, yeeetablo, or animal wax, nnwronght, and par* 

affin in lamps, G. W 100 kilos.. 

lot Articles of stearin and paraffin, wax of aU kinds, wronght, 
T lOOkflos.. 

107 Common soap.G.W. T do 

108 Perfdmery and essences, T kiiog. 

Group 6.— Farwm*. 

109 Artifloial or chemical fertilizers. G. W 100 kilos . 

111 Starch and fecnltB for industrial uses; dextrin and gla- 

oose.G.W. T 100 kilos. 

112 Glaes, albumens, and gelatin, G.W do 

113 Carbons nrepared for electric lighting, G. "W do. . . 

114 Gonpowaer and explosiyes : 

a. Gunpowder, explosive compounds, and miners' 
fuses, G.W.T 100 kilos. 

h. Gunpowder, sporting, and other explosives not des- 
tined to mines, mTW kilog. 

Class IV.— Cotton and manufactt7re8 thbbbof. 
Group 1. — Cotton in (he toool and yams. 

115 Cotton in the wool and cotton waste. G. W 100 kilos. 

lit Cotton yam and thread for crocheting, embroidering, 

and sewing including the weight of reels, st. 
W kilog.. 

Group 2,— Tissues. 

117 Tissues, plain and without figures, napped or not, weigh- 
ing 10 kiloA or more per 100 square meters, un- 
bleached, bleached, or dyed, having: 

a. UptoOthreads, N. W kilog. 

b. From 10 to 16 threads, K. W do... 

«. From 16 to 19 threads, K. W do.... 

d. 20 threads or more, N. W do 

117 bis. The same tissues, printed or manufactured with dyed 

yams: Dutiable as the tissue, with a surtax of 
80 per cent, N.W. 

118 Tissues, plain and without figures, napped or not, weigh- 

ing less than 10 kilos per 100 square meters, un- 
bleached, bleached, or dyed, having: 

a. Up to 6 threads, N. W kilog.. 

b. From7toll threads.N.W do.... 

e. From 12 to 15 threads, N.W do... 

tf. From 16 to 19 threads, N. W do... 

e. 20 threads or more, N.W do... 

118 bis. The same tissues, printed or niannfaotured with 

dyed yams : Dutiable as the tissue, with a surtax 
of 40 per cent, N.W. 

119 Tissues, twilled or figured on the loom, napped or not, 

weighing 10 kilos or more per 100 square meters, 

nnbleached, bleached, or dyed, having: 

a. Up to 6 threads, N.W kilog.. 

5. From 7 to 11 threads, N. W do 

«. From 12 to 16 threads, N. W do... 

d. From 16 to 19 threads, N. W do... 

e. 20 threads or more, N.W do... 

119 bis. The same tissues, printed or manufactured with 

dyed jams: Dutiable as the tissue, with a sur- 
tax of 30 per cent, N. W. 

* This does not inelade additional dntles of 10 per cent and prorlslonal datles levied i 
taxsi" bIrcs signing of protocol. 



Dollars. 

2.50 

2.40 

1.50 

.20 



.65 



.84 
.46 
.70 



.30 
.89 
.65 
.75 
.98 



.18 



.12 
.18 



.10 
.14 
.20 

.30 
.40 



72.3 



69.2 
64.7 
60.9 
57.1 



66.6 

64.1 

63.6 

60 

69.2 



0.30 
.36 
.40 
.64 
.85 



0.10 
.12 
.16 
.24 
.35 



66.6 

66.6 

60 

62.5 

68.8 



.05 

1.40 
3.90 
8.00 



4.00 
.20 



1.00 
.83 



.18 
.17 
.28 



.15 
.20 

.27 
.37 
.60 



0.15 
.18 
.20 
.82 
.42 



Digiti 



ized by Google 



42 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Tariff $oh€duU9 ofcuMtoms dutiea far pcrU in Cuba, etc, — Continued. 



Old rate 
foraU 
im- 
porta, 
except 
Spau- 



Peios. 
.36 
.46 
.04 
.87 
1.10 



.17 

.40 

.95 
.60 
1.50 

L75 



Pews. 
.12 
.16 
.24 
.35 
.45 



.16 
.30 



.06 
.15 



.60 
.60 



.70 



66.6 

65.2 
62.5 
59.8 
50.1 



66.6 
66.6 



64.7 
62.5 
68.4 



DoUan. 

0.18 
.23 
.82 
.43 
.65 



.24 
.45 



60 
60 



.08 
.20 



.47 
.30 



Class IV.— Cotton and uaitofacturbs thereof— Continued. 

Geotjp 2.— 3^£t«t*e#— Continued. 

120 Tissues, twilled or figured on the loom, napped or not, 
weigliinK lima Uian 10 kilos por 100 square 
meters, nnbleached, bleached, or dyed, having: 

a. Up to 6 threads, KW kllog. 

b. From 7 to 11 threads, N. W do... 

0. From 12 to 15 threads, K. W do.... 

d. From 16 to 19 threads, N. W do 

e. 20 threads or more, N. W do... 

120 bis. The same tissues, printed or manafacturod with 

dyed yams : Dutiable as the tissues, with surtax 
of 40 per cent N. W. 

121 Tissues for counterpanes, N.W kilog.. 

122 Piques of all kinda,]».W .-. do..., 

123 Carded tissues: 

a. Unbleached, half bleached or dyed in the piece, 

N.W kilog.. 

b. Bleached, printed, or manufactured with dyed 

vams,N. W kilog.. 

124 Velvety tissnes, such as corduroys and velveteens; three- 

ply plush tissues, cut or not, N. W kilog. . 

125 Knitted goods, even with needlework do. . . . 

A. In the piece. Jerseys or drawers, N. W do — 

6. Stockings, socks, gloves, and other small articles, 

N.^^ kilog.. 

Proposed elasstflcatlon : 
A. Undershirts and drawers of sloiple flnlih or rongh 
sewing, N. W.. per kilo 

b. Undershirts and drawers of doable sewing or fine 

finish. If. W., per kilo 

c. Stockings. SOCKS, glores, and other snail articles 

of simple llBiBii or roagh sewing, N. W.,per kilo. 

d. Stockings, socks, gloTf s^ and other small articles 

of donble sewing or fine flBlsh, N. W., per kilo . . 

126 Tulles: 

».PUin,N.W do... 

b. Figured or embroidered on the loom, K. W. . . .do. . . 

127 Lace, blondes, and tulle for borders of all kinds, N.W.do. . . 

128 Carpets of cotton, N.W do... 

128 Tissues called tapestry, for upholstering furniture and for 

curtains, manufactured with dyed yams; table 
covers and counterpanes of the same kind, 
N.W kilog. 

130 Wicks for lamps and candles, N. W do.... 

131 Trimmings of cotton : ribbons and galloons, N. W . . .do. . . . 

Clabs y.— Hbmp, flax, pfta, jxttb, and otheb ybqitablb 

riBKBS, AND THXIB MANUFACTUBB8. 

Qboup L—Row andtpun. 

132 Hemp, flax, and ramie, raw, hackled or tow, G. W., 100 

kilos 

183 Abaca, heniquen, pita. Jute, and other vegetable fibers, 
raw, hackled, or tow, O. W 100 kilos.. 

134 Twisted yams of two or more ends (including the weight 

of the reels, also the above fibers prepared for 

spinning), N.W kilog.. 

Proposed elassiflcation to replace paragraph 1S4— 
Twisted yams of two or more ends (Incladlng 
the weight of the reels), also the fibers of abaca, 
hen Iqven, pita, into, and other vegetable fibers, 
prepared for splnnlBg, not otherwise prorldea 
for, N. W kilog. 

135 Bope and coidage : 

a. Twine or rope yam and cord of hemp, not exceed- 

ing 3 millimeters in thickness, G. W. . . 100 kilos. . 

b. Cordage and rope makers' wares of hemp, exceed- 

ing 3 millimeters in thickness, N. W...100 kilos.. 

e. Cordage and rope-makers' wares of abaca, hene- 

qucn, pita. Jute, or other fibers, N. W . .lUO kilos. . 

* This does not indade sddltlonal datlei of 10 per cent and proTislonal duties levied as '^ war 

tvxes" since ligning of protoeoL 

" • ' uigiiizea Dy x_Jv^^^"Xi\^ 



L40 
1.85 
2.95 



.65 
.30 
L05 



2.25 
.80 

.30 



16.20 
14.80 
11.20 



Kate 

nafly 
adopted 

United 
States 
for all 

im- 
ports. 



Per 

centage 

of 

reduob 

tiou. 



.40 

.60 

1.00 

.10 



.10 
.85 



2.25 



.10 



6.00 
6.00 
6.00 



7L4 
67.6 
66.1 
66.6 



61.5 
66.6 
66.6 



66.6 



59.5 
46.4 



Proposed 
rate. 



.70 

.SO 

.70 

•IN) 

.70 

.02 

L47 

.15 



.82 
.15 
.63 



Freo. 
Free. 



.10 

6.00 
6.00 
6.00 



COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



43 



Tariff BoheduUs ofousiams duties far ports in Cuba, etc. — Continued. 



Old rate 
for all 
Im- 
porta, 
except 
Span- 
lah.* 



Pesos. 

7.58 

.17 

.26 



Pesos. 

2.00 

.05 

.08 



.06 
.08 
.12 
.16 
.20 



ClASB v.— HBMP, flax, pita, JUTB, Airo OTHBB VKOETABLB 
FIBBB8, AND THSIB MANUFACTUBBS — Contiuued. 

Group 2.— Tissues. 

136 Tiasnee of hemp, linen, lamie, jate, or otber vegetable 
fibers, not Bpecially meDtioued, plain, twilled, or 
damasked, weighing 35 kilos or more per 100 
square meters, unbleached, half bleached, ordyed 
in the piece, having; 
a. Up to 6 threada, K. w., including sugar bags, 100 

kllM 

h. From 6 to 8 threads, N.W kilog.. 

e. 9 threads or more, N. W do — 

116 Us. The same tissaee, bleached or printed : Datiable as 
tissue, with a surtax of 15 per cent-, N. W. 

136 ier. The same tissuee, manufaotnred with dyed yams: 

Datiable as the tissae, with a surtax of 25 per 
oenttN.W. 

187 Tissues, plain, twilled, or damasked, weighing ftom 20 to 

85 kilos per 100 sqaare meters, unbleached, 

half bleacned, ordyed in the piece, having: 

A. TTp to 5 threads, N.w. kilog. 

h. From 6 to 8 threads. N. W do 

«. From9tol2threadii,N.W do.. 

d. From 18 to 16 threads^. W do.. 

«. 17 threads or more. N.W do.... 

137 bis. The same tissaes, bleached or printed : Datiable as 

the tissue, with a surtax or 25 per cent, N. W. 

137 ter. The same tissues, manufactured with dyed yams : 

Dutiable as the tissnot with a surtax of 40 per 

oent. N. W. 
12t TIasaes, plain, twilled, or damasked, weighing firom 10 to 

20 kilos per 100 souare meters, unbleached, half 

bleached, or dyed m the piece, naving: 

A. TTpto8threada,lf.W kih)g.. 

h. From » to 12 threads, N. W do..., 

c. From 18 to 16 1 breads, KW do..., 

d. From 17 to 20 threads, N. W do.... 

s. 21 threads or more. N.W do 

138 bis. The same tissues, bleaohed or printed: Dutiable as 

the tissue, with a surtax or 30 per cent, K. W. 
138 Ier. The same tiaaues, manufactured with dyed yams: 
Dutiable as the tissue, with a surtax of 50 per 
cent, N.W. 

188 Tissues, plain, twilled, or damasked, weighing lees than 8 

kilos per 100 square meters, unbleached, half 

bleached, or dyed in the piece, having : 

•.Up to 8 threads. N.W kilog., 

ft. From0tol2threadR,N.W do.... 

«. From 13 to 16 threads, N. W do 

d. From 17 to 20 threads, N. W do.. 

«. 31 threads or more, N.W do. 

188 bis. The same tissues, bleached or printed: Dutiable as the 

tiasue, with a surtax of 30 per cent, N. W. 

189 ter. The same tissuea, manufactured with dye<1 yams: 

Dutiable as tiie tissue, with a surtax of 50 per 
cent 

140 YelTeta and plushes of linen, Jute, etc., N.W kilog. . 

141 Knitted goods of linen or hemp, mixed or not with cotton 

or vegetable fiber, even with needlework : 

a. In the piece, Jerseys or drawers, N.W kilog.. 

b. Stockings, socks, gloves, and other small articles, 

N.W.. kilog.. 

14STnlles: 

a. Plain, N.W kilog. 

ft. Figured, or embroidered on the loom do — 

143 Laee, blonde, and tulles for borders, N.W do. 

144 Dtfpets of Jute, hemp, or other vegetable fibers, without 

admixture of wool,N. W kilog. 

* TUs dees not inelsde additional dntfei of 10 per cent and prorlslonal datiei lorled as 
ilBee it^dBf of protoceL 



Rate 

oriel. 

nally 

adopted 

by 
United 
States 
foraU 

im- 
ports. 



.80 
.45 
.66 
.90 
1.27 



.36 
.52 
.74 
1.10 
1.80 



.50 



2.04 

2.60 

2.10 
2.60 
5.60 

.10 



Per- 
centage 

of 
redac- 
tion. 



.08 
.12 
.18 
.25 
.35 



.10 
.14 
.20 
.35 
.60 



.20 



1.00 

0.60 
.75 
2.00 

.10 



73.6 
70.6 
69.2 



68.4 
68.2 
68.4 
68.2 
69.2 



73.3 
73.3 
72.7 
72.2 
72.4 



72.2 

73.1 

73 

68.2 

66.6 



64.3 

60.8 

61.5 

71.4 
71.2 
64.3 



Proposed 
rate. 



Dollars. 

2.00 
.06 
.08 



.01 
.11 

.le 

.21 



.08 
.12 

.18 
.25 
.35 



.10 
.14 
.20 
.85 

.60 



.20 



1.00 

a6o 

.73 
2.00 

.05 
«irar 



Digiti 



ized by Google 



44 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Tariff sohedulea of customs duties for ports in Cuhay etc. — Continued. 



Old rate 
foraU 

ira- 
porto, 
except 
Span- 
iab.* 



Class V.— Hemp, flax, pita, jdte, and other veoktablb 

FIBBRS, AND THBIB liANDFAOlURES— Coiltiuuod. 

Group 2.— IYmuw— Continaed. 

14S Tissaes called tapestry, for upbolstoring fomitare and for 
cartains, mixed or not with cotton, figured or 
damasked, provided they be raanufaetared with 
yams dyed prior to being woven ; table covers 
andcoanterpanesof tbesaiue kind, N.W..kilog.. 

liG Trimmings, of hemp, jute, linen, ramie, etc. ; ribbonn and 
galloons, if. W kilog.. 

Class YI.— Wool, bristles, hair, horsehair, and their 
manufactures. 

Group l.—Raw and »pun, 

147 Bristles, hair, and horsehair, G.W 100 kilos.. 

148 Wool, raw. G.W .' kilog.. 

149 Woolen yarn, nnbleached, bleache<l, or dyed, single or 

twisted, N.W kilog.. 

Woolen yarns mixed with silk shall be liable to the fol- 
lowing surtaxes : 

When containing up toone fifXh of silk percent.. 

When containing up to two fifthnof silk do 

When containing three-fllths or more of silk the yarns 
shall be dutiable as untwisted silk. 
160 Swanskin of pure or mixed wool, N. W kilog. . 

151 a. Of pnre wool, N. W do 

b. Of mixed wool. N. W do.... 

152 Flannels, White, or colored, for underclothing: 

a. Of pure wool, N. W do 

b. Of mixed wool. N.W do.... 

153 Blankets, or counterpanes of wool, pure, or mixed with 

other materials: 

a. Gray blankets ("pardas"), N. W kilog.. 

b. Other.N. W..: do ... 

154 Astrakhans, plushes, and velvets of wool, pure or mixed, 

N.W kilog.. 

155 Cloths and other tissues not specially mentioned, of wool, 

hair, or tlock wool, comprised or not in drapery, 
weighing per square meter : 
800 grams or more: 

a. Of wool, hair, or flock wool^ure, N. W kilog. . 

6. Of wool or hair, mixed, N. W do.-.. 

158 From 175 to 300 grains : 

a. Of wool, hair, or flock wool, pure, N. W do 

b. Of wool or hair, mixed, N. W do.... 

157 Less than 175 grams : 

a. Of wool, hair, or flock wool, pure, N. W do. . . . 

b. Of wool or hair mixed, N.W. do.... 

158 Tissues of bristleor horsehair, with or without an admixture 

of cotton or other vegetable fibers, N. W. . kilog. . 

150 Knitted stuflTs, with or without an admixture of cottmi or 

other vegetable fibers, even with needlework: 

a. In the piece, jerneys or drawers, N. W kiloz.. 

6. In s toe Kings, socks, gloves, and other small articles, 

N.W kilog.. 

160 Carpets of wool, pure or mixed with other materials: 

a. With uncut pile, N. W kilog.. 

b. Plushy or with cut tile, N. W do.... 

161 Tissues called tapestry, for curtains and upholstering fur- 

niture, of wool, pure or mixed with rotten or 
other vegetable fibers, even figured or daniasked, 
weighing more than 350 grams per square meter ; 
table covers and counterpanes of the same kind, 
N.W kilog.. 

162 Felts of wool, pure or mixed, N. W kilog.. 

163 Trimmings of wool; ribbons and galloons, N. W do 

*Thli does not Include additional datlei of 10 per cent 
4axei " ilace ilgnlBg of protocuL 



Pesot. 

.78 



1.15 



4.50 
.20 



.40 



45 
100 



.26 



.40 
.30 



.00 
.60 



.26 
.43 



1.30 



1.64 
LIO 

2.06 
1.50 

2.35 
1.80 

1.15 

2.30 

3.10 

.54 
.65 



Bate 
origi- 
nally 

adopted 
by 

United 
States 
for all 

im- 
porta. 



PetoK. 
.28 



.40 



4.50 
.20 

.40 



45 
100 



.30 



.40 
.25 

.50 
.35 

.60 
.45 

.40 

.00 
1.10 
.10 



Per. 

centage 
of 

reduc- 
tion. 



64.1 
65.2 



76.0 



75 
73.8 



66.6 
75 



76.0 
76.7 



76.0 



75.6 
77.3 

75.7 
76.6 

74.5 
75 

65.2 

60.8 

64.5 

70.4 
60.2 



Proposed 
rate. 



Dollars, 

0.38 



.40 



40 p. ct. ad V. 
40 p. ct. ad V. 

40 p. ct. ad T. 

22 p. ct. ad T. 
50 p. ct. ad V. 

40 p. ct. ad T. 

40 p. ct ad V. 
40 p. ct. ad V. 

40 p. ct ad T. 
40 p. ct ad V. 

40 p. ct ad ▼. 
40 p. ct. ad V. 

40 p. ot. ad T. 



40 p. ot ad T. 
40 p. 6t ad T. 

40 p. ot ad T. 
40 p. ct. ad V. 

40 p. ct ad V. 
40 p. ct. ad v. 

40 p. ot ad T. 



p. ct ad ▼. 

p. ct ad V. 

p. ct ad V. 
p. ct ad V. 



1.35 .60 55.5 , 40 p. ct adv. 

0.36 0.12 65.7 40 p. ct adv. 
1.43 .45 08.5 I 40 p. ct ad V. 

anJ proTisIonal duties levied as **war 



Digiti 



ized by Google 



COMMEEOIAL AND INDU8TEIAL CONDITION OP CUBA. 



45 



Tariff $chedulea of ctutoma duties for ports in Cuba, etc, — Coutinued. 



CLA88 VII.— SHJC AND MANUFACTUBBS OF SILK. 

Group l.—Yam$. 

164 Silk and floassilk. spun or twisted in 8keln8,N.W. . .kilog 

165 Silk on reels, including weight of the reels, N. W do. . 

168 Tissaesof unbleachea silkrN. \V do 

167 Tissues of silk or floss silk: 

l(ot mixed with any other material— 
Plain, not figiire<I. twilled, or serged— 

a. Black,N. W do... 

b. Colored, N.W do... 

168 Figured, plushy or velvety. N". W do 

160 Ifixed with another material: 

Plain, not figured, twilled, or serged— 
a. Mixed with cotton or other vegetable fibers, 

N.W kilog. 

h. Mixed with wool or hair, N.W do. . . 

170 Figured, plushy, or velvety.N. W do 

171 Knitted stuffs of boiled silk, of unbleached ailk, or of floas 

silk, made up in any kind of article: 

a. Of pure sUk, N.W kilog. 

6. Mixed with other textile materials, N. W do. . . . 

172 Tulles of silk or floes silk, pure or mixed : 

a. Plain, N.W do... 

b. Figured or embroidered on the loom, N. W. . .do. . . 

173 Lace tullee for borders and blondes, of silk or floss silk, 

plain or figured: 

a. Not mixed, N:w kilos. 

b. Mixed with cotton or other vegetable fibers, N. W. 

kilos 

174 Trimmings of silk, N.W kilog.. 

Class YUI.— Paper and rrs applications. 
Group l. 

175 Paper pulp, G. W 100 kilos. 

Group 2.^Prxnting and writing paper. 

176 Paper, endless, white or colored, uncut, weighing per 

square meter: 

a. 85 grams or less, T 100 kilos., 

b. From 35 to 50 grams do 

e. 50 grams or more, T * do 

177 Paper, endless, of whatever weight, white or colored, cut; 

handmade paper, pencil or ink-ruled paper, and 

envelopes. T 100 kilos.. 

Proposed elsisiflcatloD to replace paragraphs 170 and 

Paper, sadleM or in sheets, white or colorfd, uncut 
and sBprinted, for printing porposes.pcr 100 kilos 

Paper, endless or in iheets, white or colored, uKed for 
wrappiBg psrpoRei per 100 kilos 

Paper Is sheets, snmled. snprlnted and oncut^ white or 
solored, aied for wrltihg purposes ...per 100 kilos 

Group 3.— Paper, printed, engraved, or photographed. 

78 Books, bound or unbound, and other printed matter : 

a. InSpanish,T 100 kilos.. 

b. In foreign languages, T do 

179 Headed paper, forms for invoices, labels, cards, and the 

Uk^T kilog.. 

180 Printe, maps. charU, etc, drawingH, photogranha, and en- 

gravings; pictures, lithographs, oliromolitlio- 
graphs, oleographs, ete., used us labels and wrap- 
pers for tobacco or other purposes : 

a. Of a single color, T kilog.. 

6. Of two or three colors, T do.... 

c Of more than three i-olors, T do 

Proposed elassillestlon to repUce s, b, and c of paragraph 
IHO: 
a. Of a single printing and bronze or leaf Including 
labels printed onlj In bronse or leaf, T. 



uci«».,m.... Kilog: .06 

b. Of two printings sad bronse or leaf, T do •SO 

e. Of tkree to ton printtngs (Inclsilve) and bronze or 

Iesf,T Kilog .40 

d. Of mors than ton printings and bronze or leaf, 

T : Kilog.. .80 

*ThIs does not Inelsde sddltlonal duties of 10 per cent and prorlMlonal duties leried as «war 
tsxss'* since signing of protocol 



Old rate 
for all 

im- 
porte, 
except 
Span- 
ish.* 



Kate 
origi- 
nally 
adopted 

United 
States 
for all 

im- 
porte. 



Pesoe. 
4.50 
2.00 
3.84 



7.60 
9.70 
10.40 



4.70 
5.40 
7.00 



8.50 
7.00 



6.00 
7.50 



14.00 



14.00 
3.10 



.25 



8.00 
3.80 
6.00 



16.10 



14.60 
2.50 



0.20 



.20 
.50 
1.20 



Pesos. 
2.25 

.80 
1.04 



3.80 
4.85 
4.40 



2.20 
2.40 
B.00 



3.50 
3.00 



2.40 
3.00 



4.00 
.60 



.25 



2.00 
1.00 
1.50 



3.50 



2.50 
2.50 



0.05 



.05 
.20 
.40 



Per- 
centage 

of 
reduc- 
tion. 



72.9 



50 
50 
57.'! 



53.2 
65.5 
67.1 



58.8 
57.1 



60 
60 



57.1 



71.4 
80.6 



75 

73.7 

75 



78.2 



Proposed 
rate. 



75 



75 
60 
66.6 



Dollars. 
50 p. ct. ad V. 
50 p. ct. ad V. 
60 p. ct ad V. 



60 p. ct. ad V. 
50 p. ct. ad V. 
50 p. ct. ad V. 



50 p. ct ad V. 
60 p. ct ad V. 
60 p. ct ad V. 



60 p. ct. ad V. 
50 p. ct ad V. 

^0 p. ctad V. 
50 p. ct. ad V. 



50 p. ct. ad V 

50 p. ct. ad V. 
50 p. ct ad V. 



.15 



4.00 
2.50 



8.00 



7.25 
1.25 



0.10 



uigiiizea oy 



Google 



48 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Tariff schedules ofcustome duties for ports in Cuba, etc, — Continaed. 







Bate 








Old rate 


origi- 

naOy 

adopted 

United 

States 

foraU 

Im- 








for all 

im- 
porta, 
except 


Per. 
oentage 

of 
radno- 
tion. 


.Proposed 
rate. 






ports. 






CT.A8fl Vm.— Papbb and its appuoationb— Continued. 










Gboup 4.— WaU paper. 










181 Wall paper, printed : 


Petot. 


Pesos. 




Dottars. 


A. On natural ffroond, T 100 kilos.. 

5. On dull or glazed ground, T do 


8.00 


2.M 


68.7 


4.00 


12.00 


8.00 


75 


6.00 


c. With gold, allver, wool, or glass, T do.... 


.45 


.10 


77.7 


.27 


Gboup S.^Patteboard and tfariout papers. 










182 Blotting paper, common packing paper, and sand or glass 
paper, T lOOiOlos.. 










8.50 


.80 


77.1 


1.75 


183 Thin paper, of common pulp, for packing fruit, T do — 

184 Other paper, not specially mentioned, T. do. . . . 


4.60 


l.UO 


7a 3 


2.30 


9.20 


2.00 


78.3 


4.60 


185 Pasteboard, in sheets: 










a. Cardboard paper and fine, glased, or pressed card- 
board, T IQO kOos.. 










7.00 


1.50 


78.6 


3.50 


b. Other pasteboard, T do 


2.10 


.35 


83.3 


LOO 


186 Manufactures of nasteboard : 

a. Boxes lined with ordinary paper, T do.... 










2.10 


.35 


83.3 


LOO 


b. Boxes with ornaments or lined with fine paper, 
T .Itilos.. 










.45 


.10 


77.7 


.22 




.35 


.10 


71.4 


.17 


187 Paste and carton-pierre: 










a. In moldings or unfinished articles, T 100 kilos. . 

b. In finished arUcles,T kilos.. 


2.00 


.50 


75 


LOO 


.30 


.10 


66.6 


.15 


Class IX.— Woob and othbb yiobtablb materials bm- 










PLOTID Of INDU8TBT, AND ABTIOLBS MANUTAOTUBBD THBKB- 










WITH. 

Gboup 1.— Tfood. 










188 Staves M.. 


2.00 


2.00 




.80 


189 Ordinary wood: 










a. In boards, deala, rafters, beams, round wood, and 

timber for shipbuilding, G. W cubic met«r . . 

b. Planed or dovetailed, for boxes and flooring; broom- 










1.00 


LOO 




.40 










sticks and oases wherein imported goods were 










packed. G.W 100 kilos.. 


.40 


.40 




.16 


190 Fine wood for oaoinetmakers : 










a. In boards, deals. trunks,or logs, G.W do 


8.00 


8.00 




. L20 


b. Sawn in Teneers, T do 


4.35 


4.85 




L75 


191 Coopers' wares: 












1.60 


1.60 




.65 


b. In shocks, also hoops snd headings, G. W do.... 


.90 


.90 




.36 


192 Wood, cut, for making hogsheads or oasks for sugar or 

193 Lattice work and fencing, G.W do.... 


.15 


.15 




.06 


L50 


1.50 




.60 


Gboup 2.— JVim«ur< and man^facturet qf wood. 










194 Common wood manufactured into Joiners* wares, and ar- 










ticles of all kinds, turned or not, painted or not, 
varnished or not, but neither chiseled, inlaid, 


















nor carved, T 100 kilos.. 


9.50 


2.00 


78.9 


4.75 


195 Fine wood manufactured into furniture or other wares. 










turned or not, polished or not, varnished or not. 










and furniture and common wooden wares ve- 










neered with fine wood; furniture upholstered 
with tissue (other than with silk staffs contain- 


















ing an admixture thereof, or with leather), pro- 
vided that the articles specified in this number 


















be neither chiseled, carved, inlaid, nor orna- 
mented with metal, T 100 kilos.. 










80.00 


12.00 


60 


15.00 


196 Furniture of bent wood. T 100 kilos.. 


24.00 


10.00 


58.8 


12.00 


197 Battens: 










a M olded, varnished, or prepared for gilding, T . . do 


10.00 


3.00 


70 


5.05 


6 Gilt or carved, T kilog.. 


.50 


.15 


70 


.20 


198 Wood of any kind manufactured into furniture or other 










wares, gilt, chiseled, carved, inlaid, or veneered 
with motherot'-peari or other fine materiahf, or 


















ornamented with metal, and furniture uphol- 
stered with stuflfs of pure or mixed silk, or 
leather, N.W kilog.. 


















1.85 


.60 


55.5 


.68 



* This does not Include additional datlei of 10 per cent and provisional datlei leried as 
taxes" since signing of protoeoL 



Digitized by 



Google 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 
Tariff $chedule$ of cusiouM duties far ports in Cuba, etc, — Continued. 



47 



Oldnte 
foraU 

im. 
porta, 
except 
8pan< 



Rate 

oriffl- 

nafly 

adopted 

bv 
Uiifted 
States 
foraU 

im. 
ports. 



Per- 
oentage 

of 
reduc- 
tion. 



Proposed 
rate. 



Class £X.— Wood and othsb vegitabli matbbials km- 
plotbd in un>u8tet, and articlbs manufaotubed thebb- 
WITH— Continued. 

Qboup Z.—TariouB. 

m Charcoal, firewood, and other vegetable Aiel, G.W 

1,000 kilos. 

200 Cork: 

aintberougb or in boards, Q.W 300 kilos.. 

Mf anufactnred, T do 

SOI Bnsbee, regetable bair, cane, osiers, fine straw, palm and 
genista, raw, raw esparto and baskets and other 

common wares of esparto, G.W 100 kilos.. 

Baskets wherein imported goods were packed shall be 
dutiable according to this number, with a rebate of 00 per 
cent. 

202 Esparto manufactured into fine articles; rushes, vegetable 

hair, cane, osiers, fine straw, palm, and genista, 
manufactured into articles of all kinds not 
specially mentioned, T 100 kilos.. 

Clam X.— Animals and animal wabtks kmploted in 

INDU8TBY. 

Gboup L—Aniimdls. 

203 Horses and maies: 

a Above the standard height each.. 

6 Other do.... 

204 Mules do... 

a»5 Aseea do.... 

200 Bovine animals: 

a. Oxen do.... 

h. Cowa do — 

«. Bullocks, calves, and heifers do — 

207 Pigs do.... 

Saeklsgpin 

208 Sheep, goats, and animals not specially mentioned. . do 

200 Singing birds, parrots, etc do.... 



Pe908. 

8.00 



2.80 
0.00 



8.05 



26.25 



50.00 

27.00 

20.00 

1.00 

8.00 
7.00 
6.00 
5.00 



Pe909. 

3. 00 



1.40 
8.00 



L05 



laoo 



60.00 

27.00 

20.00 

1.00 

8.00 
7.00 
6.00 
5.00 



Gboup i^-^Eidss^ sUnt, and leather wares. 

210 Pelts In their natural state or dressed, G. W kilog. . 

211 Hides and skins, green or not tsnned, G.W do — 

Wet-salted hides and skins shall ei^oy a reduction of 60 per 

cent in respect of salt and moisture. 
Pry-salted hides and skins shall be aUowed a rebate of 80 
percent. 

212 Hides tanned with the hair, G.W kilog.. 

213 Hides tanned without the hair: 

a. Cow and other larse hides, whole, G. W kilog. . 

b. Other and backs of large hides, G. W do 

214 Hides snd skins, curried, dyM or not: 

•. Sheepskins (basils), T do 

h. Calfor goat skins, T do 

s. Kid, lamb, or young calfskins, T do 

d. Cow and other large hides, whole, T do 

s. Backs of large hioes and hides and skins not spe- 

ciallv mentioned, T kilug.. 

215 Hides and skms, varnished, satiny, grained, dulled, and 

hides and skins with figures, engravings, or vm 

bossed, T kilog.. 

Lesther cut out for boots snd shoes or other articles shall 
be liable to a surtax of 30 per cent of the respec- 
tive duties leviable thereon. 

216 Chamois leather or parchment of lUl kinds and gilt or 

brouKcd hides and skins, T .kilog.. 

217 0k>vesof skinmT do.... 

218 Shoes of cowhide and similar leather: 

a. For men doxen.. 

h. For women do — 

e. Fsr bsyi kelow sise 4| 



1.50 
.20 



8.00 
.08 



0.50 

.85 
.48 

.65 
.65 
.90 
.40 

.55 



1.U 



1,80 
7.00 



5.95 
4.90 



1.50 
.20 



1.50 
.03 



0.25 

.15 

.20 

.20 
.25 
.40 
.15 

.20 



.50 



.60 
8.50 



2.20 
1.00 



60 
06.6 



71.2 



61.0 



Dollars. 

1.50 



1.40 
4.50 



50 
02.5 



50 

57.1 
58.8 

63.6 
61.5 
55.5 
62.5 

63.6 



56.1 



53.1 
50 



63 
6L2 



1.83 



13.10 



10.00 
6.00 
5.00 
5.00 

1.00 
1.00 
1.00 
1.00 
1.00 
1.00 
25 p. ct adv. 



1.50 
.02 



0.20 

.15 
.20 

.20 
.25 
.86 
.15 

.20 
.60 



.00 
8.50 

2.50 
2.00 
1.60 



*TUs dssi Bst tBslsds additional ditlet of 10 per cent and proTislonal datiet lerled as ^^wsr 
taxes" ilBes ftgalBg «f protocol. 



Digiti 



ized by Google 



48 



COMMERCIAL AND INDUSTRIAIi CONDITION OF CUBA. 



Tariff Bohedules of cu8tom$ duties for ports in Cuba, etc. — Continued. 



Old rate 
for all 

im- 
ports, 
except 
Span- 
lab.* 



Clabs X.— Animalb akd animal wastes emplotsd in 
INDUSTBT— Con tinned. 

Gboup 2.—Midet, skint, and leather irarex— Continued. 

210 Shoes of patent and a similar leather : 

a. For men dozen 

b. For women do.-.. 

e. For boiri below 8lze4| 

220 Boots of calnkin, with elaslics, or for lacing: 

a. For men doxen 

b. For women do.. 

e. For bojs below ilieii 

221 Boots of patent and similar leather: 

a. For men dozen.. 

h. For women, and top boots ("polacas") do.... 

e. For bofi below size 4^ 

222 Other boots and shoes, fancy dozen. 

223 Ridine boots pair. 

224 Sandals dozen. 

225 Saddlery and harness makers' wares; valises, hat boxes, 

and traveling bags of cardboard or leather, T, 
kilos 

226 Other mannfactores of leather or covered with leather, T, 

kilos 



Gboup Z.— Various. 

227 Feathers for ornament, in their natural state or mann 

facturedK W kilog. 

228 Other feathers an d feather dusters, T do 

229 Intestines, dried, N.W do... 

230 Animal wastes, unmanufactured, not specially mentioned, 

G.W 100 kilos. 

Class XI-^Instbumbnts, machinbbt, and appabatus em- 
plotbd of aobicultubb, indu8tbt, and locomotion. 

Gboup I.— Instruments. 

231 Pianos: 

a. Grand eaoli. 

b. Other do... 

282 Harmoniums and organs, N. W 100 kilos.. 

233 Harps; violins, violoncellos; guitars and mnndolins with 

ioomstations ; Hutes and Ares of the ring ays- 
tem; metal instruments of 6 pistons or more; 
detached parts for wind instruuionts of wood or 
copper, N.W kilog. 

234 Musical instruments, other, K.W do 

236 Watches: 

a. Of gold; also chronometers each.. 

6. Of silver or other metals do 

236 Clocks with weights, and alarm clocks do 

237 Works for wall or table cloclu, finished, with or without 

cases each.. 

Gboxtp 2. ^Apparatus and machines. 

238 Weighing machines, G.W 100 kilos. 

239 Machinery and apparatus for making sugar and brandy, 

G.W 100 kilos. 

240 Agricultural machinery and apparatus, G. W do... 

241 Steam motors, stotlonary, G. W do... 

242 Marine engines; steMU pumps; hydraulic, petroleum, gas, 

and hot or compressed airmotors, G. W.IOO kilos. 

243 BoUers: 

a. Of sbeet iron, G. W do — 

b. Tubular, G.W do. 



20 p. ct. ad T. 

10 p. ct. ad V. 
10 p. ct. ad v. 
20 p. ct ad V. 

20 p. ct. ad Y. 

20 p. ct. ad V. 
20 p. ct. ad ▼. 

* Tbls does lot Inclade additional dalles of 10 per cent and proTlNlonal duties Isfied as *'war 
taxes" staee sifnlag of protocol. 



Rfite 

oriffl- 

nafly 

adopted 

by 
United 
States 
for all 

im- 
ports. 



Petos. 
6.72 
6.74 



10.66 
7.40 



12.00 
13.50 



16.00 
6.00 



.65 
1.15 



4.00 
1.10 
6.00 

1.00 



115.00 
K4.00 
6P.00 



1.60 
.70 



3.00 
1.00 



1.60 

6.40 

.60 

.80 

3.75 

6.00 

8.00 
8.75 



Pesos. 

. 2.30 

2.10 



3.80 
2.40 



4.60 
6.00 



6.00 

2.00 

.20 



4.00 

.40 

2.00 

LOO 



40.00 
30.00 
20.00 



.86 

3.00 

1.00 

.4U 

.80 



Per- 

centage 
of ^ 

reduc- 
tion. 



1.60 

.50 
.80 
3.75 

6.00 

8.00 
8.75 



65.8 
63.4 



64 
67.6 



62.6 
63 



62.6 

60 

75 



63.6 
65.2 



63.6 
60 



65.2 
64.3 



60 
60 



50 
60 



70.4 



Proposed 
rate. 



Dollars. 

2.75 
2.25 
1.76 

6.00 
3.00 
2.00 

6.00 
7.0O 
6.00 
8.00 
2.00 
.40 



.20 
.40 



2.00 

.40 

2.00 

.60 



40 p. ct ad V. 
40 p. ot ad V. 
40p.oLad V. 



40 p. ot. ad V. 
40 p. ot. ad V. 

40p. ct.ad V. 
40 p. ct. ail V. 
40 p. ct. aii V. 

40 p. ot ad V. 



Digiti 



ized by Google 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



49 



Tmijf $ohedule$ of ouaUma duties for porta in Cuba, etc.-— Con tinned. 



Old rate 
foraU 

im- 
ports, 
except 
Span- 
ish.* 



Class XI.^lNaTBUMBifTB, MACHnrEBT, and apparattts km- 

PLOTKD or AGSIOULTXTBB, INDUSTBT, AND LOCOMOTION— Con'd. 

Gboup t.—ApparcttuM and YnocAinM— Continned. 

244 I^ocomotivea and traction enrinea, Q.W 100 kiloe. . 

945 Tnratables, tracks and carts for transshipment, hydraallc 

cranes, and columns, G. W lUO kilos.. 

SIC Machines of copper and its alioys; detached parts of the 

same metals, G. W 100 kilos.. 

247 Dynamo-electric machines : 

a. Exceeding 50 kilos in weight, G. W do 

b. Weighing 50 kilos or less; inductors and detached 

parts, G.W 100 kilos.. 

245 Sewing machines and detached parts thereof, G. W. .do 

S4© Ydocipedee each.. 

250 Machines and apparatna, other, or of materials not spe- 

cially mentioned, also detached parts of all kinds 
otherthanofoopperand its alloys, G.W.lOO kilos.. 

Gboup 8 — Carriages, 

251 Coaches and berlins, new, nsed, or repaired : 

a. With four seats, and calashes with two "tableros" 
each.. 

5. With two seats,with or without folding seat; omni- 
buses with more than 15 seats ; diligences, .each . . 

e. Four or two wheeled, without "tableros," with or 
without hood, irrespective of the number of 
seats; omnibuses up to 15 seats; carriages not 
specially mentioned each.. 

252 Railway carriages of all kinds for passeneers, and fin- 

ished wooden parts for same, N. w.-.lOO kilos.. 

253 Vans, trucks, and cars of all kinds; miners* trolleys, and 

finished wooden parts for same, N. W . . 100 kilos . . 

254 Tramway carriages of all kinds, and finished wooden 

parts for same, N. W 100 kilos.. 

255 Wagons, carts, and handcarts, N. W do — 



Gboup A,— Vessels. 



256 Salrage firom wrecked vessels 

Class XII.--Alimkhtabt substances. 

Gboup 1.— Jfeot andjlsh^ butter and greases. 

250 Poultry, live or dead, and small game, N. W kilog. . 

960 Meat in brine, G.W.T lOOkUos.. 

Proposed eiassifleatloB t 

Boef, brine orialt. N. W 100 kilos.. 

Pork, brine or salt, N. W do 

201 Pork and lard, including bacon, T do 

Proposed clastlfieatioBi 

Lard, H. W do..., 

Tallow, N. W do.... 

Bacon. N. W do 

Has, N. W do..., 

282 Jerked beef (•'ta«Ho"),N. W do. 

263 Meat of all otherkinds, T 

Proposed elassillcatlon: 

Bee^ canned. N. W do. 

Beeff;ftresh, H, W do. 

Hatton.firesh.Pr. Yf do. 

Pork, ft«ih, N. W do. 



.do.... 



Pesos. 
4.50 

1.50 

27.00 

17.60 

28.50 
4.00 
6.00 

0.80 



250.00 
205.00 

130.00 

4.80 

2.10 

7.60 
3.80 



8p. 0. 
adv. 



.10 
5.60 



10.80 



8.96 
7.00 



Sate 

oriei- 

nally 

adopted 

bv 
United 
States 
foraU 

im- 
ports. 



Pesos. 
4.50 

1.50 

13.50 

8.80 

15.00 
4.00 
4.00 

2.30 



100.00 
80.00 

50.00 

4.80 

2.10 

7.60 
3.80 



8 p.c. 
adv. 



.10 
3.00 



6.30 



Per- 
centage 

of 

rod lie- 
tjuu. 



50 
60 

47.4 



33.3 



76.5 



60 
61 



61.6 



Proi)08ed 
rate. 



45.5 



41.7 



48.6 



Dollars. 
20 p. ct ad V. 

20 p. ct ad V. 

20 p. ct. ad V. 

20 p. ct. ad V. 

20 p. ct. ad V. 
20 p. ct. ad V. 
20 p. ct ad V. 

20 p. ct ad V. 



40 p. ct ad V. 
40 p. ct ad y. 

40 p. ct ad V. 

40 p. ct. ad V. 

40 p. ct ad V. 

40 p. ct ad V. 
40 p. ct ad V. 



8 p. ct. ad y. 



2.80 
2.80 



2.80 
8.00 
4.00 
6.50 

3.96 



6.00 
4.60 
4.60 
4.00 

KOTS. — The items in this class given in black fieed type have been inserted and given a proposed rate 
for the purpose of allowing a more comprehensive comparison relative to doniefllic (U. S.) products. 
-TUa does not Include additional duties of 10 per cent and proTlsional dalles leried as <*irar 
(m" since signing of protocol. 

8753 4 



Digiti 



ized by Google 



60 



COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



Tariff schedules ofoHstotM duties for ports in CuhOf ete.— Continned. 



I Bate 
Old rate ^fi' 



IH>rtfi, 

except 

Span- 

lah.* 



Uufted 
8Utes 
foraU 

im- 
porta. 



Per- 

oentace 
of 

redac- 
tion. 



Propoeed 
rate. 



Class XII.^Alimbntabt substances— Continued. 

Gboup 1.— JfM< andJUh, lutUr and ^rea«eff— Coiitinaed. 

7Ai Butter. N.W.T '. 100 kilos. 

Proposed rlassIflcatloB x 

Cheese, N.W do... 

CoBdeuRed milk, N. W do... 

265 Salt cod and atookflsh.N.W.T do.... 

aeo Fish, fresb, salted, smoked, or marinated, including weigbt 

of the salt or brine, G.W 100 kilos.. 

Proposed elssslflr atlon ; 

HerrlBf . piekled. N. W do — 

Mackerel, pickled, H. W do.... 

8alBiOB, caased, N. Yf do — 

267 Oysters of all kinds, and Bhelltish, dried or frenh, 

G.W lOOkUos.. 

287 Eggs (taken out of group 7) do. 

Gboup 2.-~(kreaU. 

268 Rice, husked or not, T 100 kilos.. 

260 Wheat,N. W do. 

270 Cereals, other, G. W do. 

Proposed c lasslllcatloB : 

Corn. N. W do. 

Rye-TC. W do. 

BarloT, N. W do. 

Oats,lf. W do. 

271 Flour: 

aOf wheat, T .do.... 

6 Of rice, T do. 

Of other cereaK T do ... 

Proposed elssslflcation : 

€oni,N.W do. 

OatSyN. W do. 

Gboup Z.— Pulse, garden produce^ and/ruiU. 

272 Pulse. dried, G.W 100 kilos.. 

Proposed elassiflcatloa: 

Beans, N. W..'. do. 

Pease, N. W do. 

273 Ganlen produce and pnlMO, fh)sh, G.W do. 

Proposed classlllcation : 

Onions, N. W •. do. 

Potatoes, N. W do. 

274 Flour of pulse. T do. 

276 Fruits, fresh, T do. 

Proposed elasslfleatloB i 

Apples, fk^sh, N. W do. 

Fruits, dried or drained, T do. 

Proposed classificatloB : 

Apples, dried, N. W do. 

Gboup 4 — Seeds and/odder. 

276 Carob beans ; seeds not specially men tioued, G. W .100 kilos . . 

Proposed classlflfatlon: 

CloTer.N. If do. 

Flax, N. W do. 

TlMothT, N. W do. 

277 Fodder and bran, N. W do. 



Peaos. 
13.20 



2.50 
L80 



2.00 
14.00 



8.82 
8.00 
2.40 



8.05 
8.75 
8.25 



2.60 



1.50 



4.35 
8.00 



4.75 



0.80 



Gboup 6.— Preserves, 

NoTB.— All preserves are dutiable with the weight 
of immediate receptacles. 

278 Fish or shellfish, preserved in oil or otherwise, in tins, 
T 100 kilos.. 



.85 



12.00 



Pesos. 
4.40 



2.50 
1.80 



2.00 
6.00 



1.20 
1.20 
1.20 



1.60 
2.00 
L60 



1.80 



.75 



2.60 
1.00 



1.75 



0.20 



1.50 



66.6 



DoUart. 

7.00 

S.M 
10 p. ۥ ad r. 

2.00 



67.1 



63.0 

60 

50 



1.00 
tf.OO 
6.00 

1.00 
6.00 



LOO 



62 

46.6 

53.8 



.60 
.40 



1.50 
2.00 



.60 
1.80 



50 



50 



1.10 
1.10 



40.2 
66.6 



63.2 



.70 
.60 

2.50 
.60 



1.50 
1.60 



75 



S.60 

.MS 
8.00 
70. 25 p. ot. ad y. 



87.5 



25 p. ot ad T. 



* This does not Inelade addltloBsl dalles of 10 per cent sad proTisloBSl duties ISTled m ** wur 
taxes" stiee slgnlny of protoool. 



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COMMERCUIi AND INDUSTRIAL CONDITION OF CUBA. 



61 



Tariff aoh^ules ofoustoma duties for ports in Cuba, etc. — Continaed. 



Old rate 
foraU 

im- 
ports, 
except 
Span* 

iah.* 



Rate 

oriffi> 

nany 

adopted 

UniLd 
States 
foraU 

im- 
ports. 



Per 

centaiie 

oir 

redac- 
tion. 



Proposed 
rate. 



Clabb XII.— AuMKfTABT 8UBSTANCB8— Continued. 

Gboup 5 PlreMrvM-Xyontinned. 

S79' Vegetables and poise, pickled or preserved in any manner, 

T...... rr .100 kilos. 

nits, preeenred: 

«. In brandy do... 

6. Other.T do... 

2S1 Alimentary preaerres not especially mentioned; pork, 
batchers* wares, traffles, saaces, and mustard, T. 
..kilog.. 

Gboup 6.— 00* and beverages. 
»3 Olive oil: 

•. In receptacles of earthenware or tin, Q. W. T 

.....100 kilos.. 

h. In bottles, including the weight of bottles. O. W. T. 
100 kilos. 

283 Aleohol and brandy, S.T hectol.. 

284 Liquors, cognac, and other compound spirits : 

a. In casks, S.T do... 

b. Inbotaesorfla8ks,aT .....do... 

Preposed elassifleationsi 

Bum, la casks do... 

Wfeiakles. la casks do... 

2« Wine«.spM'kling,&T liter. 

286 Liquor wines: 

•. In casks or similar receptacles, 8. T liter. 

h. Inbotties,S.T do... 

287 Wines, other: 

«. In casks or similar receptacles, 8. T hectol.. 

b. InboUles,S.T do. 

288 Beer and dder: 

a. In casks, S.T do. 

b. InbotUes.S.T do. 

Prepesed elassiScationi : 

Malt liqaor, casks do. 

MaltUqaar,bottiei do. 

Oder do. 



Peeoa. 
13.40 



.80 



8.75 



10.00 
14.00 



21.00 
84.00 



Peso*. 
1.40 



.10 



2.86 



3.00 
8.00 



12.00 
20.00 



89.6 



70 
70.6 



60.6 



65.2 



70 
42.8 



42.8 
4L2 



.85 



4.50 
13.00 



5.50 
7.70 



.10 



.03 
.06 



1.50 
8.00 



1.00 
1.40 



88.2 



83.8 



66.0 
76.9 



81.8 
81.8 



Dollars. 
25 p. ot. ad V. 

25p.ctad V. 
25 p. ct ad V. 



25 p. ct. adv. 



2.40 

8.00 
5.00 

10.00 
15.00 

9.00 

5.00 

.10 

.03 
.06 

1.50 
8.50 



1.65 

L83 

.80 



55.6 
66.6 



58.8 



Gboup 7 — Various. 

289 Salfroo. aaiflower. and flowers of " tobar," N. W kilog. 

290 Cinsamon of all kinds, T do... 

291 Cinnanioii, Chinfise (**canelon"), doves, pepper, ahd nut* 

meg»«T.... kilog.. 

292 Vanilla. T do.*.. 

288 Te*.T do.... 

294 CoAe in the bean or ground, chicory roots or chicory, T. 

lOOk^os.. 

2K Cocoa of all kinds, in the bean, ground, or in paste: cocoa 
butter, T lUO kilos.. 

296 Chocolate and sweetmeats of all kinds, including the 

immediate packages, T TeHos.. 

297 Bgga. (Taken out of this group and placed in group 1. 

See last item, group 1.) 

298 Pastes and fecols for soups and other alimentary pnr- 

posea 100 kilos.. 

2M Biscuits: 

a. Ofdinary.T 100 kilos.. 

b. Fine, of all kinds, including the immediate paclcage, 

T lOOkiloe.. 

999 C h ees e , including the immediate package, T kilos.. 

The following articles, heretofore prohibited, will be ad- 
mitted as follows : 

Honey, per gallon $.20 

If olaases, per gallon 06 

Sugar, raw. per pound 015 

Sugar, reflned. per pound 02 

Sawharine, per pound 1.5U 

NoTB.— The items id ven in this class in black flieed t]rp« bn ve been innerted and given a proponed rate, 
for the purpose of allowing a more compreliensive romparinfm relative to domentic (U. S.) producta. 

*TlUs dees net iaelade addltloaal daUes of 10 per cent aid .proriiloaal datiei ierled as «< war 
taxei" siace slgaiaf of protocoL 

uigiiizea oy 



7.90 
.75 



.17 

.50 



12.15 
20.25 



6.00 
8.70 
18.05 



8.50 
.25 

.07 
.60 
.80 

8.40 

5.00 

.07 



2.00 

.70 

8.80 



(See par. 200.) 



72 

76.8 

80 

66.6 
81.1 
70.9 



25 p. ot ad T. 
25 p. ct ad V. 

25 p. ct ad V. 
25 p. ct ad V. 
25 p. ot adv. 

12.15 

20.25 

25 p. ct ad V. 

25 p. ot ad V. 

.60 

2.60 



oogle 



52 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

Tariff schedules ofoustotM duties for porta in Cuhay ^/r.— Continued. 



Old rate 
for all 

im- 
porta, 

except 
Span- 
ish.* 



Rate 
origi- 
nally 
adopted 

by 
United 
State8 
foraU 

im- 
porta. 



Per 
centage 

of 
reduc- 
tion. 



Propoaed 
rate. 



Class XIII Miscellaneous goods. 

801 Fans: 

a. With moanting« of bamboo, reeds, or other wood, 
T :.: kUog.. 

h. With moun tlngo of horn , bone, oompoAltion, or metal 
(other than gold or silver), N.W kilog.. 

«. With mountings of tortoise shell, ivory, or mother- 
of-pearl; also, fans of kid skin, silk tisane, or 
feathers. N.W kilog.. 

802 Trinkets and ornaments of all kinds, except those of gold 

and sliver, N.W kilog.. 

303 A.mber, Jet tortoise shell, ivozy, coral, and mother-of-pearl : 

a. Un wrought, N.W kilog.. 

6. Wrought, N.W do... 

804 Horn, whalebone^ celluloid, meerschaum, and bone; also, 

compositions imitating these materials or those 

of the preceding nnmber: 

a. UnwTonght, N.W kilog.. 

h. Wronght,N. W do... 

805 Walking sticks and sticks for nmbrellas and parasols 

hundred.. 

806 Buttons of all kinds other than gold or silver, N.W. . kilog . . 

807 Hair, hnman, manufactured into articles of all kinds or 

any shape, N.W kilog.. 

308 Cartridge8, with or without proieotlles or bullets, for un- 
prohibited firearms; also, primers and caps for 
such arms, T 100 kilos.. 

809 Tarpaulins coated with sand, for vans; fblta and tow, 

tarred or coated with pitch, G.W 100 kilos.. 

810 OUcloths: 

a. For floors and packing pnriKMes, T do — 

h. Other, T kilog.. 

Pads and brief oases of oilcloth shall be liable to a 
surtax of 40 per cent 

811 Cases: 

a. Of fine wood or leather, lined with silk; other simi- 
lar cases, N.W kilog. 

h. Of common wood, cardboard, osier, and the like, 
N.W kilog. 

812 Artificial flowers of tissue, also pistils, buds, leaves, and 

seeds, of any kind of material for tne manufac- 
ture of flowers, N.W kilog.. 

813 Matches of wax, wood, or cardboard, including the imme- 

diate packages, N.W kilog.. 

814 Caoutchouc ana guttapercha manufacture4 io any shape 

or into any kind of article not specially men- 
tioned, T kilog. 

815 Games and toys, other than those of tortoise shell, ivory, 

mother-of-pearl , gold or silver, T kilog . 

816 TTmbrellas and parasols : 

a. Covered with silk each.. 

a. Other do... 

817 Oil paintings per cent ad val.. 

818 Hats of straw or "guano " bast, straw of Curacoa, and 

the like dozen.. 

819 Hats of "yarey," leghorn or Indian straw, rice straw or 

esparto, and their imitations: 
a. Shaped or not, but without lining, ribbons, borders, 

or trimmings doeen.. 

h. Finished, or with either of these accessories, .dozen. . 

820 Hats known as "JipUapa," having: 

a. Up to 4 straws inclusive do... 

h. Or f^om 4 to 6 straws indnsive do... 

c More than6 8trawa do.., 

821 Hata of woolen felt: 

a. Shaped or not, but withoat ribbons, borders, or 
lining, and shapes for the manufacture .of these 
hata dosen.. 

h. Finished, with ribbons, borders, or lining, or with 
either of these accessories dozen.. 



Pesos, 
.75 

2.60 

8.80 

3.76 

2.20 
6.55 



1.20 
2.60 

10.00 
.70 

5^00 

60.00 

.66 

11.25 
.20 



2.25 



8.50 



.80 

.40 

0.60 
.20 
20 



8.00 
2.90 

4.50 

8.00 

80.00 



1.6(1 
8.20 



Pesos. 
.15 



.80 
.75 



1.00 
1.80 



.60 
1.20 



4.00 
.20 



30.00 



8.00 
.06 



.76 



1.00 
.20 

.05 

.10 

0.10 
.05 
20 

.10 

1.40 



4.50 
8.00 
80.00 



.40 
.80 



IhUars. 



78.9 



54.5 
67.6 



50 

53.8 



60 
71.4 



50 
60 



78.8 
70 



66.6 
76 

71.4 
76 

83.8 

75 

83.3 
76 



.16 
.60 

.80 

.75 

1.00 
1.80 



.60 

1.20 



4.00 
.20 



6.00 
80.00 



8.00 
.06 



.76 
.30 

1.00 
.20 

.05 
.10 



76.2 



63.8 
72.4 



0.10 

.05 

25 p. ct ad V. 

.10 



L40 
.80 

4.60 

8.00 

80.00 



76 

76 



.40 
.80 



*Thls does not Include additional datlei of 10 per cent and proTiiional dntlei IsTied as <<war 
taxes*' ilaee signing of protocol. 



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COMMEBCIAL AND INDUSTRIAL CONDITION OF CUBA. 



53 



Tariff schedules of cueioma duties for ports in Cuba, 


etc. — Continued. 






Bate 








Old rate 


oriel- 

nafly 

adopted 

United 

States 

for all 

im- 








foraU 

im- 
ports, 
except 
Span- 

iJh.* 


Per- 
centage 

of 
reduc- 

Uon. 


Proposed 
rate. 






ports. 






CLAflS Xni.— MmcKLLAKEOUS GOOD&— Continued. 










323 Hate of felt or hair, carded or not, and those of silk, 










TelTOt, olotli, cashmere, satin, or plush: 










A. Shaped or not, but without ribbons, borders, or 
lining, and shapes for the manufaeture of these 
hats dozen.. 










Pesos. 
3.75 


Pssos. 
.75 


80 


Dollars. 

.76 


h. UnishcdT with ribbons, borders, or lining, or with 










either of these acceesories dozen.. 


5.50 


1.00 


81.8 


LOO 


m Hats for ladies or children, with whatever kind of trim- 










324 Caps of all kinds dozen.. 


1.C5 


.40 


75.8 


.40 


1.80 


.40 


77.8 


.40 


82S Waterproofandoaontohouo stuffs: 

a. On cotton tissue,! kilog.. 










1.00 


.25 


75 


.25 


6. On woolen or silk tissue, T do.... 


2.00 


.50 


75 


.50 


CLAB8 XIY.— T(»ACCO. 










826 A. In cakes, so-called " breva," or in carrots. 100 kilos. . 


10.50 


10.50 




10.50 


b. In powder or snufT, or otherwise manufactured. 




Dollars, 






per pound 


aL20 


.12 




.12 


c Leaf tobacco, stemmed or unstemmed, wbetherl 
wranner or filler................. ner nonnd../ 




f 1.501 
1 1.00/ 




5.00 








d. Cigars, cigarettes, cheroots of all kinds do. . . 




8.00 

51.50 

LOOJ 


{ 


$4.50 and 25 
p. ct ad V. 


shall be subject to the same duties as are herein 








imposed on cigars. 










S97 On all other goods, warss. nerehandlie, and effects, not 
otherwlsA eaniaeraied or nroTidsd for. . ......... 
















26p.ctadT. 


VWwJt VW U^V VIB Hfl^ Va WMTwl w& y W V*1>V«. *v* .............. 









Slilogram. b Per M according to weight. 

* TMt does not Inelvde additional duties of 10 per cent and prorlilonal duties leried as *^ war 
Lxea" ilnce ilgnlng of protoeoL 

FREE LIST. 

The nndermentioned articles may be imported into Cuba exempt 
firom the duties stipulated in the tariii's on compliance with the pre- 
scribed conditions and the formalities established for every case in the 
customs ordinances: 

Manures, natural. 

Trees, plants, and moss, in a natural or fresh state. 

National products returning from foreign exhibitions, on presentation 
of the bill of lading or certificate proving their exportation from the 
island and of satisfactory evidence attesting that such products have 
been presented and have been shipped to their point of departure. 

Carriages, totined animals, portable theaters, panoramas, wax figures, 
and other similar objects for public entertainment, imported temporarily, 
provided bond be given. 

Beceptacles eximrted from Cuba with fruits, sugar, molasses, honey, 
and brandy, and reimported empty, including receptacles of galvanized 
iron intended for the exportation of alcohol. 

Specimens and collections of mineralogy, botany, and zoology, also 
smsdl models for public museums, schools, academies, and scientific and 
artistic corporations, on proof of their destination. 

Used frimiture of persons coming to settle in the island. 

Samples of felt, wall paper, and tissues, when they comply with the 
following conditions: 

(a) When they do not exceed 40 centimeters in length, measured in 



uigiiizea oy -^^jv/^^/ 



^,v 



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KEPOKT 



ON THE 



COMMERCIAl AND INDUSTRIAL CONDITION OF COBA, 



BY 



ROBERT P. PORTER, 

SPECIAL C OMM1S8IONER FOR THE ITNTTED STATES 
TO VJTRA AXI> PORTO RICO. 



SPECIAL BEP0BT8 OH THE BSVEinrE AND CUSTOMS TABIFF (IHCLimmO THE 

BUDGET OF CUBA), IHTEBHAL, HTDUSTBIAL, AKD PBOFESSIOHAL 

TAXAnOH OF CUBA, AND TESTDIONY AKD STATEKENTS IN 

BELATION TO THE NEEDS OF CUBAN PLANTERS. 



Kespeotiully submitted to 

Hon. LYMAN J. GAGE, Secretary of the Treasury, 
Washinytonf D. C, November 16, 1898, 



WASHINGTON: 

GOVERNMENT PRINTING OFFICE, 
1898. 



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SPECIAL EEPOET 
REVENUE AND CUSTOMS TARIFF. 



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REPORT ON THE COMMERCIAL MD INDUSTRIAL 
CONDITION OF CUBA. 



SPECIAL REPORT ON THE REVENUE AND CUSTOMS TARIFF. 



Tbbasuby Dbpabtment, Office of the 
Spbcial Commissioner fob the United States 

TO Cuba and Porto Rioo, 

November 15, 1898. 
Sib : In tbe revisions of the tariff of the United States those engaged 
on the work have the advantage of exact statistics of importation. It 
is possible to ascertain the actual number of tons, of pounds, of yards, 
of bushels, and of gallons, and, in short, the quantity and value of 
every important commodity. Complete details of this sort are not 
obtainable in relation to Cuban imports, and the statistics available 
are far from reliable. Indeed, in three of the principal custom-houses 
those in authority told your commissioner that but small reliance can 
be placed upon the figures which are obtainable. These relate almost 
entirely to values, and are therefore subject to many more uncertainties 
than the more accurate exhibits of exact quantities. For this reason 
the only practical method of gauging the relative revenue producing 
powers of the thirteen schedules of the Cuban tariff is by a recapitu- 
lation of the values of importation^.by principal tariff classes. Detail 
tables showing the quantities of certain articles imported in 1895 have, 
however, been compiled from data at hand, and form part of this report. 
In the following table the year 1895 has been selected, because it may 
be regarded as the last normal year, the war period having so disturbed 
commerce that changes based on figures of imports during that period 
"would be misleading. In this table will also be found an approximate 
estimate of the percentage of reduction of duties resulting from the 
adoption of the Santiago tariff, or "minimum column" of the Spanish 
tariff, over the rates which Spain enforced by the tariff of 1897, against 
the imports from countries other than Spain. 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



Nam1)er of schedule. 



Commodity. 



Value imports I SS^f 
iMR*^ .average of 

redaction. 



1895. 



ClSHS 

Class 
Class 
Class 
Class 



Class 
Class 
Class 
Class 
Class 
Class 
Class 



I Stones, earths, ores, etc 

II Metals, and manufactures of 

Ill Pharmacy and chemicals 

rV Cotton, and manufactureis of 

y Hemp, flax, JQte, and other vegetable 

fibers, and manufactures of. 
Class VI Wools, bristles, etc.. and manufac* 

tures of. 

VII Silk, and manufactures of. 

Vm Paper audits applications 

IX I Wood, etc., and manufactures of 

X \ Animals and animal wastes 

XI I InHtniments, machinery, etc 

XII Alimentary substances 

XUI Miacellaneous 



$4, 783, 358. 12 
2,063,281.05 
2, IM, 414. 02 
5,008,202.23 
3,587,718.23 

1,000,192.13 

315.010.00 
1,257,132.94 
2, 054, 057. 57 
8,880,209.64 
2,123,315.43 
31,179,289.98 
1,115,156.51 



Ptremt. 
64.1 
62.1 
58.1 
68.7 
62.5 

70.4 

76.0 
63.1 
61.8 
60.6 
61.5 
6L8 



Total 

General average all classes . 



61.443,334.65 



62 



It will be seen from the tbregoing exhibit that schedule 12, ^^Alimen- 
tary sabstances," covering all food products, is the most important 
of all the schedules, representing more than half the total imports into 
Cuba during 1895, aud aggregating over 131,000,000. Next in impor- 
tance to this is schedule 4, ^^ Cotton and manufactures thereof," aggre- 
gating nearly $6,000,000, or 10 per cent of the total imports; schedule 
1, "Ores, etc.," aggregating in the neighborhood of $4,750,000, ranking 
third, and so on through the list. 

It may be stated in round figures that the difference between the 
maximum and minimum rates of the Spanish tariff was about two- 
thirds— that is to say, the rates exacted from countries other than Spain 
were, on the average, about two-thirds higher than those which Spain 
exacted from commodities coming ^m that country or the Spanish 
colonies. Enormous as is this differential duty against the Cubans 
purchasing in markets other than the mother country, it does not tell 
the whole atory. The above table was worked out by ascertaining the 
amount of reduction on every separate item mentioned in the Cuban 
tariff, as it was originally framed by the Spanish Government and put 
in operation September, 1897. Since then additional war taxes have 
been enacted and still more onerous charges exacted. 

A comparative table, therefore, showing the present rate of duty on 
articles coming into Cuban ports in the possession of the United States 
and the present rate of duty on articles of import coming into Cuban 
ports in possession of Spain, would show a still greater difference, a 
difference which would probably warrant the statement that the present 
tariff enforced by the United States is not much over 25 per cent of the 
tariff which Spain at the present moment is exacting for goods from 
countries other than Spain which may be imported into ports of the 
island still in the possession of the Spanish Government. In the dilSer- 
ent calculations allowance must be made, however, for the fact that 
the calculations were based on the items of the tariff and not on the 
rates of duties together combined with the quantities imported. For 
this reason the table is only valuable in showing the great discrimina- 
tion and can not be used as a basis for estimating revenue. 

uigiiizea oy x-jOOvLC 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



In conjonction with the above table, the following recapitulation of 
values of exports and reshipmeats into Cuba during 1896 is given: 



Recapitulation of values of exports and reshipmenta in 


Ouha during 1896. 


ExporU. 


First quarter. 


Second i Third 
quarter. i quarter. 


Fourth 
quarter. 


Total. 


Clasttt pf good$. 
Timber 


$286, 100. 70 


^<?7 offs.i? ' «2nn R7«'n3 


$130. 463. 00 

6. 666, 672. 71 

7.572.016.36 

8, 846. 30 

121,991.00 

1,112,242.44 


$884, 601. 10 


C^ 

M JaLes. ....... . ...v.'.'.. 


6, 616, 458. 97 | 4, 374. 938. 70 i 6, 389, 770. 95 

26,288,456.91 30,457,278.50 1 10,679,269.55 

427, 886. 11 1, Oie, 657. 36 , 152, 205. 65 

352, 393. 44 292, 808. 18 267, 277. 53 

1, 832, 714. 86 2, 538, 509. 69 , 2, 738. 024. 01 


24. 047. 841. 88 

74,997.021.32 

1,599,595.41 

1, 034, 470. 15 


Rum and liqaors 


Other articles 


7, 721, 491. 00 






Total 


35,304,100.99 

15,462.65 
61,343.08 


38, 941, 260. 89 20, 427, 425. 72 
1 
8,477.01 17,567.05 


15,612.232.71 
27. !524. 08 


110, 286, 020. 31 
69, 081. 60 


R€$hipment. 
]Fos«i£it iroofls 




27,477.62 28,718.17 | 29,276.63 


146. 815. 40 






Total 


76,805.73 85,955.53 46,285.22 | 56,800.61 


215, 847. 00 






Spccrial e'xporfrB 


207.4T7.55 1 166,881.15 2, 092, 960. 13 | 153,326.80 


2, 620, 645. 13 




Grand total 


35, 588. 384. 27 , 39, 144. 097. 57 22, 566, 071. 07 | 15, 822, 359. 62 


113,121,512.53 



The grand total of the trade of the Cuban ports for the last normal 
year was nearly $175,000,000. Perhaps with allowance for smuggling 
and undervaluations this total may have reached $200,000,000 — possi- 
bly exceeded those figures. However this may be, Cuba, under a sat- 
isfactory government and normal conditions, may be easily said to rep- 
resent from $200,000,000 to $250,000,000 in the world's commerce. 
This fact gives some idea of the vast trade possibilities of Cuba, after 
a complete rehabilitation and industrial reconstruction of the island. 

REVENUE AND BXPENDITUBES. 

The revenue and expenditures of the island of Cuba for the fiscal 
year 1898-99, according to the reports obtained from the honorable 
secretary of the treasury, Marquis Eafael Montoro, may be thus sum- 
marized:* 

*The foUowing balance sheet of receipts and expenditures of the government of 
Caba for the three years prior to the ten years' war will be of especial interest at this 
time; they show that the estimated revenue and expenditure for 1898-99; as made by 
Marquis Montoro, are about the same as these budgets of thirty years ago : 

Budget of the island of Cuba. 
1863-1864. 



Expenditoree. • 


Amount. 


Receipts. 


Amount. 


Geneml exopDditnroB. ............ 


$856, 474. 00 

906, 525. 00 

7,692,584.00 

8, 158, 298. 00 


XaxeB and imposts* .............. 


$4, 561, 446. 00 


SlAte-choroh and iustice 


Cnstoni-houses 


11,924,451.00 


War 


Internal revenue 


1, 218, 257. 00 


Troaanrv ...... ........i. ........ 


Lotteries 


8, 733, 980. 00 


J»^- •-■-; 

Goveminent 

Public works - 


3, 782. 877. 00 

2, 106. 100. 00 

906,314.00 

354, 320. 00 

3,466,700.00 

1 


State propertj* 


3, 530, 079. 00 


Receipts from all other sources. . 
Industry and commerce a 

Total 


491,911.00 
2, 139, 932.00 


Pemflndo Poo •.•••.•••.••••• 


Contribation to Spain 




State 




Total 






28,320,192.00 | 


30,460,124.00 





Receipts $30,460,124.00 

Expenses 28,320,192.00 

Excess 2,139,932.00 

a Not included in addition. 



/Google 



8 



COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



B^Umce of the estimated receipts and expenditures of the budget of the island of Cuba 

for 1898-99, 



Expenditures. 


Amount ' Eeceipts. 


Amount. 


SoTereiflmtv eziienditure 


$22,500,808.59 

159,605.50 

1,612.859.44 
708,978.51 
247,033.02 

1,036.582.10 

108, 178. 52 1 


Taxes and imposts ^ 




Local: 

Oeneral exoenditnres ......... 


$6, 142, SCO. 00 




Custom-houses 


14, 705, 000. 00 


TreASQry - ...-.-...-. 


Internal revenue 


1, 640, 650. 00 


Public instmctioii 


Lotteries 


1, 900, 500. 00 


Pnblin works and commnni. 


State nrooertv ........... ..... . 


436, 000. 00 


Cfttions . • ........... 


Miscellaneous revenue 


1,536,000.00 


Agrionlture, industry, and 


Estimates of total revenue. 










Deduct amounts not specified 


26,874,045.68 
17,314.27 1 




Total 


26,356.731.41 

1 


26,360.660.00 







Reoeipte $26,350,660.00 

Expenses 26,356,731.41 



Surplus. 



2.018.59 



1864-1865. 



Expenditures. 



Amount. 



General expenditures 

State-church and justice . 

War 

Treasury 

Navy 

Government 

Public works 

Fernando Poo 

Contribution to Spain 

Stote 



$854. 

951, 
8,112, 
7,973, 
3,970, 
2,436. 

651. 

233, 

000. 

000, 



248.00 
829. 00 
871.00 
010.00 
223.00 
725. 00 
337.00 
478 00 
000.00 
000.00 



Total ; 25,349, 72L00 



Becelpts. 



Taxes and imposts 

Custom-houses 

Internal revenue 

Lotteries 

State property 

Receipts from all other sources . 
Industry and commerce a 



Total. 



Amount. 



$4,804,827.00 
12,661,012.00 
1,204,353.00 
8. 734, 080. 00 
2,321,605.00 
530, S40. 00 
4,908,296.00 



30,258,017.00 



Receipts . . 
Expenses . 



$30,258,017.00 
. 25,349,721.00 



Excess 4,908,296.00 

a Not included in addition. 

1865-1866. 



Expenditures. 



General expenditures 

State-church and justice 

War 

Treasury 

Navy 

Government 

Public works 

Fernando Poo 

Contribution to Spain . . . 
State 



Total. 



$1,501,185.00 

977,380.00 

8,133,499.00 

7, 806, 638. 50 

4, 009, 220. 00 

2,642.206.00 

763, 931. 50 

288, 224. 00 

000,000.00 

000, 000. 00 



Receipts. 



Taxes and imposts 

Custom-honses 

Internal revenue 

Lotteries 

State property 

Receipts fl'oni all other sources. 
Industry and commerce a 



26,212,284.00 



Total . 



Amount. 



$5, 173, 485. 00 
13.536,020.00 
1.468,838.00 
8,734,980.00 
2, 409, 800. 00 
534,550.00 
5,645,388.00 



31,857,673.00 



Receipts . . 
Expenses . 



$31,857,673.00 
26, 212, 284. 00 



Excess 5,645,388.00 



L 



a Not included in addition. 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 9 

While the revenues are all derived from the various species of taxa- 
tion exacted from the people of Cuba, the expenditures are divided 
into two important classes — those under the head of <^ Sovereignty 
expenses," or expenses of tbe General Government, which, according 
to this estimate, aggregate $22,500,808.59, and those which, under the 
head of "Local expenses," aggregating $3,873,237.09, constitute the 
expenditures for the immediate necessities of the island. In order to 
obtain a clear view of the possibilities of revenue and the probable 
fntore expenses of tbe island of Cuba these receipts and expenditures 
should be further examined. 

The detail tables will be found immediately following tbe report, the 
summaries being sufficient for the present purpose. Taxes in Cuba, 
as will be seen from tbe above exhibit, are collected under six gen- 
eral classifications, namely: (1) Taxes and imposts, including excise 
and liquor taxes, and taxes on railway freight and passengers. (2j 
Receipts from custom houses, which include taxes on imports and 
exi)orts, loading and unloading merchandise, fines and passports. (3) 
Internal revenue, including stamped paper,* postage stamps, warrants 
for payment issued by the state, diplomas and titles, stamps on letters 
of exchange or deeds of transfer, on insurance policies, on matches, and 
on almost every other conceivable sort of deed and document. (4) Lot- 
teries, which are put down in the above table as yielding $1,900,500, 
though it is doubtful if anything like that amount will be realized. In 
this connection it may be well to mention that an interesting question 
propounded your commissioner when in Havana was, What will be the 
action of the United States Government in relation to the lottery 
already under way, and for which the Spanish Government has received 
money for tickets sold! The drawing for this lottery will not take 
place until after the military occupation of the island by the United 
States. It is not probable that this source of revenue will be retained 
under the United States administration of afi'airs. (5) Eevenue from 
state property, including rents and sale of lands and rent from docks. 
(6) Revenue from miscellaneous sources, some of which seem somewhat 
mythical. 

These comprise the general sources of revenue which appear in this 
report and from which the secretary of the treasury, Marquis Montoro, 
hoped to secure the following sums: 



Sources of revenue. 



1. Taxes and imposts 

2. Custom •booses 

3. Internal revenae 

4. Lotteries 

6. State property 

6. Miscellaneous revenue . 



Total estimated revenae . 



Estimated 

araonntr 

Spanish 

gold. 

$6, 142, 500 

14, 705. 000 

1,640,650 

1, 900, 500 

435,000 

1, 536, 000 



26. 359, 650 



* In Cuba you mast use stamped paper in writing to government officials. TJie 
higher the official the more expensive the stamped paper to be ased, and, as only a 
certain number of words are allowed per sheet, correspondence with those in author- 
ity may become expensive. ^ j 

uigiTizea by VjOOQIC 



10 COMMERCIAIi AND INDUSTRIAL CONDITION OF CUBA. 

As to how much of this has been collected^ or how much can be col- 
lected, it is impossible to say with any degree of certainty. Spanish 
official reports are not very reliable documents at the best, and during 
the last three years of internal dissensions, frequent changes in oiHcials, 
and war, they appear to be at their worst. The only possible light on 
the subject which your commissioner was able to obtain was a state- 
ment of the actual taxes as levied between 1887 and 1897, inclusive, 
and the actual amounts collected at the custom-houses and by the Bank 
of Spain in Cuba, for the latter institution has a contract to collect all 
taxes other than customs. These tables will be found elsewhere in 
detail. 

According to these figures — and they were compiled under the direc- 
tion of your commissioner by persons believed to be reliable and who 
had access to public documents — the custom-house receipts of Cuba fell 
from $14,708,509.10 in 1895 to $9,648,369.94 in 1897-98. While the 
value of the tax receipts handed to the Spanish Bank for collection 
for the fiscal year 1896-97 exceeded $5,000,000, the actual money col- 
lected was only $3,266,583.37, while for the next fiscal year, 1897-98, 
out of receipts aggregating in the neighborhood of $4,500,000, only 
$2,377,712.21 was realized. The exhibits show that rural real estate, 
which under prosperous conditions should yield in taxes from $880,000 
to $1,000,000, is incapable of paying anything. Out of receipts aggre- 
gating in 1897-98 over $800,000, the Spanish Bank only collected 
$89,661.98 from these properties. Nor will it be possible in the recon- 
struction of the island to secure revenue from these sources, for the 
burned and destroyed estates are yielding nothing to their owners. 
City property, which in times of prosperity should yield upward of 
$2,000,000 or even $3,000,000, in 1897-98 only yielded $1,140,230.12. 

This tax, however, and the receipts from customs will be the first to 
recover, as the immediate effects of permanent peace and honest gov- 
ernment will be felt in the cities and towns and seaports. Lotteries 
will become a doubtful, if not impossible, source of revenue. The col- 
lections from internal revenue may keep up to the estimate, though the 
income from State property and miscellaneous revenues seems upon 
examination a rather doubtfril resource for the new government to rely 
upon. Judged from the actual revenue collected in 1897-98, had pres- 
ent conditions prevailed, it is extremely doubtful if the real revenue 
collected for 1898-99 will reach more than half the rosy estimates put 
forth by the Marquis Montoro. The fact is apparent to those who know 
existing conditions in Cuba that the people of the Island are just now 
in such an impoverished condition that the agricultural interests are 
simply incapable of paying taxes. 

The cities will soon be all right again, and, under honest municipal 
government, taxes on urban property will be paid. The influx of com- 
modities of all sorts, to make up for losses and destruction Dy war and 
low stocks due to the blockade, will increase the custom- house receipts. 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 11 

The reduction of duties on machinery and railway supplies may increase 
the importations of these articles, and thus the lower rates of duty will 
yield a revenue which the present high rates, by making importations 
impossible, fail to do. By putting an end to smuggling, and by hon- 
estly administering the custom- houses, the United States Government 
may increase the revenue, but the proposed reduction of duties will 
ofibet this. Unless, therefore, some new source of revenue is found 
practicable, and the Spanish seem to have exhausted all known means 
of raising revenue, reliance for the future will have to be on five of the 
six revenue sources above enumerated. If for the first year or two they 
should yield in all $15,000,000, it will probably be all the revenue that 
may safely be estimated. Much will naturally depend upon the for- 
eign imports. 

Aside from special imports, such as specie, leaf tobacco, etc., the 
value of the imports into Cuba the last normal year (1895) was upward 
of $60,000,000. An average tariff rate of 25 per cent on this valuation 
of imported merchandise would itself yield $15,000,000. As a matter 
of foct, the duties collected in 1895 were $14,587,920.57, on a total 
importation of merchandise other than specie of $61,443,334.65, or 
about an average of 25 per cent. To be sure, the nominal tariff rates 
were much higher in 1895 than they will be in 1899, but there is a pos- 
sibility of making up for the loss by reason of lower duties by abolish- 
ing smuggling and honestly administering the custom-houses. It is 
impossible, however, to estimate on this, because to do so with any 
degree of success it would be necessary to red ace to figures the losses 
of revenue by smuggling, undervaluation, and misclassification. This 
is an impossibility. 

THE CUBAN TARIFF. 

The tariff which the Spanish Government enacted and put in force 
in the island of Cuba in September, 189f , and which, with modifications 
in the shape of war taxes, is in force to-day in the ports of Cuba in 
possession of the Spanish Government, is based upon the preceding 
tariffs. Both this tariff and its predecessors seem to lack rational basis 
so far as Cuba is concerned, the aim apparently being to secure by the 
means of exorbitant customs duties revenue for the Spanish exchequer 
and profits for Spanish subjects, without the slightest regard for the 
welfare of the people of Cuba. While the duties seem to have been 
levied with this idea, the classifications and methods of administration 
are so complicated and obscure, that they easily lend themselves to 
every known species of revenue fraud, from false classifications and 
undervaluations to smuggling of the most barefaced character. In 
fact, after a careful inquiry into the Cuban tariff' as at present consti- 
tuted and an examination of several hundred witnesses in Havana and 
other cities of Cuba, the conclusion is reached that almost every form 
of revenue iniquity has been perpetrated by the ruling powers upon the 
people of this island. 



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12 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

The tariff was not only constructed in a way that compelled the Gnbaa 
producer to purchase the articles he needed, and could not himself man- 
a&ctare, of Spain, instead of in the cheaper markets, but it levied almost 
prohibitive duties on such articles as Spain could not under any circum- 
stances send to Cuba. For example, the Spanish exporter wits able, by 
a discriminating duty against other countries of more than 100 per cent, 
to import from Minnesota to Barcelona American flour, and reship it to 
Oaba at a price just below the price of the American article shipped 
direct to Cuba, upon which a duty nearly three times as great as that 
exacted from Spain had to be paid. On the other hand, Spain took little 
interest in such articles as machinery and railway supplies, including 
steel rails and locomotives, because she neither produced them nor could 
she purchase elsewhere and reship as Spanish production. For these 
and similar reasons it has not been deemed wise to recommend for adop- 
tion by the Government of the United States the tariff in its entirety 
which Spain levied on all merchandise shipped from ports of Spain to 
X>orts of Cuba. 

The tariff' popularly known as the " Santiago tariff," adopted by the 
United States Government for ports of Cuba in possession of the 
United States, while the best available measure for the exigency which 
arose last July, if continued will prove a hardship to the Cuban pro- 
ducer and an injustice to the Amerif^an manufacturer. It has there- 
fore been decided, after a full conference with the officials of the 
various divisions of the Treasury Department, who have the prepara- 
tion of these revenue laws for Cuba, and the War Department, which 
has charge of the promulgation and enforcement of the Cuban tariff 
during the period of military occupation, to submit with this report 
recommendations for such changes in rates and revisions in adminis- 
tration as will relieve the people of Cuba of unnecessary exactions and 
bring about closer reciprocal trade relations between the United States 
and Cuba. In all these suggested changes of rates the question of suf- 
ficient revenue for an honest and economical administration of the 
public affairs of the Island has been kept in mind^ and, as will be seen 
farther along, there are substantial reasons for the belief that the tariff 
as revised will yield sufficient revenue for legitimate exi>enses during 
the occupancy of Cuba by the forces of the United States. 

The duties in the several tariffs of Cuba which have been in force 
during recent years are made payable by weight alone, and not, as in 
the United States, by a mixed system of weight, measurement, quan- 
tity, and value. The basis is the kilo or 100 kilos, though, in addition 
to the duty levied on the weight of the article, the Spanish Govern- 
ment is just now exacting an ad valorem duty of 10 per cent on the 
official value of the commodity, as well as an additional duty, or *< war 
tax," as it i& called, of 20 per cent on the specific duty called for in the 
schedule. Kor do the complications of the present vicious tariff end 
with a specific duty levied by weight upon goods, the quality of which 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 13 

in some instances will range as 1 to 10, thus making the daty pecul- 
iarly severe on the cheaper article, an additional tax on the duty thus 
assessed of 20 per cent ad valorem and a 10 per cent ad valorem on the 
official value of the article (not the invoice value); but these duties are 
payable in three kinds of currency, all differing in value. The intri- 
cate calculation once made, and the unloading and port taxes included, 
it then requires another arithmetical process in order to reduce the 
Spanish silver and paper to Spanish gold, and yet another to reduce 
the Spanish gold, which is given a fictitious value, to United States 
currency. As a simple example of the intricacies of the Cuban tariff 
and as an illustration of some of the difficulties encountered in unrav- 
eling its mysteries, the following statement of the duties assessed on a 
ton of flour imported from the United States into Havana, the amount 
paid being finally reduced to United States currency, is presented: 

HovD the duly U assessed on a ton of American flour imported into Havana. 

• Official Talue of floor per 1,000 kilos $70 

Duties. 

1,000 kilos $39.50 doty ($15 regular and $24.50 diflfereutial). 

1. 00 tonnage tax. 

40.50 
8. 10 war tax, 20 per cent. 



48.60 
. 25 port charges. 



48.85 



7.00 (additional transitory duty of 10 per cent of official 
value payable in bank bills). 

Of the above duties 80 per cent is payable in gold, 20 per cent is payable in silver, 
and the 10 per cent ad valorem is payable in bank notes. 

The above reduced to United States currency would be : . 

Gold. 

80 per cent of $48.85 $39.08 

20 per cent of $48.85, $9.77 (silver) 6. 44 

10 per cent ad valorem $7 (bank notes) 70 



46. 22 at 10 per cent, $42.02 United 
States currency. 

From the above it will be seen that 80 per cent of the customs duties 
in force in Cuban ports in the possession of Spain is payable in gold at 
a fictitious value of 106 cents on the dollar, 20 per cent payable in 
silver, value fluctuating from day to day, and the 10 per cent ad valorem, 
payable in bank notes, value less thaji 10 cents on the dollar. In place 
of this variegated assortment of rates, the rate of duty for a ton of flour 



* It will be noted that the "official value*' of fluur is aboat doable its present actual value in the 
world's market. This value is established by Spanish laws on all articles and forms part of the tariff. 
Dntieft ma«t be assessed on this value and not on invoice value, though in some cases it is donble and 
even treble the market value of the commodities. 



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14 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

in the proposed tariflf will be put at $15 per ton, or $1.50 per sack of 
100 kilos (220 pounds), payable in United States currency. This seems 
a high rate for au article of prime necessity; but, as will be seen by a 
glance at the above table, it is a reduction of nearly two-thirds from 
the present rate adopted by the Spanish authorities on flour coming 
into Cuba from the United States. While discussing methods of 
assessing rates of duty found to be in vogue at the present time in 
Havana, attention is directed to a few other settlements of duties on 
articles of everyday consumption, an examination of which will con- 
vince a business man, no matter how experienced in importing, that no 
human being could forecast exactly the amount of duty the custom- 
houses of Cuba would exact on a bill of goods until the settlement was 
placed before him.* 

* Sample invoices of Havana cnsiom-houee. 

Settlement of datieA oa 10 cases baoon ; gross vreight, 2,500 kilos : 

Net weight, 2,200 kilos, by 10.80=100 $237.60 

Unloading tax ($1 per 1,000 kilos) 2.50 

20 per cent additional tax 48.02 

Port charges (25 cents per 1,000 kilos) .02 

288.74 
Official value, $660; 10 per cent, f66, payable in bank bilLi. 

Settlement of duties on 10 tierces lard; gross weight, 2,100 kilos: 

Net weight, 1,848 kilos, at $10.80 per 100 kilos 199.68 

Unloading tax 2.10 

20 per cent additional tax 40.38 

Port tax .62 

242.63 
Official value. $561.40; 10 per cent, $55.44. 

Settlement of 10 boxes codfish, weighing 550 kilos : 

560 kilos, at $2.50 per 100 kilos 18.75 

Unload ing tax .55 

20 per cent additional tax 2.86 

Port dues .14 

17.30 
Official value, $71.50; 10 per cent, $7.15, in bank bills. 

. Settlement of 10 bags of cofiee; gross weight, 1,000 kilos: 

Net weight, 900 kilos, at $12.15 per 100 kilos 109.35 

Unloading tax 1.00 

20 per cent additional tax 22.07 

Port dues .25 

132.67 
Official value, $225; 10 per cent, $22.50, in bank bills. 

Settlement of duties on 10 drums codfish, weighing 600 kilos : 

600 kilos, at $2.50 per 100 kilos 15.00 

Unloading tax .60 

20 per cent additional tax 3.12 

Port dues .16 

18.87 
Official value, $78; 10 per cent, $7.80, in bank bills. 

Settlement of 5 bundles empty bags, weighing 2,500 kilos: 

2,500 kilos, at $7.58 per 100 kilos 189.50 

15 per cent additional tax 28.42 

Unloading tax v 2.50 

20 per cent additional tax 44.08 

Port dues .62 



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_^ 265.12 

Digitiz 



COAfMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 15 

The danger of the United States adopting the Santiago tariff, which 
Spain cunningly prepared in her own interests, may be emphasized by 
the selection from the schedules of a few items of prime necessities, 
n^rly all of which come from the United States, and comparing these 
rates with those levied under the McEanley treaty, the tariff of 1892, 
the tariff of 1897, and the tariff of 1898, and the tariff against foreign 
countries of 1898, which is now enforced in ports of Cuba in the posses- 
sion of the United States Government. 

For this purpose a table has been worked out in American currency. 
The reason for using American money as the basis for comparison in 
this case is the fact developed in the table, that with the payment of 
duties in American gold instead of Spanish gold, the duties will be 
slightly enhanced, and hence we find the rates levied by the Santiago 
tariff will in some instances be quite equal to those exacted by the 
Spanish tariff of 1897, and only slightly less than those now exacted 
after adding the additional "war taxes," 

(MBcial valne, $546.25; 10 per cent, $54.«2, in bank biUs. 

Settlement of 10 barrels beans, weighing 1,400 kilos : 

1,400 WloB, at $2.e0 per 100 kflos $38.40 

Unloading tax 1.40 

ao per cent additional tax 7.66 

Pofrtdnes .86 

45.71 
Official value, $91 ; 10 per cent, $0.10, in bank bills. 
Total amount of cnstom-honse duties on 30Q demfjohns gin imported : 
300 demjjohna gin, weighing, gross, 5,800 kilos, containing 4,800 liters gin, with alcoholic 
graduation of 50^, Gay Lussao at 15° Centigrade t^niperature, viz, less than 20<^ Cartier 
(Ko. 284 a of customs tariff) : Spanish 

gold. 

4,800 liters, at $21 per 100 liters $1,008.00 

Discharge tax, 5.800 kUos, at $1 per 1.000 kilos 6.80 

Special tax on drink, 4,800 liters, at$0.12 per lit«r 576.00 

Duty on demijohns (No. 10 of customs tariff), 1,000 kilos, at $2.30 per 100 kilos 23.00 

War tax, 20 per cent on $1,612.80 322.66 

Portduty, 5,800 kilos, at $0.25 per 1,000 kilos 1.45 

1, 936. 81 

Bank bills. 

Vslue of 4,800 liters, at $26 per 100 liters, $1,248, lOpercent 124.80 

Valne of 1,000 kUos, at $7 per 100 kilos, $70, 10 per cent 7.00 

131.80 



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16 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA, 

DuHw paid in Cuba per 100 kilos in United States currency. 



Section namber. 



Tariff 

1897. (Ke- 

ten to 3 

lastcol- 

nnms.) 



2716 
270 
277 
273 
268 
204 
281 
281 
284 
265 
300 
294 
5 
239 
240 

250 
246 
243 
33 
180 
180 

176 
248 



Tariff 
1802. (Re- 
fers to 2 
first col- 
umns.) 



(343) 
(342) 
(370) 
(348/ 
(339) 
(331) 
(371) 
(371) 
(334) 
(335) 
(377) 
(352) 
(6) 
(3U6) 
(307) 

(3 J 2) 
(310) 
(309) 
(32) 
(230) 
(231) 

(224) 
(311) 



Commodities. 



Flour 

Maize , 

Hay bran 

Potatoes 

Rice 

Lard 

Preserves , 

Condensed milk. . . 

Butter 

Codfish 

Cheese 

Coffee 

Coal 

Machinery , 

Agricultural im- 
plements 

Detached parts of. 

Copper 

Boilers 

Ralls 

Labels (3 colors) . . 

Labels (more than 
3 colors) 

Printing paper . . . 

Sewing maonines . 



Rates of 
duty on 
articles 

ftom 

United 

States nn 

der Mc- 

Kinley 

bill 
treaty. 



I Rates of 
I duty exact- 
*ed by Spain 
I from coan- 
tries which 
had no reci- 
procity 
treaty (tar- 
iff 1892 re- 
pealed). 



$0.90 

.22 

Free. 

Free. 

1.25 
Free. 

9.00 

9.00 
Free. 
Free. 
Free. 

7.95 
Free. 
Free. 

Free. 
Free. 
13.50 
Free. 
Free. ! 
.41 I 

1.00 I 

2.43 I 

Free. ' 



Tariffexaoted 
on articles 
imported 
fk*om coun- 
tries other 
than Spain 

before *• war 
tax" WAS 
added, 1897. 



13.63 

3.15 

.72 

L35 

2.50 

8.90 

18.00 

18.00 

10.80 

L62 

18.00 

7.95 

1.72 

L13 



7.80 

27.00 

4. BO 

1.60 

.41 

1.00 
3.35 
8. GO 



$3.00 

2.20 

.78 

1.35 

3.00 

9.70 

27.00 

27.00 

n.90 

2.25 

10.80 

10.95 

L49 

.45 

.72 

8.80 

24.30 

2.70 

.78 

.45 

1.08 
3.40 
3.60 



Tariff no' 
levied against 

oounmes 

other than 
Spain in Cu- 
ban ports in 
possession of 

Spain, in- 
cluding addi- 
tional "war 

tax/' 1898. 



$4.24 

2.59 

.90 

1.56 

3.45 

U.15 

81.00 

31.00 

13.70 

2.58 

12.40 

12.00 

1.71 

.52 



10.15 

28.00 

3.10 

L05 

.52 

1.24 
3.90 
4.15 



Present 
Amvri" 
can or 
Santiafro 
tariff lev- 
ied in Cu- 
ban ports 
in posses- 
sion of the 
United 
States, 
1898. 



$1.50 

1.20 

.25 

.75 

i.ao 

6.30 

10.00 

10.00 

4.40 

2.60 

12.00 

3.40 

.40 

.50 

.80 

2.30 

18.50 

8.00 

.85 

.20 

.40 
1.00 
4.00 



I ] 

L 



A glance at the table printed above shows that the rate of duty at 
present levied by the tariff in force in Cuban ports in possession of the 
United States on codfish, when paid in United States currency, is $2.50 
per 100 kilos against $2.25 exacted by the Spanish tariff before the 
^'war tax" was added, after the signing of the protocol, August 12, 
1898. The duty on cheese, $10.80, by the tariff of 1897, and $12.40 
under the present Spanish tariff, is $12 under the present American or 
Santiago tariff. Also note the items of machinery, boilers, steel rails, 
and agricultural implements. A practical illustration of the enormous 
duties assessed on machinery and railway supplies was given by Mr. 
E. H. Miles, a railway expert, who testified before your commissioner 
to the fact that the United States supplies all locomotives for Cuba, but 
that it was impossible to import them there under the old tariff or the 
tariff put in force in Cuban ports in possession of the United States. 
The custom-house duties, he said, on locomotives cost more than the 
locomotives themselves. He gives an instance of an engine sold to the 
Government for the Trotcha Railroad. His concern took the contract 
from Campos, and he wanted them to pay duty on that locomotive, 
which cost f. o. b. in New York $5,400, and which, according to the pres- 
ent tariff in Cuba, would have been dutiable somewhere in the neigh- 
borhood of $7,000 Spanish gold. It was the same, he said, with other 
railroad supplies. Duties on rolling stock in general were heavier than 
the value of the goods in the United States. 



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COMMEBCIAL AND INDUSTRIAL CONDITION OF CUBA. 17 

Ajiotber gentleman, Mr. E. H. Pearson, an Englishman, manager of 
the Western BaUroad of Onba, informed your commissioner that under 
the new tarifif adopted by the United States practically the same duties 
and charges were exacted as under the old Spanish tariff now in force, 
and the only reduction would be the 20 i)er cent which was added dur- 
ing the war. Against this, as we have seen, we have to take into con- 
sideration the fact that the duties were practically paid in United 
States currency, which means an addition of 10 per cent, so that the 
Cuban railway manager would be in no better condition under the new 
tariff than under the old. The railways as an industry in Cuba have 
suffered fully as much as the plantations, for, in addition to loss of 
freight due to stoppage of work, they have also lost material. The 
redaction of these duties will alike benefit the Cuban railways and the 
American manufacturers, for under a reasonable tariff there is Sure to 
be a large importation of these articles. Bails, locomotives, parts of 
locomotives, ironwork of every sort, carriages, wheels, axles, says Mr. 
Pearson in his testimony, have been imported from the United States. 
With a reasonable tariff the coaches would be bought from the United 
States. The American locomotives are better fitted for the rough roads 
of Cuba than the English locomotives, which are too finely built. 

As Mr. Pearson is himself an Englishman, and represents English 
interests, he may be considered an impartial witness when testifying 
as to the advantages of the United States market for this line of com- 
modities over the English market. Since the enaction of the Santiago 
tariff in Cuban ports in possession of the United States, the President 
of the United States has wisely issued an order admitting agricultural 
implements free of duty. It was evidently not the intention of the 
United States Government, when it adopted the tariff of Cuba which 
Spain had enacted for the purpose of favoring her own products, the 
products which she was able to purchase of other countries and reship 
as Spanish products to Cuba, to adopt such apparent inequalities as 
the above table indicates. Nor was it the intention of our Government 
to replace the exactions inaugurated by Spain against other countries 
by duties as heavy and in some respects even heavier than those of the 
tariff of 1897. The aim has therefore been, as far as possible, to correct 
these inequalities, and to substitute lower and uniform duties. 

Several of the witnesses examined in Havana and other cities of Cuba 
earnestly requested that the rates of duty of the McKinley reciprocity 
treaty be reenacted on articles coming from the United States. In 
support of this they urged the fact that the Spanish- Cuban war was to 
a large extent a commercial war; that the repeal of the McKinley 
reciprocity treaty was a severe blow to the Cuban producer and brought . 
to an end a period of considerable industrial prosperity in the Island of 
Cuba. The figures of importations into Cuba during the years in which 
reciprocity was in force bear evidence of this. The first year of the reci- 
procity treaty the amount of imports from the United States into 
10380 2 r-^^M^ 

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18 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

Cuba was $11,000,000; the second year, $17,000,000; and the last year 
it amounted to $23,000,000. We were able, under this treaty, to have 
the Ouban market entirely to ourselves. The English, French, and 
Germans were left out altogether. These figures do not fully indicate 
the benefits arising from the reciprocity treaty. The only attainable 
figures are from Spanish sources, and therefore very much allowance 
must be made for undervaluation, false classification, and smuggling^. 
In view of this there are some competent authorities who contend that 
if the above figures were all multiplied by two it would give a more 
accurate idea of the value of the commodities sent from the United 
States to Guba during this prosperous period. 

The effect of what the Cubans call the McKinley reciprocity treaty 
(July 1, 1892, to August 27, 1894) was almost magical, and many wit- 
nesses referred to that period not only as the most prosperous recent 
years in Cuba, but as giving them opportunity for improving their 
estates, and making purchases otherwise impossible. Note from the 
testimony of Mr. Luis Ponvert, of Hormiguero: 

One thing we need is cheap lumber. Oar Inmber conies from Pensacola, Mobile^ 
etc. This is the poorest lumber, and they charge ns from $20 to $30 per 1,000 feet. 
The poorer classes can not afford this, and they have to bnild their homes out of 
sheaves and palm leaves. I think it demoralizes the people to live in these huta 
instead of living decently. Hardware should also have a lower dnty. I have here 
an invoice of ordinary things, such as wire, nails, oil, etc., the value of which was 
$416.45, but upon which I had to pay $234.84 duty. The bad facilities of communi- 
cation and the utter lack of roads is another thing that should be attended to. If 
the road was laid along the middle of the island, it would be a good thing. To show 
you one effect of the McKinley reciprocity treaty, the carpenter estimated $2,800 
upon the station I have here, but I bought this in New York for $800, and was able 
to bring it in free of duty owing to the McKinley reciprocity treaty. Since then I 
know of another house that cost $700 in the States, and had a duty on it of $1,200, 
so it was abandoned and sold by the custom-house for $340. 

