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TARIFF

SCHEDULE 7--AGRICULTURAL PRODUCTS AND PROVISIONS

HEARING

BEFORE THE

COMMITTEE ON FINANCE
UNITED STATES SENATE

SIXTY-SEVENTH CONGRESS

SECOND SESSION

ON

H. R. 7456

AN ACT TO PROVIDE REVENUE, TO REGULATE COMMERCE WITH FOREIGN COUNTRIES, TO ENCOURAGE THE INDUSTRIES OF THE UNITED STATES,

AND FOR OTHER PURPOSES

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COMMITTEE ON FINANCE.

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BOIES PENROSE, Pennsylvania, Chairman. PORTER J. MCCUMBER, North Dakota.

FURNIFOLD M. SIMMONS, North Carolins REED SMOOT, Utah.

JOAN SHARP WILLIAMS, Mississippi. ROBERT M. LA FOLLETTE, Wisconsin. ANDRIEUS A