This idea also takes form in a statement made your commissioner by 
Ozarniko, Macdougall & Co., who say : 

it would hardly be right to have all countries trading with Cuba on the same basis 
as the United States. Under the tariff yon sent us the United States would not 
have any advantage over any other countries. We therefore suggest a modus 
Vivendi between Cuba and the United States. Cuba is a large producer of sugar 
and a fair consumer of American goods, and the United States being a large con- 
sumer of sugar and mauufacturer of goods used in Cuba, the two should enter into 
some satisfactory reciprocity treaty which would settle forever the present difficulties 
and starvation in Cuba. If the conditions in the above tariff are ohauged as sug- 
gested, and a reciprocity treaty is made between Cuba and the United States 
whereby all goods from countries other than the United States pay 30 to 50 per cent 
more duty when entering Cuba than those specified in the tariff yon sent ns, and in 
exchange Cuba sugars and tobacco are admitted into this country with a reduction 
on the present duties of 30 to 40 per cent, the Administration will have solved the 
Cuban question. This reciprocity treaty would lead to such prosperity in Cuba that 
all its inhabitants would be at work in one year hence, with such good results 
that, with few exceptions, they would not think any more of politics. In suggest- 
ing the reciprocity treaty between Cuba and the United States, we are fully aware 
that while it will help Cuba it certainly will be also of a great deal of benefit to 



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COMMERCIAL AND INDU8TRL\L CONDITION OP CUBA. 19 

the United States. The trade between the two countries while the reciprocity 
treaty lasted showed that the Cubans boup:ht very large amounts from the United 
States. 

To wLat extent the repeal of this reciprocity treaty may have been 
responsible for the war it is impoc^sible to say, nor is snch a discussion 
within the province of this report, dealing, as it does, with the present 
indostrial condition of the island. Nevertheless, there may be fonnd 
in all the ports of the island of Cuba visited by your commissioner a 
very strong feeling that the closer the ties of reciprocal trade are 
between the United States and Cuba, the better for that island. How- 
ever wise or desirable the recommendation of these rates might be for 
those in Cuba who purchase our commodities and those in the United 
States who purchase sugar — the principal export of Cuba — the necessity 
of raising revenue suflScient for the immediate needs of Cuba precluded 
the possibility of seriously considering such a plan under existing or 
present conditions. While the testimony of this phase of Cuba's indus- 
trial history will be read with considerable interest, and the fact of the 
sentiment in favor of the recommendation of the McKlnley treaty is of 
value as giving expression to this natural sentiment, the present need 
of revenue for Cuba makes it incumbent at this time tx) construct a 
tariff based upon the one now in force in Cuban ports in possession of 
the United States. 

Before entering into the details of this work, and before analyzing 
such meager figures as have been attainable in relation to the Cuban 
budget, it will be interesting to call attention to a vigorous and able 
statement made to your commissioner by Senor Don Munoz del Monte. 
This statement is quoted because it seemed to put incisively the atti- 
tude of Spain to Cuba in fiscal matters, and at the same time brings 
together with considerable force the facts and figures already presented 
in this report: 

The Cuban tariff in the second important ({uestion of actual interest. As bis- 
Uirical documents and as proof of the craft and absorbing ambition of Spain, special 
mention must be made of the tariff law of 1892, combined with the law of commer- 
cial relations with Spain (enacted in 1882 and somewhat modified afterwards) and 
of the present tariff (of ^th August, 1897). The exclusive aim of these custom-house 
laws is to afford an exaggerated protection to Spanish productions by means of an 
overcharge of differential duty on foreign goods, which amounts to 200, 300, and 
even 500 per cent (and sometimes more) on the duty paid by Spanish importations. 
These laws form one of the most tyrannical and absurd pieces of legislation ever 
imposed by force or by cunning on a weak and unhappy people. 

By means of her dacal legislation Spain has been able to heap large treasures at the 
expense of Cuba, and this, strange enough, during a period that will remain remark- 
able in the economical history of the world by the ruin of the cane-sugar industry. 
The Cuban planters have made during that time (from 1884 to 1895) gigantic efforts 
in order to improve their plantations and machinery; but with the only result of 
increasing the profits of the Spanish officials, manufacturers, and agriculturists. 
The destructive operations of those commercial laws, and the impending ruin of 
Calia have been the subject of repeated complaints, particularly since 1890; and only 
a few weeks before the last insurrection broke out (in 1895) a detailed memorandum 
was sent by the Cuban planters to the Cortes, then assembled in Madrid, in which 

uigiiizea oy x^jv^vz-xiv^ 



20 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

memorandum it was literally stated: ^'That the uneasiness and discontent proTaU- 
in^ in Cuba proceeded mainly, if not exclusively, from economical causes. That 
modern history teaches and logic confirms the truth that, as long as the grave 
economical questions which interest and convulse Cuba are not settled, no n^oral 
peace and no oonfidence in the future are to be expected." 

The Cortes, as well as the Spanivh ministers, not only received with cold indiffer- 
ence each and every complaint coming ttom the representatives of Cuban indnstries, 
but, considering the facts only from the point of view of the happy official and 
industrial InterestH favored by law, the minister of the colonies describes literally 
the protection granted to the Spanish industries as '* the sacred patrimony of the 
Spanish nation.'' (Preface to the Cuban tariff law of 1892.) The same minister 
declared in an official document (Budget law of 1892-93) that ''Cuba was in a high 
degree of prosperity and that nothing was to be feared for the fntnre.'' (Lapros- 
peridad de Cuba ha renacido vigorosa, y su riqueza se desenvuelve en t^rminoe 
tales que permiten dosechar del ^nimo todo pesimismo para el porvenir.) 

These words may be taken in conjunction with the testimony of many 
jothev witnesses who have opeuly insisted that the Cuban war was a 
commercial war, culminating in consequence of the repeal of the 
McKinley reciprocity treaty. The data herewith presented in relation 
to the iniquitous and discriminating tariff rates also have more or less 
bearing upon the present industrial condition of the island, and both 
should be carefully considered in the formation of such future legis- 
lation as may be adopted in any program or policy having for its aim 
the rehabilitation or industrial reconstruction of Cuba. 

Taking up the question of revenue for Cuba, attention is called to a 
carefully considered statement made by Mr. Louis V. Plac^. Mr. Plac6 
is a Cuban by birth, and for many years has occupied an active position 
in commercial circles in Havana. He has represented there probably the 
largest shipping interests of the island, and was recommended to your 
commissioner as a man thoroughly equipped in all matters relating 
to the commerce of Cuba. For this reason, and because his statement 
distinctly represents another phase of Cuban sentiment in relation to 
the United States, it has been deemed advisable to call especial atten- 
tion to it. The full statement of Mr. Plac6 will be found in the appen- 
dix.* In common with many others of his countrymen, Mr. Plac6 takes 
the ground that in framing the tariff which is to be put in force during 
the military occupation of the United States in Cuba, t^e Government 
of the United States should enact a decidedly discriminating rate of 
duty for this country. 

The contention is, on the part of Mr. Plac^ and those who advocate 
his views, that the present custom-house tariff and regulations for ports 
in Cuba in possession of the United States do not advance or improve 
the situation. They are fearful that a tariff which lowers the rate of 
duties all around and makes them uniform alike for the United States 
and all other countries will simply in effect transfer the tirade which 
Spain formerly unnaturally held by enormous differential duties for 
^countries other than herself to European nations — England, Germany, 

* The appendix to which reference is made in this report will be published as a 
separate document on the completion of the various reports on Cuba. 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 21 

and France, for example — and that in the change the loser will be the 
United States. This Mr. Plac6 denounces as an "incalculable error."' 
Against this radical view of the situation may be quoted the testimony 
of other gentlemen, presumably well informed on the subject, who give 
it as their opinion that on a very large proportion of the commodities- 
which Cuba requires the United States need fear no foreign competition. 

On tlie other hand, it will be noted that the secretary of the Ameri- 
can Paper and Pulp Association (Mr. Chester W. Lyman), speaking 
for the association, is decidedly of the same opinion as Mr. Plac^ as to 
the necessity of a discriminating duty in favor of the United States 
if this country expects to enjoy the larger share of the Cuban trade* 
Mr. Lyman thinks that, to insure the United States securing the paper 
tra<le of Cuba, it will be necessary "to so frame the schedule of duties 
on paper that not only the discrimination in favor of Spain shall dis* 
appear, but that we shall have some protection from the aggressive- 
comi>etition of Germany and England.'' To still further emphasize th© 
importance of such discrimination, Mr. Lyman informs your commis- 
sioner that at the present time we appear to be actually at- a disad- 
vantage in the matter of transportation rates compared with England,. 
Germany, and France — in other words, that the present rates of trans- 
portation indicate an actual excess in the rate, for instance, on printing 
paper of 20 per cent from New York to Havana over the rate from 
Liverpool to Havana, while the rate from Havre is even slightly les& 
than the rate from Liverpool. Without presenting any facts in relation 
to Germany, Mr. Lyman presumes that the rates from Germany wilt 
not differ much from those he cites as applied to England and France* 
The testimony of these witnesses is especially referred to and attention 
invited to the full statement of this phase of our fiscal relations with 
Cuba, because, in the opinion of your commissioner, it is a subject that 
should receive the most careful consideration of the Government. 

The general instructions received by your commissioner were to the 
efifect that the policy of the Administration was not favorable to dis- 
criminations in tariff rates in favor of the United States; that the 
United States was willing to take its chances in the Cuban trade with 
the other countries of the world, and that the object to be attained in 
any readjustment of the tarilf to be enforced in Cuba during military 
occupation by the United States was the lowest possible rates on all 
commodities of general consumption consistent with sufficient revenue 
to meet the expenditures of the Government. For this reason no spe- 
cial inquiry was made along the lines suggested by Mr. Placd, Mr* 
Lyman, and others recommending discrimination in favor of the United 
States; nor is your commissioner prepared, without further inquiry 
along these lines, to make any recommendations on a subject whicb 
involves complicated international relations with other countries. 

There will be tbund in the statement made by Mr. Plac6 an assertion 
to the effect that by the adoption by the United States of what he 



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22 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

calls the minimum oolnmn in the Spanish tariff, or what has been des- 
ignated as the Santiago tariff, the revenue of Onba on customs will be 
reduced to $5,000,000. Coming from a practical man, who has given 
much study to the question of Cuban revenue, such a statement 
naturally commands attention. In the first place, the United States 
Government has adopted and put in force the minimum column of 
the Spanish tariff. In the second place, this report, while retaining 
in many cases the rates of duty applicable to the "minimum column," 
has made in many instances decided reductions from those minimum- 
column rates. If, therefore, Mr. Place's statement is based upon reli- 
able facts, the present tariff in ports in Cuba in the possession of the 
United States should be yielding less revenue than was collected under 
the general Spanish tariff' of 1897 by the Spanish authorities. If the 
port of Santiago, which has been longest in the possession of the United 
States, may be taken as an indication of the working of this tariff, Mr. 
Place's estimate as to revenue falls far short of the amount which an 
honest administration of the custom-houses by American officials may be 
hoped to realize. 

Below will be found a table of the total custom-liouse receipts from 
1886 to 1897, inclusive, at the Santiago custom-house: 



Tear. 



Amount, i Year. Amount. Year. Amount. 



1886 $681,629,03 1 1892 $512, 925. 02 ' 1897 $432,340.49 

1887 633.567.83' 1893 508,253.76 1 

1888 1 657, 143. 18 1894 649,237.28 Total 7,668,501.66 

1889 667,359.36, 1895 738,643.60 Average per an- 

1890 , 754,715.64 1 1896 637,746.45 i uiim 639,041.80 

1891 794,939.06 ' i I 



According to the above table it will be seen that last year the Spanish 
authorities only collected $432,340.49, and that average receipts per 
annum for the twelve years at this custom-house have been $639,041.80. 

The rates recommended take into consideration all the statements 
submitted to your commissioner in relation to the enormity of the frauds 
in the several Cuban customhouses. It is believed that while the 
rates of duty in the tariff* have been enormously high, the amounts turned 
over to the Cuban government by the Spanish officials have been cor- 
respondingly small; that the minimum column of the tariff*, with an 
additional reduction as herewith proposed, assuming that the collec- 
tions of duties are honestly made, smuggling stopped, and classification 
enforced, will yield at the least possible estimate as much revenue as 
the present tariff.* 



* The followiug extract from a report made by your commissioner subsequently 
and dated December 19, 1898, after the commissioner had visited Santiago, gives 
additional iufonnntiou on the revenue possibilities under United States adminis- 
tration : 

"Several of the more imx>ortant HUggestions resulting from the experiences of 
United States custom-house otticials at Santiago have been adopted and will be 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 23 

The sitnatioD in Oaba, so far as the administration of castoms is con- 
cerned, is so admirably sammed up in a statement prepared especially 
for yonr commissioner by a prominent American commercial house 
which has had many years' experience in the commerce of the West 
Indies, that it is herewith given in full: 

It is exceedingly difBcult, if not impossible, to give you even an approximate idea 
of the collection of castoms dues in the island of Cnba nnder an intelligent and 
upright adminiHtration. It is, therefore, very venturesome to propose changes and 
modiiications in the existing tariffs, if in these changes and modifications the inten- 
tion is to find a basis on which to obtain a determinate sum that shall aid in defray- 
ing the general expenses of the island of Cuba during tbe government and admin- 
ifttr ition of the island by the United States. 

There are not, never have been, or can be, official data or details affording the 
means of knowing even approximately the quantity and value of the imports, nor 
can those referring to exports be considered true and exact. This lack of informa- 
tion and statistics suited the Spanish Government itself primarily, for it is a 
matter of fact that the system of smuggling and frauds which has obtained in the 
custom-houses of Cuba was practically authorized by the Government itself. 

Smugglhig has been perfectly organized in various periods on bases and rules 
discussed and approved, every employee, from the highest to the lowest, partici- 
pating, and the product being divided weekly without any one of them failing in 
turn to practice it for his own special advantage and to the prejudice and loss of 
the general organization. Where uo such organization existed, each person operated 
for his own account. 

This was stated and proved, to the great scandal of tbe Spaninh people, and amid 
the protests and insults of the senators and deputies in the Cortes, by the general 
intendant of the treasury (the second authority, coming next after the captain- 
general), D. Caiicio Villamil, publishing these organizations and proving that a 
large number of employees had contracted and were obliged to remit monthly to 
Madrid, to their protectors, not only the total of their salaries, but also large addi- 
tional sums, in order to retain their positions. 

The honorable intentions of Mr. Cancio Villamil with regard to cleansing the 
administration in Cuba failed entirely, he being vanquished; since which nobody, 
in view of this example, has dared to renew them. 

Every merchant importing into Cnba, so it is said, has been forced to accept 
smuggling as a part of his business in order to compete with his colleagues, and in 
all his calculations and operations he has had to reckon with smiiggling as the fnn- 
damental basis, and the Government has had to understand this, seeing that in the 
price lists of goods and in the sales of provisions published by the Official t^xchange 
it was evident that the price of the goods was less than their value in the producing 



incorporated in the new tariff law. The experience of Mr. Donaldson in adminis- 
tering the affairs of the Santiago custom-house will also be of value to the United 
States Government when the work in Havana is undertaken, and I would respect- 
fally suggest that this efficient officer be at least temporarily assigned to the broader 
field in Havana, as his work as the pioneer United States collector of customs in 
Cuba will aid materially in administering the new tariff in other parts of the island. 
Mr. Donaldson estimates at the end of November that the total custom-house receipts 
in his entire district will aggregate in the neighborhood of $330,000. It iH impossi- 
ble to give these figures with exactitude at the close of the month, because two or 
three weeks must elapse before all the reports reach Santiu^xo, in coubequcnce of 
the slow methods of transportation ; it is safe to say, however, that the collections 
in this port for the twelve months under American administration will be twice as 
mach as collections were in the last twelve months of Spanish control.'' 



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24 COMMERCIAL AND INDU8TBIAL CONDITION OF CUBA. 

market plus the customs dues. It could only happen, therefore, that the real ability 
to obtain greater profits lay in the carrying on of the smuggling to greater or leas 
advantage. The result of this has always been that the one who really made the 
profit was the official. 

In the exportation of the two principal products of the island — sugar and tobacco^ 
there has also been smuggling, but for the honor of the three or four merchants who 
have had the monopoly of the sugar exportation, we can say that, on account of 
their number being so small, they were able to come to an agreement. not to smuggle 
sugar out, so that sugar might be shipped by all of them on the same terms so fax 
as customs dues were concerned. But has this honorable attitude of the sugar 
exporters prevented smuggling in its exportation? Certainly not; for, if they 
avoided smugglipg, paying the dues in full, the money which was collected at the 
custom-house did not always reach the treasury, because smuggling and fraud have 
not always been confined to the shipping of goods at the dock, but it has been done 
in the bay, on the dock, in the warehouses, and inside the offices of the custom- 
houses without bill of lading, and without the participation of the merchant. 

Smuggling has always been carried on, on a large scale, in the exportation of 
tobacco, both manufactured and in the leaf. 

In view of this sad state of things, which is spoken of by everybody in Spain and 
in Cuba, and which we know to be true, though we could not very well prevent it, 
you will agree with me that it is not possible to take as a basis the product of 
the present tariffs with a view to modifying them, if in making the changes the 
idea is to obtain a certain sum as a result of customs dues. As to other changes, 
those will have to be adjusted to the logic of things, to reason, justice, equity, to the 
convenience and advantage of the people and the necessities of the government. 

With regard to the existing tariff of the island of Cuba, even a cursory examina- 
tion will show you that it is gotten up with very great care, so as to lend itself to 
yarions interpretations and to facilitate fraud and smuggling. Nevertheless, so 
large is the product of the customs in Cuba, since everything consumed in Cuba has 
to be imported, that in spite of all abuses it amounts to two-thirds of the sum total 
of the general budget. 

The customs of Cuba have produced $15,000,000 per annum, and we would have 
no hesitation in contraotiug for and guaranteeing $25,000,000 with the present tariffs, 
to obtain a profit of $8,000,000 to $10,000,000. 

It seems that the maximum column of the tariff was gotten up expressly to 
operate against the United States, without benefiting Cuba in any way, and yet 
eight-tenths of the products of Cuba are bought by the United States. The tariffs 
were prepared to favor, first, the Spanish provinces, and after that the nations of 
Europe. 

Our idea would be to suppress completely the maximum column, without any fear 
that with the minimum column alone the products of the customs would go down 
to $6,000,000 or $5,000,000, as a calculation based on the relative product of the two 
columns would tend to show. We are sure that, properly administered, the customs 
would produce from $12,000,000 to $14,000,000 with the minimum column. 

But we think it best for the present to leave both columns in force, with the 
changes which must be introduced favoring, as is logical and natural, the products 
of the United States, which will result in benefit not only to the United States, but 
also to the island of Cuba. 

We would propose as a first step : 

1. The suppression of all export duties, as is the custom in all civilized countries 
of the world. 

2. Freedom from duty for two years for cattle which may be introduced into Cuba 
to repair the almost total destruction which has taken place during the three years 
of war. 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 25 

3. Freedom from doty on coal, raw petroleam, and timber for building ptrrposes. 

4. Considerable reduction in the dnties on floiir, bacon, rice, lard, beans, meat, and 
salted fisb, all articles of prime necessity and which constitate the principal food of 
the poor and laboring classes. 

5. Freedom from duty for one year of all machinery for plantations. 

6. A proportional rebate on all American products. It is understood, of course, 
that these must be under the American dag. 

In closing this letter, we can assure you that, however important the reductions 
which you may make on articles of prime necessity, and the rebates on American 
products, the customs of Cuba will produce much more under an intelligent and 
honorable administration, as that of the United States must be, than they have pro- 
duced hitherto under the Spanish administration, with the previous and present 
monstrous tariffs. 

It will be readily admitted, even by those experienced in forecastiug 
revenue from the tariff bills about to be enacted or just enacted iuto 
laws, that the process is venturesome if not hazardous. When in addi- 
tion to the futtire legitimate tendency of trade it is necessary **to 
reckon with smuggling as the fundamental basis," such forecasts may 
be considered well-nigh impossible. It is correctly stated above that 
the customs of Cuba have produced $15,000,000 per annum, and it is also 
more than probable that $25,000,000 of revenue could be raised profit- 
ably to the contracting parties with the present tariff*. It must be borne 
in mind, however, and the data on the subject will be presented fur- 
ther along, that the rates of the proposed tariff" are, in the first place, 
the minimum-column rates, and, in the second place, those rates have 
been changed and reduced and important articles of general consump- 
tion put u]>on the free list. There will be found in the appendix another 
valuable statement bearing directly on the national taxation made by 
Mr. Fran Figaeras, who seems to have given the subject of the Cuban 
tariff considerable study. Mr. Figueras is not only fully in accord with 
the facts and figures already presented in this report, but he is in sub- 
stantial agreement with the statement quoted above. On the possibili- 
ties of revenue Mr. Figueras says: 

It is next to impossible to calculate the amount of revenue obtained by the Spanish 
Goremment under any one of the tariff laws which they had in force. It is a noto- 
rions fact that the Spanish Government always allowed smuggling through its 
custom-houses in order that its employees might accumulate enough wealth to be 
able to share with their protectors and bondsmen in Madrid who procured them 
their positions. 

The revenue of the custom-house has been calculated to average about $12,000,000 
annuaUy, but if smuggling and its effects are taken into consideration, we find that 
a just application of the tariff law would have produced twice this amount. It is a 
well-known fact that, after having subjected a cargo to the strict tariff law, the 
employee operated in the foUowing manner : One- half of the duty was put aside for 
the public treasury, one-fourth went to the general f^ind weekly distributed among 
aUthe costom-hoase employees, and the other fourth was turned over to the importer. 

If this had been the extent of this system of smuggling it would be comparatively 
easy to calculate the amount really received by the Treasury, but fi^uently the 
one-half due it was also subject to many discounts while in transit between the 



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26 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

CDstom-hoate and the Treaaary. This careful system of robbery was transacted in 
various ways and by some is calculated to have reached the sum of $6,000,000 yearly. 
Taking these facts as a basis, we may say that the last Spanish tariff, legally and 
honorably applied, would have given an annual revenue of $30,000,000 under normal 
conditions. 

THE BUDGET OF CUBA. 

It will next be in order to take up and analyze tbe budget of Oaba, 
showing how much revenue is required and how much may be reasonably 
expected from the tariff to be enforced. 

In dealing with expenditures the factors become more certain quan- 
tities. The money collected from Ouba, whether it was twenty-six mil- 
lions or less, has all gone, and nothing is likely to be found in the treas- 
ury but numerous evidences of promises to pay, records of receipts 
given by the Government for goods not paid for, debts of all kinds, 
including the salaries of a large number of the minor officials. 

The first and most important item of expenditure is, as has been said, 
for sovereignty expenses, and aggregates a sum exceeding $22,0«K),<K)0.» 
These expenses are subdivided as follows : 

I. Interest on public debt and general expenses $12, 574, 709. 12 

II. State-cburch, and justice 329,072.63 

ni. War : 5,896,740.73 

IV. Navy 1,055,136.13 

v. Executive 2,645,149.98 

ToUl 22,500,808.59 

The largest single item in these expenditures is that of the interest 
on the public debt, which aggregates $12,574,709.12. The other items 
of expense under the division seem' to be of a miscellaneous character, 
including some salaries, pensions — civil, military, and naval — ^public 
works, and gratuities. Under the head of ^^ State-church, and justice," 
$329,072.63 seems to have been expended for the clergy and for matters 
relating to ecclesiastical afi'airs. 

The next largest expenditure is for purposes of war, $5,896,740.73. 
It will be interesting to American readers to look over these items, as 
they appear in the full budget printed further along. 



* Treasury department of the Island of Cuba— Budget for 1898-99, Schedule B, 

Revenue for sorereigniy expenses, — According to telegraphic communicationB received 
from the Central Government, the law of .Time 11 last recognizes the impossibility, 
under the existing conditions of the Island^ to make a sufficient ax>propriation for the 
requirements of the government, and it authorizes the temporary covering of the same 
from the extra campaign fund, and appropriates the balance from local expendi- 
tures provided for under Schedule D. Any further amount needed to cover sover- 
eignty expenses may be drawn iVom said extra campaign fund. 

RA.FARL MoNTORo, Secretary, of the Treasury, 

HAVANA, June 29. 1898. 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 27 

The expenses of the navy aggregate $1,055,136.13, aud of the execu- 
tive department, $2,645,149.98. Under the last section will be noted 
the salary of the Cuban Governor-General, $40,000, and the expenses of 
his oflRce, $40,450, aggregating $86,450. In this division it appears the 
civil gnards were paid, this body of men receiviug in all $2,095,221.12. 
The second largest item in this total is the subsidy to the Oompaiiia 
TransatMntica, which amounts to $471,836.68. A study of these sev- 
enil items will at once show that the principal expenditures for the 
Island of Cuba are those which have, directly or indirectly, to do with 
the control of the Island by Spain. Thus the nearly $10,5()0,000 paid 
ander the head of public debt is undoubtedly interest and sinking-fund 
payments on the enormous indebtedness which Spain has saddled upon 
Cuba. Nearly $7,000,000, the combined cost of the army and navy, 
represents that portion of the cost of the war which Spain hoped to 
wring from the Cuban people, while upward of $2,000,000 of the total 
amount expended under the classification of executive went to the civil 
guards, who have been used for patrolling the various parts of the 
Island. Here, then, we have a total of $19,500,000 for extraordinary 
expenditures^ the larger portion of which will be abolished when the 
public debt is wiped out and peace restored to Cuba. 

The second grand division of expenditures is the smallest and repre- 
sents the amount of money which was spent strictly for local affairs, 
and not in the defense of the sovereignty in its possession of Cuba aud in 
the payment of interest on a burdensome and unjust debt. One of the 
first items of expenditure under this latter head is the result of the far- 
cical concession by Spain of autonomy for the island, and the round 
sum of $133,830 is paid under the head of "Colonial legislature." The 
second section is for the church, justice, and executive, also for the 
courts of justice, expenses for prisons and charitable institutions, and 
as will be seen above aggregates $l,(>12,^5t>.44. The most expen- 
sive department of the government seems to be that of the treas- 
ury, the salaries of the secretary, subsecretaries, and other ofl&cers, 
aggregating $218,725. This does not include general expenses, which 
make another item of this department, aggregating $33,500. Tnder 
the head of contingent expenses will be found the various provincial 
administrations of the treasury; the cost of the administration of cus- 
tom-houses and revenue marine, amounting to $472,370, giving a total 
for the department of $708,978.51. 

Public instruction fares badly in Cuba, section 4 showing that for 
pui-poses under this head $247,033.02 was expended. The largest 
item in these expenditures seems to be for the University of Havana 
and its educational adjuncts, aggregating $172,840.80. The next largest 
item is the salary of the secretary of education, and the inspectors of 
primary instruction, etc., aggregating $58,300. None of the total 
amount seems to go for common school education, as it is understood 
in the United States. 



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28 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

Under the head of '< Public works and communication," $1,036,682.10 
was expended. The proportion of this money, which goes for salaries^ 
as will be seen by reference to the detail, is very large indeed. The 
largest single item of expenditure is given under the rather dubious 
heading of " Communication,'' and aggregates $417,640. Repairs and 
care of public buildings, including rent of buildings, aggregates $79,500 ; 
postal communication, $114,514; marine navigation, including docks 
and sheds, light-houses and buoys, aggregates $98,058; and the con- 
struction of the San Cristobal Bridge, $49,000. The care and repair of 
public roads cost $100,000, in all, making the above-mentioned total. 

The agriculture, industry, and commerce of Cuba, like the public 
instruction, in the broader sense of the word, comes in for a meager 
share of the small amount of the total budget, which seems to be 
reserved exclusively for expenditures for the benefit of the home gov- 
ernment. The aggregate, under the title of "Agriculture, industry, and 
commerce," is $108,178.52, the most of which is used in salaries and 
expenses for the secretary's oflBce, for which one-third of the total 
appropriation is expended. Under the head of " Local fairs of agri- 
cultural industries," $40,000 is appropriated. The forest lands seem to 
be given some attention; at least $16,175 is expended for inspection 
under this head. These form the chief items of expenditure for all 
purposes for the Island of Cuba. Perhaps it would be more accurate to 
say these are the estimates of the appropriations which the present sec- 
retary of the treasury thinks will be necessary to run the government 
on the present plan. It is only necessary to study these interesting 
tables in detail to see where a large amount of this exx>enditure can be 
abolished altogether or reduced. In doing this, however, it must be 
borne in mind that other expenses will be necessary in order to satis- 
factorily and honestly administer the affairs of Cuba in the interests of 
the people of the island. 

It is impossible at this moment to make a satisfactory estimate of the 
new budget, nor can it very well be done until after the United States 
forces are in full possession and -able to secure complete data as to the 
pressing needs of the government of Cuba. Of course the large items^ 
such as interest on the public debt, expenditures of Spain for the pur- 
pose of conquering the island, will disappear^ making a. reduction, if 
we include the civil guards, of eighteen or twenty millions. How much 
of this amount will be required for necessary expenditures, under the 
new order of things, it is impossible to forecast. Some data on this 
X)oint can be found in the statement of Mr. Fran Figueras in the 
appendix; but the following is quoted here to emphasize the importance 
of giving immediate attention to a careful division of the expenditures 
for the central government and the expenditures for local purposes, 
something the Spanish Government, in the whole history of its man- 
agement of Cuba, has failed to do. 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 29 

The light to impose oastom duties has a rational and just iimit; it is determined 
by the legitimate needs of the Treasury. All in excess of these needs converts tax 
into an onjast, and therefore insupportable, exaction. 

With due attention to these considerations, and bearing in mind that the custom 
duties are the real sonrce of revenne in the island of Caba, it is indispensable to 
determine the total amount of expenditure which this revenne must liquidate. 

If these expenditures are those used for pnblic defeiise, central-government admin- 
isk^tion of post-offices, justice, pnblic works, education, and any others which it 
woald not be advisable to tnrn over to the municipal or provincial governments, we 
may safely consider that $6,000,000 to $8,000,000 annually would be quite sufficient. 

This is the largest reveuue the American Government should expect from the 
administration of custom duties in Cuba. 

Another statement well worth attention in this connection is that of 
Mr. Philip Pelaez, a former oflBcial of the Spanish Government in Cuba. 
The statement shonld be read in fall by those interested in the future 
revenues of Cuba, but the following quotation is of special significance : 

Neither in the administration of the islands nor in the ministry of the colonies 
are there any statistics with respect to the composition of the tariffs, and only a few 
data with regard to valuations. 

This is as much as can be stated precisely offhand concerning the said tariffs, an 
analysis of which, article by article, it would be very difficult to get, seeing that 
tiiere are no statistics of the real importations. 

Even without asking these investigations there remains for the Government of the 
United States the most interesting problem on the making of peace with the cession 
of the two islands. Is free trade convenient? Is a simple tariff preferable? Would 
it not be more prudent to keep to the existing one? 

Free trade at the present time would impose the burden of the general expenses 
without any profit and with great dangers, the most immediate being the paralyza- 
tion of bnainess and the flight of existing capital, etc. 

The ad valorem tariff diminishes the receipts and gives advantages to a multitude 
of foreign articles. 

The tariffs now in force would, with a few changes, suit the islands and United 
States for a long time to come. 

The changes are not important. Change the items included in the tariffs of the 
last treaty with Spain ; modify those on cotton goods to protect the industry of the 
country, and favor some articles of Spanish manufacture to keep up that business, 
and so that other nations may not profit. 

To protect the exportation of sugar and tobacco, putting obstacles in the way 
of the importation of foreign tobacco, and even of the coasting trade. 

The diminution in receipts occasioned by these changes might be offset by increases 
in other directions ; but this will not be necessary, because the development of harbor 
works and docks will bring about an order of things that will enable the customs 
of Cuba, for example, to produce at least $30,000,000. 

It wDl thus be seen that the above statement practically coincides 
with the statement of the New York commercial concern to the effect 
that $25,000,000 could easily be produced with the present tariff and a 
profit of several millions to the parties contracting to collect that large 
amount. 

It will be noted that all three of these authorities agree upon the 
large revenue possibilities of the Cuban customs tariff, if honestly 



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30 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

administered. They are also substantially in accord with the policy 
your commissioner has adopted in the general recommendations for 
changes of rates. 

Before taking up for consideration and explanation the several sched- 
ules of the Cuban tariff, it has been deemed advisable to submit in this 
part of the report more in detail some of the importan t tables, the totals 
of which have already been quoted. Immediately following the report 
these tables will be found in detail, but for the convenience of those 
who may wish to obtain a general review of the fiscal conditions of 
Cuba it is advisable to make these summaries part of the report on 
Ouban revenue and customs. First is submitted a statement showing 
the quarterly customhouse receipts during 1895, the last normal year, 
specifying the various taxes: 



T«..iir i?:».f r...o^f><.^ Secoud ' Third Fourth t«#«i 

Tariff. , First quarter.i quarter. < quarter. I qiuu-ter. ' T*»^'- 



Import duties 'ri, 46i, 3©2. 70 $2, 387, 357. 28 $1, 947, 152. 48 $1, 977, 028. 01 $8, 775, 930. 47 



Ten per cent on import* , 272. 162. 34 i 237, 673. 86 ; 251, 216 02 

Providiunal 15 per cent ou 1 

imporis 84.126.55 312,346.57 | 302,821.71 

Export duties a 
NsA'i^ation tax 
Loading; tax 



Unloading tax 

Passenger tax 

lierohMits' bonds 

Fines 

Interest on promissory notes. 
Excise tax 



200,483.87 970,536.99 

267,337.93 966.632.76 

344,850.62 227;858.34 ! 359,135.46 369,237.05 * 1,301,082.37 

2,539.75 4,635.50 I 6,232.50 1 5.805.00 1 18,712.75 

254,316.53 . 346,953.50 ' 124,242.98 91,509.85 I 817,022.95 

140, 562. 35 128, 038. 58 129, 965. 77 1 12, 984. 47 512, 431. 17 

8,925.75 7,808.00 6,190.25. 6,229,75 29,153.76 

332.05 i 143.50 208.56 228.84 t 912.05 

18,308.40 22,496.45 13,346.50 16,663.15 70,814.50 

695.03 1 695.08 

333, 003. 78 | 252. 265. 95 333, 525. 56 | 205, 179. 59 | 1. 123. 974. 88 



Total 3,924.215.85 , 3,928,477.62 i 3,474,038.69 i 3,261,188.41 . 14,587.920.57 



a Values given to exports are based on average declared value of clearings at custom -houses. 

Since the war the customs receipts have naturally declined, therefore 
the year preceding that has been selected as indicating the average 
revenue from custom-houses, when not disturbed by commercial treaty, 
such as that made in connection with the McKinley tariff law of the 
United States, nor the other disturbances, such as civil war and subse- 
quently the blockade of Cuban ports by the United States Navy. The 
value of the above table is in the fact that it shows customs receipts 
fi'om the several sources other than those which may be considered 
strictly import duties. 

The figures already given and the several statements relating to the 
possible revenue of Cuba make the following tables of especial reference 
value, as showing the face value of tax receipts other than custom-house 
receipts handed to the Spanish bank for collection and the actual amount 
of taxes collected by the Spanish bank. 



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COMMERCIAL, AND INDUSTRIAL CONDITION OF CUBA. 31 

Table I. — Fcioe value of toor receipts handed to Spanish hank for coUeciiofi. 



Year. 



City property. 



Iftj6-g7 $2,520. 

\m-^ :«,565, 

18»-8» 2,633. 

lBa»-90 2,451, 

1880-91 2,498. 

18W-92 ! 2,093. 

lSn-9i 1,989, 

1883-W I 1,889, 

l8M-» 1.884, 

1896^ 1,905, 

I89M7 2,060. 

1897-98 1,924, 

Total 26.417, 



061.51 
834.77 
491. 17 
866.27 
060.52 
492. 10 
290.65 
814.97 
[66.87 
1.44 



766 
Idl 



866.65 



Rural real 
estate. 



$507,739.70 
472, 909. 25 
510,456.81 
393,938.19 
693, 32:{. 04 
386, 578. 79 
784.943.09 
804, 838. 90 
814, 006. d'A 
823,609.47 
880,946.21 
811,470.78 



Taxes on pro- 
fessions, tnules,! Minor taxes, 
etc. 



Total. 



$1,963, 
2,090, 
2, 030, 
1, 895, 
2.027, 
1,654, 
2,452, 
2.183. 
2.297, 
2, 073, 
1,995, 
1,609, 



778. 53 
306.46 
542.86 
638.08 
435. 32 
306.58 
044.86 
356.47 
452.23 
581.75 
542.42 
094.32 



$249,071.76 
257,577.35 
141.876.76 
136,604.67 I 
117, 702. 37 
108,604.87 I 
131, 660. 37 
214, 191. 07 I 
107,096.27 , 
104, 731. 51 
105,453.12 
85,163.40 I 



$5, 240, 
5,386, 
5, 316. 
4,878, 
5,336, 
4, 242, 
5,357, 
5,092. 
5,163, 
4,907, 
5,042, 
4, 430, 



651.50 
627. 83 
367. 60 
047.21 
011.25 
082.34 
928. 97 
200. 41 
321. 70 
654.17 
205.00 
595.15 



540.17 7,884,760.56, 24,273,078.88 | 1,819.813.52 ' 60,395,193.13 



Table II. — Actual amount of taxes collected hy the Spanish Bank. 



Years. 



lffl6-87 

l«7-« 

lOMa...., 

M8M0 

WW-Ol..... 
1891-92.... 
1891-93..... 
1898-94...., 
1894-95.... 
1896-96...., 
W9M7.... 
1897-98...., 

Total 



City property. 



$2, 275, 
2,347, 
2,380, 
2,227, 
2.227, 
1,851 
1,789, 
1,728, 
1,703, 
1,594. 
1, 523, 
1,140, 



853.10 
957.42 
545.54 
503.12 
217. 01 
615.43 
106.74 
234.60 
327.71 
158.79 
368.43 
230.12 



Rural real 
estate. 



$468, 
436. 
466. 
363, 
619, 
345, 
717, 
722, 
684, 
371, 
224, 
89, 



245.88 
222.17 
897.68 
222.63 
271.48 
743.88 
760.37 
572.96 
296.62 
845.50 
870. 98 



22.789,018.01 , 5,510,612.13 



Taxes on pro- 
fessions, 
trades, etc. 



$1,662, 
1.716, 
1, 705, 
1, 676, 
1,695, 
1,391, 
1,906, 
1,842, 
1, 870. 
1.468, 
1,412, 
1,062, 



664.91 
689.28 
509.13 
865.82 
196.40 
013. 56 
761.13 
921.66 I 
617. 89 
294.18 
890.84 , 
686.71 



Minor taxes. 



$249, 071. 76 
257,577.35 
141, 876. 91 
136, 615. £9 
117,792.36 
108,604.87 
131, 650. 37 
214,191.07 
107, 096. 27 
104.731.51 
105,453.12 
85, 163. 40 



Total. 



$4,655, 
4,758, 
4,694, 
4,304, 
4,659, 
3,606, 
4, 035, 
4,507, 
4, 425, 
3, 539, 
3,266, 
2,377, 



835.65 
446.22 
829.26 
207.16 
477.26 
877.74 
278.61 
920. 29 
338.49 
029.98 
583.37 
742. 21 



19,402,111.51 1.819.824.58 49,521,500.23 



The revenues of Cuba outside of those collected by the custom-house 
officials are collected by the Spanish Bank of Guba, and that institu- 
tion has a contract with the Spanish Government to make these collec- 
tions, for which service it receives 6 per cent of the collections. One 
peculiar feature of this contract to which several witnessesf have ciUled 
attention, is the fact that the Spanish Bank figures its share of the 
transaction on the receipts delivered to it, and not, as is usual in col- 
lecting agencies, upon the amount of money collected. If, therefore, 
the United States Government should decide to continue this contract 
for the present fiscal year (ending June 30, 1899), your comniissioner 
respectfully suggests that the percentage shall apply to money actually 
collected and not, as heretofore, on the receipts handed to the bank. 
The natural effect of this unbusiness-like method, according to the 
testimony of several unbiased oflQcials, is that the Spanish Bank offi- 
cials, after securing the taxes from those who pay with a fair amount 
of promptitude, return to the Government the uncollected receipts, 
yhich often aggregate large amounts. These receipts are then placed 
in the hands of Government officials, usually the administrators of the 
several custom-houses, and they endeavor to perform at Government 



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32 



COMBiEBCIAL AND INDUSTRIAL CONDITION OF CUBA. 



expense the work which they claim the Spanish Bank has already been 
paid for.* 



* The governor of the Spanish Bank of the Island of Cuba dissents from this 
criticism and has had prepared for yonr commissioner the following statement, 
which is herewith appended, and which pnts a different version on the causes of 
the discrepancies, though it leaves unaltered the fact of the heavy proportion of 
delinquent taxpayers. The facts presented would seem to indicate that the bank is 
not responsible for the large percentage of delinquents, but that other causes, over 
which the collecting agency had no control, conspire to make them of late years 
excessive : 

Statement of face value of receipU for direct taxation that have been delivered for colleo- 
tion to the Spanish Bank of the Island of Cuba from ihefieoal year 1885-86, when this 
institution oommenced the collection, with right of seizure, to 1894-95, both inoluaivef 
actual amounts collected, deductions, and amounts pending colleotian, as per vouchers 
and accounts rendered to the treasury by this institution. 



Fiscal year. 



Face value. 



188S-86 

1886-87 , 

1887-88 , 

1888-89 1 6,316,367.75 

1889-fiO , 4,878,047.21 



Pesot, 

6, 021, 271. 25 

5, 240, 651. 50 

5,386.627.83 



Colleotod. 



DeductioDS. 



1890-91. 
1891-92. 
1892-93 . 
1893-94. 
1894-95. 



5,336,611.25 
4,242,982.34 
5,857,928.97 
5, 092, 200. 41 
5,163,321.70 



Total 61,036,010.21 



Peaos. 
4,661,976.18 
4, 655, 776. 10 
4,758,446.22 
4, 694, 829. 26 
4, 304, 196. 24 
4, 659, 477. 26 
3,696,877.74 
4.635,278.61 
4,505,462.82 
4,421,631.99 



I 



Pe909. 

418,029.78 
547,435.19 
675, 840. 11 
549,628.25 
497,220.89 
671, 994. 17 
428, 374. 80 
572,890.51 
432,163.62 
534.492.41 



44,893,915.92 : 5,148,069.73 



Pending 
collections. 



Petoi. 
21,265.29 
87,440.21 
52,341.60 
71, 910. 24 
76, 630. 08 
106, 139. 82 
117,729.80 
149,769.85 
161,610.47 
207,197.30 



Per cent of 
face valae 

uncol- 

leoted. 



994,024.66 



0.423 
.714 
.971 
1.362 
1.670 
1.970 
2.774 
2.795 
8.036 
4.012 



Statement efface value of receipts for direct taxation that have been delivered for collection 
to the Spanish Bank of the Island of Cuba from the fiscal year 1895-96 to 1897-98, both 
inclusive, actual amounts collected, deductions, and receipts pending collection up to this 
date, as per data at hand in this institution. 



Fiscal year. 



Face value. 



Collected. 



Pe909. I Pesos, 

189&-96 4,802,936.06 1 8,460,998.24 

1896-97 4,589.735.08 3,283,286.51 

1897-98 4,341,112.87 1 2,260,806.74 



Deductions 
for false 
vouchers. 



Pending col- 
lections. 



Pesos. 
579, 002. 52 
547,975.70 ! 
223,119.47 



Pesos. 
762,935.90 
758,472.87 
1,867,186.66 



Total 13,733,784.01 8,995,091.49 1,350.097.09 , 3,388,505.43 {. 



R. Galbis, 
Governor of the Bank. 
Spanish Bank of the Island of Cuba, 

Section of Taxes, Accountant's Department, 

Havana, December 12, 1898, 

Under the heading of ''Face value'' is incladed the total amount of the receipts 
given by the Government to be collected. 

Under the heading of "Deductions" come the receipts to be given back to the 
Government, either because the taxpayers were dead or their properties destroyed, 
or else a mistake of some kind had been made by the treasury officials. 

Of course these must be deducted f^om the total amount. Take, for instance, the 
charges of the first ten years— from 1885 to 1895. These amount to $51,036,010.21. 
The deductions are $5,148,069.73, making the net total of receipts $45,887,940.48, oat 
of which the bank collected $44,893,915.92, leaving a balance uncollected of only 

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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



33 



Tlie effect of this system, as will be readily seen, is a great discrep- 
wcy between the face value of tax receipts handed to the Spanish 
Bank for collection and the actual amount of money collected. The 
first of the above tables shows, for the years 1886 to 1898, the face 
value of the tax receipts for city property, for rural real estate, licenses 
en professions, trades, etc. The second table gives the amounts, classi- 
fied under the same heads, of these receipts which were collected for 
the re8i>ective years. It will be noted in both the above tables that the 
eolumns translated as ^< minor taxes" are identical. This is probably 
due to the fact that under this head come sales of stamped paper for 
official communications, for real-estate transfers, and other purposes, 
in which case the purchaser purchases of the bank direct, paying in 
advance, so that the full face value is collected. 

The following table is compiled from the totals of the detailed tables 
above, and shows the amount of the taxes collected by the Spanish 
Bank of the Island of Cuba and the amount and percentage of delin- 
quent taxes iu each year for twelve years. It is probable that the 
amount for the half of the present fiscal year is relatively greater: 

Tax receipts handed to Spanish Bank for collection. 



Yean. 



Face value. 



1887-«. 



18M^l. 



UA24I8. 
1803-94. 



18W-97 

iWT-as. 



$6. 
5. 
5, 
4, 
5, 
4, 
5, 
5, 
5, 
4, 
5, 
4, 



240, 
386, 
316. 
878, 
336, 
242, 
367, 
092, 
163, 
907, 
042, 
430, 



651.50 
627.83 
367.00 
047.21 
611.26 
982.84 
928.97 
200. 41 
821.70 
654.17 
205.00 
595.15 



Actual amoimt | 
collected. 



♦4,665, 
4,758, 
4,694, 
4,304, 
4,659, 
3,696, 
4,635. 
4,507, 
4,425, 
3,539. 
3.266, 
2,877, 



835.65 

446.22 

«20.26 

207.16 

477.25 I 

877. 74 

278.61 

920.29 

338.49 

029.98 

583.37 

742.21 





Percentase 


Total delin- 


of delin- 


qaent taxea. 


qnent tax 




each year. 


$684,815.85 


11.16 


628, 181. 61 


11.66 


621,538.34 


11.69 


573,840.05 


11.76 


677, 134. 00 


12.69 


646. 104. 60 


12.87 



722, 

584, 

737, 

1,368, 

1, 775, 

2,052, 



650.36 I 

280. 12 

983.21 

624.19 

621.63 

852.94 



13.49 
11.47 
14.29 
27.88 
35.21 
46.33 



Total I 60,395,193.13 49,521,566.23 10,873,626.90 



18.04 



994,024.56 throngh defaalt of the taxpayers, more than one-fifth of which, say 
1207,197.30, belongs to the year 1895, when the insarrection broke out. 

The proportion, then, between the amount of the invoice given the Spanish Bank 
for collection and that actually collected is not a bad one, for it only leaves 2 per 
eent nnoolleoted. Before the Spanish Bank undertook the collection of taxes the 
treasury used to collect only 65 per cent of the total invoice, leaving 35 per cent 
nneoUected. The results obtained by the bank have been very remarkable. 
•It has been said by the Spanish Qovemment officials that some of the invoices 
returned by the bank could have been collected ; but in the majority of cases that 
wts not to, and only through neglect or error on the part of some of the Govern- 
iBent offioers who are poorly informed on wealth statistics some receipts were made 
out which ought never to have been written. 

The Spanish Bank collects the taxes in a truly businesslike manner, has never been 
lurd on the taxpayers, always sending them by mail previous notice of their dues 
Wore taking executive proceedings. 

It is financially a trustworthy corporation, having refused to avail itself of the 
permisinon given by the Government to stop payment of the principal and interest 
<n) the munieipal mortgage bonds. 

10380 3 rooalp 

Digitized by VjOOv LC 



34 COMMERCIAL. AND INDUSTRIAL CONDITION OP (^UBA. 

Of course thin difference does not absolutely represent the uncol- 
lected taxes, because the Government officials may have been able 
to secure collections from some of the delinquents; but it shows that 
the total amount of taxes for the twelve years were upward of sixty 
millions, of which less than fifty millions was collected, being a delin- 
quency of over 18 per cent. Of course the high percentage is largely- 
due to the delinquencies resulting from the three years of war, which 
show a percentage of 28, 35, and 46 per cent, respectively. For the 
last year we may say roundly nearly one-half the tax receipts handed 
to the Spanish Bank of Ouba for collection for one cause or another 
were returned uncollected. 

Large as this delinquent tax list is, there will be little or no chance of 
the arrears being collected. The sugar and other agricultural estates 
are unable to pay these taxes, a fact which has been recognized even 
by the present government. The local parliament, with the consent of 
the Gaptain-General of the island, August 1 last, sanctioned a law espe- 
cially intended for the relief of rural estates, but which also grants other 
relief from tax arrearage which wiU end in wiping out much of this 
arrearage. The following extracts cover the important features of the 
law of August, 1898, but the full translation will be found in the appendix : 

Indebtedness for taxation daring the fiscal years of 1895-96, 1896-97, 1897-98, on 
rural real estate, where the buildings' and produce have been completely destroyed 
by the insurrection or where three-fourths of the produce has been destroyed as 
compared with the crop of 1894-95, are hereby canceled, as well as all executive pro- 
ceedings that may have been commenced thereon. The indebtedness during the 
same period of sugar estates which have suffered damage to their factories and fields, 
but which have been able to send to another central a number greater than one- 
fourth, but less than one-half, of the total number of arrobas of sugar cane produced 
in the year 1894-95, and which have saved some minor cultivation and pastures, are 
hereby reduced to 50 per cent. 

All indebtedness on farms for same period not included in the two cases above 
mentioned wiU be reduced 25 per cent. 

The costs accrued by executive proceedings on the above-mentioned farms during 
said period will be subject to the same reduction as the main indebtedness. 

Art. 3. The indebtedness on city property during the years 1895-96, 1896-87, 
1897-98, which has been completely destroyed by the insurrection, is canceled for 
that period, even though the destruction may have been affcer any of the above- 
mentioned years. This same canceUation wiU be extended to houses which have 
been occupied by troops or for military' service, provided no compensation may have 
been demanded for this service and no claim for rent for this purpose and period be 
made. This cancellation will only be aUowed for periods of actual occupation of 
the property by the troops. 

Art. 4. A term of one year, which may be extended, is hereby given to all tax- 
payers whose property may have been seized by the treasury municipaUties for 
taxes at the time of the publication of this law. They may recover their property 
by paying the principal, the fees of the executive agent, and those of appraisement, 
should the latter have been effected ; the proprietor reserving his right to appeal 
against either should he consider them excessive. Those unable to avail themselves of 
this right will be aUowed a reduction on their taxes of 25 per cent of the principal, 
also the total interest and stamp tax. In no case will the right of redemption be 
allowed to the detriment of third persons who may have acquired the property in 
due and legal form. 

uigiTizea by VjOOQIC 



COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 35 

Abt. 5. All indebtedness peDding collection prior to the 1st of July, from direct 
taxation or additional taxes since suppressed, that are not a special lieu against 
the property, are hereby totally canceled and will cause a reduction in the accounts 
of public income. This cancellation will be extended to officials whose accounts 
at that time show an indebtedness to the Government, provided it does not arise from 
embezzlement or misappropriation of funds, as also debts of officials subsidiarily 
reeponsible by reason of insolvency of others. 

All indebtedness for taxes and other above-mentioned causes for the years 1882-83 
to 1891-92, both inclusive, not exceeding $100, are reduced to four-fifths if t^ey are 
paid within six months. 

All indebtedness exceeding the above amount can be reduced 50 per cent if paid 
within one year. 

A reduction of 25 per cent and the interest will be deducted Arom all indebtedness 
for custom-house duties, royal dues, property sales, quitrents, and all debts similar 
to mortgages, corresponding to the years 1882-83 to 1891-92, if they are paid within 
one year. 

lu view of the small amoant of taxes collected on the rural estates, 
amoantiDg, as has been shown, to aboat 10 per cent of the total taxes 
levied, and of the fact that last year the Spanish Bank was only able 
to ooUect about this percentage on the total tax receipts handed that 
institotion for collection, consideration is invited to an appeal of the 
Planters' Association of Cuba for a total repeal of these taxes for a 
period of some years. In this appeal the planters, whose representatives 
appeared before your commissioner in Havana, say: 

The class of planters being, as you know, the one that has suffered the most in the 
present war as well as in the former — and their industry is the source of greatest 
wealth to the country — we consider ourselves authorized to solicit of the Government 
a protection which we do not doubt will be accorded us. 

The island of Cuba, whose immense agricultural wealth is represented in the 
costly plantations and sugar factories, has lost 60 per cent of their total number by 
the disastrous war, which fortunately is coming to an end for the good of aU con- 
cerned, and should this happen, as it must, the Government will have to be very 
carefhl to ad^just matters in such a way that all are benefited in the same proportion. 

We solicit, therefore, that the Government of the United States waive for eight y ears, 
beginning in the fiscal year 1898-99, all taxes, that we may be able to reconstruct a 
part of what has been destroyed. This measure will not improve the condition of 
the planters (who have the honor oi addressing you) very much, but it will be very 
important; as it will enable them to rebuild plantations that have been destroyed. 
As you will easily understand, all measures taken by planters for this object will 
have to be done openly. Whether cultivation of vegetables, or the raising of cattle, 
or anything else that may be undertaken, should be subject to taxation, it would dis- 
courage all planters from their enterprises, as they would not have means to pay 
the taxes; it will be all that they will be able to do to defray their expenses Arom 
the proceeds of this work. We beg, therefore, to caU your attention to this matter 
and hope that with a firm hand, for the public good, the suspension of all taxation 
above-mentioned, during the period of eight years, be decreed. 

While your commissioner is not prepared to make a definite recom- 
mendation on this matter, it'is a subject that should receive immediate 
attention on the advent of the United States authorities. Plantations 
and rural real estate are undoubtedly taxed very low in Cuba. Under 
any sort of prosperity they could aftbrd to pay more, but for the 



Digiti 



ized by Google 



36 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



present the burdens of the agrieoltorists are as mach as they can bear. 
The whole subject should be inquired into and a new scheme of taxa- 
tion prepared to be put in force the next fiscal year — the year ending 
June 30, 1900. 

CUSTOM-HOUSE RECEIPTS. 



In a report of this nature, and especially in order to secure all possi- 
ble data that might throw light upon future collection of revenue in 
Cuba, it was deemed necessary to secure the receipts for a period of years 
of each custom-house. It has been possible from the official data of the 
Sx>anish Government to obtain this information for each custom-house, 
for each month during the period embraced in the years 1886-1897, 
inclusive. While this information may be of some use to the officials 
of the United States GK>vemment in collecting the revenues, it was not 
thought worth while to include such detail tables, eveu in the appendix 
of this report. Tour commissioner, therefore, caused to be compiled 
the following statement of receipts for customs duties on imports and 
on exports, and a general statement of the custom-house receipts in 
the island of Cuba, by custom-houses, from 1886 to 1897: 

St nt of receipts for otisiome duties on imports at the Cuban custom-houses from 1886 

to 1897, incluMve. 

[Compiled under the direction of Kobert P. Porter, special commissioner to Cuba and Porto Rica,] 



Castom-hooses. 



1886. 



1887. 



1889. 



1880. 



Havana 

Hantanzas 

Santiago de Cuba 

Cardenas 

Clenfaegofl 

Trinidad 

Sagna la Qrande . 

KueWtas 

ManianiUo 

Caibarien 

Gibara 

Baracoa 

Zasa 

Onantanamo 

Santa Cms 

Total 



$8,481,117.12 

698, 709. 12 

638,646.02 

986, 818. 07 

950,625.39 

20,516.68 

141,477.29 

102,481.41 

30, 476. 97 

23.986w6a 

52,666.30 

89, 179. 32 

2,987.17 

74.666.12 

6,645.08 



$6,770,488.68 

618,373.31 

595,044.74 

256, 143. 99 

831,210.86 

11.241.38 

106,896.43 

88,412.22 

27,688.68 

46,801.76 

60, 781. 82 

26,632.27 

3,068.90 

75,216.65 

6,861.70 



17,979,179.18 

730.387.21 

660, 128. 00 

285,697.76 

902,098.68 

18. 703. 58 

130,009.26 

122,008.08 

42,066.22 

81,678.79 

66,304.67 

46,452.80 

4,677.06 

92, 012. 10 

4,126.99 



$8,376,134.24 
947,893.96 
665,888.64 
820,621.42 
974,626.75 

19,107.29 
189,717.12 
126,947.48 

47, 188. 87 
109,613.26 

66,129.63 

61,746.22 

6,707.68 

113,636.42 

4.785.42 



$9,675,750.98 

1,078.559.38 

743,630.08 

834,084.96 

1,884,216.69 

22,225.84 

266,928.58 

171,700.21 

56,821.68 

194,167.04 

76,889.66 

85,868.41 

7,704.51 

189,422.57 

4,827.94 



11,650,085.55 



9,509,171.68 



11,166,610.22 



12,017,691.89 



14,236,781.51 



Cnstom-hoases. 



1891. 



Havana 

Matansas 

Santiago de Caba . 

Cardenas 

Cienfnegos 

Trinidad 

Sagna la Grande.. 

Nnevitas 

Manzanillo 

Caibarien 

Glbara 

Baracoa 

Zaea 

Guantanamo 

S«nta Cms 



$9,609,737.95 

1, 105, 864. 72 

787,754.76 

303, 522. 14 

1,298,964.66 

17, 104. 43 

334,908.97 

120, 670. 29 

78,466.07 

180, 043. 42 

40.456.86 

44,456.96 

8, 06a 44 

114, 131. 04 

6,211.50 



Total. 



13,945,351.09 



1892. 



$6,978,729.20 

800,855.66 

607,605.86 

266, 698. 61 

1,034.440.70 

1, 063. 05 

211,283.45 

111, 433. 76 

38.426.81 

116. 048. 60 

26,587.77 

5, 647. 39 

4,289.68 

74, 082. 12 

6,006.26 



1893. 


1894. 


$6,865,412.96 


$7,889,372.82 


693,636.31 


700,259.65 


486,108.92 


638,474.07 


275, 431. 13 


410.393.61 


1,179.017.26 


1.231,796.83 


7.266.96 


6.398.15 


269,664.90 


281,064.06 


107,476.78 


129,508.36 


29,323.72 


72,751.30 


149, 987. 38 


193.628.23 


18,500.32 


66,162.08 


7,061.73 


18,947.55 


831.82 


7.671.74 


73,261.62 


136.446.28 


2,896.29 


2,720.33 



10, 182, 897. 81 



10,166.776.99 i 



11.788,573.96 



/Google 



COMMERCIAL AM) INDUSTRIAL CONDITION OF CUBA. 



87 



St aU m &m tQf reeeipU for cv9tam9 duties an imports at iho Cuban oustom-houses from 2886 

to 1897 J inoluHvo—Coniasme^, 





1895. 


1896. 


1897. 


Total. 


HSTSDA 


$8,880,136.88 
856,696.65 
737, 520. 89 
481,210.71 
1,305,982.44 
6,826.05 
387,710.51 
150,406.51 

108. 150. 86 

144. 109. 87 
106,842.64 

82,671.24 

7,608.08 

156,470.92 

7,684.13 


$7,194,829.61 

212,179.46 

636,868.37 

126,012.60 

1,044,719.94 

8,033.08 
94,993.38 
145.4U.63 
118,698.08 
110,607.20 
126,084.21 

1,303.48 

1,658.80 
122.787.21 

8,397.18 


$7,064,881.90 

.249,421.27 

429,756.26 

127,721.90 

1,002,112.69 

6,070.96 

77,341.96 

82.928.39 

88,070.62 

95,392.13 

66,160.65 

3,708.62 


$94,594,266.76 


If StMICAfl 


8, 687, 786. 48 


8«^DtiAg>> d^ Cnh^ r- 


7, 506, 216. 60 


OiM<4ftlJM 


3, 572, 856. 60 


(SmftieinM 


18,189,650.85 


Trteidad 


143, 656. 29 


SsfnA \tk G^rABde 


2,489,066.80 


HueritAs 


1,467,387.02 


Mftti^MiiiUlo .................. 


727, 978. 28 




1, 524, 143. 75 


eftara 


760, 464. 60 


BarsooA. 


873, 409. 84 


Zaxa 


64, 241. 88 




66,424.66 


1,238,386.51 


SmtftCroz 


66,150.82 






Total 


13,327,966.78 


9,946,571.02 


9,344,499.89 


136, 886, 468. 94 







SUOemeni of reoeipts for duties on exports mt the Cuba oustom-houses from 1886 to 1897, 

inclusive. 





1886. 


1887. 


1888. 


1889. 


1890. 


Hayann .... 


$1,674,758.45 

472,687.25 

43,083.01 

524.483.47 

884,621.49 

28,294.82 

322.000.06 

25,434.03 

40,903.86 

129,390.68 

77,924.30 

17.33 

9,186.65 

91,440.48 

6.367.78 


$1,010,824.67 

215.644.21 

88, 523. 09 

252,689.28 

151,805.59 

18,820.43 

181.074.49 

18,001.03 

86.050.60 

41. 066. 39 

47,968.98 


$908,892.35 

957.44 

7,015.18 

4,704.53 

3,033.04 

1,602.25 

52.23 

8,157.38 

9,981.86 

657.26 

54,757.99 


$931,011.75 

1,561.20 

11,470.72 

2.399.87 

3.400.62 

575.60 

328.58 

11,703.99 

18,846.38 

2.368.89 

38.402.52 


$926,168.10 
1 186.41 


Mid»n«u> 


Santiago de Cuba 


U, 085. 56 

2,948.18 

4.485.46 

805.62 


Canlenaff ,, 


^enfeocos 


TTinidM 


SaeuAla G-rande 


619.36 


KmvitaB , . 


8.957.66 

13,204.82 

1, 247. 16 


ManaaniUo 

GUbarien 


Oiban 


25,204.89 


BarafHW 


Zaaa 


4,932.82 

49,682.18 

5,504.05 


2,286.10 

118.60 

3,573.84 


3,947.49 

160.41 

4,002.42 


5,542.82 




164.74 


Santa Cm?' .-.». 


5,730.53 




Total 


3.680,693.41 


2,071,796.76 


1,006,239.89 


1,031,170.48 


1,007,340.65 





KoR.— The remarlcable decrease In receipts after 1888 is due to the sepitration thereafter of these 
doea fi'om port dnes on shipments. 





1891. 


1892. 


1898. 


1804. 


Havana 


$994, 408. a 

1,110.67 

7, 184.31 

1,786.11 

6,229.64 

627.19 

414.68 

7,789.61 

11.274.87 

998.69 

14,887.67 


$1,009,689.07 

946.92 

5,420.06 

1,163.05 

3,609.21 

106.43 

18.50 

7,691.18 

10,841.19 

438.88 

31,553.88 

10.04 

3,054.46 

n.7i 

5.943.26 


$926,818.05 


$965,873.80 
23 62 


Iffatanzan 


Saatfa^ de Caba 


22,144.84 

27.63 

3,142.64 

8.18 


10,763.21 
588.11 


OudfllMS 


CImfVieiroSr ,-,.,.^.T--r--^^r- 


6,183.30 
251 95 


Trinidaa 


Saffoala Grande 




KoeYltas 


4,002.16 

12,872.02 

103.60 

22.260.59 


2,760.16 
16.824.96 


Ifaiisanillo 


G^dbarien ^ 


QflMra 


63,178.96 


Bataeoa 


Zaia 


5,050.48 

58.50 

7,624.04 




823.29 






323.01 


Santa Cms 


1,657.15 


2,881.17 




Total 


1,058,324.00 


1,079,946.69 


992,026.76 


1,059,926.62 





Digiti 



ized by Google 



38 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

pporto ol ike Cuban 
i<s«ir0— Continued. 



Siaiemeni ofreodipUfw duUe$ on exparU aijhe Cuban ouitam-houBe* from 1886 to 1897, 



Cutiom-hoiisM. 



1895. 



1886. 



1897. 



Hatuui.. 



SMitUgo de Cab*. 

Cardeiuw 

Cienfoegot 

TrinidAd 

Sagoa la Gnuide. . 
KoevitM 



OalbMiea. 

Gibara 

Baraooa 

Zasa 

Gaantaiuuiio. . 
Santa Cms .. 

Total.. 



$1,319,160.07 



1789,438.07 



1,122.77 

144.82 

14,824.61 



11.36 

2,497.88 

14,78L61 

660.30 

38,914.88 



1.888.08 
146.82 
18,171.88 ; 



131.46 I 
313.35 !. 
1,664.23 I 

i,9n.eo I 

0,149.33 



1,782.41 ! 

07.84 
7,108.07 I 



478.71 
62.62 
488.61 



$292,661.78 



2,686.28 

63.40 

8,647.33 



369.29 



142.89 
2,666.64 
1,832.46 



Total. 



122.04 



$11,638,487.00 
694,017.02 
162,286.00 
791,079.17 
661,604.80 

61, 100. 50 
606,016.70 

97.906.28 
186. 018. 08 
181,879.00 
426,026.84 
28.37 

87.036.18 
142.806.08 

61,776.77 



1,801,032.87 



828,887.26 , 



303,870.06 



16,416.280.03 



Statement of total ou^tom-hoMe recoipt$ in Uland of Cuba from 1886 to 1897, inclusive. 



Cofltom-hoiisea. 



Havana 

Hatansaa 

Santiago de Caba 

Caidenaa 

Cianfoegos 

Trinidad 

Sagoa la Grande . 

NneTitaa 

Mansanillo 

Caibarien 

Gibara 

Baraooa 

Zara 

Gnantanamo 

Santa CroE 

Total 



1886. 



1887. 



1888. 



1889. 



1880. 



$10,065, 

1,171, 

681, 

010, 

1,286, 

48. 
463, 
127, 

71, 
168, 
180. 

39, 

12, 
166, 

13, 



875.57 
896.37 
629.03 
801.64 
146.88 
810.40 
478.16 
915.44 
409.83 
377.36 
479.60 
196 65 
17a. 72 
015.60 
012.81 



$7, 781, 108. 20 

833, 017. 62 

633,567.83 

607,833.22 

982,516.95 

30,070.81 

284,070.92 

106,418.25 

63,689.23 

86,368.14 

98,760.80 

26,632.27 

7,986.72 

124.927.83 

12,865.75 



$8,887,571.48 
7X1,344. 66 
667,143.18 
290,402.29 
906,181.72 

20,305.83 
130,142.48 
130, 166. 41 

52, 048. 08 

82,336.04 
121,062.56 

46,452.80 
6, 013. 16 

02,130.60 
7,090.83 



15,380.778.96 11,580,968.44 



$9,806,146.99 
949,466.16 
667,859.86 
823.021.29 
978,017.87 

19,682.98 
JL90.046.65 
187,651.47 

66,084.75 
111,982.16 
104, 532. 16 

01,746.92 

9,056.17 

113,796.88 

9,687.84 



$10,601,913.00 

1,074,746.70 

764,716.04 

837.027.00 

1,88a 701. 11 

23,081.40 
267,647.04 
180,667 77 

70,026.40 
195.404.10 
101, 094. 06 

85.863.41 

13,247.88 
130,687.81 

10,568.47 



12, 160. 860. 11 13, 048, 762. 37 ; 16, 244, 122. 10 



Oostom-hoiues. 



1891. 



1892. 



Havana 

Ma t an aaa 

Santiago deCuba. 

Cardenas 

Cienftiegoa 

Trinidad 

Sagoa la Grande.. 

Nuevitaa 

Mansanillo 

Caibarien 

Gibara 

Baracoa 

Zasa 

Gnantanaitao 

Santa Cmz 



Total. 



$9,604,146.39 

1, 106, 075. 29 

794,930.06 

305,258.26 

1.304,184.20 

17, 731. 62 

386,328.55 

128,459.90 

84.740.44 

180,972.01 

66,344.62 

44,460.96 

18,116.92 

114, 190. 44 

13,886.64 



14,008,675.09 



$7,088,418.27 

801,802.67 

512,926.92 

267,861.66 

1,088,049.91 

1,168.48 

211,296.96 

U9,024.94 

48.768.00 

116,482.38 

57.141.60 

6,668.83 

7,844.14 

76,069.83 

11,947.52 



11,262.850.50 



1893. 



$7,781,781.00 

693,686.81 

608,268.76 

276,458.76 

1,182,169.90 

7,276.14 

269,664.90 

111,478.91 

41.695.74 

150,090.88 

40, 760. 91 

7,061.73 

831.82 

73.261.62 

4,652.44 



11,147,803.76 



1894. 



$8,845,246.08 

700,283.17 

649,287.98 

410,98L72 

1,287.929.92 

6,660.10 

281,064.06 

182,266.62 

89,076.26 

193,628.28 

129,831.04 

18,947.86 

8,496.08 

185,760.29 

5,601.60 



12,843.499.68 



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COMMERCIAL AND ENDUSTBIAL CONDITION OF CUBA. 



39 



ftelemeiil of toiaX oii«(am-^u«e rtoeipU tn inland of Cuba from 1886 to 1897, inclusivt 

Cod tinned. 



Custom-houses. 



1895. 



1896. 



Hsrjuia 

Matdiius 

Saotisfco fie Cub* . 

Cvdenas 

QoifQeffos 

Trinidsd 

Stpis Is Grande.. 

Sneritss 

ManuQiUo 

Csibsrien 

Glbsra 

Bsneos 

Zsxa 

GnsnUnsiDo 

SuLACroz 



0,049,286.90 


$7,984,265.68 


856.696.55 


212.179.46 


738, 643. 66 


637,746.45 


481, 365. 5:^ 


126,158.51 


1,320,757.06 


1,062.891.32 


6.826.05 


8,033.03 


387,721.87 


95,124.84 


161,903.39 


145,727.88 


122,882.37 


120,352.31 


224.849.67 


112,584.89 


J44, 757. 47 


135,233.54 


32,671.24 


1,303.43 


9, .380. 49 


2,132.01 


156,668.76 


122,839.73 


14,788.10 


3,885.79 



Total. 



14, 708, 589. 10 



10,770,458.87 



1897. 



$7,347,043.68 

249,421.27 

432,340.49 

127,775.30 

1, 006, 660. 02 

6,070.96 

77, 711. 24 

82,928.80 

83, 213. 51 

97,947.77 

68, 002. 10 

3,708.52 



66,546.70 I 



Total. 



$106,132,753.38 
9. 381, 754. 10 
7,668,501.66 
4,363,935.76 
13,691,144.66 

194,666.85 
2, 994, 082. 56 
1, 564, 596. 30 

913,896.91 
1,706,523.71 
1,186,480.84 

373, 408. 11 

91, 276. 61 

1,380,683.44 

107,935.69 



9.648,369.94 



161,760,728.87 



From these three tables it will be seen that in the twelve years end- 
ing in 1897 the Cuban castom-hoases yielded $151,750,728.87; that of 
tMB amount $136,335,468.94 was for duties on imports and $15,415,259.93 
from duties levied on exports from the island of Ouba. The relative 
importance of the several custom-houses of the island may be seen by 
a glance at the following table: 

Total oustom-hoMB receipts in island of Cuba from 1886 to 1897, inclusive. 



Custom-houses. 



HsTsna 

Clenfaegos 

Mstonzaa 

Ssotisgo de Cuba. . 

Cardenas 

Smhu la Grandee. 

Oribsrten 

Vnetitas 

GoantanaiDo 

Qibsra 

IfanuiiiUo 

Baracoa 

Triaadad 

Ssnts Cruz 

ZSM 



Total. 



Total for 12 


Average per 


Ratio of 


years. 


year. 


tout. 


$106,132,753.38 


$8, 844, 396. 11 


69.9 


13, 691, 144. 66 


1,140,928.72 


9.0 


9,381,764.10 


781,812.84 


6.2 


7, 668, 501. 66 


639, 041. 81 


6.1 


4, 363, 935. 76 


363,661.32 


2.9 


2,994,082.56 


249,606.88 


2.0 


1,705,523.71 


142, 126. 97 


1.1 


1, 564, 696. 30 


130,382.94 


1.0 


1,380,693.44 


116,057.79 


.9 


1, 186, 480. 34 


98,873.37 


.8 


913,896.91 


76, 158. 07 


.6 


378,498.11 


31, 124. 85 


.2 


194,666.85 


16,221.40 


.1 


107,935.69 


8,994.63 


.1 


91,276.51 


7,606.88 


.1 


161,760,728.87 


12,646.894.08 


100.00 



Daring the twelve years it will be noted that the largest amount of 
revenue was in 1886, when it was $15,330,778.96, and the smallest 
amount last year, namely, $9,648,369.94. The intelligent student of 
Ouban fiscal matters will not only be able to ascertain the relative 
importance of the several custom-houses, but the receipts show the 
working of the reciprocity treaty, which, while it greatly added to the 
prosperity of the island, decreased the revenues which Spain sought 
to secure for herself. These tables should be studied in connection 
^th the exceedingly interesting statement quoted in the body of this 
report and printed in ftdl in the appendix, by Mr. Munoz; or at least 



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40 



COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



SO much thereof as relates to the tariff. The figures merely emphasise 
the words of this capable writer on the fiscal conditions of Gaba. 

From the above table it will be seen that the total amount of revenue 
collected during these twelve years averaged $12,645,894.08 per year; 
that the custom-house of Havana collected 69.9 per cent, and Oien- 
fuegos — which is an important city and, in the opinion of your commis- 
sioner, the city which, under the new conditions, will show the most 
rapid development— 9 per cent, ranking second. In the custom-house 
district of Santiago the average revenue receipts per year have been 
5.1 per cent. 

The following is a similar table to those given above, but gives at a 
glance the receipts for customs duties on imports and exports at each 
port: 

Receipts far ouatams dutie$ on imports and exports, ISSe-lSSJ, 



Cnstom-hoiiseti. 



Havana 

CienfaegoB 

Matanzaa 

Santiago de Cuba 

Cardenas 

Sagoa la Grande. 

Caibarien 

Kaevitaa 

Onaataiiamo 

Gibara 

ManzaniUo 

Baracoa 

Trinidad 

Santa CruK 

Zasa 

Aggregate. 



Imports. 



Average, 12 
years. 



j Per cent 
of total 
imports. 



Exports. 



Average, 12 
years. 



Percent 
ol total 
exports. 



855.48 ! 

962.53 I 

978.04 

517.97 

738.05 I 

422.23 I 

011.98 ! 

282.26 I 

198.88 ' 

371.21 

664.85 

122.49 ■ , 

963.02 

679.98 

520.12 

11.361.289.08 ! 8.33 



$7, 882, 

1,094, 

723, 

6S5, 

2D7, 

207. 

127, 

122, 

103, 

63, 

60, 

31, 

11, 

4, 

4, 



f961,540.63 ' 

46,966.19 

57,834.80 , 

13,523.84 I 

65,92:^.27 

42,084.65 

15,114.99 

8, 100. 69 

11,858.91 

35, 502. 16 

16,493.22 

2.36 

4,258.38 

4,814.65 

3,086.26 



1,284,606.00 



8.8S 



From figures just received from the collector of customs, Mr. Donald- 
son, it would seem that, with the present reduced tariff, he will prob- 
ably keep the amount up to this average, if not largely exceed it. 

Exact statements of fiscal matters are so difficult to obtain in Cuba 
that when such data come to hand they are all of the utmost value. 
The present administrator of customs at Matanzas, Mr. Emilio del 
Mannol, and his efficient assistant, Mr. Carlos Sauz, prepared for your 
commissioner exceedingly valuable data in relation to the administra- 
tion of that custom-house. The following comparative receipts of the 
Matanzas custom-house for three years before the war and three years 
after the war will be of especial value in estimating the Ouban reve- 
nue from this source: 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

C&mpmrathe receipts of Mataneaa eustom^-iUmse. 
FOR THREE YfiARS BEFORE WAR. 



41 





1802-03. 


1803-94. 


1804-05. 


Total. 


Twipwt dnty . u 


$718,866.60 


1478,846.77 


$588,528.23 
14.058.56 
37,250.18 


$1,786,241.60 

14,058.56 

08,080.87 

28.62 


15 per cent iidditloDal on import duty . 
10 per cent Additional on import du^ . 
Sxporti dnty 


32,007.65 


24,682.54 

23.62 

1,851.60 

21,857.88 

13.00 

2,853.48 


f ri^niHnfr tni , . 


5.105.38 

80,468.67 

0.50 

2,136.06 


117,406.67 

28,238.07 

28.60 

1,807.70 

617.64 


124,458.6<> 

80,660.68 

51.06 


TJnload&ff tax 


"P^TtMi jTMr tax 


"WIbMMI X . .... . 


6,378.25 
617 54 


T»t«>rMrt on notitt 


'^is^s-^ 




4,010.60 


4,010.66 
100.72 


ims-H 




190.72 
75,470.62 


Ooiuwiin»tion of Hqnor . ,. .. 


72,840.04 


73,346w08 


221,666.74 




Total 


861,604.77 


608,844.38 


863,200.78 


2,888,15&03 





FOR TEOtSE YEARS AFTER WAR. 





1806-96. 


1806-87. 


1807-08. 


Total. 


DifSerenoe in quarter. 




1806-06 


1807-08 




$202,601.60 
18,518.18 
32,640.70 


$140,354.66 

5,138.48 

20,607.00 


$247,017.55 
2,310.06 
7,754.26 


$680,063.80 
20,076.62 
61.002.05 




$1,106,277.80 


15 per ceni additional on 
import dnty 


$6,018.06 


10 per cent additional on 
import duty 


82,086.42 
28.62 


Vxport dnty 




Loadlnctax 


40,066.24 

15,356.97 

81.00 

865.50 


80,324.64 

0, 200. 23 

85.00 

122.02 


31,000.72 

11,723.68 

.25 

800.10 


111.410.60 

36,370.83 

66.25 

1,286.62 




18, 042. 00 






44, 180. 70 


Panecmcftr tax 


16.25 




Ftaiee.r. 


5, 081. 68 


iBtereet on notes 





617.64 




3.06 

3,387.55 
814.08 






8.06 ! 3.06 




Pendij^ trom— 






3,387.65 




1,581.05 


1893.94 






814.00 

24.74 

1, 123. 83 

86,008.38 


614.37 

24.74 

1,123.33 




1804-86 


24.74 






1886-87 




i, 123. 83 
18.500.00 




Gonanmption of liqaor 


30,229.20 


28,270.18 


135. 567. 41 






Total 


447,624.00 


284, 185. 88 ^1 787. SO 


1,003,548.67 


8,600.71 


1, 338, 300. 07 











The above may be summarized as follows: 





Import duty. 


£xi>ortduty. 


Total. 


Dnrinr thnM^ YMm befinw inflnrreoti^n ^ -...,. ^ . r ..... r 


$2,208,681.81 
802, 138. 07 


$124,477.12 
111,410.60 


$2, 333, 158. 08 


Dnrinf^ tlir«« yeara of war ,.,^-, ,^-,-, .,.,... . 


1, 003, 548. 67 






Total loss of revwine 


1,316,543.74 


13,066.52 


1, 320, 610. 26 







It shoald be borne in mind that the decrease in revenne, as above 
indicated; is actually more than appears from the flgores ($1,329,610.26), 
when consideration is given to the facts that the McKinley reciprocity 
treaty, which was in force from Joly 1, 1892, ended on Augnst 27, 1894, 
the very i>eriod that is herein compared. 



Digiti 



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42 



COMMEBCIAL AND INDUSTRIAL CONDITION OF CUBA. 



For the same i>eriod the decrease in taxes from other sources than 
costom-hooses for the Matanzas district was as follows: 

Direct taxe» oolleoted in Maiantas during three years hrf&re war and three years of war. 







Industrial 


Total. 




Coimtry. 


City. 

$106,000.97 
127.719.17 
110,508.12 


Uixet. 

$126,974.00 
180,924.55 
122,088.90 


JoIt 1 to June 30. 1898 


$80,610.06 
03,682.44 
06,085.76 


$292,486.08 


July l,i~8»B, to Jime 80,1^ 


822,230wl6 


JnlT 1. 1894. to Jnne 80. 1896 


804, ?03. 78 






Darini^ thrM yeurs befon wWr r.... r.x 








918,978.96 






— — ^-— ^ 






JoIt 1. 1895. to June 80. 1890 


89,900.40 

24.882.90 

6,797.60 


100,420.08 
92.740.08 
58,477.96 


70,176.72 
75,188.85 
52,718.90 


216, 568. 20 


Jnrr 1. 1890. to Jnnfi 30. 1897 


192,806.97 


JoIt 1.1897. to Jime 80. 1898.. 1 


112,089 64 






Dnrioi^ thrM yeArt of wkc. .....t,. ........ 








522,864.71 












Differonoe In reoeipto 








896,009 26 













All of which is respectftdly snbmitted. 

BOBEST P. POSTES. 

Special OammisHoner for the United States 

to Cuba and Porto Rico. 
Hon. Lyman J. Gaoe, 

Secretary of the Treasury ^ Waahingtonj D. 0. 
NOYEMBBB 15, 1898. 



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REVENUE AND EXPENSES OF THE ISLAND OF CUBA 
FOR THE FISCAL TEAR 1898-99. 



L BALANCE SHEET OF REVENUE AND EXPENSES FOB 1898-99 
(ESTIMATED). 

n. BSTMATES AND SOUBCES OF BEVENUE FOB 1898-99. 
m. ESTIMATED SOVEREIGNTY EXPENSES FOB 1898-99. 
IV. ESTIMATED LOCAL EXPENSES FOR THE ISLAND OP CUBA 
FOB 1898-99. 



Compiled from official soaroos under the direction of 

ROBERT P. PORTER, 

Special CtmmUaioner fw ike United States to Cuba and Porto Bieo. 



43 



Digiti 



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Digiti 



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REVENUE AND EXPENSES OF THE ISLAND OF CUBA FOR THE 
FISCAL YEAR 1898-99. 



L— Balancb of thb Rfi venue and Expenses of the Island of Cuba for the 

Year 1898-99. 



Expense*. 


Peaoa. 


Revenue. 


Pesos. 


SoT^reimtr exiMn8«fi , 


22,500,808.50 

159,605.50 

1,612,859.44 
708,978.51 
247,038.02 

1,086,582.10 

108,178.52 


Tatah AnH imnrkatA . ._ 




Loealexpensee: 

General ezDeneea 


6. 142, 500. 00 
14.705,000.00 
1,640,650.00 
1,900,500.00 
435,000.00 
1,586,000.00 


Stete-chorch, Jtutloe, and 


Caatom-hooaea 


Internal revenue 


TreMory 


Lotteries 


PabUo uistmction 


State Dronertv .............. . 


Pablic works fti^d ooTHiimni- 


MinoellaneonB reymne. . . . . . . 


oatione 


Estimatee of total revenue. . 


Agricnltare, induatry, and 
oommense 








Oedaet amonnta not apeoifled — 


26,374,045.68 
17,314.27 




Total 


26,356,731.41 


26,850,650.00 





Heoeipta 



Sorplua. 



n. — Estimates and Sources of Revenue. 



RECAPITULATION. 



gwttoal. Taxee and imposta 

I^ctio&t. Cuatom-hooses 

Sections. Intenud revenue 

Section 4. Lotteriea 

S^onS. State property 

B^ctkm 6. MiaceUaneona revenue . 



26, 359, 650. 00 
26,356,73L41 

2,918.59 



Pesos. 
6,142,500 
14,705,000 
1,640,650 
1,900,500 
485,000 
1,586,000 



Total 26,359,650 

B&venue estimateBfor 1898-99. 
section 1.-TAXES AND IMPOSTS. 



SpeoiAoationa. 

f^^weignty taxoa 

UKpoet on mining property 

^xee on city property, at 12 per cent 

^^M on rural property, irrespective of cultivation, at 2 per cent 

•Tttes on industry, commerce, and the professions, inoluding one-half per cent from con- 
tractors 

Jfx on personal drafta (cednlas) 

t|iqaor-consumption tax 

^jof liquor ucenaes 

Aaditional tax of 10 per cent on tranaportation of paasengera and 3 per cent on that of 
meichandiae ^7 T^. .^!T!T7.. fT. 

J^ucount on payments 

Asxof 1 per cent on payments 

I^nctS percent commission for the collection of personal drafts (cedulas) 

Total of section 1 



Pesos. 



650,000 

10,000 

1.600,000 

150,000 

1,400,000 
150,000 

1,300,000 
120,000 

300,000 

70.000 

400,000 



6,150,000 
7,500 



6, 142, 500 



45 

uigiiizea oy xjv/v,/p^i\^ 



46 



COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



Revenue eetimaiesf&r i^^-Pd— Continued. 
SECTION 2.^CUSTOM-HOU8BS. 



Sp«oiflcatioD8. 



Import datie« 

Export dntiee 

Tax on loading and unloading of merchandise 

Passenger tax 

Mercantile bonds and interest on notes 

Fines and extra dntiee 

Special tax on matches 

Total of section 2 

SECTION 3.— INTERNAL REVEITCTE. 

Stamped paper 

Postage stamps 

Stamped paper for payment to the state 

Stamps for the same 

Telegraph stamps 

Bills of health 

Stamps for diplomas and matrionlation 

Stamped paper for municipal fines — 

Postal cards 

Papal bnlls 

Beyenne stamps for drafts, etc 

Berenne stamps for receipts, etc 

Stamps on policies 

Bevenne stamiw on consumption of matches 

Deduct commission for sale of the above 

Total of section 8 

SECTION 4— LOTTERIES. 

Lotteries 

Tax of 10 per cent on raflSes 

Total of section 4 

SECTION 5-STATE PROPERTY. 

Celapter l.—Ineome/rofn rent. 

Bent of property 

Empty property 

Beyenue firom quitrents 

Azsenaldock 

Total 

Chapter JI.—Beotnu« from taU», 

Beyenne ftom sale of— lands 

condemned property 

unoccupied property 

forests , 

quitrents , 

quitrents and other projierty connected with the regular clergy 

Total 

Total of section 5 , 



Pesos. 



12.800,000 

1, 100, 000 

680,000 

30,000 

20,000 

70,000 

5,000 



14, 705, 000 



350.000 

800,000 

260,000 

60,000 

40,000 

8,000 

00,000- 

1,000 

2,000 

1,000 

60,000 

300,000 

20,000 



1,727,000 
86,350 



1,640,1 



1,900,000 
500 



1,900,500 



30,000 

2.000 

60,000 

20,000 



U2,000 



200,000 
10,000 
2,000 
1,000 
20,000 
90,000 



323,000 



435,000 



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COMMEECIAL AND INDUSTRIAL CONDITION OF CUBA, 



47 



Revenue estimates for i^P^-P^— Continued. 
SECTION «.— MISCELLANEOUS REVENUE. 



SpeciflofttioDB. 



Pesos. 



L Aecamits 

2. Interest on deferred pajnnents firom all sources. 
B. Claims. 



4. Donations 

5. Profit on exchange 

6. Balance finom accounts settled 

7. Dues from telephone lines 

8. Coinage of monev 

91. Berenue firom otoer sources 

10. SeTcnue from prisons— convict labor. 



^0.000 

20,000 

1,000 



10,000 

600,000 

15,000 



30,000 
10,000 



ADDmONAL. 



Balance from settled accounts. 
Total of section 



730,000 
800,000 



1,586,000 



III. — ESTlBfATBD SOVBRSIQNTY EXPENSES FOR 1898-99. 

RECAPITULATION. 

Pesos. 

Seetkml. Interest on the public debt and general expenses 12,674,709.12 

8eotion2. State-church and Justice 329,072.68 

SeetlonS. War .' 5,896,740.78 

Section 4. Navy 1,065,186.18 

SeetlonS. Executive goyemment 2,645,149.98 

Total 22,600,808.69 

lY. — ^Estimated Local Expensjes for the Island of Cuba for 1898-99. 

RECAPITULATION. 

Seetionl. General expenses 169,606.50 

Sections. State-church, Justioe, and government 1,612,859.44 

Sections. Treasury 708,978.61 

Section 4. Pabllo instruction 247,088.02 

Sections. Public worka and communication 1,086,582.10 

Section 6. Agriculture, industry, and commerce 108,178.52 

Total 3,873,237.0 

BeoapitulaUon of local expenses of the Island of Cuba for the year 1898-99, 
SECTION l.-OENERAL EXPENDITURES. 



Specifications. 



Expenses. Total. 



Chaptbb 1,—OoUmidl legislature. Pmos, 

Executive council 57,126.00 

Hooae of representatives j 76,705.00 



Chaptrb II.— OJlee of the eouneU of seeretariee. \ 

of the chairman 10,000.00 

Snbofilcea of the council 18,500.00 

Supplies 2,000.00 

Chaptbb lH.— Tribunal of aceounte. , 

Personnel 

Material and miscellaneous expenses I 



Chaptbb lY.—MiseeUaneoue expenses. 



Coinage of money 

Loss on exchange 

Traveling expenses of employees. , 



Chaptbb Y.— Outstanding balances. 



Bills lacking legislative approval. . 
OntstMiding biOs 



2,000.00 



625.50 



Discount on payments 

Total amount of section 1 . 



Pesos. 
133.830.00 

25.500.00 



2,000.00 



625.50 



161, 055. 50 
2,350.00 



159,605.50 



Goo^L 



48 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Beoapitulation of local expeMes of the Island of Cuba for the y4ar i^^-n99~Continaed. 
SECTION 2.-8TATE.CHURCH, JUSTICE, AND GOVEENMENT. 



Speoiflcations. 



Chaptbb l.—OJUe qf the secretary (per$(mnei). 



Salary of the secretary . 
Sabsecretary's office.... 



Chaptkb II.— O^ qf the eecretary (material). 

Appropriation for Btationery and miacellaneoas expenses 

Chaptbb III.— CourM (personnel). 



Territorial courts . 
Criminal ooarts . . . 
Jury trials 



Chaptbb IV Oourte (material). 



Territorial courts 

Criminal courts 

Traveling expenses 

Indemnities and snbMidies. 
Execution of sentences 



Chaptbb V.— Lower and eceleeiaatieai courts (personnel). 



Lower courts and inquests. 
Ecclesiastical courts 



Chaptbb Vl.^Lower and eeelesiasHeal eourts (material). 



Lower oonrts and inquests . 
Ecclesiastical ooarts 



Chaptbb Yll.— Miscellaneous sinenses. 



Rent of buildings 

Unforeseen expenses 

Chaptbb VIII.— ^Ippropriofion /or regular stale dergy (psrsonnel). 

Contingent expenses 

Chaptbb TK.— Appropriation /or regular state clergy (material). 

For the diocese of Havana 

For the diocese of Santiago de Cuba 

Pensions to uncloistered clergymen in the diocesH of Havana 

For schools 



Chaptbb X.— Prisons (personnel). 



For prisons . 



Chaptbb XI. ^Prisons (material). 



Prisons department of Havana . 
Transportation and hospitage. . . 



Chaptbb Xn.— Provincial govertiments {personnel). 
For provincial governments 

Crapi'BB XTTI — Provincial governments (material). 

For provincial governments 

Chaptbb XIY.— Public order (personttel). 

Public order (pajrment of "Orden Publico" corps) 

Chaptbb XY.— Public order (nuUerial). 
Public order 



Chaptbb XYI.—So€ird of health (personnel). 



Medical service 

Quarantine boat 

Lazarettos 

Chaptbb XYll.^Board qf health (maUrial). 

Supplies forbosrd of health 



Expenses. 



Pesos, 
10,000.00 
82,700.00 



217,440.00 , 
09,656.00 



7,500.00 
3,000.00 
1,000.00 
16,500.00 
2,600.00 



114,615.00 
18,420.00 



9,806.00 
200.00 



28,78L00 
6,000.00 



16. 981. 00 
5,800.00 
1,200.00 

11,391.00 



21,713.30 I 
9,128.00 



14,640.00 
7,050.00 
1,450.00 



/Goog 



Total. 

Peitos. 
62,700.00 
6,000.00 

286,905.00 

90,600.00 
133, 085. 00 

9.506.00 

34,78L00 
57,202.00 



85,872.00 
124,270.31 

30,841.80 
87,150.00 

8,800.00 

565.419.42 
4,282.40 

23,140.00 
15, 600. 00 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



49 



BteapiiulatUm of local expenses of the Island of Cuba for ihe year 1898-99— -Continued* 
SECTION 2— STATB-CHUBCH, JUSTICE, AND GOVBENMENT— Continued. 



Speoifloations. 



Chaptkb XTin. — Contingent and unforeseen expenses. 



Fees for extra work of the board of bealth 

Transportation of banished subjects and criminals. 
» of the chain gan^ 



Chapteb XIX.— Charitable institutions. 



Lnnatic asylum 

For other charitable institutions on the island . 



Secret service . 



Chapter XX.—Extra expenses. 
Chapter XXI.— Outstanding balanees. 



Bills lacking legislatire approval.. 
Oatstanding biUs 



Diaoounton payments 

Total amount of section 2 . 



Expenses. 



Pesos. 

400.00 
8. 000. 00 

100.00 



21, 596. 00 
57, 048. 00 



94, 993. 21 



Total. 



Pesos. 
3,500.00 

79,244.00 
23,000.00 

94,993.21 



1,7 

1, 612, 859. 44 



^710,931.64 
98,072.20 



SECTION 3.— TREASURY. 



Chapter I.— Office qf the secretary (personnel). 



Salary of the secretary . 
Sub»ecretary'8 office 



Chapter H.—Main office of the treasury (nuU&rial). 

Supplies for main treasury building 

Chapter III — Qeneral expenses. 
Rent of buildings. 



Transportation of specie 

Printing , 

Investigation and commissions .. 
Assessments and classifications. . 
Unforeseen expenses 



Chapter IV.— Contingent expenses. 

Contingent expenses 

Chapter Y.— Taxes and imposts (personnel). 



10.000.00 I 
208,725.00 I 



13,000.00 ; 

8.500.00 I 
12,000.00 I 

4,000.00 



1,000.00 I 



Provincial administrations i 200,350.00 

Suboffioes : , 66,720.00 

Havana custom-house 72,050.00 

Custom officers ' 103,750.00 

If arine revenue officers 29,500.00 



Chapter Yl.— Provincial administration (material). 

Treasury department 7,050.00 

Marine revenue 1,000.00 



Chapter \ 11.— Stamped articles and expenses Cif administration. 



Stamped articles 

Expenses of administration . 



Chapter YJH.— Drawback. 



For drawback . 



Chapter IX.— Lotteries (decrease of revenue). 



For lotteries 

10380- 



13,000,00 
500.00 



218,725.00 
8,000.00 



-I 33,500.00 



500.00 



472, 370. 00 



8, 050. 00 



13,500.00 



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50 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



B^eapiiulaiiam of local expenses of the Island of Cuba for the year 1898-99 — Contmned. 
SECTION 8.— TREASURY— Cantinuod. 



Speoiflcations. 



I Expenses. 



Chaptkb X TJnfinuhtd InuinMi. 

Petoa. 

BOls lacking legislative indorsement 23,443.01 

Bills which remain onpaid on acoonnts dosed 



Discount on payments 

Totsl amonnt of section 1. 



Total. 



Pesot, 
23,443.01 



778,068.01 
00, 100. 50 



708,078.51 



SECTION 4.-PUBLIC INSTRUCTION. 



Chapter l,Saeretary't ojfioe (per$onnsl). 



Salary of the secretary of education 

Sahomces 

Pees of the central board of teachers 

Saperior board of public instruction 

Body of inspectors of primary instruction . 



Chapter II.— Secretary' m office (matericU). 



Expenses of secretary's office 

Expenses of the central board of teachers. 
Funds for teachers' fees 



Chapter m.^Edue^UioruUinetUutiont (pertonnet). 



Uniyersity of Havana 

Professional school 

School of drawing, sculpture, and paintinfl; 
Normal school of schoounasters and schoou 



distresses . 



Chapter rv — EducationtU xnatUtUiont {material). 



University of Havana. 
Professional college . 



School of drawing, sculpture, and painting 

Normal school of schoolmasters ana schoolmistresses . 

Subsidy to school of arts and trades 

Academy of sciences 

Subsidy to typographical academy 

Public library .: 



Chapter V Un/iniihed buHnees. 



Bills lacking legislative indorsement.. 
Outstanding biOs 

Discount on payment , 

Total amount of section 4 



10,000.00 
18,600.00 
10,300.00 
4, 000. 00 
15,500.00 



1.600.00 
1,500.00 
6,000.00 



120,650.00 
18, 800. 00 
8, 750. 00 
25,147.80 



9,300.00 
1,000.00 
500.00 
5,000.00 
1,000.00 
2,000.00 
1,200.00 
10,000.00 



58,300.00 



9,000.00 



172,847.80 



30.000.00 



370,147.80 
23,114.78 



247,083.02 



SECTION 5.-PUBLIC WORKS AND COMMUNICATION. 



Chapter l.^Seeretary'i office (personnel). 



Salary of the secretary . 
Subsecretaries' offices .. 



Chapter U.^Seeretary'e office (material). 



Miscellaneous expenses 

Per diem and traveling expenses . 



CHAPTER m.-^InnUar school ^ enginem-s (pereonnel). 



Instructors 

Miscellaneous expenses . 



1,200.00 
4,000.00 



15, 440. 00 
2,500.00 



41,775.00 



5,200.00 



17,940.00 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CIJBA. 



51 



BeeapUtUaiion of local expenses of ike Island of Cuba for ihe year i^A^-P9— Contiiiaed. 
SECTION 5.—PnBLIC WOKKS AKD OOMMTJKICATIOK- Continned. 



Speoiflcations. 



Chaptsb IV.—Imular school qf eng%ne§r$ {maUriaV^. 

Supplies for Mboolof enginders "l.. 

Ghaptkb V — Public works (psrsonnOi. 
For pablie works 

Chaptsb YI.— PudUe toorks (misesUtmsous egeponses). 
For muceUaneooa expenses 

Chaptbb YU.—PubHc vforhs, roads, etc, (maUriaS). 

Stodiosand new works 

Mjdntenance and repairs 4 

Constniction of the San Cristobal bridge 



Chapteb Yin.^Public toorks {marine navigoHon, persowisl}. 

Marine navigation 

Chapter IX.— Marine navigoHon (material), 

Wbarves and sheds 

Llgbt-honsee 

Booya and rafts 



Chapter X.— Railroads. 
For railroads 

Chapter XI.—Maintenanee and repairs of buildings. 

For maintenance and repairs of buildings 

Chapter XII — OommunicaHon {personnel). 



Conimnnication . 



Chapter XlU.—Oommunieation (material). 



KisoeUaneons expenses 

R^MiIrs and oare of buildings . 
Rent of buildings 



Chapter XJT.—OommunieaHon. 
Services 

Chapter XY.— General expenses of ^ poslaX telegraph service. 

General expenses of the postal telegraph service 

Chapter ^XYl.— Unfinished business. 

Aeoounts lacking legislative indorsement 

Outstanding bills 



Discount on payments.. 
Total of section 5 . 



Expenses. 



Pstof. 



100.000.00 
40.000.00 



6,200.00 
88,818.00 
3,040.00 



43.500.00 
20,000.00 
10,000.00 



30,000.00 



TotaL 



[Pesos. 
15,600.00 



68,800.00 
4,000.00 

140,000.00 
37,800.00 

98,068.00 

14,500.00 
417, 640. 00 

79, 500. 00 
114,514.00 

1,200.00 
89,000.00 



1,093,927.60 
67,346.60 



1.086,682.10 



SECTION 6.-AGRICTTLTUEE, INDUSTRY. AND COMMERCE. 



Chapter I. —Secretary's ojlee {personneit). 

Subsecretaries' offices 

Chapter U.—Seeretetry's office (material.) 



Secretary's salary . 
" " ■ Jies'offio 



Seorotary^s office . 



10,000.00 
29,050.00 



39, 060. 00 
1,300.00 



Digiti 



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52 



COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



Reoapiiulaiion of local egepenses of ihe Island of Cuba for iht year i^d9-P9— Oontinued. 
SECTION e.— AORICtJLTURE, INDUSTRY, AND COMMERCB-Continaed. 



Specifications. 



Chapter HI.— General eaDpentet. 



Caltivating zones 

Rent of bmldings 

School of agricmtnre, dairy, and commerce 

Local fain of agricoltoral indastries 

Chaptbb TV.— Forest lands (petsonnel). 

General inspection and inspection of provincial districts . 
Husbandry stations 



Forest lands . 



Chapter Y.— Forest lands (mafsricU). 
Chaptrr Y1.— Mines {personnel). 



Mines . 



Chapter VJI.— Mines (material). 

Snpplies for office of mines 

Chapter YUl.— Weights and measures. 



Personnel . 
Material... 



Chapter TK.— Colonization and immigration. 

Colonisation and immigration 

Chapter X.—OJleial exchange. 
Public exchange 

Chapter XI.— Unfinished business. 

Bills lacking legislative indorsement 

Outstanding biOs 



Discount on payments 

Total amount for section 6. 



Expenses. 



Pesos. 
40.000.00 



16,175.00 



eoo.oo 

240.00 



1,778.62 



Total. 
Pesos. 

40, 000. 00 

le, 175. 00 
2,900.00 

10,675.00 
2,050.00 

840.00 



1,778.52 



114,828.52 
6,650.00 



108.178.52 



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INTERNAL, INDUSTRIAL, AND PROFESSIONAL 
TAXATION OF CUBA. 

BY 

ROBERT P. PORTER. 

Special Commissioner for the United States to Cuba 
AND Porto Rico. 

Respectfnllj submitted to 

Hon. LYMAN J. GAGE, 

Secretary of the Treaeury, 

Washington, D, C, 
November 15, 1898. 



53 



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REPORT ON THE COMMERCIAL AND INDUSTRIAL 
CONDITION OF CUBA. 



INTERNAL, INDUSTRIAL, AND PROFESSIONAL TAXATION. 



Tbbasuby Dbpabtment, Office of the 
Special Oommissioneb fob the United States 

TO Cuba and Pobto Rico, 

November 15y 1898. 
Sib : The following iini>ortaDt statement in regard to the taxes of Cuba 
other than castoms daties was prepared by Jos^ Anton Alcala, chief 
of the tax bureau of the Banco Espanol of Caba, for Hon. Charles W. 
€k)ald, of the Department of Justice, and through the courtesy of Mr. 
(jk>uld has been included in this report: 

BEMABKS ON TAXES. 

We have selected for our explanations the collection of taxes during 
the year 1894 to 1895, because it is the latest in which taxes were col- 
lected with regularity and the accounts of its production to the State 
duly verified. In our statements only appear the sums belongin to 
the public treasury and by no means the total amount of receipts col- 
lected. A reason for this is that, with exception of the capital of the 
island, all receipts of taxes in Cuba include, as an additional tax, the 
sums which belong to the municipalities. Both taxes and the agreed 
expenses for collection are i)erceived jointly. We hope so to render 
clearer which are the real taxes in behalf of the treasury. Otherwise 
it would be necessary in order to form a judgment to make in each case 
a deduction of the sums belonging to the municipalities, which are of 
18 per cent over the treasury taxes on city real estates, of 100 per cent 
for the country estates, and of 25 per cent for the industrial taxes. As 
expenses for collection 5 per cent on the total amount belonging to the 
treasury is charged. 

Here is the rule followed to impose taxes for real estate city and 
real estate country : 

On city estates, 25 per cent on the amount of the rent which the 
proprietor declares to perceive is discounted, and over the remaining 
75 a 12 per cent is imposed. 

Digitized by VjOC^IC 



56 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

Ou country estates, 2 x>er cent is charged on the rent which the pro- 
prietor declares to perceive, without any previous discount. 

The industrial subsidy affects every citizen who should exercise any 
industry, profession, trade, art, or employ. A relation of them is made, 
being arranged by tariffs, classes, and numbers, with expression of the 
portion any one ought to satisfy, according to the last regulation and 
tariffs approved by the Government on 12th of May, 1893. These 
relations, named " matriculas," are made every year. 

There are also the ^^ patentes ^ or receipts of taxes on certain indus- 
tries which satisfy their duties per annum and in advance. If the 
industrial stops business before the year is over he has no right to 
claim the balance. To this class belong certain shops, hawkers (ven- 
dedores ambulantes), veterinary surgeons, etc. The amount to be paid 
in each case is unchangeable, and it is fixed in a special tariff for the 
" patentes." 

There are also receipts called of "occasional amounts.'' They 
include the receipts from taxpayers who begin or stop business. As 
taxes as a rule are collected quarterly, these receipts are for the 
amount of time during the three months in which the taxpayer is a 
debtor to the treasury. 

"Occasional taxes " and " patentes" amounted, for the whole island, 
during the year 1894 to 1895, to the sum of $133,283.31 for the public 
treasury. We do not include that total in our statements, because it 
is collected only occasionally. 

OOLLBCTION OF TAXES. 

It is to be borne in mind that the total of taxes is never collected in 
Cuba and that there is always a deficit, which has been less since the 
Spanish Bank is the collector. 

Here is the total collection of taxes during the year 1894 to 1895: 

Percent. 

Havana province 90.84 

Matanza« province 89.72 

Santa Clara province 87.73 

Pinar del Rio province 78.34 ' 

Santiago de Cuba province * 66.59 

Paerto Principe province 93.65 

The last mentioned province gives this a good result, notwithstanding 
the very great diflBculties in collecting over five municipal districts, 
which are on a very large area of land, because the capital of the province 
and the city of Nuevitas afforded a splendid revenue. In the province 
of Santiago de Cuba the collection is harder than in any other on 
account of the fewness and badness of the roads and means of commu- 
nication. 

In the lists of collection of ^^ industrial subsidy ^ in the province of 
Havana there appear a great number of taxpayers who do not exist 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 57 

since many years, and whom, nevertheless, the administration contin- 
ues to keep on its records, because every new administrator is reluctant 
to confess that taxpayers have decreased daring his time of office. 

There are reasons to snspect that there are concealments of taxpay- 
ers in the city estate's list. A new record (catastro) made by an intel- 
ligent and honest administration would surely give a rise in the collec- 
tion of taxes. 

METHOD FOLLOWED FOR THE COLLECTION. 

The collection of taxes is in charge of the Banco Espanol de la Isla 
de Caba, which has branches at Matanzas, Cardenas, Gienfuegos, 
Sagaa, and Santiago de Gnba, and auxiliary offices at Puerto Principe 
and Pinar del Kio. 

The island has been divided into groups of towns near those cities. 
The representatives of the bank collect the taxes themselves in the 
cities where they live and by delegates in the other towns. 

The actual contract signed by the Government and the bank began 
in 1892-93, and it holds good for ten years. The bank receives as 
a commission 5 per cent upon the total amount of the taxes to 
collect, presented by the public treasury. As the bank has no inter- 
ference whatever when the lists of taxes are made, it confines itself to 
collect what the public treasury declares in its own lists. The bank, 
therefore, is merely an agent. 

City and country taxes are collected quarterly, semiannually, and 
annually. Industrial subsidy is only collected by quarterly receipts. 
Annual receipts are applied to estates whose taxes do not exceed 
the sum of $8 a year; the semiannual are for those that do not ex- 
ceed the sum of $10 a year. 

The annual receipts and the receipts for the first six months of the 
year are collected jointly with the receipts for the first three months. 
The second six months' receipts are collected with the second three 
months. This explains why there is an increase in the collection of 
taxes in some places during the first and second three months of each 
year. Some sudden increases happen also in some place in the ^indus- 
trial subsidy'' during certain quarterly collections. This is due to the 
collection of receipts from some corporations which pay 12J per cent of 
their profits according to their balances. Railway companies pay 6| 
per cent of their profits. State contractors pay one-half per cent. 

"APBBMIOS.'' 

Taxpayers who do not pay their taxes at the time fixed for it are 
subject to the procedure called ^^apremios," according to the rules of 
May 15, 1885, approved by the Government. When "apremios" are 
to begin, taxpayers are duly warned by mail, giving them time enough 
to pay their taxes before incurring trouble. 

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58 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



^^Apremios^ are of three degrees : The first one consists in an increase 
on the tax of 5 per cent; the second consists in the seizure and after- 
wards sale at public auction of chattel and live stock, besides a further 
increase of 7 per cent; the third consists in the seizure and sale at 
public auction of real estate, besides a further increase of 9 per cent. 

These rules embody many details. They are obscure and compli- 
cated. According to them long proceedings are made against morose 
taxpayers, a characteristic of Spanish bureaucracy. 

Jos^ Anton AlcalI, 
Chief of the Tax Bureau of the Banco Espanol of Cuba. 

Havana, October 26, 1898. 

Total amount fiscal year of 1894^5. 



Province. 



Havana 

Santa Clara ^.. 

Matanzas 

Santiago de Cuba — 

Pinardel Rio 

Paerto Prinoipe 

Island of Cal>a. 



Aeal estate. 



City. 



Country. 



9968,500.87 
232,681.65 
212,634.38 ' 
124,353.45 \ 
54, 184. 28 
38,767.10 



$105,785.66 
83,877.75 
87,568.14 
85, 100. 10 
72,538.05 
6,755.45 



Indnstrial 
tax. 



$1,035,301.43 
282,474.55 
292,266.08 
171, 257. 10 
98.077.79 
52, 855. 31 



1. 649, 135. 28 , 391, 625. 15 j 1. 927, 232. 26 



Grand total. 



$2,127,596.46 
599,038.95 
502,468.60 
380,710.65 
219,805.12 
98,377.86 



3.967,992.64 



HAVANA PROVINCE. 



Municipal district. 



Havana 

Marianao 

Begla 

Guanabacoa 

Santa Maria del Rosario . 

Managua 

Jaruco 

Aguacate 

Bunoa 

Casiguas 

. Jibacoa. 



San Jose de las Lajaa 

San Antonio de Rio Blanco. . 

Tapaste 

B<Jucal 

Qaivican 

San Felipe 

liESalnd 

San Antonio de las Vegas. . . . 

Batabano 

Santiago de las Vegas 

Bauta 

Cano 

San Antonio de los Banos 

Ala uizar 

Ceiba del Agna 

Guira de Melena 

VeredaNneva 

Gaines 

Melena del Snr 

La Catalina 

San Nicolas 

Guara 

Madruga 

Pipian 

NuevaPaz 

Isla de Pinos (Isle of Pines) . 



Real estate, city. 



First 
quarter. 



Total. 



$210,042.80 

8, 684. 83 

6,587.30 

12, 258. 22 

536.96 

475.00 

1, 119. 21 

488.53 

321. 01 

01.92 

180.42 

1,100.54 

500.17 

206.60 

2,204.65 

613.91 

359.28 

447. 67 

254. 03 

1,655.93 

3,141.54 

1, 541. 10 

839.35 

3, 150. 52 

1, 329. 34 

328.49 

1,767.17 

465.72 

3, 739. 20 

610. 77 

616. 87 

609.60 

232.55 

1,080.00 

111.05 

1,882.66 

236.00 



Second 


Third 


Fourth 


quarter. 


quarter. 


quarter. 


$209,373.09 


$207,721.61 


$205,189.19 


3,289.53 


2,652.54 


2,652.54 


6,324.32 


4,282.28 


4,282.28 


10,684.61 


7,674.75 


7.633.44 


320.48 


209.46 


209.46 


331.66 


170.98 


170.98 


896.87 


658.19 


558.19 


412.09 


219.22 


219.22 


249.01 


176.59 


176.69 


78.42 


54.03 


54.08 


134.42 


51.44 


51.44 


663.14 


355.91 


355.91 


220.15 


152.71 


152. n 


li6.13 


72.41 


72.41 


. 2,007.67 


1,062.49 


1,077.24 


399.97 


210.80 


210.80 


184.08 


107.67 


107.67 


310.09 


144.49 


144.49 


146.81 


71.08 


71.08 


1,401.95 


1, 135. 07 


1, 135. 07 


2,498.06 


1, 278; «8 


1,278.48 


6i:i. 26 


242.81 


242.81 


403.95 


179.34 


179.84 


2. 410. 48 


1,597.50 


1.597.50 


1,195.78 


805.95 


805.96 


291.65 


124.10 


124.10 


985.10 


531.65 


531.65 


166.56 


68.49 


68.49 


3,279.02 


2.074.69 


2.074.69 


465.18 


190.40 


190.40 


333.95 


130.94 


130.94 


336.80 


152.59 


152.59 


173.09 


75.65 


75.65 


907.35 


568.67 


568.67 


78.97 


39.71 


89.71 


1,017.34 


597.37 


597.87 


62.40 







264,820.40 



252,763.83 



235, 742. 06 



233,188.08 



COMMEBCIAL AND INDUSTBIAL CONDITION OP CUBA. 



59 



Total amount fiscal year of 2894-95— Continued, 
HAVAKA PBOYINCE—Continaed. 



Manicipal districts. 



Msriaiuio 

BflKla 

GnaDAlwooa 

Santa Maria del Boaario 

ManaffUA 

Jamco 

Aenacate 

^nos 

Caaienaa 

Jibaooa 

San Joae do laa Laias 

San Antonio Rio Blanco 

Tapaste 

Bejncal 

QnJTican 

San Felipe 

LaSala^ 

Baa Antonio de las Vegas... 

Batabano 

Santiago de las Vegas 

BantaT. 

Cano 

San Antonio de loa Banos... 

Alqnisar 

Ceibadel Agua 

Onira de Helena 

Ta«da Naera 

Gnines 

MelenadelSnr 

LaCataUna 

San Nicolas 

Gnara 

Madmga 

Pfpian 

KnevaPas 

Isla de Pinoe (Isle of Pines) 

Total 



Real estate, oonntry. 



First 
quarter. 



$1,307.01 

236.46 

16.94 

1,820.56 
660.00 
923.48 

1,647.84 
396.83 
682.11 
670.42 
566.07 
711.86 
786.93 

1.098.66 
684.44 
628.18 
341.87 
770.77 
619.44 
911.82 
780.06 
991.27 
867.60 

1,273.16 

1,260.50 
481.46 

1,700.97 
481.54 

1,434.24 
918. 42 
776.81 

1,039.39 
700.92 
661.47 
549.00 

1,217.91 
59.60 



Second 
quarter. 



0.487.77 



$1,285.78 

224.99 

13.64 

1,686.68 
630. 61 
869.68 

1.667.79 
893.73 
616.18 
688.56 
626.06 
648.71 
671.87 

1, 067. 34 
492.60 
606.48 
830.03 
611.17 
498.16 
901.32 
716.37 
967.68 
809.66 

1, 177. 10 

1,236.24 
432.20 

1,669.08 
393.15 

1, 310. 03 
868.93 
604.94 
950.02 
664.32 
656.93 
600.84 

1,083.60 
22.80 



Third 
quarter. 



$1,117.48 
178.86 
13.64 

1,222.78 
386.83 
744.74 

1,418.80 
873.48 
483.40 
680.91 
486.91 
668.96 
678.26 
942.23 
399.86 
636.75 
298.11 
352.96 
461.07 
828.43 
621.12 
912.80 
681.56 
844.78 

1.116.06 
862.44 

1,467.41 
277.66 

1.123.62 
803.91 
485.44 
821.94 
508.03 
470.93 
372.96 
806.03 
7.00 



Fourth 
quarter. 

$1. 122. 88 
178. 36 
13.64 

1,222.78 
836.83 
744.74 

1,413.80 
873.48 
483.40 
680.91 
486.91 
568.96 
678.25 
942.28 
399.86 
636.75 
298.11 
352.96 
461.07 
828.48 
621.12 
912.80 
678.48 
820. OB 

1,115.06 
362.44 

1,467.41 
277.66 

1. 128. 62 
803.91 
486.44 
821.94 
598.03 
389.44 
372.96 
806.03 
7.00 



28,052.56 1 23,674.62 



23,670.71 



Industrial tax. 



Municipal districts. 



First 
quarter. 



Havaua $205,396.27 

Marianao ! 1,310.25 

Regla , 3,741.75 

Gnanabaooa 3,738.25 

SanU Maria del Roeario 284.00 

Managua 282.69 

Jaruco ! 1,180.26 

565.84 

290.00 

172.25 

218. 00 

739, 75 

306.75 

104.50 

1, 892. 60 

422.25 

222.00 

209.94 

254.26 

1,916.00 

1,490.66 

897.07 

452.59 

1,932.00 

1,166.75 

233.25 

1.161.90 

222.10 

2,774.75 

420.60 



Agnacate. 

Bainoa 

Casigoas 

Jihacoa 

San Jose de las LaJas 

San Antonio Rio Blanco. . . 

Tapa^vte 

B^ucal 

Qnivican 

San Felipe 

LaSalnd. 

San Antonio de las Vegas. 

Batabano 

Santiago de las Vegas 

Banta 

Cano 

San Antonio de los Bancs. 

Alquizar 

Ceibadel Agua , 

Guira de Helena 

VeredaNneva 

Gaines 

Helena del Sor 



Second 


Third 


quarter. 


quarter. 


'$212, 188. 12 


$246,447.11 


! 1. 375. 75 


1,413.00 


3,845.25 


3.907.60 


1 3,926.50 


4, 580. 25 


293.75 


293.75 


299.94 


307.44 


1, 190. 25 


1, 260. 25 


546.93 


563.43 


1 289.50 


291.75 


, 172.25 


172. 25 


1 198.60 


227.75 


1 752. 00 


754.25 


319. 50 


153. 50 


244.50 


283.75 


1, 2«1. 75 


1.314.75 
420.60 4 


422.00 


243.00 


245. 25 


339.25 


418. 48 


276.76 


293. 26 


2,076.26 


2. 199. 50 


1, 578. 15 


1,712.40 


997.72 


1, 044. 97 


452.69 


502.59 


1,998.26 


2.046,50 


1,201.75 


1, 270. 00 


233.25 


222.26 


1,270.65 


1.414.40 


219.10 


226.60 


3,254.25 


3,296.26 


666.26 


618.25 1 



Fourth 
quarter. 

!282,872.14 

1,415.50 

4,090.00 

4, 641. 60 

315.25 

280.89 

• 1,244.25 

503.43 

284.25 

172.25 

. 221 75 

775.50 

878. 25 

263.75 

1,313.00 

431.25 

258.75 

404.48 

293.26 

2,233.50 

1,745.20 

1,086.72 

600.84 

1,927.75 

1, 287. 75 

213.26 

1, 410. 15 

236.36 

3,380.50 

643.25 



Grand totaL 



$1,734, 
18, 
37, 
61 
4, 
5. 
14, 
5. 
4. 
3, 
3, 
7, 
4, 
5, 
13, 
6. 
2. 
4, 
3, 
17, 
17. 
10, 

e. 

20. 
13, 

3. 
15, 

8, 
28, 

7, 



013.48 
612.11 
118.64 
099.21 
328.18 
602.97 
039.19 
143. 71 
343.79 
438.20 
356.67 
995.46 
909.04 
479.60 
509.81 
439.64 
995.82 
596.75 
800.27 
218.2? 
465.03 
441. a 
547.18 
770.57 
788.18 
388.87 
357.49 
108.42 
865.76 
094.17 



uigiiizea oy -s^jkj^^ 



^iV 



60 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Total amount fiscal year of 1894^5 — Continued. 
HAVANA PROVINCE— Continued. 



Monioipal districtB. 



LaCatoIina 

San NicolaB 

Gaara 

Hadraga 

Pipian 

Nueva Paz 

Isla de Pinos (isle of Pines) . 



Total. 



First 
quarter. 



$310. 25 
645.25 
233.25 
875.41 
112.25 
1. 277. 25 
461.25 



Industrial tax. 



Second 
quarter. 



$385.75 
753.15 
272.50 
875. 41 
112.25 
1,308.50 
477. 75 



237,583.37 246,213.02 



Third 
qnMi;er. 



Fourth 
quarter. 



$410.00 
092.80 ' 
272.50 I 
895.91 
119. 75 ■ 
1, 342. 50 
477.75 



$403.25 
770.80 
278.50 
827.64 
155.00 
1,381.75 
477.76 



282.297.14 269,207.90 



Grand total. 



$5,883.08 
7,745.87 
4, 174. 00 
8,677.02 
2,550.45 

13,318.21 
2. 289. 30 



2, 127, 596. 46 



Total amount in the year for— 

City real estate 986,500.37 

Country real estate 105,785.66 

Industrial tax 1,035.801.43 

Total 2,127,596.46 



SANTA CLARA PROVINCE. 



Municipal districts. 



Santa Clara 

Esperanza 

Calabazar 

Ranchuelo 

San Diego del Valle 

San Joan de las Yeras 

Sagua 

Amaro 

Ccja de Pablo 

Rancho Veloz 

Quemado de G nines 

SiEinto Domingo 

Trinida<l 

Stl.Espiritu 

Keraedios 

San Antonio de las Vueltas 

Cami^uani 

Caibarien 

Placetas 

Yagui^jay 

Cienfuegos 

Cmces 

Abreus 

Palmira 

Camarones 

Cartagena 

Rod as 

Santa Isabel de las Li^as . . 

Total 



First quar* 
ter. 



687.05 
816.15 
135.95 
071.05 
179.65 
872.35 
685.00 
877.25 
702.00 
324.15 
943.10 
413. 85 
336.60 
864.75 
444.40 
604.80 
675. 10 
5.16.00 
952.05 
651.65 
968.85 
803. 15 
655.20 
162.70 
819. 10 
476.05 
093.30 
212. 10 



65, 865. 15 



Real estate, city. 

Second quar- 1 Third quar- Fourth quar- 
ter. I ter. I ter. 



$5. 257. 90 

743.95 

991.50 

1,067.66 

158.35 

300.50 

9,671.85 

844.45 

660.20 

327.25 

916.60 

1,369.90 

1,915.05 

2,513.95 

3, 236. 70 

593.15 

1,658.90 

2, 499. GO 

1,866.05 

529.35 

17,921.75 

1,724.00 

628.70 

1, 102. 60 

273.10 

467.25 

1,885.30 

1,192.75 



62, 318. 30 



ter. 

$4,031.90 I 
477, 95 
511.30 
596.00 , 
103.05 
186. 15 
8, 829, 10 I 
585.05 I 
419.86 I 
850.05 i 
699.60 I 
1.112.35 
1.388.45 I 
1,335.80 I 
2,628.95 I 

484.66 

1,497.60 

2, 851. 20 

920.85 

322.75 

17,116.60 

1,687.05 

444.80 

662.70 

99.36 

829.80 

1,471.90 

906.95 



61,951.75 



ter. 

$4,033.85 

477.95 

553.00 

573.55 

103.05 

186.15 

8,946.40 

598.86 

423.00 

350.05 

710.75 

1, 130. 80 

1,388.45 

1.335.80 

2,680.46 

484.65 

1,596.40 

2,182.35 

1,023.60 

489.06 

17,687.80 

1,406.90 

663.15 

660.85 

09.35 

347.00 

1,604.85 

920.00 



62,546.45 



Digiti 



ized by Google 



COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



61 



Total amount fiscal year of 1894-95 — Continued. 
SANTA CLARA PROVINCE- Continued. 



Mnnioipal district. 



Real estate, country. 



Saata Clara 

Ksperanza , 

Caubazar 

Sancbuelo 

San Diego del Talle 

San Juan de las Yeras 

Sagna 

Amaro 

C^ade Pablo 

BjuicboTelos 

Qnemado de Gaines 

Santo Domingo 

Trinidad 

Sti. Espirita 

Bemedlos 

San Antonio de las Vneltas. 

C^m^oani 

Calbarien 

Placetas 

YagniOay 

Cienf uegOA 

Crac«« 

Abrens 

Palmira 

Camarones 

Cartagena 

Rodas 

Santa Isabel de las L^aa — 



Total. 



Mnnioipal districts. 



Santa Clara 

Esperanza 

Calabazar 

Eancbaelo 

Son Diego del Valle 

San Juan de las Yeras 

Sagua 

Amaro 

C^de Pablo 

Rancbo Velo« 

Quemadode Guinea 

Santo Domingo 

Trinidad 

Sti. Espiritn 

Remedios 

San Antonio de las Vneltas . 

Camiunani 

Caibarien 

Placetaa 

Yigoajay 

Cienfuegos 

Cmcee 

Abreas 

Palmira 

Camarones 

Cartagena 

Bodas 

Santa Isabel de las lok^M 



First 1 


Second 


Third 


Fourth 


quarter. 
$1,765.70 


quarter. 
$1, 195. 10 


quarter. 
$736.86 


quarter. 


$714.65 


1,046.75 ! 


752.25 


635.86 


635.85 


1,184,30 1 


1, 038. 65 


908.70 


908.70 


300. go ! 


260.10 


210.70 


210.70 


988.30 1 


699.30 


466.60 


440.20 


815.35 


636.50 


643.46 


435.90 


1,271.60 


1,160.80 


1,066.90 


1,066.90 


468.75 


888.15 


301. 15 


301.15 


723.96 


597.95 


614.15 


514.16 


793.95 


782.60 


749.85 


749.85 


1,159.00 


1,016.00 


743.00 


743.00 


1, 553. 90 


1,817.20 


1,042.56 


1,042.66 


1,176.90 


833.65 


693.65 


632.10 


1,284.50 


871.40 


544.30 


544.30 


772. 10 


616.25 


467.40 


498.60 


1,336.05 ' 


1,229.75 


965.30 


965.30 


916. 10 , 


849.40 


760.00 


760.60 


150.00 ! 


188.60 


104.00 


104.00 


1,150.00 


1, 059. 05 


920.66 


965.16 


502.60 ; 


412.40 


860.90 


360.90 


2, '>i92. 55 


1, 997. 75 


1, 738. 66 


1,664.95 


457.80 


440. 40 


399.10 


399.10 


349.15 


336. 15 


331.95 


331.95 


272.70 


251.50 


238.80 


238.80 


585.00 


464.20 


386.90 


386.90 


796.50 , 


712.65 


592.80 


592.80 


1,015.65 1 


957.95 


866.05 


898.85 


982.90 , 


868.10 


935.90 


769.50 


26, 222. 55 1 


21,882.20 

_ 


18, 015. 60 


17,757.40 



Total 67,558.40 70,858.86 



Industrial tax. 



First I Second 
quarter. quarter. 



040.75 
093.55 , 
588.00 
728.00 

306.75 i 
563.25 
009.55 I 
776.50 ' 

048.76 I 
642.00 i 
802.75 I 
900.25 I 
212.15 
671.40 , 
047.60 I 
664.65 
298.70 I 
478. 96 
807.25 
190.25 
283.45 
762.50 
786.26 
919.25 
479.00 
086.75 
730.00 
261.26 



$4,421.05 

1, 157. 30 

1,634.60 

758.00 

313.25 

596.75 

8,428.20 

791.50 

1.054.75 

592.00 

1. 320. 25 
2,014.00 
3, 260. 90 
4,789.65 
3,826.50 
1,616.16 
2, 399. 95 
2,804.70 
1,848.00 

1. 351. 26 
18,034.95 

1,968.75 

805.50 

914.00 

491.26 

1.047.60 

1,831.50 

1,286.75 



Third 
quarter. 

$4,600.60 

1. 114. 80 

1,691.60 

752.25 

306.50 

580.25 

8,452.35 

797.00 

1,059.00 

601.75 

1, 361. 60 

2, 031. 25 

3,346.65 

4. 680. 65 

3, 620. 60 

1, 580. 85 

2, 893. 45 

2,904.20 

1,850.26 

1, 323. 25 

18, 625. 95 

1,956.50 

799.00 

929.76 

499.80 

1, 056. 75 

1,952.00 

1, 252. 50 



Fourth 
quarter. 

$4,541.00 

1,136.30 

1,521.50 

767.50 

301.60 

576.60 

8. 681. 85 

817.25 

1,080.60 

608.00 

1, 374. 76 

2, 065. 25 

3,427.16 

4, 858. 15 

8,478.75 

1,497.60 

2. 266. 70 

2,909.65 

1,800.26 

1,411.50 

18, 677. 06 

1,964.76 

809.00 

984.50 

494.66 

1,012.26 

2,035.00 

1,269.85 



71,968.70 72,088.60 



Grand total. 



$41, 115. 80 

9.888.65 

13,667.60 

7,305.40 

4,365.50 

8, 783. 10 

67, 149. 50 

7, 547. 06 

8.749.25 

6,871.90 

12,289.90 

17,983.86 

23. 511. 40 

31,294.65 

27, 717. 10 

12.872.90 

19, 062. 50 

21, G63. 25 

17, 174. 15 

8.905.85 

150, 999. 80 

15, 940. 00 

6, 740. 80 

8, 337. 15 

4, 579.10 

8,518.90 

18,231.35 

12, 807. 56 



581,033.05 



Total amount in the year for— 

City real estate 232,681.65 

Country real estate 83,877.75 

Industrial tax 282.474.65 

Total 699,033.96 



uigiTizea by 



Google 



62 



COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 



Total amount JUoal year of 1894-96^-CoiiUTkned. 
MATANZAS PROVIMCE. 



Mtmicipal districts. 



IffatJHllMW 

Cabezas 

CaoMi 

Onamaoaro 

Sabanilla 

Santa Ana 

Alfonso XII 

Bolondron 

Union de Reyes ■ 

Cardenas 

Clmarrones 

Gaan%jayabo 

Gnamutas 

Lagnnillas 

Colon 

Macagua 

San Jose de los Ramos 

Macariges 

Palmlllas 

Jovellanofl 

Cervantes 

El Roque 

Caevitas 

Total 



Real estate, city. 



First 
quarter. 



$23, 



1, 
1, 

1, 
t 
1, 
14. 
1, 



001.24 
680.06 
206.53 
001.38 
280.26 
272.80 
361.04 
640.30 
864.62 
608.88 
006.70 
780.61 
600.08 
817.85 
076.00 
503.54 
676.03 
306.66 
020.38 
123.40 
705.61 
366.05 
870.06 



63,420.23 



Second 
qnarter. 



$22,046.60 
428.77 
134.60 
075.38 

1,123.36 
163.20 

1,344.76 

1,508.60 

1,846.08 
13,011.10 
625.46 
533.23 
403.06 
180.80 

3,023.07 
382.50 
620.81 

2, 230. 61 
064.54 

3,116.60 
596.70 
340.63 
722. 72 



60,121.80 



Third 
quarter. 



$17,768.06 

272.80 

76.11 

600.47 

484.25 

06.07 

015.20 

1,338.53 

1,606.04 

11, 140. 11 

260.00 

303.81 

331. 62 

82.46 

3,104.23 

237.28 

528.52 

1, 823. 61 

820.04 

2, 123. 00 

412.83 

171.33 

300.56 



Fourth 
quarter. 



44,995.41 



$17,840.12 

272.30 

80.51 

708.35 

484.25 

06.07 

020.60 

1, 346. 80 

1,606.04 

11,141.83 

250.57 

803.31 

331. 52 

82.46 

8. 172. 50 

237.28 

628.62 

1, 870. 87 

820.94 

2. 104. 36 

413.08 

172.05 

800.56 



Municipal districts. 



Hatansas 

Cabezas 

Canasi.... 

Gaamacaro 

Sabanilla 

Santa Ana 

Alfonso XII 

Bolondron 

Union de Reyes 

Cardenas 

Cimarronea 

Guani^ayabo 

Gnamutas 

Lagnnillas 

Colon 

Macagua 

San Jos6 de los Ramos 

Macariges , 

Palmillas 

Jovellanos 

Cervantes 

Bl Rogue 

Cuevitas 

Total 



First 
quarter. 



$1, 
I, 



610. 81 
102.71 
444.10 
857.41 
063.70 
687.78 
357.04 
715.22 
401. 75 
353.84 
763.81 
771.78 
120.02 
015.31 
000.65 
764.16 
451.41 
000.31 
555.06 
607.35 
380.40 
837.80 
002.13 



24,471.64 



Real estate, country. 



Second 
quarter. 



$1,133.07 

1,044.40 

430.05 

1,708.38 

040.20 

632.2:) 

1,247.00 

1,624.00 

479.80 

207.58 

741. 61 

603.53 

1,044.02 

858.02 

1,600.24 

684.01 

1, 376. 11 

1, 500. 81 

1,470.23 

675. 70 

360.20 

768.80 

1,036.00 



22,366.87 



Third 
quarter. 

$773.00 

874.63 

412.25 

1,706.28 

881.08 

601. 18 

1, 161. 17 

1,557.00 

474.40 

244.64 

725.20 

666.18 

037.82 

788.53 

1,423.07 

^1.84 

1, 303. 38 

1,438.16 

1, 419. 14 

546.66 

361.95 

694.04 

021.60 



20,423.80 



45,087.85 



Fourth 
quarter. 



$773.00 

874.63 

412.26 

1,706.28 

881.08 

601. 18 

1.151.17 

1,567.00 

'474.40 

244.64 

725.20 

666.18 

037.82 

788.68 

1,423.97 

631.84 

1,303.88 

1,361.66 

1, 410. 14 

646.66 

.061.05 

604.04 

88L05 



20,806.84 



Digiti 



ized by Google 



COMMEBCUL AND INDUSTRIAL CONDITION OF CUBA. 



63 



Total amount fiscal year 0/1894-96 — Continued. 
MATANZAS PROVINCB-Contlinied. 



Mnnicipal districts. 



MAlansas . 



GuiMi . 

Gojunacaro 

SabanUU 

Sftnta An* 

Alfonso XII 

Bol<aidroii 

TTnion de Rejres . 

Cardenas 

Cimsmmes 

6iianiOAy*l><>' • - • 

OasmutAS 

Lagonillas 

Colon 



M^^agna 

San Jos6 de los Ramos . 

Macnriges 

Palmillas 

JovellADos 

Oervantes 

ElRoqae 

CoeTitas 



Total. 



IndaHtrial tax. 



First 
quarter. 



lU, 



888.06 
506.50 
353.00 
822.25 
562.25 
331.50 
017.26 
440.75 
214. OU 
920.26 
457.00 
852.06 
585.03 
2.35.00 
128.25 
466.50 
858.22 
766.10 
020.25 
305.38 
570. 70 
819. 75 
529.75 



4a 158. 70 



Second 
quarter. 



$15,320.00 

500.50 

810.00 

862.00 

620.75 

881.50 

1,043.25 

1, 478. 50 

1. 258. 75 

13, 378. 01 

515.00 

010.46 

638.78 

242.50 

4,236.75 

482.75 

084.07 

1, 916. 10 

1, 046. 50 

2, 344. 38 

570. 70 

323.50 

544.00 



40,855.64 



Third 
qnarter. 



$20,080.72 

544.00 

845.50 

010.50 

641.75 

846.50 

1,133.75 

1,511.25 

1,366.50 

40, 007. 40 

535.75 

081.83 

660.20 

248.75 

4, 301. 25 

482.75 

1,027.47 

2.038.35 

1,091.50 

2, 557. 13 

605.20 

323.50 

560.50 



102, 201. 05 



Fourth 
quarter. 



$36,309.88 

568.00 

353.00 

970.50 

645.25 

346.50 

1, 127. 00 

1,554.50 

1, 809. 50 

84, 031. 93 

534.76 

991.83 

691.70 

265.00 

4,435.25 

497.75 

1,090.47 

2,053.60 

1,115.50 

2,660.38 

605.20 

323.50 

570.25 



! Grand total. 



$182,842.88 

7,668.68 

3,654.80 

14, 018. 18 

9, 509. 06 

4,486.69 

13,761.92 

18, 280. 64 

18.988.68 

162.368.72 

7, 051. 12 

8,473.11 

8.481.37 

5.014.30 

37, 834. 12 

5, 803. 10 

11,708.29 

21,916.83 

13.' 773. 12 

22, 609. 15 

6.062.01 

6. 336. 97 

8,329.98 



92,050.69 



692,468.60 



Total amount in the year for— 

City real estate 

Country real estate 

Industrial tax 



212,634.88 
87.568.14 
292, 266. 08 



Total , 692,468.60 

SANTIAGO DE CUBA PROVINCE. 



Real estate, city. 



Municipal districts. 



First 
quarter. 



Second 
quarter. 



Third 
quarter. 



Fourth 
quarter. 



Santia^code Cuba I $24. 

AltoSongo 

Jiguani 

Caney 

Cobre , , 

Guantanamo 1 

Sa^uade Tanamo 

MansaniUo 

Bayamo 

Jibara: 

Holguin 

Mayari 

Baraooa ^... 

Tietoria de las Tunas 



Total. 



873.50 
444.95 
269.36 
898.20 
408.60 
424.36 
190.26 
229.40 
889.96 
900.75 
109.05 
216.46 
012.70 
728.40 



$23,421.45 
188.80 
126.85 
629.05 
167.46 

4,209.20 
163.40 

2,601.05 
377.70 

1,408.60 
052.45 
184.50 

1,687.60 
411.85 



$15,730.76 

76,40 

33.15 

161. 75 

31.10 

2,000.60 

62.65 

1,294.66 

00.36 

701.60 

360.65 

62.20 

880.20 

148.80 



42,695.80 



86,330.75 



22,632.15 



$16, 002. 86 

76.40 

38.16 

161.76 

81.10 

2,000.60 

62.^ 

1,294.66 

90.36 

791.60 

860.55 

52.20 

880.20 

148.30 



22. 794. 76 



Municipal districts. 



Santiago de Cuba. 

AltoSongo 

Jlguani 

C«My 

Cobre 

Guantanamo. . . . . . 

Sagua de Tanamo 
Hanzanillo ....... 

Bayamo 



Real estate, country. 



First 
quarter. 



$1, 869. 66 
1,224.86 

699.95 
1,041.06 
1,179.95 
1.930.80 

410. 76 
1,087.06 

317.95 



Second 
quarter. 



$912.16 
762.06 
236.96 
262.20 
640.45 
1,694.76 
73.66 
834.00 
61.60 



Third 
quarter. 



$516. 06 

496.66 

110.25 

70.50 

421.90 

1, 627. 06 

26.46 

210.80 

11.60 



Fourth 
quarter. 



$516.06 

496.66 

110.25 

70.50 

421.90 

1,627.05 

26.45 

210.80 

11.60 



uigitized by VjOOQIC 



64 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Total amount fi$oal year of 1894-95 — Continued. 
SANTIAGO DE CUBA. PROVINCE-Contlnned. 



Mnnicipal districts. 



Jibara 

Holguin 

Majari 

Baraooa 

Victoria de ias Ttuias 

Total 



Beal estate, country. 



First 
quarter. 



$1,623.55 

3,908.50 

502.85 

1,425.30 

1, 199. 85 



18,480.95 



Second 
quarter. 



9620.30 
735.25 
135.05 
370.05 
446.80 



7,284.15 



Third 
quarter. 



$528.70 
157. 15 
52.25 
167.25 
271.00 



Fourth 
quarter. 



$528.70 

157.15 

52.25 

167.35 

27LOO 



4,667.50 



4, 667. SO 



Industrial tax. 



Municipal districts. 



First 



Second 



quarter. quarter. 



Santiago de Cuba $15,557.15 

AltoSongo 1 713,35 

Jiguani i 784.00 

Caney ' 923.60 

Cobre 740.50 

Guantonamo 6, 088. 30 

Sagnade Tanamo 468.50 

ManKanillo 4, 462. 50 

Bayamo 1,362.15 

fibara 3,056.20 

Holguin 3,016.10 

Mayari 447.50 

Baracoa 3,059.65 

Victoriade las Tunas 1,011.80 



$16,747.35 

728.36 

794.00 

966.25 

796.25 

6, 830. 55 

473. 75 

4, 908. 25 

1,565.65 

3,172.70 

3,323.35 

454.00 

3,070.40 

1, 041. 80 



Total i 41.700.20 44,372.65 



Third 
quarter. 

$16, 769. 05 

704.95 

851.50 

999.00 

911.50 

5,399.30 

441.00 

4,028.50 

1,606.65 

2,618.45 

2, 199. 30 

514.25 

2, 780. 15 

1,134.80 



41, 848. 40 



Fourth 
quarter. 



$16,733.00 

691.05 

832.50 

1, 024. 50 

847.25 

6, 216. 05 

429.50 

5,452.60 

1,583.40 I 

2,900.35 

2, 161. 80 

517.75 

2,767.15 

1, 179. 05 



Grand total. 



$149,557.40 
6,604.45 
4,88L0a 
7,208.25 
6,606.85 

45,366.10 
2.828.90 

29,915.05 
7,958.75 

19,941.30 

19,441.20 
3,230.75 

19, 176. 60 
7,992.95 



43,335.85 



330,710.05 



Total amount in the year for— 

City real estate 

Country real estate 

Industnai tax 



124,353.45 
85,100.10 
171,257.10 



Total 880,710.66 

PINAR DEL RIO PROVINCE. 



Municipal districts. 



PinardelRio 

Consolacion del Korte . . 

San Luis 

San Juan y Martines . .. 

Yinales 

Mantua 

B%}a 

Guanes 

San Cristobal 

Santa Cms de loe Pinos 

Candelaria 

LasMangas 

Los Palacios 

Consolacion del Snr 

Alonso Rojas 

Paso Real de San Diego 
San Diego de los Bafios . 

Guansday 

Guayabiu 

Altemisa 

Cayajabot 

Bahia Honda 

San Diego de Nufiez 

Mariel.. 

Cabafias 

Total 



Real estate, city. 



First 
quarter. 



U03.98 
274.77 
374.87 
817. 21 
428.35 
823.06 
87.06 

1,076.92 
376. 80 
189.05 
387.35 
182.31 
305.89 
984.23 
118.83 
207.00 
347.17 

!,845.30 
870.42 
850.81 
204.16 
529.74 
29L65 

l,02L23 
638.16 



17, 836. : 



Second 
quarter. 



$4, 058. 65 
266.58 
352.19 
804.25 
375.25 
282.02 
. 79.74 

1,018.78 
292.30 
165.20 
352.30 
109.93 
264.13 
780.04 
98.85 
170. 78 
262.52 

2,588.80 
318.58 
647.62 
98.68 
441.09 
233.69 
565.61 
547.50 



15,159.58 



Third 
quarter. 

$3, 700. 09 
175.38 
264.71 
743.65 
280.55 
210. 11 

66.69 
910.64 
200.05 
118.87 
197.90 

39.72 
143.70 
486.76 

46.84 
142.04 
157.86 
1,622.25 
169.94 
294.68 

16.08 
26L15 
164.52 
162.28 
894.68 



10,970.54 



Fourth 
quarter. 

$3,843.44 
179.66 
264.71 
748.65 
280.56 
210. 11 

66.69 
966.35 
200.05 
118.87 
197.90 

39.72 
190.32 
486.76 

46.84 
142.04 
157.36 
1,622.25 
172.24 
294.68 

16.08 
26L16 
164.52 
162.28 
894.68 



10,722.84 



uigiTizea oy v_jv/\^"xi\^ 



COMMEBCUL AND INDUSTRIAL CONDITION OF CUBA. 65i 

Total amount fiioal year 0/ i^^-^5— Continued. 
PINAB DIEL KIO PROVINCB-Contiiined. 



Municipal districts. 



Pinar^lIUo 

Conaolacioii del Norte . . 

SttnLois 

8ui Joan y Martinez ... 

Tinalee 

Mantua 

?M» 

Gaanea 

S«n Cristobal 

S«nta Cruz de los Pinos 

Oaaidelaria 

I-AaHaogas 

Lios Palacioe 

Oonsalacion del Snr 

AloDso Kojas 

Fitfo B. de S. Dieeo 

San Diego de los Banoa . 

GiianaJaj 

Gnayabal 

Altmisa 

Oaj^abos 

BaJiia Honda 

San Diego de Kunez 

Mariel 

au 

Total 



Mnnicipa] districts. 



PinardelBio 

Coosolaeion del Norte. . . 

San Lais 

San Juan y Martinez 

Yinales 

Mantua 

£?• 

Gtianea , 

San Cristobal 

Santa Cruz de los Pinos. 

Oandelaria 

LasMangas , 

Los Palacioe 

Consolaoion del Snr 

AJonaoRojas 

Paso Real de San Diego . 
San Diego de los BaHos... 

Gnanj^jay 

Gnayabal 

Altemisa 

CaT^jat>oe 

Bahia Honda 

San Diego de Nufiez 

Mariel 



Real estate, country. 



First 
quarter. 



$3, 

1, 
I, 
1, 



,0^.28 
462.50 
058,71 
857.46 
242.97 
795.49 
592.09 
, 8U4. 37 
460.89 
648.85 
513.70 
608.88 
498.60 
052.26 
472.80 
304.04 , 
548.87 
584.94 
906.25 
965.12 
664.73 
011.96 
467.76 
669.61 
827.70 



Second 
quarter. 



22,055.81 



92,638.57 
402.46 
955.42 
1,616.13 
1,178.84 
602.30 
557.76 
1.584.89 
342.22 
558.09 
861.60 
483.70 
386.01 
741.48 
443.06 
251.50 
439.88 
560.25 
865.55 
819. 17 
683.66 
961.80 
617.29 
468.44 
778.04 



19,066.50 



Third 
quarter. 



$2,057.26 
873.04 
787.76 

1.352.50 
94U.10 
408.09 
519. 39 

1, 244. 16 
200.72 
370. 66 
231.05 
356.40 
292.07 
462. 72 
309.29 
164.10 
326.92 
497.84 
722.07 
644.53 
497.66 
883.89 
445.00 
415.50 
723.59 



15, 245. 16 



Fourth 
quarter. 



$2,074.61 
373.01 
8:^6.4^ 

2,032.dq> 
940.1a 
408.09 
528.64 

1, 244. 16 
209.72 
370.66 
231.95 
350.40 
292.07 
462.72 
309.29 
164.16 
325.93 
497.84 
722.07 
644.53 
497. 6«» 

1,050.96 
446.00 
428.26 
733.69 



16,180.58 



Total. 



Industrial tax. 



First 
quarter. 



Second 
quarter. 



$3, 



767.00 
926.25 
640.00 
422.60 
872.00 
616.26 
83a 26 
704.25 
435.25 
357.50 
540.50 
252.75 
648.60 
163.75 
184.50 
396.26 
460.60 
928.18 
487.26 
042.75 
195.25 
925.25 
406. 5(} 
717.52 
817.50 



28,122.20 



$3,872.00 

1, 078. 60 

677.76 

1,526.00 

1,866.25 

667.00 

330.26 

2,672.00 

542.75 

614.00 

661.26 

274.50 

1,082.26 

1,241.76 

184.60 

696.76 

631.00 

2,022.68 

655.60 

1,122.00 

193. 75 

1,001.25 

396.20 

749.27 

956.25 



25,144.40 



Third 
quarter. 



Fourth 
quarter. 



$3,899.25 
761.00 
579.00 

1,438.75 

1,489.60 
614.60 
369.50 

2,101.50 
476.00 
484.25 
658.00 
241.60 
792.50 

1,145.00 
160.50 
436.00 
671. 76 

1,857.31 
486 00 
948.25 
171.26 
867.25 
391.45 
700.02 
836.60 



22. 314. 53 



$4,041.50 
761. 75 
586.50 

1,489.00 

1,482.50 
634.76 
368.50 

2,484.00 
453.26 
334.25 
686.00 
228.00 
646.00 

1,119.75 
168.00 
396.25 
385.60 

1,946.94 
462.60 
999.26 
181.25 
896.50 
391.45 
723.52 
852.75 



Grand tot^ 



22, 490. 66 



$40,611.63 
6,014.87 
7,177.08 

16,792.90 

12.366.96 
5,760.71 
8,886.55 

19, 661. 52 
4,198 00 
4, 330. 25 
4,809.30 
3, 173. 81 
5.4$6.03 

10, 127. 00 
2.543.30 
3,360.97 
4,503.75 

18, 659. 08 
6,168.37 
9, 273. 29 
3. 319. 99 
9,091.97 
4.404.03 
6,673.54 
8,609.94 



219.805.12 



Total amount in the year for— 

City real estate 54,189.28 

Country real estate 72,638.05 

Industrial tax 93,077.79 



Total 

10380 5 



219, 805. 12 



Digiti 



ized by Google 



66 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Total amount fiscal year of 1894-95— Conianned.. 
PUERTO PRINCIPB PROVINCE. 



Municipal distiicte. 



Puerto Principe — 

Morou 

Cie^ode Avlia 

NueHtaA 

Santa Cniz del Sur. , 



Total. 



Real eatate, city. 



Pirat 
quarter. 



$18,286.20 

604.50 

707.85 I 

1,600.25 ; 

889.75 I 



Second 
quarter. 

$8«670.65 

316.40 

414.05 

1,258.15 

268.85 



Third 
quarter. 



$4,878.46 
06.70 
228.70 
802.20 
182.40 



16,478.66 



10,086.60 , 



6,678.45 



Foortli 
quarter. 



$4,878.45 

96.70 

218.75 

802.20 

182.40 



5,678.50 



Manicipal diatricts. 



Real eatate, country. 



Puerto Principe — 

Moron 

Ciegode ATila 

Nuevitaa — 

Santa Cruz del Sur. 



Total . 



Pirat 
quarter. 

$1,107.60 
656.20 
456.85 
468.80 
115.85 



8.892.80 



Second 
quarter. 



$700.20 

432.65 

306.85 

432.65 

67.50 



1,089.25 



Third 
quarter. 

$244.86 

169.80 

168.95 

366.96 

46.00 



076.05 



Fourth 
quarter. 



$244.85 

157.50 

154.50 

845.00 

46.00 



947.35 



Municipal diatricta. 



Indnatrial tax. 



Firat 
quarter. 



Second 
quarter. 



Puerto Principe . . . . . 

Moron 

Ciego de Avllla 

Nuerltaa 

Santa Crua del Sur.. 



Total. 



$8,763.64 

494.60 

563.00 

1,858.98 

467.37 ] 



$10,419.64 

608.75 

566.00 

1,826.98 

492.87 



11,647.49! 18,814.24 



Third 
quarter. 



$8,894.74 

675.00 

664.25 

1,814.23 

466.62 



11,706.84 



Fourth 
quarter. 



$18,286.20 

680.60 

650.75 

1,862.92 

430.37 



16,099.74 



Grand totaL 



$74,362.47 
4,618.20 
4,874.50 
11,418.71 
8,103.08 



96,877.88 



Total amount in the year for — 

City real eatate 88,767.10 

Country real eatate 6.755.45 

Induatrial tax 62,866.31 



Total 98.377.86 

All of which is respectftdly submitted. 

Robert P. Pobteb, 
Special Commissioner for the United States 

to Cuba a/nd Porto Rico. 
Hon. Lyman J. Oagb, 

Secretary of the Treasury^ Washington^ 2>. 0. 

Dboembeb 15, 1898. 



Digiti 



ized by Google 



REDUCTION OF DUTY ON CAHLE AND AGRICULTURAL 
IMPLEMENTS AND SUGAR MACHINERY. 



TESTIMONY AND STATEMENTS IN RELATION TO THE 
NEEDS OF CUBAN PLANTERS. 



COMPILED BY 

ROBERT P. PORTER, 
Spbglax Commissioneb for the United States to Cuba and Porto Rico. 

And submitted to. 

Hon. LYMAN J. GAGE, 

Secretary of the Treasury, 



e? 



Digiti 



ized by Google 



Digiti 



ized by Google 



REPORT ON THE COMMERCIAL AND INDUSTRIAL 
CONDITION IN CUBA. 



REDUCTION OF DUTY ON CATTLE AND AGRICULTURAL IMPLEMENTS 
AND SUGAR MACHINERY. 



TESTIMONY AND STATEMENTS IN RELATION TO THE NEEDS OF CUBAN 

PLANTERS, 



Tbeasuby Department, Office of the 
Special Oommissioneb fob the United States 

TO OtTBA AND POBTO RlOO, 

November 15^ 1898. 
Sib: Almost from the day the work of your commissioDer was begnn 
last AiigaHt appeals and petitions came in for a substantial reduction 
of duty on cattle, agricultural implements, and machinery for the man- 
ufacture of sugar. These appeals have been recognized, and in the 
tariff herewith submitted cattle of all kinds have practically been 
made free, only a nominal tax of $1 per head for revenue purposes 
being retained; agricultural implements not machinery have been 
placed on the free list, and machinery and parts thereof for the manu- 
facture of sugar have been rated at the low rate of 10 per cent ad 
valorem, while all machinery has been reduced from nearly 100 per 
eent, old Spanish rate, to 20 per cent ad valorem. The duty on horses, 
moles, pigs, sheep, and other animals has likewise been reduced to a 
nominal rate. These recommendations have been made with a view of 
giving the Cuban planter every opportunity possible to put his planta- 
tion in good order again. As these proposed changes are of a radical 
character, involving on the average a reduction of duty of nearly 90 
per cent, and hence the abandonment of a large amount of revenue, it 
has been deemed advisable to give an epitome of the testimony which 
prompted your commissioner in making the recommendation. It is 
therefore prox>osed to briefly refer to the unbroken chain of testimony 



uigiiizea oy vj v/C 



W^ 



70 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

taken by your commissioner favoring free admission of cattle and plows 
and other agricultural implements for the benefit of Cuban agriculture, 
which has suffered more in consequence of the war than any other 
industry. Before arriving in Cuba, and after spending three weeks in 
preliminary work and in the examination of witnesses representing the 
various Cuban interests in Kew York, your commissioner deemed it 
advisable to submit to you a report, the tenor of which may be judged 
from the following extract: 

In accordance with instructions from the President and yourself, I have during the 
last two weeks conferred with representatives in this country of Cuban industries 
and commerce. I have also conferred with nearly all the Cuban shipping interests 
at present represented in New York. While subjects discussed have taken a wide 
range, covering the various topics committed to me for inquiry and report, I have 
deemed it advisable to inform you of the strong sentiment existing in relation to the 
advisability of at once admitting cattle and machinery into Cuba, firee of duty, and 
it is the nnanimous opinion of all interested in the welfare of Cuba that free admis- 
sion of cattle and machinery, especiaUy when to be used in agricultural pursuits, 
would be beneiicial to all interests in the island. As you are aware, oxen are used 
extensively in Cuba in agriculture, on the sugar plantations, and also in the mahog- 
any and cedar industries. 

The reasons advanced for this action on the part of the United States Government 
would seem to be, especially as to cattle, both wise and humane. The country 
throughout Cuba is completely devastated; railways destroyed, plantations burned, 
sugar mills wiped out, and in a majority of cases the draft cattle killed -for food. 
The people will therefore need encouragement to replant, rebuild, and restock, 
preparatory to the grinding of the cane, which will take place next December. I 
find no difference of opinion existing as to the wisdom of this action in relation to 
cattle. There are some who also favor the free admission of all agricultural imple- 
ments for the rest of the calendar year, and there are others who would extend the 
provision to provisions of all kinds, cattle, and agricultural machinery. Outside of 
aU pecuniary calculations the Government might well, from a humanitarian stand- 
point, allow the free admission of these necessities for the building up of Cuba. 
Such a course would undoubtedly cheapen the cost of the necessaries of life, and 
enable those who are interested in the strong industries of the island to get their 
feet again and pave the way to a lasting prosperity. 

In this connection, permit me to call attention .to some of the statements made by 
those interested in Cuban industry and engaged in Cuban conmierce. These state- 
ments I have briefed so that you may obtain at a glance the salient points contained 
therein.* 

These facts, opinions, and extracts from letters and testimony were 
submitted to yon in advance of any report on the general industry and 
commerce of Cuba because of their urgent character. The full com- 
munications thus submitted will be found in the appendix of this report. 
Your commissioner took the ground at that time that if the people of 
Ouba were to be granted relief in the manner herewith suggested, the 
benefits arising therefrom would be greatly enhanced by immediate 
action. Another reason for promptitude in giving this needed relief 
was the fact that those who are sufficiently enterprising to push forward 

'This report^ addressed to the Hon. Lyman J. Gage, Secretary of the Treasury, 
with the testimony, wiU be found in the appendix. 



Digiti 



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COMMEECIAL AND INDUSTRIAL CONDITION OP CUBA. 71 

thtir supplies before law and order were thoroughly restored in Ouba 
should naturally be entitled to the benefits arising from free admission 
of cattle and agricultural implements into ports of Ouba. 

FBBB ADMISSION OP CATTLE. 

It has been deemed advisable to brief some of the testimony taken 
on the question of the free admission of cattle into Cuba. In Havana 
Mr. Albert Broch was introduced to your commissioner as a man of 
integrity and great experience as a planter. His statement, which is 
clear, should carry more than ordinary weight. It was taken in Havana 
September 30: 

After onr very pleasant interview of this afternoon, and digesting yonr remarks 
ocmceming the free entry of cattle in the island of Cnba for agricaltural purposes, 
I desire to express in terms as forcible as possible my complete cooviotion that 
anleflB said measure be adopted at once the cane production of the island will be 
unnecessarily delayed. My reasons are those of every other planter in the island 
whose fields have been <lestroyed either by the insurgent or Spanish forces, and who 
have at the same time stolen, destroyed, and eaten our working cattle, leaving us 
thus without the prime factor with which to start again our destroyed plantations. 
It is true that, even paying duties, we can secure cattle for the object, but the 
increased number that free entry would enable us to obtain simply means a propor- 
tionately greater average of cane planted, and this means for Cuba a great deal. 

My own case stands as follows. Without taking into consideration any producing 
element of cattle, my ordinary requirements are as follows: For my own place, 
having a capacity for grinding daily over 1,000 tons of cane, of which 500 tons h^ve 
to be cut and hauled to the mills from my own fields— to do this I require at least 
200 yoke of working oxen, besides some 50 yoke of spare oxen to replace those which 
have become unserviceable for the time being. This when my lands are in the 
desired condition of cultivation. But at this moment an immediate planting of, say, 
3,000 acres is required. To carry out this operation in time for the cane to be ground 
in the crop of 1899-1900 at least 150 more yoke of oxen would be required, or, say, 
in aU 400 yoke. 

This statement refers to myself and planters generally, as well as to the many 
cane growers from whom all planters purchase cane; that is to say, my purchased 
cane amounts to from 500 to 600 tons daily. Therefore my suppliers' necessities are 
even greater than my own. 

This sample statement appears to me as answering every case, and clearly shows 
what the relative position of the Cuban planter would be with or without free entry 
of cattle. 

Another planter who has been a severe sufferer from the war thus 
indorses Mr. Broch in a statement made in Havana September 30: 

I, like Mr. Broch, whose letter to you he has kindly read to me, am a planter in 
the Province of Matanzas, being like him a victim of the cruel and devastating war 
now happily over. My cattle requirements are even larger than his, the extent of 
my caltivatable lands being in the neighborhood of 6,600 acres, with the same neces- 
sities on the part of those from whom I might purchase cane, whose condition is the 
possession of lands with nothing on them. Therefore 1 most heartily indorse 
Mr. Broch's remarks, and with him earnestly hope that we may soon see measures 
Adopted that will enable us all to purchase at cheap prices cattle with which to 
renew our fields and become once more contributing elements of the prosperity of 
Cuba, which we all have so much at heart. 



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72 COMMERCIAL AND INDtJSTBIAL CONDITION OP CUBA. 

In ah exceedingly valnable i^tateni^fat on the lEfdtistiial iiBdonstrac- 
tion of Cuba C. F. Ferrer & Bro., of New York, thus refi^ to ttie impt*- 
tation of free cattle : 

In oar own case, we are restrained from the deyelopment of our farms by the lack 
of cattle. If Cnba is to be made quickly to produce, facilities must be offered to 
induce the agriculturists to go to work. 

Cattle can not now be obtained in Cuba iu sufficient quantity to begin to supply 
the demand, and if, in addition to the cost of importing, we most pay a duty which 
is very near equal to the cost, we are forced to face an almost insuperable barrier. 

The same firm (Pomares & Gushman), in a letter to yoar conunissioner 
of a later date, says : 

Staff of life of the rural population of Cuba is the plantain, both the male aud 
female, not bananas. People of Cuba do not eat bananas or gnineos. It takes from 
twelve to fifteen months for the plant to bear and become seasoned. During that 
time, in my opinion, food products such as flour, rice, com, etc., should be free of 
duty. West of Moron trocha, in the prOTinces of Santa Clara, Havana, Pinar del 
Rio, as i^ell as of the eastern province of Santiago, there are no cattle left. In my 
opinion bovine animals should be admitted free of duty, as well as all staUions, 
brood mare6, jackasses, poultry of fine breed, etc. After three years duties should 
be put on cattle, for then they would have multiplied sufficiently for the country's 
needs. 

The statement of Jose Porrua, taken at Gienfuegos, September 19, is 
well worth consideration in this connection: 

I had 1,500 head of cattle and 300 pigs, which were destroyed. There are no cattle 
lefl; in the province, and it is absolutely necessary to do all possible to secure the 
free importation of cattle in the province. There were 20,000 cattle in the province^ 
of which only 1,000 are left; and fully 85 per cent of all stock has been destroyed. 
Lack of oxen for working carts will be a great hindrance to the sugar crop, and it 
is very important to get these in at once. Under the autonomist government cattle 
were free, and no one cai^ understand what objection there was to this. 

The following statement, by Filomeno Benemetis, was taken on board 
the steamship Saratoga on the retnrn passage. Mr. Benemetis has been 
in the cattle business for many years and ships from the United States: 

I have been in the cattle business for six years, my business being almost exclu- 
sively between the United States and Havana, buying American cattle and shipping 
them to Havana. Before the war I purchased my cattle in Alabama. The Alabama 
cattle are best fitted for the Havana market, because they are not too large and not 
too small, as is the case with the Florida cattle; for it does not pay to pay the heavy 
duty on small cattle. There were some cattle from Louisiana, which came from 
Oeorgia, Alabama, and the poorest cattle from Texas. These were not, strictly 
speaking, Louisiana cattle, but cattle centered at New Orleans. Most of the cattle 
that go into Cuba come from Tampico and Vera Cruz. 

On the probable growth of the business for the United States Mr. 
Benemetis says : 

If cattle were made free, the business would grow very much. I would buy sev- 
eral thousand ri(^ht away. Of course, the people in Havana would benefit very much 
from free cattle, and transportation companies would not by any means be able to 
swallow up all the benefits. We would not be dependent upon one or two lines, 
because we could charter a steamer. With free cattle, I think probably Mexico wiH 
ship the most. 

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COMMERCIAL. AND INDUSTRIAL CONDITION 01^ CUBA. 73 

l^e statement of Ernest A. Brooks and Miguel Mendoza, in relation 
to cattle and general needs of Cuba, contains the following paragraph 
on the cattle qaestion: 

Considering the devastated condition of the island of Caba to-day, it appears 
important that the government in charge be most lenient in the matter of da ties in 
all things essential to the reconstruction and development of the conntry. Tlie 
sugar indnstry has suffered most severely during the past revolution, as shown by 
the tremendous drop in the production. With the exception of a few better pro- 
tected estates, all others have, for three years, been forced to idleness, their cane 
fields been destroyed by fire, and all their animals, oxen, mules, and horses taken 
away from them without pay, so that even the planter who has been fortunate enough 
to save his sugar house still finds himself now In the necessity of replacing all the 
animals required and replanting a good part, if not all his fields ; all which repre- 
sents a very heavy outlay. 

Owing to the natural condition of the country, an extensive use of animals is a 
nec^sity to all classes, either for dray age purposes or for locomotion ; but how can 
the unfortunate agriculturist expect to pay the following duties: 

Per head. 

On cows $7 

On oxen 5 

On mules 20 

On horses 27 

Before the revolution the island was fully stocked with all these animals and prices 
were within the reach of all, but now there is virtually nothing left, and all will 
have to be imported. Under such conditions, should not the importation be free of 
duty till normal conditions are reached again f 

The American Government in recent circular has consented to firee importation of 
animals for food supply, but this does not suffice. All animals for whatever purpose 
should be free. 

There are few Americans who have had more practical experience in 
the sugar business than the Ponvert Brothers, who own the Hormiguero 
Central, near Oienfuegos. When at Hormiguero, Mr. Louis J. Ponvert 
made the following statement to your commissioner: 

The cattle question is also important; at present it is in fact imperative, owing to 
the scarcity of cattle and their cost. As the soldiers are fed with meat, the military 
authorities simply compel planters and owners of cattle to give them up, so that 
nobody wants to import cattle at heavy expense. Cattle are cheap in Colombia and 
Honduras, but the duties and expenses increase the cost, and we find ourselves in 
the same situation. What few oxen are left are owned by planters and farmers, 
and those are needed for the coming crop; otherwise there will not be any. Cattle 
for such use can not be imported, because they are not trained or acclimated and 
are only good for killing, the principal object they are needed for. All the working 
people and country people have not eaten meat in five months, and are not in posi- 
tion to work, and thus the enormous death rate of the present. It is simply weak- 
ness, and I think cattle should come in free of duty, say for one year; in fact, all 
live animals, so as to put them in reach of everybody, as without them no one can 
start working the farms. 

In August, before sailing for Cuba, this statement on importation of 
iree cattle was made by the well known New York firm of Flint, Eddy & 
Co.: 

Referring to our conversation of this morning, we have further considered the 
qaestion of the introduction of cattle into Cuba free of duty for a certain time, and 

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74 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

«re confirmed in the opinion that such a measure would be advisable. Whilst tlie 
free introduction of piovisions may be considered unnecessary and might have the 
effect of impairing the return of trade to its natural channels, leading to exaggerated 
importations which might leave the United States or the Cuban government with 
its custom-house revenue greatly impaired for a period of time, we believe, on the 
contrary, that the introduction of cattle free of duty would be beneficial to all 
interests in the island. As you are aware oxen are used extensively in Cuba in 
agriculture, on the sugar plantations, and also in the mahogany and cedar industriee, 
which can not be carried on without them. 

The following letter to General Lawton at Santiago bears so directly 
on this point that it is quoted in fall. The writer, Alberto Sanchez, is 
the proprietor of the largest sugar factory in the. province of Santiago : 

I have the honor to submit to you the foUowing statement in regard to the impor- 
tation of some 600 or 800 oxen that I am about to import into this island to work the 
Santa Lucia plantation : 

These oxen ^e to be imported to replace a part of the number left on the Santa 
Lucia plantation at the beginning of the Cuban war in 1895, which latter were taken 
or driven off by either the Spanish or Cuban forces, so that now only 4 remain on 
the place. 

As I am again starting work on the plantation, I address you to ask if the United 
States Government wiU not waive the tariff ($8 per head) on these oxen, especially 
as my loss of the original ones has been great, as the oxen imported are not to be 
sold, and as they are absolutely necessary to start work on the fields. I employ 
about 2,000 people when working full capacity. The families of these are dependent 
on the plantation for a living. At present most of them are dependent on charity 
or are public charge. 

After the previous war U868 to 1878) we were allowed to import free of duty for 
. five years all machinery and material necessary to put plantations in their former 
conditions. 

The state of affairs is now the same as then. With the object of reviving the 
industries here as speedily as possible and with little burden to the people, I con- 
sider that it would be fair and reasonable to admit free of duty the oxen referred to. 

If necessary I am willing to make affidavit to the effect that these oxen are to be 
used in work on my plantation and are not for sale and profit. 

As I would like to have the oxen here by November 1, 1898, 1 would esteem it a 
great favor if you wiU give this your early consideration, so that I may have an 
answer in time to act according to your advice. 

The firm of Pomares & Gushman, of New York, in a communication 
on the revision of the Cuban tariff, says relative to free cattle: 

Does it not seem to you that the duty on animals, paragraph 206, a, b, o, may be 
an act of hostility, almost cruelty, to the Cubans, who not only are in great need of 
these bovine animals for food, but to recommence their efforts to live, by cultivating 
small acres of land? 

The following paragraph of M. F. Cuervo, dated Brooklyn, Septem- 
ber 21, is quoted from an intelligent statement on the Cuban tariff: 

I would further suggest as a first step toward effecting that reciprocity which 
has made your Mr. Blaine immortal for the Cubans, and which was favorably men- 
tioned by His Excellency Mr. McKinley in his letter of acceptance, that the impor- 
tation of American products into Cuba be given an advantage over the importation 
of similar products from any other part of the world. 

The fourth item, cattle of all kinds, is suggested because the island has been almost 
cleared of them, and the necessary agricultural work can not possibly be performed 

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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 75 

without their assistance^ and the ' supply of f^esh meat and milk should be placed 
within the reach of all. The urgent necessity for this will become apparent on the 
most casual inspection of the derastation wrought by the war. 

Mr. Andres Vidal, of the firm of Messrs. A. Vidal & Bro., of Santiago 
de Cnba, write your commissioner favoring free importation of cattle: 

I believe, as well as every one else who is observing the new state of affairs and 
who flavors the welfare of the island, that your (government should at once abolish 
the duty on all kinds of cattle imported into the ports occupied by the United 
States, and in this way facilitate the people in the consumption of beef, of which 
that island is in so great a need. 

Oscar B. Stillman, of Boston, who has bad wide experience in Cuban 
sugar estates and is now manager of a large estate near Trinidad, made 
the following statement to your commissioner on the S. S. Eesolute on 
its arrival in Havana: 

In order to rehabilitate the cane industry as soon as possible many things will 
have to be done, but I will only call your attention at the moment to the necessity 
of obtaining a supply of cattle for the purpose. of working the "fields. Almost all of 
the cattle in the island have been consumed and it Is necessary to obtain our supply 
from outside ports. They should be permitted to go in free. 

There are few men in the United States who have studied the sugar 
industry of Cuba more carefully than Edwin F. Atkins, of Boston. 
Mr. Atkins, and his father before him, have had control of large sugar 
estates in the island for nearly, if not quite, half a century. He there- 
fore speaks with authority when he says no better service could be 
done for Cuba than free imx>ortation of cattle: 

Last winter General Blanco suspended all duties upon cattle as a temporary meas- 
ure. It is now proposed by our Government to collect duty at $6 per head for bull- 
ocks and $8 for oxen, while the people are suffering for food. This will sorely cause 
me loss of trained cattle worth double their value as beef in ordinary times^ and 
probable loss of the greater part of the coming sugar crop. Can not we get prompt 
order for suspension of duty for^ say, ninety days, pending general arrangement of 
tariff ? Ton could do no better thing for Cuba than this, and there is no time to be 
lo«t. 

Mr. Jos^ Benito Perez, of Santa Clara, thus sums up the situation, 
in testimony taken in Cuba September 15: 

In this province, and especiaUy in the towns of the interior near which is to be 
foiund the most fertile soil, and even mining localities, and in which places General 
Weyler carried out his policy of extermination to the utmost, kUling aU animal s 
and destroying even the fences and agricultural implements, there are to be found 
to-day a considerable number of landowners who are compelled to beg for their live- 
lihood, and who have been unable to seU their property. These men^ who have been 
unable to replace the cattle lost both by confiscation and killing, are also unable to 
reconstruct their dwellings, burned by order of General Weyler. The most urgent 
requirements are oxen, milkers, and horses. The province wiU require from 2,000 
to 3,000 pairs of oxen, 3,000 cows (milkers), and from 4,000 to 5,000 horses for the 
first year; also barbed wire for fences. 

Ifr. Pedro Bodriguez, of Caibarien, one of the most intelligent and 



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76 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

thotonghly informed witnesses examined by your commissioner in 
Cuba, when speaking on the subject of free cattle, said: 

In regard to the tariff, the first necessities of life and cattle shonld come in free. 
We require cheap food, and we also require machinery free. The insurgents in our 
neighborhood have respected, more or less, American rights. 

Mr. Louis Y. Place, while differing materially from other witnesses 
to the formation of the new tariff for Cuba, seems to be in accord with 
all others on the cattle question, as the following extract from his 
exceedingly valuable statement indicates: 

VII. Cattle for one year, free of all duty ; after one-year period, according to 
Article VI. 

Mr. Esteban Gacicedo, president of the chamber of commerce of 
OienfnegOH, in his testimony taken at Gienfuegos September 18, says on 
the cattle question : 

Mr. Cacioedo stated that at the same time, as long as yon are here, he wishes yon 
to work to secure the free introduction of cattle, and almost free introduction of 
agricultural implements and engines for the plantations, becanse of the great losses 
sustained by them during the war. 

In a comprehensive statement on the whole tariff situation by Mr. 
Henry A. Himeley, of New York, the following may be extracted as 
representing the views of a man thoroughly versed in Cuban agriculture : 

An important matter and one which requires immediate attention is the following : 
Cattle are now extremely scarce in the island, and they are required in large quan- 
tities, and immediately, in order to plow and cultivate the soil and in order to get 
in the crop which will commence in November, December proximo, nothing can be 
done without them, and I would recommend the placing of cattle on the free list at 
once, and for a period of at least two years. 

Mr. Osgood Welsh, one of the owners of the famous Oonstancia 
estate, thus sums up the importance of free cattle : 

I can think of nothing that would be of greater immediate advantage to the island 
than the free importation of cattle of all kinds, because of the urgent necessity for 
them, both for agricultural purposes and for food. 

I. T. Pryor, representing cattle interests of San Antonio, Tex., and 
permanently located in Havana, writes under date of October 11 as 
follows: 

If you can get a concession of duties in our favor that will enable us to compete 
with or take the market from Mexico and South America dealers, you will confer a 
lasting benefit on the live stock industry in this country, and in time wiU be appre- 
ciated by the Cubans. 

It will be noted that the Texas concern think the benefits from the 
free admission of cattle will inure to the United States. 

After returning from the interior of Cuba to Havana, your commis- 
sioner made a second report to you under date of Havana, September 
19, 1898, in which api>ears the following statement on the advisability 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA, 77 

tf tiie free admissioii of cattle into the ports of Oaba in possession of 
the United States: 

Th«re Are no cattle to do the plowing, which shoald be begun now in order to 
tnsiire the cane crop of 1899. From Havana to Cienftiegos, 180 miles, through the 
heart of the sugar country, no plowing ia being done. Only a few estates in the 
Tieiiiity of Cienfuegos have a few plows at work, but nothing like the number they 
should have. I regard this as the most serious aspect of affairs, and I emphasize 
mj report made to you before leaving for Cuba, in relation to the free admission of 
eattle, not only that intended for the starving inhabitants, subject to the discretion 
of the eommanding ofiBcer of the United States forces, but that for use in plowing 
tiie fields for next year's crop. The admission tree of oxen for this purpose will 
esable the planters to give the insurgents, as soon as they lay down their arms, 
•mployment, and afford them an opportunity to go to work. It is unquestionably ' 
the most eoonomieal thing our Government can do, because unless it is doue we shall 
be obliged to send relief for these people for another twelve months or leave them 
to starve. The present high rate of duty exacted by the Spanish Government is 
simply infamous, and I give yon the exact amount of duty charged on three animals 
of different weight within the last few weeks at the Havana custom-house: 

On^ hull qf 160 kilo8. 

Import duty $6.00 

Plus 20 per cent 1.20 

7.20 
Minor expenses 80 

8.00 

Veterinary and wharfage 24 

Consumption tax, 150 kilos, at 4^ cents 6.75 

Slaughterhouse 1.00 

KUUng 65 

If nnicipal tax 1.10 

Total 17.74 

Onehullofl75kilo8. 

Import duty, plus 20 per cent 9.60 

Minor expenses 80 

Veterinary and wharfage : 24 

Consumption tax, 175 kilos, at 4| cents 7. 88 

Slaughterhouse 1.00 

KilUng 65 

Municipal tax 1.10 

Total 21.27 

One cow of 120 kilos. 

Import duty, plus 20 per cent 7. 20 

Minor expenses 80 

Veterinary and wharfage 24 

Consumption tax 5.40 

Slaughterhouse 1.00 

Killing .65 

Municipal tax 1.10 

Total 16.39 

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78 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

These enormons sums must be paid before the meat for the people reachea the 
botcher's shop. Yon will note that the animals selected are small ones, the coet 
increasing with the size. 

The Santiago tarili* will be a relief on this, but it is not, in my opinion, a sufficient 
relief, the dnty being as I recall it, $6 on bullocks, per head, $8 on oxen, and $5 on 
pigs. These rates, under normal conditions, would be reasonable ; but for this year 
a far wiser policy, in my opinion, will be the tree admission of cattle, not only as 
food for the starving, bnt as draft cattle for the depleted plantations, so that the 
starving may be enabled to get employment and take care of themselves, instead of 
being fed by the generosity of our people. 

After giving due consideration to this testimony and to much more 
which will be found in the appendix of the report and to the hundreds 
of verbal statements made to your commissioner by persons of all 
kinds whom he met during his stay in Guba, the conclusion has been 
reached that the free admission of cattle of all kinds and for all pur- 
poses is the first act necessary on the control of the island passing into 
the hands of the military forces of the United States. Acting in 
accordance with this belief and in the absence of the honorable Secre- 
tary of the Treasury, after consultation with the Assistant Secretary of 
the Treasury in charge of Guban custom matters, your commissioner, 
October 8, 1898, addressed the following letter to the President of the 
United States: 

Sir : The reason for the admission free into Cuba through ports in possession of 
the United States of cattle for food and breeding and oxen for draft purposes are^ 
briefly, these : 

Daring the three years' war nearly all cattle in Cuba have been destroyed or need 
for food purposes for the starving. They have been taken alike by the Spanish and 
insurgents. In some provinces the herds have been literally wiped out. Unl^aa 
these are replaced quickly plowing this fall and gathering the sugar cane next 
December will be impossible, to say nothing of the importance of cattle in securing 
the tobacco crop. 

The need of cheap food is apparent and the young cattle are required to restock 
farms and plantations. . The time for such admission free may be limited or made at 
the discretion of the President. 

This order can not be abused, because cattle may be shipped into Caba at any of 
the numerous ports as soon as they come into possession of the United States. 
These cattle will come ftom Texas, New Orleans, Alabama, Florida, Mexico, and 
South America, and will reach Cuba in all sorts of vessels specially chartered for 
the purpose. 

I am satisfied, after examining numerous witnesses on this point, that there can 
be no monopoly of transportation. The testimony I have taken also shows that 
there can be no monopoly either in the supply or in the transportation by water or 
rail. In the matter of loss by war, all in Cuba are alike poor, for the once rich 
planter, whose estate is mined and who owes hundreds of thousands of dollars and 
has nothing but his burned cane fields to depend upon for the future, is in as bad a 
predicament as the poor colono with his few acres and yoke of oxen. Under such 
conditions it would be extremely difficult to Judge as to relative impoverishment of 
the two classes. A general order for the free admission of cattle, therefore, in my 
opinion, should not be restricted to any class, for all classes are alike in desperate 
straits. In the testimony and statements of over three hundred witnesses there is 
bnt one opinion on this subject. The question of free provisions is not so urgent. 
The new, tariff will reduce the customs duties on all food products fh>m a half to 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 79 

two-thirds of the present rate of dnty, and tlie majority of those who hare been 
examined on this point are contented with the reduction. 

I shall propose a thorough revision of the sohedoles of the tariff relating to 
machinery of all kinds, inolnding agricnltoral implements, which will be satisfac- 
tory. Therefore there would seem to be no necessity to act now on &ee provisions 
or a^icnltural implements. The urgent need is free cattle, and the elfect of speedy 
aetion on your part will do more than any other executive act to bring the people 
of Cuba to a just realization of the intentions of the United States toward those 
islands, and at this time will give renewed confidence in the American policy. 
Very respectfully, 

Robert P. Porter, Commissioner, 

The President. 

A brief verbal statement was also made to the President in relation 
to the unanimity of testimony favoring the free admission of cattle into 
Cuban ports in possession of the United States. On the same day the 
President issued through the War Department the following order: 

Executive Mansion, October 8, 1898, 
By virtne of the authority vested in me as the Commander in Chief of the Army 
and Navy of the United States of America, I hereby order and direct that oxen for 
draft purposes and bovine animals for breeding purposes and for immediate food 
supplies, and plows and other agricultural implements, not machinery, may, until 
otherwise directed, be imported into any ports of the island of Cuba, occupied and 
poaaeesed by the forces of the United States, free of customs duty. 

William McKinlet. 

In the opinion of your commissioner the conditions in Ouba warrant 
the issue of this order, and the wisdom of its continued enforcement for 
a period covering the industrial reconstruction of the island would seem 
to be unquestioned. It has, therefore, been included in the recom- 
mendations for the new tariff, except that for revenue and administra- 
tive reasons a nominal tax of one dollar per head on all cattle has been 
added. As it is the intention of your commissioner to recommend the 
remission of onerous taxes in connection with the slaughtering of cat- 
tle, this nominal tax becomes a revenue necessity, and its collection by 
the custom-house authorities will save the planters much annoyance, 
as they will hereafter be free to slaughter their cattle without the 
interference of the emissaries of the private companies, who purchased 
of Spain the right to collect this tax. 

A doubt, however, has been raised in some quarters as to the wisdom 
of this action on the part of the Government of the United States, on 
the ground that free importation of cattle wonld result in the importa- 
tion of the cheaper Mexican cattle and keep out the cattle of the United 
States. Tour commissioner discussed this phase of the question with 
the honorable Secretary of Agriculture, who could see no reason for 
such fear on the part of our cattle raisers. The view of the honorable 
Secretary finds support in the following statement of George M. 
Gaither, of El Paso, Tex., taken in Havana September 28: 

I ha^e been Qovemment insx>ector of cattle for the United States for five years, 
aod have classed and inspected 200,000 head of cattle. It has been generally sup- 
posed that the balk of the cattle for the island came from Sonth America; but, 



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80 COMMERCIAL AND INDU8TBIAL CONDITION OF CUBA. 

while a great many came from tVre, 9tUl a great many will be shipped from the 
United States, as the cattle from Louisiana, Texas, and Florida can live here jnst as 
well as they can from anywhere eL^. It is an impossibility for the stockmen of 
thi9 country to pay the duty and stock the island, as the duty is too much. I have 
talked to a great many people all over the town who are very anxious for cattle and 
have the money to buy, but can not pay the high duty now imposed. I am speak- 
ing now of stock ca^le for breeding purposes, for there are comparatively no work 
steers now in the island, and they tell me that they can not do anything at all until 
they get in some cattle, -yehich, I think, should be brought in free." 

Since the signing and putting in force in Cuban ports in the posses- 
sion of the United States of the President's order of October 8, 1898, 
relating to the free admission of cattle of all kinds into Guba, the ques- 
tion of the wisdom of this action has been agitated by the cattle inter- 
ests of Texas and other Southern States. It is contended that th^e 
effect of this order will be to flood the Island of Cuba with a low 
grade of cattle of Mexico and South American countries; that already 
preparations are being made to send thousands of this class of cattle 
to Cuba, and that the effect of this importation will be a serious dis- 
crimination against the United States and, in a measure, stop the 
importation of American cattle into Cuba. Your commissioner has 
heard the testimony of several of these gentlemen, and especially calls 
attention to the statement, which will appear in the appendix, made by 
Mr. I. T. Prior, of El Paso, Tex., who seems to fully cover the ques- 
tion at issue. On examination, this gentleman admitted that the only 
action possible on the part of the President which would afford relief 
is a discriminating duty in favor of the United States. They suggest 
that the order of October 8, 1898, should be changed so that the cattle 
for food purposes and for draft purposes shall be admitted into GubA 
from all countries free of duty or at the proposed nominal rate of $1 per 
head, but that in the case of cattle for breeding purposes an advantage 
should be given to the United States by admitting cattle from the 
United States free of duty and charging a duty of so much per head 
on cattle for breeding purposes from other countries. 

The argument advanced is that in the long run this action will be 
beneficial to Cuba, because it will improve the breed of cattle; that the 
immediate necessities of the people of Cuba being cheap food and cheap 
cattle for working purposes, the effect of free admission from any conn- 
tries of these two grades of cattle would sufficiently fulfill the imme- 
diate requirements of the population, and that the United States is 
fairly entitled to this discrimination. In so fax as future benefits to 
the island may be concerned, these gentlemen undoubtedly have 
stronger arguments in favor of a discriminating duty than those like 
the representatives of the paper manufacturers in the United States 
and others advocating a discriminating tariff in favor of the United 
States. Alter making due allowance for this difference, it nevertheless 
appears to your commissioner that the principle herein brought out 
must necessarily involve the whole question of a discriminating tariff 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 81 

* 

in £ftyor of the United States and against otber countries. While the 
argoment advanced by these gentlemen is undonbtedly the strongest 
80 far presented in favor of such action on the part of the Government, 
it is needless to call attention to the fact that the granting of this dis- 
crimination would open the door to agitations and applications for 
similar discriminations in favor of other American products and reopen 
the whole question of discriminating duties. 

Elsewhere in this report the general argument for and against such 
action on the part of the Government has been presented, and as it is 
a question which involves the international relations of the United 
States with other countries than Cuba, your commissioner does not 
feel that it is within his province to make any recommendation thereon. 
If a concession should be granted to these gentlemen it would enable 
them to ship American cattle for breeding purposes into Ouba free of 
duty, while a duty, no matter how small, was levied on similar cat- 
tle shipped from Mexico, and such action might be regarded as an 
unfriendly act or an act of discrimination against the Eepublic of 
Mexico. For this and other reasons, it is not a question that can be 
properly dealt with in a report on the industrial and commercial condi- 
tions of Ouba. 

It is believed, therefore, that the proposed a^ustment of the sched- 
ule is, under the circumstances, the wisest that can be made, and your 
commissioner recommends its adoption. 

AU of which is respectfully submitted. 

EoBERT P. Porter, 
Commissioner for the United States to Ouba and Porto Bioo. 

Hon. Lthan J. Gage, 

Secretary of the Treasury ^ Washington^ D. 0. 

NOVSMBEB 15^ 1898. 



10380 6 



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REPORT 



ON THE 



COMMERCIAL AND INDUSTRIAL CONDITION 



OF 



CUBA, 



BY 



ROBERT P, PORTER, 

SPECIAL COMMISSIONER FOR THE UNITED STATES 
TO CUBA AND PORTO RICO. 



BPECIAT^ REPORT. 

THE PEOVnrOE OF SANTIAGO DE OUBA AND THE INTEBNAL 
REVENUE OF THE ISLAND OF CUBA. 



KESPBCTFULLY SUBMITTED TO 

HON. LYMAN J. GAGE, 

Secretary of the Treasury, 

WashingUm, D, C, 

IDKCKMZBEJR 10, 1898. 

Co n.^: " :nar# 
WASHINGTON: 

GOVERNMENT PRINTING OFFICE. 
1898. 

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REPORT 

ON THE 

COMMERCIAL AND INDUSTRIAL CONDITION OF THE ISLAND 

OF CUBA. 



SPECIAL BEPOBT OlT THE PROVINCE OF SAJmAOO DE CUBA AND THE INTEBNAL 

BEVENUE OF THE ISLAND. 



Treasury Department, 
Office of Special Commissioner for the 
United States to Cuba and Porto Rico, 

December 19^ 189S. 

Sir: I have the honor to inform you that in accordance with the sug- 
gestion made by the President and yourself I have visited the Province 
of Santiago de Cuba, and while there conferred with Maj. Gen. Leonard 
Wood, military and civil governor of the province, in relation to the 
several subjects under investigation. As in the other Provinces of 
Cuba already visited, public hearings were held and all persons inter- 
ested in the welfare of the island of Cuba invited to submit statements 
and give testimony. The Chamber of Commerce of Santiago, represent- 
ing the commercial and industrial interests of the province, responded, 
as did the principal bankers, shippers, and several of the leading mer- 
chants. Every facility was afforded by the United States officials, and 
the data secured will be of great value in elucidating the problems in 
relation to the government of Cuba now under consideration by the 
Ti'easury Department. The report herewith submitted is preliminary 
and principally confined to matters requiring immediate attention. It 
wiD be followed by special reports touching on subjects which, though 
not less important, are less urgent in their demand for decision. 

A visit to Santiago should give relief to .those suffering from "the 
craven fear of being great," for there may be found much that is 
encouraging. In this province of Cuba may be seen in full operation 
the work which the Government of the United States has been impelled 
to undertake, and here may be studied the character of the forces upon 
which the people of the United States must rely in the work of recon- 
struction now in progress. The machinery of government is running 
with a fair degree of smoothness, and the men responsible for it, from 
the humblest official to the capable commander of the province, under- 
stand their business and are masters of the situation. It is a striking 
illustration of the marvelous adaptability of tne American character. 
Every department of the public service is carrying on its work, the 
only difference apparent to one so recently in parts of Cuba still in 
possession of Spain being the absence of Spanish soldiers and the more 
businesslike methods of the officials. The disagreeable smeUs of the 
typical Cuban city are less pronounced in Santiago, while whitewash, 

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limewasb, fresh paint, and all sorts of disinfectants have deodorized the 
surrounding atmosphere and made the old town quite habitable. The 
streets are no longer used as sewers, and the unhappy individual who 
violates the law and escapes the lash of the sanitary commissioner's 
whip is compelled to work on the streets for thirty days. This official, 
Maj. George M. Barbour, with 126 men dressed in spotless white and 
32 good United States mule teams and carts, having dug out from the 
streets of Santiago the filth of ages, is now able to keep them abso- 
lutely clean. Every day by the aid of that great disinfectant, i)etro- 
leum, the garbage of the city is burned. 

The work of sanitation is not confined to the streets, but extends 
to the dwelling houses, shops, and buildings of all kinds. Indeed, 
the campaign against dirt and disease has been as sharp and hot as the 
charge of San Juan Hill, and as productive of beneficial results. The 
resistance on the part of the native population was even more stubborn 
than that of the Spanish soldier to our forces around Santiago. The 
doors of houses had to be smashed in ; people making sewers of the 
thoroughfares were publicly horsewhipped in the streets of Santiago; 
eminently respectable citizens were forcibly brought before the com- 
manding-general and sentenced to aid in cleaning the streets they were 
in the habit of defiling. The campaign has ended in the complete sur- 
render to the sanitary authorities, and the inhabitants of Santiago, 
regardless of class, have had their first object lesson in the new order 
of things inaugurated by the war. Looking backward five months, 
and picturing Santiago in July, and comparing it with the more hopeful 
condition existing on all sides at the present moment, it is easy to 
discern the omens which point to the coming prosperity of the whole 
island under intelligent and honest government. 

There are many other indications of the good work of Maj. Gen. 
Leonard Wood and his capable corps of assistants, beside the improved 
sanitary conditions. Several important thoroughfares have been 
repaved. All the public buildings have been thoroughly cleaned, and 
put in good order, the work even extending to the large opera house, 
which is now ready for the opening performance under American aus- 
pices, for General Wood believes in furnishing decent amusements fbr 
the soldiers of his command. The law courts, abolished when General 
Shaftef took the city, have been reorganized, and it was the privilege 
of your commissioner to take part in the brief, simple ceremonies 
on December 1, when in a modest speech the American commander 
turned over the legal business of the province to the judiciary, and 
inaugurated the supreme court. This court was comjw^d of carefally 
selected Cuban judges, the appointees nominated wholly on account of 
legal attainments, the bar association of the province having been con- 
sulted as to the character and qualifications of the new judges. 

In the same manner local government has been restored, native 
mayors and officials appointed, the only requirement being that per- 
sons accepting snch offices shall take the oath recognizing the military 
occupancy of the island by the United States, but in no way commit- 
ting them to any future form of government. The wisdom of this 
action can not be doubted, and the moral effect upon the people of 
Cuba will be far-reaching.* 



* A cable dispatch dated Hantiago, December 19, to the New York Sun, contains 
the information that General Wood has now completed his scheme of local taxation 
and that the local machinery will soon be in running order. The dispatch says : 

"A committee of the chamber of commerce met General Wood at the palace to-day 
and agreed to accept tho scheme of mnnicipal taxation arranged by the committee 



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The Spauisb wbeu iu possession of Cuba not only assumed absolute 
control of tbe judiciary^ but of tbe municipal government, the larger 
portion of tbe taxes raised for municipal purposes being diverted, with 
the other revenues, in channels which either led to Spain or into Span- 
ish pockets. It will be even a greater stroke of wisdom, in the opinion 
of your commissioner, if these taxes are hereafter used exclusively for 
local purposes, and, as far as may be deemed practicable, collected 
and disbursed by properly constituted local authorities. There could 
be no wiser expenditure of local revenue for several years than upon 
the streets and sewers of the cities and towns of Cuba. For years the 
money which should have been used for these purposes has been drained 
away to Spain, and all local improvements shamefully neglected. The 
rural districts of Santiago de Cuba have been so depleted that it will 
be impossible to collect taxes over and above those needed for the bare 
necessities of schools, for the poor, and possibly small sums to improve 
sanitary conditions. The dawn of prosperity should, however, be the 
signal for inaugurating systematic work on the country roads. The 
province of Santiago de Ouba is similar in geographical and geological 
stracture to the island of Jamaica, where tlie good main aud parochial 
roads have been the principal stay of the population. 

Ill a subsequent report will be found a brief history of the nearly 
2,000 miles of good roads in Jamaica, together with an account of the 
expenditure thereon and the cost of keeping them in repair. The 
British administration spends on an average annually for roads in 
Janaaica about $500,000. Without underestimating the strategical 
importance of a central railway from east to west in Cuba, the imme- 
diate returns to the population of good roads would be far in excess of 
the more pretentious enterprise. The money thus expen<led, whether 
from the general funds of the island or from the local budgets, would 
come back a hundredfold, and make Santiago one of the richest sugar, 
cofiee, and fruit growing districts of the West Indies. Santiago Prov- 
ince should be a profitable producing country lor bananas. It is good 
for the poorer classes to undertake the cultivation of this fruit. The 
banana only takes fourteen months to grow, aud therefore, unlike 
coffee and oranges, the cultivator does not have to wait several years 
for the crop. All the capital in this business can be turned quickly, 
and the banana can be planted near the huts of the small planter and 
attended easily. Banes, Sigua, and Baracoa are good ports to export 
them from. The Dumois family invested considerably in the business 
and used to ship to the United States. This business is soon to be 
revived on a much larger scale. The extension of good roads would 
largely increase the possibilities of this industry in many parts of 
Santiago Province. With quick transportation, the market for bananas 
is rapidly extending to Europe, while the United States market is only 
partially supplied with this fruit and with oranges. 

The internal, industrial, professional, licensing, and other miscellane- 
ous taxes have so far been remitted in this part of Ouba, but the mili- 
tary authorities are now preparing to enforce them. In this connection 
your commissioner suggests that, now the customs tariff has been dis- 
posed of, an immediate scheme be prepared for levying and collecting 
internal-revenue taxes for the entire island. The question of separating 



of American officers aud Cubans. The scheme in operation the first year wiU yield 
annually $240,000, or 60 per cent under the Spanish schedule. It is not retroactive. 
General Wood decided to-day, after consnltatiou, that it vriU be impossible to make 
oiany merchants pay the back tax without litigation. The city loses nearly $100,000 
by the ruling." 



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these taxes from purely municipal taxes should also be considered at 
the earliest jwssible moment, in order that no revenue shall be lost. 
As to how far the present machinery — the Spanish Bank of the Island 
of Cuba — may be utilized in this direction your commissioner is unable 
to say without any further inquiry.* With the possible exception of the 
city of Havana, it would not be in the interests of an economical admin- 

*For the informatiou of the Department, a table prepared for your commissioner 
by the goyemor of the Spanish Bank of the Island of Cuba is herewith appended. 
The facts presented wonld seem to indicate that the bank is not responsible for the 
large percentage of delinquents, but that other causes, over which the collecting 
agency had no control, conspire to make them of late years excessive. 

Statement of face value of receipts for direct taxation that have been delivered for collec- 
tion to the Spanish Hank of the Island of Cuba from the fiscal year 1885-86^ when this 
institution commenced the collection, with right of seizure, to 1894-9fff both inclusive, 
actual amounts collected, deductions, and amounts pending collection, as per vouchers 
and accounts rendered to the TYeasury by this institutioti. 



Fiscal year.. 



Face value. 



Collected. Deductions. 



I 



( Pesos. Pesos. ' Pssos. 

188&-86 5,021,271.25 1 4,561,976.18 1 438,029.78 

1886-87 ' 5.240,661.60 4, 655, 776. 10 i 647.435.19 

1887-88 5,386,627.83 4,758,446.22' 576,840.11 

1888-89 5,316,367.75 4,694,829.26 649,628.25 

1889-«0 4,878,047.21 4,304,196.24 497,220.89 

1890-91 5,336,611.25 4,069,477.26 571,994.17 

1891-«2 4,242.982.84' 3,696,877.74 428,374.80 

1892-93 5,857,928.97' 4,635,278.61 572,890.61 

1893-94 6,092.200.41 | 4.505,462.32 432,163.62 

1894-96 5,16:J,321.70 4,421,631.99 534,492.41 

Total ' 51,036,010.21 I 44,893,915.92 5,148,069.73 



Per cent of 
Pending | face value 
collections, i uncol- 
lected. 



I 



Pesos. 1 
21.265.29 
37,440.21 
52,341.50 
71,910.24 : 
76, 630. 08 
105,139.82 
117,729.80 
149, 769. 86 
164, 610. 47 
207, 197. 30 



904. 024. 56 



0.423 
.714 
.971 
1.352 
1.970 
1.070 
2.774 
2.796 
3.086 
4.012 



Statement efface value of receipts for direct taxation that have been delivered for collection 
to the Spanish Bank of the Island of Cuba from the fiscal year 1896-96 to 1897-98, both 
inclusive, actual amounts collected, deductions, and receipts pending collection up to this 
date, as per data at hand in this institution. 



Fiscal year. 



Face valne. 



Pesos. 

1896-96 4,802.936.66 

1896-97 4,689,736.08 

1897-98 4,341.112.87 

Total ! 13,733,784.61 ! 



Collected. 



Pesos. 
3,460,998.24 
3,283,286.51 
2,250,806.74 



Deductions. 



Pesos. 
579, 002. 52 
647, 975. 70 
223. 119. 47 



8,995,091.49 1,350,097.69 



Pending col* 
lections. 



Pesos. 
762, 936. 90 
758,472.87 
1. 867, 186. 66 



Per cent of 
face value 
collected. 



3,888,695.48 



K. Galbis, 
Governor of the Bank. 
Spanish Bank of the Island of Cuba, 

Section of Taxes, Accountant's Department, 

Havana, December IS, 1898. 



Under the heading of ''Face value" is included the total amount of the receipts 
given by the Government to be collected. 

Under the heading of ** Deductions" come the receipts to be given back to the 
Government, either because the taxpayers were dead or their properties destroyed, 
or else a mistake of some kind had been made by the treasury officials. 

Of course these must be deducted from the total amount. Take, for instance, the 
charges of the first ten years, from 1885 to 1895. These amount to $51,036,010.21. 
The deductions are $5,148,069.73, making the net total of receipts $45,887,940.48, out 
of which the bank collected $44,893,915.92, leaving a balance uncollected of only 



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istration to start up special machiuery to collect these taxes, which for 
twelve years have been as follows : * 

Tax reeeipis handed to Spanish Bank far oolleoUon. 



I Peroentag« 
v«„- TP__ _,i„- Actoal amount! Total delin* 1 ofdelin- 

^®"^- Face value. collected. ! quent taxes, quent tax 

! ' each year. 



188S-9I $5,240,651,50 1 $4,655,835.65. $584,815.86, 11.16 

18H7-<88 5.386,627.83 4,758,446.22 628,181.61 11.66 

1888-89 5,316,867.60 4,694,829.26 621,538.34 11.60 

1889-90 4,878,047.21 I 4,304,207.16 573.840.05 11.76 

1890-91 5,336,611.25 4,659,477.25 677,184.00, 12.69 

1891-03 4,242,982.34 3,606,877.74 546,104.60 12.87 

18d2-03 5,357,928.97 4,636,278.61 722,660.36 18.49 

l«»3-94 6,092,200.41 4,507,920.29 584,280.12 1 11.47 

1891-95 5,163,321.70 1 4.425,338.49 737,983.211 14.29 

1895-06 4,907,664.17 3,539,029.98 1,368,624.19 27.88 

188^-97 5,042,205.00 3,266,583.37 1.775,621.63 36.21 

1897-96 4,430,595.15 2,377,742.21 2,052,852.94, 46.88 



Total 60,395,1^.13 49,621,666.23 10,873.626.90 18.04 



The large amount of delinqaents during the last three years was of 
course due to the war. In normal times we have here $4,000,000 or 
$5,000,000 of revenue that must not be overlooked, revenue which, if 
properly and economically employed in the manner herein indicated, 
will aid in the industrial rehabilitation of Cuba. As indicated in a 
former report, some of the more onerous exactions represented in the 
above total may justly be abolished. This will not necessarily decrease 
the revenue ft*om sources other than customs duties, and, with honest 
expenditure of these taxes for the benefit of the people and the return 
of prosperity, the large percentage of delinquents will disappear. 
Efficient machinery will be able to collect nearly the full amount levied, 
though it will be difficult to collect arrearages. In adopting the recom- 
mendations of your commissioner for a two-thirds reduction of customs 
duties on articles of first necessity to the people of Ouba, you have 
relieved agriculture from tremendous burdens, which Spanish greed 
and dishonesty had placed upon the producer. This should be followed 
by a complete emancipation from the most unrighteous of these internal 
revenue exactions which have sapped the life not only from aU indus- 
tries but from all occupations. 

$994,024.56 through defanlt of the taxpayers, more than one-fifth of which, say 
$207,197.30, belongs to the year 1895, when the insnrreotion broke ont. 

The proportion, then, between the amonnt of the invoice given the Spanish Bank 
for colleotion and that actual Iv eoUei^ted is not a bad one, for it only leaves 2 per 
cent nncollected. Before the Spatiish Bank undertook the collection of taxes the 
treasury used to collect only 65 per cent of the total invoice, leaving 35 per cent 
nncollected. The results obtained by the bank have been very remarkable. 

It has been said by the Spanish Government officials that some of the invoices 
returned by the bank could have been collected; but in the majority of cases that 
was not so, and only through neglect or error on the part of some of the Government 
officers, who are poorly informed on wealth statlHtios, some receipts were made out 
which ought never to have been written. 

The Spanish Bank collects the taxes in a truly businesslike manner, has never been 
hard on the taxpayerH, always sending them by mail previous notice of their dues 
before taking executive proceedings. 

It is financially a trustworthy corporation, having refused to avaU itself of the 
permission ^ven by the Government to stop payment of the principal and interest 
on the municipal mortgage bonds. 

' For a more detailed analysis of the Cuban budget see report on "The revenue of 
Cuba," prepared by Commissioner Porter for the Secretary of the Treasury, and 
submitted November 15, 1898. 



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8 

Pending the inquiry which should precede action in this direction, it 
might be advisable to make some temporary arrangements to collects 
these taxes or the least burdensome of them to take eff'ect January 1. 
In Santiago internal taxes have nearly all gone by default, as the dis- 

Jatch to the Sun shows, and we have been obliged to abandon over 
100,000 in Santiago alone, but owing to the siege this was unavoidable. 
In taking over the other provinces of the island, this can just as well 
be avoided and considerable revenue saved.* 



* In the full report on ^^The revenue of Cuba/' submitted by your commissioner 
November 15, 1898, and now in the hands of the Public Printer, complete tables for 
a series of years in relation to the internal taxes collected will be found. In this 
connection, however, it may be advisable to quote from a statement made in Havana 
October 26, 1898, by Jos6 Anton Alcala, chief of the tax bureau of the Banco 
Espanol of Cuba, in relation to the present methods of collecting internal taxes. 
This official statement will be found in full, together with the several exhibits in. 
the report already submitted. The subjoined extract is referred to here because the 
important question the Department must face January 1 is how to conti nue the col- 
lection of these taxes without unnecessary loss to the revenue of (*uba. 

It should be borne in mind that the total of taxes is never collected in Cuba, and 
that there is always a deiirit, which has been less since the Spanish bank is the 
collector. 

Here is the total collection of taxes during the year 1894 to 1895: 

Per cent. 

Havaua Province 90.84 

MatanzBH Province 89. 72 

Santa Cliira Province 87. 73 

Pinardel Kio Province 78.34 

Santiago de Cuba Province 66. 59 

Pnerto Principe Province 9.1. 65 

The latest Proviuce gives such a good result, notwithstanding the very great 
difficulties in collecting over live municipal districts, which are on a very large area 
of land, because the capital of the province and the city of Nuevitas afforded a 
splendid revenue. In the Province of Santiago de Cuba the collection is harder 
than in any other on account of the scarce and bad I'oads and means of communi- 
cation. 

In the list>s of collection uf ^'industrial subsidy" in the Province of Havana there 
appear a great number of taxpayers who do not' exist since many years, and whom, 
nevertheless, the administration continues to keep on its records, because every new 
administrator is reluctant to confess that taxpayers have decreased during his time 
of office. 

There are reasons to suspect that there are concealments of taxpayers in the city 
estates list. A new record (catastro) made by an intelligent and honest ^rdministra- 
tion, would surely give a rise in the collection of taxes. 

The collection of taxes is in charge of the Banco KspaQol de la Isla de Cuba which 
has branches at Matanzas, Cardenas, Cienfuegos, Sagua, and Santiago de Cuba, and 
auxiliary offices at Puerto Principe and Pinar del Kio. 

The island has been divided in groups of towns near those cities. The represen- 
tatives of the bank collect the taxes themselves in the cities where they live and by 
delegates in the other towns. 

The actual contract signed by the Government and the bank began in 1892 to 
1893 and it holds good lor ten years. The bank receives as a commission 5 per cent 
upon the total amount of the taxes t«» collect, presented by the public treasury. As 
the bank has no interference whatx'ver when the lists of t^xes are made, it confines 
itself to collect what the public treasury delares in its own lists. The bank, there- 
fore, is merely an agent. 

City and country taxes are cfdlected quarterly, semiannually, and annually. 
Industrial subsidy is only collected by quarterly receipts. Annual receipts are 
applied to the estates, which taxes do not exceed the sum of ;^ a year; the semi- 
annnal are for those that do not exceed the sum of $10 a year. 

The annual receipts and the receipts for the first six months of the y«'ar are col- 
lected jointly with the receipts for the first three months. The second six months' 
receipts ar(> collected with the Hecoud three months. This explains why there is an 
increase in the collection of taxes in some places during the hrst and second three 
months of each year. Some sudden increases happened also in some place in the 
"industrial subsidy'' during certain quarterly collections. This is due to the ool- 
Icction of receipts from some corporations which pay 12^ per cent of their profits 



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Methods of local admiuistration differ so greatly in different prov- 
inces in Gaba that the wisdom of appointing a governor or com- 
mander for each Province is unquestioned. As much latitude as possible 
should be given these officials. The provincial governors should have 
power to decide all questions appertaining to local matters, for the 
fewer the references to Havana the sooner the people of Cuba will 
realize the difference between Spanish possession and United States 
occupancy. For military purposes the government of the island maybe 
easily vested in one central authority at Havana. For civil purposes 
each province should be made as absolutely independent as is possible, 
with general supervision by the commander of the United States forces. 
The secret of General Wood's success in Santiago is entirely due to the 
&ct that he has good judgment, the courage to use it, and full x)Ower in 
Santiago Province to exercise both. 

In the opinion of your commissioner the supervising power over 
the civil department commander should be made, as far as possible, 
advisory on such matters as relate to the general welfare of all the 
people of the island, but all department questions should be scrupu- 
lously relegated to the provincial governors. There will, of course, 
have to be some general scheme Inaugurated as to the collection and 
the expenditure of the general revenue, but before this can be intelli- 
gently arranged it will be necessary to designate what revenue shall 
be considered local; what, if any, tor the exclusive use of the depart- 
ment, and what may fairly be regarded as revenue applicable for the 
general purpose of the whole island. In thus distributing the revenue 
the greatest care should be exercised not to hamper the provincial gov- 
ernor by an arbitrary division of the purposes for which the money 
must be expended until he has been given ample opportunity to ascer- 
tain the needs of his department. 

A country undergoing such changes as Cuba is, can not be judged 
by ordinary circumstances, and the most successful results will cer- 
tainly be obtained by giving the generals in command of the several 
provinces the rein, ^nd with the excellent example of the commander 
of Santiago before them, tell them to go and do likewise. Apportion- 
ments and divisions of revenue will come later. The present emergency 
demands large sums for sanitary purposes, for cleaning up cities, for 
fighting disease, for renovating public buildings, for maintaining order, 
and for establishing a decent, efficient administration of public affairs. 
These operations must be done quickly, and rest largely on the judg- 
ment of the man on i^e spot acquainted with local conditions. The 
results of a free hand are plainly visible in Santiago. The same policy 
must be followed elsewhere, or summer will bring dangers from which 
the unacclimatized population may well seek to escape. 

according t<> their balaucen. Railway companies pay 6^ per cent of their protits. 
State contractors pay one-half of 1 per cent. 

Taxpayers who do not pay their taxes at the time fixed for it are snbject to the 
procedure called ^'apremios/' according to the rnles of May 15, 1885, approved by 
thf Government. When "apreniios" arc to begin, taxpayers are duly warned by 
mail, giving them time enough to pay tlieir taxes before incurring trouble. 

''Apremios" are of three degrees. The first one consists in an increase un the tax 
of 5 per cent. The second consists in the seizure and afterwards sale at public auc- 
tion of chattel and livestocks, besides a further inoroaso of 7 per cent. The third 
consists in the seizure and sulo at public auction of n^al estate, besitles a further 
increase of 9 per cent. 

These rales embody many details. They are obscure and complicat<;d. According 
to them long proceedings are made against morose taxpayers, a characteristic of 
Spanish bureaucracy. 



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10 

While in Santiago your commissioner took considerable testimony, 
which will be embodied in the appendix of this report. Some of this 
testimony relating to tariff schedales and many of the suggestions 
made, especially those relating to free coal, reduced duties on salt, and 
the duty on coffee, have been embodied in the recommendations for the 
new Cuban tariff already promulgated. The Chamber of Commerce at 
Santiago prepared an elaborate statement, and after submitting it to 
your commissioner several hours were spent in discussion and confer- 
ence. You will be glad to learn that nearly all the recommendations, 
excepting those of a purely local character, made by this association 
of business men had already received the attention of the Department, 
and it is safe to say that the Treasury Department has been able to 
meet these gentlemen in nearly all their propositions. The accident to 
the cruiser Oincinnati emphasizes the importance of immediate action 
on the part of the (Tnited States authorities in relation to the harbor 
of Santiago, and also suggests the importance of attending at once to 
the lights on the coast of the province of Santiago de Cuba, and such 
other action as will make navigation in these waters safe. 

Without attempting to exhaust the subject, or even to give a suffi- 
ciently accurate statement upon which the cost of such work could be 
made, I summarize below the testimony taken in Santiago from captains 
of steamships, officials of the port, and others interested in navigation. 
I have no hesitation in embodying these statements in my report and 
recommending that the same shall be acted upon at the earliest possi- 
ble moment, for otherwise not only our warships, but the merchant 
marine entering Santiago Harbor and the other ports of the province 
are in danger. The Reina Mercedes still lies in a very threatening atti- 
tude almost at the mouth of the harbor. It in feared that a storm might 
at any time throw this ship on its side, and thus completely obstruct the 
channel at the very entrance of the harbor and stop all navigation for 
large vessels. Not far from here, as you will remember, is the sunken 
MerrimaCj but this boat in no way obstructs the harbor. 

TAght-Jiouses. — ^The light-house stored at the Motto for Guantanamo 
has been taken there to be erected; it is much required and should be 
fixed as soon as possible. 

The Morro. — Light-house is only lighted up with a lantern visible from 
4 to 5 miles distance. The old light (or, if possible, a better one) should 
be placed there, as it occupies a very important position. 

The same must be done at Cape Cruz; either the old light or a new 
one should be reestablished. 

The colonel in charge of Manzanillo has informed me that all the parts 
of the lens of its light- house are there and it could be reconstructed by 
proper experts. 

Cienfuegos. — ^The light-house was totally destroyed by the bombard- 
ment, and it is very important to have one there, as there is at present 
no light at the entrance of the harbor. 

The establishing of a light-house at Key Breton, 21o 10', 78o 25', is 
strongly recommended. It is halfway between Manzanillo and Cien- 
fuegos and it is at the turning point of all ships on the south coast. 

Although these are the most important, there are many other spots 
very desirable for light- houses on the western part of the southern coast 
of Cuba. 

Dredging Santmgo. — ^The removal of Diamond Point Shoal is very 
necessary, as at present no big ship can enter until it is removed. The 
Columbia^ for instance, could not get in at present owing to the nar- 



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11 

Towness of the cbanuel at this spot. Four years ago this same ship 
w»8 ordered to Santiago and coald not come in for this reason. 

J^unta Oorda Shoal should also be removed for the same reason. 

It is also very necessary to dredge the harbor around the docks, as 
there are at present only 14 J feet of water where there ought to be at 
least 22 feet. 

Santiago Harbor requires very much a large covered pier, 600 feet 
long with 22 feet of water alongside. The tide at Santiago i^ 18 inches. 

The semaphore signaling should also be reestablished and a copy of 
tbe signals given to the captains of the regular liners. 

Buoys. — It is very desirable to ])lace two small buoys about the 
entrance of the inner harbor of Guantanamo. 

The buoys in Santiago Harbor are all in their places, excepting the one 
on Diamond Point. It would be well to have a buoy placed at Cayo 
Ratones, and that the lights on them be kept lighted at night. 

Manzanillo. — The channel from Cape Cruz to Manzanillo, which is 20 
miles long, has never been surveyed, and it is very important to do so 
and to place buoys at the dangerous points. At present there are no 
signs to indicate any danger. 

Cietifuegos. — All the buoys in this harbor are in their places, and it is 
fairly well buoyed. The lights on them, however, should be kept 
lighted. The i)ost light should be placed at Pasa Caballo Point, the 
place being then just as accessible in the night as in the daylight. 

The dredging of Guantanamo and Manzanillo is unadvisable at pres- 
ent, as it would be very expensive. 

Dr^ging the i)ort of Oienfuegos is recommended very much. There 
are only 14 feet of water there now and it is comparatively a very easy 
affair. 

It is more important to remove Diamond Point than to construct a 
Santiago wharf. 

It is recommended that the custom-house should be removed from 
Guantanamo (12 miles up the road) to Gaimanera, as considerable delay 
is caused by the distance at present (two hours). 

The custom-house at Santiago I found to be under very capable 
management. Mr. Walter A. Donaldson, who has had charge of the 
office, has performed the rather difficult initiatory duties devolving ujwn 
him with enthusiasm and ability. His knowledge of Spanish and long 
training in the customs service of the United States have enabled him 
to recast the old Spanish methods and inaugurate the more business- 
like methods of our own custom-house without much friction, and as a 
result we find today a complete reorganization at Santiago, with 
branches at all the other i>orts in the province, working efficiently and 
collecting the revenue. While Mr. Donaldson has been able to dis- 
pense with about 20 employees, with the remainder consisting of 
both Cubans and Spanish already in the service, and with 5 United 
States officers he is able to collect the revenues expeditiously and 
administer the affairs of the ])ort with general satisfaction to the mer- 
chants and shippers of Santiago. It is not necessary to refer at length 
to the reports in relation to the detail management of the custom house 
submitted to me while in Santiago by the collector, because those 
reports have already gone to the proper divisions of the Treasury 
Department, and his suggestions will undoubtedly be acted upon from 
time to time. 

Several of the more important suggestions resulting from the experi- 
ences of United States custom-house officials at Santiago have been 



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12 

adopted and will be incorporated in the new tarili'law. The experience 
of Mr. Donaldson in administering the affairs of the Santiago custom- 
house will also be of value to the United States Government when the 
work in Havana is undertaken, aud I would respectfully suggest that 
this efficient officer be at least temporarily assigned to the broader field 
in Havana, as his work as the pioneer United States collector of customs 
in Cuba will aid materially in administering the new tariff in other 
parts of the island: Mr. Donaldson estimates at the end of November 
that the total custom-house receipts in his entire district will aggregate 
in the neighborhood of $330,000. It is impossible to give these figures 
with exactitude at the close of the month, because two or three weeks 
must elapse before all the reports reach Santiago, in consequence of 
the slow methods of transportation ; it is safe to say, however, that the 
collections in this port for the twelvemonths under Americau adminis- 
tration will be twice as much as collections were in the last twelve 
months of Spanish control. 

As the rates of the tariff* have been reduced two-thirds, this fact 
would seem to be a good sign alike for the interest of American admin- 
istration and the possibilities of a low tariff' for producing sufficient 
revenue. As stated in a previous report, the hope of your commis- 
sioner for sufficient revenue to manage the affairs of the island is 
largely based upon honest and efficient collections. If it were other- 
wise, the natural consequence of reducing the rates of duty by two- 
thirds in a tariff* capable of producing a revenue of $15,000,000 per 
annum would be a revenue of $5,000,(K)0 per annum. To accomplish 
this feat and still have fifteen or even ten millions of revenue will make 
it imperative that the future management of the custom-houses in Cuba 
be more businesslike and more honest.* 



1 

L 



^The following is a list of the uumber of employees and salaried of the principal 
officials at the several custom-houses in Cuba under Spanish administration : 

Havanu : 

1 coIl(H;tor, chief of administration of third-clanH $3, 750 

189 »»t her eijiplo vfcm 75, lOU 

$78,850 

MatAUKan: 

1 coliertor, chief of ilcpnrtincnt of fl^H^clasH 3, 000 

( )ther employees (15) 9, 300 

Inspectors and minor statt" 5, 800 

18. 100 

Santia^co de Cuba: 

Same as Mat an zas 18, 100 

Cienfuegos : 

1 collector 2, 000 

17 employees 20, 800 

22.800 

Curdeuan: 

1 collector *. 1, 750 

14 era \ilo\ oen 8, 050 

10. 400 

Safi:ua : 

I rolleitor 1,250 

Oeraplovees 5,900 

7. 150 

Xut'viUiH: 

1 collector 1,250 

8 em]dovef 8 5, 150 

6,400 

Trinidad : 

1 collector 1,000 

5 eniploveen 2,780 

3,780 

Manzanillo, Gibanvand liuantanamo: 

Sanjf as Trittidad 11,340 11.340 

Baracoa : 

1 collect or 1 , 000 

4empluv(«s 2,280 

3,280 



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13 

The testimony^ statements, and information obtained during the visit 
of your commissioner to the Province of Santiago suggest the advisa- 
bility of the following special rei)orts, which will be prepared and sub- 
mitted as rapidly as the subject-matter can be translated and arranged: 

1. Kei)ort on the mining interests of Santiago. 

2. Supplemental report on the currency. 

3. Beport in relation to the testimony of the Chamber of Commerce 
and the industrial and commercial needs of the Province of Santiago. 

4. Beport on the fiscal and economic condition of the island of 
Jamaica, together with an account of the proposed new tariff for that 
island. 

All of which is resi)ectfully submitted. • 

BOBBET P. POBTEB, 

Special Commissioner for the United States 

to Cvha and Porto Rico. 
Hon. Lyman J. Gage, 

Secretary of the Treasury y Washington^ D. 0. 

Caibarien : 

iGoUector 1,000 

6 employees 3,280 

4,280 

Santa Cruz: 

1 eolleotor 1.000 

4employeea 1,480 

2,430 

Tunas de Zaza: 

Same as Santa Crnz 2,430 

In additkm to above, for the inspection and police of different custom-honees, the following 
employees: 

In Havana 100 at $500 $60,000 

In Havana 8 at $800 4,800 

InMatanzas21at$(M)0.20at$500 10,000 

In Santiago 11 at $600, 10 at $500 5,000 

In Cardenas 1 at $600, 14 at $500 7,000 

In Cienfneffos 1 at $600, 10 at $500 6,000 

In the other ports 1 at $600, 33 at $500 17.600 

241, 140 

o 



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REPORT 



ON THE 



COMMERCIAL AND INDUSTRIAL CONDITION 



OF 



CUBA, 



BY, 



ROBERT P. PORTER, 

SPECIAL COMMISSIONER FOR THE UNITED STATES 
TO CUBA AND PORTO RICO. 



SPECIAL REPORT. 

THE OUEEENOT OF THE I8LAHD OF OUBA. 



RESPECTFULLY SUBMITTED TO 

HON. LYMAN J. GAGE, 

Secretary of the Treasury, 

Washington, D. C, 

r)KCBM:BEJR S7, 1898. 



WASHINGTON: 

GOVERNMENT PRINTING OFFICE. 
1898. 



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REPORT 



ON THE 



COMMERCIAL AND INDUSTRIAL CONDITION 



OF 



CUBA, 



BY, 



ROBERT P. PORTER, 

SPECIAL COMMISSIONER FOR THE UNITED STATES 
TO CUBA AND PORTO RICO. 



SPECIAL REPORT. 
THE OUEEENOT OF THE I8LAHD OF. OUBA. 



RESPECTFULLY SUBMITTED TO 

HON. LYMAN J. GAGE, 

Secretary of the Treasury, 
Washington, Z>. C. 

r)KCB]Vi:BKR S7. 1898. 



WASHINGTON: 

GOVERNMENT PRINTING OFFICE. 
1898. 



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REPORT 

ON THE 

CURRENCY OF THE ISLAND OF CUBA. 



Treasury Department, 
Opfioe of the Special Commissioner 
For the United States to Cuba and Porto Eioo, 

December ^, 1898. 

Sir: I have the houor to sabmit a brief and supplementnl report on 
the cnrrency question of Ouba. Considerable testimony on this subject 
was taken in Havana, Cienfuegos, and elsewhere, on my first visit to 
Cuba, and a report thereon submitted. In that report your commis- 
sioner endeavored to present as fairly as possible the views of the 
various classes of interests and thus lay all available data before the 
Department The real point at issue, and the only one likely to cause 
any trouble, is that arising from the inflation by royal decree of the 
Spanish 25 peseta, popularly known as Alfonsinos, or centens, and the 
subsequent inflation of the French 20-franc piece, so called Louis, 
which have been given a legal value of $4.24 and decreed since the end 
of 1893 as legal money. 

The Spanish authorities at Madrid, having thus inflated two gold 
coins 6 per cent above their current value and about 10 per cent above 
their intrinsic value — for the mint value of these two coins is $4,770 
and $3.8208, respectively* — the United States authorities at Washing- 
ton are now called upon to inflate a third gold coin and make the 
American eagle worth $11 in Cuba and our $5 gold piece current there 
at $5.50. As a temporary measure this may have some justification, 
and the statements herewith submitted from Cuban bankers, planters, 
and business men have a certain degree of plausibility. The process, 
however, is entirely artificial, and whatever is done in this direction 
to-day must be undone some other day, and the only question is 
whether the inflation shall be taken out now or the operation post- 
poned to some more opportune time. The danger, as it seems to your 

* These Talaes are the unit valae in Havana as of last October, and were prepared 
with exactitude by a banker in that city for yonr Commissioner. The value given 
in the President's order is slightly in excess of this, as in accepting these coins at 
the value stated in the said order the United States practically defrays the cost of 
the shipping expenses. 



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4 REPORT ON THE CURRENCY OF THE ISLAND OF CUBA. 

commissioner, in following the advice of the able and influential finan- 
cier of Havana whose petition addressed to the President is appended, 
lies in the adoption by the United States Government of a bad prece- 
dent in Cuban financiering inaugurated by the Spanish Government, 
and for which the United States is in no manner resi)onsible. 

The reckoning day must come for all inflated values, whether of paper, 
of silver, or of gold, and when that day does come some one will sufifer. 
Fortunately, in this case the degree of sufl'ering is small, varying only 
from 6 to 10 per cent. The practical question would seem to be how to 
dislnflate these two coins with the least possible disturbance to mort- 
gages, contracts, notes, and all classes of existing agreements to pay- 
money. Current matters will adjust and take care of themselves. It 
is generally known that all transactions in Cuba since the close of the 
war have been made with the belief that the United States would not 
continue the royal decree of Spain, and that the inflations would col- 
lapse with the disappearance of Spanish rule. In proof of this, a copy 
of a recent cable dispatch from Havana to the New York Herald and 
other American newspapers is submitted. (Exhibit I.) 

In Santiago your commissioner found the bankers and financiers in 
favor of leaving matters as they exist and request the Government to 
adopt a similar standard in the rest of the island, namely, reduce the 
$5.30 gold piece to $5, the American $5 gold piece and the Spanish 
centen to be practically interchangeable. This is the view taken by Mr. 
Schuman, of Schuman & Co., Santiago. 

On this question the Chamber of Commerce of Santiago, in a thought- 
ftilly prepared memorial, submitted to your commissioner, say: 

It is frequently dtffloult in this market to effect change, especiany in small sales, 
for the want of fractiouHl currency. As this makes considerable difficulty in trans- 
actions, the chamber considers it necessary for the American Government to remedy 
this difficulty by sending sufficient silver fractional money, utilizing it to pay the 
army of occupation. 

This chamber has heard that the administration of the custom-house of this port 
has solicited the Government at Washington to declare American money legal and 
obligatory tender in all transactions which take place in this territory, and we con- 
sider this movement premature, as the political situation of the country is not settled; 
and furthermore, prejudicial to commercial interests and to the public wealth by the 
depreciation it would cause in the Spanish gold in circulation and for the dlfficolty 
it win occasion through the lack of American money in sufficient quantity for these 
transactions. For this reason we beg that this petition will not be considered, it 
being even more inopportune, since the resolution of the civil governor of the prov* 
luce on the 1st of August last, establishing the legal value of Spanish gold, is Just 
and has given satisfactory results. 

Speaking on the same subject, Mr. Brooks, of Brooks & Go*, Santiago, 
a careful financier and capable business man, said : 

Regarding the currency question, we should also be inclined to support the opinion 
of the chamber of commerce, to leave matters as they are at present, i. e., the Span- 
ish and French gold coins having been disinflated, to leave them as current circu- 
lating medium, including for the payment of custom-honse duties. It is also alway- 
a small advantage for the sugar estate to pay their labor in Spanish gold as it repres 



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REPORT ON THE CURRENCY OF THE ISLAND OF CUBA. 5 

eents a saving of 3 to 4 per cent as compared with paying them in American money, 
as where a planter now pays $5 Spanish, he would, with a change in the circalating 
medium, have to pay $5 American, which would represent from 3 to 4 per cent 
advance in wages without receiving any compensation from his sugar shipped to the 
United States, from which, in former years, and with inflated gold values, he derived 
an advantage of 10 per cent. 

A partial adjustment of the question has been suggested by Dr. 
Jover, director of the Spanish Bank of the Island of Cuba, and as Mr. 
Jover is an authority on Cuban finances, the statement made by that 
gentleman to your commissioner is quoted in full : 

The only way to settle all the difficulties of the present Spanish monetary state 
of things is to declare legal tender the American dollar and adiuit at par all Spanish 
gold coins. 

1. Thus the onza should be worth $16; the medio onza, $8; the doubloon, $4; the 
escndo, $2; the centen, $5 — that is, exactly its intrinsic alloy and weight value. 

2. The English sovereign ought to be taken for $5, and the French louis (which 
circulates in Cuba in great numbers) for $4. 

This arrangement that slightly^ improves the value of the Spanish gold — for the 

centen is worth in the New York market $4.87 or $4.90 at the utmost — would tend to 

drive to Cuba the foreign coins of this country, perfectly useless for circulation. 

As for the Spanish silver, it is considered there almost as a merchandise or stock, 

valae subject to daily quotation, and it is really troublesome in its use. Therefore 

I would propose to give it a fixed value in American gold, thus — 

Value. 

The peso $0.60 

The medio peso 30 

The peseta 12 

The real 06 

The medio real i 03 

This value is a little less than the price of quotation to-day, but it is much more 
than what it was a few months ago, but I do not think acceptable the use of any coin' 
without a fixed, invaiiable value. Now, as the American currency and the American 
sUver would stand at the par value, and, on the other 'hand, the Spanish silver is at 
the present quoted higher in Spain, there would likely go a large quantity, if iiot 
all, Spanish silver coins; that, nevertheless, would not be objectionable, but rather 
convenient to both nations. But as this implies a change in the standard value of 
the Spanish gold dollar, which up to the present has been the basis of all contracts 
and dealings of the country, it will be necessary to fix a date to implant the new 
system, and that can be no other but the 1st of January next. Hence, from that 
date all money transactions will be understood to be on the basis of American gold, 
with American currency ; Spanish, French, and English gold at par value; Amer- 
ican silver to be accepted also at its full value only in quantities not exceeding $5; 
Spanish silver at the stated rate, and foreign silver coin as merchandise. 

As for aU contracts and stipulations in money matters standing at present to be ful- 
filled the appointed date of the 1st of January, I believe it would be but right to be 
paid off with 6 per cent discount, which would simply disinflate, because they were 
made with the basis of gold coins which had 6 per cent premium; and discounting 
the same 6 per cent when they were settled with coins whose said premium had been 
taken off, but the intrinsic value of which coins had remained unaltered during the 
time, would only be common morality and fair equity. Lastly, all those who would 
attempt to alter the value of money to be severely punished, according to the law 
of the country. 

With these supplemental facts you have the case fully and impar- 
tially before you. To accept the proposition of the Havana bankers 

" uigiTizea Dy x-Jv^v/'j^iN^ 



6 REPORT ON THE CURRENCY OP THE ISLAND OF CUBA. 

means a continuation of the inflated value of 10 per cent. To concede 
the proposition of Dr. Jover and the Santiago financiers would reduce 
the inflation about 6 per cent, still retaining Spanish and French gold 
in circulation at a slightly increased value. (Dr. Jover even includes 
the British sovereign at $5.) The other and only remaining coarse 
would be to accept United States money at its full value for customs, 
public or postal taxes and the foreign coins at their intrinsic or mint 
value. If this were done, and no special action taken in relation to the 
coins in which existing contracts shall be paid, that side of the problem 
would in time adjust itself. 

It is not probable that this adjustment can be accomplished without 
hardship to some debtors and a slight financial disturbance. It is not, 
however, apprehended that the trouble will be as great as some have 
anticipated. In Santiago the first step to absolutely sound finance has 
been taken and 6 per cent of the inflation squeezed out. The business 
interests in that part of the island are opposed to a continuation of the 
10 per cent inflation and merely ask that the several gold coins in cir- 
culation shall be left at their face value. As one of the evils arising 
firom disinflation, it will be noted that certain petitioners put forward 
the fact that it will mean an increase of from 4 to 10 per cent in the 
wages of labor, which Cuban industries can not afford. Such a result, 
if true, can not be regarded as an evil, but, on the contrary, a benefit to 
the poorer classes, whose condition in Cuba is deplorable beyond descrip- 
tion. In the iron mines at Santiago the large American enterprises 
have already adjusted themselves to the new conditions and are paying 
their labor 75 cents per day American currency instead of a Spanish 
dollar worth 65 cents in Cuba and in the world's markets but 50 cents. 
Tour commissioner, when in the mining districts of this province, heard 
no complaints, either fromthe proprietors or the laborers. Stress is laid 
upon the loss to the debtor who has borrowed on a fictitious value and 
must pay the premium, and the unfortunate Cuban sugar planter is 
especially signaled out for sympathy. 

That the planter will suffer can not be denied, but the advent of the 
United States into Cuba will lighten so many of his burdens that his 
condition is not without hope. All the customs duties on his imported 
food supplies have been reduced and many important commodities put 
upon the free list. His sugar machinery has been reduced to 10 per 
cent ad valorem, his locomotives and railway supplies to 20 per cent, 
and all along the line the taxes have been cut down. It is not proba- 
ble that his land taxes will be collected during the present fiscal year, 
while the return of i)eace, establishment of law and order, and protec- 
tion of property will immeasurably improve his lot. If, therefore, the 
sugar planter of Cuba will gauge his present outlook by a glance back- 
ward and compare it with his condition last year at this time, he may 
face the new year with less gloomy premonitions as to his future than 
some of the testimony taken by your commissioner on the effects of 
disinflation would indicate. ^ i 

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REPORT ON THE CURRENCY OF THE ISLAND OF CUBA. 7 

The following exhibits are respectfully sabmitted as bearing on this 
qaestion: 

I. Gable dispatch to the New York Herald, dated Havana, Decem- 
ber 15. 

IL Petition from the bankers and merchants of Havana to the Presi- 
dent of the United States. 
III. Letter of Adolfo Munoz to Robert P. Porter, commissioner. 
All of which is respectfully submitted. 

Egbert P. Porter, 
Special Oommisaioner for the United States 

to Ouba and Porto Rioo. 

Hon. Lyman J. Gage, 

Secretary of the Trea^sury, Washington^ D. 0. 

Deosmbeb 27, 1898. 



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Exhibit I. 

IProm the New York Herald, December 16, 1898.] 

CUBAN CUBBENOY PBOBLEMS — TBOUBLES ATTENDING THE INTRO- 
DUCTION OP AMEBIOAN MONEY— SPANISH SILYEB WILL ALL GK) 
BAOK TO SPAIN. 

Havana, December 15. 

While capital for investment flows in a steady stream to Cuba, 
where agricnltural pnrsnits are already feelings prosperity, bnsiness 
men in this city are panic-stricken, and instead of endeavoring to 
increase trade are canceling orders. This is becaose of the report 
that has gained credence that Americans with their occupation will 
depreciate Spanish silver and gold. The result of this has been to 
practically paralyze certain branches of banking business. Dei>08it8 
are now accepted or retained in various Havana banks under certain 
restrictions. Ouba has for years maintained a gold basis by means of 
legislation, all gold coins passing here for 6 per cent above their face 
value, this having made it impossible to ship them at a profit. The 1 
centen, the gold coin most current, has a value in Spain of $5. Here 
it is worth $5.30. Americans will undoubtedly compel the centen to 
circulate at its true international value. If due notice is not given 
of this change it will cause untold confiision. While all classes com- 
plain, it is the consumer who is being and will be hurt. 

It is fhrther announced Spanish silver will circulate at 50 cents on 
the dollar compared with American money, which means that all 
Spanish silver will be at once returned to Spain. In its place must 
come American silver. Wage workers here do not have any deeper 
understanding of the money question than that a silver dollar is pay 
for one day's work, and that pay they must have. The Spanish dollar 
is now worth 68 cents American money. Sugar planters, emplojdng 
from 600 to 1,000 men each, say they will be compelled to give their 
men American silver when it comes into use here, which means an 
increase of 30 per cent in the wage scale. Many who expected to 
begin anew on plantations in January have announced that they will 
make no attempt before spring, thus giving the situation opportunity 
to adjust itself. 



Exhibit II. 

Havana, December 14^ 1898. 
Deab Sib: The undersigned, principal bankers and merchants of 
Havana, desirous of expressing their views regarding the proposed 

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REPORT ON THE CURRENCY OF THE ISLAND OF CUBA. 9 

impending^ change in the monetary system of the country, and foresee- 
ing that any sadden sdteration thereof would prove prejudicial and 
vexatious to the general business interests of this island, and surely 
create difficulties and conflict between all parties, in view of the large 
number of mortgages and other contracts outstanding, based upon the 
standard of value now existing here, we most respectfully submit: 

That all inconvenience and trouble will be averted by the simple 
expedient of establishing a premium of 10 pei cent upon all legal- 
tender money of the United States and making same good at that 
premium in payment of all debts and obligations whatsoever. 

It is no doubt within your knowledge that Spanish and French gold 
coin circulate here at an arbitrary premium of 6 per cent, and to dem- 
onstrate that there would be no injustice to anybody owing to the 
measure advocated by the petitioners the records of meltings at the 
United States assay office at New York will suffice to establish the fact 
of almost exact parity between the Spanish centen, or alfonsino, which 
drculates here for $5.30; the French uai)oleon or louis, which passes for 
$4.24, and a United States five-dollar piece or note having a paying 
value, as suggested by the memorialists, of $5.50. 

Upon reduction of the three coins to a common factor or by melting 
into grains of fine gold it will be manifest that at the valuations fixed 
above, the proportionate exporting or exchange value here is approxi- 
mately identical, pi*oving the contention that no possible injustice 
would ensue, the slight difference, if any, being in favor of the creditor, 
who receives the American money at 10 per cent premium. 

The petitioners deem it necessary to dwell upon the importance of 
avoiding any immediate change, calculated to upset the existing mone- 
tary standard, such as would inevitably occur if the gold coins in cir- 
culation were to be arbitrarily reduced in their account value, besides 
working immense injustice to the debtor class and probably causing a 
severe financial and mercantile panic which the country in the present 
state of i>overty could not bear without great disturbance and suffering. 

Should it please you, as we hope, to favorably consider our petition, 
there is little doubt that within a period comparatively brief the 
Spanish and French coin will gradually disappear from circulation, 
through movement of tourists and others to Europe, who will naturally 
find it cheai>er to carry some specie instead of drafts, saving the 
exchange, when they are going to France or Spain; while during the 
shipping season the vacuum would be filled by importations of United 
States money, the process continuing until only the latter would be 
current, and it would be feasible, without violence to any interest, to 
abolish the premium and thus introduce the era when the money of the 
United States would have only the same account value as there. 

As people of all classes here are very anxious about this matter and 
keenly feel the uncertainty of the ftiture, owing to existing doubts 
about this question, we would recommend the subject to your earliest 

uigiiizea oy v^jOOvlC 



10 REPORT ON THE CURRENCY OF THE ISLAND OF CUBA, 

possible and most earnest consideration, and we hope that we have 
succeeded in placing the question before yon in a light which wiU enable 
you to decide promptly upon a measure looking to a wise and equitable 
settlement of the standard of value for this island, satisfactory to all 
parties concerned. 

J. M. BORGES & Go. 

L. Euiz. ' , 

Neuhaus, Neumann & Co. 

Enrique Heilbut & Co. 

Well & Co. 

Eabbl & Co. 

E. Truffin & Co. 

Zaldo & Co. 

M. S & Co. 

Galban & Co. 

J. A. Bancbs. 

J. Baloells & Co. 
Hon. Wm. MoKinley, 

President of the United States^ Washingtonj Z). C, 



Exhibit III. 



Washington, D. C, November 17 , 1898. 
My Dear Sir : I have had the pleasure of reading the report (which 
I return inclosed) that you have written on Cuban matters. I concur 
with your views as expressed in that document, only I believe that the 
inflated value on Spanish gold coins, and from 1893 also on French 
gold coins, can not be suppressed as easily as some of your witnesses 
think. 

• « • • • • • 

The currency question is a diflftcult one, and a thorough discussion 
will be necessary before settling it in a definite and permanent manner. 
Certaiuly, owing to the close economical relation between Cuba and 
the United States, the best solution will be to introduce into Cuba the 
American currency; but in order to do this without any inconvenience 
a great deal of cave will be necessary. 

One first step, however, which will prepare the way for further 
action, and would help greatly the exportation of the next sugar crop, 
is to give full legal-tender value to the American eagle, making the 
gold coin equal to $11 Cuban (pesos). Taking into account the mint 
values, i. e., the weight of gold contained in the American eagle and in 
the Spanish gold coin called centen, or alfonsino (current in Cuba), 
which is a legal tender of the value of $5.30 Cuban, the correspond- 
ing value of the American eagle is 10.9875 pesos, or Cuban dollars — a 
value so closely near to 11 pesos that the exact value of the eagle may 



/Goo^i 



REPORT ON THE CURRENCY OP THE ISLAND OF CUBA. 11 

be accepted to be 11 pesos. Sometimes, practically, it is even a little 
higher in the exchauge market. This admission of the American eagle 
as legal tender would be welcome, especially to planters, bankers, and 
merchants in the foreign trade, bnt is otherwise with the other meas- 
ures which will become necessary in order to adjust the old or .the 
Cuban, currency. 

The difficulty will be the following: 

First. The gold currency (which is the only commercial and legal 
currency in Cuba) circulates by sovereign authority, with an exagger- 
ated or inflated value of about 6 per cent, because the Spanish Govern- 
ment took the ill-advised step as far back as in the first quarter of the 
present century of making the Spanish onza equal to 17 pesos, their 
real value being only 16 pesos. But as during three generations this 
artificial proportion of the value of gold to silver (17 to 1) has been 
firmly established and adhered to in all money contracts, mortgages, 
etc., the consequence of this economical historical fact is that, the money 
of account being the silver peso (Cuban dollar) and the currency being 
in gold coin, any alteration in the value of a peso, i. e., in the relative 
value of both metals, would produce great trouble and ii^justice. If 
the premium or inflated value on gold which has been in existence 
ever since Cuba began to be an important commercial country was 
now suppressed, the losers would be the debtors (now numberless in 
Cuba), because they would have to pay in a currency about 6 i>er cent 
higher in value than agreed. 

In the case of the American currency being introduced, still more 
care would be necessary in order to avoid any such injustice, as the 
American legal dollar (in gold) is worth 10 per cent more than the 
Cuban dollar. 

The consequence of these facts is that when new and permanent 
laws are made for Cuba (which can not be done presently) and the 
American currency established in Cuba, it will be necessary to take 
proper measures in order to avoid any trouble or injustice. The meas- 
ure which at once suggests itself as the best and most simple remedy 
is a statute declaring that from the date of the introduction of Ameri- 
can currency the Cuban peso and the American dollar will have the 
same and identical value, i. e., that the dollar and the peso will be one 
and the same money, aud consequently the American eagle will be 
equal to 10 pesos; but that in the payment of all money contracts, 
mortgages, or debts of any kind prior or anterior to the introduction of 
the American currency, the debtors will pay either in Spanish gold 
coin or in American currency at the rate of 1 eagle for 11 pesos (Cuban 
dollars). 

The exi>eriment of dealing equally (from this moment) as well in 
Spanish as in American gold at the above-explained ratio of 1 eagle 
equals 11 pesos will be a practical test or confirmation of the preceding 
reasoning. 



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12 REPORT ON THE CURRENCY OF THE ISLAND OF CUBA. 

The second difficulty in the way of establishing in Gaba the American 
currency would be found in the objection of the Cubans to accept as 
equivalent to gold the American silver coin. The difficulty will grad- 
ually disapi>ear as soon as the whole of the American monetary system 
should be introduced into Cuba; provided that many reliable banks 
are then established all over the island with the object of interchanging 
the gold and silver American coins and bank notes. In this way the 
whole of the Cuban population will soon become accustomed to the 
employment of the American silver currency. 

Most truly, yours, Adolfo Munos. 

EOBERT P. POBTEB, Esq., New York. 



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ExEcuTiTE Mansion, 
Washington, December 28, 1898. 
It is hereby ordered that on and after January 1, 1899, and until 
otherwise provided, all customs, taxes, public and postal dues in the 
island of Cuba shall be paid in United States money or in foreign 
gold coin, such as the Spanish alphonsinos (ceiiten) and the French. 
loais, which will be accepted in payment of such customs, taxes, public 
and xK>stal dues at the following rates : 

Alphonsinos (25-pe8eta piece) $4. 82 

Lonis (20-franc piece) 3. 86 

That all existing contracts for the payments of money shall be pay- 
able in the money denominated in such contracts, and where French 
and Spanish gold shall be the stipulated money of payment they shall 
be received in their present decreed inflated values^ i. e., alphonsinos 
(25-peseta piece), $0,305 ^^^^ (20-franc piece), $4.24, or in United 
States money at the relative value set forth in the above table, namely, 
$4.82 for alphonsinos (25-peseta piece) and $3.86 for louis (20-france 
piece). 

It is further ordered that on and after January 1, 1899, and until 
fnrther provided, the following Spanish silver coins now in circulation 
in the island of Cuba shall be received for customs, taxes, public and 
postal dues at the following fixed rates in American money: 

The peso $0.60 

The medio peso 30 

The peseta 12 

The real • 06 

The medio real 03 

Bronze and copi>er coins now current in the island of Cuba wiU be 
received at their face value for fractional parts of a dollar in a single 
payment to an amount not exceeding 12 cents (1 peseta). 

William McKinlby^ 

13 

O 



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us. Cucai a-rii"T*cX*Yo "Rico b^ec\ctl cc^v^^^^^c.-:'0V\t' v 

REPORT 



ON THE 



COMMERCIAL AND INDUSTRIAL CONDITION 



OF THE 



ISLAND OF CUBA, 



BY 



ROBERT P. PORTER, 

SPECIAL COMMISSIONER FOR THE UNITED STATES 
TO CUBA AND PORTO RICO. 



SPECIAIL. REPORT. 
THE HBOAL AM) EOOHOMIO OONDITIOH OF THE ISLAND OF JAMAICA. 



RESPECTFULLY SUBltflTTED TO 

HON. LYMAN J. GhAGhE, 

Secrrtart of the Treasury, 
WashingUm, D. C. 

DHICHIMSHIJR 31, 1S98. 



WASHINGTON: 

GOVERNBiBNT PRINTING OFFICE. 

18 99. uigmzeaDy Google 



Tkkasury Dkpaktmknt. 

Document No. 2085. 

Office of Secretary. 



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THE FISCAL AND ECONOMIC CONDITION OF THE ISLAND OF JAMAICA. 



Teeasury Depabtment, 
Office of the Special Commissioner for the 

United States for Cuba and Porto Rico, 

. December 31, 1898. 

Sir : I have the honor to inform you that returning from Santiago de 
Cuba, via Port Antonio, on the American Mail Steamship Company's 
S. S. Sampson, opportunity was offered to make a brief stay in the island 
of Jamaica. Through the kindness of Capt. L. D. Baker, the head of 
the vast Artxerican fruit interests of Jamaica, your commissioner visited 
Kingston and had an interview with the governor-general of Jamaica 
and with the heads of nearly all the departments of government. In 
this connection it affords me pleasure to mention the name of Dr. James 
Johnston, member of the Jamaica legislative council for St. Anns Parish 
and member of the commission now revising the revenue law of Jamaica. 
Dr. Johnston was a fellow-passenger on the steamship Sampson, and 
gave your commissioner much valuable explanatory information in 
relation to the government of Jamaica, for which this opportunity is 
taken to express thanks. 

The information thus obtained and the data gathered from the vari- 
ous blue books and the reports of the royal commission on the British 
West India Islands all have a bearing on the problem the United States 
is now confronting in Cuba. I beg herewith to submit for your con- 
sideration a report dealing with some of these questions. 

To better appreciate the present aims of British administration in 
Jamaica attention is called to the following extract from an article in 
the current number of Scribner's Magazine, by the Eight Hon. Joseph 
Chamberlain, British colonial secretary: 

In the firet period of this eventful history the territories acquired by conquest or 
discovery were treated as possessions to be exploited entirely for the advantage of 
the oecupyiug nation, and little or no thought was given to the rights or the inter- 
ests either of the original inhabitants or of the colonists who had dispossessed them. 
This view of the relations between a State and its outlying territories continued 
more or less throughout the eight'^enth century, although the war of independence 
in America did much to modify and dispel it. The success of the Revolution not 
only destroyed the hope that colonies could be made tributary to the mother country 
but led ultimately to the conclusion that, since they woula never be a source of 
direct revenue, we should be better without colonies at all. Assuming that an 
entirely independent and separate existence was the ultimate destiny of all our pos- 
sessions abroad, and believing that this consummation would relieve us of burden- 
some obligations, we readily conceded self-government to the colonies in the tem- 
perate zones, in the hopes that this would hasten the inevitable and desirable result. 
We fonnd, not without surprise, that in spite of hints to this effect, our kinsfolk and 
fellow-subjects resented the idea of separation and, fortunately for us, preferred to 
remain, each ''daughter in her mothers house and mistress in her own." Influenced 
by the same idea, we elaborated constitutiona by the score for every kind of tropical 
dependency, in the vain expectation that the native population would appreciate 
forms of government evolved in our own p^^ilization, and W9g||^J^^i;njq5i30y^o be 



self-snpportiug and to develop for themselves tbe territories in whicli we began to 
think we had only a temporary interest. We were disappointed, and we have had 
to recognize the fact that, for an indefinite period of time, the ideas and standards 
of onr political and social order can not be intelJigentlj accepted or applie<l by races 
which are centuries behind ns in the process of national evolution. 

The experience of Haiti and Liberia under independent native government, of 
many of tne Sonth American Republics, of Egypt, and of India, and the sta^ation of 
all tropical countries in regard to matters dependent on local effort, make it evident 
that wherever the white man can not be permanently or advantageonsly acclima- 
tized, and wherever, therefore, the ffreat majority of the population must always 
be natives, the only security for good government and for the effective development 
of the resources of the country consists in providing this native population with 
white superintendence, and with rulers and administrators who will bring to their 
task the knowledge derived from the experience of a higher civilization, and, con- 
stantly changing, will be always under the influence of the standards and ideals 
which they have been brought up to respect. 

This is the root idea of British administration in the tropics. At the same time we 
have abandoned forever any desire to secure tribute from these possessions, and we 
no longer seek any direct or exclusive a<lvnntage. 

We nnd onr profit in the increased prosperity of the people for whose interests 
we have made ourselves respoLsible, and in the development of and access to mar- 
kets which we open at the same time to the rest of the world. Onr primary obliga- 
tion is to maintain peace, and safety of life and property, and equal justice for all, 
irrespective of race or class. Subject to these conditions, we interfere as little as 
possible with native religions, customs, or laws; and under this svstem we are sno- 
cessfully administering tueaflairs of hundreds of millions of people of almost every 
race under the sun, with trifling cost to the British taxpayer and with the smallest 
army of white soldiers of any of the powers of Europe. In India, where 300,000,000 
of people acknowledge the Queen as Empress, the total white garrison is only 70,000 
men. In Egypt, with a population of 9,()00,000, the normal white garrison is 3,500 
men ; while in Ceylon, the Straits Settlements and protected States, the West Indies 
and West Africa, not a single white regiment is stationed for the maintenance of our 
rule, which is secured entirely by colored soldiers and police under British officers. 
Our experience should at least go far to satisfy the objections of those Americana 
who anticipate that the occupation of tropical countries would involve the reten- 
tion of vast numbers of American soldiers in an unhenltbj climate, and would lay 
an intolerable burden on the American treasury. 

The Spanish idea in its government of Cuba was purely and abso- 
lutely the idea of possession, and the facts pointing to this have been 
abundantly set forth in the several reports relating to the fiscal, X5om- 
inercial, and industrial condition of the island of Cuba. The work of 
reconstruction, already so auspiciously begun by the United States 
Government in Santiago, and described in a former communication, is 
absolutely in line with what Mr. Chamberlain aptly terms the root idea 
of British administration in the tropics. The primary obligation of the 
United States in Cuba is to maintain peace, the safety of life and 
proi)erty, and equal justice for all, irrespective of race and class. In 
the first instructions given your commissioner, you will recall that you 
said the United States desired to secure no tribute from Cuba; that the 
work of reconstruction must be performed in the interests of the people 
of Cuba only, and that the profit to the United States must come in the 
increased prosperity of the people of Cuba and in the benefits aecroing 
from a peaceful instead of a constantly warring neighbor. According 
to Mr. Chamberlain, this is the fundamental principle underlying 
English operation in her tropical colonies, one of which — Jamaica — 
your commissioner has had a brief opportunity to study. 

In comparing British administration in Jamaica with any possible 
operations of the United States Government in Cuba, the fact of the 
great difference in the population must be considered. In Jamaica not 



over 15,000 of the 700,000 population are white. When England began 
to treat this island as a trast and not as a possession — say aboat 1834 — 
the population was made up of 311,070 slaves, 15,000 whites, 40,000 
colored or brown people as they are called in Jamaica, and 5,000 free 
blacks. In Cuba a majority of the population are white — census of 
1887 showing 1,102,889 white and 528,798 colored— in all provinces, 
Matanzas, with 45 per cent colored, and Santiago, with 42 per cent col- 
ored, representing the strongest colored sections of the island. 

That half a century of British rule in Jamaica has improved these 
people, nearly all of whom were slaves when the work was begun, is 
self-evident, though it is equally true that similar government in Cuba 
would have resulted, by reason of the preponderance of white popula- 
tion, in more far-reaching results. That is, Cuba, under such a gov- 
ernment as England has given Jamaica, would, in all reasonable 
probability, have numbered at this time a population of from 4,000,000 
to 5,000,000, a greatly increased commerce, diversified industries, mag- 
nificent main and parochial roads, an adequate railway syst'Cm, many 
prosperous and well-built cities, and a degree of prosperity and civili- 
zation far in excess of that which the United States officials found con- 
fronting them when they took possession of the island. With the 
disadvantages of race, with the scars of slavery, and with the single 
industry of sugar and its allied product, rum, the policy set forth so 
clearly by Mr. Chamberlain has been successful in making habitable 
and law-abiding and measurably prosperous a tropical island which 
might have been in a condition little better than that of savagery. To 
be sure, England has not made Anglo-Saxons of these people, but it 
has made peaceful, law-abiding, and, in the main, self-respecting citi- 
zens out of them. There is little doubt that the bulk of the inhabit- 
ants of Jamaica are in a position which compares not unfavorably with 
that of the peasants of most countries in the world. 

The facts here given show that the condition of the laboring classes 
of Jamaica is infinitely better than that of the laboring classes — espe- 
cially the colored population — of Cuba, which has been shown in pre- 
vious reports to be deplorable, even on plantations where work is 
abundant. The number of holdings in the island is 92,979, of which 
81,924 are under 10 acres each. In 1882 there wereonly 52,608 holdings, 
of which i3,707 were under 10 acres each. Even allowing for the faet 
that some persons may hold two or more plots of land, it is clear that 
the island already contains a very large and increasing numberof peas- 
ant proprietors. The crown land regulations offer facilities for the 
settlementof the laboring population on the land, and as 0ugar estates 
are abandoned some of them will probably fall int^ the hands of small 
cultivators. In the last ten years the numberof savings-bank accounts 
of the amount of $25 and under has nearly doubled. 

The census returns of 1891 show that in the ten years, 1881 to 1891> 
there had been an increase of 30 per cent in the number of persons able 

uigiiizea oy %^jk^^^/\cl\^ 



to read and write. The acreage of provision grounds has increased 
more tban 30 per cent in ten years. There are 70,000 holdings of less 
than 5 acres. The area in coffee, usually in small lots, increased in 
ten years from 17,000 to 23,000 acres. More than 6,000 small sugar 
mills are owned by the peasantry. The number of enrolled scholars 
was 100,400 in 1896 as against 49,000 in 1881, while the aetual average 
daily attendance at schools had increased from 26,600 to 59,600. These 
facts indicate considerable advance, though no doubt in certain districts 
the people are poor. The royal commission appointed to investigate 
and report on the agricultural, commercial, and industrial condition of 
the West Indies, came to the conclusion that the depression in Jamaica 
was the result of the island depending almost entirely on a single 
industry. Here is what they say: 

The general statement regardinij the danger of depending on a single industry 
applies with very special force to the dependence of the West Indian colonies upon 
the sugar industry, for the cnltivation of sugar collects together a larger number of 
people upon the land than can be employed or supported in the same area by any 
other form of cultivation. In addition to this it also unfits the people, or at any 
rate gives them no training, for the management or cnltivation of the soil for 
any other purpose than that of growing sugar cane. The failure, therefore, of a sngar 
estate not only leaves destitute a larger number of laborers than can be supported 
upon the land in other ways, but leaves them also without either the knowledge, 
BKill, or habits requisite for making a good use of the land. In those colonies where 
the sugar industry can not be carried on without imported coolie labor the position 
of dependence upon this one industry is still more dangerous. In these cases not 
only is there a yearly charge upon the public revenue to meet the cost of immigra- 
tion, but a liability for back passages is incurred, which a failure of the industry 
would leave the colony without funds to meet. While, therefore, the vital impor- 
tance of the sugar industry to the present prosperity of nearly all the colonies is 
beyond dispute, we wish to observe that so long as they remain dependent upon 
sngar their position can never be sound or secure. It has become a common place of 
criticism to remark upon the perpetual recurrence of crises in the West Indian 
colonies, and we submit that the repeated occurrence of such crises, as well as the 
fact that the present crisis is more ominous than any of the previous oues, illustratea 
the danger to which we have referred, and adds much force to our recommen- 
dations tor the adoption of special measures to facilitate the introduction of other 
indnstries. 

The special remedies recommended were as follows: 

1. The settlement of the laboring population on small plots of land as peasant 
proprietors. 

2. The establishment of minor agricultural industries, and the improvement of 
the system of cultivation, especially in the case of small proprietors. 

3. The improvement of the means of communication between the different islands. 

4. The encouragement of a trade in fruit with New York, and possibly at a future 
time with London. 

5. The grant of a loan from the imperial exchequer for the establishment of 
central factories in Barbados. 

The subject of emigration from the distressed tracts also requires the cnrefiil 
attention of the various governments, though we do not find ourselves at the present 
time in a position to make recommendations in detail. 

The fact is, Capt. L. D. Baker, of the Boston Fruit Company, and 
the other companies engaged in the banana and orange business of 
Jamaica have pointed a way out of the present difficulties, and that 
industry in the course of a short time bids fair to be as important as 
the sugar industry was in former times. Last year this single com- 
pany shipped 5,000,000 bunches of bananas to New York. There are 

uigiiizea oy v^jOOviC 



now over 100,000 orange trees planted in Jamaica, which in a few 
years will be bearing finely and give additional prosperity to the 
coantry. With the American fruit market inadequately supplied and 
the English market practically untouched there is hope both in 
Jamaica and Cuba — especially southern provinces — for diversified 
industries created by rapid transportation. The recent establishment 
of a fleet of fast steamships between New York, Philadelphia, Boston, 
and Baltimore and the various ports of Jamaica, and the probability 
of these or similar lines being established between the United States 
and Cuban ports, are all factors of promise for the industrial future of 
both the Anglo-Saxon and the American West Indies. 

While Jamaica is a well-governed country and its revenue all hon- 
estly expended for the public good of the people, it is far from an 
economically administered government. Order is thoroughly estab- 
lished, laws are obeyed, justice for the humblest is easily obtainable, 
education is general, sanitary matters admirably administered, roads 
maintained, the rights of all conserved, and the revenue honestly col- 
lected and expended. In these particulars the government of Jamaica 
differs widely from what your commissioner has found in Cuba. In 
that unhappy island all is absolutely the reverse of this. The cost of 
governing Jamaica, however, is nearly 25 per cent of the value of its 
commerce, whereas the cost of governing Cuba, if gauged by the 
actual revenue raised, under Spanish rule, ranged from 12J to 15 per 
cent of the value of its commerce. The comparison, however, is of 
little value, because Cuba got nothing for the money exacted by taxa- 
tion, while Jamaica not only gets all, but the taxpayers are informed 
in advance of the purposes for which much of the money is wanted, and 
the sums thus raised are rigidly applied to the purposes for which they 
are appropriated. 

The most useful lessons for those responsible for administering the 
affairs of Cuba can be learned by a study of the Jamaica budgets. 
The methods of raising the needed revenue are intelligent and simple, 
and the method of expenditure not only enables the authorities to get 
as much as possible for the money, but makes possible the strictest 
accountability. The , legislative council of Jamaica discusses every 
item of the budget as closely as the town council of Glasgow or the 
county council of London, both model public bodies, so far as honesty 
of purpose goes, even if some of their legislative experiments fail. 
The humblest Jamaica negro, if he can read and write, may at least 
know the purposes for which the revenue he pays in taxes is expended • 
He may even have the pleasure of deciding which of these items of 
expenditure he regards the least important. At the present moment 
the annual cost of education, $350,000, is regarded too high, and a 
proposition to reduce it to $250,000 is pending. The total expenditures 
of Jamaica have nearly reached $4,000,000, and additional revenue is 
necessary to meet these expenses. The customs tariff is in course of 

uigiiizea oy x_jv^^^/p^i^ 



8 

reviaioii, with a view of IncreasiDg the revenae, and many articles for- 
merly on the free list will have to be pat upon the dutiable list, while 
the general ad valorem rates of daty must be raised from 12^ to 16| 
per cent. Before going into the fatore sources of revenae, it may be 
well to look at the present sources, and for that purpose the subjoined 
table has been compiled from official sources: 

Comparative table of revenue of Jamaica, 1896-97. 



Revenue. 



CastomR 

Export duties 

Excise 

Licenses 

StMnpa 

Post-office 

Telegraph 

Tax on stock 

Court fees 

Tax in lieu of education fees. 

Fines, etc 

Jamaica fiailway 

Reimbursements 

MisoeHaneous. 



Revenues now appropriated . 
Interest on sinking funds . . . . 
Savings Bank 



Total. 



Immigration revenue : 

Export duties 

Capitation tax, etc., laws 7 of 1878 and 14 of 1891 . 
Miscellaneous 



Total 

Appropriated revenue : 

Poor rates 

Kingston streets 

Market dues 

Pounds 

Main road revenue, law 17 of 1890 * 

Parochial roads 

Sanitary 

Fire rates, Kingston 

Trade, metal, hawker, and gunpowder licenses, surplus fund . 

Gas rates, etc 

Parochial general purposes 

Agricultural produce licenses, law 37 of 1896 , 

Miscellaneous , 

Advances ft-om general revenue in aid of funds 



Total. 



Amount 



£321,780 



122,735 

732 

28,947 

24,072 

5,364 



8,284 
11,243 
4.412 
208 
35,969 
13,992 
181,668 
14,199 
3,927 



773,627 



1,476 
206 



$1,608,000 
(a) 

613, 675 

3.660 

110,716 

120,360 

26.830 



1,681 



39,339 
4,354 



38,091 

45,538 
7,862 
1,561 

13,271 
3.793 
4,503 
3,685 
8,544 

21.12S 



181,663 



41,420 

56,215 

22,060 

1,040 

179.845 
60.000 

908.315 
70,995 
19,635 



3,867,635 



(a) 



,380 
1.025 



8,405 



196,695 
21,770 



140,456 

227,090 

89,810 

7,806 

666,355 
18,065 
22,515 
18,425 
42,720 

105. 610 



908,315 



a Duties abolished in 1892. 

V 



b Includes market dues and pounds. 



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Customs, excise, and appropriated revenue, as will be seen above, are 
the principal sources of income, while the expenditures for the same 
period are divided under the following heads: 

Comparative table of expenditure of Jamaica, 1896-97. 



Expenditure. 



Amoant. 



Charges of debt 

Governor and staff. 

Priry coonoil 

Leffialative oouneil 

Colonial secretariat 

Director of public works 

Audit office 

Treasury 

SaringsBank 

Stamp office 

Post-ottice and telegraphs 

Revenue departraeuts 

Judicial 

Eoclesiastica] 

Medical 

Police 

Prisons and reformatories 

Education 

Harbor masters and harbors and pilotase 

Colonial allowances and military expenditure 

H iscel I aneous 

Census 

Steam communication 

Stationery and printing 

Library and museum 

Pkuitations and gardens 

Bailway 

Main roads and buildings 

Pensions, etc 

Purposes now supplied by appropriated revenue . 

Total expenditure from income 

Sinking funds, etc 



£82,417 

7,368 

62 

2,499 

5,612 

17,979 

3,629 

4,634 

3,275 

1,106 

35. 910 

39,969 

45.611 

2,927 

50,307 

60,889 

27.836 

67,540 

2,741 

12. 814 

29, 571 



$412,085 

36,840 

310 

12,345 

28,060 

89,895 

18,145 

23.170 

16, 376 

5,530 

179. 550 

199,845 

228,065 

14,636 

296,535 

304,445 

139,180 

337, 700 

13,705 

64,070 

147,856 



.1,800 
7,989 : 
2,404 ' 
6,484 



9,000 
39,945 
12,020 
32,420 



80,467 

16,962 

135,842 



402, 335 
84,810 
679, 210 



766,607 
14,199 I 



3, 828, 086 
70,995 



Total payments from income . 
Less debt payments as above 



779,806 ; 
14,190 



3,899.030 
70,995 



Add expenditures from moneys raised by loans . 

Totol 

Immigration 



765, 607 
8,125 



3, 828, 036 
40,625 



773,732 8,868,660 



979 



4.C 



A glance at the above tables, and then a glance at the budget of 
Cuba, given in a former report, is all that is necessary to show the vast 
difference between the British and the Spanish methods of dealing with 
the fiscal interests of their colonies. The business-like methods of the 
one and the blind, slipshod methods of the other are in sharp con- 
trast. In dealing with Cuba, it may be diflBcult to follow entirely these 
English methods of accounting at once; but the sooner the United States 
, inaugurates its own clear methods of national bookkeeping and official 
accountability, the quicker the people of Cuba will appreciate sound 
business principles in the conduct of their own affairs, and the better. 
It makes no difference whether Cuba is annexed to the United States 
or established as an independent government, for these lessons must 
be learned in either event, or the island will come to grief. 

It is hardly necessary to do more than call attention to the prin- 
cipal items of expenditure. First of all come roads. England has 

* * uigiiizea Dy x_>v^\^"Xi\^ 



10 

discovered that good roads are not ouly an important factor in moun- 
tainous countries in keeping order, but also the basis of industrial 
development and prosperity. In the budget herewith submitted for 
consideration the following items must be added together to ascertain 
the amouut expended in 1897 for roads: 

Main roads aud buildings $402,335 

Parochial roads 227,690 

Total 630,0^ 

In this connection attention is called to the annual expenditure on 
roads in Jamaica for fourteen years: 

Expenditure for main andparoohial roads in Jamaica from 1883-84 to 2896-97, inclusive. 



Tear. 



Approph- Ezpendi* 
atea reve- tnre for 
nue for I main 
parochiid ; roadB and 
{ roads. \ buildings. 



.L 



1883-84 £39,614 



1884-85. 
1885-86. 
1886-87. 
1887-88. 



1839-90 (a). 

1890-91 

1891-92 

1892-93.... 



1894-95. 
1895-96.. 
1890-^.. 



Total for 14 years., 
Average per year. 



40,490 
38,246 
39,670 
42,935 
42, 146 
20,740 
60, 317 
44, 845 
48, 520 
50.169 
47,111 
48, 398 
46,538 



£48.156 
47, 614 
52.285 
48,080 
52,318 
57, 632 
32, 210 
91.659 
91,659 
83, 718 
58,460 
65,647 
68,654 
80,467 



Total. 



£87,670 I 
88,110 ! 
90.531 i 
87,750 ' 
95,253 ' 
99,778 ' 
52,950 
141, 976 
136, 504 
132,238 I 
408,629 
112.758 
117. 052 
126,005 



$438,350 
440,550 
452,655 
438,750 
476,265 
, 498,890 
264,750 
709.880 
682,520 
661,190 
543. 145 
508.790 
585,260 
630,025 



, 1.477,204 



7.386.020 
527,572 



a Half year. 

Here may be found a good illustration of England's policy, which is 
a great contrast to the policy of Spain in Cuba. No money has been 
spent on the roads of Cuba, all of which are in a deplorable condition. 
Attention should at once be given to this important question, and a 
liberal sum out of both local and general revenues of the island set 
apart for this purpose. The debt of Jamaica is not excessive — in the 
neighborhood of $10,000,000, with an annual charge of about $400,000. 
Police aud medical charges are about the same, averaging about 
$300,000 each, or in all $600,000. The necessities of liberal expendi- 
ture for maintaining the health of the community is of first importance. 
It is possible a study of this budget may be useful to those who will 
have to divide the Cuban budget, and for these reasons the above 
figures are given. 

The present Jamaica tariff was evidently framed with the two ideas 
of revenue for the island and a market for British goods. Food prod- 
ucts — for example, such as bacon, beef, beans, bread, butter, cheese, 
corn, meats, oats, oil, pork, pease, rice, salt, sausages, wheat, sugar, tea, 
coffee, and many other staple articles — are all on the dutiable list, some 



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11 

Xmying a fairly stiff rate of daty. On the other hand, many articles of 
merchandise — ^bricks, bridges, carts and wagons, clocks, diamonds, 
machinery, locomotives, and a host of other things which England sup- 
plies the island — were all exempted from duty. Under a general ad 
valorem clause, 12J per cent was collected on all articles not enumer- 
ated. The enumerated list of the Jamaica tariff is not large, so a large 
amount of merchandise was actually imported under this clause. The 
proposed new tariff, which will probably go into effect next year, takes 
many articles off the free list and puts them on the dutiable list. It 
will also increase the ad valorem rate to 16f per cent. This has been 
necessary, because there has been a deficit in the revenue. The 
new tariff will be expected to yield £400,000, or about $2,000,000, and 
from internal revenue or excise, £150,000, or $750,000, and £250,000, 
or $1,250,000, from appropriated revenue, which really comes from the 
land and householders. Here it is summarized: 

Revenue from — 

Costoms $2,000,000 

Excise 750,000 

Appropriated revenue (land and household taxes, etc. ) 1, 260, 000 

Total 4,075,000 

If this amount can be secured, the revenue of Jamaica will be a trifle 
more than expenditure, and result happiness. If not, expenses must 
be reduced. Some members of the legislative council favor this latter 
plan. The commission has the whole fiscal question now in hand and 
within a short time will probably reach conclusions. There is much 
more of interest that might be said about the present economic condi- 
tion of Jamaica, but the points herein brought out appear to be the 
only ones that bear especially on the problem your Department is at 
the moment solving for Cuba and Porto Kico. 
All of which is respectfully submitted. 

Robert P. Pobtbb, 
Special Commissioner for the United States 

to Cuba and Porto Rico. 
Hon. Lyman J. Gage, 

Secretary of the Treasury^ Washington^ D. C. 



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REPORT 



ON THE 



JJEEENCY QUESTION 



OF 



PORTO RICO. 



BY 



EGBERT P. PORTER, 

SPECIAL COMMISSIONER FOR THE UNITED STATES 
TO CUBA AND PORTO RICO. 



KE8PECTFULLY SUBMITTED TO 

HON. LYMAN J. GAGE, 

8BCHBTABY OF THE TREASURY, 

iraBhingioUf D, C, 
JAJNTJA^TtY 3, 1R99. 



WASHINGTON: 

GOVERNMENT PRINTING OFFICE. 
1899. 



U.S. Cuba a-v^ATDvtol^\co i)ip€.ciaLl eevv^vy;xss\i>vxcr 

REPORT 



ON THE 



CUEEENCY QUESTION 



OF 



PORTO RICO. 



BY 



ROBERT P. PORTER, 

SPECIAL COMMISSIONER FOR THE UNITED STATES 
TO CUBA AND PORTO RICO. 



RESPECTFULLY SUBMITTED TO 

HON. LYMAN J. GAGE, 

Secretary of the Treasury, 
Washington^ D. C. 

JAT^XJARY 3, 1B90. 



WASHINGTON: 

GOVERNMENT PRINTINa OFFICE. 

1899. 

Digitized by VjOOQIC 



Trbasubt Dbpabtment, 

Doonment No. 2082. 
Division of Customs, 



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THE CURRENCY QUESTION OF PORTO RICO. 



Treasury Department, 
Office op Special Commissioner for the 
United States to Cuba and Porto Kico, 

January 3, 1899. 

SiB: I have the honor to submit some statemeuts and letters in rela- 
tion to the currency of Porto Kico, which may be of value in solving 
the question now before the Department. 

The arguments advanced in the comnmnications addressed by Mr. 
A. M. Seixas to the honorable Secretary of the Treasury and to your 
commissioner, respectively, advocating an immediate return in Porto 
Bico to a gold basis, are sound as far as they go. In these statements 
Mr. Seixas proposes that the United States should squeeze the inflation 
out of the silver, substituting United States money for Porto Eico 
silver and let the people of Porto Rico pay the cost on the installment 
plan, with interest added. The Porto Rico currency trouble does not 
differ in kind but only in degree to the difficulty which confronted the 
Treasury Department in dealing with the same question in Cuba. It 
is not unnatural, therefore, that the same remedy should be suggested. 
If it were [>ossible to separate the currency pure and simple from all 
mortgages, debts, contracts to pay money, and other obligations, the 
plans proposed by Mr. A. M. Seixas and Mr. P. Salazar might be 
adopted. Both these gentlemen treat the question as though only 
(5,000,000 worth of currency were involved, and the assumption in 
both instances is that with this concrete matter settled aU will move 
along happily again. 

In the case of Cuba the inflation was, at the most, a question of 10 
per cent and, in fact, a fictitious value of but 6 per cent. Those who 
advocated a continuance of this inflation for Cuba by means of a 
premium on gold frankly admitted that which ever way the Treasury 
Department settled the question it would have little or no effect upon 
current transactions. The difficulty encountered in Cuba is precisely 
the difficulty encountered in Porto Rico, namely, the disx>o8ition of 
pending debts. This trouble, however, is emphasized in Porto Rico 
because, instead of an inflation of 10 per cent, as in Cuba, we have in 
Porto Rico a depreciated coin, the intrinsic value of which is less than 
half the value of the dollar which these gentlemen propose to substi- 
tute for it. In this connection your attention is directed to the follow- 
ing extract from a comprehensive statement prepared especially for 

3 

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your commissioner by Mr. H. C. Fritze, of Fritze, Lundt & Go., of Porto 
Kico. Mr. Fritze is engaged in banking, importing, and exporting at 
Ponce and Mayagnez, and bis firm is the largest and strongest hoase 
in the whole island. Here is what he says: 

If the whole qnestion were redaoed to converting and exchanging the existing vol- 
nme of circulating currency, the difficulty would be relatively small. I have already 
pointed out that this only amounts to about $5,500,000; but it must be borne in 
mind that the rate which has to be fixed for the change of the circulating Porto 
Rican silver currency necessarily has to be applied to the settlement of all pending 
debts, too, because all these debts are contracted in Porto Kican currency, and if the 
Porto Rioan currency is taken away and supplanted by American currency the debtors 
can only pay in American currency. And for tbis reason it comes to evidence that 
the question of converting the Porto Rican money is far more serious and affects the 
economical life of the island to a very large extent. There appear to be on the island 
from $20,000,000 to $25,000,000 of mortgage debts on real estate and land property — 
debts which have been contracted in the course of, let us say, the last ten years, and 
which extend, in many instances, over still many years to come. The commercial life 
being very active on the island, and being based principaUy on credit, even on long 
credit, it may be safely supposed that there is another $25,000,000 of pending com- 
mercial debts (perhaps even more) — debts which are not guaranteed by mortgages 
and which extend over one to two years. The sales are chiefly made in Porto Rico 
on from six months' to twelve months' time, but the payment is frequently extended 
to a mnch longer time and postponed frombne year to the other; and all these pend- 
ing debts are contracted in Porto Rican currency, too. So it results that if the real 
currency volume amounts to about $5,500,000 the rate to be fixed for the conversion 
has to be applied to about ten times that amount in debts pending payment; and if 
a fair and Just rate should not be agreed npon the economical position of the island 
may suffer to an enormous extent. 

The rate of 100 per cent — that is, one dollar of United States currency for two dollars 
of Porto Rico currency — has been talked of and has been really adopted by the actual 
military authorities in Porto Rico for official payments. Such a rate is simply ruin- 
ous and can not possibly be thought of as fair and just. It is true that after the 
outbreak of the war the rates in Porto Rico went up to 125 per cent; but these rates, 
which ruled for the time of the war, were panic or war rates, and can never be taken 
into consideration for the conversion rate to be fixed. Wh^n the war broke out 
nobody wanted to draw and everybody wanted to buy bills; nobody knew what 
would become of Porto Rico, and money shows always more cowardice than any- 
thing else in the world. Besides, it may be safely stated that nothing was sold on 
credit after the outbreak of the war, and all the existijag pending debts had been 
contracted before, and as soon as it became certain that Porto Rico would be an Ameri- 
can country the rates of exchange went rapidly down, and are actually at about 70 
per cent, although the coffee crop, which supplies the biggest amount of bills, has 
hardly commenced. This is the evident and best proof that the military rate of 100 
per cent was not Just and equitable and can never be maintained. 

The statements of nearly all those who advocate an immediate and 
complete disinflation of the Porto Rico currency neglect, as it seems 
to your commissioner, to give fall consideration to the above phase of 
the question. Indeed, as a rule, they utterly fail to even touch on the 
most far-reaching of the various elements in the problem, namely, those 
which enter into the commercial life of the community. Another phase 
of the question is that affecting salaries and wages, and on this point 
attention is respectfuUy called to a thoughtful article dated Ponce, 



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October 19, 1898, which appeared in the Loudon Times, and which was 
evidently written by one who has fully mastered the situation : 

The questions the Government of the United States have to consider in connection 
with Porto Rico are many in number and various in complexion. One of the most 
serious of the problems to be dealt with is that couceminji^ the currency of the 
island and another the rej^ulation of the banking laws. The present currency of 
Porto Rico is the silver dollar, the value of which fluctuates with the variations in 
the price of silver and with the demands for the payments to be made abroad for 
the purchase of merchandise. When crops are good and the export of coffee, sugar, 
and tobacco are large there is less necessity to buy gold to remit to foreign 
countries, and consequently the silver dollar in Porto Rico, or rather the rate of 
exchange, rises far above the normal or intrinsic value. When the exports are 
small the reverse of tnis happens and a sovereign becomes worth $10 or $11 instead 
of $8, as is the case to-day. Owing to the causes I have mentioned, the attempt of 
the United States military authorities to establish a fixed rate of exchange of two 
Porto Rican dollars for one American dollar has completely failed up to the present 
time. The total amount of silver coin in circulation in the island is $5,800,000 in 
round figures, and the intrinsic value of each dollar is, with silver at 27d. per 
ounce, a trifle under 43 cents gold. 

In addition to this amount of currency the Spauish Bank of Porto Rico and other 
banking concerns Ihsucs notes which are everywhere accepted at their face value. 
It would be no very difficult matter to withdraw the present currency from circula- 
tion, if the question was merely one of substituting United States money for it at a 
fair rate of exchange. There are, however, other points to be considered. Wages, 
salaries, contracts, and, indeed, all the buniness of Porto Rico is done on Porto 
Rican coin. The laborer will not understand that 50 cents in United States money 
is equivalent to the one dollar he has been accustomed to receive. The clerk will 
find that living on $50 gold monthly is much more difficult than living on $100 silver. 
The employer of labor will not be able to reduce wages in proportion to the difference 
in the value of the gold and silver currency, and a heavy balance will ensue against 
him. The profits of growers of coff*ee, sugar, and all agricultural products exported 
and sold for gold will of necessity be largely reduced. In fact, a sudden and arbi- 
trary change from the existing silver basis to the currency of the United States will 
restrict production in every branch of industry in this island, and for this reason 
any such change should be most carefully considered in Washington and not decided 
in the ofl'hand manner at present proposed. In time, no doubt, a gold standard can 
be brought into general use, but a measure of this nature aftecting so radically the 
vested interests in the island must be gradually brought into operation and time 
given for merchants, traders, and planters to prepare for the new conditions. If not 
accomplished in this manner, a serious check will be given to the natural resources 
of Porto Uico and much discontent created among the inhabitants. 

The considerations so fully set forth in these two extracts, together 
with a careful perusal of tbe complete statements of H. C. Fritze, 
herewith appended as Exhibit 1, suggest, in the opinion of your com- 
missioner, the wisdom of some such plan of dealing with the Porto 
Bico currency as the one you have in mind, viz: 

(1) Make Am(*rican currency the legal tender of the island, admit- 
ting besides in the payment of taxes, custom-house duties, stamp 
revenue, and all kinds of public dues the Porto Rican silver peso at 
the rate of 60 cents, United States money. 

(2) People should be free to contract in whichever moneys they 
choose, whether American or Porto Rican, but notwithstanding this 



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freedom the peso would not be worth less than 00 cents, because the 
United States Government would accept it at that rate, and could 
neither raise above that, because the United States would be ready to 
issue it to the public for CO cents. 

(3) The objection to do away with all the present Porto Rican cur- 
rency, exchanging it for American silver, is, as you have most aptly 
stated, that the day laborers are not likely to perceive the difference 
between the intrinsic value or mint value of a coin and its monetary par 
value as a diviision of a gold coin. No amount of reasoning will con- 
vince them, and the only effective object lesson must be the constant 
and long continued taking and giving of the peso by the authorities at 
the specified rate of 60 cents. 

(4) This rate has been reached by calculating the average of the 
rates of exchange for the last five years, leaving off', as would seem to 
be fair, the period of war. 

(5) It is also a fair medium between the opposed opinions of the 
different classes of people, each of whom, as the testimony taken on this 
occasion clearly shows, is biased by his own particular interests. 
Finally it coincides with the value assigned to the Spanish silver coins 
in Cuba. 

(6) There will always be an advantage for United States coins, 
owing to the fact that they can be used for exi)ortation, while the Porto 
Bican can not. 

(7) If the inhabitants of the island of Porto Kico should prefer 
American currency, as it is hoped they will, the pesos will soon find 
their way to the United States Treasury and thence to the mint at 
their bullion value, and it will be easy to dispose of them gradually 
afterwards. If pesos are preferred and more asked for than should be 
in stock at our fiscal agencies, this could be met by the coinage of a 
60-cent American silver piece, equal in size, weight, and mint value to 
the existing Porto Kican peso. 

(8) Excellent authorities on Porto Uican finance do not think, how- 
ever, that this contingency is likely to occur. If at present, with a 
scanty presence of United States coins, the $5,500,000 of Porto Bican 
silver amply supply the monetary necessities of the country, may we 
not expect, as soon as the payment in United States money of all gov- 
erment officials and expenses introduces additional currency into the 
market, that there will be sufficient without the introduction of a new 
coin. It is easy to see, however, how the authority to issue such a coin 
would act as a sort of safety valve and prevent speculation in the 
Porto Rican silver peso. 

If the acceptance of the Spanish dollar in Cuba at a valuation of 60 
cents and fractional coinage at the same relative value, to be used in the 
payment of customs, taxes, and postal dues, was a wise measure to pre- 
vent the sudden deportation of silver coin from that island, why will 
not the same policy spread over several years bring the people of 



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Porto Rico down to an absolutely soond currency with less friction 
than the sudden change proposed by those who simply look at the 
eorrency side of the question? To those who ask the question^ why 
make two bites at a cherry, the answer may be given that, unlike Cuba, 
the currency of Porto Bico is very much more than a mouthful. 
With the report I have the honor to submit: 

Exhibit I. — Some data and considerations on the Porto Rico carrency qnestions, 
by H. C. Fritze, of Porto Eico. 

ExHiBrr II. — Letter to Commissioner Porter from A. M. Seixas, New York, of date 
August 24, 18d8. 

Exhibit III. — ^Letter to honorable Secretary. of the Treasury, Lyman J. Gage, on 
the currency of Porto Rico, from A. M. Seixas, New York, under date August 10, 1898. 

Exhibit IV.— -Letter to honorable Secretary of the Treasury, Lyman J. Qage, on 
the currency of Porto Rico, from P. Salazar, New« York, under date August 12, 1898. 

AU of which is respectfidly submitted. 

RoBBRT P. Porter, 
Special Commissioner for the United States 

to Cuba and Porto Rico. 
Hon. Lyman J. Gage, 

Secretary of the Treasury j Washingtouy 2>. C. 



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EXHIBIT I. 

SOME DATA AND CONSIDERATIONS ON THE POBTO EIOO OURBENOT 

QUESTION. 

Before 1879 there was almost gold only in the island of Porto Rico^ 
and silver was at a premiam. In 1879 a European syndicate of bankers 
bought all the then existing Gbovernment slave bonds, and although the 
purchase had been made for gold the syndicate was allowed to pay in 
Mexican silver dollars, and from that time the rule of silver in the 
island dates. Gold was soon at a premium and slowly disappeared. 
The foreign exchange began to advance and our Porto Kico merchants 
commenced to import Mexican silver against their bills on London and 
New York. Until the year 1885 the rates of exchange fluctuated very 
little, and did not advance over $550 for £100 — that is, over 10 percent 
premium, the par value of £1 sterling being $5. But as the gradual 
fall in the world's value of silver commenced to render the importation 
of Mexican dollars quite a profitable business^ and as the volume of the 
Mexican silver currency in the island became continually larger and was 
steadily followed by a further rise of the foreign exchange, the Spanish 
Government, with a view of maintaining all values in Porto Eico, and 
regulating the course of the rates of exchange, issued, toward the end 
of the year 1886, a decree prohibiting the further importation of Mexi- 
can dollars, thus trying to limit the volume of circulating currency to 
the then existing amount. 

As each Mexican dollar bears on one side the coinage year, only 
those dollars bearing the date of 1886 and earlier years were considered 
henceforth as legal currency, and theoretically our legal currency was, 
through the decree, made independent of the world's value of silver, 
and the rates of exchange dependent only on the law of supply and 
demand. But theoretically only, because from that date the imx)orta- 
tion of Mexican silver went on fraudulently, and importers took always 
good care to select for their fraudulent import transactions dollars of 
1886 and of earlier years. Shortly afterwards the United States of 
America adopted that famous bill to buy every month $4,500,000 of 
silver, which contributed to bring about a big advance in silver, and 
very soon it became a profitable business in Porto Rico to exi)ort Mexi- 
can dollars instead of importing them, and our rates of foreign exchange 
declined 8 to 10 per cent premium again. The island then got rid of 
the surplus ef Mexican silver currency, and when the decline in the 
value of silver came again the currency volume was relatively small. 

8 



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9 

As the fraadulent imports, which were of course then resumed, could 
only very slowly increase the said volume, our rates of foreign exchange 
were kept pretty low for some years, and chiefly depended on supply 
and demand. 

After 1891 the serious advance commenced, and from that time up to 
1895 the average level of the year rose from 10 to 12 per cent each year, 
so that toward the end of 1895 £1 was worth over $7.50 — that is to say, 
over 50 per cent premium. It must be observed, however, that the 
world's value of silver was very much lower then, almost as low as it is 
at present, so that the legally circulating old Mexican dollar in Porto 
Eico had a face value widely different from the intrinsic or bullion 
value of the dollar, which latter would have been represented more 
exactly by rates of exchange in the neighborhood of 125 per cent pre- 
mium. The Spanish Government, comprehending the impossibility of 
stopping the continuous fraudulent importation of Mexican silver and 
being desirous of impeding any further important decrease and depre- 
ciation of all property and all values in Porto Eico, then resolved to 
create a real special Porto Eico currency, and coined the actual Porto 
Eico silver dollar, ordering the exchange of the then circulating old 
Mexican silver dollar for this new currency to be effected in the last 
ten days of 1895 at the rate of 95 cents of this new special currency for 
one old legally circulating Mexican dollar. And from the 1st of Janu- 
ary, 1896, the only legal currency has been our actual special Porto 
Eico dollar (peso). This official currency change has shown that the 
volume of our currency in the island amounts to about $5,500,000. 

The rate of foreign exchange in January, 1896, was then down to 
about 48 per cent premium — that is, £1 was worth $7.40 of the new 
Porto Eico currency. As from that date no fraudulent importations 
were any longer possible (the coinage having I een limited in Spain to 
the amount required for the exchange of the currency), our rates of 
foreign exchange were then really, not only theoretic/ally, dependent on 
the law of supply and demand. The bullion value of our new dollar 
was even a little less than that of the Mexican dollar, and is very 
nearly the same as that of the United States silver dollar. The fact 
that, notwithstanding the low bullion value, a pound sterling was pur- 
chasable in Porto Eico for $7.40 of the new Porto Eico currency shows 
that the dollar had a face value and a large amount of fiat in it and 
was independent altogether of the bullion or intrinsic value of the coin, 
the same as the American silver dollar in the United States. And this 
face value was guaranteed by the commercial balance of the island. 

Porto Eico has since many years exported more than imported. The 
exports represent the supply of foreign bills, and the imports the 
demand for the same. This would mean a surplus of supply over 
demand, and as a consequence — if the exports have really been larger 
than the imports — a gradual decline in the yearly average rates of for- 
eign exchange. And still the contrary hns been the case. The expla- 



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10 

uatiou is as follows: The disturbances in Caba, assuming coutinually a 
more serious aspect, created a kind of uneasy feeling among the pro- 
prietors and capitalists of Porto Eico, and causing them to commence 
realizing on their properties and withdrawing their capital from the 
island, thus creating an extra demand for bills on Europe and the United 
States, which, added to the natural demand for the payment of the 
regular imports, not only maintained the rates of foreign exchange, but 
even advanced the same continually and steadily, so that in April, 1898, 
a pound sterling had reached the value of $8.50 of Porto Rico currency, 
or 70 per cent premium. Let it be always borne in mind that the rate 
of exchange corresponding to the bullion value of our dollar ought to 
have been about 130 per cent then, so that at the commencement of the 
war there was still an amount of fiat of about 60 per cent in our dol- 
lar, or, to put it clearer still, a Porto Rico dollar's real value was then 
still 56 cents American currency, while its bullion value was only 42 
cents American currency. 

The above has tended to explain and to prove that the bullion or 
intrinsic value of our Porto Rico currency has nothing whatever to do 
with its real commercial value, and can never be taken as a basis for 
the conversion of our currency to United States silver currency. And 
as Porto Rico has become an American country now, the currency, 
after a certain lapse of time, must become American, too, and the 
importation question arises of how the conversion of the Porto Rico cur- 
rency to United States currency has to be effected. As a matter of 
course, 1 take it for granted that the United States Grovernment, in 
this very important question, will be guided by a sentiment of justice 
and equity toward Porto Rico, and will desire to find a way and adopt 
a plan which tends to harmonize and to protect the interests of all 
concerned. 

If the whole question was reduced to convert and exchange the exist- 
ing volume of circulating currency, the difficulty would be relatively 
small. 1 have already pointed out that this only amounts to about 
$5,500,000, but it must be borne in mind that the rate which has to be 
fixed for the change of the circulating Porto Rico silver currency neces- 
sarily has to be applied to the settlement of all pending debts, too, 
because all these <lebts are contracted in Porto Rico currency, and if 
the Porto Rico currency is taken away and supplanted by American 
currency, the debtors can only pay in American .currency. And for 
this reason it comes to evidence that the question of converting the 
Porto Rico money is far more serious and effects the economic life of the 
island to a very large extent. There appear to be on the island from 
$20,000,000 to $25,000,000 of mortgage debts on real estate and land 
property, debts which have been contracted in the course of, let us say, 
the last ten years, and which extend in many instances over still many 
years to come. 

The commercial life being very active on the island, and being based 
principally on credit, even on long credit, it may be safely supposed 

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11 

tbat tbere are another $25,000,000 of pending commercial debts (per- 
haps even more), debts wbicb are not giiaranteed by mortgages, and 
which extend over one to two years. The sales are chiefly made in 
Porto Eico on from six months to twelve months time, but the payment 
is frequently extended to a much longer time, and postponed from one 
year to the other; and all these pending debts are contracted in Porto 
Eico currency, too. So it results that if the real currency volume 
amounts to about $5,500,000, the rate to be fixed for the conversion has 
to be applied to about ten times that amount in debts pending of pay- 
ment. And if a fair and just rate should not be agreed upon the 
economic position of the island may suffer to an enormous extent. 
The rate of loO per cent — that is, one dollar of United States currency 
for two dollars of Porto Rico currency — has been talked of, and has been 
really adopted by the actual military authorities in Porto Bico for 
official payments. Such a rate is simply ruinous, and can not possibly 
be thought of as fair and just. 

It is true that after the outbreak of the war the rates in Porto Rico 
went up to 125 per cent, but these rates, which ruled for the time of the 
war, wera panic or war rates, and can never be taken into consideration 
for the conversion rate to be fixed. When the war broke out nobody 
wanted to draw and everybody wanted to buy bills. Nobody knew 
what would become of Porto Rico, and money shows always more cow- 
ardice than anything else in the world. Besides, it may be safely stated 
that nothing has been sold on credit after the outbreak of the war, and 
all the existing, pending debts were contracted before; and as soon 
as it became certain that Porto Rico would be an American country 
the rates of exchange went rapidly down, and are actually at about 
70 per cent, although the coffee crop, which supplies the biggest amount 
of bills, has hardly commenced. This is the evident and best proof that 
the military rate of 100 per cent is not just and equitable, and can never 
be maintained. 

If a man had given on his lauded property five years ago, when $100 
of United States currency was worth $140 Porto Rico currency, a 
mortgage of $70,000 Porto Rico currency (representing then $50,000 
United States currency), due 1900, and he pays in 1900, at the rate of 
100 per cent, $35,000 United States currency, then the owner of the 
mortgage loses $15,000 clear money. If a merchant had imported nine 
months ago, for $100,000 United States currency, dry goods, and sold 
the same to his customers on twelve months' credit, at the then existing 
rate of 65 per cent premium, for $165,000 Porto Rico currency (leaving 
natural profits apart), and these customers pay him afterwards, at the 
rate of 100 per cent in United States currency, $82,500, then he loses 
$17,500 American currency clear money. And so I could give many 
more examples to illustrate. 

My opinion is that a fair and equitable rate of exchange for the con- 
version can only be found by taking the average rates of exchange as 



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12 

they have ruled during the last five or six years (and I take five or six 
years to harmonize the longer mortgage debts with the shorter com- 
mercial debts), and then a rate of not higher than 50 per cent is arrived 
at. If' the currency and all pending debts are converted into United 
States currency at the rate of $100 of American currency for $150 of 
Porto Rico currency, I am convinced that the economical position of 
Porto Eico and its inhabitants will suffer very little (any such evolution 
will always do some harm), and I think the interests of all concerned 
will be protected in a just and a fair mauuer. By recoiniug our Porto 
Eico dollars into United States silver dollars there will be, at 50 per 
cent, all expenses deducted, a benefit of $1,750,000 if all our dollars are 
recoined, and of about $750,000 of United States currency if the sur- 
plus is sold for its bullion value. This money should be applied to 
improving the roads in Porto Eico, which are in a deplorable state 
generally, or to other improvements on the island. 

And that the rate of 50 per cent is a fair and just one will be clearly 
seen in the course of the next few months before the conversion. The 
island owes very little, having imported little this year, and the crops 
are fairly good. There will not be much capital withdrawn^now that 
the capitalists must necessarily convince themselves that with Porto 
Eico under American rule their money is just as safe there, if not safer, 
than in Europe, and much more productive. So the rates of exchange 
are bound to decline heavily by the natural law of supply and demand, 
and if the United States lets our currency alone for three or four months 
to come I have no doubt that exchange will go down to 50 per cent, 
and perhaps to less than 50 per cent premium. 

H. 0. Fbitze, 
Of Fritze, Lundt <fc Co., Porto Rico. 

New York, October 10^ 169S. 



EXHIBIT II. 



New York, August 24^ 1898. 

Dear Sib : I have to thank you cordially for your courtesy shown 
in your esteemed favor of the 20th instant. Permit me at the same 
time to compliment you on the interest you display in the added 
territory. 

I need hardly say that the commendations of His Excellency the 
President and of the Hon. Lyman J. Gage are very gratifying. 

Inclosed please find copy of letter on the currency for Porto Eico, 
which I had addressed to the Hon. Lyman J. Gage, as I had understood 
that the conferees had determined to address to him their individual 
communications on the subject. 

It seems to me that a short historical r^sum^ of the history of the 
currency of the Island would be necessary to the full understanding of 



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13 

the canses that had led to its depreciation and to its present unsatis- 
factory condition. 

I can not help clinging to the conviction that neither a double- face 
value of the coin nor the arbitrary fixing of a premium of 75 per cent 
as against gold— just because that happened to be the average pre- 
mium of late years as against the depreciated currency — will solve the 
problem, for in either case we acknowledge and retain a depreciated 
currency. That is precisely the very evil that we want to correct. 

The methods of such correction lie at hand, and are simple and inex- 
pensive, and will, in my opinion, relieve Porto Rico at once and for all 
time of the evils of the wide fluctuation in the exchanges by endowing 
it with a stable currency, which at the same time shall cheapen the 
cost of the necessaries of life — mostly imported — to its inhabitants. 

In this connection it will be borne in mind that on the permanent 
rearrangement of the Porto Rico customs tariff fully three-quarters of 
the trade of the island will be done with the United States. Hence 
the importance of the same kind of currency as our own, interchange- 
able like ours with any of its three kinds, becomes double, almost of 
the greatest. Such, in my humble opinion, would be the effect of the 
plan which I have advocated in the inclosed copy of letter to the hon- 
orable Secretary of the Treasury. 

It is quite true that the principal individual holder,^f necessity as 
a reserve for its banking operations, etc., — of the Porto Rico provincial 
(silver) peso, is the Spanish Bank of St. Johns, Porto Rico, which by 
the conversion would be greatly benefited. But no measure of law is 
I>erfect in this world, and legislation has for its objective end the 
greatest good to the greatest number. 

The sugar industry in the island, although not the most important, 
that being the coffee industry, yet is the one that employs the greatest 
number of hands. The field hand on the sugar estate gets 50 cents 
(Porto Rico silver) i)er day; the laborer in the factory — sugar factory — 
all the way up to $1 (Porto Rico silver) per day, according to ^is labor, 
skill. ISTow it is most improbable that such laborer and such field 
hand will get any less units in American money, if the conversion shall 
take place, in payment of his labor, especially when by reason of the 
new and far better conditions than of old his labor will be more sought, 
better employed, and better paid, resulting in greater industrial activity 
and greater jirosperity than ever before. Therefore American money 
and the American silver dollar will be the one current, and I say, — 
although I am a confirmed "goldbug," — will of necessity be of great 
benefit to labor. 

As to the planter, whatever he gets for his ])roducts is in a depreci- 
ated currency now, besides being subjected to fluctuations in the 
exchanges of as much as 25 per cent, say 25 xH)ints, and even 30 points, 
whereas on the basis of our American money he would get absolute 
value for his produce, absolute value also, interchangeable at but a 
firactional loss in any of the world's moneys, and both planter and 

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14 

laborer will be vastly benefited iu the futare cUeapening of all tlieir 
supplies as soon as the new permanent customs tarifif with the United 
States — ^if any tariff there shall be— goes into effect. 

Now, I venture to inquire, what plan can be simpler and of greater 
benefit and more inexpensive than the one which 1 have made free to 
suggest in the inclosed copy? 

Very likely custom-house duties here on Porto Rico sugars may be 
considerably lowered, if not altogether abolished, and the planter would 
thus be benefited in every possible way, and he could not have any 
possible cause for complaint. 

I remain, very truly, yours, A. M. Seixas, 

SO Wall Street, New York. 
Hon. Robert P. Porter, 

160 Broadway, New York City, 



EXHIBIT III. 

August 10, 1898. 

Sir : At an informal conference held yesterday between Mr. Robert 
P. Porter and merchants representing 80 per cent of the export trade 
with the island of Porto Eico, Mr. Porter, who had come with instruc- 
tions from His Excellency the President, desired to learn our views 
concerniug a temporary tariff and a currency for that island, in order 
to lay those views before the President. 

Our views as to a temporary tariff are embodied in a communication 
handed to Mr. Porter, while those relating to the currency it was 
decided by the conferees should be presented to you in individual com- 
munications, to be communicated to His Excellency the President. 

About twenty-five years ago United States gold coin and Spanish 
gold coin were plentiful in Porto Rico, and the rate of exchange on New 
York rarely rose above 5 per cent premium between crops' time. 

When slavery was by Spanish law abolished in the island, to the 
French Sjmdicate making the loan toward indemnifying the planters 
was granted the privilege of making the advances in imported Mexican 
dollars (silver). All the gold then began to leave the island, and soon 
none was left in it, and the exchanges commanded ever higher rates. 

A few years ago Spain determined to endow Porto Rico with a cur- 
rency, with the double end iu view of checking the alarming rise in the 
exchanges and of putting an end to the fraudulent importations of 
Mexican dollars. In pursuance of this plan she retired the Mexican 
dollars (the further importation of which she prohibited), and in lieu 
thereof substituted a coin of intrinsically less value and stamped with 
a special stamp — on one side the Spanish escutcheon surrounded with 
the legend, "Isla de Puerto Rico, 1 pe.'^ot— 5 pesetas," thus barring this 
provincial money from circulation in the mother country, and taking an 
additional step toward the alienation of the colony from her. 

As the value of silver in the markets of the world remained depressed 



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15 

the device brought oo relief, and the exchanges rose still further, atteuded 
by wide fluctnatioDs, the highest, that on New York, reaching a pre- 
mium of 85 per cent. ' I do not mention the interval of this war, when 
it went as high as 125 per cent premium, owing to <' war scare," etc. 

We are thus confronted with about four millions provincial Porto liico 
(silver) pesos, about which something must be done in the new relations 
which, happily for Porto Rico, will now exist between it and the United 
States. 

One of our conferees suggested a double-valueface dollar for the 
island (50 cents gold and 100 cents Porto Rico). 

This idea seemed to me to involve the objectionable and embarrassing 
feature of establishing by this Government for one of its Territories or 
States, — as may be, — a ratio between the two metals, while, on the con- 
trary, the aim should be to establish there immediately exactly the 
same forms of money current in our own country, guided by the prin- 
ciple, "One tiag, one currency.'' 

On my part I ventured to suggest as the simplest, least perturbing, 
least costly, and at once leading to the equal interchange of our three 
forms of currency, the, plan of giving to Porto Rico our own American 
(silver) dollar in exchange for their provincial (silver) peso, the differ- 
ence in cost and the expense to be charged to the island, to be paid by 
it in a certain number of years (yearly installments) with the interest 
added. 

The intrinsic value of the (silver) peso is about 41 cents. The differ- 
ence in cost, and the expense, therefore, of the retirement and substitu- 
tion, is a relatively small matter, which Porto Rico can well afford to 
pay, without doubt will gladly pay, for a stable currency that will 
relieve her from the evils and losses incident to wide fluctuations in 
the exchanges, of which she has been the victim for so many years. 

It is to be borne in mind that whichever the new currency may be 
that is introduced into Porto Rico, she will inevitably have to pay for 
such an exchange, provided said currency is better and confers greater 
benefits than her old currency. 

In this connection it may not be amiss to quote the following trans- 
lated paragraph from a letter dated 3l8t of last month, of one of my 
correspondents at Ponce, Porto Rico, which reflects correctly the feeling 
prevalent throught the whole island : 

In order to think immediately of what business coald be done, it is necesHary that 
OUT new Government decided something in respect of the exchanging of the money, 
that is to say, that it in necessary to decide upon something in the economic condi- 
tions of this country to the end that we may know in what fonn (en que forma) we 
may continue to work. 

1 have the honor to be, your obedient servant, 

A. M. Setxas, 

80 Wall Street. 
Hon. Lyman J. Gage, 

Secretary of the Treasury, Washington^ I). C, 

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16 



EXHIBIT IV. 

New York, August 12^ 1898. 

Sir : At the request of Mr. Eobert P. Porter, I have given due con- 
sideration to tbe matter of the Porto Rico currency question and, as 
requested by him, I beg leave to present to you the following consider- 
tious: 

The solution of this problem seems rather difficult because of the 
opposite interests involved in the matter and the natural desire of the 
Administration to find an equitable settlement to the satisfaction of all 
concerned. In a country like Porto Rico, where the basis of all busi- 
ness has leaned upon long credits in connection with both foreign and 
local transactions, especially the latter, the problem offers more than 
one aspect to the consideration of those called upon to solve it. 

I advocate a radical change in the currency of the country, by the 
immediate exchange of the provincial peso and its fractions for the 
currency of the United States, on the basis of the average rate of 
exchange that has ruled in Porto Rico for drafts on the United States 
for the last five years, say 75 per cent, as a premium on American 
gold. The measure will certainly meet the approval of the holders of 
specie who at any time have been disposed to invest their savings at 
the said rate of exchange, which in fact is more than what the specie 
is worth intrinsically. The loss which the United States Government 
would have to bear by the transaction, taking up a coin which is worth 
about 38 cents for 57.20, can be charged to the general budget of the 
Island in four installments at the rate of 25 per cent each year. I 
estimate the amount of specie actually in circulation not to exceed 
five millions in round numbers, the bulk of it, perhaps as much as two- 
thirds, in the hands of the Banco Espanol, a sort of government bank, 
that holds the deposits of the native Spaniards, thus leaving a small 
portion scattered among the private mercantile institutions and the 
poorer class of the people. The latter will certainly entertain little 
fear of making any loss by the exchange, as, speaking in general, the 
Porto Rico laborer has little savings or perhaps none at all. 

The savings banks in the island are reduced to three — at San Juan, 
Ponce, and Mayaguez — and what deposits they may have will chiefly 
belong to the private merchants and planters and so-called local 
bankers. Even if this measure should inflict some nominal loss on the 
poorer classes, they are wise enough to understand that the loss is 
practically offset by the fact that they could buy the necessaries of life 
so much cheaper. Before closing this item I would further suggest, 
in order to save the island from the burden that the loss in the opera- 
tion would impose upon the Treasury of the United States and con- 
sequently upon the Porto Rico people in case the United States 
Government should be called by virtue of the impending negotiations 
of peace to defray certain sums which eventually may go to the hands 



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17 

of the Spanish Govemmeut or the Spaiiiah people, that the Porto Rico 
provincial pesos should be paid back to them at their face value. 

I desire to mention as briefly as possible that the Spanish Govern- 
ment exchanged in 1895 the previous currency of the country, Mexican 
silver, by giving the holder of every $100 ninety-five of the new issue, 
which, as is well known, is of a lower value than the Mexican dollar. 
The Spanish Government promised to indemnify the holders of specie 
of this ^oss by sending to the Porto Rico treasury whatever profits 
the Central Government might derive from the operation. This was 
only done in part, by remitting to the Porto Rico treasury $500,000 in 
gold, which, however, were soon sent to the mother country as a gift 
from Porto Rico to build a war ship to be named Porto Rico, which, 
however, never appeared on the surface of the seas. I firmly believe 
that Spain has still a chance to use this little specie to some advantage, 
owing to the distress of her treasury, in spite of her arbitrary disposi- 
tion prohibiting the circulation of that currency outside of Porto Rico. 

The next important step which naturally comes up with the exchange 
of the specie is the settlement of all debts contracted before the new 
currency comes into circulation. In my opinion they should be reduced 
in the same proportion as the specie, thus allowing the debtor to pay 
$100 United States gold for $175 of his standing debt. That this can 
be worked with no inconvenience and with little loss to anyone is obvi- 
ous. The sugar planter and the coffee grower who has borrowed money 
of the merchant or banker to run his plantation will have to suffer by 
the adoption of the gold standard which brings down the nominal 
price of his product; but this is compensated for by the reduction of 
his debt in the same proportion. The merchant or banker who gener- 
ally deals with foreign countries on the basis of gold loses nothing by 
receiving $100 gold instead of 175 pesos, as this difference was already 
charged to the planter when the merchant sold the goods, and if the 
creditor is a banker he would not be better oft if he had the cash in 
hand. 

The only dark spot in the whole matter is the sugar planter, owing 
to the low price at which he would be compelled to sell his product if 
the gold standard is finally established, as on account of the inade- 
quate machinery, the lack of proper means to irrigate the most fertile 
zone of the island, and above all .due to the enormous and unequal 
taxes that this industry has had to bear in relation to other industries, 
•the result is that the actual owners of sugar plantations have only 
been able to carry on the works regularly because of the depreciated 
currency that gives them the benefit of the exchange. The United 
States Government will certainly not allow its newly acquired territory 
to run the same hard luck of the English West Indies, where the sugar 
problem has become a question of to be or not to be. I believe that in 
the natural course of events Porto Rico sugars will ultimately be 
admitted free of duty into the United States, but in the meantime I 
11286 2 

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18 

woald saggest that some measure shoald be devised to protect the 
interests of the sugar planter, who will surely receive a heavy blow if 
the currency problem be solved in the way above recommended. 

As an illustration, I would add that the actual production of sugar 
in Porto Rico is about 50,000 tons, and that with the natural impulse 
that American enterprise will develop this important business the 
production will never exceed 150,000 to 200,000 tons. Finally, I recom- 
mend that the funds to take up the present currency of the island 
should be sent there as follows: 70 per cent in gold and greenbacks, 
15 per cent in silver one-half and one-quarter dollars, 5 per cent 
in dimes, 5 per cent in nickles or half dimes, and 5 per cent in 1-cent 
pieces. 

Respectfully, yours, 

P. Salazab, 
Of A. 8, Ldscelles tC* Co., Coffee Exchange, New ForA*. 
Hon. Lymaj^ J. Gage, 

Secretary of the Treasury, Washington, D. C. 



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ExECUTiVB Mansion, January 20^ 1899. 
It is hereby ordered that on and after February 1, 1899, and until 
otherwise provided, all customs, taxes, public and postal dues in the 
island of Porto Eico shall be paid in United States money, or in foreign 
gold coins, such as the Spanish alphonsinos (centen) and the French 
louis, which will be accepted in payment of such customs, taxes, public 
and i)ostal dues, at the following rates : 

Alphonsinos (25-pe8eta piece) $4. 82 

Lonis (20- franc piece) 3. 86 

It is further ordered, that on and after February 1, 1899, and until 
further provided, the following Porto Eicau or Spanish silver coins now 
in circulation in the island of Porto Eico shall be received for customs, 
taxes, poblic and postal dues, at the following fixed rates in United 
States money: 

The peso $0.60 

The medio peso 3C 

The peseta 12 

The real 06 

The medio real 03 

It is further ordered and directed that out of the Porto Eican coins 
so received a convenient supply shall be retained and carried for 
exchange for United States money at the rates hereinbefore enumer- 
ated, namely, $0.60 United States money for one Porto Eican silver 
piece. 

It is further ordered that all existing contracts for the payment of 
money in the currency of Porto Eico may be discharged and paid in 
that money in accordance with the contracts, or in United States 
money at the relative value set forth in the above table, namely, for 
each $100 United States currency 166§ Porto Eican pesos. 

Bronze and copper coins now current in the island of Porto Eico will 
be received at their face value for fractional parts of a dollar, in a single 
payment to an amount not exceeding 12 cents (1 peseta). 

William McKinley. 

19 

O 



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U.S. C uba. a.v\A "Povto T^ \ CO s^ecval covviVY\\'^*\ov»er 

REPORT AND RECOMMENDATIONS 



ON THE 



CUSTOMS TAEIFF 



OF THE 



ISLAND OF PORTO RICO. 



BY 



ROBERT P. PORTER, 



SPECIAL COMMISSIONER FOR THE UNITED STATES TO CUBA 
AND PORTO RICO. 



RESPECTFULLY SUBMITTED TO 

HON. LYMAN J. GAGE, 

SeCKSTART of the TREASURY; 

Washington, D. C. 
JAJS-U^RY 19, 1899. 



WASHINGTON: 

QOVERNHBNT PEINTINa OFFIOB. 
1899. 

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Trbasurt Depabtmbnt. 

Dooumeiit No, £084. 

Division of Custobis. 



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REPORT AND RECOMMENDATIONS ON THE CUSTOMS TARIFF OF 
THE ISLAND OF PORTO RICO. 



Tbeasuby Depabtment, 
Office of Spboial Gohmissioneb fob the 
United States to Cuba and Pobto Eico, 

January 19y 1899. 

SiB: In accordance with yonr instractions, I have the honor to sub- 
mit the following report and recommendations in relation to the cus- 
toms tariff of the island of Porto Bico: 

In adopting a tariff for Porto Bico last August the United States 
Government was obliged to put in force the minimum tariff which Spain 
exacted on foreign goods imported into that island, and not, as in the 
case of Cuba, the tariff which Spain had framed for goods imported into 
Porto Bico from Spain. The latter tariff was so low (practically free 
U*ade with Spain) that no other course appeared to be open but to adopt 
the aforesaid tariff, though the Department and your commissioner 
were well aware that many of the rates of duty would prove onerous. 

As a temporary measure of relief, however, the honorable Secretary 
of the Treasury wisely decided to collect the Porto Bican customs 
duties in the silver coins of that country, accepting one Americau dollar 
for two Porto Bican dollars. This action on the part of the Govern- 
ment praotically reduced the duties one-hall^ when compared with the 
rates of duty established by the Government in Cuban ports in posses- 
aiott of Uie United States, which were collected in United States money. 
Even this substantial reduction did not equalize the two tariffs. 

Your commissioner has made two reports to the Department on tliis 
suli^eot, one dated August 10, 1898* (memorial of Porto Bican mer- 
chants), and the other September 3, 1898.t In these reports the ine- 
qualities between the Cuban and Porto Bican tariffs were pointed out 
and temporary relief demanded. This relief was, in a measure, given 
as above stated. The time has now come, however, when the work of 
revision of the Porto Bican tariff can be more intelligently done, and 
an effort has been made to base the two measures — the Cuban and Porto 
Bican tariffs— on the same general principles, only differing in such 
pi^culars as local conditions would seem to demand. The material 
for making these specific changes has been gathered by the special 
commissioner to Porto Bico, Dr. Henry K. Carroll. The changes in 

* See page 51. t See page 48. 

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rates have been based apon the needs of the government of Porto 
Bioo, as hereinafter explained. In addition to the data thns collected 
by Dr. OarroU, a large number of interesting statements have been 
made direct to the Department and to your commissioner. 

It will be extremely gratifying, both to the President and yourself, to 
know that the manufacturers and merchants and labor interests of the 
island of Porto Bico entered earnestly into the work undertaken. 
Important and representative meetings were held in Ponce, and com- 
mittees appointed representing all the principal industries and trades. 
In fact it may be said without exaggeration that the people of Porto 
Bico cooperated as fully and completely in this work of tariff revision 
as our own people do in similar work in t)ie United States. 

The several schedules have been examined and discussed and changes 
recommended with a view of forwarding the general welfare of the 
island. The reports thus made by the native population are submitted 
as part of Dr. Carroll's report, published under separate cover. They 
give a more complete idea of the real wants of the population and 
gauge with a greater degree of accuracy the capacity of these people 
for self-government or statehood than any words of a commissioner, no 
matter how much experience he may have brought to the work. 

All of these data have been carefully sifted in conjunction with 
Assistant Secretary of the Treasury William B. Howell, and as a result 
the conclusion has been reached that the adoption of the Cuban classi- 
fication with certain modifications and a general reduction below the 
Cuban rates, made necessary by the differing conditions in the two 
islands, will not only be a great relief to the people of Porto Bico, but 
substantially meet all the demands made in the several i>etitions and 
memorials of the commerciM and manufacturing interests of the 
island. The advantage of similarity in administration will be recog- 
nized by the Department, and for that reason it has been the aim of 
those who have undertaken the work to adopt wherever posrible not 
only the same administrative features, but the same classification, for 
both islands. In all instances where the reverse is true a reason for 
the difference may be found either in Dr. Carroll's report, in the spe- 
cific references to the general schedules, or in the statements submitted 
and printed in the appendix. 

In the following table a comparison is made between the tariff rates 
of fifty selected items, established by the orders of the President, for 
Cuba August 8, 1898, and for Porto Bico August 19, 1898. This com- 
parison is made for the purpose of showing the difference in the rates 
of duty now levied in ports of Cuba and Porto Bico in possession of the 
United States before the promulgation of the amended Cuban tariff Jan- 
uary 1, 1899. The difference, however, is more apparent than real, 
because tbe duties in Porto Kico are payable, as we have seen, in sil- 



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yer — two Porto Bican pesos counting as one United States dollar. For 
comparative purposes, therefore, the amount of duty should be cut in 
two, as the Cuban tariff is payable in United States currency. 

Thus the duty on flour entering Cuba is $1.50 per 100 kilos United 
States currency and on flour entering Porto Kico $4 x>er 100 kilos Porto 
Bican carrency. As one United States dollar was accepted by the 
authorities as an equivalent to two Porto Bican dollars, the tariff in 
United States currency in one case is $2 and the other $1.50. The 
amended tariff herewith submitted makes the duty on flour imported 
into Porto Bico tl. United States money, per 100 kilos, while the 
increase in the exchangeable value of the Porto Bican pesos to sixty 
cents makes it possible to pay that American dollar with 1.67 pesos 
instead of 2 pesos as heretofore. For exact difference in rates of duty 
between Ouba and Porto Bico, note the last column, in which the rates 
of all items included in the table of comparison are reduced to United 
States equivalents. 



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8 

From the above it will be seen that there were thirty-two oat of fifty 
articles selected which bore a higher rate of duty in the Porto Bican 
tariff than in the Gnban tariff of Augast, 1898. These articles are as 
follows: Glass, etc.; screws, nuts, nails, etc.; tin plate, manafactores 
of; needles, sewing, etc.; copper, wire gauze; spirits of turpentine; wax, 
stearin, etc.; gunpowder, explosive compounds, etc.; starch, etc.; com- 
mon soap; bristles, hair, and horsehair; silk and floss silk, spun, etc.; 
silk on reels; paper, printing and writing; paper, endless; paper, wall, 
on natural ground; paper, wall, on dull or glazed ground; cork, rough, 
etc.; cork, manuflEM^tured; pianos, grand; pianos, other; coaches, etc., 
with 4 seats; coaches, etc., with 2 seats; coaches, four or two wheeled; 
flour, wheat; flour of other cereals; alcohol and brandy, beer in casks, 
beer in bottles; buttons of all kinds; oilcloth, for floors, etc; umbrellas, 
covered with silk; hats, finished, trimmed, etc. 

The amended Guban tariff, which went into force January 1, 1899, 
changed some of these rates. There were, however, still remaining 
several discrepancies, and the aim has been to eliminate th^n all in the 
amended tariff herewith proposed in Porto Eico. 

OUBRBNOY OP POBTO BIOO. 



In adopting and modifying the Guban tariff for Porto Bico another 
complication had to be provided for in consequence of the Executive 
order accepting the Porto Bican silver dollar in payment of customs 
and other public dues at 60 cents United States money, instead of 50 
cents. The effect of this order will be to reduce all duties paid in 
Porto Bican money. For example, a Porto Bican importer, under the 
present tariff, has to pay 200 pesos in order to liquidate tlOO in United 
States money. Under the new order in relation to currency, accepting 
the Porto Bican coin at 60 cents, it will only cost him 166§ pesos, a 
saving of 33^ pesos, or Porto Bican dollars, or 16§ x>er cent. 

Therefore, to collect the customs tariff in pesos at the rate of 60 cents 
United States money would make a horizontal reduction of 16g per 
cent in the amount of revenue paid in pesos. A single illustration will 
serve to make this clear, and for that purpose attention is called to 
group 12, cereals. 



274. Rice, hosked or not . 

275. Wheat 

276. Cereals: 

(a) Com 

(b) Rye 

(c) Barley 

(d) Oats 

277. Flour: 

(a) Of wheat 

(6) Of rice 

(c) Of com 

(d) Of oata 



Proposed 

rate. 

United 

States 

money. 



$0.60 
.60 

.18 
.24 
.80 
.24 

1.00 
1.00 
.30 
.72 



Porto Rican dollars, 
or pesos. 



Present Value 

yalae hereafter 

100 to 50 100 to 00 
oenta. cents. 



$1.20 
1.20 



.48 ' 
.60 

.48 ; 

2.00 

2,00 

.60 

1.44 

L 



$1.00 
1.00 



.50 
.40 

1.67 

1.67 

.50 

1.20 



In other words, instead of paying two Porto Eican dollars on a bar- 
rel of floor dutiable at $1 United States money, the importer will be 
able to liqnidate for 1.67 pesos, and so on through all the schedules. 
This will not cut much figure with the Americans doing business with 
the island, because all their transactions are figured out in United 
States money. It will, however, relieve the laborer, who for a time is 
bound to find it more difficult to live* in a silver country on $25 per 
month gold than on $50 per month silver. 

0J.ASSIFI0ATION AND BBVBNUB. 

The classification of the Porto Bican tariff is similar to that of the 
Cuban. There are thirteen schedules, with various groups under 
each. The amended tariff will contain fifteen schedules, as Class 
XIV, tobacco, and XY, articles not enumerated or provided for, have 
been added. The following table shows, for the year 1897, the value 
of the importations under the several schedules, the duties collected, 
and the average percentage of duty for each schedule: 



Sohed- 
ale8. 



I 

n 
m 
rv 

V 
VI 

vn 
viu 

IX 

X 

XI 

xu 

XIU 



Articles. 



Value. 



Dntiea col- 
lected. 



StoDes. earths, niineraln, etc 

Metals, and manafaotares uf 

Sabstanoee emploved in pharmacy, etc 

Cotton, and manoiaotnres of 

Hemp, flax, aloe, jute, and manufactures of.. 

Wool, and man nf aotores of 

Silk, and mannfaotiires of 

Paper and its applications 

Wood and other vegetable materials 

Animals and animal products 

Machinery, instruments, etc 

Alimentary substances 

Miscellaneous 

Special Imports 



Petos. 
891,824.86 
676,747.68 
651,947.78 

2,540,293.87 
612,004.46 
128,461.25 
50,581.84 
868. 211. 56 
818,952.71 

1,196,877.89 
401, 156. 76 

8,984,808.41 
189,567.83 
648,044.00 



Total : I 17,868,063.29 



Pmos. 
69, 772. 91 

124,431.13 
66,696.36 

180.725.86 
66.389.01 
12, 661. 16 
6,871.64 
22,449.92 
78, 176. 26 
28, 046. 46 
85.739.06 
1,750,866.64 
27, 185. 98 
12,960.88 



, Average 
percent- 
age dnt7 
for each 
schedule. 



10 
18 
10 

7 
13 
10 
12 

6 
10 

2 

9 
20 
14 

2 



2.481,962.57 



14 



The schedules most productive of revenue are, in order of amounts 
of revenue, those relating to alimentary substances; cotton, and manu- 
factures of, and of metal, and manufactures of. These three produce 
82 per cent of the entire revenue, the alimentary schedule alone pro- 
ducing 1,750,856.54 pesos, or 71 per cent of the entire revenue of the. 
island. Those who have had experience in the revision of customs 
tiuriffs will therefore realize the difficulty of the task of cutting down 
the rates of duty on articles of general consumption and at the same 
time of retaining sufficient revenue to defray the expenses of the gov- 
ernment of Porto Rico. In many instances both Secretary Howell 
and your commissioner would have gladly reduced the duties in the 
schedule below the rates finally agreed upon had it not been for the 
fact that this one schedule furnished three-quarters of the revenue. 

The above shows that the tariff in force in Porto Rico until the 
United States took possession of the island last summer was purely a 



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^iV 



10 

revviuie mMMQMy Hk^ total •urant of dvity coUeoted avctagiag wbmt 
M per coBifc on the Talnieof mitttkafEdifl^ impoitecL The above ¥aloe% 
baih aA te impmeiaM^m and dntiea ooHeeted, ane giveA in attrar^ and 
tieeaflwa) imdeF axiatiag eonditieM, two aflrrer Fosto Bicaa pesaa fciv 
ona Uaited Slatea dallav ohm* ba dmded in order to» expvaaa tiM. 
amonntft m United Statea menqr. If the same amomnt of ravaiiae ia 
required ia Bovto Bioan peaoa^ aad: the axpevta are likefy to fce^ m^ 
to the 1897 standard, the Hacal proUeai eonftonling the Tieasavjr 
Department in Porto Bico is briefly this: Probable total valae of dutia- 
ble imports, 17,8389063.29 pesos, or $»fi^%j09kM; total revenue to be 
oollected, 2,481,963.57 pesos^ or $1,240,981.^8. 

Discarding the money question, which, after all, in this case is a 
purely Porto BicaiU matter, the simple problem is an importatioa of 
about $10,000,000 United States money and a needed revenue oif 
tl,500,000 United States money. The aim should be to distribute this 
revenue in such a manner that the burden will bear light^t on the 
commodities of general consumption and heaviest on articles of luxury 
and merchandise consumed by those best able to pay. The recom- 
mendations made by Dr. Oarroll and printed in his report, in fiivor of 
ad<^>ting for Porto Bico certain schedules of the amended Ouban tariff 
evidently do not take into consideration the fact that the pesos, in 
which. the rates are expressed in the Porto Bican tari£[^ only represent 
50 cents of the dollar in which the rates are expressed in the Gmban 
tariC The. aim in framing the Cuban tariff was to secure a revenue 
representiBg about 25 per oent ad valorem of the imports. The aim has 
been in the Porto Bican tariff to secure a revenue representing about 
15 per cent ad valorem. Unfortunately, the present Porto Biean ti^riS 
lenders no assistance* It has only been in fbree for six meoths, and 
t}he currem^ complication, already explained, makes it appear much 
lligher than it really is when figured out in United States currency. 
The present revision has been made with a view of securing a customs 
revenue of about 15 per cent ad valorem on all the imports. 

CUBAN Aim FOBTO BIOAN BBVBirUB. 

The yalue of the importatioiis of n^erehandise into Ouba the last 
iiannajl year (189$) was $61,443,334.65 and the total revmue collepte4 
thereon $149587,926.57, or an average of nearly 24 per cent ad valorem. 
On the Qther haad^ the total value of imjported merchandise for Poi*ta 
Bloo ioi 1897, which, so far as that island is concerned, was a normal 
year, was 17,858,063.29 pesos and the duties collected 2,^481,962.57 
pesos, or an average of about 14 per cent. The basis in the case of 
Ouba was practically gold^ and Forto Bico silver, but that minces no 
diffierence in the relation of the tariff of one country to the other. 
Speaking roundly, the Cuban tariff yielded about 24 per cent mi the 
Porto Bico, aay, about 15 per cent. 

It would be manifestly m^ust to Porto Bico to i4opt and put In foxoe 
the amended Oubau tariff because it is believed the. Ouban reveima 

uigiiizea oy vjv/^/p^i\^ 



11 

iHU aMOttftt to abottt ^ pcv eeot <rf tbi» kvpovts^ whifo a 1& pet oeiA 
ad vatorcni^ tlariffy asaoBiiftg tiMt ttie impMrta k€ep op to tlK)aa of 1809, 
i«IH yield salBdieiif i^vemie for Ibe go^omiiMiital needs of P<m^ Bieo. 
Hie neeessitfes and wants ef tbe two ce«Btrle« are rodieally different. 
Porto Bioeliag not been devastated by war, ner wiH it reqmirei a hurife 
UniteA States army to keep order. There are no armed insurgents 
deman^ng miOione for pa^^ment of military service to be okarged vp 
to the customs receipts. For tliese and other reasons which need not 
be emunerated, the amended tariff for Porto Bico has been framed on 
a revenne-yiehling basis of 15 per cent instead of 24 pereent, as in the 
ease of the amended tariff of Cuba. By this it must not be initerred 
ttiat all the schedules will be nnifbrmly 15 per cent. 

The schedules relating to wool, and mann&ctnres of; silk, and maao- 
factures of; musical instruments and watches; have been increased to 
25 per cent ad valorem. The rates of duty of tbe liquor schedule will 
e](ceed 25 per cent, and is practically the same as the amended Gubain 
schedule. An endeavor has been made to keep cotton, and manufac- 
tures of, below 15 per cent, only the finer grades at the higher rate, 
and all the coarser goods of general consumption have been placed at 10 
per cent ad valorem. The machinery to be used in extending transpor- 
tation and advancing the industries of the island has been put at 15 
per cent or its equivalent. About 18 per cent ad valorem has hereto- 
fore been collected on the imports of the metal schedule, and it is prob- 
able that the proposed rates will keep within this proportion. 

Here and there a few changes have been made, as will be seen by ref- 
erenoe to the several schedules which follow, but the changes have all 
been dictated by the desire to make the revenue tariff less burdensome 
on articles of food than on articles which are consumed by those better 
able to pay. The general result wiU be a tariff not dissimilar to that 
of Jamaica, which averages about 19^ per cent duty, but which is now 
undergoing revision by a commiflsion, and which tariff, your commis- 
sioner was informed in Kiugston, will probably average after the revi- 
8h>n is completed about 16J per cent. 

8PAJ9XBH DKKWlMINATiOll hetAJOmt TUB UfOTSD flKTATSS. 

As has been said, the revenue producing schedule in the I^ortp 
mean tariff, as in the Guban tariff, is that relating to provisions. The 
Spanusb policy seems to have been 7 x>er cent for manufactures of 
cotton, 12 per cent for manufactures of silk, 10 per cent for manu£Eic- 
tures of wood, 9 per cent for machinery, 2 per cent for special imports, 
but 20 per cent on alimentary substances. There would seem to be 
two reasons for this, the first being that the people in a climate like 
Porto Uico can do without almost anything but food; the second that, 
as most of the food products were imported into Porto Bico from the 
United States, Spain herself took little interest in the rates of duty. 

Indeed, of the total amount of duties paid as above, nearly (950,000 
were paid by the United States, largely on food products. In making 

uigiiizea oy -K^K^y^^iy^ 



12 

up the Porto Bico tariff Spain arranged the schedules so adroitly in 
favor of her own interests that between the goods placed at a high rate 
of daty coming from countries other than Spain, and the commodities 
placed at a low rate of duty, or on the free list, when imported into 
Porto Bico from Spain, she almost escaped the payment of duty. The 
following table, from Dr. Carroll's report, shows the duties paid by the 
various countries in amounts exceeding $10,000 Porto Bican currency: 



Country. 



United States 

Germany 

English Indies 

England 

English possessions 
Spun 



Amonnt. 



$945,677.88 
431,507.02 
352,023.08 
299,477:90 
106,070.92 
106. 943. 14 



Uoontry. 



France. . . . 
Denmark . 
Belgium . . 
HoUand .. 
Argentina 
Cuba 



Amount. 



$54,000.68 
43,081.22 
41,663.71 
40,566.58 
12,480.49 
10,624.47 



Spain, according to Dr. Carroll, furnished oyer 40 per cent in value 
of the imports, and paid less than 4 per cent of the customs collected; 
the United States furnished 21 per cent of the value of the imports, and 
paid 38 per cent of the customs collected. As Spanish imports now 
pay duties at the same rates as those from other countries, an increase 
of revenue may fairly be expected in the schedules which Spain reserved 
for herself. If the amount of this increase could be estimated it would 
be possible to considerably reduce the rates of duty on food stuffs, but 
to do so without knowing exactly the amount of revenue it may be pos- 
sible to obtain from the other schedules would be a dangerous exx>eri- 
ment. An estimate has been made, and may be found in Dr. GarrolFs 
report, to the effect that the difference between the sums which Spain 
paid in 1897 and that which she would pay now is the difference between 
$106,943 and $1,788,000, on the basis of the duties paid by imports 
from the United States, or $1,681,057. It is also believed that the 
present Porto Bico tariff, if allowed to remain, would produce an excess 
of revenue. On the other hand it is believed the rates herewith recom. 
mended will produce sofflcient revenue to honestly and economically 
administer the affairs of the island. 

The interesting report on the customs tariff of Porto Bico, made by 
Dr. Henry K. Carroll, together with the testimony taken in Porto Rico 
and the reports made by the several ti'ade organizations, have been 
printed under separate cover, and, together with this report and sched- 
ules, herewith submitted, form a complete statement of the facts upon 
which these recommendations are based. 

All of which are respectfolly submitted. 

BoBEBT P. Porter, 
Special Commissioner for the United States 

to Cuba and Porto Rico. 

Hon. Lyman J. Gage, 

Secretary of the Treasury^ Washington^ D. C, 



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^MEISTDED 

CUSTOMS TARIFF MD REGULATIONS 



FOR 



PORTS IN PORTO RICO. 



18 



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MONEY RECEIVABLE FOR CUSTOMS, ETC. 



ExBOUTiYB Mansion, Jemuary 20^ 1899. 
It is hereby ordered that on and after February 1, 1899, and nntil 
otherwise provided, all customs, taxes, public and postal dues in the 
island of Porto Eico shall be paid in United States money, or in foreign 
gold coins, such as the Spanish alphonsiuos (centen) and the French 
louis, which will be accepted in payment of such customs, taxes, public 
and postal dues, at the following rates: 

AlpboitsiiiOB (25-p«BetA pieoe) $4.82 

LooiB (2a-franc pieoe) 3.86 

It is further ordered that on and trfter February 1, 1899, and until 
further provided, the following Porto Bican or Spanish silver coins now 
in droulation in the island of Porto Eico shall be received for customs, 
taxes, public and postal dues, at the following fixed rates in United 
States money: 

The peso $0.60 

The medio peso 30 

The peseta *... .12 

The real 06 

The medio real 03 

It is further ordered and directed that out of the Porto Eicau coins 
so received a convenient supply shall be retained and carried for 
exchange for United States money at the rate hereinbefore enumerated, 
namely, $0.60 United States money for one Porto Eican silver peso. 

It is further ordered that all existing contracts for the payment of 
money in the currency of Porto Eico may be discharged and paid in 
that money in accordance with the contracts, or in United States money 
at the relative value set forth in the above table, namely, for each $100 
United States currency, 1668 Porto Eican pesos. 

Bronze and copx>er coins now current in the island of Porto Eico will 
be received at their face value for fractional parts of a dollar, in a single 
payment to an amount not exceeding 12 cents (1 peseta). 

William MoKinlby. 

15 



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ABBREVIATIONS EMPLOYED IN THE TARIFF. 



Disp. = General dispoeition. 

G. W. = Giiwe weight. 

N.W.= Net weight. 

G. W. ; T. = Gross weight or tare, as the 

case may be. 
T.=Tare. 



S.T.==Speoialtare. 
EiL = Kilograms. 
Kilog. = Kilogram. 
Heotog. =: Hectogram. 
HectoL = Hectoliter, 



The metrical system of weights and measores is in use in Porto Bioo. 
Importations from the United States are dutiable like other commodities. 
16 



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IMPORT RATES OF DUTY. 



Class I.~Stonbs, bakths^ ores^ glass, and ceramic products. 
Group 1. — Stones and earths employed in buildiiig, arte, and manufttotwes. 

1. Marble, jasper, and alabaster: 

a* Id the roagh or in dressed pieees, squared or prepared for shaping, 

G. W 100 kil.. $0.60 

h. Slabs, plates, or steps of any dimension, polished or not,* G. W., 

100 Ml 1.00 

c. Sealptnres, high and bas-reliefs, vases, urns, and similar articles for 

house decoration, T. (Disp. VI, rule 5) 100 kil.. 3.10 

d. Wrought or chiseled into all other articles, polished or not, T. (Disp. 

VI, rule 5) 100 kil.. 2.00 

2. Stones, other, natural or artificial : 

a. Slabs, plates, or steps, G. W do 50 

h. Wrought into all other articles, T. (Disp. VI, rule 5) do 1. 00 

3. Earths employed in manu&etnres and arts : Cement, lime, and gypsum, 

G. W 100 kil.. .60 

4. Gypsum manufactured into articles : 

a. Statuettes, T. (Disp. VI, rule 5) do 3.00 

6. Articles, other, T. (Disp. VI, rule 5) do 75 

Group 2.— Coal 

5. Coal and coke 1 1 --- 1,000 kil. net.. .20 

Group 3. — Sohietef bitumens, and their derivatives. 

Regime applicable to goods classed in the present group. 

Whenever doubt arises as to the classification of the products enumerated 
in Nos. 365 (free list), 366 {tree list), and 6, the customs must, before collect- 
ing duty, refer the matter to the collector at the chief port. 

'Marble affixed to furniture shall be liable to the same duty as the furniture. 

f Coal and coke shall be cleared in conformity to the weight indicated in the cer- 
tificate issued to the master of the vessel at the port of shipment, proving the quan- 
tity received on board according to the charter party and the bills of lading. In 
case of doubt the customs may verify the quantity. 

t Before discharging coal the vessels conveying the same will be visited, and the 
approximate quantity of cargo will be calculated according to the empty space in 
the hold and the net tonnage of the vessel by taking for a basis 800 kilograms of coal 
and 450 kilograms of coke per cubic meter. Should the result not tally with the 
quantity entered in the manifest and declared, the clearance will be effected by 
weighing. Particulars must be given at the time of payment of duty as to the 
method of control adopted, and also the name or names of the controlling officer or 
officers. ^^ I 

11624 2 uigiiizeabyLjO(3)g[e 



18 

In case of doabt as to tbe clearance of crude petroleum, a sample of tliis oil 
must be taken, and the following rules observed : 

1. A sample of 200 cubic centimeters shall be taken fh>m 50 cases or less, or 
from 10 barrels or less, comprised in the declaration and belonging to the 
same kind of goods. 

2. These samples shall be mixed in a large receptacle, and, when the dis- 
charge is terminated, 2 liters are taken therefrom and put into separate 
bottles, which are sealed and furnished with labels signed by the customs 
employees and the interested party. These bottles shall be forwarded to the 
customs chemical expert in order to be assayed. 

3. Immediately after this operation the goods shall be cleared and the cor- 
responding duty applied, but the interested party shall always be bound by 
the results of the analysis, and the clearance shall not be deemed definitiYe 
until that result be known. 

4. The samples must be assayed within one month, and the interested party 
has the right to be present when the samples are opened and analyzed, pro- 
vided that he has made a written request to this effect at the time of identi- 
fying the samples by affixing his signature to the labels. He may also appeal 
to the collector at the chief port from the report of the experts. 

5. Should the interested party in his appeal request that a new analysis be 
made, this operation shall be effected at his expense if the decision of the 
customs be sustained. In contrary cases, the expenses shall be borne by the 
Government. 

6. In order that tbe Government may always be enabled to know the nature 
of products imported under the denominations comprised in the present group, 
the customs must enter in their statistics and collection sheets the following 
different kinds : 

No. 865 of the free list.* 

a. Tar and other liquid products, even thick. 

h. Pitch, asphalts, schists, and other solid or pasty products. 
No. 366 of the free list. 

a. Petroleum, crude. 

h. Other crude oils which can be used in the preparation of illuminating oils. 

0. Oleonaphtha and the other products classed in this number. 
No. 6 of the tariff: 

a. Petroleum, refined. 

h. Other refined oils designed for illumination. 

0. Benzine, vaseline, and other products comprised in this number. 

6. Petroleum and other mineral oils, rectified or refined, intended for illumi- 

nation; benzine, gasoline, and mineral oils not specially mentioned; 
vaseUne, tG.W 100 kil.. $4.00 

Group 4.— Ore*. 

7. Ores,G.W 100 kU.. .10 

* The customs authorities must take special care that, under the denomination of 
tar or mixtures containing tar, neither crude petroleum, oleonaphtha, nor oils derived 
from schists are imported. Tar must not contain, in appreciable proportions, vola« 
tile products or oils which might be extracted by means of distillation at 300^ centi- 
grade. Under the name of asphalts or bitumens, impure paraffin or other products 
must be included in No. 107 of Class III. 

(Tow impregnated with pitch, tarred felts, and tarpaulins coated with sand, which 
heretofore were dutiable according to this number, shall in future be comprised in 
No. 325 of Class XIII.) 

All petroleum and other mineral oils not having the note to No. 366 shall be con- 
sidered as refined. r\r\rf]i> 

uigiiizea oy x^jOOvIC 



19 

Group 5. — Crystal and glass, 

8. Common or ordinary hoUow glassware; electric insulators, T. (Disp.YI^ 

mle5) 100 kil.. $1.00 

Common bottles of glass, intended to contain beer, rum, and sparkling 
wines, manufactured with native fruit, and garrafones or dernvjohns and 
siphons to contain mineral, carbonated, or seltzer waters, shall e^joy a 
rebate of 60 per cent of the duties stipulated in this number when imported 
and declared in the custom-house by the manufacturers of said beverages. 

9. Crystal, and glass imitating crystal : * 

a. Articles, cut, engraved, or gilt, T. (Disp. VI, rule 5) . . . : 100 kil. . 14. 00 

h. Articles, other, T. (Disp. VI, rule 5) do 7.00 

10. Plate glass and crystal : * 

a. Slabs, paving or roofing, T. (Disp. VI, rule 5) 100 kil. . 1. 65 

h. For windows or in other articles, provided they be neither polished, 

beveled, engraved, nor annealed, T. (Disp. VI, rule b) 100 kil . . 3. 40 

c. Window glass set in lead and polished, or beveled plate glass, T. 

(Disp. VI, rule 5) lOOkil.. 4.90 

d. Articles, engraved or annealed, T. (Disp. VI, rule 5) do 9. 80 

11. Glass and crystal, tinned, silvered, or coated with other metals : 

a. Common mirrors not exceeding 2 mm. in thickness, coated with red 

or dark mercurial varnish, T. (Disp. VI, rule 5) 100 kil . . 10. 00 

h. Mirrors, other, not beveled, T. (Disp. VI, rule 5) do 15. 00 

0. Mirrors, beveled, T. (Disp. VI, rule 5) do 18.00 

12. Glass and crystal in statuettes, flower stands, and vases and similar articles 

for toilet purposes and house decoration ; spectacle and watch glasses ; 
imitations of precious or fine stones; enamel, t T. (Disp. VI, rule 
6) kilog.. .56 

13. Incandescent electric lamps, mounted or not ^ hundred.. 2.00 

Group 6. — Pottery, earthenware, and porcelain, 

14. Bricks of clay, not glazed, for building purposes, furnaces, etc. ; articles 

offireclay,G.W 100 kil.. .30 

15. Roofing tiles of clay, not glazed, for building purposes, per square (10 by 

10 feet) 1.50 

16. Slabs or conduits of clay, glazed or unglazed, cement or stoneware, G. W. 

100 kU 50 

17. Ceramic tiles of all kinds and glazed roofing tiles, per square (10 by 10 feet) . 2. 50 

18. Hollow ware, glazed or not, of clay or stoneware : 

a. Household and kitchen utensils, T. (Disp. VI, rule 5) 100 kil. . .80 

J>. Dishes or other articles, provided that they be neither gilt, painted, 

nor ornamented in relief, T. (Disp. VI, rule 5) 100 kil . . 5. 50 

c. Common bottles of earthenware, to contain beer, etc do 1. 00 

d. Articles, gilt, painted, or ornamented in relief, T. (Disp. VI, rule 5), 

100 kil 5.60 

* Decanters, glasses, tumblers, candlesticks, pillar lamps, and other articles for 
table service and lighting, white or colored, are comprised in this number. 

t Separate and spare parte, forming an integral portion of lamps, chandeliers, or 
bracket lamps, are dutiable aocording to this number. 



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20 

19. Hollow ware or dishes of faience : 

a. Neither painted, gilt, nor in relief, T. (Disp. VI, rale 5) 100 kil.. $3,50 

h. Gilt, painted, or with ornaments in relief, T. (Disp. VI, rule 5), 

100 kil 6.40 

20. Hollow wore or dishes of porcelain : 

a. Neither painted, gilt, nor in relief, T. ( Di^. VI, rule 5) 100 kil . . 5. 80 

b. Painted, gilt, or with ornaments in relief, T. (Disp. VI, rule 5), 

100 kil : 9.80 

21. Statuettes, flower stands, and vases, high and bas-reliefs, articles for toilet 

purposes and house decoration, of fine clay, faience, stoneware, porce- 
lain, or bisque, T. (Disp. VI, rule 5) kilog.. .25 

Class II.— Mbtals, and all manufacturks in which a metal enteks 

AS A principal ELEMENT. 

Group l,-^Gold, $ilver, and platinum, and all&if9 of ikete meiaU. 

22. Gold and platinum in jewelry or goldsmiths' wares, with, or without pre- 

cious stones or pearls; jewelry or wares of silver, with precious stoaes^ 

pearls, and seed pearls, not set, N. W hectog.. 7.60 

28. Gold or platinum wrought in articles, other, of all kinds, N. W do 2. 80 

24. Silver in ingots, bars, plates, sheets, or powder, N. W kil.. 2.60 

25. Jewelry or wares of silver, without precious stones or pearls, N. W . . hectog. . 1. 50 

26. Silversmiths' wares, other, of all kinds, and platinum in ingots, N. W., 

kil 8.00 

27. Plate,N.W kU.. 2.40 

Group 2.— C<m( iron (I). 

(I) Articles of malleable cast iron are dutiable as manufactures of wrought 
iron. 

Cast iron : 

28. Pigs,G.W' 100 kil.. .10 

29. Articles not coated or ornameuted with another metal or porcelain, 

neither polished or turned — 
a. Bars, beams, plates, grates for furnaces, columns, and pipes, 

G.W 100 kil.. .60 

h. Lubricating boxes for railway trucks and carriages, and railway 

chairs, G.W 100 kil.. .36 

c. Articles, other, G. W do 75 

30. Articles of all kinds not coated or ornamented with another metal or 

porcelain, polished or turned, T. (Disp. VI, rule 5) 100 kil . . 1. 20 

31. Articles of all kinds, enameled, gilt, tinned or coated or ornamented 

with other metals or porcelain, T. (Disp. VI, rule 5) 100 kil . . 2. 00 

Group Z.— Wrought iron and steeL 

82. Iron, soft or wrought, in ingots or 'Hoohos;"* steel in ingots, G. W., 1(X) 

kil 34 



* By "tochos'' shaU be understood rough wrought iron in a mass oi prism, round 
iron, or iron in any other form containing dross. (Wrought iron containing dross 
has generally an unequal and rough surface.) 

Wrought iron in a mass or prism free from dross shall be comprised in No. 34, 
letter b. 

In case of doubt this iron shall be submitted to assay for determining its kind. 



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21 

38. Wrought iron or steel, rolled — 

a. Rails, G.W 100 kil.. $0,425 

b. Bars of all kinds, including rods;* tires, hoops, and beams, 

G.W 100 kil.. .80 

c. Bars of all kinds of fine omcible steel, t G. W do 1.40 

34. Sheets, rolled— 

a. Neither polished nor tinned, of 3 millimeters and more in thick- 

ness, G.W 100 kU.. 1.00 

b. Neither polished nor tinned, of less than 3 millimeters in thick- 

ness, and hoop iron, t G.W 100 kil.. 1.00 

c. Tinned and tin plate, G. W do 1.30 

d. Polished, oormgated, x>erforated, cold-rolled, galvanized or not, 

and bands of polished hoop iron, G. W 100 kil. . 1. 20 

35. Wrought iron or steel : 

Cast in pieces, in the rough, neither polished, turned, nor adjusted, 
weighing, each — 

a. 25 kil. or more, G.W 100 kil.. 1.00 

b. Less than 25 kil., G. W do.... 1.35 

36. Cast in pieces, finished— 

a. Wheels weighing more than 100 kilograms, fish plates, chairs, 

sleepers, and straight axles ; springs for railways and tramways ; 
lubricating boxes, G. W 100 kil.. .60 

b. Wheels weighing 100 kilograms or less ; springs other than for 

railways and tramways ; bent axles and cranks, G. W . . 100 kil . . 1. 40 
87. Pipes— 

a. Covered with sheet brass, G. W do 1.40 

b. Other, galvanized or not, G.W do 1. 40 

38. Wire, galvanized or not — 

a. 2 millim. or more in diameter, T. (Disp. VI, rule 5) do 1. 00 

b. More than ^ and up to 2 millim. in diameter, T. (Disp. VI, rule 

5) 100 kil.. 1.30 

c. i millim. or less in diameter, and wire covered with any kind of 

tissue, T. (Disp. VI, rule 5) 100 kil.. 1.60 

89. In large pieces, composed of bars or bars and sheets fastened by means 
of rivets or screws ; the same, nnriveted, perforated, or cut to meas- 
ure for bridges, frames, and other buildings, G. W 100 kil . . 1. 60 

40. Anchors, chains for vessels or machines, mooriugs, switches, and signal 

disks, G.W 100 kil.. .80 

41. Anvils, T. (Disp. VI, rule 5) do.... 2.50 

42. Wire gauze— 

a. Up to 20 threads per inch,} T. (Disp. VI, rule 5) 100 kil . . 1. 80 

b. Of 20 threads or more per inch, T. (Disp. VI, rule 5) kilog.. .05 

43. Cables, fencing (barbed wire), and netting; furniture springs, G. W., 

100 kil 1.00 



* The rods in question are iron or steel rods exceeding 8 millimeters in thickness 
employed in the manufacture of iron wire. 

t Cmcible steel is distinguished from bars and other pieces of iron or common 
steel by its sharp edges. The surface is very smooth, of a bluish color, darker than 
that of iron, and its fracture is close grained. (This st^el is generally imported in 
round, square, octagonal, triangular, or flat bars.) 

tBy hoop iron ("flejes") shall be understood nupolished flat bands or circles of 
leas than 3 millimeters in thickness. 

i This basis represents one-half of the warp and woof threads comprised in a 
square of one inch, i, e., of 23 millimeters. 

uigiTizea by VjOOQIC 



22 

44. Tools and implements — 

a. Fine, for arts^ trades, and professions, of crucible steel, T. (Disp. 

VI, rule 5) 100 kil.. $5.00 

b. Other, T. (Disp. VI, rule 5) do..., 2.50 

45. Screws, nuts, bolts, washers, and rivets; Parisian and similar tacks, 

per cent ad valorem 15 

46. Nails, clasp nails, and brads, T. (Disp. VI, rule 5) kil . . 1. 00 

47. Buckles: 

a. Gilt, silvered, or nickeled, T. (Disp. VI, rule 5) kilog.. .20 

b. Other, T. (Disp. VI, rule 5) do 16 

48. Needles, sewing or embroidering, pins, and pens; pieces of clock works, 

N. W. (Disp. VI, rule 9) kilog.. .30 

49. Crochet hooks and the like; hooks, hairpins, and surgical instruments, 

N. W. (Disp. VI. rule 9) kilog.. .30 

90. Cutlery of all kinds; tailors' scissors; side arms and pieces for same, T. 

(Disp. VI, rule 5) kilog., .40 

5L. Firearms: 

a. Barrels, unfinished, for portable arms, G. W kilog . . .25 

b. Small arms, such as pistols and revolvers, also their detached parts, 

T. (Disp. VI, rule 5) , kilog.. 1.00 

0. Sporting guns: Muzzle-loading, and detached parte thereof, T. (Disp. 

VI, rule 5) kUog.. .60 

d. Breech-loading, and detached parte thereof, T. (Disp. VI, rale 5), 

kilog 2.50 

52. Manufactures of tin plate, T. (Disp. VI, rule 5) 100 kil.. 6.50 

Wrought iron or steel : 

53. Articles of all kinds not specially mentioned, common, even coated with 

lead, tin, or zinc, or painted or varnished — 

a. In which sheet predominates, T. (Disp. VI, rule 5) 100 kil . . 2. 00 

b. In which sheet does not predominate, T. (Disp. VI, rule 5), 

100 kil 2.00 

54. Articles of all kinds not speoiaUy mentioned, fine, i. e., polished, enam- 

eled, coated with porcelain, nickel, or other metals (with the excep- 
tion of lead, tin, or zinc), or with ornaments, borders, or parts of • 
other metals, or combined with glass or earthenware — 

a. In which sheet predominates, T. (Disp. VI, rule 5) 1(X) kil . . 8. 00 

b. In which sheet does not predominate (Disp. VI, rule 5) do 3. 00 

Group i,— Copper and alloys of common metqh wiih copper {bra$8f bronze, etc). 

55. Copper scales, copper of first fusion, old copper, brass, etc., G. W . . 100 kil . . 3. 00 

56. Copper and alloys of copper : IningotH,G. W do 4.00 

57. Rolled in bars of all kinds, G. W do.... 4.50 

58. Rolled in sheets, G. W do 5.00 

59. Wire, galvanized or not— 

a. 1 millimeter and more in diameter, T. (Disp. VI, rule 5). .do 5.00 

6. Less than 1 millimeter in diameter, T. (Disp. VI, rule 5) . . do 5. 00 

0. Gilt, silvered, or nickeled, T. (Disp. VI, rule 5) kilog. . . 25 

60. Wire covered with tissues or insulating materials; conducting cables 

for electricity over public thoroughfares,* T. (Disp. VI, rale 6), 

100 kil aoo 



* By conducting cables for electricity shall be meant cables composed of one or 
more wires of copper or any alloy of copper, whatever be their thickness, provided 
that they be covered with an insulating wrapper, without taking into consideration 
whether they are inclosed in pipes of iron or lead or strengthened with cordage or 
iron or tteel wire. 

uigiiizea oy xjv/^^/^^i\^ 



23 

SI. Wire gauze — 

a. Up to 100 threads per inch/ T. (Disp. VI, role 5) 100 kil.. $5.00 

&. Of 100 threads or more per inch, T. (Disp. VI, rule 5) kilog . . .12 

62. Pipes, bearings, plates for fireplaces, and boiler makers' wares partially 

wronght,G.W 100 kil.. 4.60 

63. Nails and tacks — 

a. Gilt, silvered', or nickled, T. ( Disp. VI, rule 5) kilog . . .15 

h. Other, T. (Disp. VI, mle 5) do 10 

64. Pins or pens, N.W. (Disp. VI, rule 9) do 40 

Copper and alloys of copper : 

65. Articles not specially mentioned, varnished or not, T. (Disp. VI, rule 

5) kilog.. .15 

66. Articles, gilt, silvered, or nickled, not specially mentioned, T. (Disp. 

VI, rule 5) kilog.. .25 

Group 5. — Other metals and their alloys. 

67. Mercury, G.W kilog.. .20 

Nickel, aluminium, and alloys having for a basis these metals : 

68. In lumps or ingots, G. W 100 kil.. 3.00 

Tin and alloys thereof: 

69. In lumps or ingots, G. W do 4.00 

Zinc, lead, and other metals [not specially mentioned, as well as their 

alloys : 

70. In lumps or ingots, G.W 100 kil.. 1.00 

Nickel, aluminium, and their alloys : 

71. In bars, sheets, pipes, and wire, G.W do 7.00 

Tin and alloys thereof: 

72. In bars, sheets, pipes, and wire, G. W do 7.00 

Zinc, lead, and other metals : 

73. In bars, sheets, pipes, and wire, G. W 1. 30 

74. Tin hammered in thin leaves (tin foil) and capsules for bottles^ T. (Disp. 

VI, rule 6) kilog.. .04 

Nickel or aluminium, and their alloys: 

76. Articles of all kinds, T. (Disp. VI, rule5) do 60 

Tin and alloys thereof (Britannia metal, etc.) : 

76. Articles of all kinds, T. (Disp. VI, rule 6) do 50 

77. Zinc, lead, and other metals, and their alloys : 

a. Articles, gilt, silvered, or nickeled, T. (Disp. VI, rule 6) do 25 

b. Articles, other, T. (Disp. VI, ruleS) do 10 

Group B.^Wastes and sooria:. 

78. Filings, shavings, cuttings of iron or steel, and other wastes of cast iron 

or f^om the manufacture of common metals, fit only for resmelting, G. W., 

100 kU *. 16 

79. Scoris resulting from the smelting of ores, G. W 100 kil . . .03 

Class III. — Substances employed in pharmacy and chemical industries, akd 

PRODUCTS composed OF THESE SUBSTANCES. 

Group l.^SimpU drugs. 

80. Oleaginous seeds, copra or cocoanuts, G.W 100 kil.. 1.50 

* This basis represents one-half of the warp and woof threads comprised in a 
•qnaie of 1 inch, i. e., of 23 millimeters. 



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24 

81. Eesins and gums : 

a. Colophany, pitch, and similar products, G. W 100 kil. . $0. 4& 

ft. Spirits of turpentine, T. (Disp. VI, rule 5) do 2.50 

0. Caoutchouc and gutta-percha, raw or melted in lumps, G. W , . . do 8. OO 

82. Extracts of licorice, camphor, aloes, and other similar vegetable juices, 

G.W 100 kU.. 5.2& 

83. Tan bark, G.W do 25 

84. Opium, G.W , kilog.. 6.0O 

85. Other simple yegetable products, not speciall j mentioned, G. W . . 100 kil . . 2. 75 

86. Animal products employed in medicine, not specially mentioned, G. W., 

100 kil 1.30 

87. Natural colors, in powder or in lumps (ochers, etc.), G. W 100 kil . . .30 

Group 2. — Colara, dyes, and vamUhes, 

88. Artificial colors of metallic bases : 

a. In powder or lumps, G. W. ; T. (Disp. VI, rule 4) 100 kil., 1.40 

h. Prepared in the paste, oil, or water ; also lead or colored pencils, G. 

W.; T. (Disp. VI, rule 4) 100 kU.. 3.00 

89. Other artificial colors, in powder, crystals, lumps, or paste, G. W. ^ T. 

(Disp. VI, rule 4) kilog.. .25 

90. Natural dyes : 

a. Woods, barks, roots, etc., for dyeing, G. W 100 kil . .20 

6. Madder, G.W do.... 4.50 

0. Indigo and cochineal, G. W kilog.. .20 

91. Artificial dyes : 

a. Extracts from logwood, archil, and other dyeing extracts, G. W.; T. 

(Disp. VI, rule 4) 100 kil.. 5.00 

h. Writing, drawing, or printing inks, G. W.;T.(Dlsp. VI, rule4).do.. 3.00 

c. Colors derived from coal, G. W. ; T. (Disp. VI, rule 4) kilog. . . 10 

92. Varnish, G. W.; T. (Disp. VI, rule 4) 100 kil.. 4.50 

93. Blacking, G. W do.... 3.00 

Group 3. — Chemical and pharmaoeutical products, 

94. Simple bodies : 

a. Sulphur, G.W 100 kil.. .15 

h. Bromine, boron, iodine, and phosphorus. Phosphorus, T. (Disp. VI, 

rule5); other, G. W kilog.. .06 

95. Inorganic acids : 

a. Hydrochloric, boric, nitric, and sulphuric, also aqua regia, G. W., 

100 kil 15 

h. Liquid carbonic acid, N. W 100 kil.. 5.00 

0. Other, G.W do.... 5.00 

96. Organic acids : 

a. Oxalic, citric, tartaric, and carbolic, G.W do 1.00 

5. Oleic, stearic, and palmetic, G. W do 1.40 

c. Acetic, G.W do.... 6.00 

d. Other, G.W do.... 5.00 

97. Oxides and oxyhydrates: Of ammoniac, potash, and other caustic and 

barilla alkalies, G. W 100 kil.. .25 

98 Inorganic salte : 

a. Chloride of sodium (common salt), G. W do 60 

h. Chloride of potassium; sulphates of soda, iron, or magnesia; carbo- 
nate of magnesia; alum,G.W lOOkil.. .45 

c. Sulphate of ammoniac; phosphates and superphosphates of lime; 

nitrate of potash and soda, G.W 100 kil.. .03 



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98. Inorganic salts — Continued. 

d. Other salts of ammoniac, salts of copper, chloride of lime, sulphate of 

potash, hyposulphite of soda and borax, G. W . . .• 100 kil . . $0. 75 

e. Chlorates ofsoda and potash, 6. W do 1.80 

99. Organic salts: 

a. Acetates and oxalates, G. W do 2.50 

h. Citrates and tartrates, T. (Disp. VI, rule 5) do 3.00 

100. Alkaloids and their salts ; chlorides of gold and silver, N. W kilog . . 6. 00 

101. Chemical products not specially mentioned,* G. W. ; T. (Disp. VI, rule 4), 

kUog 06 

102. Pills, capsules, medicinal dragees, and the like,* T. (Disp, VI, rule 5), 

kUog .25 

103. Pharmaoentical products not specially mentioned,* T. (Disp. VI, rule 5), 

kilog .10 

Group i.—Oils, fata, wax, and their derivatives. 

104. Vegetable oils: 

a. Solid (cocoanut, palm, etc.), G. W 100 kil.. 2.50 

b. Liquid, except olive oil, G. W do 3.00 

106. Crude oils and animal fats : 

a. Cod-liver oil and other medicinal oils, not refined, G. W do 1. 47 

h. Glycerin, olein, stearin, and spermaceti, erode, G. W do 1. 40 

c. Other crude oils and fats, G. W do 50 

106. Mineral, vegetable, or animal wax, un wrought, and paraffin in lumps, 

G. W 100 kU.. 2.50 

107. Articles of stearin and paraffin, wax of all kinds, wrought, T. (Disp. VI, 

rule5) 100 kil.. 2.40 

108. Commonsoap, G. W.; T. (Disp. VI,rule4) do.... 1.00 

109. Perfumery and essences, T. (Disp. VI, rule 5) kilog.. .10 

Group 5.— Various. 

110. Artificial or chemical fertilizers, G. W 100 kil.. .06 

HI. Starch and fecnlsB for industrial uses; dextrin and glucose, G. W. ; T. 

(Disp. VI, rule 4) 100 kil.. 1.40 

112. Glues, albumens, and gelatin, G.W do 3.90 

US. Carbons prepared for electric lighting, G. W do 2.00 

114. Gunpowder and explosives : 

a. Gunpowder, explosive compounds, and miners' fuses, G. W. ; T. (Disp. 

VI, rule 4) 100 kil.. 4.00 

b. Gunpowder, sporting, and other explosive not intended for mines, t 

N. W kilog.. .15 

Cijlss IV.— Cotton and manufactures thereof. 
Group 1. — Cotton in the wool and yatms. 

115. Cotton in the wool and cotton waste t per cent ad valorem. . 15 

116. Cotton yam and thread for crocheting, embroidering, and sewing, $ in- 

cluding the weight of reels per cent ad valorem 15 

* The products or substances comprised in Nos. 101, 102, and 103 shall be examined 
by chemical experts, who must sign the declarations simultaneously with the customs 
employees. 

t All gunpowder intended for any kind, of firearms capable of passing through a 
metallic riddle with round holes of 2^ millimeters in diameter, shall be considered 
as sporting. 

t Cotton yam and threads of less than 20 centimeters in length shall be considered 
as waste of spun cotton. 

i Tarns and threads combined in any proportion with threads of common metal 
shall follow the regime of No. 165, Class VII. 

uigiiizea oy x^jv^^^-xiv^ 



26 

Group 2.— r<«»ue«. 

Note I. — When the tiBsnes inclnded in thennmbeis of this group contain an 
admixture, they shall, according to kind, he liahle to the following Bortaxes 
(see Disp. IV) : 

1. Cotton tissnes containing threads of hemp, Jute, linen, ramie, or pita ahall 
he liahle to a surtax of 15 per cent of the duties applicahle thereto, provided 
that the numher of these threads of hemp, Jute, linen, ramie, or pita, counted 
in the warp and weft, does not exceed one-fifth of the total numher of threads 
composing the tissue. 

When the numher of threads of hemp, jute, linen, ramie, etc., exoeeda one- 
fifth of the total, the tissues shall he suhject to the corresponding duties of 
Class V. 

2. Cotton tissues containing threads of wool, flock wool, hair, or wastes of 
these materials, shall he liahle to a surtax of 35 per cent of the duties applica- 
hle thereto, provided that the numher of threads of wool, flock wool, hair, or 
their wastes, counted in the warp and weft, does not exceed one-fifth of the 
total numher of threads composing the tissue. 

When the numher of threads of wool, flock wool, hair, or their wastes exceeds 
one-fifth of the total, the tissues shall be subject to the corresponding duties 
of Class VI, as tissues mixed with wool. 

3. Cotton tissues containing threads of silk or floss silk shall be liable to a 
surtax of 70 per cent of the duties applicable thereto, provided that the num- 
ber of silk or floss-silk threads, counted in the warp and weft, does not exceed 
one-fifth of the total numher of threads composing the tissue. 

When the number of threads of silk or floss silk exceeds one-fifth of the 
total, the tissues shall be subject to the corresponding duties of Class VII. 

The provisions of this note shall not apply to knitted stuffs, tuUes, lace, 
blondes, and tulles for borders (see Disp. IV, rule 6), to ribbons (Disp. IV, 
rule 7), or to trimmings (Disp. IV, rule 7). 

NoTK II.— Articles included in this group which are within the undermen- 
tioned conditions shall be liable to the following surtaxes (see Disp. IV) : 

(a) Tissues, broch^s, or woven like brocades with silk or floss silk shall be 
liable to the duties leviable thereon plus a surtax of 35 per cent. 

(b) Tissues embroidered by hand or by machine after weaving or with appli- 
cation of trimmings shall be liable to the duties leviable thereon plus a sur- 
tax of 30 per cent. 

Should the embroidery contain threads, purl, or spangles of conunon metals 
or of silver, the surtax shall amount to 60 per cent of the duties applicable to 
the tissue. 

When the threads, purl, or spangles are of gold, the surtax shall be 100 per 
cent. 

(o) Tissues and trimmings containing threads or purl of common metals or 
silver shall be liable to a surtax of 50 per cent of the duties leviable thereon. 

When the threads or purl are of gold, the surtax shall amount to 100 per 
cent. 

(d) Tissues entirely or partially made up into sacks shall be liable to the 
duties applicable thereto plus a surtax of 15 per cent. 

Shawls called "mantones'' and ''paQolones,'' traveling rugs, counterpanes, 
sheets, towels, tablecloths and napkins, mantles, veils, shawls, hemmed fichus 
and handkerchiefs shall, for the making up, be liable to a surtax of 30 per cent 
of the duties leviable thereon. 

Other made-up articles, wearing apparel, and clothing of all kinds, finished, 
half finished, or simply basted shall, for their total weight, be liable to the 
duties leviable on the principal component tissue on their most visible exterior 
part, plus a surtax of 100 per cent. 

Articles of hosiery specially mentioned shall not be liable to the payment of 
the surtax for making up. 

*=* '^ uigiiizea Dy '^^j v/^^/^^i\^ 



27 

117. Tissues^ plain and witbont figaies, napped or not, weighing 10 kilograms or 

more per 100 sqnare meters, unbleached, bleached or dyed, having : 

a. Up to 9 threads per cent ad valorem.. 10 

6. From 10 to 15 threads do ,10 

0. FromlOto 19 threads do 10 

d, 20 threads or more do 15 

117 a. The same tissues, printed or manufactured with dyed yams : 
Dutiable as the tissue, with a surtax of 30 per cent. 

118. Tissues, plain and without figures, napped or not, weighing less than 10 

kilograms per 100 square meters, unbleached, bleached, or dyed, having : 

a. Up to 6 threads per cent ad valorem.. 10 

b. From7to 11 threads do 10 

0, From 12 to 15 threads do 10 

d. From 16 to 19 threads do 15 

e. 20 threads or more do 15 

118a. The same tissue, printed or manufactured with dyed yams : 

Dutiable as the tissue, with a surtax of 40 per cent. 

119. Tissues, twilled or figured on the loom, napped or not, weighing 10 kilo- 

grams or more i>er 100 square meters, unbleached, bleached, or dyed 

having : 

a. Up to 6 threads per cent ad valorem.. 10 

6. From 7 to 11 threads do 10 

0. From 12 to 15 threads do 10 

d. From 16 to 19 threads do.... 15 

e. 20 threads or more do 15 

119a. The same tissues, printed or manufactured with dyed yams : 

Dutiable as the tissue, with a surtax of 30 per cent. 

120. Tissues, twilled or figured on the loom, napped or not, weighing less than 

10 kilograms per 100 square meters, unbleached, bleached, or dyed, 

having : 

a. Up to 6 threads per cent ad valorem . . 10 

6. From 7 to 11 threads do 10. 

0. From 12 to 15 threads do 15 

d. From 16 to 19 threads do 15 

e. 20 threads or more do 15 

120a. The same tissues, printed or manufactured with dyed yarns : 

Dutiable as the tissuiBS, with surtax of 40 per cent. 

121. Tissues for counterpanes ...do 10 

122. Piqu^ of all kinds do 15 

123. Carded tissues : 

a. Unbleached, half bleached, or dyed in the piece do 10 

b. Bleached, printed, or manufactured with dyed yams do 10 

124. Velvety tissues, such as corduroys and velveteens; three-ply plush tis- 

sues, cut or not per cent ad valorem.. 15 

125. Knitted goods, even with needlework* do 15 

a. Undershirts and drawers of simple finish or rough sewing, per 

cent ad valorem 15 

b. Undershirts and drawers of double sewing or fine finish, per cent 

ad valorem 15 

0. Stockings, socks, gloves, and other small articles of simple finish or 

rough sewing per cent ad valorem. . 15 

d. Stockings, socks, gloves, and other small articles of double sewing 

or fine finish per cent ad valorem.. 15 

* Knitted goods, mixed with other vegetable fibers, wool, silk, or floss silk, shall 
respectively be dutiable according to the corresponding numbers of Classes V, VI, 
and VII. (See Disp. IV, rule 6.) ugmzea oy ^v/^/^i.^ 



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28 

126. TuUes:* 

a. Plain per cent sd valorem.. 15 

b. Figured or embroidered on the loom do 15 

127. Lace, blondeSi and tuUe for borders, of all kinds* do 15 

128. Carpets of cotton do.... 15 

129. Tissaes called tapestry, for upholstering fdmitore and fbr oortains man- 

ufSftctnred with dyed yams ; table coyers and counterpanes of the tame 

kind per cent ad valorem.. 16 

130. Wicks for lamps and candles do 10 

131. Trimmings of cotton; ribbons and gaUoons 1 1 do 15 

Class V. — Hemp, flax, pita, jute, and other vegetable fibers, and their 

MANUFACTURES. 

Group 1. — Baw and tpun, 

132. Hemp, raw, hackled, or tow per cent ad valorem.. 10 

133. Abaca, manila hemp, aloe, Jute, and other vegetable fiber do 10 

134. Twisted yams of two or more ends (including fche weight of the reels) ; $ 

also the fibers of abaca, heniquen, pita, jute, and other vegetable fibers, 
prepared for spinning, not otherwise provided for . per cent ad valorem . . 10 
134a. Bags for sugar do 10 

135. Rope and cordage : 

a. Twine or rope yam and cord of hemp, not exceeding 8 millimeters in 

thickness per cent ad valorem . . 15 

b. Cordage and rope-makers' wares of hemp, exceeding 3 millimeters in 

thickness per cent ad valorem. . 15 

0. Cordage and rope-makers' wares of abaca, heniquen, pita, jute, or 

other fibers. p per cent ad valorem.. 15 

Group 2. — lUaues, 

Note I. — When the tissues included in the numbers of this group contain 
an admixture they shall, according to kind, be liable to the following snr- 
taxes. (See Disp. IV) : 

1. Tissues of hemp, jute, linen, ramie, or pita containing threads of wool, 
flock wool, hair, or their wastes shall be liable to a surtax of 40 per cent of 
the duties applicable thereto, provided that the number of these threads of 
wool, flock Wool, hair, or their wastes, counted in the warp and weft, does 
not exceed one-fifth of the total number of threads composing the tissue. 

When the number of threads of wool, flock wool, hair, or their wastes 
exceeds one-fifth of the total the tissues shall be subject to the correspond- 
ing duties of group 2, Class VI, as tissues mixed with wool. 

2. Tissues of hemp, jute, linen, ramie, or pita containing threads of silk or 
floss silk shall be liable to a surtax of 60 per cent of the duties applicable 
thereto, provided that the number of these threads of silk or floss silk, counted 
in the warp and weft, does not exceed one-fifth of the total number of threads 
composing the tissue. 

When the number of silk or floss-silk threads exceeds one-fifth of the total 
the tissues shall be subject to the corresponding duties of Class VII. 

* When these articles are mixed in any proportion with linen or silk, they shall 
respectively be included in the corresponding numbers of Classes Y and VII. (See 
Disp. IV, rule 6.) 

t See Disp. IV, rales 9 and 13. 

t Ribbons and galloons containing in any proportion threads of other vegetable 
fibers, wool or silk, shall respectively be subject to the corresponding numbers of 
Classes V, VI, and VII. (See Disp. IV, rule 7.) 

$ Yams and threads combined in any proportion with threads of common metal 
shall follow the regime of No. 165, Class VII. ^ . 

uigiiizea oy v^jOOvLC 



29 

3. Tissues of cotton containing an admixture of bemp, linen, ramie, jute, or 
other vegetable fibers, and at same time threads of silk or floss silk, shall be 
dutiable according to the corresponding numbers of this group (see Disp. lY, 
rule 4, letter &\ with a surtax of 60 per ccat, provided that the number of silk 
or floss-silk threads, counted in the warp and weft, does not exceed one-fifth 
of the total number of threads composing ihe tissue. 

When the number of threads of silk or floss silk exceeds one-fifth of the 
total the tissues shall be subject to the corresponding duties of Class VII. 

The provisions of this note shall not apply to knitted stuffs, tulles, lace, 
blonde, and tulles for borders (see Disp. IV, rule 6), to ribbons (Disp. IV, 
rule 7), or to trimmings (Disp. IV, rule 8). 

NOTK II. — Articles included in this group which are within the undermen- 
tioned conditions shall be liable to the following surtaxes (Disp. IV) : 

(a) Tissues, broch^, or woven ]ik« broeadee with silk or floss silk, shall be 
liable to the duties leviable thereon, plus a surtax of 30 per cent. 

(h) Tissues embroidered by hand or by machine after weaving or with appli- 
cation of trimmings shall be liable to the duties leviable thereon, plus a surtax 
of 30 per cent. 

Should the embroidery contain threads, purl, or spangles of common metals 
or of silver the surtax shall amount to 60 per cunt of the duties applicable to 
the tissue. 

When the threads, purl, or spangles are of gold the surtax shall be 100 per 
cent. 

(o) Tissues and trimmings containing threads or purl of common metals or 
silver shall be liable to a surtax of 50 per cent of the duties leviable thereon. 

When the threads or purl are of gold the surtax shall amount to 100 per 
cent. 

(d) Tissues entirely or partially made up into sacks shall be liable to the 
duties applicable thereto, plus a surtax of 15 x>sr cent. 

Sheets, towelsj tablecloths and napkins, mantles, veils, shawls, hemmed 
fichus and handkerchiefs shall, for the making up, be liable to a surtax of 30 
per cent of the duties leviable thereon. 

Other made-up articles, wearing apparel and clothing of all kinds, finished, 
half finished^ or simply basted, shall, for their total weight, be liable to the 
duties leviable on the principal component tissue on their most visible exterior 
part, plus a surtax of 100 per cent. 

Articles of hosiery specially mentioned shall not be liable to the payment of 
the surtax for making up. 

136. Tissues of hemp, linen, ramie, jute, or other vegetable fibers, not spe- 

cially mentioned, plain, twilled or damasked, weighing 35 kilograms 
or more per 100 square meters, unbleached, half bleached, or dyed 
in the piece, having : 

a. Up to 5 threads per cent ad valorem . . 10 

b. From 6 to 8 threads do 10 

c. 9 threads or more do 10 

136a. The same tissues, bleached or printed : 

Dutiable as the tissue, with a surtax of 15 per cent. 
136^. The same tissues, manufactured with dyed yams : 

Dutiable as the tissue, with a surtax.of 25 per cent. 

137. Tissues, plain, twilled, or damasked, weighing from 20 to 35 kilograms 

per 100 square meters, unbleached, half bleached, or dyed in the 

piece, having : 

a. Up to 5 threads per cent ad valorem.. 10 

h. From 6 to 8 threads do 10 

0. From 9 to 12 threads do.,.. 10 

d. From 13 to 16 threads do 10 

«. 17 threads or more nmrea^r^K^^r^^ 10 



30 

137a. The same tissaes, bleached or printed : 

Datiable as the tissue, with a surtax of 25 per cent. 
137&. The same tissues, manufactured with dyed jams : 

Dutiable as the tissue, with a surtax of 40 per cent. 

138. Tissues, plain, twilled, or damasked, weighing from 10 to 20 kilograms 

per 100 square meters, unbleached, half bleached, or dyed in the piece, 

having : 

a. Up to8 threads percent ad valorem.. 10 

h. From 9 to 12 threads do 10 

c. From 13 to 16 threads do 10 

d. From 17 to 20 threads do 10 

«. 21 threads or more do 15 

138a. The same tissues, bleached or printed : 

Dutiable as the tissue, with a surtax of 30 per cent. 
IdSh. The same tissues, manufactured with dyed yams : 

Dutiable as the tissue, with a surtax of 50 per cent. 

139. Tissues, plain, twilled, or damasked, weighing less than 8 kilograms per 

100 square meters, unbleached, half bleached, or dyed in the piece, 
having : 

a. Up to 8 threads per cent ad valorem.. 10 

b. From 9 to 12 threads do 10 

e. From 13 to 16 threads do 10 

d. From 17 to 20 threads .' do 16 

e. 21 threads or more do 16 

139a. The same tissues, bleached or printed : 

Dutiable as the tissue, with a surtax of 30 per cent. 
1396. The same tissues, manufactured with dyed yams : 

Dutiable as the tissue, with a surtax of 50 per cent. 

140. Velvets and plushes of linen, jute, etc do 15 

141. Knitted goods of linen or hemp, mixed or not with cotton or other vege- 

table fibers, even with needlework:* 

a. In the piece. Jerseys or drawers por cent ad valorem. . 15 

b. Stockings, socks, gloves, and other small articles do.... 15 

142. Tulles :t 

a. Plain do 15 

b. Figured or embroidered on the loom do 15 

143. Lace, blonde, and tulles for borders t do.... 15 

144. Carpets of jute, hemp, or other vegetable fibers without admixture of 

wool percent ad valorem.. 10 

145. Tissues called tapestry for upholstering furniture and for curtains, mixed 

or not with cotton, figured or damasked, provided they be manufactured 
with yams dyed prior to being woven ; table covers and counterpanes 
of the same kind per cent ad valorem.. 15 

146. Trimmings of hemp, jute, linen, ramie, etc. ; ribbons and j^ralloons, t $ 

per cent ad valorem 15 

* Knitted goods containing an admixture of wool, silk, or floss silk shall respeo- 
tively be dutiable according to the corresponding numbers of Classes YI and YU. 
(8eeDisp.IV,rale6.) 

t When such goods are mixed with silk, they shall be subject to the corresponding 
number of Class YII. (See Disp. lY, rule 6.) 

t See Disp. lY, rules 8 and 12. 

$ Ribbons and galloons containing in any proportion threads of wool or silk shall 
respectively be liable to the corresponding numbers of Class YII. (See Disp. lY, 
rule?.) 



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Class VI.— Wool, bristles, hair, horsehair, and their manufactures. 
Group 1. — Baw and spun, 

147. Bristles, hair, and horselialr per cent ad valorein . . 22 

148. Wool, raw do.... 50 

149. Woolen yarn, nn bleached, bleached or dyed, single or twisted . ..do 25 

Woolen yams mixed with silk shall be liable to the following surtaxes : 

When containing up to one-fifth of silk per cent ad valorem. . 22 

When containing np to two-fifths of silk do 50 

When containing three-fifths or more of silk the yams shall be 
dutiable as untwisted silk. 

Group 2.— IlwaMM and fulled Bluffs, 

Note I. — When the tissues comprised in this group are mixed they 
shall, according to kind, be liable to the following surtaxes (see Disp. 
IV): 

1. Tissues of wool or hair containing threads of silk or floss silk shall 
be liable to a surtax of 45 per cent of the duties applicable thereto, pro- 
▼ided that the number of silk or floss-silk threads, counted in the warp 
and weft, does not exceed one-fifth of the total number of threads com- 
posing the tissue. 

When the number of silk or floss-silk threads exceeds one- fifth of the 
total the tissues shall be subject to the corresponding duties of Class VII. 

2. Tissues containing an admixture of wool and cotton, or of wool and 
other vegetable fibers, and at the same time threads of silk or floss silk, 
shall be dutiable according to the corresponding numbers of this group 
(Disp. IV, rule 4, letter a), with a surtax of 45 per cent, provided that 
the number of silk or floss-silk threads, counted in warp and weft, does 
not exceed one-fifth of the total number of threads composing the tissue. 

When the number of silk or floss-silk threads exceeds one-fifth of the 
total the tissue shall be subject to the corresponding duties of Class VII. 

The provisions of this note shall not apply to knitted stuffs, tulles, 
lace, blonde, and tuUes for borders (see Disp. IV, rule 6), to ribbons 
(Disp. IV, rule 7), or to trimmings (Disp. IV, rule 8). 

NoTti II. — Articles included in this group which are within the under- 
mentioned conditions shall be liable to the following surtaxes (Disp. IV) : 

A, Tissues, broch^s, or woven like brocades with silk or floss silk, shall 
, be liable to the duties leviable thereon » plus a surtax of 20 per cent. 

B, Tissues embroidered by hand or by machine after weaving or with 
application of trimmings shall be liable to the duties leviable thereon, 
pins a surtax of 40 per cent. 

Should the embroidery contain threads, purl, or spangles of common 
metals or of silver the surtax shall amount to 60 per cent of the duties 
applicable to the tissue. 

When the threads, purl, or spangles are of gold the surtax shall be of 
100 per cent. 

C, Tissues and trimmings containing threads or purl of common metals 
or silver shall be liable to a surtax of 50 per cent of the duties leviable 
thereon. 

When the threads or purl are of gold the surtax shall amount to 100 per 
cent. 

D, Shawls, including those called '' mantones" and '< pafiolones,'' fichus, 
horse cloths or blankets, traveling mgs, bed covers, counterpanes or 



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bordered blankets (even when the border consists of a silk ribbon, pro- 
vided the latter be not more than 2 centimeters in width) shall, for the 
making up, be liable to a surtax of 30 per cent of the duties leviable 
thereon. 

On other made-up articles, wearing apparel and ol(»thing of all kinds, 
finished, half finished, or simply basted, shall, for their total weight, be 
liable to the duties leviable on the principal component tissEe on their 
most visible exterior part, plus a surtax of 100 per cent. 

Articles of hosiery specially mentioned shall not be liable to the pay* 
ment of the surtax for making up. 

150. Swanskin of pure or mixed wool per cent ad valorem . . 25 

151. Baizes: 

a. Of pure wool do 25 

&. Of mixed wool do 25 

152. Flannels, white or colored, for underclothing: 

a. Of pure wool do 25 

b. Of mixed wool do 25 

153. Blankets or counterpanes of wool, pure or mixed with other materials: 

a. Gray blankets ("pardas") per cent ad valorem . . 25 

b. Other ..do 25 

154. Astrakhans, plushes, and velvets of wool, pure or mixed do 25 

155. Cloths and other tissues not specially mentioned, of wool, hair, or flock 

wool, comprised or not in drapery, weighing per square meter: 
300 grams or more: 

a. Of wool, hair, or flock wool, pure per cent ad valorem . . 25 

b. Of wool or hair, mixed do % 

156. From 175 to 300 grams: 

a. Of wool, hair, or flock wool, pure do 25 

b. Of wool or hair, mixed do 25 

157. Less than 175 grams: 

a. Of wool, hair, or flock wool, pure do.... 25 

&. Of wool or hair, mixed do % 

158. Tissues of bristle or horsehair, with or without an admixture of cotton or 

other vegetable fibers per cent ad valorem.. 25 

159. Knitted stuffs, with or without an admixture ot ootton or other vegetable 

fibers, even with needlework:* 

a. In the piece. Jerseys or drawers per cent ad valorem . . 25 

6. In stockings, socks, gloves, and other small articles do 25 

160. Carpets of wool, pure or mixed with other materials : 

a. With uncut pile do.... 25 

6. Plushy or with cut pile do 25 

161. Tissues called tapestry, for curtains and upholstering furniture, of wool, 

pure or mixed with cotton or other vegetable fibers, even figured or 
damasked, weighing more than 350 grams per square meter; table 
covers and counterpanes of the same kind per cent ad valorem . . 25 

162. Felts of wool, pure or mixed do 25 

163. Trimmings of wool ; ribbons and galloons t ^ do 25 

* Knitted goods containing an admixture of silk shall be dutiable according to the 
corresponding numbers of Class VII. (See Disp. IV, rule 6.) 

t See Disp. IV, rules 8 and 12. 

t Ribbons and galloons containing in any proportion threads of silk shall be 
dutiable according to the corresponding numbers of Class VII (Disp. FV, rule 7) 



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Class VII.— Silk and manufactures of silk. 
Group 1.— ranf#. 

164. Silk and floss silk, span or twisted, in skeins * per cent ad valorem . . 35 

166. Silk on reek; including weight of the reels do 25 

Group 2. — Tissuei, 

Note I.— The tissues comprised in this group shall be considered as 
pure silk tissues when the number of silk or floss-silk threads, counted 
in the warp and weft, exceeds one-half of the total number of threads 
composing the tissue. (Disp. IV, rule 5.'} 

This rule shall not apply to knitted stuffs, tulles, lace, blondes, and 
tulles for borders, or to ribbons or galloons not exceeding 15 centimeters 
in width. Such goods shall be considered as mixed silk tissues and duti- 
able according to the corresponding numbers of the tariff when contain- 
ing threads of cotton or other vegetable fibers, wool or flock wool, 
whatever be the proportion of such threads in the mixture. (Disp. 
IV, rules 6 and 7.) 

Note II.— Articles included in this group which are within the under- 
mentioned conditions shaU be liable to the following surtaxes (see 
Disp. IV) : 

A. Tissues embroidered by hand or by machine after weaving, or with 
application of trimmings, shall be liable to the duties leviable tkereon, 
plus a surtax of 50 per cent. 

Should the embroidery contain threads, purl, or spangles of common 
metals, or of silver, the surtax shall amount to 60 per cent of the duties 
applicable to the tissue. 

When the threads, purl, or spangles are of gold the surtax shall be 100 
per cent. 

B. Tissues and trimmings containing threads or purl of common metals 
or silver shall be liable to a surtax of 50 per cent of the duties leviable 
thereon. 

When the threads or purl are of gold the surtax shall amount to 100 
per cent. 

C. Shawls called " mantones," handkerchiefs of manila hemp, blan- 
kets, counterpanes, shawls, veils, mantles, hemmed fichus, and handker- 
chiefs shall, for the making up, be liable to a surtax of 30 per cent of 
the duties leviable thereon. 

Other made-up articles, wearing apparel and clothing of all kinds, 
finished, half finished, or simply basted, shall, for their total weight, be 
liable to the duties leviable on the principal component tissue on their 
most visible exterior part, plus a surtax of 100 per cent. 

Articles of hosiery specially mentioned shall not be liable to the pay- 
ment of the surtax for making up. 

166. Tissues of unbleached silk per cent ad valorem.. 25 

167. Tissues of silk or floss silk : 

Not mixed with any other material — 

Plain, not figured, twilled, or serged — 

a. Black do 25 

b. Colored t do 25 

168. Figured, plushy or velvety do.... 25 

* Tarns and threads of all kinds of vegetable fibers combined in any proportion 
with threads of common metal shall be dutiable according to this number. Those 
combined with gold or silver shall be subject to the corresponding numbers of 
group 1, Class II. 

t Tissues consisting of black yams combined with colored yams shall be consid- 
ered as colored tissues. 

U624 — 3 Digi^i,3d by Google 



34 

169. Mixed with another material : 

Plain, not figured, twilled, or serged— 

a. Mixed with cotton or other vegetable fibers, -per cent ad 

yalorem ^ 

h. Mixed with wool or hair per cent ad valorem . . 25 

170. Figured, plushy or velvety do.--. 25 

171. Knitted stnffs of boiled silk, of unbleached silk ; or of floss silk, made up 

in any kind of article : 

a. Of pure silk per cent ad valorem.. 25 

b. Mixed with other textile materials do 25 

172. Tulles of silk or floss silk, pure or mixed : 

a. Plain do 25 

b. Figured or embroidered on the loom do 25 

173. Lace tulles for borders and blondes, of silk or floss silk, plain or figured : 

a. Not mixed per cent ad vidorem.. 25 

b. Mixed with cotton or other vegetable fibers do 25 

174. Trimmingsof silk* do 25 

CLASrf VIII.— Paper and its applications. 
Group 1. 

175. Paper pulp,t G. W 100 kil.. $0.15 

Group 2. — Printing and tcriting paper, 

176. Paper, endless or in sheets, white or colored, uncut and unprinted, for 

printing purposes, T. (Disp. VI, rule 5) 100 kil . . 2. 00 

177. Paper, endless or in sheets, white or colored, used for wrapping purposes, 

T. (Disp. VI, rule 5) 100 kil.. 1.25 

178. Paper in sheets, unruled, unprinted, and uncut, white or colored, used for 

writing purposes 100 kil.. 4.00 

Group 3. — Paper, printed, engraved, or photographed. 

178a. Books bound or unbound, and similar matter t 100 kil . . 1. 25 

179. Headed paper, forms for invoices, labels, cards, and the like, T. (Disp. VI, 

rule 5) kilog-. .10 

180. Prints, maps, charts, etc., drawings, photographs, and engravings; pic- 

tures, lithographs, chromolithographs, oleographs, etc., used as labels 
and wrappers for tobacco or other purposes: 

a. Of a single printing and bronze or leaf, including labels printed only 

in bronze or leaf, T kilog.. .(6 

b. Of two printings and bronze or leaf, T do 20 

c. Of three to ten printings (inclusive) and bronze or leaf, T do 40 

d. Of more than ten printings and bronze or leaf, T do 80 

Group 4. — Wall paper, 

181. Wall paper, printed: 

a. On natural ground, T. (Disp. VI, rule 5) 100 kil.. 4.00 

ft. On dull or glazed ground, T. (Disp. VI, rule 5) do 6.00 

c. With gold, silver, wool, or glass, T. (Disp. VI, rule 5) kilog.. .25 

* See Disp. IV, rules 8 and 12. 

t This number only includes paper pulp perforated in such manner as to be fit only 
for the manufacture of paper or pasteboard. Should the pulp not be i>erforated, the 
customs will cut it at the expense of the importer, in order to render it unserviceable 
for any other purpose. Pulp not perforated is dutiable as common pasteboard. 

t Bookbindings shall be dutiable according to the component material. When the 
books are stitched or bound in boards, they shall be dutiable as printed matter on 
gross weight. 

o ^ uigiiizea Dy ^.^j v/v./^^i\^ 



35 

Group 5. — Pasteboard and various papers, 

182. Blotting paper, oommon packing paper, and sand or glass paper, T. (Disp. 

VI, rule 5) '. 100 kU- $1.50 

183. Thin paper, of common pulp, for packing fruit, T. (Disp. Y I, rule 5) . do 1. 50 

184. Other paper not specially mentioned, T. (Disp. YI, rule 5) do 3. 00 

185. Pasteboard in sheets : 

a. Cardboard paper and fine, glazed, or pressed cardboard, T. (Disp. 

VI, rule 5) 100 kil.. 3.00 

b. Other pasteboard, T. (Disp. VI, rule 5) do l.OO 

186. Manufactures of pasteboard : 

a. Boxes lined with ordinary paper, T. (Disp. VI, rule 5) do 1. 00 

b. Boxes with ornaments or lined with fine paper, T. (Disp. VI, rule 5), 

kilog 22 

c. Articles not specially mentioned, T. (Disp. VI, rule 5) kilog.. . 15 

187. Paste and carton-pierre : 

a. In moldings or unfinished articles, T. (Disp. YI, rule 5) 100 kil . . 1. 00 

b. In finished articles, T. (Disp. VI, rule 5) kilog. . . 15 

Class IX. — Wood and other vegetable materials employed in industry, 

AND ARTICLES MANUFACTT7RED THEREWITH. 

Group 1.— TTood. 

188. Staves thousand.. $0.80 

189. Ordinary wood : 

a. In boards, deals, rafters, beams, round wood and timber for shipbuild- 
ing cubic meter.. .40 

6. Planed or dovetailed, for boxes and flooring; broomsticks and cases 

wherein imported goods were packed, G.W 100 kil.. .16 

190. Fine wood for cabinetmakers : 

a. In boards, deals, trunks, or logs, G. W do 1.20 

b. Sawn in veneers, T. (Disp. VI, rule 5) do 1.75 

191. Coopers' wares : 

a. Fitted together, G. W do 65 

b. In shooks, also hoops and headings, G. W do 36 

192. Wood, cut, for making hogsheads or casks for sugar or molasses, 

G.W 100 kU.. .06 

193. Latticework and fencing, G.W do 60 

Group 2. — Furniture and manufactures of wood, 

194. Common wood manufactured into joiners' wares, and articles of all kinds, 

turned or not, painted or not, varnished or not, but neither chiseled, 
inlaid, nor carved, T. (Disp. VI, rule 5) 100 kil.. 4.75 

195. Fine wood manufactured into furniture or other wares, turned or not, 

polished or not, varnished or not, and fVimiture and oommon wooden 
wares veneered with fine wood ; furniture upholstered with tissue (other 
than with silk or stuffs containing an admixture thereof, or with leather), 
provided that the articles specified in this number be neither chiseled, 
carved, inlaid, nor ornamented with metal, T. (Disp. VI, rule 5) . 100 kil. . 12. 00 

196. Furniture of bent wood, T. (Disp. VI, rule 5) do 12.00 

197. Battens: 

a. Molded, Tarnished, or prepared for gilding, T. (Disp. VI, rule 5), 

100 kil 5.05 

b. Gilt or carved, T. (Disp. VI, rule 5) kilog.. .20 



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196. Wood of any kind manufactured into ftimitnre or other waren, gilt, chis- 
eled, carved, inlaid, or yeneered with mother-of-pearl or other fine mate- 
rialB, or ornamented with metal, and fhmitnre upholstered with stuffs 
of pure or mixed silk, or leather, N. W kilog.. $0.60 

Group 3.—Variou$. 

199. Charcoal, firewood, and other vegetable fti^l, G. W 1,000 kU.. 1.50 

900. Cork: 

a. In the rough or in boards, G. W 100 kil.. 1.40 

fr. Manufactured, T. (Disp. yi,rule5) do 4.50 

901* Bushes, vegetable hair, cane, osiers, fine straw, palm and genista, raw, 
raw esparto, and baskets and other common wares of esparto, G. W., 

100 kil 1.10 

Baskets wherein imported goods were packed shall be dutiable accord- 
ing to this number, with a rebate of 60 per cent. 
202. Esparto manufactured into fine articles; rushes^ vegetable hair, cane, 
osiers, fine straw, palm and genista, manufactured into articles of all 
kinds not specially mentioned, T. (Disp. VI, rule 6) 100 kil. . IS. 10 

Clash X.— Animals and animal wastes employed in industbt. 

Group l,^JnimaU, 
208. Horses and mares : 

a. Above the standard height each.. 20.00 

h. Other do.... 10.00 

204. Mules do.... 10.00 

206. Asses do 1.00 

206. Bovine animals : 

a. Oxen do 4. 00 

6. Cows do 3. 60 

0. Bullocks, calves, and heifers do 3. 00 

207. Pigs do.... 1.00 

208. Sucking pigs do 50 

209. Sheep, goats, and animals not specially mentioned do 1. 00 

210. Singing birds, parrots, etc per cent ad valorem.. 25 

Group 2. — Bides, skins, and leather wares, 

211. Pelts in their natural state or dressed, G. W kilog.. .96 

212. Hides and skins, green or not tanned, G.W do 02 

Wet-salted hides and skins shall enjoy a reduction of 60 per cent in 

respect of salt and moisture. 
Dry-salted hides and skins shall be allowed a rebate of 30 per cent. 

213. Hides tanned with the hair, G. W kilog.. .15 

214. Hides tanned without the hair: 

a. Cow and other large hides, whole, G. W kilog.. .16 

h. Other and backs of large hides, G. W do 16 

215. Hides and skins curried, dyed or not : 

a. Sheepskins (basils), T. (Disp. VI, rule 5) kilog. . . 16 

Calf or goat skins, T. (Disp. VI, rule 5) do 20 

c Kid, lamb, or young calf skins, T. (Disp. VI, rule 5) do 80 

d. Cow and other large hides, whole, T. ( Disp. VI, rule 5) do 16 

e. Backs of large hides and hides and skins not specially mentioned, T. 

(Disp. VI, rule 5) kilog.. .20 



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216. Hides and skins, vamisfaed, satiny, grained, dalled, and hides and skins 

with figures, engravings, or embossed, T. (Disp. VI, rule 5)....kilog. . $0.30 
Leather out out for boots and shoes or other articles shall be liabJe to a 
surtax of 30 per cent of the respective duties leviable thereon. 

217. Chamois leather or parchment of all kinds and gilt or bronzed hides and 

skins, T. (Disp. VI, rule 5) kilog.. .40 

218. Gloves of skin, T. (Disp. VI, rule 5) do.... 2.50 

219. Shoes of cowhide and similar leather : 

a. For men dozen.. 1.25 

6. For women do 1.00 

c. For children, below size 4i do 75 

220. Shoes of patent and similar leather : 

a. Formen do 1.40 

h. For women do 1.10 

c. For children, below size^ do 90 

221. Boots of calfskin, with elastics, or for lacing : 

a. Formen do.... 2.50 

b. For women do 1.50 

0. For children, below size 4i do.... 1.00 

222. Boots of patent and similar leather : 

a. Formen do 3.00 

b. For women, and top-boots ("polacas") do 3.50 

c. For children, below size ^ do..., 2.50 

223. Other boots and shoes, fancy do.... 4.00 

224. Riding boots pair.. 1.00 

225. Sandals dozen.. .25 

226. Saddlery and harness makers' wares ; valises, hat boxes, and traveling 

bags of cardboard or leather, T. (Disp. VI, rule 5) kilog. . . 20 

227. Other manufactures of leather or covered with leather, T. (Disp. VI, 

rule 5) kilog.. .25 

Group 3,— Various. 

228. Feathers for ornament, in their natural state or manufactured, N. W., 

kilog 2.00 

229. Other feathers and feather dusters, T. (Disp. VI, rule 5) kilog. . . 40 

230. Intestines, dried, N. W do 2.00 

231. Animal wastes, unmanufactured, nut specially mentioned, G. W . . 100 kil . . .50 

Cla.88 XI.— Instruments, machinery, and apparatus employed in agricul- 
ture, INDUSTRY, AND LOCOMOTION. 

Group 1. — Instruments. 

232. Pianos i"* 

a. Grand per cent ad valorem.. 25 

b. Other do.... 25 

233. H^urmoniums and organs do 25 

234. Harps, violins, violoncellos; guitars and mandolins with incrustations; 

flutes and fifes of the ring system ; metal instruments of 6 pistons or 
more; detached parts for wind instruments of wood or copper, per 
cent ad valorem 25 

235. Musieal instruments, other per cent ad valorem.. 25 

236. Watches: 

a. Of gold; also chronometers do 25 

b. Of silver and other metals do 25 

* Strung frames for pianos shall be liable to the oorresponding duty leviable on 
pianos, though they be not imported with all the pieces constituting that instrument. 

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287. Clocks with weights, aod alarm clocks per cent ad valorem . . 25 

238. Works for wall or table clocks, finished, with or without oases *" . . .do 25 

Qroup 2. — Apparatus and machines. 

239. Weighing machines per cent ad valorem.. 15 

240. Machinery and apparatus for making sugar and braudy t do ... . 10 

241. Agricultural machinery and apparatus t $ per cent ad valornm . . 10 

242. Steam motors, stationary t do 15 

243. Marine engines; steam pumps; hydraulic, petroleum, gas, and hot or com- 

pressed air motors ....per cent ad valorem.. 15 

244. Boilers: 

a. Of sheet iron per cent ad valorem.. 15 

b. Tubular do 15 

245. Locomotives and traction engines do 15 

246. Turntables, trucks, and carts for transshipment, hydraulic cranes and 

columns per cent ad valorem.. 15 

* Finished or spare parts of steel are comprised in No. 48. The same parts of other 
metals or alloys shall be dutiable according to the component material. 

Cases, stands, bell Jars, and pther accessories shall be dutiable as manufactured 
articles according to their class. 

Clockworks for wall or table clocks, unfinished, shall be taxed according to No. 65. 

Unfinished pieces are those which are only roughly filed, with no escapements, the 
wheels of which are not adjusted and the last wheel not crenated. 

When clockworks are imported within cases, on stands, etc., and the importer 
does not wish to separate them for examination, the works and the dial will be 
reckoned as weighing 1 kilogram, and the rest shall be dutiable conformably to the 
preceding paragraph. 

t This number includes : 

1. The following articles, whoever be the importer : 

Weighing machines (platforms) for weighing sugar cane ; complete machines of 
all kinds for crushing sugar cane ; steam crushers ; complete apparatus for diffusion ; 
purifying apparatus ; clarify ing apparatus ; reservoirs for sirup or molasses; filters 
and filtering apparatus; apparatus called ^'trenes jamaiquinos,'' complete; ftimaces 
for making animal black; steam desiccators; centrifugal machines; vessels called 
'^bombonas,'' ''cachimbas^' (kind of kettle to transfer cane sirup from oue vessel into 
another), skimmers, distributers, and sugar molds; copper apparatus or vessels 
C'tachos^') acting in vacuum, also their machines, pipes, and cocks, of copper or 
iron; polariraeters. 

2. The following articles, when imported directly by planters, on proof of the 
installation thereof in their establishments : 

Steam plows; stills; donkey engines, with or without pumps; gasometers for 
lighting the works ; material for portable railways ; carts for the conveyance of cane 
and the output of the works. 

t For the application of duty it should be observed : 

a. That the machine must be complete. Complete machines include tubes (^uses), 
belting, etc., which form an integral part of such machines, but no spare parts. 

h. That spare parts ai*e^ dutiable according to No. 247 when of copper, and to No. 
251 in all other cases. 

0. That to be considered as complete, machines must be Imported in one sole ship- 
ment. Machines imported in two or more shipments shall be liable to the duties 
stipulated in Nos. 247 and 251, except in the case when a previous and special 
authorization has been granted by the collector at the chief port. 

$ The machines and apparatus mentioned in this number are those employed by 
farmers and agriculturists for preparing the ground and gathering the crops; also 
those employed in order to clean the crops and improve them without essentially 
changing their nature. 



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247. Machines of oopper and its alloys; detached parts of the same metals/ 

pep cent ad valorem 15 

248. Dynamo-electric machines, electric motors^ and all other electric machines 

andapparatas percent ad valorem.. 15 

249. Sewing machines and detached parts thereof do 10 

250. Velocipedes do 10 

251. Machines and apparatus, other, or of materials not specially mentioned, 

also detached parts of all kinds other than of copper or its alloys,! per 
cent ad valorem 15 

Group 3.— Cairia^e*. 

Note. — Carriages and other vehicles (except those for the conveyance 
of goods) imported in the rongh or prepared for upholstering or paint- 
ing shall pay the duties corresponding to their class, with a rehate of 
40 per cent, provided that the stipulated conditions be complied with. 

252. Coaches and berlins, new, used, or repaired : 

a. With fonr seats, and calashes with two 'Hableros,'' per cent ad 

valorem 40 

b. With two seats, with or without folding seat ; omnibuses with more 

than 15 seats; diligences per cent ad valorem.. 40 

e. Four or two wheeled, without '* tableros," with or without hood, 
irrespective of the number of seats; omnibuses up to 15 seats; car- 
riages not specially mentioned per cent ad valorem . . 40 

253. Railway carriages of all kinds for passengers, and finished wooden parts 

for same per cent ad valorem.. 15 

254. Vans, trucks, and cars of all kinds ; miners' trolleys, and finished wooden 

parts for same per cent ad valorem.. 15 

255. Tramway carriages of all kinds, and finished wooden parts for the 

same per cent ad valorem.. 15 

256. Wagons, carts, and hand carts do 15 

Group 4. — Vessels, 

Note I. — The duties on ships include likewise those levied on anchors 
hedges, cables and chains, barometers, chronometers, binnacles, com- 
passes (loose and fixed), speaking trumpets, telescopes, casks, cordage, 

* Machines and separate pieces of the same, of copper and its alloys, with part of 
other materials, shall also be taxed under this heading, provided the above metals 
predominate in weight. 

tit will be necessary to prove to what manufacture or to what industry spare 
-woolen hose and filters are destined in order to be assessed according to this number. 

For the definition of parts of machinery the following rules must be observed : 

1. A separate piece of a machine is understood to be any object which is not 
expressly specified by name under some heading of the tariff, and which by its shape 
and by the manner in which it is presented for clearance in the custom-house, though 
not completely finished, may be considered as exclusively destined to a machine and 
can have no other application. If it be imported completely finished, it must pay 
under one of the headings of the tariff referring to machinery. 

2. Tubes, bars, axles, screws, bolts, sheets, plates, boiler bottoms, wire, and other 
articles expressly taxed in the tariff must pay duty accordingly, though they be 
destined to machinery. 

3. Tools, instruments, and utensils employed in the arts, agriculture, and industry 
can not be considered as parts of machinery for the application of duty, and must 
pay according to the materials of which composed. 



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sails and masts, necessary for the manoenvers and safety of yeeeels, with 
dne regard to their class. All other articles ^hall be liable to the duties 
leviable thereon. 

Note II.— Duties on steam TesAels shall be levied on the total number 
of tons which may result from the official measurement, and no separate 
duty shall be levied on machinery which shall be considered an integral 
part of the vessel. 

The certificate of tonnage shall temporarily serve as a basis for levy- 
ing duty on vessels entering from abroad. The interested parties must 
present to the customs authorities a certificate of measurement approved 
by the inspector; but it is understood that the customs authorities will 
not consider the clearance and payment of the duties as finally settled 
until this formality has been complied with and noted. 

National ships lengthened in foreign dockyards mast, on their return, 
pay duty on the additional tonnage. 

Vessels refitted with engines abroad shall pay a fiscal duty of 9S per 
horsepower when it is impossible to ascertain the weight of the new 
machinery. 

Boilers and accessories thereof, funnels, tubes, etc., changed abroad 
shall be liable to a fiscal duty of $3 per each square meter of heating 
surface. 

Vessels undergoing other repairs in foreign ports shall, on their return, 
pay duty on the material employed for the purpose. 
256a. Salvage from wrecked vessels is prima fade dutiable on appraised value, accord- 
ing to its material.* 

Class XII.— Alimentary substances. 
Group 1. — Meat and fish, butter and greanes. 

257. Poultry, live or dead, and small game, N. W kilog.. $0.03 

258. Meat in brine, N. (Disp. VI, rule 4) : 

a. Beef, brine or salt, N. W 100 kil.. 1.26 

h. Pork, brine or salt, N. W do 1.25 

259. Lard,N.W do.... 1.70 

260. Tallow,N.W do.... 1.20 

261. Bacon,N.W do.... 2.40 

262. Ham,N.W do.... 8.30 

263. Jerked beef ('*ta8ajo"),N. W do.... 2.60 

264. Meat of all other kinds, T. (Disp. VI, rnle 5) : 

a. Beef, canned, N. W do 3.00 

6. Beef,fre8h,N.W do.... 2.70 

0. Mutton, fresh, N. W do 2.70 

d. Pork, fresh, N. W do.... 2.40 

265. Butter and oleomargarine, N. W. ; T. (Disp. VI, rule 5) do 4. 20 

266. Cheese, N.W do.... 3.00 

267. Condensed milk per cent ad valorem.. . 10 

268. Salt cod and stock fish, G.W.; T. (Disp. VI, rule 4) 100 kil.. .50 

269. Herring, pickled, smoked, salted, or marinated, N. W do 60 

270. Mackerel, pickled, smoked, salted, or marinated, N.W do 1. 00 

271. Salmon, canned, smoked, salted, or marinated, N.W do ... . 5. 00 

272. Oysters of all kinds, and shellfish, dried or fresh, 6. W do 50 

273. Eggs..*. do 3.00 

* The tackle, apparel, furniture, etc., of a vessel wrecked at sea, and the cargo of a 
vessel wrecked on the coast of Porto Rico and abandoned for two years, are exempt 
from duty. Underwriters may be recognized as owners for the purposes of entry. 

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Group 2,^CereaU, 

274. Rice, husked or not, T. (Disp. VI, rnle 5) 100 kil... $0.60 

275. Wheat, N.W do 60 

276. Cereals: 

a. Corn,N. W do 18 

ft. Rye,N. W do 24 

c. Barley,N. W do 30 

d. Oat8,N. W do 24 

277. Flour: 

a. Of wheat, T. (Disp. VI, rule 5)* do.... 1.00 

6. Of rice, T. (Disp. VI, rule 5) do 1.00 

c. Of com, N. W do 30 

d. Of oats, N.W do 72 

Group 3. — PuUe, garden produce, and fruits. 

278. Beans,N. W t lOOkil.. .66 

279. Pease, N.W do 66 

280. Oiiion8,N. W do 42 

281. Potatoes, N. W do 30 

282. Flour of pulse, T. (Disp. VI, rule 5) do.... 1.50 

283. Fruits, fresh, T. (Disp. VI,rule5) do 36 

284. Apples, fresh, N. W do 36 

285. Fruits, dried or drained, T. (Disp. VI, rule 5) do 90 

286. Apples, dried, N. W ...do 90 

Group 4.— 5<?ed« and fodder, 

287. Clover,N. W lOOkil.. 2.10 

288. Flax, N.W do 60 

289. Timothy, N.W do.... 1.20 

290. Fodder and hran per cent ad valorem.. .15 

Group 5. — PreserveM. 

291. Fish or shellfish, preserved in oil or otherwise, in tins, per cent ad 

valorem 15 

292. Vegetables and pulse, pickled or preserved in any manner, per cent ad 

valorem 15 

293. Fruits, preserved : 

a. In brandy per cent ad valorem . . 15 

&. Other do.... 15 

294. Alimentary preserves not specially mentioned ; pork butchers' wares, truf- 

fles, sauces, and mustard per cent ad valorem.. 15 

Group 6. — Oils and beverages, 

295. OHveoil: 

a. In receptacles of earthenware or tin, G. W. ; T. (Disp. VI, rule 4), 100 

kil 1.50 

h. In bottles, inclnding the weight of bottles, G. W.; T. (Disp. VI, 

rule 4) 100 kil.. 2.00 

296. Alcohol, 8. T. (Disp. VI, rule 14) hectol.. 14.00 

* To ascertain whether products presented for clearance should be considered as 
flour or semolina, a sample must be passed through a sieve No. 80, composed of silk 
tiMue, preeenting 80 holes to the square inch or square of 27 millimeters. Should 
the product pass through this sieve it shall be dutiable as flour; in contrary oases 
as semolina. ^ . 

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297. Brandy and all compound apirita not specially mentioned : 

a. In casks, S. T. (Disp. VI, rule 14) hectol..$21.00 

6. In bottles or flasks, 8. T. (Disp. VI, rule 14) do 34.00 

0. Rum, in casks do 18.00 

d. Whiskies, in casks do 10.00 

298. Wines, sparkling, 8. T. (Disp. VI, rule 15) -....liter.. .85 

299. Liqueurs and cordials : 

a. In casks or similar receptacles, S. T. (Disp. VI, rule 15) do 18 

6. In bottles, 8. T. (Disp. VI, rule 15) do 36 

300. Wines, other: 

a. In casks or similar receptacles, S. T. (Disp. VI, rule 15) hectol.. 4.50 

h. In bottles, 8. T. (Disp. VI, rule 15)..... do.... 13.00 

301. Beer and cider: 

a. Malt liquor, in casks (Disp. VI, rule 16) do 3.30 

6. Malt liquor, in bottles (Disp. VI, rule 16) do 3.66 

0. Cider do 1.60 

Group?. — Various, 

302. 8afiEron, safflower, and flowers of " tobar " per cent ad valorem . . 15 

303. Cinnamon of all kinds do.... 15 

304. Cinnamon, Chinese (**oanel6n"), cloves, pepper, and nutmegs, per cent 

ad valorem 15 

305. Vanilla per cent ad valorum.. 15 

306. Tea(Di8p. VI, rule5), kilog.. .20 

807. Coffee in the bean or ground; chicory roots and chicory, T. (Disp. VI, 

rule 5) 100 kil.. 12.00 

308. Cocoa of all kinds, in the bean, ground, or in paste ; cocoa butter, T. (Disp. 

VI, rule 5) 100 kil.. 5.00 

309. Chocolate and sweetmeats of all kinds, including the inmiediate pack- 

ages percent ad valorem.. 25 

310. Pastes and feculse for soups and other alimentary purposes, per cent ad 

valorem 15 

311. Biscuits: 

a. Ordinary, T. (Disp. VI, ruleS) 100 kil.. .60 

h. Fine, of all kinds, including the immediate package, T. (Disp. VI, 

rule 5) 100 kU.. 2.50 

312. Honey per gallon.. .20 

318. Molasses do 06 

314. 8ugar, raw per pound.. .015 

815. 8ugar, refined do 02 

316. 8accharine do 1.50 

Class XIII.— Miscellaneous goods. 

317. Pans: 

a. With mountings of bamboo, reeds, or other wood, T. (Disp. VI, 

rule 5) kilog.. .15 

h. With mountings of horn, bone, composition, or metal (other than 

gold or silver), N. W kilog.. .60 

c. With mountings of tortoise shell, ivory, or mother-of-pearl; also fans 

of kid skin, silk tissue, or feathers, N. W kilog.. .80 

318. Trinkets and ornaments of all kinds, except those of gold and silver, ' 

N.W kilog.. .76 

319. Amber, jet, tortoise shell, coral, ivory, and mother-of-pearl : 

a. Unwrought, N. W kilog.. 1.00 

h. Wrought,N. W do.... 1.80 



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320. Horn, whalebone, celluloid, meerschaum, aud bone; also oompositious . 

imitating these materials or those of the preceding number : 

a. Unwrought, N. W kilog.. $0.60 

h. Wrought, N.W do.... 1.20 

321. Walking sticks and sticks for umbrellas and parasols * hundred . . 5. 00 

332. Buttons of all kinds other than gold or silver, N. W kilog.. .20 

323. Hair, human, manufactured into articles of all kinds or any shape, N. W., 

kilog 6.00 

324. Cartridges, with or without projectiles or bullets, for unprohibited fire- 

arms ; also primers and caps for such arms, T. ( Disp. V I, rule 5) . . 100 kil . . 30. 00 

325. Tarpaulins coated with sand, for vans; felts and tow, tarred or coated 

with pitch, G. W 100 kil.. .28 

326. Oilcloths: 

a. For floors and packing purposes, T. (Disp. VI, rule 5) do 3. 00 

b. Other, T. (Disp. VI, rule 5) kilog.. .06 

Pads and brief cases of oilcloth shall be liable to a surtax of 40 per 

cent. 

327. Cases: 

a. Of fine wood or leather, lined with silk ; other similar oases, N. W., 

kilog 75 

h. Of common wood, cardboard, osier, and the like, N.W kilog . . .20 

328. Artificial flowers of tissue, also pistils, buds, leaves, and seeds, of any 

kind of material, for the manufacture of flowers, N. W kilog . . 1. 00 

829. Matches of wax, wood, or cardboard, including the immediate packages, 

N. W kilog.. .20 

330. Caoutchouc and gutta-percha manufactured in any shape or into any 

kind of article not specially mentioned, T. (Disp. VI, rule 5) kilog . . .05 

331. Games and toys, other than those of tortoise shell, ivory, mother-of-pearl, 

gold, or sUver, T. (Disp. VI, rule 5) kilog.. .10 

832. Umbrellas and parasols : 

a. Covered with silk t each.. .40 

5. Other do 20 

333. Oil paintings percent ad valorem.. 25 

334. Hats of straw or ''guano'' bast, straw of Cura^oa, and the like.. dozen.. 2.00 

835. Hats of ''yarey,'' leghorn or Indian straw, rice straw or esparto, and 

their imitations dozen . . 3. 00 

836. Hats known as '' jipijapa,'' having : 

a. Up to 4 straws, inclusive do 4.50 

h. Of from 4 to 6 straws, incli^sive do 8.00 

c. More than 6 straws do 30.00 

337. Hats of woolen felt: 

a. Shaped or not, but without ribbons, borders, or lining, and shapes for 

the manufacture of these hats dozen.. .40 

h. Finished, with ribbons, borders, or lining, or with either of these 
accessories dozen . . .80 

338. Hats of felt of hair, carded or not, and those of silk, velvet, cloth, cash- 

mere, satin, or plush : 
a. Shaped or not, but without ribbons, borders, or lining, and shapes for 

the manufacture of these hats dozen.. .75 

h. Finished, with ribbons, borders, or lining, or with either of these 
accessories dozen.. 1.00 

* Sword sticks shall, for the swords, be liable to the duties leviable on foil blades, 
and in addition the duty on walking sticks shall be collected. 

t Umbrellas and parasols shall always be dutiable according to the tissue with 
which covered and not the tissue with which lined. 

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339.. Hate for ladies or children^ with whatoTer kind of trimmings or accesso- 
ries each.. $0.40 

840. Caps of all kinds dozen.. .40 

341. Waterproof and caoutchouc staffs : * 

a. On cotton tissne, T. (Disp. VI, rale 5) kilog.. .25 

6. On woolen or silk tissue, T. (Disp. y I, rale 5) . i ...: do... .50 

Class XTV.— -Tobacco. 

342. Tobacco: 

a. In cakes, so-called ^'breva," or in carrots.... 100 kil.. 10.50 

h. In powder or snuff, or otherwise manufactured per lb . . .12 

0. Leaf tobacco, stemmed or unstemmed, whether wrapper or filler, per 

pound : 5.00 

d. Cigars, cigarettes, cheroots of all kinds, $4.50 per pound and 25 per 

cent ad valorem. 
Paper cigars and cigarettes, including wrappers, shall be subject to 

the same duties as are herein imposed on cigars. 

Class XY. — Abticles not bnubibratbd as providbd for. 

343. On all other goods, wares, merchandise, and effects, not otherwise enu- 

merated or provided for, except crude materials . . per cent ad valorem . . 25 
343a. On crude materials, not otherwise enumerated do 10 

* Ail articles coated with caoutchouc on one or both surfaces, as well as those 
with an interior lining of caoutchouc, are included in this number. 



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FREE LIST. 



The undermentioned articles may be imported into Porto Rioo exempt from the 
dntiee stipnlated in the tariffs on compliance with the prescribed conditions and the 
formalities established for CTcry case in the customs ordinances : 

344. Manores, natural. 

345. Trees, plants, and moss, in natural or fresh state. 

346. National products returning from foreign exhibitions, on presentation of the 
bin of lading or certiflcate proving their exportation frtmi the island and of satis- 
faotory evidence attesting that such products have been presented and have been 
shipped to their point of departure. 

347. Carriages, trained animals, portable theaters, panoramas, wax figures, and 
other similar objects for pnblie entertainment, imported temporarily, provided bond 
be given. 

348. Beceptacles exported from Porto Rico with fruits, sugar, molasses, honey, and 
brandy, and reimported empty, including receptacles of galvanized iron intended 
for the exportation of alcohol. 

349. Specimens and collections of mineralogy, botany, and zoology; also small 
models for public museums, schools, academies, and scientific and artistic corpora- 
tions, on proof of their destination. 

350. Used fdmiture of persons coming to settle in the island. 

351. Samples of felt, wall paper, and tissues, when they comply with the following 
conditions : 

(a) When they do not exceed 40 centimeters in length, measured in the warp or 
length of the piece, even when such samples have the entire width of the piece. 
The width shall, for tissues, be determined by the list, and for felts and wall paper 
by the narrow border which has not passed through the press. 

(h) Samples not having these indications shall only be admitted free of duty when 
they do not exceed 40 centimeters in any dimension. 

(o) In order to avoid abuse, the samples declared for free entry must have cuts 
at every 20 centimeters of their width, so as to render them unfit for any other 
purpose. 

352. Samples of. trimmings in small pieces, of no commercial value or possible 
application. 

353. Archaeological and numismatical objects for public museums, academies, and 
scientific and artistic corporations, on proof of their destination. 

354. Works of fine art acquired by the Government, academies, or other official 
corporations, and intended for museums, galleries, or art schools, when due proof is 
given as to their destination. 

355. Gold in bars, powder, or coined ; also national silver or bronze coins. 

35S, Wearing apparel, toilet objects, and articles for personal use, bed and table 
linen, books, portable tools and instruments, theatrical costumes, jewels, and table 
services bearing evident trace of having been used, imported by travelers in their 
luggage in quantities proportionate to their class, profession, and position. 

45 

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857. When travelers do not bring their baggage with them, the clearing of the 
Bame may be made by the conductor or persons authorized for the purpose, provided 
they prove, to the satisfaction of the customs, that the effects are intended for 
private use. 

358. Stone* unwrought, for paving purposes. 

358. Plows, hoes, hatchets, machetes, cane knives, etc., for agricultural purposes, 
and other agricultural implements not machinery. 

360. Quinine, sulphate and bisulphate of, and all alkaloids or salts of cinchona 
bark. 

361. Books, maps, and scientific instruments, for the use of schools. 

362. Mineral, carbonated or seltzer waters, natural or artificial, root beer, ginger 
ale, and other similar nonalcoholic beverages, not otherwise provided for. 

363. Fresh fish. 

364. Second-hand clothing donated for charitable purposes to needy persons, and 
not for sale. 

365. Tar and mineral pitch, asphalts, bitumen, and schists.* 

366. Oleonaphtha, crude natural petroleum and crude oils derived from schists. t 



* The following shall be considered ] 

(a) Crude oil derived from schists, those obtained from first distillation, distin- 
guishable by their density of from 900 to 920 thousandths of a degree, or from 66 to 
57i of the centesimal areometer, equal to from 24 degrees and 69 hundredths to 21 
degrees and 48 hundredths Cartier. 

(b) Crude and natural petroleum, that imported in the state in which found when 
extracted from the well, and which has undergone no operation whatever whereby 
the natural chemical composition is altered or modified. When gradually and con- 
tinuously distilled up to a temperature of 300^ C, this petroleum must leave a resid- 
uum exceeding 20 per cent of its primitive weight. (Also, see note at head of Class I, 
Group 3.) 

t Crude mineral oils mixed with animal oils, as well as crude mineral oils mixed 
with vegetable oils, when these oils are exclusively destined to lubricating machines, 
are likewise free. (Also, see uote at head of Class I, Group 3.) 



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APPENDIX TO THE REPORT AND RECOMMENDATIONS ON THE 
CUSTOMS TARIFF OF THE ISLAND OF PORTO RICO. 



The following is a list of the reports, memorials, statements, and 
letters in relation to the customs tariff of Porto Eico, all of which are 
herewith submitted as part of the special report on the customs tariff 
and revenue of the island of Porto Bico. 

Leonard Dasbyshibe, 

Secretary to the Commission, 

Report of Commisaioner Robert P. Porter to the honorable Secretary of the 
Treasury, Lyman J. Gage, September 3, 1898. 

Letter of Messrs. Miller, Bull & Knowlton to Commissioner Robert P. Porter. 

Memorial of merchants representing 80 per cent of the merchants doing business 
in New York with Porto Rico, presented to Commissioner Porter, August 10, 1898. 

Letter of A. M. Seixas to honorable Secretary of the Treasury, Lyman J. Gage, 
August 10, 1898. 

Letter of George R. Mosle, of Mosle Brothers, to Commissioner Porter, August 10, 
1898. 

Letter of Messrs. Harvey and Outerbridge to Commissioner Porter, August 9, 1898. 

Letter of A. S. Lascelles & Co. to Commissioner Porter, August 20, 1898, 

Letter of A. S. Lascelles &. Co. to Commissioner Porter, August 29, 1898. 

Letter of E. O. Schemikow, of Marcus Mason & Co., to Commissioner Porter, 
August 29, 1898. 

Statement of Javier Mariani, of Ponce, Porto Rico, August 29, 1898. 

Letter of L. W. <& P. Armstrong to Commissioner Porter, September 22, 1898. 

Letter of The Thomas Iron Company to Commissioner Porter. September 22, 1898. 

Statement of Felipe Pelaez, of Havana, October 1, 1898. 

Letter of F. Q. Barstow to Commissioner Porter, October 11, 1898. 

Letter of The Seeger <fe Guernsey Company to Commissioner Porter, October 13, 
1898. 

Letter of Edwin F. Atkins to Commissioner Porter, October 27, 1898, inclosing 
letter of Whitney, Pousland & Co. 

Letter of Consul Philip C. Hanna, San Juan, Porto Rico, to Assistant Secretary 
of State Moore, November 17, 1898. 

Letter of B. D. Thomer to the honorable Secretary of the Treasury, December 17, 
1898. 

Letter of F. Q. Barstow to Commissioner Porter, December 10, 1898. 

Letter of C. W. Lyman, secretary American Paper and Pulp Association, to Com- 
missioner Porter. 

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Tbbasuby Dbpabtment, 
Offiob of the Special. Gommissioneb fob the 

United States to Cuba and Pobto Rico, 

September 5, 1898. 
Hon. Lyman J. GAas, 

Secretary of the Treasury, Washington, 2>. 0. 

Sm: Before following your instructions and leaving for Oaba and 
Porto Bico, I bave the honor to inform you that I have thoroughly 
exhausted the several avenues of information in New York in relation 
to our commerce, present and future, with the island of Porto Bico. 
Aside from official and general information contained in reports, I have 
called a number of conferences of those engaged in trade with the island, 
and have not only obtained considerable testimony which will be of 
value when I visit Porto Bico, but which T am sure will aid your Depart- 
ment and the President in shaping the fiscal policy for the newly 
acquired island. It is not my intention at this time to burden you with 
the undigested information from this end of the line until I have been 
able to supplement it with my inquiries in Porto Bico and weave the 
whole into a connected report. 

As a somewhat serious question has arisen in relation to the tariff 
just promulgated by the United States for Porto Bico, I have decided 
to put you in possession of certain facts which may be of value to the 
Department in my absence, the merchants interested in Porto Bico 
trade having protested against the present tariff and declared it more 
disadvantageous to trade with this country than the customs tariff 
declared in force in Cuban ports in possession of the United States. 
The duties, they claim, which are assessed under the Porto Bico tariff 
just promulgated upon American and other foreign products, are very 
high, and in fact they believe much too high for the prosperity of the 
X>eople, and higher than is necessary to produce a revenue sufficient to 
de&ay the expenses of a government honestly administered. This fEict, 
together with a request to immediately reduce the present tariff upon 
imports into Porto Bico 50 per cent, has been laid before you and, I 
believe, before the President. In my opinion, considerable weight 
should be given this clear and forcible document, a copy of which is 
appended to and forms a part of this preliminary report. 

It is more than probable that the merchants will appeal to you dur- 
ing my absence in Porto Bico and Cuba and ask for relief. If you 
should regard their appeal in a favorable light (and it appears on its 
face well founded and just), I thought it important that you should 
have a summary of the facts thus far obtained before you for reference. 
On the other hand, it may be decided that the wiser course will be to 
leave matters as they stand until I shall have made a full and impar- 
tial inquiry in Porto Bico and shall be prepared to rejwrt on the whole 
subject. During the week just ended I have had several conferences 
with Porto Bico merchants in New York, and on Monday last a second 



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^neral gathering of merchants was held, in which many of those 
whose names are attached to the admirable report already laid before 
3roa were present, and in addition thereto merchants who have jnst come 
from Ponce and San Jnan. These gentlemen unanimously express 
their surprise at the severity of the tariff promulgated for Porto Eico, 
based on what is supposed to be the minimum Spanish tariff. This, 
they contend, leaves Porto Rico at a decided disadvantage with Cuba, 
something which these gentlemen believe they are sure you and the 
President did not foresee. There are, as you know, only two columns 
.in the Spanish tariff' for Porto Rico, and in this respect the old tariff 
entirely differed from the tariff of Cuba. The first column of the 
Porto Rico tariff related to goods imported from countries having no 
commercial understanding with Spain. The second column was for 
goods from countries having a commercial understanding with Spain, 
and it was under this column that all goods from the United States 
ports were admitted. Thus these merchants contend that the United 
States Government is simply continuing tbe tariff as it existed before 
the occupation, whereas in the case of Cuba it has enacted a tariff 
which gives the people in the ports in the possession of the United 
States a decided advantage over those now compelled to pay the rates 
of duties exacted for goods coming from ports, other than those of 
Spain iiito Cuban ports still held by Spain. 

You will remember that the consensus of opinion of the merchants 
engaged in Porto Rico trade who signed the document already sub- 
mitted by me to you was that it was well enough to enact for tempo- 
rary purposes the Porto Rico tariff which has been enacted, but in so 
doing a horizontal reduction of 60 per cent should have been made, in 
order that Porto Rico should be placed upon something more akin to 
the ports of Cuba now in possession of the United States. Under the 
present Porto Rico tariff flour will have to pay $4 per 100 kilograms; 
coal, 33 cents per 1,000 kilograms; and agricultural machinery, which 
the merchants hope will ultimately be admitted free of duty, will have 
to pay from 65 cents to $1.10 per 100 kilograms. These gentlemen 
also notice with regret that the export duties have been retained, 
Under the present Cuban tariff in force in ports in possession of the 
United States the importer has to pay only $1.60 per 100 kilograms for 
floor. 

I have had considerable testimony submitted showing that it would 
be entirely safe from a revenue point of view to thus reduce these rates 
60 pei" cent. I will, however, only trouble you with one of these state- 
ments, which seems to me an exceptionally intelligent one, by Mr. Javier 
Mariani, a merchant of Ponce, who was present at the conference last 
Monday. I respectfolly ask you to read Mr. Mariani's statement. As 
I have not yet been able to frdly examine this question of revenue, you 
win readily understand that I should not care to offer any suggestions 
to the Department on this point. I will therefore submit these facts, 
11624 i Cooale 

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with the assurance that at the earliest possible moment I will lay before 
you such data as I am able to collect in Porto Bico bearing on this 
whole subject. Meantime it might be both advisable and prudent to 
temporarily reduce the Porto Eico customs duties as at present col- 
lected 50 per cent. Undoubtedly I shall be able to lay before you the 
data upon which a tariff bringing in sufficient revenue for all purposes 
of an economical and honestly administered government could be 
framed in time to promulgate it the first of the year. Thus such action 
as is suggested by the merchants would not seriously impair the reve- 
nue, while it might greatly encourage the people of the island. How-, 
ever this may be, the merchants seem to have a good reason for their 
dissatisfaction when they find themselves obliged to pay a rate of duty 
considerably higher than that exacted by the United States on goods 
entering Cuban ports in the possession of our Government. 
All of which is respectfully submitted. 

Robert P. Pobtbr, 

Commissioner. 



The New York and Porto Rico Steamship Company, 

Nei€ York, August P, 1898. 
Mr. Robert P. Porter, 

No. 160 Broadway^ New Yorlc. 

Dear Sir: We beg to state that the Porto Rico merchants present 
this morning at the meeting at our office were: Mr. Benj. Odio and Mr. 
Salizar, representing A. S. Lascelles & Oo.; Mr. A. M. Seixas; Mr. 
Henry Bestej Mr. Charles P. Armstrong, of Messrs. L. W. & P. Arm- 
strong; Mr. Carlos Armstrong, of Ponce, Porto Rico; Mr. George B. 
Mosle, of Messrs. Mosle Brothers, and Mr. Bamett, representing 
Messrs. Holt & Co. 

The only firm doing a large business with Porto Rico absent was 
that of J. Sala & Co., who, unfortunately, could not have one of their 
members here. 

These gentlemen represent ftilly 80 per cent, if not more, of the mer- 
chants doing business in New York with the island of Porto Rico, and 
they have all been in this business for many years past, and their 
opinion on the subject of a Porto Rico tariff would without doubt 
thoroughly voice the unanimous opinion of the business men of this 
city. 

We have managed and own the only line of steamers running between 
this country and Porto Rico for the past eight or ten years, and we 
know that as soon as tariff and monetary conditions can be adjusted 
there is a large and growing trade awaiting our people. 

We therefore beg that you will do all that you can to hurry this 
adjustment along, and if we can be of any service to you, do not hesitate 
to call upon us. 

Yours, respectfully, W. B. Knowxton. 

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51 

New Yoek, August 10, 1898. 

Hon. EOBEET P. POETEB, 

United States Commissioner to Cuba and Porto Rico. 

Sib: The undersigned merchants interested in Porto Eico trade^ 
having met, in accordance with your suggestion, for the purpose of dis- 
cussing matters in connection with that trade, with the view of throw- 
ing all possible light in the direction of steps to be taken by the 
Government of the United States to establish a system of revenue for 
that island, beg leave to present to you the result of that deliberation. 

We believe that when the island shall become permanently annexed 
to the United States and the legislation necessary to accomplish same 
shall have been adopted, the United States tariff laws will naturally be 
extended to Porto Eico. In the meantime it is imperative that some 
measures shall be adopted immediately which, although of a temxK)- 
rary or transitory character, may regulate the business and give guar- 
anty to the trade to a certain degree of what rates of duties are to be 
imposed for a definite length of time, without which assurance it is to 
be feared trade would come to a standstill. This necessity of a tariff 
brings at once into discussion so many different questions that we have 
to recognize the fact at the outset that no satisfactory solution can be 
reached immediately or until a sufficient study of the present condi- 
tions will afford the knowledge requisite to a wise conclusion. Among 
such questions the following may be enumerated: 

1. The relative value of food and the providing of same at a low cost 
to the laboring population, influenced as this must be to a large extent 
by the amount of tax placed upon it in the form of tariff duties. 

2. The discrimination which may be necessary in order to preserve 
this market for our manufacturers competing against manufacturers of 
other countries where labor is cheaper and goods are made of inferior 
quality. 

3. The advisability of permitting the importation free of duty of min- 
eral coal and all machinery, appliances, and implements for the build- 
ing up and maintenance of the sugar and coffee interests of Porto 
Eico, and also of railroad material and equipment so necessary to 
develop the natural resources of the island. 

4. The extension of the navigation laws to the trade between the 
United States and Porto Eico with regard to excluding foreign bottoms. 

As to meet these and other questions would require time and study, 
we are of the opinion that the wisest course is simply to reduce the 
duties which have heretofore been charged upon imports into the island 
to a basis conformable to those which have already been adopted for 
Cuban ports in the possession of the United States and to the means 
of the population. 

The duties which have been assessed upon American and other for- 
eign products under the second — (the most favorable) column of the 
Porto Eican tariff are very high — we believe much too high for the 



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prosperity of the people, and higher than is necessary to prodace a 
revenue sufficient to defray the expenses of an honest and economical 
administration. 

To the best of oar knowledge and belief the Porto Eico tariff at 
present rates has been yielding a yearly revenue of about $2,400^000 
provincial money. It may be conceded that with lower rates the imports 
will increase considerably, and a calculation of income at $1,800,000, 
estimated on present rates reduced by 50 per cent, should be considered 
conservative, bearing also in mind that Spanish products, which are 
now free of duty, except that they are charged 10 per cent of the sec- 
ond column, will continue to some extent to be imported after the 
establishment of peace, and will then pay the same rates of duty as 
similar products from all nations. We should explain here that the 
present tarifl* for Porto Eico is the one proclaimed by royal decree of 
April, 1892, during the reciprocity treaty with the United States, 
according to which decree trade from Spain to Porto Eico was made 
practically coastwise. 

It is also to be borne in mind that customs duties have been payable 
in the provincial currency of the island, which consists of a silver dol- 
lar and fractions thereof, not interchangeable with other Spanish coin, 
whose gold value has fluctuated constantly and enormously, to the 
great detriment of the commercial and agricultural interests of the 
island. This gold value is estimated at present in the neighborhood 
of 50 cents gold to the provincial dollar. We believe that the Govern- 
ment of the United States is about to declare an official rate of exchange 
in order to facilitate business locally for the time being. 

We have also taken into account that trade with one of the ports of 
the island — namely. Ponce — has already commenced since the military 
occupation. It would be manifestly unjust that discrimination should 
result against early importations, and to avoid this it is desirable that 
our Government should without delay instruct the proper authority of 
Porto Eico in consonance with any decision made with reference to 
rates to be charged, so that such early shipments may be protected to 
the extent of any reduction in duties, either by means of facilities for 
warehousing in bond or by refunds on such goods imported since the 
reopening of the ports and actually in stock at the time of the adoption 
of a reduced schedule of duties. 

There are certain articles of legitimate commerce the importation of 
which is now prohibited under rule 11 of the Porto Eico tariff. Such 
iffticles are not, therefore, included in the schedule of duties, and it 
would be advisable to open the door to their importation, excepting, of 
course, those classified as against public morals under section 7 of said 
rule 11. 

There are not at present sufficient American vessels of suitable size to 
take off the products of the island during the height of the crop season, 
small vessels being absolutely necessary to carry on the trade under 
existing conditions. 

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Having: had all these points under consideration, we would respect- 
fully suggest the following recommendations : 

1. To immediately reduce the tariff upon imports into Porto Rico 50 
per cent ftom that which has heretofore been the law. 

2. That legitimate articles of commerce now prohibited under rule 
11 of the Porto Eico tariff be admitted to entry upon payment of duties 
at 25 x)er cent ad valorem. 

3. That the duties be made payable either in United States coin or in 
Porto Rico currency, at the option of the importer, the latter kind of 
money to be received at a ratio with gold to be fixed by the Government. 

4. Tbat tonnage dues be reduced exactly in the manner already 
declared by the Government for Cuban ports. 

5. That to the free list be added: (1) Mineral coal; (2) agricultural 
machinery, appliances, and implements; and (3) material, machinery, 
ftnd equipment for railroads. 

6. That any change to be made in the future should, if possible, be 
preceded by at least two months' notice, in order that merchants may 
accommodate themselves to its new features. 

7. That provision be made to equalize duties upon merchandise 
actually in stock and in possession of the importer, which had been 
imported since the United States military occupation, by a refund of 
tbe difference between the duties assessed at the time of importation 
and the rates fixed by the new tariff*. 

8. That whatever may be decided hereafter with reference to ship- 
ping, no regulation be adopted now whidi would prevent the exporta- 
tion from Porto Rico to the United States of the products of the 
island in foreign bottoms. 

9. That all export taxes be abolished. 

Tbe undersigned expect to furnish you later, either jointly or sever- 
ally, their views upon the question of the currency of the island, whidi 
requires further deliberation, preferring not to defer the presenta- 
tion of above considerations and recommendations with reference 
to the tariff, which require immediate resolution at the hands of the 
Government. 



Respectfully, yours, 



A. S. Lasoellbs & Co. 
A. M. Sbixas. 
Morales & Co., Ponce. 
MOSLE Bbothebs, 

16 Exchange PlacCj New York. 
Holt & Co., Kew York. 
L. W. & P. Armstrong. 
Henry Bbstb. 
Carlos Armstrong. 
Miller, Bull & Knowxton, 
J. Sala & Co., 
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54 

August 10, 189a 
Hon. Lyman J. Gage, 

Secretary of the Treasury^ WaahingtoUj D. C, 

Sir : At an informal conference held yesterday, between Mr. Robert 
P. Porter and merchants representing 80 per cent of the exx>ort trade 
with the island of Porto Rico, Mr. Porter, who had come with instrao- 
tions from His Excellency the President, desired to learn our views 
concerning a temporary tariff and a currency for that island, in order 
to lay those views before the President. 

Our views as to a temporary tariff are embodied in a communication 
handed to Mr. Porter, while those relating to the currency it was 
decided by the conferees should be presented to you in individual 
communicatious, to be communicated to His Excellency the President. 

About twenty-five years ago United States gold coin and Spanish 
gold coin were plentiful in Porto Rico, and the rate of exchange on 
NjBw York rarely rose above 5 per cent premium between crop times. 

When slavery was by Spanish law abolished in the island, to the 
French syndicate making the loan towards indemnifying the planters 
was granted the privilege of making the advances in imported Mexican 
dollars (silver). All the gold then began to leave the island, and soon 
none was left in it, and the exchanges commanded even higher rates. 

A few years ago Spain determined to endow Porto Rico with a cur- 
rency, with the double end iu view of checking the alarming rise in the 
exchanges and of putting an end to the fraudulent importations of 
Mexican dollars. In pursuance of this plan she retired the Mexican 
dollars, the further importation of which she prohibited, and in lieu 
thereof substituted a coin of intrinsically less value, and stamped with 
a special stamp on one side the Spanish escutcheon surrounded with 
the legend "Isla de Puerto Rico — 1 peso=5 pesetas," thus barring this 
provincial money from circulation in the mother country, and taking 
an additional step toward the alienation of the colony from her. 

.As the value of silver in the markets of the world remained depressed, 
the device brought no relief, and the exchanges rose still further, 
attended by wide fluctuations, the highest, of that on New York, 
reaching a premium of 85 per cent. I do not mention the interval of 
this war, when it went as high as 125 per cent premium, owing to war 
scare, etc 

We are thus confronted with about 4,000,000 provincial Porto Rico 
(silver) pesos, about which something must be done in the new rela- 
tions which, happily for Porto Rico, will now exist between it and the 
United States. 

One of our conferees suggested a double value-face dollar for the 
island (50cent gold and lOO-ceiit Porto Rico). 

This idea seems to me to involve the objectionable and embarrassing 
feature of establishing by this Government for one of its Territories 
or States, as may be, a ratio between the two metals, while, on the 

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contrary, the aim should be to establish there immediately exactly the 
same forms of money carrent in our own country, guided by the 
principle, ^'one flag, one currency." 

On my part I ventured to suggest, as the simplest, least perturbing, 
least costly, and at once leading to the equal interchange of our three 
forms of currency, the plan of giving to Porto Eico our own American 
(silver) dollar in exchange for their provincial (silver) "peso,'' the 
difference in cost and the expense to be charged to the island, to be 
paid by it in a certain number of years (yearly installments), with the 
interest added. 

The intrinsic value of the (silver) "peso'' is about 41 cents. The 
difference in cost and the expense, therefore, of the retirement and sub- 
stitution is a relatively small matter, which Porto Rico can well afford 
to pay, without doubt will gladly pay, for a stable currency that will 
relieve her from the evils and losses incident to wide fluctuations in 
the exchanges, of which she has been the victim for so many years. 

It is to be borne in mind that, whichever the new currency may be 
that is introduced into Porto Eico, she will inevitably have to pay for 
such an exchange, provided said currency is better and confers greater 
benefits than her old currency. 

In this connection it may not be amiss to quote the following trans- 
lated paragraph from a letter dated 31st of last month of one of my 
correspondents at Ponce, Porto Eico, which reflects correctly the feel- 
ing prevalent throughout the whole island: 

In order to think immediately of what business could be done, it is necessary that 
our new Government decided something in respect of the exchanging of the money; 
that is to say, that it is necessary to decide upon something in the economic condi- 
Mons of this country to the end that we may know in what form (''en que forma'') 
we may continue to work. 

I have the honor to be, your obedient servant, 

A. M. Sbixas, 
80 Wall Street. 



Offiob of Moslb Bros., 
New Yorky August 10^ 1898. 

Hon. EOBBBT P. POETEB, 

Special Oommissionerj etc. 
Dbae Sib: In fhrther discussion of the subject debated by eight of 
us merchants with you yesterday we had a meeting in the governor's 
room of the Produce Exchange here this morning and have succeeded 
in formulating a rather brief Joint expression of our views as to the 
most desirable method for arranging a temporary tariff in the island 
of Porto Eico during our military occupancy or until such time (prob- 
ably after the meeting of the next Congress) as that island can be 
treated as an integral part of the United States national territory. 



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The principal object we have had in view has been to facilitate the 
prompt agricoltaral and commercial development interrupted by the 
present war. 

Our joint communication will be sent to you to-morrow, but I desire 
to write a few lines, as you kindly suggested that an expression of 
personal opinion would also be welcome t-o you. 

Our firm has dealt in Porto Eico as exporting and importing commis- 
sion merchants from New York, and as bankers, for about twenty years, 
and we have found that by far the greatest volume of trade between that 
island and the United States was reached during the three years of 
** reciprocity," under President Harrison's Administration. During 
those years manufactures, food products, machinery, etc., from this 
country, to a great extent, supplanted in Porto Eico articles of similar 
kinds that had previously been introduced tliere from Europe. 

On the assumption that the island will presently become an integral 
part of our own country, it is my belief that the trade between our main- 
land and the island can be most thoroughly developed to the mutual 
advantage of the islanders and of our manufacturers, producers, and 
shippers here by the entire removal as soon as possible of all duties, 
inward or outward, between Porto Eico and our mainland. The bene- 
ficial results of bringing Porto Eico just as soon as possible under our 
national customs service would be felt even as far as our Pacific coast, 
for I am convinced that our cheap Galifornian clarets and other wines 
would speedily supplant the Spanish low-grade wines that are largely 
drunk by the entire population of Porto Eico, as they are also in Cuba. 

It seems to me that the complete incorporation of the island into our 
customs system at an early date would be the greatest and most thor- 
ough aid in that assimilation of the Porto Eicans into our own body 
politic and commercial that we feel is so great a desideratum in terri- 
tory under our national flag. 

With regard to the currency system to be instituted in Porto Eico, it 
seems to me that a gradual withdrawal by redemption of the present 
currency in circulation could be accomplished at a relatively small cost, 
the Porto Eico circulation to-day not exceeding 5,000,000 pesos, or 
Spanish dollars. But pending such withdrawal or substitution of our 
United States currency for circulation, I think no wiser or more practi- 
cal plan has yet been submitted than that of Secretary Gage. Thie 
coining of pieces of silver bearing on one side, for instance, a United 
States 50^cent device and on the reverse side a Porto Eican dollar 
device would speedily teach even the more ignorant classes who handle 
such money in their daily business transactions the equivalent or 
parity between the old and new coinage. 

Trusting that you will pardon this frank expression of opinion from 
one who has been many years engaged in the trade, and appreciating 
your kindness in consulting us merchants before determining upon a 
tariff, I remain, 

Tours, very sincerely, Geq. E. Mosle. 

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Office op Habvby & OuTEBBBioaE, 

New York J August P, 1898. 
BOBBBT P. PoBTBB, Esq., 

No. 160 Broadway, New York. 
Dbab Sib: Mr. Knowlton, of Messrs. Miller, Ball & Enowlton, has 
given us your name and address and asked ns to write yon in reference 
to the prohable tariff arrangement for Porto Eico as soon as it comes 
nnder the military control of the United States. We formerly were 
large shippers of dry salted codfish in the Porto Eico market, where it 
forms a large item of consumption for use on the plantations, being 
specially adapted to hot climates, as it will keep better than most other 
kinds of provisions. The duty on this article in Porto Eico, as in other 
Spanish West India ports, has always been excessively high. It has 
been assessed at the rate of 90 cents per 100 kilos, Spanish gold, and as 
gold is always at a very high premiam there, it really made the dnty 
equivalent to doable that rate. As the quality of fish sent to Porto 
Eico largely averaged about 2J cents per pound, you can readily see 
that the duty was a very high perceotage of the first value of the goods. 
A reduction of this duty to about 10 per cent will no doubt largely 
increase the trade and be of great value to the business, if, indeed, the 
goods can be made free, which we think they should, being exclusively 
the food of the poor people. 

We remain yours, respectfully, 

Habvby & OuTEBBBiDas. 



Gopfbb Exchange, 
New York, August 20, 1898. 

Hon. EOBBBT p. POBTEB, 

160 Broadway, New York. 

Dbab Sib: We beg to acknowledge receipt of your valued favor of 
the 10th instant, for the interesting conteots of which we are sincerely 
obliged. 

Our opinions in reference to the Porto Eico currency have been 
embodied in a communication signed by our Mr. Salazar, which he sent 
direct to the Hon. Lyman J. Gage, Secretary of the Treasury, as he 
understood that it should be so addressed. We will send you a copy 
of same on Monday for your information, and we trust you will find it 
agreeable to your own views on the subject. 

We have been utterly surprised to see by to-day's papers that the 
Government has promulgated the tariff for Porto Eico, based on what 
is stated to be the minimum Spanish tariff. On looking at the sched- 
Tiles it appears that what has been adopted is the minimum Spanish 
tariff for foreign goods. 

We thought it was well understood that there were only two columns 
in the Spanish tariff for Porto Eico, which is eutirely different from the 
Oaba tariff. The first column of the Porto Eico tariff was for goods 
imported ftom countries having no commercial understanding with 

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Spain; the se<^iid colamn was for goods from countries having a com- 
mercial understanding with Spain, and it was under this second oolumn 
that all goods from United States x)orts were admitted, so that it 
appears that the United States Government is simply continuing the 
tariif as it existed before the occupation, whereas the consensus of 
opinion of the merchants who signed the letter addressed to yoa was 
that this tariff should be adopted temporarily at 50 per cent reduction 
as it is. We give it as an example that a bag of flour will have to pay 
$4 per hundred kilograms; coal will have to pay 33 cents per thousand 
kilograms, and agricultural machinery, which we supposed was going 
to be admitted free of duty, will have to pay from 65 cents to $1.10 per 
hundred kilograms under sections 306 and 308, with the aggravation that 
under the interpretation which was given to section 312 by the Spanish 
authorities, parts of machinery, for whatever purpose, will have to pay 
$4.90. Under this interpretation we have heard of cases where the 
amount of duties was far in excess of the cost of the parts which were 
imported for the purpose of repairing machinery which had been 
imported under the other sections. We also notice that the export 
duties have been retained. We were in hopes that all such would 
have been abolished forthwith. 

We shall always be glad to do everything in our power to assist you 
in elucidating matters connected with the Porto Eico trade, as we filly 
appreciate the desire of yourself and of the Administration to do every- 
thing possible in the direction of fostering the commercial, indnstrial| 
and agricultural interests of the island, and we are naturally very 
anxious to see the prosperity which will no doubt soon come to the 
island under the guidance of the United States. 
Yours, respectfully, 

A. S. Lascellbs & Go. 

P. S. — Goods from Spain were fi^e of duty, except that temporarily 
they had to pay a tax equal to 10 per cent of the duties on second 
column for foreign goods. 

August 29, 1898. 

Hon. BOBEBT P. POBTBB, 

United States Commissioner to Cuba and Porto Rico. 
Deab Sib: To give a very rough idea of the difference that it will 
make to Porto Eico to change certain lines of goods from the fr^e list 
to the dutiable list, it is only necessary to call attention to the four or 
five principal articles on page 32 of Bulletin No. 13 of the United 
States Department of Agriculture, giving the average importations 
from Spain for the five years 1892-1896, as follows: 

Bice $243,087 

Olive oil 238,378 

Wines 133,328 

Chick-peas 127,360 

Canned goods 124,999 



Total 

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It may be estimated that these goods, on the quantities represented, 
i^ould bring into the Treasury revenue as follows : 

Rice $62,500 

Olive oil 52,500 

Wines 187,500 

Chick-peaa 48,000 

It is impossible to estimate the amount on canned goods from the 
statistics, because they are so varied in grades and articles and pack- 
ages, but on a very rough calculation, based on the fact that at least 
50 per cent of the value is the rate in general, at least $50,000 in taxes 
would be derived from this article. Following the same basis, it may 
be estimated that the remaining articles specified on page 32 of said 
bulletin, amounting to very nearly $500,000, the duty collectible under 
the present tariff promulgated by the President would be in the neigh- 
borhood of $250,000. 

On page 33 of the same bulletin are found the values of the nonagri- 
cultural products exported from Spain to Porto Rico, and without 
going far into the figures it will be seen that the average yearly impor- 
tations are: 

Cotton fabrics $1,581,706 

Leather and leather goods 871, 187 

Soap.. 257,227 

It may be estimated that these articles, coming from Spain, would 
have to pay, under the second column of the Porto Eico tariff, about 
as follows: 

Cotton fabrics $750,000 

Leather and leather goods : 35,000 

fioap 100,000 

In the same list, page 33, will be found the averages of all other 
articles imported into Porto Bico from Spain, aggregating in the neigh- 
borhood of $1,150,000, the duty on which, at the lowest calculation of 
60 per cent of the value, would bring a revenue of $576,000. 

It can be readily seen that if we had time to follow up the estimates 
it would be shown that an immense amount of money will be collected 
by the Porto Rico custom-house from goods which have heretofore been 
imported free of duty, and at least $1,800,000 is the result of the fig- 
ures above. We therefore come to the conclusion that if the tariff as 
at present promulgated by the President is reduced to 50 per cent, 
even leaving machinery, coal, and railroad materials free, it would be 
a very conservative estimate to say that the revenue will be more than 
ample for all the expenses of the Government. Actual experience will 
show a vast difference between collecting duties as per tariff and col- 
lecting duties for the benefit of the officials, in the amount of revenue 
derived. 

Eespectfully, A. S. Lasobllbs & Co. 



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60 

Office of Mabcus Mason & Co., 
Produce Exchange^ New TarJcj August 29 j 1898. 
Mr. EoBEBT E. Porter, 

United States Commissioner to Cuba and Porto Rico, 

My Dear Sir: Your favor of August 25, with copy of the Porto 
Bican tariff, was duly received, and am obliged for your kind attention. 

On the tariff as a whole I can not express an opinion; at the same 
time, those who should be authorities claim that a 50 per cent reduction 
immediately would be both beneficial and just. Machinery, I think, 
should all come under the same classification and rate of duty when 
the same is to be employed for agricultural purposes, and no discrimi- 
nation should exist, as now, in favor of sugar machinery. Motors, with 
or without boilers, should be classed as agricultural machinery when 
used in combination with such, or pay the same duty. 

Nos. 310-312, relating to Nos. 69 and 70, re agricultural machinery, 
etc., should be abolished, as the conditions are detrimental to trade. 
Parts should be admitted at the same rate as complete machines, and 
there should be no penalty or obstacle in shipping a plant of machinery 
in such lots as may be ready for dispatch. 

Eepeating my thanks for your attention, I remain, dear sir, yours, 
very truly, 

E. O. Scherkikow. 



L 



Monday, Augmt 29^ 1898. 

The following is a statement made by Mr. Javier Mariani, merchant, 
of Ponce, Porto Eico : 

Under the present Spanish tariflf, Spanish goods pay no duty except- 
ing a temporary charge of 10 per cent of the rates of the second column, 
which applies to foreign goods. As Porto Eico will still continue to 
import the same goods, either from Spain or the United States or any 
other country, it follows that the consuming public will have to pay so 
much more taxes as the amount of duties on tbe goods which have 
heretofore come in free will foot up, and therefore tbe taxation as pre- 
scribed by the Government will be much higher than it has been in the 
past. For instance, cotton goods and textiles of all kinds, knit goods, 
which are principally imported from Spain, will form a heavy item in 
the present revenue, but heretofore practically paid no duty. 

The revenue derived from imports is supposed to be about 2,400,000 
pesos, which was sufficient for the expenses of the Government, even 
though the administration was, as is well known, very faulty. The 
administration was expensive. Included in the budget was the charge 
for the maintenance of the church and clergy. If this item is eliminated, 
it follows that so much less revenue will be required to carry on the 
Government. There are also other things which can be considered in 
the same light which do not at present occur to the speaker. Among 



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61 

these are the pensions paid to retired officers of the army and navy and 
officers of the civil administration, their widows and orphans. 

The idea of recommending the adoption of a tariff for Porto ftico 
similar to the one promulgated by the Government for Cuba has been 
discussed, but not having time to consider the various items and the 
effect which such a change may have on Porto Bico, it does not seem 
wise to adopt any other system in haste, and the only conclusion is, 
that following the lines of the present tariff and reducing the rates by 
50 per cent, as recommended in the previous report, every considera- 
tion of fairness can be realized without too much jarring on the trade 
and customs of Porto Eico. It is to be borne in mind that the people 
there are accustomed to the styles and &bric8 of the Spanish goods 66r 
wearing apparel, shoes, saddlery, etc. Also for food stuffs and wines, 
which are consumed in large quantities at comparatively low prices, 
they being free of duty, and if, according to the tariff promulgated by 
the Government, they continue consuming the same goods and have to 
pay a heavy tax great discontent must follow. 



Office of L. W. & P. ABMSTBONa, 

New Yorkj September J22, 1898. 

Mr. BOBEBT p. POBTEB, 

United States Commissioner. 

Deab Sib : Your very interesting letter was duly received, and we 
note from same and from the reports in the newspapers that you are 
actively engaged in Cuba in investigating the condition of affairs there 
with reference to the United States tariff, and we suppose that at 
an early date you will go to Porto Rico to pursue your investigation 
there, not only as regards the tariff, but the currency also. 

Mr. Carlos Armstrong, whom you met in New York, sails for Ponce, 
Porto Rico, on the 8th October, and will be very glad to give you all 
assistance in his power when you get to Ponce. We have also written 
all our correspondents in the island that you are coming and asked 
them to extend to you all facilities they can to enable you to arrive at 
correct conclusions. 

All the merchants here are very anxious to see a reduction made in 
the present tariff on goods imported into Porto Eico, and which they 
feel is too high, and which was enforced under some misunderstanding. 
The Department has decided to await your report before taking any 
steps in the matter, and we trust, therefore, that circumstances will 
permit you to make such a report at an early date, as we feel sure, from 
conversations had with you in New York, that you wiU coincide with 
the views of the merchants as to the desirability of reducing the present 
i^tes of duty. We shall be glad to be of any assistance to you, and beg 
of you to call freely upon our friends in Porto Rico for such informa- 
tion as you may wish. 



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Without further of interest, and trusting to be favored with a reply, 
we remain, 

Yours, very truly, L. W. & P. Abmstbong. 



Office of The Thomas Iron Company, 

Hokendauqtuij Pa.y September 22^ 1698. 

Hon. BOBEBT P. POBTEB, 

United States Commissioner. 
Deab Sib: Replying to your favor of the 14th with respect to oar 
views on the amendment of the present import tariff schedule of Cuba 
and Porto Bico, we would state that we are emphatically in favor of a 
tarift to these islands that will admit free of duty pig iron and the 
wares of iron. We further believe that there should be a discrimina- 
tion in favor-of the United States. This, we think, should be reached 
by a remission of duties when goods are imported in American bot- 
toms. Also admission of Cuban ore free of duty to the United States. 
Yours, truly. 

The Thomas Ibon Company. 



POBTO bico TABIFFS. 

A commission of Porto Eico merchants met in New York and asked 
that the tariff now in force in that island should be allowed to continue, 
only reducing the rates 50 per cent. 

This commission alleges that the expenses of the budget will be con- 
siderably diminished by the absence of the expenses due to religion, 
clergy, and pensioners. They expect that the receipts will exceed the 
expenditures. 

These reasons are not well founded, as such expenditures will be 
more than compensated for by the necessary improvements in the pub- 
lic works, post-offices, telegraph, etc. The Cuban tariff should be 
applied to Porto Eico, otherwise there can be no coasting trade between 
the two islands. 

The relations between the two islands and the United States should 
be the same, because, although both will be greatly benefited, Cuba can 
offer more in compensation to the United States shipping trade and 
commerce. 

With the application of the tariffs to both islands in the way men- 
tioned an indirect tax would be charged on foreign goods. 

This would be all these countries would desire, and the present rela- 
tions with the United States perfectly allow the reduction of duty on 
articles of first necessity. Besides, economic laws are in accordance 
with these measures, which would contribute to the promotion of agri- 
culture, industry, and commerce and diminish the cost of living. If 



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63 

the adopting of these measures by the custom-hoases at Porto Eico 
could produce enough to cover the expenditure of its budget, it would 
be privileged by being the only country that could afford to suppress 
all direct taxation. 

The protection which is now given to certain Spanish goods should 
be respected, among other reasons because failing to do this would 
promote English, German, and French industry to the detriment of 
the interest of American manufactures. 

Fblipe Pelabz. 

Havana, October i, 1898. 



New York, October 11^ 1898. 
Hon. EoBEBT P. PoBTBB, Commissioner^ etc. 

My Dbab Sib: We have seen by the papers that you have returned 
from Cuba, and write to say that if there is anything further in the 
way of information which we can furnish in connection with our busi- 
ness there, or if we can in any way be of service to you, we shall be 
very glad indeed to have you so advise us. 

We would like to say, if we may, in connection with the Porto Eico 
duty, that we have been placed at a serious disadvantage there by the 
temporary adoption of a tariff on oil which was signed by the Queen in 
April, 1892, but was never put in force inasmuch as the negotiations 
for the reciprocity treaty were concluded, so that in July, 1892, the new 
tariff in accordance with the reciprocity treaty took effect. This tariff 
gave us free crude and imposed a duty of $5.20 less 25 per cent, leav- 
ing $3.90 plus Beaume clause averaging $1.20, making a total duty of 
$5.10 x>er 100 kilograms for refined. 

At the expiration of the reciprocity treaty the refined oil was left the 
same, viz, $5.20, but without deducting the 25 per cent, while there 
was added a 10 per cent transitory so that the net total duty on refined 
oO was $5.72, while on the crude there was imposed only a total duty 
of $1.10 i>er 100 kilograms, and these rates of $5.72 for the refined and 
$1.10 for the crude have been in force ever since, and until our forces 
took i>ossession of Ponce, when the American Administration estab- 
lished the same duties for oil as ordered by the 1892 tariff, though as 
explained heretofore, it had never been put in force. Instead of the 
duties as per modification of the tariff and which have been in force 
ever since and up to the occupancy of the island by our forces, viz, 
$1.10 for crude and $5.72 for refined per 100 kilograms. It is a ques- 
tion of a few days, we suppose, when the whole island will be under 
American administration and if this wrong is not corrected we may be 
obliged to close up the works and discharge all our men. 

I call your attention to the above situation in hopes that through 
your kind oflBces it may be corrected. 

Yours, truly, P. Q. Babstow. 

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64 

Office of The Sbbobe & Guernsey Co., 

New York, October 13, 1898. 
Hon. Robert P. Porter, 

United States Commissioner to Cuba and Porto Bico. 

Dear Sir: Your favor of September 29, dated Havana, is at hand. 

In compliance with your kind invitation to make snggestions as to 
any desirable changes in the tariff covering ports in Cuba in possession 
of the United States that may occur to us, we would confine ourselves 
to the following: 

Under the heading of machinery, on pages 47 and 48, we believe it 
will be most desirable that even the small duty of 50 'cents per 100 kilo- 
grams on machinery and apparatus for making sugar and brandy 
(article 239) should be removed, so that such machinery could be 
admitted entirely free of duty, including all the other apparatus fct 
sugar plantations included in the footnote marked with a dagger on 
page 47. We would also go further and recommend that other machin- 
ery than that designed for sugar plantations, including 240, 241, 243, 
244, 247, and 250, should be put on the free list. An excellent prece- 
dent for this policy can be found in the Mexican tariff as it was in force 
during the years when the industrial development of that country was 
getting under way. All machinery run by power was admitted free of 
duty under the Mexican tariff, and even now there is only a duty of 
1 cent, Mexican silver, or say, less than one-half a cent of our money, 
duty per kilogram on all power machinery. 

If not desirable to put on the Oubau free list all classes of machinery, 
as above recommended, we would suggest that at least all power 
machinery should be put under the same classification as article 239, 
at 50 cents per 100 kilograms. 

We also desire to mention a fact that may have already been brought 
to your attention, namely, the hardship to which the importing mer- 
chants in Porto Bico are at present subject by reason of the ftill tarifT, 
according to the second column, being imposed upon all importations 
in Porto Bico, not only from this country, but Spain and all other 
countries. You are doubtless aware that previous to the war, while 
this second column applied to the United States and other favored 
nations, the imports from Spain were only subject to 10 per cent of the 
second-column tariff. The result is that the tariff now is well-nigh 
prohibitive, and this is a bad thing not only for Porto Bico but also, we 
believe, for our own interests. 

We have spoken with prominent merchants in Porto Bico and corre- 
sponded with them on this subject, and in fact it has been brought to our 
notice by them. It would seem a fair settlement of the matter provi- 
sionally if duties of, say, 50 per cent of those charged in the second 
column should be assessed pending such arrangement as may be con- 
cluded in the future. 

It seems unfortunate that at the outset of the occupation by the 



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65 

United States of Porto Eico, business should be confronted with such 

an obstacle as the present heavy iDcrease in the rate of duty on imports^ 

Yours, truly, 

The Seegeb & Guernsey Go.^ 

By G. L. Seegeb, President 



Washington, D. C., October 27^ 1898. 
Hon. Egbert P. Porter, New York City. 

Dear Sir: At request of my neighbors, Messrs. Whitney, Pousland 
& Co., of Boston, I submit a letter written by them to me regarding 
the Porto Eican business. 

For many years past their correspondents in Halifax have been 
engaged in the shipment of fish from that point to Porto Eico, invest- 
ing the proceeds of these shipments in Porto Eico sugars, which have 
been sent to Boston and landed there for sale. 

As the shipping business of Porto Eico has now become coastwise, 
these sugars can not be brought into the United States ports in British 
bottoms. 

Owing to recent tariif legislation in the Dominion of Canada the 
sugars from British colonies are admitted at reduced duties, so exclud- 
ing the Porto Eico sugars fr*om Halifax market. Owing to the United 
States navigation laws these British vessels can not be transferred to 
the United States flag, and the Halifax merchants are in a fair way of 
being forced out of the business, which in the past has proved profitable 
to them as well as advantageous to the port of Boston. 

I beg to submit the above, without any suggestion on my part, for 
your consideration. 

Very respectftilly, yours, 

Edwin F. Atkins. 



Office of Whitney, Pousland & Co., 

• BoBtotiy October 24, 1S98, 
Edwin F. Atkins, Esq., Boston, Mass, 

My Dear Mr. Atkins : Referring to our last evening's conversation, and in con- 
nection with your visit to Washington, I beg to give yon herein a few points 
relating to the Canadian tariff on sugar. 

As yon.know, I have Jnst returned from Halifax, where I went to confer with our 
business fHends, who are largely engaged in the West Indian business, regarding 
the changed political condition of the Spanish islands. The changes proposed by 
our Government are naturally very disturbing to them, and we should be glad to 
say and do all we can in their behalf. 

First, I will state that the Canadian tariff on sugar gives a preferential duty to 
importations from the British West Indies, including, I think, Demerara. The tariff 
imposes ordinary duty as follows : 

Seventy-five degrees polariscopic test, 40 cents per 100 pounds, and adds for each 
degree higher li cents (fractions proportionate). This carries their total duty on 
89 analysis to 61 cents per 100 pounds, and on 96 analysis to 71i cents. (They have 

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66 

the Bame color limit m in the United States tariff.) These rates apply to all sngmn, 
bat, as stated, a preferential deduction is made on all sugars from British West 
Indies of 25 per cent, giving a net duty on above analyses of 30 cents, 45f cents, 53f 
<)ents on 75, 89, and 96 per cent, respectively. (Of course you understand that the 
intermediate analyses are pro rata. ) Ton will see at once that this practically pro- 
hibits the importation of sugars from producing countries other than the British 
West Indies to the extent of the supply obtainable from said islands. This, together 
with the recent order issued by our Government of '' Customs tariff and regulations 
for ports in Porto Rico,'' under which navigation between the United States and 
Porto Rico shall be confined to American vessels, threatens those engaged in the 
Porto Rican business with commercial disaster, the firms engaged in that business all 
being equipped with vessels peculiarly adapted to said trade. It might be said that 
these firms need only conduct their business under the American flag, but this is 
hardly practicable, from the £Ebct that, as stated, the character of vessels heretofore 
engaged in the trade are in ways unlike those built under our flag and adapted to 
the needs and requirements of our own country's relation with its foreign trade, 
and there are other reasons contributing to a threatened annihilation of their busi- 
ness, unless some mitigating considerations can be made operative. 

Including our neighbors, we have received during the year thus far about twenty- 
five cargoes of sugar and molasses from Porto Rico alone, the importation being a 
form of settlement with our Canadian correspondents for proceeds of their outward 
cargoes. The business has been one of advantage to the port, and certainly to indi- 
viduals, and we naturally are hoping that the final outcome of the present situation 
may be one which is in spirit, at any rate, reciprocal with our Canadian correspond- 
ents. I think your views as expressed would also give expression to our own. Mr. 
Porter addressed a communication to us some tiiue ago, asking for our views. I 
should be very glad to have you present to Mr. Porter what I have expressed to you, 
both by word of mouth and herein, as to what, in our opinion, would be the wisest 
policy to adopt, namely, one not prohibiting commercial relations between the 
United States and our new acquisitions under foreign flag; and will you kindly ask 
Mr. Porter to accept your statements as the promised further reply to his communi- 
cation. 

Yours, very truly, Whitney, Pousland & Co. 



Consulate of the United States of America, 

San Juan^ Porto Rico^ November 17 ^ 1698, 
Hon. J. B. Moore, 

Assistant Secretary of State j Washington, D. G. 

Sir: I have the honor to state that it is my opinion that the most 
important question which relates to this island today is that of the 
tariff on goods imported and exported. Porto Eican merchants are 
daily complaining that in many respects the tariff in effect now is even 
heavier tban any placed upon them when Spain was in power; that 
many of the goods most used in this island have to-day a higher import 
duty than when the Spaniards were in possession. 

Of one thing I am fully convinced: Porto Eico will never become a 
prosperous island until there is a radical change in the tariff, and we 
can never hope to make Americans out of Porto Eicans until we begin 
to prove to them that it is for their practical benefit to be Americans. 
We must begin by treating them as we do the balance of the American 
family, and let them trade free with all parts of the United States. 



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This country needs cheap bread, bat it can not be had as long as a 
high daty exists on American floor. These people need many things 
which the flEirmers and factories of the United States have an aband- 
ance of to sell, but these poor people can not afford to bay as long as 
the tariff exists. This conntry needs factories in which to employ 
thousands of laboring people, but no American will build such a factory 
here so long as he has to pay a high rate of duty on the material 
he ships in from the States. Several parties from the States have 
been here to erect large resort hotels, but they all say they can not 
afford to build while the duty on American material exists. Hundreds 
of Americans, representing millions of capital, are waiting for the duty 
to be taken off American products; then they will build mills, facto- 
ries, foundries, shops, refineries, railroads, street-car lines, and give 
employment to tens of thousands of the working class in Porto Eico. 
If we want these people Americanized, we must teach them to work 
as we do the people at home, and in order to do this we must invite 
capital to invest in this island. We will then see factories erected that 
will employ thousands of these cheap laborers. Our people will pay 
them better wages than they have had before, and they will become 
happy, contented citizens. Bread will be cheaper and work more 
plentifal. Their children will be clothed and educated, and the giving 
to this island free trade with the United States becomes a moral ques- 
tion. I hope to see this island made American in every sense of the 
word, and I hope our people will cease charging Porto Bicans for land- 
ing American products on Porto Eican shores. Porto Eicans should 
also be allowed to sell their products in the United States free of duty. 
Porto Eicans should be treated the same as our people are in any Terri- 
tory belonging to the United States. Then will this island become 
prosx>erous. 

I have the honor to be, sir, your obedient servant, 

Philip C. Hanna, Consul 



New Yoek, December IT, 1898. 
The Seceetabt of the Treasuby, 

Washington, D, G. 

Deab Sib: Unless the duties for the importation to Porto Eico, in 
chemicals and drugs, store fixtures, soda apparatuses, and glassware 
be abolished, it will be an impossibility to compete with Germany and 
France. 

I am buying and importing the largest portion of chemicals, drugs, 
bottles, etc., in this line consumed in Porto Eico, but have not been 
able to do but very little with the United States. Please let me know 
your opinion regarding the future duties on those articles for Porto 
Eico, as I must govern myself accordingly, having to make very large 
shipments in a short time, and must make them from the United States 



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or from Europe, just according to the protectioD we will have in Porto 
Bico. At eqaal rates of duty Europe lias the whole trade, and we can't 
compete from the United States. 

Please give this your early attention and oblige me with your reply, 
and advise. 

Yours, truly, B. D. Thornbb, 

69 East Ninety-third Street. 



New York, December lOy 1898. 
Hon. Robert P. Porter, Commissioner^ etc. 

My Dear Sir : I do not know how long the present temporary tariff in 
Porto Rico will remain in force, l>ut as it is now it is certainly doing us 
a serious injustice. 

Since Porto Rico came into our hands, they have adopted the old 
tariff of 1892 — that is, 55 cents on crude per 100 kilograms, and $3.10 
on refined per 100 kilograms. The putting of this old tariff in force, it 
would seem, must have been an error, and we have understood that a 
number of similar errors were made, which have been corrected. 

At the time our Government took hold in Porto Rico the duties affect- 
ing our industry were $1.10 on crude and $5.20 and $8 on refined, 
according to its graduation. We have understood that the policy of 
our Government was to have been the adoption of the lowest rate of 
duty existing at the time of our taking charge, and if this policy had 
applied to petroleum it would have meant $1.10 for crude and $5.20 for 
the refined. The rates now existing are 55 cents on crude and $3.10 on 
refined, and while embodied in the tariff of 1892 were never put in 
force for the reason that before this tariff became effective the reci- 
procity treaty was concluded, which made crude free and refined at 
$5.20. When the reciprocity treaty was abrogated, the Spanish (Gov- 
ernment, by a royal decree, imposed a duty of $1.10 on crude and $5.20 
on refined and $8 on refined, according to its grade, as heretofore men- 
tioned. 

We have been trying to keep the works running even at a loss, so as 
to hold our position with the trade there until the whole tariff question 
should be revised, and our hope is now that this apparent error may 
be corrected to bridge us over until the new tarifi* shall be definitely 
passed on. 

Yours, truly, F. Q. Barstow. 



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Ambbioan Papbr and Pulp Association, 
80 Broad Streetj New Torky February 17^ 1899. 

Hon. BOBBBT p. POBTER, 

160 Broadway^ New YorJc. 

Deab Sib: Having due regard to the interests of Porto Bico, and 
the necessity for deriving revenue from its imports, we have, after a 
conference with representatives of various lines of the paper industry, 
decided to advocate for the Porto Eican tariff which you are formulat- 
ing the following changes from the tariff now in force for Cuba. These 
changes are based on the consideration of all the conditions* of which 
we are cognizant, and we believe them to be fair and equitable to all 
concerned. 

Beferring to page 45 of your report of November 15, 1898, to the 
Secretary of the Treasury, class 8, group 2, under the '' Proposed clas- 
sification to replace paragraphs 176 and 177 : " 



Paper, endless or in sheets, white or colored^ uncnt and unprinted, for print- 
in|^ perlOOidlos.. 

Paper, endless or in sheets, white or colored, used for wrapping purposes, per 
100 kilos 

Paper, in sheets, flat or folded, unprinted, white or colored, used for writing i 
pnrposesa per 100 kilos..' 



Cuban 
tariff. 



$4.00 
2.50 
8.00 



We ask 

for Porto 

Rico. 



$1.00 
.50 
3.00 



a Note change in wording. 

Page 46, class 8, group 5, paragraph 182: 



Cuban 
tariff. 



We ask 

for Porto 

Rico. 



Blotting paper, common packing paper, and sand or glass paper, T.per 100 kilos . 



$1.75 j 



11.00 



Paragraph 183: 



Cuban 
tariff. 



We ask 

for Porto 

Rico. 



Thin paper of common pulp for packing fhiit, T per 100 kilos. 



$2.30 



$1.00 



So flEur as we can judge, these rates should encourage the use of paper 
and produce a maximum revenue. 
Very truly, yours, 

0, W, Lyman, 
Secretary and Treasurer. 
O 



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U.S. Cuiox cCv\4Torto"R\cx> sptcNM co\y\vn\s^ioY\t.r 

REPORT 



ON THE 



COMMERCIAL AND INDUSTRIAL CONDITION 



OF 



C U B x4 , 



BY 



ROBERT P. PORTER, 

SPECIAL COMMISSIONER FOR THE UNITED STATES 
TO CUBA AND PORTO RICO. 



SPECIAL REPORT 

ON 

THE COMMISSIONERS VISIT TO GENERAL GOMEZ, AND IN REUTION TO THE 
PAYMENT AND DISBANDMENT OF THE INSURGENT ARMY OF CUBA. 



RESPECTFULLY SUBMITTED TO 

HON. LYMAN J. GhAGE, 

SSCRETART OF THE TREASURY, 

WaahingtoH, D, C. 



i 



WASHINGTON: 

GOVBBNMBNT PRINTING OFFICE. 
1899. 

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Treasury Department, 

Doooment No. 2097. 
IHrision of Customs, 



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SPECIAL REPORT ON THE COMMISSIONER'S VISIT TO GENERAL 
GOMEZ, AND IN RELATION TO THE PAYMENT AND DISBAND- 
MENT OF THE INSURGENT ARMY OF CUBA. 



Treasury Department, 
Office of the Special Commissioner foe the 

United States to Cuba and Poeto Eico, 

Washington, D. C, February 6, 1899. 
Sir: Acting iu accordance with your instructions, and after con- 
sulting, as you suggested, the President, Secretary of State, and Sec- 
retary of War, I proceeded, on the afternoon of Friday, January 27, 
to Havana. Arriving in Havana Monday morning, January 30, I 
called upon Maj. Gen. John R. Brooke, Governor-General and com- 
mander of the United States forces in Cuba, and presented the following 
letter from the Secretary of War : 

War Department, 
^ Washington, I), C, January 21, 1899. 

Dear 8ir: Hon. Hobort P. Porter, comniissiouer appointed by the PresidoDt to 
investigate and report upon the general tax questions of the island of Cuba, goes 
to Cuba to further investigate those matters and also to confer wilh yon upon 
matters that he will suggest to you. 

Mr. Porter has the entire contidence of the President, who directs that any sub- 
ject he may bring to your attention shall receive your careful and immediate 
attention and cooperatiou. 

Very truly, yours, R. A. Alger, 

Secretary of War, 
Maj. Gen. J. R. Brooke, 

Military Governor and Dirinion Commander, Havana, Cuba, 

General Brooke was informed that the President wished to bring 
about an informal and friendly conference between the commander of 
the United States army in Cuba and Gen. Maximo Gomez, commander 
in chief of the Cuban forces, for the purpose of promoting harmony, 
disbanding the Cuban army, and aiding the people of the island, now 
under arms, to return again to their peaceful occupations. General 
Brooke was furthermore informed that the sum of $3,000,000 was 
available for the relief of the Cuban army as soon as some practical 
plan could be arranged for its distribution, and that in this distribution 
it was the President's wish that General Gomez should be consulted. 
The question of the payment of the Cuban troops had been brought 
before your commissioner by a commission of Cuban gentlemen Decem- 
ber 14, and a report made thereon to you January 13, which report is 



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herewith sabmitted as Exhibit A, and made part of this report. This 
report, together with the following memoranda left with the Secretary 
of War by the secretary of the Cuban commission, was submitted to 
General Brooke. 

MEMORANDA. 

Suggestions presented by Col. J,R. Villalon, of the Cuban oommiasion^ regarding the dis- 
tribution of funds appropriated and to be expended on behalf and for the relief of the 
Cuban anny. 

1. A Cuban ollicer should cooperate with the American disbursing officer for the 
distribution of funds. 

2. The $100 to be paid per persou is to be in part payment of his dues. 

&. Cubans shaR aarrender their arms to the Cuban assembly or its appointed 
representatives. 
4. Immediate aotiou is necessary. 
Washington, D. C, January i'G, 1899. 

It was explained to General Brooke that the President did not wish 
this money or any part thereof to be paid out as part payment of 
salaries or dues, but simply as a relief to the army and an assistance 
to those willing to lay down their arms and return to peaceful pursuits. 
General Brooke entered cordially into these plans and said he would 
be glad to welcome General Gomez to Havana and avail himself of the 
general's cooperation in the manner suggested. To this end General 
Brooke gave your commissioner the following letter of introduction to 
General Gomez : 

Headquarters, Division of Cuba, 

Havana, Januai'y SO. 1899. 
General : I desire to introduce to yoo Hon. Robert P. Porter, special commissioner 
of the Unit'Cd States to Cuba, who desires to meet you and will explain his mission 
to you in persou. 

When you feel that you can find it oonvenient to come this way I shall be most 
happy to see yon. 

I am, general, very respectfully, 

John R. Brooke, 

Majar^General. 
Gen. Maximo Gomez, 

General in Chief of the Cuban Army. 

General Brooke offered one or more members of his staff as escorts, 
and the services of Gapt. J. A. Campbell were accepted. Gen. Leonard 
Wood being in Havana, your commissioner also had an informal con- 
ference with him, and was glad to le«*n that General Wood heartily 
approved of the plan of cooperation with General Gomez to aid in dis- 
banding the army and the reconstruction of Ouba. Lieutenant Hanna, 
of General Wood's staff, was also assigned to your commissioner and 
instructed to convey tiie good wishes of the governor of Stmtiago 
Province to the Oaban general. Tuesday morning, January 31, at 
6 o'clock, accompanied by Senor Gonzalo de Quesada, Oubaa agent in 
Washington, and the representatives of Genial Brooke and G^eral 
Wood, your commissioner started for Bemedios, the headquarters of 

uigiiizea oy x^jv^^/p^iv^ 



the CabaB army. The manager of the United Baibroads of Havana and 
Begla Warehonses, Limited, Mr. Albert de Xiraeno, kindly placed a 
8i>ecial car at the disposal of the party, which enabled us to save con- 
siderable time and go through without change. 

From Havana to St- Domingo, nearly 200 miles, your commissioner 
went over the same route as he did last September. The difference, 
however, in the condition of the country now and then is very marked. 
In September the whole distance was one prolonged scene of desola- 
tion. There were literally no signs of life, human or animal, except at 
the railway stations, which swarmed with starving humanity. These 
unfortunate victims of misrule and war crowded into the cars in search 
of alms and almost tore each other to pieces to obtain the small change 
and coppers thrown them by sympathizing travelers. Never was so 
much abject misery seen as then. To-day conditions have improved. 
There are beggars, but of the chronic sort, but they are few compared 
with the desperate starving women and children in all these towns at 
the close of the war. A decided change for the better is noticeable in 
the country itself. The people are beginning to work again. The 
quick-growing crops have been planted, and some are ready for har- 
vest. The sugar cane is being cut and taken to the centrals. Many 
fields of tobacco may be seen, especially in the Eemedios district. 
Fields are in course of preparation for next year's crop. 

For ten hours in September traveling on the same road but one yoke 
of oxen was seen. Today draft oxen, cows, and cattle are visible all 
along the route, and in some fields large herds of several hundred 
greeted the eye. This is the surest sign that Cuba is pacified and that 
only a little friendly cooperation between the United States military 
authorities and the Cubans, who have manfully borne the heat and bur- 
den of this terrible and devastating war, is needed to bring about normal 
conditions. Sugar houses have been restored, hi some cases repainted, 
and put in excellent condition, as though the owners were satisfied of a 
stable government. 

After a long journey of fourteen hours we arrived at Kemedios, the 
center of one of the richest sugar and tobacco sections of the island. 
We were met by some of General Gomez's staft*, and also by Maj. John A. 
Logan and a party of American officers, who had thoughtfully made 
such arrangements as the place afforded for our comfort. The reception 
along the entire route accorded Senor Quesada demonstrated how much 
he is beloved by his countrjrmen. Word had been telegraphed in advance 
from Havana, and some of the railway stations were densely crowded 
by people anxious to see the second most popular of Cubans, for next 
to General Gomez, Senor Quesada has undoubtedly the largest share 
of the affection of the people. At Kemedios messages were received 
from General Gomez that he was with the Cuban army a few miles 
from town, but that he would be in Bemedios early next morning to 
greet his old and trusted friend, Quesada, and to meet the representa- 
tives of the President, of General Brooke, and of General Wood. 

uigiiizea oy x_iv/^^"xi\^ 



Tlie next morning, Wednesday, February 1, General Gomez came 
into the town on horseback escorted by a bodyguard of about 100 
mounted men. He immediately repaired to a house he occupied in 
EemedioR and sent a social invitation inviting his friend Seuor Quesada 
to breakfast, and an invitation for your commissioner to see him at 
12 o'clock. A little before the appointed hour Seiior Quesada and two 
of General Gomez's officers came over to the hotel and escorted the party 
to General Gomez's house, where we were cordially received by General 
Gomez and invited upstairs to his private apartments, which consisted 
of a commodious i^ont parlor opening into a comfortable bedroom, upon 
the immaculate white bed of which lay the General's hat, sword, and 
gauntlets. 

The interview, which lasted about an hour and a half, was atgreeable, 
and to the point. It opened by General Gomez assuring your commis- 
sioner that he was welcome, and that he had iiilly sympathized with 
the work of commercial and industrial reconstruction of the Island 
which had been carried on since the signing of the protocol of peace 
last August. He said he was completely identified in all and with all 
concerning it. On his side he was working in the same sense and doing 
all he could for the immediate reconstruction of the country. '• Its 
wounds," he said. '* will heal with the rapid promotion of work. This 
is the battle we are now fighting, and all men of good will should join 
us in our struggle. I avail myself of this opportunity to tender my 
services." General Gomez said he was all ready to see your commis- 
sioner and discuss industrial matters last fall, but owing to the illness 
in the family of the Cuban gentleman who had promised to take your 
commissioner to meet him the visit was indefinitely postponed. 

After some other conversation of a general character. General Gomez 
was informed that the President had instructed your commissioner to 
see General Gomez, express his friendly feeling, and to ascertain if the 
General was willing to cooperate in a friendly spirit with the United 
States in the pacification and upbuilding of the Island. To this Gen- 
eral Gomez answered that he received your commissioner in precisely 
the same friendly spirit in which he knew the President had sent him 
thither. He said that his friend Senor Quesada had explained to him 
the true attitude of President McKinley and the people of the United 
States toward Cuba, and he was satisfied that many of the rumors 
afloat were without foundation and absurd. That he never had enter- 
tained toward the United States anything but feelings of the most pro- 
found gratitude and admiration. That, far from any desire to estrange 
himself and his followers from the United States, his sole desire was a 
closer union of friendship and cooperation. That, now he was aware of 
the President's wishes, he was pleased and would gladly do anything 
in his power to promote them. That he was sure a friendly conference, 
or getting together of the United States and Cuban officers, would aid 
in making things go all right, and for his part he would willingly coop- 



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erate in such manner as the President might direct for the general wel- 
fiare of Cuba. 

Thanking him for this assurance of confidence in the wisdom and 
intention of the President, your commissioner directed attention to the 
present condition of Cuba, with a view of emphasizing the necessity of 
patience and forbearance on the part of all concerned. It was suggested 
that within a few weeks only the deadening hand of Spanish misrule 
had been lifted from this fair island ; that already he would see along 
the route between Eemedios and Havana a great difference in the con- 
dition of the country now compared with its condition last September. 
Then all was desolation ; now people were more cheerful, and a glim- 
mering of sunshine was visible, penetrating the drab skies of depres- 
sion, ruin, and starvation which had so long enveloped the Island. It 
was true that some restless and impatient people were asking where 
was the promised liberty, where was the Cuban freedom, etc. 

The answer to this was that Cuba now possessed absolute commer- 
cial and industrial freedom. In framing the new tariff, the President 
and yourself directed that no discrimination in favor of the United 
States should be. made. You had repeatedly said the new tariff must 
be made in the interest of Cuba and not in the interest of the United 
States. Spain, on the contrary, had by outrageous discriminating 
duties compelled Cuba to purchase all sorts of commodities of her 
which could have been bought cheaper and better in other markets. 
All these changes, looking to a better condition, were promptly inau- 
gurated on the day the United States began its military occupancy. 
Much of the criticism was unjust, not only to the Administration, 
but to the military olficials of the United States, who had undertaken 
the gigantic task of reorganizing the country, of reforming its iniqui- 
tous tax system, of improving its sanitary condition, of building up its 
destroyed industries. Our military authorities had found Cuba without 
capital, with hundreds of thousands of people on the verge of starva- 
tion, to whom rations had to be furnished, and with the incubus of 
Spanish rule resting upon all branches of its government, municipal, 
provincial, judicial, and general. It was a great task, and one that 
must take time. There were still from 20,000 to 25,000 Spanish troops 
at Cienfuegos who had not yet gone home. 

The President's idea. General Gomez was informed, was to build up 
the new government from the foundation, by first organizing the 
municipalities, the policing of the island, and that in all this work, 
including the judiciary, only Cubans would be employed. Under such 
conditions your commissioner frankly told General Gomez that the 
President needed, and was entitled to, the friendly cooperation of all 
interested in the future welfare of Cuba, and to his, General Gomez's, 
cooperation above all others, because the first problem to be confronted 
was the immediate disbandment of the Cuban army and the return of 
the men to work. 



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To all this Qeneral Gomez listened With thoughtful attention, and 
replied that he realized the sitaation fully and appreciated all that had 
been said as to the condition of the country, and was willing to aid in 
any way the President might wish. 

The special mission — namely, the disbanding of the army, and the 
aid to Onban soldiers willing to lay down their arms and go to work — 
was then discussed. A brief history of the facts was presented and 
the attention of General Gomez calleil to the report made to yon 
January 13, 1899, and submitted herewith. He i^as informed that the 
President would like his aid in the work of disbanding the Cuban 
army, in the distribution of the fund appropriated for the relief of that 
army, and in suggesting the most practical and efficient manner of 
.policing the country. General Gomez said he would gladly aid in this 
manner and would go to Havana as soon as possible and confer with 
General Brooke to that end. 

He said that the amount was too small, but that was not his fault; 
that he was willing to cooperate in the distribution, and make it go as 
far as possible. It was like the miracle of the loaves and fishes, but he 
Would aid in making the most of it. Your commissioner informed 
General Gomez that no man in military history had done so much with 
such small resources as he, and hence his cooperation with General 
Brooke in this matter would bring good results. He, General Gomez, 
especially impressed upon your commissioner that the money itself 
must be placed to the order of General Brooke. This General Gomez 
repeated three times, and he was evidently desirous of impressing your 
commissioner that while he was willing to aid in any way possible in 
the distribution of the money, he did not wish to take personal respon- 
sibility for the money itself. 

The next question taken up was the method of distribution, and 
while General Gomez and your commissioner reached no written agree- 
ment, the general plan verbally agreed upon was as follows: 

Memorandum regarding the distribution of funds appropriated hy the United States Con- 
gress 1o he expended on behalf of and for the relief of the Cuban army, as discussed at 
BemedioSy February 1, 1899, by General Maximo Gomes and Robert P, Porter, 

1. A Cuban officer shaU be appointed in each province to cooperate with the 
Am rican officers in the distribution of funds, and, furthermore, General Maximo 
Qoraez, as commander in chief of the Cuban forces, is hereby named to confer with 
M%jor-General Brooke, United States Army, in the selection of this committee on 
distribution. 

2. That these officers shall immediately meet at some convenient point and decide 
as to how, when, and where this fund shaU be distribated, and such other details 
as wiU assure a prompt distribution. 

3. That the sum paid each man shaU not be regarded as part payment of salary or 
wages due for services rendered, but to facilitate the disbandment of the army and 
08 a relief for the suffering, nnd an aid in getting the people to work again. 

4. Cubans shall surrender their arms to the Cuban assembly or its appointed rep- 
resentative, or make such other distribution of the same as may be agreed npon by 
the aforesaid committee on distribution. 



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5. That the eommittett shall use its best sndeavors in the payment of this fund to 
distribute the military population of the island so that all may secure work and the 
wounds of war be healed as rapidly as possible. 

6. That the mOney thus appropriated ($3>000,000) shall be placed subject to the 
order of the governor-general, United States Army, of the island of Cuba. Imme- 
diate action is necessary. 

The appointment of a Cuban and a United States ofiBcer from each 
province will be necessary, because no fair distribution of this fiind can 
possibly be made without a knowledge of local conditions and a per- 
sonal acquaintance with the troops. In Santiago, for example, no two 
persons would be so well qualified to advise with General Brooke as 
Mjy. Gen. Leonard Wood and General Castillo, and oflScers of similar 
experience in both armies will of course be called in from the other 
provinces. Another advantage of such a committee, and one which 
appealed to General Gomez, and subsequently on your commissioner 
returning to Havana, to General Brooke, is that the question of polic- 
ing the island can be taken up at the same time and a plan agreeable 
to all concerned agreed upon. The men called together to deal with 
the disbandment of the army will be able to supply considerable infor- 
mation in relation to local conditions and to the needs of each com- 
munity. This is a problem upon which General Brooke is at the 
moment seeking enlightenment, and a Cuban general from each prov- 
ince will be a valuable addition to his own sources of information. The 
utter impossibility of considering the payment offered by the United 
States to help the Cuban army to disband and get to work as part 
payment of salary or wages due for services rendered was explained by 
your commissioner, and in resi>onse General Gomez said he understood 
the attitude of the President on that subject, and could make no 
objection. 

Other phases of the question were discussed, such as the advisa- 
bility of making the payment absolutely on the per capita plan, or 
only to those who needed help. For example, many of the soldiers 
have already been provided for, notably in Santiago, and later in 
Havana, on the police force. These men are drawing good salaries 
from the municipality and are not the objects of State aid. There is no 
necessity to include such cases. This will leave more for those who 
must be helped back to the land. These questions of detail, however, it 
was finally agreed should be properly left to the committee. As a 
matter of fact, the Cuban commission only claimed 30,000 privates. 
The total pay earned by these privates, according to the commission's 
report — based on the same rate of pay as United States soldiers receive — 
was a trifle over $9,000,000. It is not likely, however, that the com- 
mittee to be called together by General Brooke will find anything like 
this number of soldiers who need the assistance herewith proffered. 
There is no controversy over the other paragraphs of the memoranda- 

The actual basis of distribution will undoubtedly be the most trouble- 
some question to be adjusted by General Brooke and General Gomez 



uigiiizea oy x-jv/v,/ 



^,v 



10 

and the officers of both armies called in to advise. It can be settled, 
however, with the proper local information, and settled to much greater 
advantage, in the opinion of your commissioner, to the island than by 
a payment of $100 all around. If, however, the committee can not see 
their way clear to a more equitable distribution, they can, of course, 
resort to the original proposition of the late General Garcia to the Pres- 
ident, of $100 all around to the privates; or, if the silver dollar is used — 
and that is still the basis of payment in Cuba for day labor — ^the 
$3,000,000 will take in all, including the commissioned officers.* The 
above was the sum and substance of the conference. 

(General Gomez was exceedingly gracious, and several times said he 
had no doubt of the friendly attitude of the President toward Cuba 
and toward him personally, which good feeling he said was reciprocated. 
He sent the President and yourself his cordial wishes and tlianks for 
the courtesy extended, and said he would telegraph the President and 
General Brooke direct, and would accept the latter's invitation to see 
him in Havana at an early day. He wished your commissioner to 
assure the President he would do all in his power to aid in the work of. 
reconstruction of Cuba. Turning to Captain Camx)bell, he said: 

Tell (ieiieral Brooke that I am coming to Havana to see him, and that 1 will coop- 
erate witl} him in every way in the world for the general welfare of Cuba, espe- 
cially in getting these men disarmed, in aiding them in going to work, and in 
estahlishing law and order in every part of the island. 

In concluding the interview. General Gomez said to your commis- 
sioner : 

Your visit has thrown light in our way, and all that we have said encourages mo 
to approach Havana, that by coming to an understanding with General Brooke the 
affairs of this unsettled country may be better directed. 

Please express to the President my gratitude for bis intentions, informing him that 
I will do my utmost to maintain order, contributing to the definite constitution of 
the Republic, that Cuba may be really free and independent, thereby helping to your 
desires, which are mine. 

In response your commissioner thanked General Gomez for his offer 
to thus aid in the difficult work the United States had in hand in Cuba 
and ventured to hope that the conference would result in a more com- 
plete understanding between the people of Cuba and the people of the 
United States. His cordial and prompt response to the wishes of the 
President he was told would be appreciated in Washington and was 
a good omen for the future prosperity of Cuba. General Gomez is a 
man of strong personality and great force. He is resourceful, clear- 
headed, and direct in dealing with men, and will make as potent a 
force in the civil work of government as he has been in the military. 
His word is his bond, and must never be doubted. The only occasion 

* The estimate of the Cuban commission, as given to Commissioner Porter, aggre- 
gated, for commissioned officers, noncommissioned officers, and privates, 45,031 men, 
which, at 100 silver dollars each, at the value established by order of the President 
(60 of United States), would aggregate 2,701,860 United States dollars, or nearly 
$300,000 less than the amount appropriated by Congress. 

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11 

in the conference when he showed the slightest feeling was on being 
asked to make his visit to Havana as soon as possible. 

"Do you doubt my activity!" he exclaimed. 

"Your enemies never did, General, and I come on a friendly errand," 
was the answer. 

When General Gomez was asked if your commissioner might cable 
the President his promise of cooperation, he promptly answered : 

"I will cable both the President and General Brooke myself." 

Copies of the cable and lette? in question were afterwards sent over 
in the original Spanish to the hotel, and when translated read as 
follows : 

[l-Cable.] 

Repuklic of Cuba, Headquarters of the ArmV, 

RemedioSf February 1, 1890. 
President MoKinley, Waahinyton: 

It has atTorded nie great pleasure to have conferences with your commissioner, 
Porter, introduced by my friend Quesada, and I am informed and satisfied with your 
wishes. In a short time I wiH go to Havana to have conferences with General 
Brooke, that all may mn smoothly, following your advices and gladly contributing 
to the reconstruction of Cuba. 

Maximo Gomez. 



[2-Cable. 1 

Republic of Cuba, Headquarters of the Army, 

Jiemedios, February 1, 1890. 
General Brooke, Havana: 

The conference with Mr. Porter, commissioner for l*resident McKinley, encour- 
ages me to proceed noon to Havana to come to an understanding with you and solve 
matters for the good of this country. I avail myself of this opportunity to inform 
you that yon may rely tm my consideration and distinguished affection. 

General Maximo Gomez. 



[3 — Letter to General Brooke.] 

Rep u BUG of Cuba, Headquarters of the Army, 

Remedio8y Februarif 7, 1800. 
Maj. Gen. John R. Brooke, Havana. 

General: Your courteous letter was presented to me by Hon. Robert P. Porter, 
commissioner of President McKinley, and, although I have telegraphed you that the 
conference with Mr. Porter encourages me to goto Havana in a short time and confer 
with you and resolve whatever be best for this country, I do it again through this 
letter. 
I will be highly pleased to meet you soon. Meantime, 1 remain, 
Respectfully, yours, 

General M. Gomez. 

In the afternoon word was sent over by General Gomez that arrange- 
ments had been made for a speech at the theater by Seiior Quesada, a 
reception to your commissioner and the officers accompanying him, and 
a ball at which the representatives of the best families of Kemedios had 
been invited. In the evening the little theater was crowded. The boxes 
and orchestra were occapied by ladies in evening dress, and the other 
parts of the house were packed by earnest, intelligent people, intensely 
interested in the orator of the evening. In the middle of the stage a 

uigiiizea Dy vjv/v^'p^iv^ 



12 

sort of palpit had been placed, completely covered t?ith the most beauti- 
ful tropical flowers. When Sefior Quesada ascefided the pulpit a shower 
of flowers fell from all parts of the house and covered the entire stage. 
General Gomez escorts your commissioner to a box, and the General 
remained throughout an interested but silent spectator. 

The oration of Senor Quesada was an eloquent one and was devoted 
to an explanation of the real feeling of the United States toward Cuba. 
He thoroughly disillusioned the audience of any idea that the United 
States desired to annex Cuba against the will of the people, and 
assured them of the friendship of President McKiiiley and his advisers. 
These sentiments were loudly applauded, and it was evident the audi- 
ence was at heart with the speaker. After the speaking came a recep- 
tion, and then all adjourned to the ballroom, where General Gomez led 
off in the dance, and the festivities were kept up until the early morn- 
ing hours. These facts are given lor the purpose of showing the cor- 
diality of the reception given the representative of the United States 
and as indicating that General Gomez more than met the informal 
overture of our Government in the spirit in which the recognition on 
, our part was offered. On parting with your commissioner General 
Gomez offered the services of Lieutenant Oornill, a brilliant young 
officer of his staff, as escort to Havana. 

Returning to Havana, all these facts were laid before General Brooke, 
and he expressed himself pleased with the results of the conference. 
The memoranda discussed and all dispatches were placed in General 
Brooke's hands, and he desired your commissioner to say he will be 
ready to take up the matter of distribution of the army relief fund 
next week with General Gomez in the manner herewith submitted. 
General Chaffee now has in hand the complete scheme for policing the 
island, and the delay in carrying it out is partly due to the lack of funds 
and partly to the innumerable details necessary to meet the varied con- 
ditions of each province. It is more than probable that the convening 
of such an army relief committee as suggested in this i^eport will have 
the effect of crystallizing these plans and securing a general plan for 
the rural policing of the island by native Cuban troops. 

The excellent condition of the island throughout the most trying 
ordeal it has undergone — the passing of the Spanish control — has 
encouraged our military officials in the belief that the solution of the 
problem is local policing by Cuban troops. The present situation may 
be thus briefly summarized: Senator Proctor, of Vermont, just up firom 
the most western province, Pinar del Bio, says he has been with Gen- 
eral Davis, who reports the most perfect order as being maintained by 
native troops, and that this has been done without money and without 
price. In fact, all the police work is now done by Cuban police. 

In Havana province General Lee has the entire confidence of the 
people, while a Cuban police force under General Menocal is being 
formed for Havana. This force is now drilling every day in the public 
square of Havftna, and they appear to be a fine body of men. In 

uigiiizea Dy x^Jv^vy-Xi^ 



13 

Matanzas province it was your commissioner's good fortune to meet 
Gen. Pedro Betaucourt, who says all is tranquil throughout that 
province, a fact certified to by General Wilson in a dispatch published 
Saturday. In Santa Clara province General Monteagudo, in command 
of the Cuban forces, boarded the train, and in a conversation lasting 
nearly two hours explained the conditions in that province. He had 
nearly three thousand men who, since January 1, have kept order 
and policed the entire province. He has a complete scheme tor con- 
tinuing this work with about half the number of men. This plan has 
been laid before General Bates, and by him referred to General Brooke 
at Havana. General Chaffee has the plan now before him with all the 
other plans, and it will be immediately considered and acted upon. 

In Puerto Principe the Cuban army has disbanded, law and order 
prevail, and the people are rapidly getting to work again. In Santiago 
General Leonard Wood and the Cuban general, Castillo, are masters 
of the situation. So great is General Gomez's confidence in General 
Wood that he expressed a hope to your commissioner that General Wood 
would be in Havana at the conference of United States and Cuban 
officers, because he, General Gomez, wanted to consult him in relation 
to matters in that province. The situation may change, but the above 
represents the conditions at the present moment. Some of the leaders 
will object for various reasons, some perhaps selfish ones, to the 
present attitude of General Gomez, but it is not likely that their views 
will prevail, if once the United States and Cuban military leaders in 
each province can get together and meet around a table with General 
Brooke and General Gomez. If this can be brought about at an early 
date all outside opposition will surely disappear and the Cuban prob- 
lem will be in a fair way of solution. 

The following message was sent to your commissioner at Eemedios, 
and was translated into Spanish and submitted to General Gomez : 

Hon. Robert P. Porter, Havana: 

The Presideut sends his hearty oongratulations and thanks for your dispatch. 
Convey hiB cordial greetings to General Gomez and his grateful appreciation of the 
generaPs frank and ftiendly message. The cooperation of General Gomez in the 
paeifioation of Cuba will be of the greatest value for both peoplee. 

John Hay, 

Secretary of State, 

It is respectfally suggested, in view of the facts above given, that 
the sum of money ($3,000,000) assigned by the Presideut for the relief 
of the Cuban troops and to aid in the disbandment of the army be at 
once placed at the disposal of General Brooke, Governor-General in 
command of the United States forces in Cuba. 

All of which is respectfully submitted. 

ROBBBT P. POBTBE, 

Special Commissioner for the United States to Cuba and Porto Rico, 
Hon. Ltman J. Gagb, 

Secretarp of the Treasuryj Washington^ 2>. (7. 

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14 

[Exhibit A.] 

Treasury Department, 
Office of the Special Commissioner for the 

United States to Cuba and Porto Erco, 

January 13, ISfJfK 

Sir: 1 have the honor to inform you that on December 14, 1898, the 
following Cuban gentlemen appeared before your commissioner, at tlie 
Shoreham Hotel, Washington, and presented certain facts which they 
said they wished to have submitted to the President and to yourself: 
Gen. Jose Miguel Gomez, Col. Manuel Sanguily, Col. Jose Ramon 
Villalon, Dr. Jose Gonzales Lanuza, Senor Gonzalo de Que^ada, and 
Mr. Horatio S. Rubens, who acted as interpreter. 

They were briefly informed as to the work committed to your com- 
missioner, namely, an inquiry into the economic condition of the Island 
of Cuba and the recommendation of such measures for the commercial 
and industrial reconstruction of Cuba as might appear advisable after 
impartially consulting M interests. They were told that so far as the 
United States was concerned Cuba had won her economic and 
industrial freedom ; that the work had been performed with scrupulous 
regard to the interest of the people of Cuba; that the aim had been 
the rehabilitation of its industries and the building up of the country 
generally with as little friction as possible; that in accordance with 
instructions received from both the President and yourself the tariff of 
Cuba had been framed so that there should be no discrimination in 
favor of the United States, and that the same tariff laws should be 
applied alike to all countries, so that Cuba was now free to purchase 
her supplies in the world's markets, wherever they were best and 
cheapest, and not compelled to buy in a dear market as under Spanish 
rule. They were farthermore informed that the revenues of the country 
were to be used exclusively hereafter for the economical and honest 
government of the island, and that the largest portion would not be 
drained away to pay the enormous interest charged (aggregating 
$10,500,000) on an indebtedness which had unrighteously been saddled 
upon the people already bowed down under the heavy yoke of war and 
debt. Lastly, they were asked to state fully and frankly, as citizens of 
Cuba, their views on any subject bearing upon the reconstruction of 
Cuba. 

In reply these gentlemen said, in substance, that they were entirely 
satisfied with the course the Government of the United States has pur- 
sued in relation to these economic questions and realized the fact that 
Cuba was to-day free commercially and industrially. They then pro- 
ceeded to discuss the important problem of how the present transitory 
condition of the island can best be changed to a permanent civil life 
without friction in Cuba or trouble and annoyance to the United States. 
Their purpose was simply to cooperate with the United States toward 
the restoration of order, without which, in their opinion, there could be 



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15 

no reconstruction of industries and no return of prosperity. Their pur- 
pose was, they assured your commissioner, to advise with the people 
of the United States, to the end that everything would be harmonious 
and the people of Cuba get to work as soon as possible. 

Si)eaking for all the gentlemen above named, Col. Jose R. Vallalon 
said: 

The discharge of the iusurgeut army of Cuba is a very complex and dithcult prob- 
lem. It has to be done for huiuaiiity'H sake in one sense, and those men who have 
been working and suffering have to be remunerated in some way. But that is not 
the only point of view. We have got to see toward the maintaining of order, and 
we have got to give them compensation or gratirtraticm or a certain amount of 
money with which they can go back to their homes and their agricultural labors. 
In doing that we have a duty to our country as far as the Cubans are concerned, 
but at the same time it seems to me that it is a high political measure on the part 
of the United States to prevent now what would afterwards be very difficult to sup- 
press. If we scatter these 30,000 men (approximately) throughout the country, 
without any resources whatever — men who for the last two or tliree years have been 
accustomed to live upon the resources of the country, forage on the enemy, and who 
are nsetl to the hardships of the campaign — it will not be very difficult to foresee 
that, in spite of the good nature and good disposition of the people, these men will 
be forced to do what, by their nature, they do not wish to do. If the men are left 
as they are, withoui supplying their needs at present, they will go to the woods and 
be a source of banditti and disorder, which, on the part of the United States, will 
be very difficult to suppress, and for the sake, possibly, of saving a few million 
dollars now, they will be obliged to spend afterwards many more million dollars in 
addition to the sacrifice of many lives. It is an economic iiuestion. At the same 
time, unless something is done to relieve their needs, the disorder and intranquillity 
of the island will bo prolonged indefinitely. As an example, I would call attention 
to the case of your Indians in this conntry, who now and then break away. In 
Cuba the condition will be worse, for there they would have the shelter of the 
woods, and, besides, the Americans would not be able to stand the climate so well. 
Ultimately, of course, they will succumb, but it will be at the cost of a good many 
lives and a great many millions of dollars. 

Besides, there is an'other thing — that if to-day we provide their needs and 
restore order it is the wish of every inhabitant of Cuba to contribute his share 
toward this. If these men are supplied now they will not have the moral support 
of the people of Cuba should they not go to work, but the people of Cuba wUl see 
that they are punished. If, however, they had the moral support of the people of 
Cuba it would be difficult to suppress them. 

There is another point, and that is with regard to the amount of money required. 
Althongh they have not said anything about this, nevertheless there is a tendency 
to lessen this amount. We want to say that, althongh the measure in principle will 
be very good if it does not attend to all of the needs at present, though it will be a 
moral obligation to ourselves toward the United States, it wiU not solve the problem, 
because it is not enough. If the revenues of the island of Cuba ou^ht to be mort- 
gaged to repay whatever advances they have received from the United States now, 
it will not be a very difficult matter.to make this amount a few millions more. 

The above gives a fair summary of the general tenor of the testimony 
taken, and, it is believed, fairly represents the views of these gentlemen. 
Testimony was also taken in relation to certain legitimate debts which 
the gentlemen informed your commissioner they felt the good faith of 
the people of Cuba had been pledged to pay. On being asked the 
probable amount of this indebtedness, they said it was not in excess of 



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16 

•2,250,000 or $2,500,000. The first and most imiK)rtant matter, and 
the one which they insist will have much to do with the pacification of 
the island, is the payment of some sort of compensation to the impover- 
ished Cnban soldiers. These gentlemen were asked if they had in their 
possession any estimate as to the number of soldiers, the length of 
service, and the amount of money necessary for the purpose they bad 
in mind. An itemized account, they were told, would make a useful 
supplement to the interesting and instructive testimony given. No 
such detailed statement had been provided, but those present offered 
to furnish such an exhibit at an early day. The above is the substance 
of the several statements made by these gentlemen December 14, 18^. 

On January 12, 1899, the same gentlemen again appeared before your 
commissioner and presented certain tables, with additional verbal testi- 
mony. This testimony was subsequently reduced to writing, and is 
herewith submitted, with the tables, as Exhibit 1 of this report. It 
purports to be a statement showing the number of officers and privates 
of the Cuban army and their time of service.* On behalf of Cuba 
these gentlemen informed your commissioner that, had Cuba been 
recognized as an independent nation, their first duty would have been 
to pay all legal obligations contracted during the struggle for independ- 
ence. They requested that the United States, acting as the trustee for 
Cuba, would give this subject a careful hearing, and enable the people 
of Cuba to disband the army and complete the pacification of the island. 
They recognize the fact that $3,000,000 has been appropriated for a 
purpose similar to this, but regard it as inadequate. There are many 
other facts of interest in these statements, to which your attention is 
respectfidly called. 

The figures submitted by these gentlemen as representing the pay 
which the insurgent army, in their opinion, has earned, it must be 
admitted are somewhat startling. While the details may be found in 
Exhibit 2, accompanying this report, the summary is as follows: 

11 major-generals $179,450 

19 generals of division 296, 175 

54 brigadier-generals 682,835 

153 colonels 1,491,750 

290 lieutenant-colonels 2,362,800 

578 majors 3,870,240 

965 captains 4,561,800 

1,245 lieutenants 3,763,800 

1,794 sublieutenants 4,952,880 

2,130 first sergeants 3,796,200 

3,123 second sergeants % 4,605,600 

4,509 corporals... 5,288,240 

30,160 privates , 21,502,620 

45,081 57,304,880 

It will be noted that the pay promised the Cuban army is, with the 
exception of the grades of general, captain, cmd lieutenant, very much 



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17 



higher than the amoants actually paid the officers aud men in the 
United States Army. In this connection the following comparison of 
the salaries of the two armies will be of interest: 

Salaries paid the Army per manth. 



M^or geueral 

Genenu of division 
Brigatlier-gi^neral . . 

Colonel 

LieatenantHiolonel . 

Mi^ior 

Captain 

Lieatenant 

Sublieiitenan i 

First sergeant 

Second sergeant . . . 

Corporal 

PriTate 



Cuban. 



$500.00 

450.00 

400.00 

325. UO 

275.00 

220.00 

130.00 

100.00 

90.00 

60.00 

50.00 

40.00 

30.00 



United 
States. 



$625.00 



458.33 

290.67 

250.00 

208.83 

150.00 

125.00 

116.67 

25.00 

18.00 

15.00 

13.00 



It is not assumed, even by the gentlemen who prepared the above 
estimates, that claims of such magnitude could be seriously considered, 
even by an independent republic. The resources of the island at 
present are entirely inadequate to shoulder such a debt. Upon the 
reduced basis of the salaries paid the United States soldiers the 
reduction would be about one-half, or less than $30,000,000, an equally 
impossible sum. On the other hand, that some aid should be rendered 
by the United States to enable these soldiers to disband and go to 
work would seem both feasible and just. It could easily be met by 
the revenue of the island, especially if divided into a series of pay- 
ments running over a period of years, and would have a decided effect 
in securing permanent peace and the early establishment of a stable 
government in Cuba. If done now, under the guidance of the United 
States, it would prevent excessive payments to the troops hereafter. 
In the same manner the liquidation of the small amount of outstand- 
ing obligations — not exceeding two and one-half millions — might settle 
the debt question for all time to come. In so doing all other advances 
for these purposes should be prohibited until such newly incurred debt 
shall be adjusted to the satisfaction of the United States. In case the 
ultimate solution of the Cuban question should be, as is quite within 
the range of probability, annexation, the independent government will 
not previously have had the opportunity of incurring improvident 
indebtedness, which ultimately may have to be assumed by the United 
States. In short, whatever may be done in this matter, or however it 
may be done, the United States should control and safeguard the 
finances of the island for a considerable period. 

It has been very truly stated that should an independent government 
be established and recognized the United States will no longer be able 
to control the financial legislation of the island. It can, however, by 
the plan proposed, and very properly, not only save money for Cuba 
while under its military possession or control, but also will be able to 
14682 2 ^ . 

uigiTizea by VjOOQIC 



18 

prevent the making of nnneceasary, improvident, or other loans by such 
independent government, except with the consent or approval, in 
advance, of the United States. This can be readily done if, when 
making an advance for the benefit of Cuba, the right to apply the 
customs receipts and other revenues of the island to the repayment of 
the principal and interest of such advance be reserved to the United 
States. In this way all reckless expenditure may be prevented and all 
speculative or independent bond issues avoided, and at the same time 
quick assistance rendered those whose position at this moment is 
deplorable in the extreme. 
AJl of which is respectfully submitted. 

BOBBBT P. POBTBB, 

Special Commissioner for the United States to Cuba and Porto Rico. 

Hon. Lyman J. Gage, 

Secretary of the Treasury^ Washington^ D. 0. 



Exhibit 1. 

The statements showing the nomber of officers and privates of the Cuban army 
and their time of service are as approximate as could be made. A detailed list of 
the exact time of service of each individual wiU be obtainable later. The law 
establishing rate of pay is hereto annexed. If we had been recognized as an inde- 
pendent nation, our first duty would have been to pay all the obligations we con- 
tracted during our last struggle for independence. We could not have started our 
national life and destroyed our credit by beginning with a repudiation of our obli- 
gations. We request that the United States, acting as our trustee, will enable us 
to fulfill our duties. There is no financial risk in doing this, for the customs re ven nee 
of the island are ample security for the repayment of any advances that might be 
made to us. 

Our soldiers are in the same position as were those of the American revolution in 
1783. Those Americans, whose patriotism and purity of motive nobody can ques- 
tion, protested that they should not be made to suffer for being disbanded without 
pay. The situation of the Cubans is more desperate, because the entire country has 
been desolated. To return to work is impossible without money to buy implements, 
food, and clothing. In reality a sufficient sum Ih needed to enable the men to await 
the coming crop. The Cuban soldier has not received one cent of pay in the three 
and one-half years of the fight against Spain. He received no clothing and had to 
live as best he could on the resources of the territory tie occupied. Starvation was 
the common lot. As the Americans were at Valley Forge, so were the Cubans for 
nearly the whole period of the war. 

Aside from the right and justice of providing payment for the troops, it is a mat- 
ter of expediency, tending to establish permanent peace in the island, and therefore 
oomes within the scope of the resolution stating the objects of American inter- 
vention in Cuba. As to the manner and mode of payment, means may be found to 
prevent all possible fraud. Unless some determination is soon reaohed there is 
great danger that the Cuban soldier will be driven by his needs and by the apparent 
neglect of his rights to despair. The fact that some of the officers are given office, 
while relieving these few, but aggravates the situation of the others, and if the men 
see some of their ohiefe taken care of but no provision made for themselves they will 
become desperate and it will be impossible to control them. It is evident, too, that 
the officers for the most part, not being farmers or laborers, must receive more than 
the privates. 

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Digitized by' 



19 

By a resolution of the Cuban assembly, which met at Santa Cruz del Sur in 
November last, it was resolved that for the present, at least, payment of officers and 
men should be reckoned only to the time the news of the signing of the peace proto- 
col between Spain and the United States was received by the Cubans, namely, 
August 25, 1898. 

While immediate payment, in part, at least, of the army is a necessity, the proposed 
appropriation of $3,000,000 is entirely inadequate to solve the question now con- 
i¥onting us. 

J0S6 R. ViLLALON. 

Washington, D. C, January 12, 1899. 



I beg to call the attention of Mr. Porter to the urgent expediency of having a 
resolution passed, based on the following considerations : 

First. The island of Cuba having been evacuated by the Spanish forces, the con- 
tinuation of the Cubans under arms can only be explained because of their waiting 
to be paid. On the other hand, the necessity of disbanding is evident. Under the 
existing conditions the men composing the army find themselves placed in a very 
anomalous position. It can not be conceived that they will continue under arms 
if they are not going to use them; either they will surrender them, or they will 
use them, the more so because at present their means of sustenance are extremely 
precarious. 

Mr. Porter thoroughly understands the necessity of devising, at the earliest 
opportunity, the means for inducing them to surrender their arms. 

Second. In the present state of affairs in Cuba, the American military commanders 
endeavor, guided by their good judgment, to iill the public offices with such leading 
men of the revolution as have taken an active part with the army, or were connected 
in revolutionary propaganda in Cuba and abroad. Those men are the natural guides 
of Cuban opinion, and they are expected to lead their people prudently and wisely. 
But this they will be able to accomplish only as long as they are able to maintain 
their prestige with the people ; but as can be plainly seen, if a speedy solution regard- 
ing the payment of the army is not reached, It will be impossible to prevent the sol- 
dier and the lower classes of army men to whom the public distribution of offices is 
not extended from refusing to abide by the counsel of their superiors, which they 
consider prompted by self-interest, and of peacefully accepting the situation, and 
that far from benefiting them they would consider an injury. Once their influence 
over their men is lost, the most audacious and heedless could easily shape the con- 
duct of the masses, and this would become a very grave danger for everybody in Cuba. 

This being considered, we may conclude as follows : Inasmuch as the President of 
the United States has at his disposal to-day, on the one hand, $3,000^000, which Con- 
gress voted for and included in the deficiency bill, and on the other hand, the balance 
of the special appropriation made for the exx>en8es of the war, I beg to suggest as a 
very convenient measure of a military character, or of military necessity, that he 
should order, without having to apply to Congress, and as far as the present means 
may allow, the payment of the Cuban army by the American military authorities 
in the island ; and at the same time authority should be asked of Congress for the 
payment of the remainder, to be effected in convenient installments, provided the 
island continues to be occupied by the American forces. 

Thus would this commission, on its return to Cuba, report that a first cash pay- 
ment was to be made now, and that it was not as large as it was desirable at present 
because the Administration had no greater amount at its disposal nor a constitu- 
tional way of paying just at this time a greater amount, but that authority had been 
asked for farther payments. 

This measure wonld clear the situation and would be very advantageous for the 
easier solution of one of the gravest problems confh)uting us in Cuba to-day. 

Jose Gonzales Lanuza. 

uigiTizea oy x^Jv/^/p^i^ 



20 

It is important and pressing for the Caban commission to have an assurance of 
the intention of the Government of the United States as to the payment, either in 
fall, or partially, of the Cuban army. 

After the evacuation by the Spanish troops, there exists in Cuba a de facto 
dualism. There are, facing each other, an assembly, elected by the elements of the 
Cuban revolution, and the American military authority, and there are distributed 
throughout the island two armies — the one Cuban, the other American. This 
anomalous situation should not be continued; the insurgents must return to civU 
life, but there seems to exist a strong resolution of not doing so, until part of their 
salaries, at least, has been paid ; and furthermore, they would be unable to do so, 
even though willing, because they are in absolute want of all the necessary elements 
for the r^onstruction of their homes, for purchasing implements of husbandry, and 
preparing themselves for their new life. 

If the actual situation of the island were continued it is but natural to expect 
serious conflicts, and if the insurgents are not to receive, at a very early day, suffi- 
cient help, no peaceful solution must be expected from mistrust and desperation. 

Wise and foreseeing would it be to decide at once about extending a decorous help 
to their needs, and this commission should be in a position to bring to them the 
news that the proper steps have been taken, with the assurance that their aspira- 
tions will be realized. 

Inasmuch as the President of the United States can dispose pow of $3,000,000 and 
of a balance of about $7,000,000 from the war appropriations (according to the cur- 
rent belief), it seems to me it would expedite matters if he were to apply said sums 
in part payment of the Cuban army, and in the meantime Congress would act on a 
bill to be presented to appropriate money for the payment of said army. It would 
be a long delay to wait until such bill was passed. While acting as above suggested 
conflicts and disturbances could be averted, and it would easily contribute toward 
restoring moral peace in Cuba, and with it the order and prosperity so badly en- 
dangered to-day. 

Manuel Sanouily. 



£^XHIBIT 2. 



Major-generaU. 



Kame. 


1 

:i9 


1 


General of di- 
vision. 

Months served. 


1, 


1 
% 

J 

1 

a 


1 


1 
1 

1 


Total. 


Bsrtolome Maso 


921, 000 42 










$21,000 


^nxlnio GOmez. . .. ..... 


20.000 40 
18,500 ' 37 
18,500 37 
16, 000 32 


::■;:::::*:::::;: ::::::;:i:::::: :::::::::: 




20.000 


Carioe Roloff 


.1 





18,500 


J. M. Rodrignes 


; : 1 .. 




18,500 


l^VfUicisco dairillo 


::::::::::'^:*:!l:::::::::: :: " :::" 




16, DOT 


lC4Buel SiiAros 


18,500 87 








lS,500t 


J^esus Sablon 


12,000 44 
6,000 12 

10,000 20 
8,500 17 
1,500 1 8 




$6,000 


15 $»75 
12 : 1,950 


3 
6 


18,075 


Jose M. Ciipote 


$5,460 12 

1.800 4 

450 1 


4,800 


18,15Qr 


Juan Rias Rivera 


11,800 


Pedro Dias 


4,000 


io 3- n75 


11 


16,5^ 


Jnlio SABimilv 






1.600 
















Total 


1 












179,450 






1 












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21 



Generals of division. 



Name. 


® 


1 


ki 
V 


i 
1 

a 
1 


1 


Months served. 


Lieutenant-colo- 
nel. 


1 
1 


1 


A vellno Rosas 


$9,000 
10,800 
10,800 
10,800 
10,800 
14,400 
14,400 
9,000 
3,150 
4,050 
4,050 
4,050 
4,050 
13,050 
15,300 
1,800 
900 
3.600 
1,800 


20 

24 

24 

24 

24 

32 

32 

20 

7 

9 

9 

9 

9 

29 

34 

t 

8 
4 


$3,600 
7,200 
5,600 
6,600 
5,600 
4,000 
4,000 
2,400 
8,400 
6.000 
6,000 
5,200 
4,400 
400 
3,200 
8,800 
4,000 
2,000 

13,600 


9 
18 
14 
14 
14 
10 
10 

6 
21 
15 
15 
18 
11 

1 

8 
22 
10 

5 
34 


, 1 . . 


$12. 600 
18.000 


Pedro A. Perez 






Ajgustin Cebreoo 

Matias Vega 


$1,300 
1.300 
1,300 


4 
4 
4 






17, 700 






17 700 


SfdvadorlUos 







17,700 
18, 400 


Jose Miro 






IMTAriAnO To»T«B --,-,, ^ , - 








18, 400 
15 000 


Javier Vega 


1.950 
650 
5,850 
4,875 
4,075 
2,275 
2,275 


6 
2 

18 
15 
15 

7 
7 


$1,650 
1,375 


6 
5 


JoAe M. (romez ........... 


13, 575 

15.900 


Satumino Lora 


Florencio Saloedo 

Mario G. Menocal 

Alejandro Kodrignes 

Jo0e Lacret 


825 

550 

2,750 


3 

2 
10 


15,750 
13.875 
13, 475 
15 725 


Francisco Estrada 






18.500 


Ijope Recio - 


3,900 
5,850 
3,575 
1,300 


12 
18 
11 
4 






14,600 
12.125 
10,550 
16 700 


Jose de J. Monteagado.. 

Pedro Betanconrt 

Lais Feria 


1,375 
1.375 


5 
6 










Total 


1 












296, 176 




1 













Brigadier-generals, 



Name. 


a 
c 


1 

OD 

.a 

1 


1 


i 

> 

s 

m 
1 


Si 

3 


00 

1 


o 


i 

1 

a 

1 


a 

s 
5 


1: 

g 1 

ij 


J. Gomes Cardosa 


$10,400 
9,600 
9,600 
9,600 
16,800 
16,000 
7,600 
14,800 
8,800 
9,200 
8,000 
9,200 
8,800 
8.000 
9,200 
4. «oo 
4. HOO 
4. i^Ut* 
3. 21 to 

3, «;o(i 

10. 800 
3, 200 
3. 200 
3, 200 
3. 200 
12,0(10 
U, 000 

1. ma 

2, 000 
2, 000 

2, 000 

3, 000 
4,01H3 
1, GOO 
1, 800 

800 
400 
4<)D 
400 


26 
24 
24 
24 
42 
40 
19 
37 
22 
23 
20 
23 
22 
20 
23 
12 
12 
12 
8 
9 
27 
8 
8 
8 
8 

30 
35 

10 














1 $10,400 


Joaniiin Planas - . . . 


$5,850 
5,850 


18 
18 










1 15 450 


Luis Bonne 










15. 450 


Biiri<ine Collazo .. -. 








9, 600 


Jnan*R^ Benitez ^ , 






1 ; 




16 800 


J.Castillo 






::::::::i::::: ":::::: 




16 000 


V.Pujals 


6,500 


20 




' 


1 14,100 


Bogelio Castillo 




' 


*" "1 


14 800 


Ca^os Aguero 


3,900 
5,850 
3,2.50 
3,260 


12 
18 
10 
10 






1 


' 12' 700 


Emilio Nnnes 










15 060 


Bemabe Boza 


$1, 925 
2,475 


7 
9 


$1,640 


7 


$910 


7 1 15,625 
1 13,925 


Juan Ducasse 


Maximiliano Ramos 








8 800 


Fernando Espinosa 


6,525 
7,800 
3,250 
3,900 
8,125 
9,750 
050 
2,275 
5,200 
8,450 
5,200 
3,250 


17 
24 
10 
12 
25 
30 
2 
7 
16 
26 
16 
10 












13, 525 


Jose Gonzalez 


:::.:::.::: 








1 17 nnn 


Jose Luis Roban 


4,400 
3,025 


16 
11 






l^-l.'iO 


Jose Aleman 








; 11,725 


Alfiredo Rego 








19 091% 


J. Castillo linany 

Rafael Portuondo 

Beteban Tamayo 

Bemetrio Castillo 










1 T2.fl.5O 


6.875 
1,925 
4,125 


25 

7 
15 


660 


3 



390 


3 12, 175 
1 1.5.000 




1 i2!525 


Francisco Sanchez 




' 11.650 


Prudenoio Martines 


4,675 
1,650 




17 
6 


1 1 1 l6i675 


Juan Veloso ,..,.. 


1 1 ' 8,100 


Petlro Vazgnez 


,12 000 


Comelio Roias 












14.000 


Alberto Noaarse 


5,200 
5,200 
5,200 
6,175 
4,875 
3,250 

10,400 
3,250 
6,626 
5,525 

12,350 
7,800 


16 
16 
16 
19 
15 
10 
32 
10 
17 
17 
38 
24 


2,750 
8,025 
6,776 
4,960 
2,200 
2,750 


10 
11 
21 
18 
8 
10 




1 1 9,550 


Francisco Peraza 




10,225 


Antonio Varona 




1 1 12 975 


Vinceute Miniet 




1 1 ia'v2f» 


Victor Ramos 


1... i 10 675 


Mariano Lora 

Jk Fernandez Castro 


1,760 j 8 520, 4 12',280 
1 1... . 12,000 


A. Sanchez 


7,150 
4,676 
1,100 


26 
17 
4 


12 200 


fiinmo Ezquerra 

Rafkel Cardenas 


' '... iijooo 


, 7,025 


Ednardo Garcia 


! 1 12 750 


Francisco Leyte Vidal . . . 


::::::::::::: 


! ^.\ 1 8;200 



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22 



Brigadier^generals — Contiuued. 



Name. 


d 
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Dionisio Gil 


$U.40O 

6,600 

4,000 

400 

^400 

15,200 

4,800 

13,200 

13,200 

13,200 

13,200 

16,200 

4,800 

8,000 

8,300 


36 
14 
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38 
12 
33 
83 
33 
38 
38 
12 
20 
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1 




$14,400 
13 300 


Jqhd Lorente ....•>•.... 






$7,700 


28 










Carloe M. de Rojaa 

Martin Torrea 


$6,600 


20 










10,500 


11,275 
10,450 


41 
3fl 










11 675 


Jacinto Hemandea 














10,850 


Francisco Varoua 


I 












15.200 


Silverio Sanchez 


4.225 
2,600 
2,600 
2,600 
2,600 


13 
8 
8 
8 
8 


3,575 


13 










12,000 


Hiffinio Yazoaez 

Qaintin Banderas 

Jiillan 8ant-nna 










15,800 












15.800 












15,800 
15,800 








1 


Engenio Sanches A 

Eugenio Molinet 

Domingo Mendez Capote 
P. Freyre Andrade 

Total 










15,200 


8,775 


71 












13,575 














8,000 


3,900 12 


550 


2 










7.650 










682,825 








1 




1 











CoUmeU—153, 
79 colonelB, 36 months' Bervice $924,300 



38 colonels, 30 months' service 
19 colonels, 24 months' service 
4 colonels, 8 months' service.. 
13 colonels, 6 months' service. 



370,500 

148,200 

23,400 

25,350 

Total 1,491,750 

lAeuteAomi-ooloneU — ^90. 

145 lieutenant-colonels, 36 months' service $1,435,500 

54 lieutenant* colonels, 30 months' service 445,500 

51 lieutenant-colonels, 24 months' service 336,600 

24 lientenant-oolonels, 18 months' service 118,800 

16 lieutenant-colonels, 6 months' service 26.400 

Total 2,362,800 

MajorB — 678, 
296 majors, 36 months' sei-vice $2,344,320 



127 majors, 30 months' service . 
100 majors, 24 months' service . 
33 majors, 18 months' service . . 
22 majors, 6 months' service . . . 



838,200 

528,000 

130,680 

29,040 



Total 3,870,240 

Capiain9—966, 

444 captains, 36 months' service $2,965, 920 

215 captains, 30 months' service 838,500 

187 captains, 24 months' service 583,440 

52 captains, 18 months' service 121,680 

67 captains, 6 months' service 52,260 

Total 4,561,800 

LieutenanU^l,i45, 

643 lieutenants, 36 months' service $2,314,800 

241 lieutenants, 30 months' service 723,000 

233 lieutenants, 24 months' service 559,200 

75 lieutenants, 18 months' service 135,000 

53 lieutenants, 6 months' servioe 31,800 

Total jr^ j3. 763, 800 



Googld ' 



23 

Suhlieuienanta— 1,794. 

909 snblieutenante, 36 months' service $2,945, 160 

440 snblieu tenants, 30 months' service 1,188,000 

309 snblientenants, 24 months' service 667,440 

73 sablieatenants, 18 months' service 118,260 

63 sublieutenants, 6 months' service 34,020 

Total 4,952,fe80 

First sergeants— iS,lSO, 

1, 067 first sergeants, 36 months' service $2,304,720 

433 first sergeants, 30 mouths' service 779,400 

360 first sergeants, 24 months' service 518,400 

134 first sergeants, 18 months' service 144,720 

136 first sergeants, 6 months' service 48,960 

Total 3,796,200 

Second sergeants — 3,1SS, 

1,366 second sergeants, 36 months' service $2,458,800 

650 second sergeants, 30 months' service 975,000 

823 second sergeants, 24 months' service 987,600 

165 second sergeants, 18 months' service 148,500 

119 second sergeants, 6 months' service . 35,700 

Total ' 4,605,600 

Corporals — 4,509. 

1,789 corporals, 36 months' service $2,576,160 

1,158 corporals, 30 months' service 1,389,600 

1,026 corporals, 24 months' service 984,960 

331 corporals, 18 months' service 238,320 

205 corporals, 6 months' service 49, 200 

Total : 5,238,240 

Privates— SO,ieO, 

8, 584 privates, 36 months' service $9,270,720 

8, 402 privates, 30 months' service 7,561,800 

2, 045 privates, 24 months' service 1,472,400 

3, 318 privates, 18 months' service 1,791,720 

7,811 privates, 6 months' service 1,405,980 

Total 21,502,620 

Summary'—4Sf031, 

11 major-generals $179,450 

19 generals of division 296, 175 

54 brigadier-generals 682,825 

153 colonels 1,491,750 

290 lieutenant-colonels 2,362,800 

578 majors 3,870,240 

966 captains 4,561,800 

1,245 lieutenants 3,763,800 

1,794 snblientenants 4,952,880 

2,130 first sergeants 3,796,200 

3,123 second sergeants 4,605,600 

4,509 corporals 5,238,240 

80,160 privates 21,502,620 



57,304,380 

Digitized by VjOOQIC 



24 

The government council, in a session held on the 14th instant, considering that 
according to the law of military organization there is established the rank of lit- 
eral of division, which did not exist when on the 2d of December, 1895, the salaries 
which the militarv and employees of the republic should enjoy, resolved to modify 
the resolution of that date, which will now remain in the following form: 

Monthly pay* 

Major-general $500 

General of division 450 

Brigadier-general 400 

Colonel 325 

Lieutenant-colonel 275 

Major 220 

Captiiin jv 130 

Lieutenant 100 

Sublieutenant 90 

First sergeant 60 

Second sergeant 50 

Corporal 30 

Private 30 

[p.y L.] Jost Clrmente Vivanco, 

Secretary of the Council and Chancellor, 

September 16, 1896. 

I sanction this in all its parts, promulgated in the legal form. 

Salvador Cisneros Betancodrt. 

Salaries paid the army per month. 



Rank. 



Mqjorseneral 

General of division 
Brigadier-general .. 

Colonel 

Lieutenant-colonel . 

Mqjor 

Captain 

Lieutenant 

Sublieuteuant 

Firi*t sergeant 

Second sergeant . . . 

Corporal 

Private 



Cnban. 



$500.00 

450.00 

400.00 

325.00 

276.00 

220.00 

130.00 

100.00 

90.00 

60.00 

50.00 

40.00 

30.00 



United 

States. 



$825.00 



458.33 

290. er 

250.00 

208.33 

150.00 

125.00 

116.67 

25.00 

18.00 

15.00 

13.00 



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U.S. Cuba. a-v^cL*Fort'o "^\co «>ipe.c\a.\ covriVv%NS'3\6Vie.r 

REPORT 



ON THE 



COMMERCIAL MD INDUSTRIAL CONDITION 



OF 



CUBA, 



BY 



ROBERT P. PORTER, 

SPECIAL COMMISSIONER FOR THE UNITED STATES 
TO CUBA AND PORTO RICO. 



SPECIAL REPORT. 
BTATIBTIOS OF THE IHP0BT8 DTTO THE ISLAND OF OUBA FOB 1896. 



RESPECTFITLLT SUBMITTED TO 

HON. LYMAN J. GAGE, 

Sborbtabt of thb Trbasurt, 
Washington, D, C. 



WASHINGTON: 

GOVERNMENT PRINTING OFFICB. 
1899. 



uigitized by VjOOQIC 



Treasury DsPARTMsirr, 

Doonment No. 2081. 
DiviBion of Cuetoms. 



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STATISTICS 

OP THE 

IMPORTS INTO THE ISLMD OF CUBA 



FOR 



1895, 



SHOWING QUANTITIES AND VALUES, ARRANGED 
AS PER TARIFF SCHEDULES. 



COMPILSD FBOM OFFICIAL SOUBCSS DNDBR THE 
DIRBCTION OF 

ROBERT P. PORTER, 

Sjpteial Cammi88i<m0r for the United States to Cuba and Porto Bieo, 



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APPENDIX 



TO THE 



REPORT 



OH TJPIB 



COMMERCIAL AND INDUSTRIAL CONDITIOK 



OF THB 



ISLAND OF CUBA, 



DJ 



BOBERT P, POKTEK, 

SPfeCIAL COMMISSIONER FOR THE LtNITED STATES 
' TO CUBA AND PORTO RICO. 



RBSPBCTFITLLT SUBMITTED TO 

HON. JLVMAN J, OAGE. 

SbCRKTARY CfF THK TRKASDHY, 

Washington, D, C,^ 
JUNE 18, i899. 



WASHINGTONj 
goveknment printing oltficb, 

1S99. 



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U.S. Cuba. 5LV»i- 'PorTo"H\t.o ^yscc\d.\ c-6VrkVYi\s>*i\6vver 



TO THB 



REPORT 



OK THB 



COMMERCIAL AND INDUSTRIAL CONDITION 



OF THE 



ISLAND OF CUBA, 



BY 



ROBERT P. PORTER, 

SPECIAL COMMISSIONER FOR THE UNITED STATES 
TO CUBA AND PORTO RICO. 



BBSPBCTFULLY SUBMITTED TO 

HON. LYMAN J. G-AGS^E. 

Sbcbbtart of the Trbasubt, 
Washington, D. C. 

JUNE IB, 1809. 



WASHINGTON: 

GOVBBNMBNT PRINTING OFFICBL 
1899. 



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Treasury Dbpartmkht, 

Doooment No. 2115. 
Division of CustomM^ 



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LETTER OF TRANSMITTAL. 



APPENDIX TO THE REPORT ON THE COMMERCIAL AND 
INDUSTRIAL CONDITION OF THE ISLAND OF CUBA. 



Tbeasury Department, 
Office Special Commissioner of the United States 

TO Cuba and Porto Eioo, 

June 15 J 1899. 
Sir : I have the honor to transmit herewith, as an appendix to my 
report on the commercial and industrial condition of the island of Cuba, 
copies of all letters received, testimony taken, and statements submitted 
to your commissioner since the receipt of your instructions in August, 
1898. The letters, testimony, and statements represent the views of 
persons either located in the United States and trading with Cuba or 
located in Cuba and doing business with the United States. Hearings 
were held and testimony taken in New York, Washington, and Boston, 
and in Havana, Cienfuegos, Santiago, Trinidad, Caibarien, Sagua la 
Grande, and other parts of the island during the three visits which 
your commissioner made. In addition to the testimony taken, many 
valuable statements in relation to the financial, commercial, and social 
condition of the island were voluntarily made to your commissioner. 
Many of these statements, in themselves, give a more clear and concise 
view of the economic condition of Cuba, prior to its occupation by the 
United States forces, than any report which your commissioner might 
make. Especial attention is called to the admirable statements of 
Adolfo Munoz, one of the most thoughtful Cubans it has been your 
commissioner's pleasure to meet, and that of the Marquis de Apeztequia, 
president of the Conservative party, and one of the ablest men in Cuba 
to-day. 

Prefixed to the testimony on sugar, tobacco, and the mines of Santi- 
ago will be found brief reports on these industries, which your commis- 
sioner has deemed best to insert here instead of publishing as separate 
rei)ort8. 
All of which is respectfully submitted. 

EoBERT P. Porter, 

Special Commissioner. 
Hon. Lyman J. Gage, 

Secretary of the Treasury^ 

Washington^ D. 0. 

8 



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LETTERS RELATING TO PROPOSED CHANGES IN THE 
CUSTOMS DUTIES OF CUBA. 



At the commencement of your commissioner's investigations into 
the commercial and industrial condition of Cuba the following circular 
letter was addressed to leading firms in the United States doing busi- 
ness with the island: 

Treasury Department, 
Office Special Commissioner for the United States 

TO Cuba and Porto Rico, 

September 14, 1898, 
Dear Sir: The President early in August appointed me special commissioner for 
tlie United States to investigate the conditions of industry, trade, foreign commerce, 
currency and banking systems in Cuba and Porto Hico, and make a report thereon 
for the use of the Administration and Congress. I shall be in Havana during the 
negotiations for the evacuation of the Spanish troops, and on the spot immediately 
apon the restoration of business. I have alreadv had conferences with some of the 
leading concerns in this country interested in Cuban commerce and Cuban industry, 
and have obtained their views as to tariff, baukin^, currency, etc. The President 
and Secretary of the Treasury are anxious that all interested should have an oppor- 
tunity to express their opinions as to the future tariff of the island and as to the 
future fiscal legislation of the island. 

Will yon kindly examine the copy of the Customs Tariff and Regulations, which 
I am sending you by this mail, and suggest to me any changes in any schedules 
which you may have esLpert knowledge of or are interested in. Also, if any other 
suggestions occur to you in relation to the subjects under consideration you will 
couf^ a favor by putting them in writing, so they may be carefully considered. 

I should like, if convenient, to have your answer within a week or so, so that it 
will be ready upon my return to this country, when I shall at once take it up and 
frame my report to the President and Secretary of the Treasury. 
Very truly, yours, 

Robert P. Porter. 

P. S. — I inclose herewith an errata slip, calling attention to errors in the tariff 
discovered since they were printed. I also inclose tariff circulars 3, 4, 5, and 6. 

Below will be found the replies received to this communication, 
arranged according to the various schedules of the tariff. Statements 
made and testimony taken in the United States and Cuba having spe- 
cial reference to rates of duty are also included in this classification. 

Class I.— Stones, Earths, Ores, eto. 

paving stones. 

Havana. 
Hon. EoBBRT P. Porter, Special Commissioner^ etc.y 

Dear Sir : One of the most urgent steps to be taken for the sanita- 
tion of the city of Havana is to pave the streets. This has never been 
thoroughly done; perhaps not one-tenth of the city is paved. The 
paving stones used were imported from Spain at 20 cents per 100 kilos, 
or from foreign countries at 40 cents per 100 kilos. This is extortionate, 

5 



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6 COMMERCIAL AND INDUSTRIAL CONDHION OF CUBA, 

and the result is that only a defective macadamized pavement is used 
on the city streets (on all the island). This is one of the greatest causes 
of disease. The dust invades the private dwellings and permeates the 
very air, carrying with it numberless germs. 

I think that the reduction already effected in the tariff is insufficient 
The proclamation of the President of the United States abolished the 
differential column of duty on foreign goods, but 20 cents per 100 kilos 
of paving stones is still too high; it might be reduced to 10 cents per 
1,000 kilos. Eighty thousand dollars of duty will have to be paid by 
the municipalities when they import the billions of paving stones neces- 
sary to pave Havana, Matanzas, Cardenas, Gienfiiegos, Santiago, etc 

Asphalt might be used for paving the streets, as in Washington and 
New York, but I do not know that it could stand the continuous beat 
of the island, and even then perhaps it would be prudent to inquire of 
experts whether the duty now extant on asphalt is or is not too high. 
Kespectfully, yours, 

Samuel Gibebga, 
Alderman of the Oity of Havana, 



COAL. 



New York, Sepi^emher 16j 1898. 
Hon. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir: I am in receipt of your communication of the 14th 
instant, concerning the customs tariff and regulations for ports in Cuba 
in possession of the United States, wherein you desire my opinion. 

In response I beg to make mention of mineral coal. Said coal pays 
for 1,000 kilos (custom-house duties), 40 cents; tonnage dues pay for 
each steamer for each net ton, 20 cents, and for each ton of coal landed 
in Cuba in a steamer, 12^ cents; total, 72^ cents American gold, which 
means paying as much duty as under the Spanish rule. 

In previous years, when the Spanish Government in Cuba used to put 
duty on tonnage, they made an exception of tonnage duties on all ves- 
sels taking cargoes of coal, with the object of not charging excessive 
duties on coal to be used and consumed by the sugar plantations, rail- 
roads, and machineries in Cuba, and as an inducement to vessels to 
take coal out there aB ballasting, and at a very low rate of freight, for 
a return of cargo of sugar. 

It is easy to understand that on a ton of coal that is worth $2.50 it is 
excessive to pay 32^ cents for tonnage duties, when a ton of flour that 
is worth $50 pays 45 cents. 

If you think I am right, I hope you will take it into consideration, in 
order that the tonnage dues be taken off' all vessels that carry coal, and 
the coal thus to be free of all duty, and therefore resulting in the coal 
being made cheaper to the consumers on the island, same as it was in 
previous years, when the McKinley treaty was suggested with Spain. 

As 20 cents per net ton is paid by the vessel, it is natural that the 
master of the vessel, when taking coal for Cuba, would ask a price that 
would cover the 20 cents. 

The 12 J cents, it is understood, is paid by the consignors of the cargo 
of coal. 

I am, dear sir, yours, very truly, 

J. B. Barrios. 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 7 

PETROLEUM. 

New York, September 2^ 1898. 
Hod. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir: The West India Oil Refining Company, with refineries 
located at Havana and Porto Rico, is a company organized under the 
laws of the United States, is operated by American capital, and is 
under the management of American citizens. The crude oil, coal, 
chemicals, machinery, and cans and cases are all ftirnished from the 
United States. The two works employ a very large number of men, to 
whom they have given work for a long period of years, and as man- 
ufacturing interests in Cuba and Porto Rico are very few, the West 
India Oil Refining Company has become well known at both points. 
The running of the Havana and Porto Rico refineries has been fostered 
by a protective duty, and yet prices of refined oil to the consumers, 
both in Cuba and Porto Rico, have been decreased fully 25 per cent since 
cor manufacturing there, this owing to the business having been taken 
from the hands of a few Cuban and Porto Rican importers, who formerly 
controlled the situation. 

To maintain and run these two refineries we require a protective 
duty. Since the works were erected the Spanish Government has 
made several changes in petroleum duties. At one time the net pro- 
tection was 23f cents per gallon. During the existence of the reciprocity 
treaty we had a protection of 16^ cents on refined. The last tariff gave 
us a protection of only 7f cents per gallon between crude and refined, 
the rate having been lowered surreptitiously just before publication. 
The Spanish Government issued a decree to correct and advance this 
to 18f cents per gallon, but this charge was rendered inoperative and 
did not go into effect owing to the breaking out of the war. 

With the duty in force at present, and which, as before explained, is 
contrary to the royal decree, it will be impossible for us to continue 
operating the refineries, and the several hundred thousand dollars 
invested in plant must become practically a complete loss, as to dis- 
mantle the construction would mean its ruin. 

We do not ask the highest protection which the Spanish Government 
has accorded this American industry in the past; but to operate the 
works we really require something like the protection given us under 
the reciprocity treaty, which was a little over 16 cents on refined, and 
at which time we had free crude. If it is thought necessary to place a 
duty on crude, then we would respectfully suggest a net protection of, 
say, 14 cents between crude and refined, which would be considerably 
less than the protection accorded us in the past. 
Very truly, yours, 

P. Q. Barstow. 

Supplemental statement of Mr, Barstow. 

The present duty on crude oil going into Cuba, as shown on page 27 
of the pamphlet just issued, of 3.08 pesos per 100 kilos equals 11.25 
cents per gallon duty on crude oil. 

The duty of 5.20 pesos per 100 kilos of refined oil equals 18.98 cents 
per gallon. If this duty on crude oil is to be maintained, then in order 
to secure a jwrotection of 14 cents it will be necessary to make the duty 
on refined oil 6.92 pesos per 100 kilos, which would equal 25.24 cents per 
gallon of refined. 



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8 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



The duty in Porto Rico, as shown on page 17 of the pamplilet jnst 
issued, is 0.65 pesos per 100 kilos net weight on crude oil, which equals 
1.65 cents per gallon, or the gross weight — that is, including the pack- 
age — equals 2 cents per gallon on the crude. To insure 14 cents protec- 
tion at this point would necessitate duty of 6.22 pesos per 100 kiloe, 
amounting on net weight to 15.66 cents per gallon. If this is applied 
on the gross weight, this 14 cents protection would necessitate a duty 
of 4.44 pesos per 100 kilos, equal to 16 cents per gallon on the refined. 



Havana, September I9j 1898. 
Hon. EoBEBT P. POBTBB, Special Commissioner^ etc. 

Sir : I beg to submit to your kind consideration the following infor- 
mation regarding the petroleum business in Cuba: 



Year. 



Aggregate 
sales. 



Ayerage net prioea 
(cents per gallon). 



Spanish 
gold. 



American 
currency. 



Importa-| 

lion of re- Total trade, 
fined oil. 



Propor- 
tion of 
imported. 



1891. 
1892., 
1893. 
1894. 
1895. 
1898. 
1897. 
1898. 



OaiUont. 
8, 830, 000 
4, 380, 000 
4. 580. 000 
4, 700, 000 

> 4, 050, 000 

> 2, 500, 000 
»2, 700, 000 

1950,000 



96.40 
24.10 
21.50 
22.50 
25.40 
80.10 
80.20 
81.80 



24.00 
21.91 
19.55 
20.45 
23.09 
27.36 
27.45 
28.91 



Qattont. 
170.000 
154,000 
161,000 
66.000 
17,000 
17,000 
24,000 
70,000 



Odllim: 
4,000,000 
4,534,000 
4,741,000 
4,766,000 
4,067,000 
2,617,000 
2,724,000 
1,020,000 



Percent. 

4.25 

3.40 

8.40 

1.38 

.43 

.OB 

.88 



»War. 

The statistics for 1898 correspond to the first half of said year. 

All the crude oil, coal, chemicals, machinery, cases, and cans are 
iin])orted from the United States. 

Our net selling prices today in cases — packages included — are as 
follows: Water-white oil, 37 cents Spanish gold per gallon, equal to33| 
cents currency, common refined oil, 33 cents Spanish gold per gallon, 
equal to 30 cents currency ; averaging about 34 J cents Spanish gold 
per gallon, equal to 31^ cents currency. Said prices include, of course, 
the duties corresponding to the crude oil employed, duties which actu- 
ally amount to about 13.80 cents Spanish gold per gallon of crude oil, 
and as 1 gallon refined oil is equal to about 1.20 gallons crude oil, the 
equivalence on said 1 gallon refined oil manufactured by us is about 
16.66 cents Spanish gold. Now, then, if crude oil were on the free list, 
our selling prices could be curtailed just the full amount of duties 
above mentioned, and we would have the following figures: 

Centa per gallon. 

Average Helling prices 34.33 

Less duties 16.56 

Reducing our actual average selling prices per gaUon to (Spanish gold). 17. 77 
Equal to (American currency) 16.15 

I would now mention that our prices have always been fully 25 per 
cent cheaper than those of the imported oil, the consumer deriving 
therefore that benefit from our industry in this country, and the small- 
ness of the importation of refined oil is a good evidence of what 1 state. 

I beg to inclose a translation of the royal order issued at Madrid^ 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 9 

IDecember 7, 1S97, in reference to duties on refined oil, which, however, 
lias not gone into effect, owing to the breaking oat of the war. 

And referring to Mr. P. Q. Barstow's letter, dated New York, Sep- 
'tember 2, 1898, 1 am, sir, 



Yours, very truly. 



Julio Duregb. 



[Inclosare.] 

Madrid, December 7, 1897. 
To the Govern or- General of Cuba, 

Most Exckllknt Siu: After considering the application made to this ministry by 
Mr. Fermin Calbeton and Mr. Demetrio Perez de la Riva, representative and attor- 
ney, respectively, of the petroleum refinery in the city of Havana, in which appli- 
cation they claim against the amount of fiscal duty appearing in the provisional 
customs tariff' now in force in that island, taking into consideration that orude 

? petroleum has been charged now with the import duty charged to it formerly, and, 
nrthermore, the manufacturing tax affixed for refining same, whereas refined petro- 
leum does not appear charged with the transitory 10 per cent enacted by the law 
of February 20, 1895, and that of August 6, 1893, they, therefore, ask that the 
manufacturing differential margin between paragraphs 7 and 8 of the actual tariff 
be sufficient, as formerly, in order to protect the petroleum-refining business for 
lighting purposes in the island of Cuba, which industry can not continue with the 
difference between the two paragraphs of the tariff aforesaid as now in force. 

Considering incontestable the ground and reasons alluded to in the application 
addressed to this ministry by Mr. Fermin Calbeton and Mr. Demetrio Perez de la 
Biva, since in the new tariff crude petroleum stands subject to the aggregate of 
three duties— viz, the one of the old tariff, the transitory of 10 per cent, and the 
manufacturing internal tax — whereas refined petroleum is charged only with the 
tariff duty of $5.20 for 100 kilos, reducing manufacturing differential margin from 
$5.14 to $S 12; considering that it appears evident in the proceeding the impossi- 
bility of maintaining in the island of Cuba the business of refining petroleum, 
sustaining the actual duties, since the ministry of finance affirms the accuracy or 
the oalculations exposed in the application of Mr. Perez de la Biva, according to 
which the refining business in Spain is protected with a margin or 20.28 pesetas 
for 100 kilos, and, again, that General Government, in a cable message dated the 2d 
instant, confirms the notorious inequality produced by the new tariff for petroleum 
and considers convenient a reform thereon, His Majesty the King, whose life may 
God save, and, in his name, the Queen Begent of the Kingdom, in accordance with 
the council of ministers, authorizes your excellency for affixing to refined petroleum 
the duties formerly levied on same before the actual tariff, say $8.22 for 100 kilos, 
maintaining at the same time $3.08 for crude petroleum. 



New Yobk, August 13, 1898. 
Messrs. J. M. Ceballos & Co. 

Gentlemen: We are much pleased to learn that Mr. Kobert P. 
Porter will be in year office ou Monday, and that he is interested in 
having a Oaban tariff framed favorable to the indastries of the United 
States. In this connection we therefore beg to quote from our letters 
to the Hon. L. J. Oage, Secretary of Treasury, under dates of July 20 
and 30. 

The duty in force under Spanish rule on petroleum imported into 
Cuba in 1897 and previous years was as follows: 

On refined petroleum, $3.30 per 100 kilos, net weight (equals 15} 
cents per gallon). 

On crude petroleum, $1.20 per 100 kilos, net weight (equals 3^ cents 
per gallon). 

Crude petroleum is not produced in Cuba or Porto Bico. 

All of the crude petroleum refined in Cuba has been imported into 
that island from the United States. 



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10 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA- 

In 1897 Cuba imported 4,772,589 gallons of crude petroleum. (See 
(xoverument report.) 

The duty, at 3^ cents per gallon, amounted to $167,040.61. 

In 1897 Cuba did not import any refined petroleum. (See Govern- 
ment report.) 

Tlierefore the revenue received by the Spanish Government waa 
exclusively on crude petroleum, amounting to the above sum. 

Prices in the United States are as follows: 

Crude petroleum, in cargo lots for export, in barrels, 6J cents per 
gallon. 

Refined petroleum, in cargo lots for export, in barrels, 6^ cents per 
gallon. 

Eefined petroleum is quoted in the United States for export in casee 
of two 5-gallon cans each, at 6.9 cents per gallon, or 69 cents for each 
case. 

The freight in cargo lots is about 15 cents x>er ease, thus making each 
case of oil cost when landed in Cuba about 84 cents. 

We are informed that refined petroleum (refined from crude petro- 
leum in Cuba) is sold in Cuba to wholesale dealers at 27 cents -per gallon 
and upward, or $2.70 per case and over; therefore it would seem that 
the duty on refined petroleum in 1897 increased the price of that oil to 
the consumer J1.86 per case. 

All that Spain received was 35| cents per case. 

It is evident that if the Government of Cuba imposes a tariff of 3J 
cents per gallon^on refined petroleum and on crude petroleum and its 
products the amount of duty collected will be the same as the amount 
of duty which was collected in 1897, and thus the Government will 
receive the full amount of duty which they have hitherto received, and 
the people of Cuba will buy their refined petroleum for about $1.50 per 
case less than they have hitherto paid, and the only people who will be 
disadvantaged will be the few who are interested in the little refinery 
which manufactures the very small quantity of 447,000 cases of refined 
petroleum from the crude petroleum imported from the United States 
in 1897. 

Yours, truly, Longman & Mabtinbz. 

In commenting on this statement of Longman & Martinez, Mr. F. Q. 
Barstow, the New York representative of the Havana Oil Hefinery, 
says: 

Longman &, Martinez, in making their comparison between the cost of emde 
petroleum in cargo lots and refined oil in car^o lots, do not quote the grade of refined 
oil which is sent to Cuba, or which is made m Cuba, so that the comparison is far 
from being a fair one. Then again, in the comparison they attempt to make they 
take the cargo price in New York of a low test oil and make a comparison with the 
price at which the highest test and highest grade of retiued oil is sold m small quan- 
tities in Havana^ so that the comparison is valueless. 



EoCHESTER, N. Y., September 19y 1898. 
Hon. Robert P. Porter, Special Commissioner, etc. 

Dear Sir: Your communication of the 14th instant, addressed to 
our New York office, has been forwarded to us, and we are under obli- 
gations for the privilege of making suggestions in regard to the Guban 
customs tariff, which, so far as we can judge, seems to be largely a copy 
of the Spanish tariff in force before and during the early i>eriod of the 
rebellion there (at which time we were doing a considerable business 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



11 



iu lubricating oils composed principally of petroleum), excepting that a 
discount of 25 per cent was allowed from the fixed price, with a 
recharged duty of 10 per cent ''transitorie;'' so that in reality your 
present proposed tariff is in excess of the former excessive rate. In 
this connection we take the liberty of submitting to you the duty rate 
on petroleum lubricating oils in several foreign countries, reduced to 
rate per wine gallon, viz : 



France cents.. 5^ 

Italy do... 4i 

Gkirmany do... 9i 

Austria do... 7i 

Switzerland do... 1 

Portugal do... 1 



Denmark (maximum) cents.. 8 

Norway do... 3f 

Russia do... 16 

Finland do... 5^ 

India per cent ad valorem.. 5 

Australasia (maximum) cents . . 10 



Tou will see from the above that Eussia is the only country that even 
approximates the duty proposed to be levied in Cuba, which is the 
equivalent of about 17 cents per wine gallon. 

In addition to this, we desire to call your attention to the proposed 
duties on oils that are used in competition with mineral lubricating 
oils, viz, vegetable oils, No. 103 of the tariff; cod-liver oils, No. 104 of 
the tariff; olive oils, No. 282 of the tariff. As these oils are principally 
imported into Cuba irom other countries than the United States, lesser 
rates of duty discriminate against petroleum lubricating oils which, so 
far as Cuba is concerned, have been imported only from the United 
States, and we found considerable competition from these oils — esi>e- 
cially the fish oils — when we were regularly established in Cuba. 

With the hope that we have not been too verbose in our efforts to 
explain that the duty on petroleum lubricating oils, i. e., lubricating 
oils of which the major portion is made from petroleum, is excessively 
high, taking into consideration the duties on competitive oils princi- 
pally produced outside of the United States, we are. 
Tours, very truly, 

Vacuum Oil Company, 

0. M. Everest, Vice-President. 



Submitted by R. A. C. Smithy 100 Broadway^ N. T. 

DUTIES ON PETROLEUM AS PER CUSTOM-HOUSE TARIFF. 

1. The tariff which was in force before the present one — that is, the 
tariff' of 1892— called in section 7, second column, for $1.10 duty on each 
100 kilograms of crude petroleum. Note No. 5 of this section remarked 
that gas oil for gas factories had to pay duty according to section No. 7, 
with a reduction of 50 per cent. In this way the gas company had to 
pay for each 100 kilograms of gas oil 55 cents plus the 10 per cent of 
customs dues of the tariff, which makes it 11 cents. 

2. Besides the duty of $1.10 per 100 kilograms on the crude petro- 
leum and the 11 cents transitory duty, this commodity, when imported 
to be refined, paid a fabrication and consumption duty amounting to 
$1.87. which raised the customs duty and consumption duty on all 
I)etroleum imported to be refined to $3.06. The gas company, not 
having a refinery, is exempt from this duty of $1.87. 

3. But the provisional tariff which is in force now comes in and 
includes in the duties on crude petroleum (section 7) the duties on 



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12 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

fabrication and oonsamption that formerly were charged only to the 
refineries and establishes now a fiscal duty of $3.08 per 100 kilograms. 

4. At the same time that the tariff duties were so considerably 
advanced over the duties which the gas company used to pay, it 
declared that the crude oil which the gas company imported would be 
charged according to the same section No. 7. 

6. In view of the fact that the light company was obliged to pay 
$3.08 for what they formerly paid 66 cents, the company appealed to 
the secretary for the colonies and obtained an order that they should 
pay for gas oil with a reduction of 50 per cent, or $1.54 for each 100 
kilograms, and, although there is still a large difference between 66 
cents which they used to pay and $1.54 which they now pay, they 
accepted this reduction, reserving to themselves to lodge further 
objections when the tariff is revised. 

6. The United States Government is now in possession of some of 
the customhouses on the island, and after proclaiming that the second 
column of the present Spanish tariff would be appli^ entirely it will 
be seen that in the tariffs and regulations printed in Washington and 
which have been in force since August 8, 1898, everything is in con- 
formity with the Spanish tariff*, with the single exception of section 7, 
relating to crude petroleum, where the duty is placed at $8.03 per 100 
kilograms. This must be an error caused by the accidental transposi- 
tion of the figures $3.08 of the Spanish tariff, making them $8.03 in 
the American tariff, the figures having been reversed. It must be an 
error, inasmuch as this variation does not agree with the declaration 
that the duties on the second column should govern, nor does it agree 
with the $3.08 which we know to be what the gas company of Santiago 
de Cuba pays for every 100 kilograms of crude petroleum. 

7. Under no consideration would this enormous increase on petroleum 
be justified, as it is a i)roduct which is imported exclusively from the 
United States, and instead of having a prohibitory duty of $8.03 it 
should be considered free of duty whenever it is .used for the manufac- 
ture of illuminating gas. 

8. On the other hand, to keep a high duty on petroleum and gas oil 
would be to destroy one of the most important and necessary indus- 
tries — gas lighting — which is now carried on by the Spanish- American 
Light Company, of Havana, constituted under the laws of the State 
of New York. 



GASOLINE. 

Philadelphia, Pa., November 5, 1898. 
Hon. Egbert JP. Porter, Special Oommissioyierj etc. 

Dear Sir : Mr. Lucas, secretary of our company, has handed us a 
schedule of customs tariff and regulations in the ports of Cuba, and I 
beg to say that on page 27 we find gasoline to be dutiable at 5.20 pesos 
per 100 kilos, which we estimate to be about 13 cents per gallon. This 
seems to us very excessive on an article which costs here between 5 and 
6 cents per gallon. 

If it can be reduced to something like 100 per cent on invoice value 
we believe it would be of benefit to our enterprise. 
Yours, very truly, 

George W. Grove, 
General Manager International Incandescent Light Oompanji. 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 13 

OOBDAaB OIL. 

New York, November 11^ 1898. 
Hod. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir: Referring to the conversation writer had with you yes- 
terday, I beg to call your attention to the fact that cordage oil is one 
of the most important items in the manufacture of cordage and binder 
twine. A certain percentage of cordage oil is necessary to be mixed 
with the raw material (henequen, hemp, etc.) in order that the latter 
can be worked on the machinery. As cordage oil only costs 1^ cents 
per pound, cordage manufacturers all over the world have found out 
tbat it pays them to put into the raw material as much oil as possible, 
as only a small per cent of the oil evaporates or is lost in waste, the 
^eater part staying, which of course is sold to the trade at the price 
of cordage or binder twine, these articles being sold by weight. It is 
tbe custom now in nearly all cordage factories to use about 13 to 15 
pounds of cordage oil to 100 pounds of raw material. This explains 
the importance which oil plays in the manufacture of cordage and 
binder twine. 

I would respectfully suggest that a special item be made in the new 
Gnban tariff, "Cordage oil for the manufacture of cordage and binder 
twine only," and I should think that a duty of $1 per 100 kilos would 
be about fair, which would be a protection of about 40 per cent ad valo- 
rem; 100 kilos of cordage oil costs here $2.47, and a protection of 40 
per cent ought to be sufficient to the oil factory in Havana. I also take 
the liberty to remark that during the last year the oil factory in 
Havana has supplied us with such poor oil that we were forced very 
often to import the oil from the (Jnited States, even at the very high 
duty. 

Kindly give this matter your consideration, and oblige, 
Yours, very respectfully, 

Ernest Eaffloer, Treasurer. 



l^BW York, November 19, 1898. 
Hon. BoBERT P. Porter, Special Commissioner, etc. 

Sir: Upon further considering the question of cordage oil for our 
Havana mill we wish to say that too much care can not be given to the 
duty on this commodity in making up your tariff for the island of 
Cuba. Inasmuch as in the manufacture of first-class rope it is neces- 
sary to use about one-sixth oil to five-sixths hemp, you can under- 
stand how vitally important it is to us that the duty on oil should not 
be greater than $1 per 100 kilos, which would be a fair revenue, and at 
the same time a protection of about 40 per cent to the oil refineries in 
Havana, if they see fit to manufacture the same for us; but inasmuch 
as we are the only consumers of cordage oil it would not be profitable 
for them to extend their works in order to make this oil in the way 
necessary for our use. 

Therefore if you can not see your way clear to do this we would 
kindly ask you to give us a special hearing on the subject, at which 
time the president of a prominent cordage oil company will explain 
more fully the way in which cordage oil is manufactured, prepaied^ and 
used. 



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14 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

In years past oar mill has been very badly handicapped in the manu- 
facture of first-quality rope. The high duty on cordage oil prevented us 
from using the latter in such quantities as would have been necessary, 
and the oil refined in Havana was always so poor that we only used it 
in small quantities. 

Our object in again bringing this before you is to avoid oar past 
experiences, and we trust you can assist us to obviate this most vital 
point. 

If we are not to be favored on this commodity we will be handicapped 
to the extent of using as little oil as possible. Therefore the quality of 
our rope will suffer, and the export of oil from the United States will 
be proportionately less. 

We would respectfully suggest that you embrace a special item in 
the Ouban tariff, calling it '^Cordage oil for the manufacture of cordage 
and twine only.'' 

We note from the papers that you contemplate an early departure to 
Cuba. If such is the case and you can not give this matter yoor con- 
sideration kindly advise whether we shall bring the question before 
the Treasury Department, and greatly oblige, 
Yours, very respectfully, 

Hbydrich, Raffloeb & Co. 
Ernest Kaffloeb, Treasurer. 



TILES FOR ROOFING. 

Statement of Charles T, Harris, president 

Celadon Terra-Cotta Company, Limited, 

Xetc York Citg. 

Under the Spanish rule the tariff on roofing tiles was 30 cents i>er 
kilo for tiles of Spanish manufacture and 70 cents per kilo for all others. 

The weight basis of tariff for this product is all wrong, because the 
material is sold not by weight but by the usual roofer's measure, a 
square, or 10 by 10 feet, the world over; so that on the basis of the 
kilo the tiles that were the poorest were the lightest, and no chance was 
given to good material, which is heavier than the poor in this class of 
goods. On any tariff based on weight, therefore, there would be abso- 
lutely no show for American goods, as they are better and therefore 
heavier than European. 

I contend that the tariff on this material should be based on the unit 
measure of sales, or so much per square; in other words, on covering 
capacity instead of weight. 

The size of each tile is at once apparent and the number that it takes 
to cover a square clearly shown; also all invoices are made on the basis 
of the square, so that the tariff could be just as easily adjusted and 
collected on that basis as on the basis of weights. 

The Spanish tariff of 30 cents per kilo was equal to a tariff of about 
$1.25 on American tiles, as they average about 800 pounds to the sqaare 
in weight. Therefore, if in forming the new tariff roofing tiles are 
entered at $1 per square, or even $1.50 per square, all manufacturers 
in every country will be on exactly the same basis of equity, and then 
American products will secure for themselves more ready sales becaase 
of their better quality and less carrying charge. 

As I understand it, the present revision shows a rate of 60 cents per 
kilo, or 60 cents for 225 pounds, or about $2.50 per square on Ameri- 



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COBfMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 15 

can tile. This would amount, however, to only $1.25 per square on 
French and Spanish tiles, owing to the tact that they weigh only about 
one- half what the American product does. American tiles are compact 
and vitrified and therefore heavy. Spanish tiles and French tiles are 
porous and spongy and therefore light. 

Personally we do not care what the amount of the tariff decided upon 
may be, provided it is levied by the square of covering capacity and 
not by weight. It is both right and reasonable that goods sold by the 
square should pay tariff by the square instead of by the pound or kilo, 
which was a scheme devised by the Spanish to shut out everything 
else but their own light and poor product. If a tariff* by the square 
should be enacted, we are sure of an immediate export trade through 
lines already established to handle same; but it will not be possible to 
put American goods with their weight into that island on a tariff basis 
which discriminates in favor of the very light, porous, and poor mate- 
rial of southern Europe. 



New York, September 16, 189S. 
Hon. BoBBBT P. Porter, Special dyinmissioner, etc. 

Dear Sir: We are duly in receipt of your esteemed favor of the 
14th instant, and thank you for the copy of the Customs Tariff and 
Regulations for Ports in Cuba in Possession of the United States. 

In our opinion the duty on tiles, bricks, etc. (group 6, page 28, No. 16), 
18 excessive and should be reduced fully 40 per cent in order to offset 
the imperatively high charges which must always be incurred on this 
heavy commodity for transfer from this country to Cuba. 
Very tiuly, yours, 

JiMENIS & Co. 



Glass II.— Metals, and Manufactures of. 

CAST-IRON PIPE, 

Philadelphia, Septeinber 19, 1898. 
Hon. BoBERT P. Porter, Special Commissioner, etc. 

Dear Sir: Replying to your letter of September 14, the article in 
which we are most interested is cast-iron pipe. The value of this 
material f. o. b. this country for shipment is about $15 to $17 per 2,240 
pounds. The duty which is indicated upon page 29, viz., 60 pesos for 100 
kilos, is equivalent to $5.60 per 2,240 pounds; so that you will see that 
the duty is a very large percentage of the value of the pipe. 

We would also call your attention to the fact of the difference of duty 
between pig iron (out of which the castings are made) and the castings 
themselves, which is 40 pesos per 100 kilos, amounting to $3.72 per 
2,240 pounds. You will appreciate that this difference is a much larger 
proportion of the cost of making pipes than the difference of wages and 
materials in Cuba; in fact, it is 56 per cent of the cost of converting 
pigiron into pipe. 

We are putting the details thus before you, so that you may have full 
information as to how to fit cast-iron pipes into your general schedule. 
Yours, very truly, 

R. D. Wood. 

R. D. Wood & Oo. 



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16 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

JEWELRY. 

New York, September 15, 1698. 
Hon. Robert P. Porter, Special Commissioner, etc. 

Sir : We acknowledge the receipt of yonr commonlcation of the 14tb 
instant ; also the Oaban tariff as adopted by the War Department. We 
have sent yoor communication to oar house in Havana, who will, if 
they have any suggestions to make, write to you at their earliest pos- 
sible time. 

The writer has examined the tariff and finds it to be only a transla- 
tion of the Spanish tariff, which was not made for collection by the 
Government, but for the officers. It is difficult to understand^ trou- 
blesome to find what classifications apply to, and inconsistent and 
ii\jurious to trade. For instance, watches, other than gold, pay 1 peso 
each, which would be an enormous tax on a watch which cost 60 cents 
and but a very small tax on a watch which cost $15. We have been 
trying to find what the duty would be on flags, but can not definitely 
come to any conclusion. These matters have, when Ouba was in the 
possession of Spain, always caused much trouble and annoyance, and 
the whole tariff should be worked over by American experts in connec- 
tion with the importers in Havana. You would then probably make a 
tariff' which will bring a revenue, while this adapted tariff was made 
in the interest of the Barcelona manufacturers, whose goods come in 
under a low tariff, and goods manufactured in other countries pay a 
high tariff. 

Very truly, yours, 

Morris, Heymank & Go., 
S. Hbymann. 



WIRE. 



New York, September 21, 1898. 
Hon. EoBERT P. Porter, Special Commissioner, etc. 

Dear Sir: Your favor of the 14th, addressed to Allentown Wire 
Works, Allentown, Pa., has been duly received, since our mills are tiie 
only wire works in that city. 

Eeplying to it, I would say that firom a broad standpoint we think 
that strictly American goods should enter any port under our control 
free of duty; that is, that commerce should be as unrestricted between 
all parts of our territory as between any of the States. 

The particular articles in which we are especially interested at the 
present time are barb wire, fence staples, woven fence, all kinds of iron 
and steel plain wire, wire nails, wire rods, chains, tacks, and rivets. 

Barb wire, plain wire, and field fence, under the previous conditions 
existing in Cuba and Porto Eico, are absolute necessities to all planters 
and farmers, and if duties are to be collected, they should only be very 
light on articles like these, which are absolutely essential to the proper 
development and cultivation of the land. 

Wire nails, as you will doubtless recognize, are necessities not only 
to planters and farmers, but to builders of all classes in the cities and 
in the country, and we therefore think these articles should also be 
treated liberally. 



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COMMERCUL AND INDUSTRUL CONDITION OF CUBA. 17 

The other items mentioned are of less importance to the general 
oommanity, yet they will i)e, we think, recognized by yoa as everyday 
necessities for the majority of the people. 

8honld you desire or require any specific information which we can 
give you, we will have pleasure in doing so. 
Yours, truly, 

F. E. Patterson, 
Manager American 8teel and Wire Company. 



PIG IRON. 

HoKENDAUQUA, Pa., September 22^ 1898. 
Hon. EoBBRT P. Porter, Special Commimoner^ etc. 

Dear Sir : Eeplying to your favor of the 14th, with respect to our 
views on the amendment of the present import tarifif schedule of Cuba 
and Porto Eico, we would state that we are emphatically in favor of 
a tariff to these islands that will admit free of duty pig iron and the 
wares of iron. We further believe that there should be discrimination 
in favor of the Unit^ States. This, we think, should be reached by a 
remission of duties when goods are imported in American bottoms. 
Also admission of Cuban ore free of duty to United States. 
Yours, truly, 

The Thomas Iron Company. 



STRUCTURAL IRON AND STEEL WORK. 

New York, October 25 j 1898. 
Hon. Robert P. Porter, Special Commissioner, etc. 

Dear Sir: Keferriug to the conversation with the writer in relation 
to the question of the duties to be fixed by the United States Govern- 
ment for imports of structural iron and steel work for buildings and 
bridges to the islands of Cuba and Porto Bico, we are, as you know, 
largely interested in this subject, having in previous years done an 
extensive business in the above line of goods to these countries. 

During the years that the reciprocity treaty was in effect, and the 
United States was classed in the favored-nation clause, structural steel 
and iron for buildings was admitted into the island free of duty. Dur- 
ing these years a large amount of this class of work was sent to Cuba, 
and this country and the people in Cuba did everything they could to 
foster this trade. 

It is a fact which everyone knows who has traveled throughout Cuba, 
that the material used in the sugar mill buildings for the grinding of 
cane is of a very expensive nature, and the only proper way to house it, 
or cover it in, is by the use of steel or iron buildings. Previous to the 
time when this class of work was admitted free of duty the only way 
these buildings were built, with a very few exceptions, was by the use 
of wood. Owing to the inflammable nature of such a building con- 
structed of wood fires were frequent, due sometimes to incendiarism, 
sometimes by accidental Are from cane-field fires, and also from care- 
lessness in the handling of the bagasse, so that the planters learned by 
sad experience that the only way to protect their machinery was by the 
use of fireproof buildings constructed of iron and steel. 
21146 2 

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18 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

After the revolution broke out in the island any quantity of these 
sugar- mill buildings that had not been recoifstructed in iron and steel 
were destroyed by fire or otherwise, leaving the machinery intact but 
unable to operate until closed in by some suitable structure. 

We have read with a great deal of interest your views on the impor- 
tance of admitting cattle for farm work and for breeding purposes, 
and also agricultural implements for tilling the soD, free of duty, but 
we fail to find any reference in the newspaper articles to the admission 
of the class of work above referred to free of duty, which we think 
you will agree with us ought to be. Of course, if a planter is able to 
grow his cane and cut it and is unable to grind it simply because he 
does not have a shed over his machinery, he is no better off than if he 
did not have the cane, for the reason that in order to export the cane 
he must of necessity reduce it to sugar in order to transport it and thus 
find a market. 

The same method of reasoning applies to the admission of material 
for bridges. In many cases, as you know, bridges have been entirely 
destroyed and will have to be replaced. Our experience with the 
majority of planters in Cuba is that their means are so far reduced, by 
this present war and loss that they have been put to, that they can not 
afford to go ahead and spend the large amount of money that is neces- 
sary to build these buildings and bridges unless they are helped by 
having a low rate of duty, or to go to the extreme, have no duty at all 
for a reasonable period of time. 

It is very rarely that these buildings, even of the smallest kind, cost 
less that $20,000 or $25,000 delivered on dock New York, which does 
not include the transportation charges and the erection of the bnUd- 
iugs in Cuba; in fact, very often they run as high as $100,000 for the 
work delivered simply f. o. b. dock here. At the suggested rate of 
duties, which we believe are about 60 per cent of the value of the 
goods here, you will see at once what an enormous burden this will 
become on the planters and how it will force many of them to entirely 
abandon the enterprises which they are now engaged in. 

The same is true, but probably to a less extent, in relation to the 
bridges, which would, of course, mainly have to be constructed by the 
corporations owning the roads. 

If there is any further information that we have that you would be 
glad to have us furnish, we trust you will not hesitate to call on us. 
We sincerely trust that our Government will look at this matter in a 
reasonable light, and will place the duty where it will not become 
oppressive to the parties interested. 
Yours, very truly, 

MiLLIKEN BbOTHEBS. 



Class III.— Substanobs Employed in Phaemaoy and Chemical 

Industries, etc. 

PAINTS. 

New York, August 13^ 1898. 
lion. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir: We have been manufacturing paints since 1865, mid 
during this period have endeavored very many times to obtain and hold 
a market for them in Cuba and Porto Kico, but without success^ and 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 19 

chiefly so in consequence of our higher prices and the preference 
extended by the Cuban and Porto Eican buyers to kno\^'n brands of 
European make. 

The cost of mechanical labor, as also the greater cost of the clerical 
force and rentals of real estate, compels somewhat higher prices to be 
charged in the United States for some kinds of paint than is charged 
for the same kind of paints in foreign countries. 

Therefore paint manufacturers need to be favored in the tariff fixed 
on paints for import into Cuba, because of the additional cost of labor 
over labor cost of making paint in Europe. This should be done in 
order that lower prices for American paints may be olfered to Cuban 
buyers, to overcome their preference tor well-known and established 
brands of European paints. 

We therefore suggest that, as our Ctoverument proposes to make the 
Oaban tariff on merchandise trom the United States the same as on 
merchandise formerly exported irom Spain, the duties placed on paints 
should be levied at the rate which Spain charged on the principal com- 
ponent part of all paints, viz, the rate of duty on linseed oil. 

The duty on linseed oil imported into Cuba from Spain was $2.50 per 
100 kilos, as against the duty of $4.50 per 100 kilos on linseed oil from 
any other country. This favors Spain by 45 per cent lower duty. 

The duty on tin plates of which the container for paints imported into 
Cuba is made is $1.50 per 100 kilos from Spain and $3.10 per 100 kilos 
from any other country. This favors Spain by 51 per cent lower duty. 

It is evident if Spain had framed the tariff on paints intelligently 
that the duty would have favored Spain in the same proportion on 
paints as it did on linseed oil and on tin, and therefore we contend that 
the duties on paints imported into Cuba from the United States should 
be fixed at least at 50 per cent less than the duties on paints imported 
from any other country. 

The duty on paints imported into Cuba from all countries is now 
$5.95 per 100 kilos. 

At a duty of 50 per cent less on paints imported into Cuba from the 
United States, which, as stated, is about the same proportion as Spain 
was favored in the duty on linseed oil, and more largely favored on tin 
plate, the dnty will then be $2.97 per 100 kilos on all paints imported 
into Cuba from the United States. 

We submit this suggestion, and earnestly request your influence to 
secure this very proper arrangement of the duty on paints at as early a 
day as possible. 

Yours, truly, Lonoman & Martinez. 



New York, August 19, 1898. 
Hon. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir : When writing onr note to you of August 15, claiming the 
need of the paint manufacturers of the United States to be favored in 
the Cuban-American tarifl", for the reasons therein stated, we were not 
aware that the meaning of the differential tariff imposed by Spain upon 
the merchandise imported into Cuba from all other countries, and the 
meaning of the fiscal tariff imposed upon the merchandise sent from 
Spain into Cuba was that the sum of the differential duty was added to 
that of the fiscal duty, and the total became the duty fixed upon mer- 
chandise imported into Cuba from all other countries. 

The Spanish duty on linseed oil from the United States was $11 per 
100 kilos, whereas from Spain it was only $3 per 100 kilos. 

uigiiizea oy v^jOOvlC 



20 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

The duty on paints in Cnba, in paste or in oil (artificial colors of 
metaUio bases), from the (Tnited States was $11.90 per 100 kilos, bat 
when the paints of the same kind were imported into Cuba from Spain 
the duty was only $5.95 per 100 kilos. 

Spain followed this system of favoring Spain in every article exi>orted 
from Spain and thereby benefited the merchants and manufacturers of 
Spain. 

We are all fighting for markets, and it is only justice to the Ameri- 
can to so frame a Cuban-American tariff:' that the American manufac- 
turer may be favored to the extent of additional cost of American labor 
over labor cost in Europe, to say the very least, and we sincerely hope 
you think so and will use your influence to this end. 
Yours, truly, 

Longman & Mabtinez. 



DRUGS, CHEMICALS, AND PATENT MEDICINES. 

New York City, September 17^ 1898. 
Hon. Egbert P. Pgrtbr, Special Gommisftioner, etc. 

Dear Sir: We have your communication of September 14, accom- 
panied by "Customs Tariff and Regulations for Ports in Cuba in Pos- 
session of the United States,'' and thank you for the opportunity of 
making suggestions with regard to the matter. An experience of a 
great many years in exporting goods to the Spanish West Indies 
prompts us to name these several points of Interest. To be brief, we 
would say regarding Cuban tariff, Class III: 

Paragraph 81. The word ** extract'' should be changed for the ones 
"extractive juices," to avoid wrong interpretations by custom-house 
employees on fluid and solid extracts of these drugs. 

Paragraph 84. This paragraph as it is will serve to help smugglers 
and favors abuses. It should be omitted, specifying instead the prod- 
ucts to which it refers. 

Paragraph 101. Capsules should be specified whether filled or empty. 
Pills of sulphate and bisulphate quinine should pay by net weight 
and under the 10 cents rate, as they are of the utmost necessity for 
poor people. 

Paragraph 102. It would be better if in this paragraph are specified 
the pharmaceutical goods, thus: Fluid and solid extracts, elixirs, 
siru])s, medicinal cordials, lozenges, tablets, pepsin, diastase, oleates, 
artificial salts for mineral waters, etc. 

Paragraph 104. Cod-liver oil, put up in bottles for retailing, should 
be classified as a pharmaceutical product. 

All patent medicines should have a higher rate of duty than pharma- 
ceutical products. 

We remain, very truly, yours, 

Parke, Davis & Co., 

E. W. Fitch, Manager Branch. 



An error in the repertory sends bicarbonate of soda to No. 100, pay- 
ing 10.05 duty per kilo. It ought to be corrected and sent to No. 96, 
where it belongs, and where it was classed in the tariff, and made to 
pay $0.10 per 100 kilos. 

Respectfully, yours, Samuel GrBERaA, 

Alderman of the City o/Mavana, 



.oogle 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 21 

New York, September 19, 1898, 
Hob. Robert P. Porter, Special Commissioner, etc. 

Dear Sir: We reply with much pleasure to your letter of the 14th 
instant. A general examination of the tariflf for Cuba, of which you 
sent us copy, impresses us favorably and we have no adverse criticism 
to make regarding the regulations or the duties on drugs, chemicals, 
pharmaceutical preparations, and perfumery, which are the products 
iu which we are more directly concerned. 

We should suggest, however, an advance iu the duty on alcohol to 
equalize it with the internal revenue duty in the United States, thus 
preventiug jmssible reimportations and irregularities and to protect 
preparations made with alcohol on which the duties are disproportion- 
ately higher. 

Should we, in practice, find defects we shall promptly report them, 
and meanwhile wishing you much success iu your mission, we are 
Yours, truly, 

liANMAN V. Kemp. 



POTASH SALT. 

New York, October 20, 1898. 
Hon. Robert P. Porter, Special Commissioner, etc. 

Dear Sir: From one of our morning papers we perceive that you 
Lave spent some time in Cuba for the purpose of ascertaining on what 
imports to the island a reduction in the rates of duty should be made, 
and what imports should be permitted free of duty. 

We note that you recommend for free entry everything that may be 
used in the agriculture of the island. We therefore desire to call your 
attention to the extensive use in this country and Cuba of potash salts 
for the special improvement of tobacco and sugar and other cereals. 

We would request you to kindly give this your consideration, and 
please do not omit to place all potash salts used for agricultural pur- 
poses on the free list. 

If you will kindly investigate this point you will find that, with the 
exception of one kind of potash salts, the importation of potash salts 
of every description has been free into the United States for over thirty 
years, and that particular potash salt was put on the free list at the 
time of the introduction of the McKinley bill. 

Hoping to be favored with an acknowledgment of the receipt of this 
letter, and requesting you to give it your kind consideration, we remain. 
Yours, respectfully, 

Heller, Hirsh & Go. 



fertilizers. 

Boston, Mass., October 28, 1898. 
Hon. Robert P. Porter, Special Commissioner, etc. 

Dear Sir : I beg to refer to my conversation with you in regard to 
fertilizers, article 109, page 34, of the Proposed Cuban Customs Tariff 
liegulations. 

At the rate specified, artificial or chemical fertilizers are to pay 5 cents 
pw 100 kilos, gross weight, say about 50 ceuts per ton. I strongly urge 



uigitized by VjOOQIC 



22 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

that the fertilizers be made free. They have not in the past been used 
in Caba, and therefore can not enter into the past revenue of the island. 

Upon the older lands in Cuba their use is very desirable, bat the 
demand for them in the future would naturally be of slow growth. 

I have used imported fertilizers from England with good results in 
an experimental way, and would use them freely if we could get tbem 
at a sufficiently low cost. They can be furnished also from the United 
States as soon as the nmnufacturers understand the requirements for 
cane lands. 

Yours, respectfully, E. F. Atkins. 

Fertilizers are free under the United States Tarifif Regulations, sec 
paragraph 499. 



MATERIALS FOB MANUFACTUBB OP SOAP. 

New York, N. Y., October 2% 1898. 
Hon. Robert P. Porter, Special Gommissionery etc. 

Dear Sir : I had offered to place myself at your disposal during the 
little time I was to stay in the city, with the hope of being of some 
service to you in respect to Cuban matters; but, while I called three 
times, I never was fortunate enough to meet yon. 

According to a letter I have just received from Havana, the autonomist 
cabinet has at last agreed to the petitions of the soap manufacturers 
and reduced the duties on certain materials used for the manufacture 
of soap. In the inclosed copy of the Official Gaceta you will And the 
decree of the Government and the enumeration of the articles whose 
duty has been reduced, the amount of this new duty, and other data 
pertaining thereto. 

I beg to suggest that said Gaceta and this letter be added to my 
testimony as a complement to it; and that reference be made to it and 
due consideration taken of it when the new American tariff for Cuba 
be made by your Government. 

Perhaps it would be well, and a good memento, to make the correc- 
tions with ink in your copy of the actual American tariff, or to paste a 
slip of paper with the corrections in front of the sections or numbers 
that have been modified. 

Although I always was entirely confident that the claims of the 
Cuban soap makers would meet with a just approval in Washington, 
I feel that the work of the persons charged with the arduous duty of 
correcting the tariff will now be made easier in this respect^ since the 
autonomist government in Havana has itself paved the way, conceding 
our demands at this late hour. 

The beneficent effects of this wise policy, if pursued by the United 
States, will soon be visible in the large sales of raw materials that will 
be made for Cuba, as was the case during the reciprocity treaty, or 
McKinley bUl. 

I need not dwell on the moral effects that such a policy will produce 
in Cuba; more deep and lasting than material causes, as this aspect of 
the question is too important to escape your keenness. 

I tender again the offer of my cordial cooperation in any effort 
attempted to bring America and Cuba under friendly and closer rela- 
tions. 

Eesi)ectfully, yours, Samubl GiBERaA. 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 23 

[Inolosure.] 

Department of the Secretary of the Treasury, 

Havanay October 19, 189S. 
In Tiew of the file begun by the petition of Mr. Ramon Consellas and others, 
mnnnfactiirers of soap and candleS; ot this city, soliciting a reduction of the duties 
on raw materials for the manufacture of the said articles, his excellency the Governor- 
General, in council of secretaries and in an agreement arrived at on the 4th instant, 
bas ordered the tariff to be altered as follows : 

103 (c). Cotton-seed oil and its residue. 

97 {d). Bicarbonate of potash or soda (soda or potash acid carbonates). 

104 (c). Oleine. 

97 (d). Sodium carbonate (neut.). 
97 (d). Sodium acid carbonate. 
97 (rf). Sodium hypophosphites. 
97 (d). Sodium salts not specified. 
Creating paragraph 103 (c), to be worded as follows: 

103 (o). Cotton-seed oil and its residue or foots; unit of assessment, 100 kilos; 
differential duty, $1; fiscal duty, 50 cents; yalnation, $10. 

The above being published in the Qaceta de la Havana by order of his excelleucy 
for general information. 

Rafael Montoro, 
Secretary of the Department. 



Statement of the soap makers of Havana^ made through Mr. Samuel 

Oiherga. 

Spain, in her absorbing desire of protecting her home industries 
without regard to her colonies, concocted the tariff for the collection of 
customs in such an artful manner that it was very difficult for the peo- 
ple of Cuba to establish any industries on the island. Thus the duty on 
manufactured soap imported from Spain is 50 cents per 100 kilos, while 
the raw material for soap factories pay ten and twenty times as nmch; 
for example, the duty on tallow is $1.75 per 100 kilos, that of oleine or 
tallow oil is $5.15, cotton-seed oil $11, and soda ash $15. The President 
of the United States, desirous of removing the barrier that the Span- 
ish tariffs had raised against Cuba's commerce with other nations, 
ordered that goods from all nations should pay, on being imported in 
the island, the same duties as Spanish goods. By so doing the Presi- 
dent has left standing the high duties on the raw material and the low 
duties on the manufactured article, which is simply leaving matters as 
Spain had them, and the result is that now there will be no benefit 
either for Cuba or the United States by the new tariffs, but Spain will 
continue to monopolize the soap market of Cuba, on account of her 
cheap labor and of the great advantage she has by being already in 
the market. Besides, European soap will be sent to Cuba and compete 
against American, Cuban, and Spanish soaps; competition will become 
very keen; there will be money for nobody and one of the few Cuban 
industries will disappear, but if the tariff" is changed by simply follow- 
ing the most rudimental principles of political economy the Cuban 
industry will be saved and the United States will acquire a splendid 
market for all her raw materials for the manufacture of soap; that is 
to say, by establishing a moderate duty on the manufactured soap and 
a lower duty on the raw materials. Manufactured soap can be imported 
in Cuba from all parts of the world, whilst the raw materials can only 
be imported from the United States, because neither England, Ger- 
many, France, nor Spain produce either cotton-seed oil, tallow, or rosin. 
These articles are the most important in the manufacture of soap, and 
thousands upon thousands of tons will be shipped from American ports 



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24 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

to Cuba, as stock for her soap iudastries. We can not get rosin from 
England, nor cotton-seed oil from Germany, nor can we get tallow 
from Spain; tliese countries are not exporters of raw materials, whilst 
the United States are, and besides, Cuba being so near, it is natural 
and easier for her to get all her stock from the United States. The case 
is clear, Europe, especially Spain, is able to compete on account of 
cheap labor and cheap freight rates against America in the manufacture 
of soap, but they can not compete in the production of rosin, cotton- 
seed oil, and tallow, which are natural American products. 

The Cuban manufacturers of soap suggest as a remedy that a duty 
on manufactured soap similar to that imposed in the United States be 
levied in Guba, and that all raw materials for the industry be allowed 
to enter, if not free, subject only to a small duty; for example: 

Pine rosin, per 100 kilos $0.10 

Tallow and grease, per 100 kilos 20 

Bed oil or oleine, per 100 kilos 30 

Cotton-seed oil, per 100 kilos 10 

Cotton-seed oil fooiM, per 100 kilos 05 

Caustic soda, per 100 kilos 10 

These goods pay under the actual tariff as follows: 

Group 1. 

80. Bosin, per 100 kilos $1.00 

104c. TaUow, per 100 kilos 50 

1044. Red oil or oleine, per 100 kilos 1.40 

1036. Cotton-seed oil, per 100 kilos 3.00 

1036. Cotton-seed oil foots, per 100 kilos 3.00 

96. Canstic soda, per 100 kilos 25 

100. Sal soda or soda ash, per kilo Qb 

Thus it will be seen that although the differential column of duties 
has been abolished by the proclamation of the President of the United 
States yet the duties still remaining are so great as to be entirely pro- 
hibitive for local industry, for it makes no dilference if the duty on red 
oil or cotton-seed oil be $1, $2, $5, or $10. When the duty goes beyond 
a certain limit the amount becomes entirely indifferent. Compare 
these duties charged on the raw material with the duty charged upon 
the manufactured article, which is 50 cents per 100 kilos, and it is plain 
that no industry can exist under such disparaging circumstances. 

We beg to inclose a printed statement showing how Spain proceeded 
in the formation of the Cuban tariff. While she would diminish the 
real value of the manufactured article, so that the duty imposed would 
be lower, she would augment the value of the raw material so as to 
increase the duty. For example, officially, rosin in Cuba for the custom- 
house in the hands of Spain is worth $4 per 100 kilos, while it is really 
worth $2; tallow oil is valued officially at $15, when it is hardly worth 
$10; cotton-seed oil is valued at $27, its actual value being only $8; 
cotton-seed oil foots valued officially at $27 are hardly worth $2 i)er 100 
kilos; soda ash is valued in the tariff at $50 when it hardly costs $3. 
Another favorite method of Spain would also be to reverse common sense 
and the universal practice of imposing low duties on raw materials and 
high duties on manufactured goods; for example, while soap paying 50 
cents per 100 kilos represents a duty of only 40 cents on its value, the 
duty of $15 on the soda ash amounts to 500 per cent; the duty on cotton- 
seed oil foots amounts to about 450 per cent; the duty on cotton-seed 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 25 

oil amonnts to 140 i)er cent; the duty on tallow oil amounts to over 
50 per cent, and so on. 

Another peculiar way that Spain bad of still increasing the enormous 
duties on the raw material, was to impose them upon the gross weight 
and make the manufactured article pay only on the net weight. We 
claim that the raw material ought t.o pay duty on its actual net weight, 
just the same as the manufactured article, aud that no account ought 
to be taken of the Spanish system of taring boxes, barrels, or cases, but 
simply levy the duty on the actual net weight obtained on the whart 

[From tlie Hayana Seporter, Havana, Cuba, October 10, 1898.] 
THE SOAP-MAKING INDUSTRY. 

Aside from tbe preparation of sogar and tobacco for the market, for which indns- 
tries there is an assurance of protection by the new cnstoms tarifi* to be put into 
force by the United States, there are in Cuba various other smaller, but compara- 
tively important, industries, and those engaged in them are now concerned as to 
whether thev will be duly protected against manufacturers in Europe, and even in 
the United States. It is to be hoped that they will be taken care of, at least until 
the ooontry's main resources are properly developed, it being so necessary not to 
disturb existing labor of any kind, but rather to foster new means of working for 
the CTeat number of people at present unemployed and unable to obtain a livelihood 
for uieir suffering families. 

One of the industries to which reference is made is that of soap making. There 
are several manufacturers of both laundry and toilet soaps, who are making various 
lines of jjerfnmery. This industry was never properly protected by the home Gov- 
ernment in Spain, owing to intrigues and influence of manufacturers there, against 
whom those in Cuba haa to contend and struggle, succeeding, however, in establish- 
ing their products in tbe island by hard work and perseverance. The greater part 
of their raw material, such as cotton-seed oil, grease, tallow, resin, etc., is brought 
from the United States, which country profits thereby. The question is now, Will 
the United States protect this manufacture against the encroachment of Spanish and 
other European makers, thereby largely increasing the sale of the mentioned raw 
materials f To do so it is necessary to reduce or do away altogether with the duties 
now imposed on such materials and to increase proportionately the duty on soap. 
The Spanish colonial government, at this late date, has Just granted a sweeping 
reduction on such materials, and it is to be hoped that the American authorities will 
indorse it in their tariff, ana still further give these manufacturers protection by 
increasing the duty on soap, which is still too low for the purpose. 

We have cited, as an example, one of the Cuban minor industries, and we propose 
to point out others in succeeding numbers of our publication^ aiming to aid thereby 
the commeroial relations between the two countries. 



PEBFXTMEBY. 

Testimony of the perfumery manufacturers of Havana^ made through 
Mr. Samuel Qiherga. 

It is possible that the arguments stated in connection with the man- 
nfacture of soap may be applied to some other Cuban industries j they 
certainly apply to the manufacture of perfumery. ThuS; under 

Group 1. 

No. 108. Perfumery aud essences pay 20 per cent per kilo; that is to 
say, the manufactured article pays just the same as the raw material. 
This is simply absurd. Uiuler the United States tariff we think that 
toilet soap pays 1 cent per pound, and it wonld not be too much to ask 



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26 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

that in Cuba it sbould be made to pay the same, or that No. 108 of the 
tariff' should be made to read thus: 

No. 108a. EsBential oils, flowers, powders, and chemicals, for the maufactnre of 

perfumery per kilo.. $0.20 

No. 1086. Toilet soap and all kinds of perfumery, solid or liquid do 40 

It would also be just to impose duty on the alcoholic contents of 
liquid perfumery, such as hair tonics; and, lastly, that the raw mate- 
rials for this industry should pay duty only on their actoal net weight 
and not on gross weight. 

Samuel Giberga, 
Alderman ofDis City of Havana, 



CANDLE WICKS. 
FOURTH CLASS, FIRST GROUP. 

No. 130. Wicks for lamps and candles, perkilog $0.10 

ought to be made to read and to pay: 

No. 130. Wicks for lamps and candles and matches, per kilog $0.05 

Respectfully, yours, 

Samuel Gibeboa* 



Class IY.— Cotton and Manupactuees thebeop. 

COTTON cloth. 

Chablotte, N. C, October 13j 189S. 
Hon. Eobebt P. Pobteb, Specml Commissioner, etc. 

Deab Sib: I am in receipt of the pamphlet giving the customs, 
tariffs, and regulations for ports in Cuba in possession of the United 
States. 

I have carefully examined these tariffs in relation to cotton goods. 
I inclose a piece of cloth, made in a mill here in North Carolina, the 
taritf on which, according to your regulations, would be about 3 cents 
a pound. The selling price for these goods in this country is about 
15 cents per pound. Therefore the duty on the goods entering Cuba 
would be about 20 per cent. 

I sbould think that, in view of the fact that we want this trade and 
that the Cubans are in great need of just this sort of plain cloth, in the 
interest of the people of Cuba and of the manufacturers in this country 
the duty ought to be made as little as possible. It would seem to me 
as if these duties might all be reduced 25 per cent to 50 per cent. 

Our friends in New England need that kind of protection which 
opens up a market for them and we need it also here in the South. A 
reduction of tariffs on goods going into Cuba gives all of us just the 
kind of protection that we need the most. 

If there is any information on this subject that I can give you I will 
be glad to do so. 

Yours, truly, D. A. Tompkins. 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 27 

Class V. — Hemp, Flax, Pita, Jute, and Other Vegetable 
Fibers and their Manufactures. 

ROPE AND CORDAaE. 

New York, September 23, 1898. 
Hon, Robert P. Porter, Special Commissionery etc. 

Sir: We are informed by ofdcials in Washiugtou that it would be 
advisable for us to communicate with you relative to our business 
carried on in Havana, Cuba. 

In 1890 A. Heydrich & Co. established in Havana a business for the 
manufacture of cordage. In 1891 a corporation, consisting of the mem- 
bers of the firm of A. Heydrich & Co. and others, associated and estab- 
lished a corporation under the name of Heydrich, Kafifloer & Co., and 
continued and increased the business of the manufacture of cordage at 
Havana. This company was organized under the laws of the State of 
New Jersey, and has a paid-in capital of $165,000. In the same year 
the same gentlemen organized a corporation under the laws of the 
State of New Jersey, under the name of the American Storage Com- 
pany, with a paid-in capital of $86,000, and bought the necessary build- 
ings and real estate for the use of the cordage factory. Thus $250,000 of 
paid-in capital has been invested in the business, besides certain surplus 
moneys and profits which have not been drawn out, but used in the 
purchase of additional machinery. 

The introduction of a new industry in Cuba has always been con- 
nected with great difficulty, and especially was this the case with us. 
In order to teach the laborers of Cuba the building of our machines 
and to be generally useful we had to engage many expert Americans, 
which, of course, was a great expense to us, and it was only a little over 
a year before the outbreak of the revolution when we began to have a 
fairly paying business. We employ many American citizens in our 
factory, and have also, even during the revolution and during the war, 
kept them in our employ, although they could have been dispensed 
with. We did not discharge them, however, in the hope of better 
times. We usually had in our employ between 150 and 200 men and 
women, and our industry could rightly be counted among the leading 
manufacturing industries in the island of Cuba. 

The special object of this letter is to call your attention to the fact 
that the tariff which the United States intends to enforce in all the 
ports of Cuba is very harmful to us. The duties on our raw material, 
which we need in the manufacture of cordage, remain the same, whereas 
the duty on cordage has been cut down 50 per cent. It was formerly 
$12 per 100 kilos; it is now $6, and you will readily see that this tariff 
is no protection whatever, as we have to pay duties on raw material 
(heniquen and manila), machines, cordage oil, lubricating oil, coal, 
burlap, tar, belting, repair materials, and in fact almost every article 
we need in the manufacture of cordage. Ninety-nine per cent of heni- 
quen and manila which we use we import The heniquen grown in 
the island of Cuba is so little, that it does not constitute a factor in the 
problem. 

The duty of $6 per 100 kilos would be satisfactory to us if we did 
not have to pay a duty on all the articles mentioned, especially on raw 
material (henequen and manila). If you think that the duty on raw 
material and on all the articles mentioned can not be abolished, we 
would kindly ask you to propose to the authorities at Washington to 



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28 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

increase the duty on rope and cordage (paragraph 135 of Customs Tariff 
and Kegulations for Ports in Cuba in Possession of the United States) 
from $6 per 100 kilos to at lea«t $8 per 100 kilos, as this would be not 
more than a fair protection. 

We can, of course, sell our manufactured goods only in the island of 
Cuba, as it is impossible for us to compete in other countries with the 
United States and England, as those countries have all the raw mate- 
rial and most of the other articles ft'ee of duty; and as their factories 
are considerably larger than ours, of course they are in a position to 
manufacture a little cheaper than we are. 

If the duties on raw material and all other articles used by us in the 
manufacture of cordage remain, and the duty on cordage is reduced to 
$0 per 100 kilos, we shall have to face the question whether we ought 
not to abandon the business and withdraw our capital from the island. 

We earnestly ask for your careful consideration of this matter. 

At the suggestion of the Acting Secretary of State, Mr. Adee, we 
have addressed a similar communication to the honorable the Secre- 
tary of War. 

We hold ourselves in readiness to call upon you in case you desire 
an interview or further information on the subject or on any other point 
in regard to Cuba, and remain. 



Yours, very respectfully, 



Heydrich, Rafploeb & Co. 
Rudolf Ebbsloh, President 



Havana, September 30, 1898. 
Hon. Robert P. Porter, Special Commissionerj etc.: 

I see in the customs tariii' and regulations intended for this country 
that " rope and cordage are taxed with $6 per 100 kilos." This would 
shut off all American rope and cordage from coming to Cuba, and as 
the exportation of said articles, if better treated in the tariff— say, $2 
per 100 kilos — would be considerable, I think it worth while to call joui 
attention to it. 

Under a fair treatment the United States could export yearly to 
Cuba 4,000,000 kilos, with a yield to custom-house of $80,000, at the 
rate of $2 per 100 kilos. 

With the proposed duty the Cuban market would be closed to 
American cordage. 

Yours, truly, Carlos de Zaldo. 



New York, October 5, 1898. 
Hon. Robert P. Porter, Special Oommissioner, etc. 

My Dear Sir : It has come to our notice that in the new tariff pro- 
posed for Cuba and Porto Rico there is proposed to be levied a duty of 
$6 per 100 kilos, which is equivalent to about 3 cents per pound, on rope 
going into those ports, which would practically debar this country firom 
placing tbis commodity there to the greatest benefit of the people. 

It would probably be well to call your attention to the foet that 
during the past few years American rope has been excluded from those 
ports to the great detriment of the United States. As the islands 
will now be under our protection, and the benefits of the country be 
looked after to a great extent by our Government, it seems to us that 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 29 

there should be every incentive given to make the goods cost the con- 
so. mer in those countries the least possible. We therefore suggest 
tlia>t in order that the greatest benefits may accrue to the ports referred 
to, as well as to the general interests of the United States, that the 
dnty certainly be not greater on the manufactured article than $2 per 
lOO kilos, which would be about 1 cent per pound. 

We submit this matter to your very necessary consideration, feeling 
tliat it will have the grave attention it demands at your hands. 

Thanking you in advance for such interest as you may think it 
a<lvisable to give, believe us, 
Yours, very truly, 

The Union Selling Company, 
Chas. E. Borden, Yice-PresidenU 



Kew York, November 10, 1896. 
Hon. Eobert P. Porter, Special Commissioner^ etc. 

Sir : I quote the following in reference to the conversation writer had 
with you yesterday regarding the new tariff in Cuba: 

Pesos. 
Paragraph 134. Twisted yams of two or more ends (inolnding the weight of 
tbe reels) ; also hemp, flax, ramie, abaca, lieDiqueD, pita, jute, and other vege- 
table fibers prepared for spinning, N. W., per kilogram 0. 10 

Paragraph 135. Hope and cordage : 

a. Twine or rope yam and cord of hemp, not exceeding 3 millimeters in 

thickness, G. W., per 100 kilos 6.00 

h. Cordage and rope-makers' wares of hemp, exceeding 3 millimeters in 

thickness, N. W., per 100 kilos 6.00 

o. Cordage and rope-makers' wares of abaca, heniquen, pita, )ute, or other 
tibers,N.W., per 100 kilos 6.00 

FBBB LIST. 

Paragraph 132. Hemp, flax, and ramie, raw, hackled, or tow. 
Paragraph 133. Abaca, heniquen, pita. Jute, and other vegetable fibers, raw, hack- 
led, or tow. 
Paragraph . Jnte yam spun for the manufacture of sugar bags only. 

In reference to the cordage oil, I take the liberty to inclose a letter 
from the Pennsylvania and Delaware Company, the importance of 
which I would kindly ask you to consider. 

If the jute yarn spun should be put on the free list, we will make the 
greatest efforts to establish a very large industry for the manufacture 
of sugar bags. We have decided to undertake this enterprise. 
I remain, dear sir, yours, very respectfully, 

Ernbst Eapploer, Treasurer. 

Mr. Ernest Raffloer stated personally that they would like section 
132, "Hemp, flax, and ramie, raw, hackled, or tow," and section 133, 
"Abaca, heniquen, pita, jute, and other vegetable fibers, raw, hackled, 
or tow,'' put on the iree list. 

Also to have section 134 read: "Twisted yarns of two or more ends 
(including the weight of the reels), also the fibers of abaca, heniquen, 
pita, jute, and other vegetable fibers, prepared for spinning, N. W.,per 
100 kilos, 0.10 cents." 

Also spun jute for the manufacture of sugar bags only free of duty. 



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30 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

[Inclotnre.] 

New York, November 9, 189S. 
Mr. Ernest Raffix>er. 

(Care Heydrich, Raffloer & Co.) 

Dear Sir: Replying to your inquiry as to the difTerence between mineral (petro- 
leum) lubricating oil and cordage oil, will say that there is so little diHerence 
between oil that will answer for lubricating and oil that is adapted for fibers, that 
it will be very difficult to designate it on the tariff in a way that would prevent 
cordage oil being used for lubricating purposes. 

The Canadian government places a high duty on Inbricating prodncts of petro- 
leum; but an oil practically the same, when used in a cordage milly that is applied 
on binder twine, is entered free of duty. 

The Mexican (government also has an extremely high duty for petroleum prodacta; 
but on all oil that is used at the only cordage mill in Mexico, namely. La Industrial^ 
at Merida, there is no duty charged. 

Therefore, unless the Cuban tariff does not provide for a low duty on an oil used 
at yonr Havana mill, it will be impossible to compete with Mexico for all rope sold 
in the West Indian Islands, also in South America. 

We would, therefore, suggest that the Government accept the oil, when consigned 
to a cordage mill in Cuba, free of duty, placing a heavy penalty on the cordage 
company in case they dispose of the oil or use it for any other purpose than the 
application on fiber. We think that this would be a simple matter, and wonld lead 
to less complications than though a tariff were made distinguishing it from petro- 
leum oils for general lubrication. 

We beg leave to quote you on our cordage oil, the same as we are supplying to the 
La Industrial, H cents per pound, f. o. b. New York. 

If there is anything further I can advise yon on regarding this subject, I should 
be pleased to have you call on me. 

Yours, truly, Richard Hopkins. 

Fresident Pennsylvania and Delaware OH Company, 



SUGAR BAGS. 

New York, October 22, 1898. 
ITon. Robert P. Porter, Special Commissioner ^ etc. 

Dear Sir : We are, as you may note from the heading of our letter, 
manufacturers of bags, and deal largely in sugar bags, and write at 
this time to see if any arrangement is likely to be made or can be made 
by which sugar bags manufactured here from imported goods may not 
go into Cuba and Porto Rico upon an equal, if not better, basis than 
the foreign bag now is being taken at those points. At the present 
time the American bag is paying a larger duty than the foreign bag, 
and that excludes to a certain degree the American bag, and as the 
duty on the goods from which these bags are made is already fixed 
by our tariff, we are to a degree excluded, from the fact that haying 
paid a duty here upon the goods which are manufactured abroad, the 
foreign bag going into the ports above mentioned, is, by virtue of the 
tariff now imposed at those points, taken at a much lower rate than 
the American bag, the same having to pay a duty as well as having to 
pay a duty here in this country. A large business might be and is 
being done with these countries, and we would kindly ask you to look 
into this matter and see what arrangements, if any, can be made. 
Very truly, yours, 

E. S. Halsted & Co. 



Boston, Mass., October 25^ 1898. 
Hon. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir: Referring to our conversation as to proposed duty on 
sugar bags in Cuba, I inclose copy of correspondence between myself 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 31 

and Messrs. H. & L. Chase, who are large manufacturers of bags and 
thoroughly posted in matter of cost. 

I strongly recommend that any duty to be assessed upon sugar bags 
in Cuba should be fixed at as low a rate as consistent with conditions 
there, not over 25 per cent of their value, and that all countries be 
placed upon the same footing. 

In my opinion sugar bags can not be manufactured either in the 
United States or in Cuba in competition with England or Germany, 
except under an unreasonably high discriminating or protective duty. 
Very respectfully, yours, 

E. F. Atkins. 



[iDcIosure.] 

Boston, Mass., October S6, 1898, 
Mr. H. G. Porter (H. & L. Chasf/s), 

Boston^ Mass, 

Dear Sir: We have for some years piinhased sugar bags for Cuba in Eugland 
through your bouse. 

As your bouse is one of tbe largest engaged in tbe manufacture of bags in this 
country and as the conditions in Cuba are now changing, I would like to ask you if 
you can expect in the future to supply the Cuban market with bags of American 
manufacture in competition with England f 

I also wish to ask what protection is afforded you under the present tariff, and 
whether you expect to spin jute yarns and weave the cloth^ or only import the cloth 
from Europe for making upT 

An answer will greatly oblige, yours, truly, 

E. Atkins & Co. 



[InoIoBure.] 

233 State Street, Boston, Ocioher f 5, 1898, 
Messrs. E. Atkins & Co., 

Boston, Mass, 

Dear Sirs: I am in receipt of your inquiry of this date, regarding sugar bags for 
Cuba. 

I can at present see no reason why this country should in the future compete any 
more successfully for the bag trade in Cuba than it has in the past. 

With a tariff of, say, about 30 per cent, this country imports practically its entire 
consumption of burlap (jute) cloth. With this large protection the few jute spin- 
ners in this country appear to confine their operations to the manufacture of twines, 
oiloloth foundations, and some specialties. 

If high protective tariffs have not stimulated the American manufacturer to suc- 
oessfully compete for the home consumption of burlaps, I can not believe he can 
spin the yams and weave the cloth here for foreign markets in competition with the 
makers in Dundee and India. 

Tours, very truly, H. G. Porter. 



New York, November 5, 1898. 
Hon. EOBEET P. PORTEB, Special Commissioner^ etc. 

Sib : Referring to your investigation about future tariff between Cuba 
and the United States, I would respectfully suggest that you recom- 
mend such a tariff that the manufacturers of sugar bags and other 
kinds of bags in the United States could be protected in their industry. 
Before the last tariff bill we manufacturers on the East coast were sell- 
ing yearly an increasing quantity of sugar bags to Cuba and other 
Spanish x>oint8) but the latest tariff act put a specific duty on the sugar 
and no duty on the package, so that the bag came in free of duty, 
whereas the previous act included a tariff' on tbe package as well as on 
the sugar; so that foreign bags, when imported into the United States 



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52 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

fall of sagar, paid a daty on their value in Gaba, whereas Am^oaa- 
tnade bags were readmitted in the United States apoo repayment of 
the amount of drawback allowed when exported. Cuba consumes six 
ot seven millions of sugar bags yearly, which are now made almost 
exclusively in Great Britain and India, whereas if the tariff feature of 
the Wilson bill were reenacted these bags would be made in the United 
States and employment given to thousands of working people in the 
United States. 

I would respectfully suggest that you recommend some such clause, 
as the benefit to the United States would be material and Cuba would 
have many advantages in getting her sugar bags here. 
Yours, very respectfully, 

Percy Kent. 



Statement of Oabriel Oarranza^ with ITeydrich, Raffloer dk Go,^ rape 

manufacturers. 

Havana, September 21 j 1898. 

ROPE. 

The trouble with us is that we have to compete with American man- 
ufactures, and the wages here are very high, we having to pay from 
$1.40 to $1.50 per man. We will have to reduce our wages. The San- 
tiago tariff will cause us trouble, as it is too low. The American roi>e 
does not pay any duty on the raw material. We have to pay a duty on 
the raw material, and they also do in Spain. If we do not get free raw 
material, the American rope will cut us out We have to comi>ete with 
the trusts, American Manufacturing Company, etc. We have now about 
100 hands, but formerly we had 250 men, who used to work day and 
night. We used then to get our raw material in free, and cordage oil 
was also free. I would suggest that we have free hemp and free cord- 
age oil. This oil is made from the refuse of petroleum. 

sugab bags. 

We want to make sugar bags, our privilege from Spain covering the 
manufacture of this article. The bags now come from Barcelona, pay- 
ing $2 per 100 kilos duty, and compete here with Calcutta bags paying 
$7.58 duty. We could not make these bags here, because the Spanish 
bags had a very low duty, although English bags paid a very high duty. 
A sugar bag weighs about 2^ pounds, so that 100 bags would only pay a 
little over $2. Now we would start a factory here right away if we 
were authorized to import spun jute. The process of spinning jute is 
very difficult, and we want the privilege of importing spun jute. If 
we can get this in free, or at least with the same duty as hemp, we 
could compete with everyone, and will guarantee to start the factory 
within two months. On the basis of the highest crop, 1,000,000 tons, 
there would be 7,000,000 bags used. We have everything ready to 
start the factory for making these bags; we have three buildings, and 
have our own dock. Jute now pays a duty of $2.20 per 100 kilos. 

September 24, 1898. 
Page 27, of the United States Cuban tariflF; there is a point to which 
I wish to call your attention, namely, in regard to the cost of oil. The 
price in New York in December was 3^^ cents per kilo, the duty on 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 33 

the Bame (when it is corrected) will be $3.08, which you will see is 
practically 100 per cent of the cost of oil. I have a statement here 
showing: the cost of a quantity of oil in New York, at $204.48, which 
under the new duty would pay $236.97, though I actually paid $2.*)7.89. 
There is another complaint in connection with this, and that is that 
they charge on the gross weight of the cask, which is of iron, weighing 
about 220 pounds out of 7oO pounds gross weight. That leaves about 
530 pounds of oil, and the Sanish compel us to pay a duty on this cask 
every time it comes in, which prevents our using it again. 



Glass VIII.— Paper and its Applications. 

New York, October 17 j 1898. 
Hon. EoBERT P. Porter, Special Commissioner^ etc. 

Dear Sir: I write on behalf of this association to lay certain facts 
before you which I would like to have you know before making your 
report on your investigations in Cuba, as I feel that the proposed tariff 
for Cuba and Porto Eico should, in the interests of the paper industry, 
be arranged with due regard to these facts. 

The magnitude of the paper industry of this country is perhaps not 
generally appreciated. I have not at hand exact figures, but it is safe 
to say that the annual output of the paper mills in the United States is 
not less than $160,000,000, and is very likely as much as $200,000,000, 
making us the foremost paper manufacturing country of the world. In 
fact, the last available statistics, as given by Mullhall, the English stat- 
istician, credit the United States with making between 20 and 25 per 
cent of all the paper of the world. We have depended almost entirely 
upon our home consumption, but such are the natural resources for 
making paper in this country that our capacity for production has out- 
grown our consumption, and the growth of the industrv, which means 
the development of the natural resources of the country, is therefore 
now held in check and the existing productive capacity is almost con- 
stantly repressed, which, of course, enhances the cost of manufacture. 

The remedy for this state of affairs is the creation of an export busi- 
ness. Our exports, although they have shown a rapid rate of increase 
for the last two or three years, now amount to but about $5,000,000 per 
annum, which is but a small percentage of the total output. This is so 
in spite of the fact that other nations less favored naturally continue 
to export many times the amount that we export. For example, Ger- 
many is exporting paper at the rate of $20,000,000 or $25,000,000, and 
exports from England and France are not much smaller, although I 
have not the exact figures at hand. Thus there evidently is a large 
market for paper outside of our own country, and those familiar with 
the paper industry are well aware that our failure heretofore to enjoy 
these markets is not due to the lack of natural resources, or to not taking 
advantage of them, for not only have we as good water powers and fibers 
available as any other country, but our methods and our machinery are 
in general in advance of all. This anomalous condition appears to be 
due to the fact that other factors, which play no less important a part 
In foreign commerce than the cost price, are all in favor of foreign 
producers. The case of Cuba furnishes an example. The importa- 
tions into the country of paper from the United States were in the 
year 1896-97 but $48,733, whereas the importations of paper from 
Spain into Cuba for 1896 amounted to a million dollars in round 
21146 3 ^ I 

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34 COMMEECIAL AND INDUSTRIAL CONDITION OP CUBA. 

nnnibers. This trade has clearly been driven to Spain, which is ik>I 
prominent as a iiaperprodncinp^ coantry, by duties discriminating 
in her favor; bat it does not follow that a suppression of this dis- 
crimination would throw the traile to the United States, for we find 
that the importations of pa])er into the Spanish West Indies during 
180G from both Germany and England were equial to those firom the 
United States. Both of these countries, therefore, with the entering 
wedjje that their existing trade gives them, and with their s^gres- 
sive commercial policies and cheap labor, may be expected to dispute 
with us to the last the possession of the commerce in paper of Cuba 
and Porto Kicx). To insure the United States securing the trade, 
which may be considered a just compensation in a measure for the sac- 
rifices it has recently made on behalf of Cuba, it will be necessary to 
so frame the schedule of duties on paper that not only the discrimina- 
tion in favor of Spain shall disappear, but that we shall have some 
protection from the aggressive competition of Germany and England. 
This is the more important in view of the fact that from the best data 
I have at the present time we appear to be mutually at a disadvantage in 
tiie matter of transportation rates, compared with England, Germany, 
and France. The present rates indicate an actual excess in the rate 
on printing pai)er — selected merely for the sake of an illustration— of 
20 per cent from New York to Havana over the rate from Liverpool to 
Havana, and the rate from Havre is even slightly less than the rate 
from Liverpool. Presumably, the rates from Germany will not differ 
much from those cited. To put us on a par with foreign producers 
this difference in the freight rate would alone require a discrimination 
in our favor of one-eighth cent on such paper, and a discrimination on 
other grades corresponding to such differences in freight rates as may 
appear upon investigation. The papier imported into Cuba firom Spain 
in 1800 was made uj) as follows: 

Paper in rolls $82,457 

Writing paper 88^219 

Smoking paper 377,046 

Packing paper 284,047 

Books, music, etc ., 49,655 

Other paper 107,917 

979,341 

These papers are all being manufactured in the United States. The 
"smoking" or cigarette paper industry, however, is in its infancy in 
this country, but there appears to be no reason why, if protected for a 
reasonable period, until the exigencies of the new industry are overcome, 
it should not grow into an important branch of paper making. The 
importations of this class of paper into the United States also are very 
lai'ge. Thus, if we can foster the establishment of this particular Hue 
of manufacture by securing the Cuban trade, it may be the means of 
replacing the large amount of this class of paper which we import wiUi 
the homemade article. 

In addition to the million dollars' worth of paper imported into Ouba 
from Spain, there is possibly an additional quarter of a million dollars' 
worth of paper imported into the Spanish West Indies as a whole from 
other sources. If paper can be laid down in Cuba from the United 
States at anything like prices prevailing here, the consumption should 
increase enormously, as the Spanish duties have not been very high; 
but it is well known that they do not represent by any means all the 
obstacles or expenses coming between the foreign exporter and tiie 
Cuban consumer. It is therefore in the intei*est of both Cuba and of 
the United States that the duty against the United States should be 

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COMMERCIAL AND INDUSTRUL CONDITION OF CUBA. 35 

very ligbt. Bat, as aforesaid, it will not do to make the duty equally 
low for all countries, lest tbe trade would at best be divided and possi- 
bly the United States secure but a small portion of it. 

An equal tarift' is not demanded in tbe interest of Cuba, for the rea- 
son that if a low tariff is given to the United States the competition 
which exists in this country, and which would be readily extended to 
81) near a point as Cuba, would secure for the Cuban consumer the very 
low^est price that mills with the best advantages in the United States 
i-au give. Transportation charges and the duty would alone prevent 
the Cuban prices from practically reaching the United States level. 

if it is the desire of the Government that the paper trade of Cuba 
should be turned over to the United States, the duties as against other 
countries should certainly not be less than those which form a part of 
our own t^ritt* law. 

Very truly, yours, 

Chester W. Lyman, 
Secretary American Paper and Pulp Association. 



Comparative staiement of the duties on paper under the Dingley bill and the duties in the 
military tariff now in force for ports in Cuba under the control of the United States, 

American : 

Printing paper suitable for books and 
newspapers — 

Value not over 2 cents 3 cents per pound. • 

Value not over 2 to 2^ cents 4 C4n\ts per pound. 

Value not over 2i to 3 cents 5 ceiitH per pound. 

Value not over 3 to 4 cents 6 cents per pound. 

Value not over 4 to 5 cents 8 cents per pound. 

Value not over 5 cents and over . . 15 per cent. 
Spanish : 

Roll paper (according to weight) 4 to 8 cents. 

Sheet pax>er, white or colored li cen ts. 

American : 

Copying paper, tissue, etc., not over 6 

pounds to the ream, 20 by 30 . . . 6 ronfs per ponncl and 15 per cent ad val, 
Over6pound8totheream,20by30. 5 cents per pound and 15 per cent ad vaL 

Lithographic prints, etc 20 per cent. 

Writing paper — 

From 10 to 15 pounds per roam.. . 2 cents per pound and 10 per cent. 

Over 15 pounds per ream 8^ cents per pound and 15 per cent. 

Envelopes 20 per cent. 

Paper hangings and all other kinds not 

classifie<l 25 per cent. 

Spanish : 

Miscellaneous 8 cents per pound. 

(Envelopesof all kinds, 50 per cent 
surtax. ) 

Hanging paper 1\ rents per pound. 

Blotting paper 3 cents per pound. 

American : 

Books, maps, etc 25 per cent. 

Spanish : 

Books 1 cent per pound. 



Boston, Mass., Noveniber 7, 1898. 
Hon. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir: Your letter of the 14th of September in regard to your 
mvestigations as to the conditions of industry, trade, foreign commerce, 
currency, and bank system in Cuba and Porto liico has just come to 
our notice. noalp 

uigiiizea Dy xjvJvJVlV^ 



36 COMMERCIAL AND INDU8TRUL CONDITION OF CUBA. 

We have quite a little trade with Cuba in cigar labels and general 
litlio^. ^l>hy, and beg to suggest that if there is any way that the Cuban 
tariff on lithography and printing matter can be reduced it would be 
desirable to do so. We would furtlier respectfully suggest that if pos- 
sible a special reciprocal duty should be arranged for the United States 
on lithography and printing. Unless the German lithographer is handi- 
capped by a discriminating duty it is absolutely impossible for Amer- 
ican lithography to compete, as wages in Germany are almost one tliird 
less than what they are here. Under existing conditions in this country, 
with the tariff of 35 per cent, German lithographers are able to come in 
and beat us in the matter of prices where time is not an object. 

We have found in our dealings with Cuba and Porto Rico that the 
people there would prefer to deal with the United States at even prices; 
therefore, if anything can be done in the adjustment of the Cuban tariff 
which will facilitate trade in lithography between the two countries, it 
will be a great advantage to the lithographers of the United States. 
The minority of the work in the past has gone either to German^ Freudi, 
or Spanish lithographers. 

The above is respectfully submitted for consideration. 
Very respectfully, 

Forbes Lithograph Manufacturing Company. 
W. S. Forbes. 



Boston, Mass., November 17^ 1898. 
Hon. Egbert P. Porter, Special Commissioner^ etc. 

Dear Sir: I am not at all informed as to the policy of the Admin- 
istration in reference to the new tariff for Cuba, but knowing that you 
are working at the problem, I write in behalf of the Forbes Lithograph 
Company of this city (and I assume that other lithographers in the 
country have a common interest with this company), to request that if 
possible on lithographed matter there be discrimination in favor of the 
United States. 

It is believed by these gentlemen that Germany, through Spanish 
houses, has furnished most of the Cuban supplies in this line, and 
doubtless at a good profit for both, because even our United States 
tariff fails to protect our lithographers in the production of cigar labds 
and kindred matter. The Germans, by reason of their very low-priced 
labor and cheap paper, and skill — which was until recently superior to 
that elsewhere shown— and by reason of having thus obtained the 
markets of the world, so that they can expend more money on the 
designs than producers can who have a more limited market, have 
become, as you will see, the hardest kind of competitors. But as the 
Cubans have undoubtedly been obliged to pay even more than they will 
have to pay for good American work in case there is a discriminating 
duty in favor of our country, it would seem that both they and we aie 
entitled to any benefit in this line which can be wisely established. 

I do not know whether it is the policy of the President to establish 
discriminating duties in the temporary tariff preceding the one which 
]»resumably the Cubans themselves will establish, but if there is an 
opportunity to obtain this discrimination, and if you would like more 
specific information, Mr. Forbes will be very glad to go to Washington 
and see you. I will take it as a favor if you will reply, so that I may 
know what to advise him. 

Yours, truly, Albert Clajike, Secretary. 



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^iv 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 37 

Class IX.— Wood and Other Vegetable Material. 

New York, September 15^ 1898. 
Hon. EoBERT Porter, Special Commissioner^ etc. 

Dear Sir: Your favor of the 14th instant with inclosurea was duly 
received. We befj to report that on looking over the tariff, we find on 
page 45, group 3, that paragraphs 201 and 202, both of which leier to 
some extent to the same class of goods, but each one calling for a dif- 
ferent rate of duties, are conflicting, and should, in our opinion, be 
changed so as to leave no doubt as to the exact rates. 
We remain, yours, respectfully, 

Ghas. Zinn & Co. 



Poughkbepsie, N. Y., October 12^ 1898. 
Hon. Eobert P. Porter, Esq., Special CommissioneVj etc. 

Dear Sir: Although I must say I am not an expert, I take the lib- 
erty of addressing you these few lines in order to call your attention 
to the actual duties levied at present in Cuba over the lumber — I mean 
over the woml called pino bianco, piuo de tea, or boards and beams of 
pine wooil, as an article of need for the reconstruction of houses, of 
w hich so many have been destroyed, and the building of new ones. This 
kind of wood is almost the only one used in the houses in the island of 
Cuba. 

Yours, respectfully, Ramon Alvarez. 



CAITE- seated chairs AND RATTAN FURNITDRB. 

New York, November 19 j 1898. 
Hon. BoBERT P. Porter, Special Commissioner^ etc. 

Dear Sir: We are in receipt of your circular of September 14, and 
have delayed making suggestions in regard to the Cuban tariff as 
affecting our goods because we have been nnable to get any data from 
our friends in that country, and as they are the ones who could make 
suggestions, we did not think we should say anything unless they wrote 
ns. We have finally received a letter embodying several suggestions 
which we will state briefly, and we hope we are not too late to have 
them considered in making up the new tariff. 

We manufacture both cane and wood seat chairs and reed and rat- 
tan furniture, the latter being very popular in Cuba, and large quanti- 
ties are imi)orted there. You are probably acquainted with the nature 
of this class of goods and will know that it is very light and at the 
same time, owing to the construction, it Is ahnost impossible to make 
it knocked down. Some of the cheaper lines have legs and understock 
which can be knocked apart, but the finer grades have continuous rolls 
from the back down to the rocker and on the legs, so it has to be 
shipped set up. 

Now, the tariff at present in force, according to item 202, specifies 
duty of 10 pesos per 100 kilos, with a deduction for tare of 25 percent 
when packed in cases and 10 per cent when packed in crates or bales. 
When this Ihrniture is packed in cases the gross weight is fully double 
the net weight and when packed in crates is at least 50 per cent more 
than the net weight; therefore you will see that the allowance of 25 per 



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38 COMMERCUL AND INDUSTRIAL CONDITION OF CUBA. 

cent when packed in boxes and 10 per cent when packed in crates for 
tare is not safficieut. 

We give you for example a small shipment which we made several 
days ago. The gross weight amonnted to 127 kilos; tare, 10 per cent, 
12.70; net, 114.30 kilos; duty, at $26.60, equals 29.96. Now, the actual 
net wdght of the above shipment was 76 kilos, on which the duty at 
$20.50 per KNI kilos should be $19.95, and you will see the actual duty 
charged is at least 50 per cent more than it should be. In the new 
arrangement we think that either a larger allowance should be mmle 
for cases, or, what would bo better, a duty on the actual net weight 
should be charged. Besides the above suggestions, we would Rtate 
that our exi)eiience in shipping to Cuba has been that our customers 
have always wanted goods in large cases, and we understand also that 
chairs with cane backs are subject to a higher rate of dut^' than the 
same chairs with spindle backs. We believe the packing in large case« 
has been due to some local charge at the Havana docks, and, if ])oss]bl6, 
we would like to have it arranged so goods could be packed in small 
cases, as is customary to other parts of the world. If there is an extra 
duty on chairs with cane backs, we think this should be changed, as 
very often a medium-priced chair has cane in the back, while a higher- 
priced one has spindles, and if the object is to tax expensive furniture, 
it fails in this instance. 

With nothing further to add, and thanking you in advance for your 
consideration, we remain, 

Heywood Brothers and Wakepibld Company. 



Class X.— Animals, bto. 

CATTLE. 

New York, August lOj 1898. 
Hon. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir: Referring to the conversation I had the pleasure of hold- 
ing with you yesterday, I have invited several of the prominent mer- 
chants of New Vl'ork to be present at my office to meet you tomorrow 
at 11 a. m. to express frankly their views in regard to the necessities 
of the island of Cuba relating to the customs regulations, etc. Several 
people, I hope, will present in writing their ideas, and as far aa I am 
concerned I tirmly believe that if the treaty obligations of our country 
will permit the United States to enter into reciprocal trade with the 
island of Cuba on the basis of a free exchange of products as a tem- 
porary measure, to extend during a period of, say, four months, or up 
to the 1st of January next, it would be the most practical way of arriv- 
ing at a most beneticial result for the prompt rehabilitation of Cuba. 

You must bear in mind that the country is completely devastated. 
Railroads have been destroyed in a great measure, sugar mills have 
also suffered, and agricultural implements are very much needed; also 
we are arriving at the epoch when the cane fields will want attention, 
in order to prepare for grinding of the cane, that takes place in the 
month of Deceniber. I am certain that if a stable government under 
military rule for the present is established in Cuba and a preponder- 
ance of American interest assured, which in itself would guarantee tbe 
investment of capital, the inhabitants of the island would readily fiud 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 39 

financial support in this country to relieve their immediate wants, and 
as their wants will be very great, it would create an immense market 
for our manufactures and products; and free trade for a few months in 
Cuba would do more, as I state above, to build up the country than 
any other measure that I could suggest. The loss in customs collection 
would be trifling in comparison with the advantages that the country 
would derive, while our loss in collection customs here on Cuban 
imports would also be a small matter, taking into consideration that 
the bulk of the Cuban crop has already been marketed and that what 
they have for export is insignificant by comparison. Outside of all 
pecuniary calculations let us look at it from a humanitarian standpoint, 
which undoubtedly has been in this whole problem the prime mover. 
An action of this sort taken by our Government would cheapen neces- 
saries of life and prepare the way for future prosperity. 

I will mention that several syndicates are at work organizing for 
exiM>rt from Spanish- American ports of cattle. Free trade with the 
United States would surely give the monopoly to American cattle, and 
that would be a most important item, as the country is bare of oxen 
for draft purposes and cattle for consumption. 

Should it be impossible, for political reasons, to grant absolute free 
trade even for four months, pending a study of the requirements of the 
island, I would suggest that the minimum tax possible be placed on all 
American goods, and the same discrimination on Cuban products be 
granted by this Government. Looking at it from a political standpoint, 
the efiect would be a practical education to the Cubans, and through 
the cheapness of all their material and the market for their products, 
by the end of this year the Cuban people would be unanimous for 
annexation to the United States. I have the honor to remain, 
Very respectfully, yours, 

J. M. Ceballos. 



[Inoloeme.] 

Boston, Mass., Anguai 10, 1898, 
J. M. Cbbaixos, Esq., iS7 William street, New York, N. Y. 

Dear Sir : In repl v to your inquiry relating to the cattle supply tributary to Cuba 
and Porto Rico, would say that this is a subject that I have been investigating for 
over a year, and, as yon are aware, I spent two weeks in Havana early in January, 
where I saw a large number of cattle landed from Mexico which were well adapted to 
the Cuban market. I also consulted the Vene7.uelan consul, who informed me that 
his country produced cattle similar to the Mexicans, and I afterwards learned, 
through a party who handled the Venezuelans, that they were even better than the 
Mexicans and cheaper than they can be purchased for in this country at the present 
time. There are advantages, however, in having cattle from Texas, which raises 
one-seventh of the entire cattle in the United States, and from the ports of Galves- 
ton and New Orleans they can be landed in Havana in about three da^s; so that, 
while the first cost of the cattle is more, there is a saving in the delivery, as it 
requires a much lon^r time from other ports. Still further, we have ships adapted 
for the cattle-carrying trade, and the experience of the shippers in this country, 
together with the aid furnished by the Agricultural Department in securing proper 
ships and handling the cattle, has been of great advantage to the Americans. This 
is shown by the losses, which have been less than a quarter of I per cent on ship- 
ments from the United States to England, and the freight rate at present is 25 shil- 
lings. This rate is not secured on a basis of other freights, but on the condition of 
the English market, which is at present in very bad shape, largely on account of 
the shipments of cattle from the Argentine Republic, which lias become an important 
factor in the live-stock industry, and in 1897 there were about one-fourth as many 
cattle shipped from the Argentines as from the United States, with- shipments 
increasing very rapidly since 1890. On account of the competition in the English 
market from other countries, it would seem that the United States is entitl^ to 
whatever benefits may come from any new colonies which we may acquire from 



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40 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA, 

Spain. We can also supply the island with sheep and hoes from Texas direct^ and 
all live stock raised in tne South is much better adapted to ship to hot oountriee 
than that raised in the North; and still further, no cattle north of the qnaraDtin« 
line can be sh]p|>ed on account of the tick, which caoses Southern fever and is foand 
in all hot countries of low altitude. 

I made a report to the Secretary of Agriculture on mv return from Havana, show* 
ing the number of cattle that had been handled by tne different firms in Havana 
from August 27 to January 9, and, as yon are aWare, the firm of Messrs. J. F. Berudea 
&, Co. haudled a larger proportion than any of the others. 

It is probable that within a few days I shall visit Washington again and take this 
subject up personally with the Secretary of Agriculture, as he is in fall sympathy 
with my views, not only relating to cattle but also on all agricultural prodacts 
raised in the Uoited States, and now that the war is about closed it will give him a 
better opportunity to attend to thene special duties as a member of the President's 
Cabinet, and we can feel safe in saying that the producers in this country will have 
their interests carefully watched and tnlly protected under his personal 8upervnsi<m. 
Very few cattle are raised in the (julf States aside from Texas, which prodncea 

Srasses of excellent quality, com, and all other gprains, and cotton in great abnn- 
ance, and this can not be said of anv other country. 

Tmstiog that our Government will be able to protect its principal industries in 
the opening up of the new colonies, 

I am, yours, very truly, G. W. Simpson, 

Fori Worth Stock Yards Company, of Fori Worth, Tex, 



New York, August 15, 1898. 
Hon. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir: Eeferriag to our conversation of this morning, we have 
farther considered the question of the introduction of cattle into Gaba 
free of duty for a certain time, and are confirmed in the opinion that 
such a measure would be advisable. While the free introduction of 
provisions may be considered unnecessary and might have the effect 
of impairing the return of trade to its natural channels — ^leading to 
exaggerated importations which might leave the United States or the 
Cuban government with its custom-house revenue greatly impaired for 
a period of time — we believe, on the coutrary, that the introduction of 
cattle free of duty would be beneficial to all interests in the island. As 
you are aware, oxen are used extensively in Cuba in agriculture, on 
the sugar plantations, and also in the mahogany and cedar industries, 
which can not be carried on without them. 
Yours, truly, 

Flint Eddy & Co. 

New York, August 15, 1898. 
Hon. BoBERT P. Porter, Special Commissioner , etc. 

Dear Sir : With reference to the conversation I had with you to-day, 
allow me to say that my last letter from the Constancia estate, referred 
to in the article I gave to the Century Magazine, bears the date of July 
18. Among other things, my correspondent says : " We are killing cat- 
tle to feed the armed force and working peopW This means a great 
deal, and is an illustration of one of the most serious results of the 
Cuban rebellion and the war between Spain and the United States. 
The destruction of cattle in the island has been enormous. Some plant- 
ers, however, have been able to keep up their complement of working 
oxen, but since communication with the outer world has been prevented 
by the blockade these working cattle have been sacrificed to the suste- 
nance of human life. 

If anything is to be done by the United States Government to amel- 
iorate the condition of the industrial classes in Cuba, it seems to me that 



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OOMMERCUL AND INDUSTRIAL CONDITION OF CUBA. 41 

the most effective step in that direction would be to facilitate tbe impor- 
tation of working cattle. If the duty could be suspended for a time 
Unit act would go far toward helping us in our autumn work and in 
reaping the crop next winter. 

Very truly, yours, Osgood Welsh. 



New Tobk, August 15, 1898. 
Hon. Robert P. Porter, Special Commissioner^ etc. 

My Dear Sir: Eeferriug to the informal meeting recently held at 
the office of Messrs. J. M. Ceballos & Co., in this city, regarding Cuban 
matters, I have to inform you that I was personally unable to be present. 
I am largely interested in sugar estates in the island of Cuba, and, 
having ouly left there on the 17th of June, presume that I am as well 
informed on the present conditions and necessities of the island as any 
of the Americans. 

In order to rehabilitate the cane industry as soon as possible, many 
things will have to be done, but I will only call your attention at the 
moment to the necessity of obtaining a supply of cattle tor the puri>ose 
of working the fields. Almost all of the cattle in the island have been 
consumed and it is uecenssiry to obtain our supply from outside i)ort8. 
They should be permitted to go in free. At the same time, in order to 
maintain the cattle, they will have to be fed on grain, and as the pas- 
tures are still in an unsafe condition to permit them to a free pasturage, 
it is of as vital importance that grain (maize or Indian corn) should be 
]>erinitted to go in free as that cattle should. I simply make this 
suggestion. 

I remain, yours, very truly, O. B. Stillman. 



[Telegnun.] 

Nantucket, Mass., August 50, 1898. 
EoBERT P. Porter, Special Commissioner^ etc. 

Cable from Cienfuegos advises that working oxen of estates will be 
confiscated for food if free importation beef cattle is not promptly 
allowed. Have notified Washington. Will you not urge temporary 
suspension duties as matter of vital importance and calls for prompt 
action t 

E. F. Atkins. 



Kantuoket, Mass., August 30y 1898. 
Hon. Robert P. Porter, Special Commissioner ^ etc. 

Dear Sir: I wired you this morning regarding free importation of 
cattle in Cuba. 

My place and others at Cienfuegos have so far preserved their work- 
ing oxen. Without them the coming crops can not be made, for trained 
cattle in quantities can not be purchased anywhere. 

There are many troops still at Cienfuegos; they as well as the people 
must have meat, and unle>ss they can get it from abroad at some rea- 
sonable price the Spanish Government will take the working oxen. 
My agent, an influential Spanish merchant, so informs me by cable. 



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42 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

Last winter General Blanco saBpended all daties upon cattle as a tem- 
porary measure. It is now proposed by oar Government to collect daty 
at $0 per bead for bullocks, $8 for oxen, while the peo]ile are suffering 
for food. This will surely cause me loss of trained cattle worth doable 
their value as beef in ordinary times, and probable loss of the greater 
part of the coming sugar crop. 

Can not we get prompt order for suspension of duty for, say, ninety 
days, pending general arrangement of tariff! Yoa could do no better 
thing for Cuba than this, and there is no time to be lost. 

1 tel«*graphed to Judge Day, who turned the matter over to Secreta- 
ries Alger and Gage. Unfortunately, the President is absent firom 
Washington. 

Excuse my pressing this matter with you to sach an extent, but it is 
of the utmost importance to me as well as to all in Cuba. 
Very truly, yours, 

EDV7IN F. Atkins. 



Boston, Mass., September 13y 1898. 
Hon. EoBERT P. Porter, Special Commissioner^ etc,. 

Dear Sir: I inclose letter from the Secretary of State, of Septem- 
ber 1, and copy of the President's order regarding importation of cat- 
tle, sent me by the same Department. 

I think you understand that the order, as issued, does not cover the 
requirement. 

My object was to get free admission of cattle, as a temporary meaa- 
are, pending the general arrangement of Cuban tariff, so that the peo- 
ple in Cuba, as well as the Spanish troops, should be supplied without 
taking the working cattle of the estates for food. 

Under the order, cattle are only admitted free wlien intended for the 
starving inhabitants, subject to the discretion of the commanding 
officer of the United States forces. As I understand this, relief supplies 
sent by the Government or by the Ked Cross Society are to be admitted 
free, while cattle for general use will have to pay the present high rate 
of duty; this will deter the general importation of cattle rather than 
hasten it, and still leave our working cattle in a precarious condition. 

My manager in Soledad writes that since the signing of peace condi- 
tions he ha^ had to increase his armed force of police, paid by the 
estate, I'rom 80 to 110 men, in order to guard the working oxen from 
depredations of insurgents and Spanish guerrilla forces, and that it is 
only through the influence of Spanish friends that he has been able to 
prevent the working oxen from being taken by the Spanish Government 
for army use as beef 

It is my hope that under the new tariff not only beef cattle, but pigs 
cows, and working oxen will be made free of duty, as the country is 
bare of stock and the resources of the people very limited. The whole 
island must be restocked with cattle. 

In normal times, speaking for the Cienfuegos district of the island, 
3-year-old bulls have ranged in price from $18 to $22 per head. The 
proposed duty upon bullocks is $6, and upon oxen $8, per head, while 
pigs are to pay $5 each^ these rates seem out of proportion to their 
value. 

Very truly, yoors, Edwin F. Atkins. 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 43 

Santa Clara, September I5j 1898. 
Don. Robert P. Portbr, Special Commissioner, etc. 

Dear Sir: In the newsi)a|>er La Lacba, published in Havana, I 
have rejul that you have come to this country, and the object of your 
mission. 1 achlress you the following lines to give you some informa- 
tion on the state of this district. 

in this [Movinco, and especially in the towns of the interior, near 
which is to be found the most fertile soil, and even mining loesiliiics, 
an«i in which places General Weyler carried out bis policy of extermi- 
nation to the utmost, killing all aninndsand destroying even the fences 
and agricultural implements, there arc to be found to day a consider- 
able number of landowners who are compelled to beg for their liveli- 
hnod, and who have been unable to sell their property. These men 
who iiave been unable to replace the cattle lost both by confiscation 
and killing, are also unable to reconstruct their dwellings, burned by 
orders of General Weyler. The most urgent requirements are oxen, 
milchers, and horses. The province will require from 2,000 to 3,(MM) 
]>airs of oxen, 3,000 cows (milchers), and from 4,000 to 5,000 horses for 
the first year; also barb wire for fences. 

If some banking concern could establish an agency at each of the 
principal to\\ns which would advance funds to the landowners against 
their ])roperty, it would be of great assistance. If this could be drme 
immediately the next tobacco crop could be well attended to an<l the 
)>reparation of the cane fields could be efl'ected. Free connnunicatiou 
must also be allowed between the towns and the interior. This has not 
yet been reestablished, and now, to leave the towns, permission must be 
granted by the military authorities. 

As, besides myself a landowner, I have the official post of property 
registrar of this city, I am well acquainted with the subject 1 write 
alK^ut, and should my remarks deserve your attention 1 would be 
happy to extend them whenever requested to do so. I am, sir, 
Bespectfully, yours, 

Jose Benito Perez. 



Statement of Modesto Trelles. 

OiENFUBGOS, September 19^ 1898. 

The island of Cuba has 38,000,000 acres of land. Under cultivation, 
producing sugar cane, there are 1,980,000 acres, about 1,000,000 in roads, 
towns, etc., and 1,500,000 acres of fallow land. The cattle here i)ay con- 
sumption duty of 5^ cents per kilo. The jerked beef pays $3.96 import 
duty per 100 kilos. The import duty on each head of cattle is $8; the 
consumption tax, $5.50 a head. Buenos Ayres has been sending about 
500,000 head of cattle to Cuba in the shape of jerked beef. The reason 
of this is because of a tieaty Spain had that obliged Buenos Ayres to 
take in their wines and in return for that Cuba was to imi)ort jerked 
beef upon these conditions. 

We have been importing jerked beef to the extent of 500,000 head of 
cattle, owing to the advantages given Buenos Ayres. One of the secrets 
of this great importjition of jerked beef has been that, in the first place, 
when the Cuban merchant called for jerked beef he went directly to 
8))ain for it. They sent a ship from Barcelona to Buenos Ayres, loaded 
with wine, etc., from which i)oint the ship came here with a cargo of 
jerked beef. It lands the cargo here and then goes north with a cargo 



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44 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

of sagar. Then takes a new cargo of cottx)n from New York to Europe 
and goes back to the first point of shipment. This is one of the reasons 
why they had cheap rates on jerked beef. 

The whole thing has been done to chastise the cattle breeding in Caba, 
owing to this reciprocity treaty which Bnenos Ayres had with Spain. 
One of the greatest errors Spain has made has been in killing the cattle 
breeding here by these great advantages given to foreign meat markets. 
I wish to open your eyes in regard to this, because if it remains as it is 
we will always be under the same disadvantage of importing jerke<l 
beef, to the detriment of the cattle breeding. Ton must remember that 
jerked beef is a great detriment to salabrity, due to being salt, and 
obliged the people who eat it to drink large qaantities of water, which 
generally brings on ansamia. Of 1,500,000 inhabitants, 1,000,000 have 
eaten jerked beef heretofore, and that is equivalent to the amount of 
1,000 head of cattle per day of 300 pounds each, and naturally Cuba 
very well could produce this number of cattle with the utmost ease, 
because the pastures are very good here. It will be an economy of 
$5,000,000 or $6,000,000 a year of what we pay here for the jerked beef 
to Buenos Ayres, and if the importation of this jerked beef is avoided an 
equal amount could be grown, and we would besides have the benefit 
of the hides, tallow, and the horns of the cattle, which constitute a big 
industry in itself. Naturally, with the breeding of cattle here, all this 
land which is now idle could be used, and in addition would give 
employment to many cowboys, etc. The people here are very fond of 
cattle raising. Under the basis of having all these farms in a condition 
to produce cattle we could employ almost all our idle in this busine^ss. 

I suggest that the foreign beef should be put in the same class as the 
Ouban beef. It happens that live beef pays an interior consumption 
duty, which jerked beef does not have to pay. The jerked beef should 
at least be placed upon the same duty as the live stock. 



Statement of Oeorge M. GaitheVj of El PasOj Tex. 

Havana, September 28^ 1898. 

I have been Government inspector of cattle for the United States for 
five years, and have classed and inspected 200,000 head of cattle. It 
has been generally supposed that the bulk of Ihe cattle for the island 
come from South America, but while a great many come from there, 
still a great many will be shipped from the United States, as the cattle 
from Louisiana, Texas, and Florida can live here just as well as they 
can from anywhere else. It is an impossibility for the stockmen of this 
. country to pay the duty and stock the island, as the duty is too much. 
I have talked to a great many people all over the town who are very 
anxious for cattle and have the money to buy, but can not pay the high 
duty now imposed. I am speaking now of stock cattle for breeding pur- 
poses, for there are comparatively no work steers now on the island, 
and they tell me they can not do anything at all until they get in some 
cattle, which I think should be brought in free. 

Another thing that I noticed this morning in the paper, is where a 
man brought 500 head of cattle from Florida. He lost 125 head on the 
ship, which, added to the duty, makes a terrific loss. While this is, of 
course, an exceptional case, still there is always some loss of the cattle 
on the ship, and with the present high rate of duty the importation of 
cattle is almost prohibited. 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 45 

There is a firm to-day at Oalveston which has a contract to ship 
2,000 head of beef cattle a week. All the available cattle in Mexico 
have been shipped here, so that a great deal of the cattle mast come 
from Texas and the United States. The cattle in Florida are small, 
and are of such inferior quality that it does not pay to import them. 
They will probably bring some of the small cattle here and breed the^i 
to good balls, and in a few years will have a good stock of cattle. A 
great many cattle have been shipped, bat everyone who has shipped 
ciittie here has lost money. 

The island aLso has no horses. All the horses coald be brought from 
the United States, but the present duty is $50 per head, so the people 
simply can not afiford to bring them in at all. Any number of horses 
could be sold here, as they want to stock the ranches with horses and 
cattle, but they could not afford to pay $20 a head for horses and then 
pay $50 additional per head duty. 

I think I am safe in saying that a great many horses must come from 
the United States; there are simply no horses here, and as the United 
States has horses to kill for the hogs, they could undoubtedly supply 
this place with good plug horses. The United States has too many, 
and here is an outlet for them, which at present is closed because of the 
excessive duty. Everyone wants breeding mares and stallions, and 
the moment this duty is reduced there will be a great importation, for the 
X>eople have the money now to buy. I am informed by men who know 
that this island would comfortably handle 2,000,000 of breeding cattle. 
I judge at the outside, counting every cow, calf, bull, steer, etc., there 
are not now over 75,000 on the island. 



Havana, September 30 j 189S. 
Hon. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir: After our very pleasant interview of this afternoon, and 
digesting your remarks concerning the free entry of cattle in the island 
of Cuba for agricultural purposes, I desire to express in terms as forci- 
ble as possible my complete conviction that unless said measure be 
adopted at once the caiie proiiuction of the island will be unnecessarily 
delayed. My reasons are those of every other planter in the island 
whose fields have been destroyed either by the insurgents or Spanish 
forces, and who have at the same time stolen, destroyed, and eaten our 
working cattle, leaving us thus, without the prime factor with which 
to start again our destroyed plantations. It is true that even paying 
duties we can secure cattle for the object, but the increaseil number 
that free entry would enable us to obtain simply means a proportionally 
greater average of cane planted, and this means for Cuba a great deal. 

My own case stands as follows, without taking into consideration any 
producing element of cattle, my ordinary requirements are as follows, 
for my place having a capacity for grinding daily over 1,000 tons of 
cane, of which 500 tons have to be cut and hauled to the mills from my 
own fields. To do this I require at least 200 yoke of working oxen, 
besides some 50 yoke of spare oxen to replace those which have become 
unserviceable for the time being. This when my lands are in the 
desired condition for cultivation^ but at this moment an immediate 
planting of say 3,000 acres is required. To carry out this operation in 
time for the cane to be ground in the crop of 1899 to 1900, at least 150 
more yoke oxen would be required, or, say in all, 400 yokes. 

This statement refers to myself and planters generally, as well as to 



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46 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

the many cane growers, from whom all planters purcliaso rane--tlint is 
hi say, my parcbased cane amounts to from 600 to 000 tons (hiily ; tlit* re- 
Ibrc my suppliers' necessities are even greater than my own. 

This sample statement api>cars to me as answering every o4iko, an<l 
clearly shows what the relative position of the Cuban planter would 
be, with or without free entry of cattle. 
Yours, very respectfully, 

Albert Brocil 



Havana, September 30, 1898. 
Don. Robert P. Pdkter, Special Commissioner, etc. 

Dear Sir: I take the liberty of writing you these lines in the hope 
that they may add some additional incentive toward the granting to 
Cuba the free entry of cattle for agricultural labors. 

I, like Mr. Broch, whose letter to you he has kindly read to me, am 
a planter in the province of Matauzas, and, like him, a victim of the 
cruel and devastating war now happily over. My cattle ro<|uiremcnts 
are larger even than his, the extent of my cnltivatable lauds being in 
the neigiiborhood of 6,600 acres, with the same necessities on the part 
of those from whom I might purchase cane, whose condition is the 
p<issession of lands with nothing on them. Therefore I most heartily 
in<Iorse Mr. Broch's remarks, and with him earnestly hope that we may 
s<ion see mesisures adopted that will enable us all to purchase at cheap 
prices cattle with which to renew our fields and become once mt>re 
contributing elements of the prosperity of Cuba, which we all have ko 
much at heart. 

Very respectfully, S. Bajlo. 



Statement ofFilomeno Benemetis. 

Havana, October 5, 1898. 

I have been in the cattle business for six years, my business being 
almost exclusively between the United States and Havana, buying 
American cattle and shipping them to Havana. Before the war I pnr- 
chaseil my cattle in Alabama. The Alabama cattle are best fitted lor 
the Havana market, because they are not too large and not too small, 
as is the case with the Florida cattle, for it does not pay to pay the 
heavy duty on small cattle. There were some cattle from Lfouisiana 
which came from Georgia, Alabama, and the poorest cattle from Texas. 
These were not, strictly speaking, Louisiana cattle, but cattle centered 
at New Orleans. Most of the cattle that go into Cuba come from Tarn- 
pico and Vera Cruz. 

It would be better if the duty was so much per pound instead of so 
much per head, because then we could ship Florida cattle, and in the 
present duty the weight is not taken into consideration. First-class 
cattle have no market as beef in Cuba, but only for working purposes, 
and even for this they are not very good, being too fat. 

Assuming that the duty is too high, and that it should be levied by 
weight, I am of the opinion that there should be another division 
besides that of steers under 3, yearlings, and heifers. This prohibits 
bringing in the yearlings, which should be brought in to build up the 
cattle industry. 

You must understand that there is a great difficulty in buying cattle 



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COMMERCIAL AND INDUSTRUL CONDITION OP CUBA. 47 

for the Havana market, because you have to buy in the United States 
by weight and sell in Havana by the head, which requires considerable 
expert knowledge and experience in order to make money, and every- 
one vAu not jump into this business and do this. Cattle are always sold 
ill the United States by weight. 

If cattle were made free, the business would grow very much — 1 
would buy several thousand right away. Of course, the people in 
Uavana would benefit very much from free cattle, and trans|>ortation 
companies would not by any means be able to swallow up all the bene- 
fits. We would not be dependent upon one or two lines, because we 
could charter a steamer. With free cattle, I think probably Mexico 
-will ship the most. 

Working oxen generally weigh about 1,000 pounds. They need work- 
ing oxen, and the only way they get them now is to pick up some that 
have been brought in for beef. 

The average of cattle weighs about 700 pounds, for which I get 
between $32 and $48. On these I have to pay all the freight, custom 
charges, etc. So that by the time the meat gets into the butcher shop, 
it gets up to about 42 cents silver (about 30 cents gold) per pound, and 
is the same that costs wholesale in the United States from 3 to 3^ cents. 
Cotton-seed fed steers give between 65 per cent and 70 per cent of meat 
net. Grass cattle from the United States only net 50 per cent. Tam- 
pieo cattle give only about 50 per cent net. There is no advantage in 
selling good Ciittle in Ouba, as they buy these by the head. On my 
St. Ijouis cattle I lost money, they weighing about 1,500 pounds, and 
costing in the United States about $65; and I sold them in Ouba for 
about $52, which you will see is a great loss, when you consider the 
freight, customs, etc. 

A good team of oxen for working purposes is worth between 7 and 
8 ounces (an ounce equaling $17), and I give you a statement of about 
what it costs to get such a team into Cuba: 

Cost in Texas for one team of oxen $90.00 

Freight to Havana 14.00 

Exchange 11.40 

Dnty 20.00 

Bisk (about 5 per cent) 6.00 

Total 140.40 

Milch COWS are worth in Cuba from $60 to $80, and cost to get into 
Cuba as follows: 

Cow cost in the United States, with calf $40.00 

Freight for the two 8.50 

Exchange .^ 2.50 

Duty, cow$8, calf $4 12.00 

Risk 2.50 

Total 65.50 

I have also sold some hogs, which came from Mobile, Ala., weighing 
900 pounds, and lost money on them. Hogs cost 5 cents a pound, the 
freight is $3 a head, and the duty is between $6 and $6.25 per head. 
The killing charges are just the same on hogs in Havana, and the pork 
sells at between 8 and 10 cents a pound. 

The food of cattle for the trip from the United States to Cuba costs 
about 15 cents a head. We pay an extra 25 cents a head for the 
attention. 



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48 COMMEBCUL AND INDUSTRIAL CONDITION OF CUBA. 

New York, October 10^ 1898. 
Hoi . Robert P.' Porter, Special Commissioner^ etc. 

Dear Sir: We beg to band you copy of a letter sent by one of onr 
valued Cnban eoiTes|)ondent8 to General Lawton at Santiago, adding 
tbat Santa Lucia is probably the largest sugar factory in Santiago prov- 
ince, and has been unable to cultivate its extensive fields or operate its 
factory since summer of 1896. 

Onr friends require draft oxen as soon as )>ossible, but have little 
available money, and we sincerely trust the United States Government 
will let such cattle be imported free. 

Trusting that you will give this matter your kind attention, and look- 
ing for an early reply, we remain, 

Yours, very truly, Mosle Bros. 



[Inolosnre.] 

Santa Lucia Plantation, Gibara, Cuba, September £6, 1898. 
GeDeral Lawton, 

Miliiary Governor of Santiago de Cuba. 

Sir : I have the honor to sabmit to yon the foUowing statement in regard to the 
importation of some 600 or 800 oxen that I am abont to import into this island to 
work the Santa Lucia plantation : 

These oxen are to be imported to replace a part of the number left on the Santa 
Lucia plantation at the bej^inning of the Cnban war, in 1895, which latter were 
taken or driven ofif by either the Spanish or Cuban forces, so that now only 4 remain 
on the place. 

As I am again starting work on the plantation, I address you to ask if the United 
States Govei^ment will not waive the tariff (^8 per head) on these oxen, especially 
as my loss of the original ones has l>een great, as the oxen imported are not to be 
•old, and as they are absolutely necessary to start work on tne fields. I employ 
about 2,000 people when working full capacity. The families of these are dependent 
on the plantation for a living. At present most of them are dei>endent on charity or 
are public charge. 

After the previous war (1868 to 1878) we were allowed to import free of duty for 
five years all machinery and material necessary to put plantations in their former 
condition. 

The state of affairs now is the same as then. With the object of reviving the 
industries here as speedily as possible and with little burden to the people, I con- 
sider that it would be fair and reasonable to admit free of duty the oxen referred to. 

If necessary, I am willing to make athdavit to the effect that these oxen are to be 
used in work on my plantation and are not for sale nnd profit. 

As I would like to have the oxen here by November 1, 1^8, I would esteem it a 
great favor if yon will give this your early consideratiun, so that I may have an 
answer in time to act according to your advice. 

In order to save time, if possible, 1 have forwarded a copy of this letter to Secretary 
Alger. 

I wUl be thankful to you for indorsing it^ if yon should find my petition reasonable. 
I remain, sir, yours, sincerely, 

Alberto Sanchxz. 

Statement of Jose Porrua. 

OiBNPUEGOS, September 19^ 1898. 
I had 1,500 head of cattle and 300 pigs, which were destroyed. There 
are no cattle leilt in the ])royince, and it is absolutely necessary to do 
all possible to secure the free importation of cattle in the province. 
There were 20,000 cattle in the province, of which only 1,000 are left; 
and fully 85 per cent of all stock has been destroyed. Lack of oxen 
for working carts will he a great hindrance to the sugar crop, and it is 
very important to get these in at once. Under the autonomist govern- 
ment cattle were free^ and no one can understand what objection there 
was to this. 



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COMMERCIAIi AND INDUSTRIAL CONDITION OP CUBA. 49 

San Antonio, Tex., October 11^ 1898. 
Hon. Robert P. Porter, Special Commissioner j etc. 

Dear Sir: Noting in the newspapers your return from Cuba some 
time ago, and being aware of your mission there, same having been 
watclied with much interest, I take the liberty of writing you at some 
length on the subject of tariii' on live-stock importations into the island 
of Cuba. I am largely identified with the live stock interests of this 
country, and was at one time president of the Live Stock Association 
of this State, an organization that represents millions of dollars invested 
in live stock, hence, the subject on which I write is quite familiar to 
me and very near my heart. 

I endeavored to secure a contract to furnish General Shafl^'s army 
with beef by shipping same on the hoof to Ouba and killing it for the 
ai:my as needed. The Counnissary-General, Eagan, threw all such bids 
out, and mine went to the wastebasket with the rest. The contract 
was awarded to Swift & Go. I immediately sent an agent to Santiago 
de Guba to prepare to dispose of several cargoes of beef on hoof. After 
reaching there, he reported to me that Swift was furnishing dressed 
beef to the public at a rate I could not compete with, because I would 
be compelled to pay higher duties, while Swift & Go. paid no duties, 
the cargo of dressed beef being admitted free to the army and a large 
X>ortion of it sold to the public. This is the report verbatim made by 
uy agent. 

I recite this instance and respectfully request that you call the atten- 
tion of the proper authorities to see that they may not allow a similar 
occurrence at Havana when our army is in control there. 

I landed the first cargo of live stock in Havana after the blockade 
was raised, about August 21, consisting of goats and cattle. The goats 
I had to return to the United States because the excessive duties were 
higher than they were selling for on that market. 

1 am loading at Galveston for Havana about one vessel a week. 
' To be more brief, I am putting about 3,000 cattle a month on the 
Havana market, and pay to the Spanish Government authorities the 
high duty they impose, and up to this writing I have done well, but I see 
no alternative but to discontinue my shipmente unless live stock from 
the United States are favored, as against Mexico and South America, in 
the way of duty. 

If you can get a concession of duties in our favor that will enable us 
to compete with, or take the market from Mexico and South American 
dealers, you will confer a lasting benefit on the live-stock industry in 
this country, and in time will be appreciated by the Gubans. 

The live stock in the United States is far superior in quality to that 
of these countries south of us. Now, then, if we. Americans are pro- 
tected in such a way as to enable us to stock the island of Guba wit^ 
all classes of live stock from our magnificently bred herds ranging south 
of our United States quarantine line (in which district our immune cat- 
tle are raised), it will furnish the United States a profitable market, at 
the same time stock the island with a class of stock that we will be 
proud of in the future. The same rule will apply to other live stock as 
well as cattle. While on the other hand, if Mexico and South America 
enter the Cuban x)orts and pay the same duty as we do, inferior stock 
will soon overrun the island and we will never have the energy and 
enterprise to breed them up. A point of view is Mexico: they are infe- 
rior in every way to our stock, and the same marked difference is in 
horses and cattle. K the United States wants to confer a lasting favor 
8U46 % 



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50 COMMERCIAL AlO) INDUSTRIAL CONDITION OF CUBA. 

on Cuba, one to be enjoyed by futare generations, leave the Spanish 
daty in vogae as against all countries except ours, and we will do the 
rest. Yon need not fear any extortion on oar part, as competition will 
be sharp and prices kept within reason. 

I notice in a later telegram, the President has issued an execntive 
order amending the Cuban tariff so as to admit into all ports iu posses- 
sion of the United States duty firee. I presume this was done imrtly 
tlirough your recommeudation. 

Yours, very respectfully, L T. Pbyob. 



Testimony of J. T. Pryor, San Antonio, Tex,, taken at New TorJcy Novem- 
ber 8, 1898. 

I herewith submit my views and such information as I am able to 
secure as regards the live- stock industry at the present time on the 
island of Cuba; also the future of the same. 

You are at liberty to use any part of this letter in your forthcoming 
report you deem worthy of the same. 

It is an indisputable fact Cuba needs and can take care of over a 
million and a half head of live stock at this time, principally cattle. 
Is it to her interest to buy this live stock from the United States, or 
from Mexico and South and Central American countries? Yes. From 
the United States most decidedly. 

It is a well-known fact, which admits of no argument, that the cattle 
of Mexico and the Central and South American States are of a very 
poor and inferior grade. They are no more to be classed with onr 
quarantine cattle (which are the only immune cattle in the oountry 
and consequently the only ones suitable for this trade) than is the 
long-horn that roamed the Texas prairies thirty years ago to be com- 
pared with the best thoroughbred natives to be found iu our pastures; 
to-day. If these islands are to be flooded with this common stock it 
simply means putting them back in the scale of civilization and prog 
ress a quarter of a century. It is an axiom that the intelligence and 
thrift of the people are to be measured by the quality of their live stock. 
It would be conferring a lasting benefit upon Cuba and Porto Bico, and 
one which future generations in these islands would duly appreciate, to 
see to it that when they are restocked the poor stuff of Mexico and 
Central A merica is excluded. What our livestock interests should ask 
for is freedom from duty on importations from this country and the 
retention of the old Spanish tariif against other countries. This would 
insure that the live-stock interests of those islands would be reestab- 
lished on the same high plane as our own, and the active competition 
for that trade that would spring up among the stock interests of this 
country would be ample assurance that the Cuban markets would be 
supplied on a fair and equitable margin of profit. 

The Cubans will make a great mistake if they admit free of duty the 
common scrub cattle of Mexico and Central America. Through the 
devastations of the Spanish army there are no cattle left in Cuba worth 
considering, and the whole island will have to be restocked. The wise 
thing to do would be to get good blood at the start, for in raising cattle 
there is nothing like commencing properly. If Cubans start with the 
breedless scrub of the South American countries, they will have a class 
of cattle such as Mexico has, that is practically worthless. The stamp 
of American progress^ however, will soon be in evidence in this new 
republic, and there will be improvement in the live stock line as well 
as in other lines of business, provided the tariff is so adjusted in favor 



uigiTizea oy vjv/v./ 



^.v 



COMMEBCIAL AND INDUSTRIAL CONDITION OF CUBA. 51 

of the United States as to give as safflcient advantage over those 
coantries that we may be able to stock Gaba and Porto Bico from 
oar well-graded herds. I can not recall to mind any article of commerce 
with which Caba mast and wiU be sapplied from the markets of the 
world that deserves the carefhl and thoaghtfol attention that live stock 
does. A mistake made in the adjnstment of the duties on same will be 
irreparable, even after the mistake is discovered. Not so with our 
products. The future, in a large measure, of those countries depends on 
the class of stock they will produce. If stocked from our well-bred 
herds Cuba will, in my opinion, be exporting cattle to European coun- 
tries within ten years. We expect to exi>ort largely from Galveston, 
Tex. The east end of the island of Cuba is at least five days nearer 
Europe than Galveston. If we allow Mexico and South American 
coantries to take this trade from our live-stock producers and stock 
this country, we inflict an everlasting injury on those people. From 
the Mexicaa breed they could not grade up cattle in twenty-five years 
that would do them any credit in any Eurox)ean market. Mexico and 
South American dealers are landing on the island of Cuba at least 
30,000 to 40,000 cattle per month, and each month they increase their 
importation the full amount of transportation facilities, while the 
United States has not imported into Cuba exceeding 10,000 cattle since 
the blockade was raised. Note this difference. 

Our breeders are awaiting and confidently expecting an adjustment 
of duties that will put us on equal footing at least with those countries, 
quality of stock considered. 

If President McKinley would so modify his executive order wherein 
he admits cattle for work purposes and breeding purposes free of duty, 
to read so as to admit such cattle only from the United States free of 
duty, it will enable us to place a large number of cattle on the island of 
Cuba between now and the time Congress would take some action in 
the matter. 

The important and most essential point, and the one which I hope and 
have tried to make clear to your mind, is while we, of course, derive a 
benefit from stocking the island of Cuba with cattle from our ranges, 
we confer a lasting benefit upon the inhabitants of that island. We 
advance them in their live-stock interests fully twenty -five years ahead 
of their neighbors — ^Mexico and South America — and with the new 
American energy that will be infused in the inhabitants of that island 
she wiU hold her own and at least will not allow their cattle to deteri- 
orate in quality. 

Nbw Yoek, October 13^ 1696. 
Hon. EoBEBT P. PoBTBB, Special Oommissianer^ etc. 

Dear Sib: I inclose a translation of a letter I asked Mr. Andres 
Vidal, of the firm of Messrs. A. Vidal & Bro., of Santiago de Cuba, 
to write me concerning an importation of cattle he made in Santiago. 
Mr. Vidal suggests that special arrangements be made for immediate 
discharge of live animals. 

I am, respectfully, H. H. Pikb, 



[Ii^olosiure.] 

Nbw IfORK, October 10, 2898. 
Hbnrt H. Pikb, Esq., City. 

Dbar Sir: Ab yoa are aware, I have been in this city for the past few days, hav- 
ing retamed from a trip to Europe. I am awaiting the opportanity to go to Santiago 
de Cuba, and before leaving New York I beg to ask you a favor— that is, that you 

uigiiizea oy x-jv^v/p^ix^ 



52 COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 

nse your inflnenco, if poMible, with the AmerioAii GoTeroment in order to miike an 
eeeential modification in the tariff, which has been issued for the Cuban ports now 
occupied by the United States, relative to the item cattle. 

It happens that the cattle imported in Cnba are paying a duty of $6, $7, and $8 per 
head, according to the kind and age of the cattle, which duty is too hi^h if on« 
takes into consideration the pressing want of food in that country, which needs 
to-day more than ever every facility, particularly as concerns the impurtatioo of 
cattle, as it has totally exhausted the cattle which existed when the recent war 
began. 

f believe, as well as everyone else who is observing the new state of affairs and 
who favors the welfare of the island, that yonr Government should at once abolish 
the duty on all kinds of cattle imported into the ports occupied by the United States, 
and in this way facilitate the people in the consumption of beef, of which that 
island is in so great a need. 

Furthermore, the importers would enjoy a great advantage, i. e., the facility to 
discharge the cattle at any of the said ports at the time of the arrival of the cargo, 
an advantage which is unknown at present, as the formalities at the custom-house 
require some time for doing so, and this delay is always detrimental to the interests 
of the importer, owing to tne hot weather prevailing all the time in Cuba. 

Yon will remember, when stopping at Santiago, that Mr. Rabaza arrived there in 
the steamer Bergen with a cargo of 250 head of cattle from Jamaica. As the steamer 
arrived at sundown she could not begin the discbarge until the next day, as the for- 
malities at the custom-house had to be fulfilled, and the result of the delay was that, 
when the steamer entered the port, 6 head were dead. The next day, after completing 
the discharge, 19 head were found to be dead. This mortality, undoubtedly, was 
caused by the excessive heat, which, as already said, prevails all the time in Cuba. 

I have no doubt that yon will do your best in order to secure the above-named 
facilities; and hopinjz to hear from you on the subject very soon, I remain, dear sir, 
YonrSy respecttnlly, 

Andres Vidau 



Havana. 
Hon. BOBEBT p. POBTEE, Special Commissioner^ etc. 

Dbab Sib: In reply to your inquiries about the cattle business of 
the island of Cuba, will say that it is an important question to settle 
for the future^ as the island must be restocked. During a period of 
three months prior to the war, 70,000 to 80,000 head were imported, 
most of them for slaughtering purposes, and being mostly imported 
from South American republics, I have no doubt 1^,000 head will be 
imported during the same length of time after the ports of Cuba are 
opened. 

My idea is that cattle should be allowed to come to the island of Cuba 
free of duty, say for a period of three or four months after peace is 
signeil, as you know the suffering there is among the poor class. In 
this case I would venture to suggest that American cattle should obtain 
the benefit of going in free of duty for the time expressed, as that would 
greatly help this industry in the United States. The present duty on 
cattle is $6, $7, and $8, according to their class, and that American 
cattle is about (8 dearer than South American ones, taking the duty 
oft' on the American cattle would give your people a chance to compete 
with the other ones.. 

Just before this war was declared the Spanish Government abolished 
the duty for three months, and for another period of time it paid 50x>er 
cent of the former duty; this was a great help to the people, as meat 
was scarce then. 

The allowiog of free importation of cattle on the island is a very 
important question, more from the standpoint of humanity than any- 
thing else, as from advices recently received I see that there is great 
suffering among the poor for the want of this article. 

I would also suggest that after the three months of free importation 
have expired, and aU cattle allowed to go in under the same duty^ there 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 63 

is a cbance to protect American ships by saying foreign goods or 
cattle, etc., shipped on American bottoms have a rebate of 50 per cent 
of the duly. This will help to enlarge American-shipping business 
considerably. The same proposition may be adopted on goods shipped 
from the island to the United States. This is also important, as sugar 
and tobacco, which are important products of the island, are mostly 
8hipi>ed here, and if the preference is given to American ships, there is 
no doubt but that they will obtain the business. This will also help 
the shipbuilding industry of this country. 

For your guidance I may mention that there is a firm in Havana 
which has purchased 30,000 head of cattle in South America, and 
another 15,000 in Mexico. 

The main point is to allow cattle and provisions to go in free of duty 
for some time, so as to help the suffering people of the island, and as 
this country has gone to war more on a humanitarian standpoint than 
anything els6, 1 have no doubt that they will agree to this, more so as 
they are now responsible for the welfare of the island. 

If there is anything else in which I can be of service to you, please 
do not vacillate in occupying me. Meanwhile believe me, 
Yours, respectfully, 

W. B. Merry, 
Representing J. F. Bemdes dk Oo^ Havana. 



Glass XI.— -Instruments, Machinery, and Apparatus Employed 
IN Agrioulture Industry and Locomotion. 

New York, September 17 j 1898. 
Hon. Robert P. Porter, Special Commissioner j etc. 

Dear Sir : We beg to acknowledge receipt of your favor of the 14th 
instant, also of the custom-house tarili' and regulations booklet which 
we found inclosed in same envelope. 

After a brief perusal of this tariff, it seems that the duties on machin- 
ery are rather high. However, at this early date, not knowing yet how 
other financial questions will be settled, and what will be the x>olitical 
situation of Cuba in the near future, we find it rather difficult to express 
an opinion as to the convenience respecting the rate of said tariff. 
We remain, dear sir, yours, respectftilly, 

Krajewsei, Pbsant & Co. 



Philadelphia, Pa., September 19^ 1898. 
Hon. BoBERT P. Porter, Special Commissianery etc. 

Dear Sir : Your favor of the 14th instant was duly received. 

Naturally we could have no information upon any line of manufac- 
ture other than that in which we are engaged, namely, machine tools, 
steam hammers, and hydraulic riveters. We presume that these would 
be included under item 250 in the tariff schedule. 

Assuming that the tariff* is especially intended for revenue, it would 
seem to us that the rate established is a reasonable one. We can not 
understand, however, why the duty on a locomotive, or a boiler, or a 
marine engine should be so much higher than on the articles of our 
manufacture. Probably there is good reason for the discrimination, as 



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54 COMMERCIAL AND INDUSTBIAL CONDITION OP CUBA. 

undoubtedly the subject has bad tbe most careful attention from thostt 
who have established the rates. 

Yours, respectfully, Bbment, Miles & Co. 



STEAM MOTOBS. 

Ebib, Pa., September 19j 1898. 
Hon. Robert P. Porter, Special Commissioner^ etc. 

Dear Sir: We have no "expert knowledge^ in the matter under 
consideration. 

We note, however, unless steam motors cover same, that there was 
no reference to stationary or portable engines or boilers in the schedule. 
We infer that the schedule is to cover importation from other countries 
than our own. Our idea would be to give goods from the United States 
as nearly free entry as possible and trust to the war taxes for the reim- 
bursement. So long as the American business men, merchants, and 
manufacturers are bearing almost the entire portion of same, we think 
it would be perfectly equitable and are confident that most manufac- 
turers at least would prefer this method. 
Very truly, 

Bay State Iron Works. 



SEWINO machines* 

Jersey City, N. J., October 8, 1898. 
Hon. EoBERT P. Porter, Special Commissioner^ etc. 

Dear Sir: In reply to your esteemed letter of the 14th ultimo, would 
say that one of the principal articles of use handled by the Arm that I 
was connected with, and one of its founders in Havana, Cuba, Wiis 
sewing machines. The copy of customs tariff you sent I have exam* 
ined. It seems to me you liave copied the new tariff (Cuban) now in 
force, which has had some alterations, but the sewing machines you 
have left the same as in New Cuban Annual, viz, $4 per 100 kilos. Now, 
as the sewing machine is a breadwinner for the poor, I would suggest the 
duty levied be from $1 to J 1. 50 per 100 kilos. I also call your atten- 
tion to group 1, wood, No. 180, which levies $1 per cubic meter duty. 
This is extraordinarily high. Many homes and huts have been destroyed 
and must be rebuilt, and think it would be sufficient revenue if 10 per 
cent was collectc^d over the original cost of wood. 
Yours, very truly, 

H. 0. HiNSE. 



PLOWS AND AORIOULTURAL IMPLEMENTS. 

Louisville, Kt., September 20j 1898. 
Hon. BoBERT P. Porter, Special Commissioner^ etc. 

Dear Sir: Answering your valued inquiry of the 14th instant, our 
opinion is that so long as duties are imposed in Cuba on imports from 
the Unite<l States they could be no higher, in our line (plows and agri- 
cultural implements), than at present, and that they should be put on 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 55 

the free list from the United States only, and as soon as possible. We 
favor handling the Cuban tariff rigidly and exclusively in the interests 
of the productions of the United States. Let us legislate and work for 
American labor and American capital and seek to exclude as far as 
practicable all other nations from the trade of Cuba, by discriminating 
duties and every other feasible way. We ought to have free trade with 
Cuba, and all other nations ought to be kept out by a prohibitory tariff. 
We have driven Spain from the West Indies at great cost. Let our 
every move there be to foster the trade and other interests of these 
United States, to the exclusion of Spain particularly and all other 
nations in general. If we do not stand up for Uncle Sam, no other 
nation will. 

We remain, yours, truly, 

B. F. AvBBT & Sons, 

C. F. HuHLiEN, General Mcmager. 



WBIOHINO MACHINES. 

New York, Septemher 24 j 1898. 
Hon. KoBEBT P. Porter, Special CommisHioner, etc. 

Dear Sir: Replying to your favor of the 14th. For many years we 
have been in close business relations both with the planters and the 
general commercial interests of these countries, and therefore our 
knowledge of the conditions may be considered of some value. We 
take pleasure in complying with the request which you make, and beg 
to inclose to you herewith a brief statement of the case, together with 
a recommendation for a revision of tariff in respect to weighing 
machines. Should you desire any further information on the subject 
which we can furnish, we shall be very happy to do so. 
Yours truly. 

The Fairbanks Co., 
By J. J. Howell, Trea^surer. 



[Inolosnre.] 

Memorandwn respecting the tariff of Cuba and Porto Rico as applied to 

weighing machines. 

Class XI, group 2, paragraph 238. Noted for daty at 1.60 pesos per 100 kilos, gross 
weight. 

A modification of this appears on page 47 in note of reference to 
paragraph 239, in respect to "Weighing machines (platforms) for weigh- 
ing sugar cane," by which the duty on such machines is rated at 0.60 
pesos per 100 kilos, gross weight. 

The packing cases in which the great majority of weighing machines 
are shipped, comprising the various types of weighmasters, beams, 
portable ])Iatforms, and counter machines, employed in general com- 
mercial attairs, are, of necessity, heavy to properly protect the machines 
against damage. 

The percentage of weight of package to the net weight of such 
machines is very large. 



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56 



COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 



Below ia a table giving net and gross weights, etc., of a variety of 
weighing machines applicable to the Cuban tmde: 

Weighing machines employed in general commercial ajfaire. 



BciJe 
No. 



DesIgnatioD of machine. 









Percent 


GroM 


K«t 


Weight 


of pack- 


weight. 


wt>igfat. 


pMked. 


age to net 
weight. 


Pound*. 


PWMdM. 


PtfVIMft. 




90 


84 


66 


164 


145 


67 


78 


116 


170 


86 


86 


100 


220 


127 


88 


78 


250 


148 


108 


70 


44 


28 


21 


81 


44 


28 


21 


81 


24 


47 


28 


60 


45 


22 


24 


186 


64 


89 


26 


64 


e2 


86 


26 


72 


99 


64 


86 


65 


1,376 


078 


408 


41 


040 


718 


227 


» 


870 


687 


288 


86 


1,510 


1,086 


445 


48 


1,077 


787 


• 280 


87 


210 


147 


68 


a 


187 


180 


57 


44 


361 


107 


64 


50 


310 


236 


74 


80 


298 


219 


79 


96 


237 


164 


78 


44 


1,170 


960 


220 


23 


6,380 


5,880 


1,000 


18 



114 

122 

126 

128 

180 

554 

556 

780 

742 

825 

809 

922 

1000 

1008 

1022 

1046 

1052 

1124 

1128 

1180 

1170 

1172 

U74 

2234 

4350 



Weighmasten, heam . 



r.-if^ 



do 

do 

do 

Counter 

....do 

....do 

....do 

....do 

....do 

do : 

Portable, warehonse. . 

do 

do 

Dormant 

....do 

Portable, platform . . . . 

do 

....do 

....do 

....do 

....do 

Cane 

Track 



The last two lines of the table describe types of scales used on sag^r 
plantations for weighing cane, while in transit from field to sugarhouse, 
either on carts or cars. It will be seen the percentage of weight of 
package to net weight of machine is small when compared with 
machines of other types, while for plantation nse the rate of duty is 
only 0.60 peso per 100 kilos gross weight. 

The discrimination against other types described in the table, which 
pay a duty of 1.60 pesos per 100 kilos gross weight, appears to be most 
burdensome when considered in relation to the comparative money 
value. 

In view of the facts, we earnestly recommend a revision of the tariff 
in respect to Glass XI, group 2, paragraph 238, to the extent that the 
rate of duty on weighing machines of all classes shall be 0.50 peso per 
100 kilos gross weight. Such a revision will stiU grant a decided 
preference to the planter. 

The discrimination of the present tariff* has operated to introduce 
into the general commercial business of Cuba and Porto Eico large 
numbers of very low-grade weighing machines for general use among 
the people, which do not possess the necessary accuracy to protect the 
people against *' unjust weights." 

A revision of the tariff as above suggested would tend to improve 
such conditions. 

To overcome this difficulty and afford the people proper protection 
it would be necessary to establish a bureau of inspection and sealing to 
verify the acciracy of all weighing machines in public use. 

The Fairbanks Co., 
By J. J. Howell, ISeasurer. 



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COMMEBCIAL AND INDUSTRIAL CONDITION OF CUBA. 57 

MACHETES, HOES, ETC. 

New Tobk, K Y., September 27j 1898. 
Sou. RoBBBT P. POBTBB, Spedal Commissioner y etc. 

Deab Sib: We have your esteemed favor of September 14, with 
copy of customs tariff for Cuba, for which we thank you. 

Our trade in Cuba for years has been of large dimensions, and there- 
fore the proposed tariff is of great interest 

We manufacture a special line of Spanish goods for this market, and 
under Spanish rule it was of advantage to the Spanish officials to make 
the custom classification in doubt. 

Under date of July 18, 1893, the Department of State, through the 
late Hon. W. Q. Gresham, advised us that Spain had agreed that our 
goods, being special tools for agricultural pui-poses, were entitled to 
entrance under the class to which they properly belonged. 

Machetes, cane knives, etc., etc., for agricultural purposes were 
specified by Department of State as being for agriculture only; and 
the Department of State further advised us that ^' the possible use of 
an agricultural implement for other purposes does not change t)ie object 
for which it was designed, nor deprive it of the benefit of the class to 
which it properly belongs.^ 

In order that there may be no doubt regarding many of our goods, 
we would esteem it a special favor if you could allow us an interview, 
either in Washington or New York (should you visit this city). 

Trusting we may be favored with your reply, 
We remain, yours, most respectfully, 

Collins & Co. 



New Tobk, October :/5, 1898. 
Hon. BoBEBT P. PoBTEB, Special Commissioner^ etc. 

Dbab Sib: We beg to thank you for your interview in relation to 
the proper classification of many special tools made by us for the Cuban 
and Porto Eican trade. As you suggested, we have sent you by regis- 
tei-ed mail a copy of our Spanish catalogue, and we would call your 
attention to the many forms of special tools therein shown. 

You advised us that the President has made small agricultural imple> 
ment'S free, also plows. We fear that unless tools and implements are 
mentioned by name in the new tariff that there will be great danger of 
confusion, as the class of agricultural implements is so large, at times 
the same tool being used and also greatly for agriculture. 

We greatly appreciate the mighty task you have before you, and would 
suggest that along with plows the following strictly agricultural imple- 
ments be mentioned in your tariff, namely : Shovels, picks, hoes, axes, 
machetes for cane and clearing and cutting brush, hatchets, adzes. 

For many years we have had business in Cuba of great importance, 
and under the reciprocity arrangement with Spain all above goods were 
mentioned by our Government as being agricultural tools, and so under 
the most favorable duty and free. 

We explained to you the use of the machete in Cuba. This tool is in 
every way strictly an agricultural tool, being used by some for weeding 
wliere we would use a hoe. Also, the machete is the most important 
tool among the sugar and tobacco growers. At first used to clear up 
the ground, to keep it clear of underbrush, and last to cut the croj) 
when ready. 



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58 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

In Onba machetes are always known ns a<:rricultnral tools, bat in 
order to avoid any trouble in any port of the island (as we assume the 
cnstomhouse will be under Unit43d States officials to whom, perhaps, 
the machete is unknown), we most respectfully request that machetes 
may be specified as being free. 

For many years we have had trouble in Cuba regarding the proper 
classification of these tools. 

The State Department, under the late Hon. Walter Q, Gresham, car- 
ried the matter through in our behalf, so under the reciprocity arrange- 
ment machetes were tulmitted free of duty. 

As the machete is one of the most important parts of oar trade in 
Cuba, we have gone into the machete question quite largely and fully, 
and we beg to annex copy of letters from the State Department, wherein 
you will note they state that machetes should be fi^de under the reci- 
procity treaty, and at the demand of the State Department they were 
made free by Spain. 

The inclosures mentioned in these copies of letters go into the mat- 
ter very fully, so we only pick out two short letters, which show the 
State Department's opinion. 

We hope under the United States tariff we shall have the same 
benefit as before, of having this tool free, which is so greatly used for 
Cuban agriculture, and in order to avoid any discussion we trust yoa 
will see your way to so mention machetes in your tariff. 

We shall be pleased to hear if you find all in order, and thanking 
you foryour interview and your kind interest in this matter, 
We remain, dear sir, yours, very respectfully, 

Collins & Co. 



\ 



[Inolosare No. 1.] 

Statb Department, Washington, July 18, 1893, 
Messrs. Coixms A Co., 

eig Water street, New Torh, N, Y. 
Qbntlemen : Referring to your letter of the 20th of March lafit, in relation to the 
action of the Cuban customs aathori ties in exacting duties on ''machetes for aii^ioul- 
tnral purposes" imported into Cuba, in contravention of the terms of the reciprocity 
arrangement with Spain for that island, I have to apprise yon of the receipt of a 
dispatch from the United States charg6 d'affaires ad interim at Madrid, numbered 
11, of the 27th ultimo, transmitting copies of the notes addressed by the legation 
npon the subject to the Spanish minister of state, and of Mr. Moret's reply. 
Copies of these notes are inclosed for your information. 
I am, gentlemen, your obedient servant, 

W. Q. Grbsham. 



[Inolofliire No. S.] 

Department of State, Washington, November tO, 189S. 
Messrs. Coluns & Co., 

gig Water street, New York City, 

Gentlemen : In reply to your letter of the 17th instant, I have to inform you that 
by an error the Spanish Government published in Cuba for the use of the cnst-oms 
officials of the island a Spanish translation of our £nglish repertory, instead of the 
original Spanish repertory signed here. 

In this original Spanish repertory ''Machetes, para la agricultura, las artes y ofi- 
cios mecanicos" are specified, but are omitted from the repertory in use in Cuba. 
Almost all the questions that have arisen under the reciprocity arrangemeut have 
resulted from the use in Cuba of this erroneous and imperfect translation, and this 
Government has been endeavoring lor some time to secure the publication in Cuba 
of the original Spanish text, instead of the inaccurate translation now in use. 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. , 59 

Tt is now expected that this pnhlication will he effected in a few weeks, and the 
I ^epurtiiient Ih of the opinion that, as machetes are explicitly mentioned in the cur- 
r-oot repertory, the Cnhan officials will have no further )2^ronnd for levying duty 
i« pou these articles as soon as the present repertory is superseded hy the new publi- 
1 am, gentlemen, your obedient servant, 

Edwin F. Uhl, 
Acting Secretary, 



Santiago db Cuba, December 6^ 1898. 
Bon. Robert P. Porter, Special Gommisaioner, etc. 

Dear Sir: The train from San Luis did not get in yesterday morn- 
ing in time to allow me tbe pleasure of handing you my letter in person, 
as I intended. 

Meanwhile the inhabitants of Cuba come to realize the necessity of 

soliciting the annexation of the island to the United States as the only 

Avay of bringing prosperity to this land, which depends principally, if 

not entirely, ui)on the better disposal of its agricultural production for 

its subsistence, and as a measure to enable the sugar plantations that 

liave been saved from th^ consequences of the late war to resume active 

work and make the coming crop. Permit me to propose the following: 

The reestablishmcnt of an article of former tariffs, existing from 1860 to 

1>93, allowing the nearly free importation of all materials to be used iu 

the manufacture of sugar, "from the carriage of the cane from the cane 

fields to the final discharge of the sugar into the bags," provided the 

proprietors of the plantation should prove that the said machinery, 

apparatus, etc., were to be so employe<l ; the concession of a reduction 

of one-fifth of the duties on Cuba sugars imported into the United 

Stiites, in accordance with the reciprocity clause of the present tariff, 

as a just compensation for the reductions made in the Cuba tariff on 

goods which necessarily must come from the United States, will help 

and allow the Cuban producers to keep up in hopes of better times, if 

sugars do not decline from their present value; but is not sufficient to 

encourage the rebuilding of any of the estates partly destroyed during 

the war, and much less to encourage the erection of any new factories 

and sugar plantations. 

Mr. Mason had the kindness of showing me a copy of his rejiort, 
which I am pleased to note confirms what I said to you in regard to 
all the points relating to the tariff. 

I hope you will have a pleasant voyage home, and, with best regards, 
I remain, dear sir. 

Tours, very truly, Sax^tiaoo Eussias. 



Havana, Cuba. 
Hon. Robert P. Porter, Special Oommismoner^ etc. 

Sib: During your stay in this city I did not have the opportunity of 
calling upon you personally, so take the liberty of addressing you the 
following lines, for the purpose of calling your attention to some facts 
relating to machinery and machine-shop and foundry interests in the 
island of Cuba. I have an interest in the besteciuipped foundry and 
machine shop in the island, and have also done considerable business 
in the importation of machinery plants for sugar making. I mention 
these facts so that you can see that 1 have some motive for being 
infbrmfid upon the subjects of which I wish to write. Besides this, t^e 



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60 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

cliaracter of my business has takeu me over a considerable portion of 
the country, and therefore I have had the opportunity of studying the 
needs of the sugar interests generally. The imperative need existiug 
of giving every facility to the sugar-estate owners to rapidly and eco- 
Bomically develop the greatest resource of the island, so wrecked by the 
war, is clearly evident to everyone. To att^ain this end the most iieci-s 
sary of all things is machinery; not alone that used in extracting antl 
converting the juice of the cane, but also that employed in agriculture. 
Therefore it is plain that all such complete machinery should pa^is the 
custom-houses with the least possible duty, or entirely free of duties. 
But, at the same time, it is very necessary to give an ample protectiou 
to the machine shops and foundries of the country, dedicated prin- 
cipally to repair and architectural work. You are, of course, aware that 
the character of the work of sugar making from sugar cane is very 
severe upon the machinery employed. For this reason the item of 
repairs is a considerable one, as also that of losses from breakdowns 
and their consequent delays. Again, as you know, the season of sugar 
making is of relatively short duration, and that all the expense of 
" taking off the crop'' is concentrated into that short period; and there- 
fore the delay in repairing a breakdown generally amounts to much 
more in wages and time lost than the actual cost of making repair. 
Such being the case, it is clearly to the interest of plantation owners, 
and the island generally, that well-equipped machine shops and foun- 
dries exist in the principal centers of communication in the island, so 
that any interruption in the sugar factory due to fiftilure of machinery 
may be quickly and well repaired or replaced, without having to " cross 
the seas." No doubt the majority of estate owners with whom you 
have spoken on the subject of machinery have overlooked this phase 
of the question in their desire to get everything for themselves. It is 
my honest opinion that this point is of great importance to the sugar- 
producing interests. Further, as machinery is such a very principal 
factor in the producing of sugar, it is evidently a necessity to have a 
corps of well-trained mechanics to handle this machinery economically 
and well. To obtain the skiUed mechanics, then, it is necessary for theiu 
to have opportunities for learning the trade thoroughly; and this can 
only be accomplished in the machine shop. Therefore it is a necessity 
to have well equipped home shops. Theaecan only be secured by mak- 
ing it profitable for a machine shop-foundry owner to establish an effi- 
cient and upto date shop. It is also to be taken into account that 
any mechanical industry in this country has to work against the natural 
disadvantages of a tropical climate; and also the fact that these indus- 
tries are in their infancy, and would consequently be at a great disad- 
vantage in competing with the modem equipment and skilled labor of 
foreign countries. Basing my opinion upon the foregoing observations 
and the practice I have had in these branches of trade, I would suggest 
the following as a just measure and one calculated to benefit the own- 
ers of sugar factories as well as those engaged in shops (machine) and 
foundries: 

First. A duty of from 30 to 60 per cent ad valorem on all machinery, 
or machine duplicate parts, intended for repair work, re-forming of 
apparatus, or replacing of machinery parts (such as " spares"), and not 
constituting one completed machine or apparatus in themselves; to 
be included in this list, parts used for railroads in car building and 
repairing, excepting wheels and axles and completed wrought framing 
for same. 

Second. A daty of 50 per cent ad valorem on all ironwork, east iron 



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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. 61 

or Tvrongbt iron, and "yellow metal" intended for architectural ororna- 
irft^ntal pnriH)8e8, and roa^h castings and partially machined work not 
ooiiiing under the head of first article. 

Ill order to favor these industries, and to the disadvantage of no one, 
ull raw material, such as pig iron, wrought, plate, angles, and bars, and 
steel, wrought pipes, brass pipes, and hardware generally, should come 
ill free of duty. Coal and coi^e should also be free. 

1 loping that the above has merited your attention, and thanking you 
for any that you may give it, I beg to remain, 
Your obedient servant, 

J.L.VAN DB Water. 



Statement of E. H. Pearsouj manager of the Western Railroad. 

Havana, October 5, 1898. 

I wish to point out that under the new tariff practically the same 
duties and charges as were exacted under the old Spanish tariff are now 
ill force, and the only reduction will be the 20 per cent which was added 
during the war. Against this, also, we have to take into c<)nsi<1eration 
the fact that the duties will probably have to be paid in United States 
currency, which means an addition of 10 per cent, so that we are in no 
better condition under the new tariff than under the old. 

The duty on railway material is very excessive, as will be seen from 
the following samples: 

Per ton. 

Item 33, page 29. Iron and steel rails $8.50 

Item 36, page30. Wheels and axles 12.00 

Item 39, page 30. Bridge ^y or k 18.00 

I tern 44, page 30. Bolts, nnt«, and washers 10. 00 

Item 64, page 32. Copper, artioles not mentioned 200.00 

Item 244, page 48. Locomotives ■ 45.00 

Item 245, page 48. Turntables 15.00 

Item 255, page 48. Wagons 21.00 

A good locomotive will weigh 70 tons. 

Speaking of the railways as an industry, they have suffered fully as 
much as the plantations, for in addition to the loss of freight due to the 
stopping of the work on plantations we have also lost materinl. Such 
duties as those now in force make people think twice before extending 
railroads. If the duty was reduceid, we would i)robjibly import ready- 
made carriages from the States instead of making them in Cuba. 

Nearly all articles for railroad use could not be exported from Spain, 
and therefore they put a very high duty on them, whether shipped from 
Spain or other countiies. 

Daring the war we had nine stations burned completely as well as 
innumerable bridges and culverts. It is now to our a<lvantage to 
replace these in iron if we could get them in at a lower duty. We had 
two complete passenger trains burned and at least one-third of the 
wagon stock destroyed. We had seven or eight engines blown up, all 
of which were sold for scrap to get rid of them. If the duty would 
permit, we would import from the United States into Cnba ready-made 
stations. 

The duty on parts of locomotives, etc., should be made the same as 
when the entire locomotive is shipped, and not charged with a separate 
duty. 

My idea is that the railways shouhl be allowed to import for a while 
freei in order to enable them to rebuild the roads and make up for the 



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62 COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 

damages done daring the war. If this is not done^ they sboold ftt least 
be shown some consideration. 

Kails, locomotives, parts of locomotives, iron work for freight car- 
riages, wheels, and axles have been imported from the United &:>tates. 
With a decent tariff we would buy the coaches from the United States 
The American locomotives are better fitted for the rough road beda ot 
Cuba than the English locomotives, which are too finely built for the 
Cuban roads. 

New York, October 25, 189S. 
Hon. Robert P. Pobtbb, Special Commissioner , etc. 

Dear Sib : I agree with you that the duty on machinery should be 
so arranged as to be in its nature ad valorem, because a fixed rat« per 
])()an<l would bear heavily on large pieces, such as sugar-mill rolls, and 
light pieces of greater value per pound would be unduly favored. 

Further, it seems to me that machinery sent from Cuba to this 
country for repairs should be readmitted to the island free of duty. 

Just now, it is by chance that I have here five sugar-mill rolls, sent 
from our estate in Cuba to be repaired, and I think it would be a Lard- 
sbip if they were charged duty in Cuba a second time. 
1 am, dear sir, yours, very truly, 

Osgood Welsh. 

New York, October 13 j 1898. 
Hon. KoBEBT P. PoBTEB, Special Commissioner^ etc. 

Deab Sib: Your favor of September 29, dated Havana, is at hand. 

In comi)liance with your kind invitation to make suggestions as to 
any desirable changes in the tariff covering ports in Cuba iu xK>8se8- 
sion of tlie United States, that may occur to us, we would confine our- 
selves to the following: 

Under the heading of " Machinery," on pages 47 and 48, we believe it 
will be most desirable that even the small duty of 50 cents x>er l()i» 
kilos on miichineryand apparatus for making sugar and brandy (article 
239) should be removed, so that such machinery could be admitted 
entirely free of <luty, including all the other apparatus for sugar plan- 
tations included in the footnote marked with a dagger on page 47. 
We would also go further and recommend that other machinery than 
that designed for sugar plantations, including headings 240,241, 243, 
244, 247, and 250, should be put on the free list. An excellent prece- 
dent for this policy can be found in the Mexican tariff as it was in force 
during the years when the industrial development of that country was 
getting under way. All machinery run by power was admitted free of 
duty under the Mexican tariff, and even now there is only a duty of 1 
cent, Mexican silver, or, say, less than one half cent of our money, duty 
per kilo on all power machinery. 

If not desirable to put on the Cuban free list all classes of machinery 
as above recommended, we would suggest that at least all |K>wer 
machinery should be put under the same classification as article 239, 
at 50 cents per 1(K) kilos. 

We also desire to mention a fact that may have already been brought 
to your attention, namely, the hardship to which the importing mer- 
chants in Porto Rico are at present subject by reason of the full tariff, 
according to the second column, being imposed upon all importations 
in Porto Rico, not only from this country, but Spain and all other 
countries. You are doubtless aware that ])revious to the war, while 
this second column applied to the United States and other favored 

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COMMERCIAL AND INDUSTRIAL CONDITION OF CUBA. S8 

natioDB, the imports from Spain were only subject to 10 per cent of the 
secocid column tariff. The result is that the tariff now is wellnifrh pro- 
hibitive, and this is a bad thing, not only for Porto Kico, but also, we 
believe, for our own interests. 

We have spoken with prominent merchants in Porto Rico and corre- 
sponded with them on this subject, and, in fact, it has been brought to 
our notice by them. It would seem a fair settlement of the matter pro- 
visionally if duties of, say, 50 per cent of those charged in the second 
column should be assessed, i>ending such arrangement as may be con- 
cluded in the future. 

It seems unfortunate that at the outset of the occupation by the 
United States of Porto Rico business should be confronted with such 
an obstacle as the present heavy inci'ease in the rate of duty on imports. 
Yours, truly, 

The Seeoer & Guernsey Go. 
G. L. Seeger, President. 

New York, October 7, 1898. 
Hon. Robert P. Porter, Special Commissioner ^ etc. 

Dear Sir: I have your valued favor of the 14th instant, and have 
carefully looked over the copy of customs tariff and regulations you so 
kindly sent me. 

Permit me to say that in my humble opinion the rates proposed for 
my line — machinery and railway supplies of all kinds — is very much 
too high. Of course I would not suggest what they should be, as this 
depends entirely as to the future government to be established for the 
island of Cuba. What I would really like to see would be free trade, 
if such a thing were possible. 

Thanking you, Mr. Gommissioner, for the honor conferred upon me in 
addressing me, I am, very truly, yours, 

R. M. Miles. 



Glass XII.— Alimentary Substances. 

FLOUR. 

New York, September 17y 1608. 
Hon. Robert P. Porter, Special Gommissioner^ etc. 

Dear Sir: In reply to your communicatio of the 14th instant, we 
beg to say that we are only interested in flour for export, and consider 
the duty of $1.50 per sa<5k of 200 pounds in Guba on this ])roduct 
beneficial to the trade and low enough for all purposes. It will give 
our country a monopoly of this article, furnish quite an income for the 
new government to be establishe<l, and make attempts at smuggling or 
evasion of duties unprofitable and unlikely. 
Yours, very resiiectfully, 

John Boyd, Jr., & Go. 



HAT AND GRAIN. 

New York, September 19, 1898. 
Hon. Robert P. Porter, Special Commissioner , etc. 

Dear Sir : Yours of September 14, relating to duties, etc., as between 
the United States and Guban ports now in possession of the United 
States, duly received. C^r\r\n\o 

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64 COMMERCIAL AND INDUSTRUL CONDITION OF CUBA. 

Will say we are engaged in the hay and grain business and have 
exported considerable hay from this port to Havana; our last shipment 
was seized on steamship Ptmama and sold by the United States Gov- 
ernment for prize money. 

Yonr copy of Customs Tariff Eegnlatious seems somewhat incom- 
plete so far as hay, oats, barley, corn, and other grains, excepting 
wheat, are concerned, unless you classify them in group 4, paragraph 
277, relating to " Fodder and bran." 

Our transactions have been entirely with the Havana market. Is it 
intended that the same rates of duties will prevail in Havana when 
evacuated by the Spanish as those in force at Santiago and other ports 
now in possession of the United States, or where the American flag 
flies f We presume such will be the case. 

^avana is a market that needs considerable quantities of hay and 
grain, and the duties and side charges, rates of exchange, etc, have 
been so exorbitant heretofore that it has barred out of its market, to 
a very large degree, American produce. 

To bear out my line of argument, I inclose you a pro forma account 
sales from a commission house in Havana, which is the most forcible 
illustration we can present you with, showing what it costs to handle 
100 bales of hay, 200 pounds per bale, in that city. These charges pre- 
vailed before and during the war. Since the cessation of hostilities the 
duty has been still further advanced. The pro forma shows yon that 
the duty and charges, exclusive of freight, is more than the actual value 
of the hay before it leaves this port. In consequence the consumer in 
Havana has badly sufiered from the burden of taxation, as well as the 
dealer who attempted to do business with the expectation of getting a 
small margin of profit. Inmost instances shipments have been experi- 
mental and done at a loss. 

We would like to see a dnty imposed making it possible to do a large 
and healthy trade between this port and Cuba, and we believe the agri- 
cultural interests of this country should be carefully studied before 
hastily placing a duty. 

The rates of exchange are at present so unsettled that it would be 
impossible for us to give a clear opinion of what the duty should be. 

We shall be pleased if this information may be of service to yon, and 
if there is anything further bearing upon direct question of information 
whereby we can serve you do not hesitate to communicate with our 
Mr. Huffman, whom you will find at your service. 
Very respectfully, 

Theo. p. Huffman & Co. 



[loclosare.] 

Pro forma account sales of 100 hales hay received from New York, 

100 bales hay, at $3 ^ $300.00 

12.00 

288.00 
11.52 
276.48 

CHARGBS. 

Duty on 9,200 kiloe, at 85 cents $78.20 

DUoharge daes, 9,200 kilos, at$l 9.20 

Port dues on 9,200 kilos, at 25 cents 2.30 

Official dues, $2.76, at 10 per cent. $27.60 bills, at 61 value 16.84 

Freight (probably) , 8$»89 



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COMMERCIAL AND INDUSTRIAL CONDITION OP CUBA. 65 



Receiving and deliyering; at 10 cents $10.00 

0. H. entry and stamps 3.00 

Commission, 2^ per cent 6. 91 



$208.80 
68.68 



$70.62 currency, at 10 per cent per month. Spanish gold. 
Ex. O. E. 

HiGQiNS & Co. 
Havana, March IS, 1898. 



condensed mile. 

September 20, 1898. 
Hob. Eobbrt P. Porter, Special Oommiasianery etc. 

Dear Sir: Your letter of September 14 daly received, and we take 
pleasure in complying with your suggestion. Our business is con- 
fined to the manufacture of condensed milk, evaporated cream, and 
condensed cofiee. Evaporated cream is simply an unsweetened con- 
densed milk reduced to the consistency of cream, being put up without 
sugar. The name is selected to distinguish it from condensed milk, 
which is ordinarily regarded by the trade as being a sweetened product, 
or preserved with sugar. In no part of the West Indies is milk pro- 
duced to any commercial ext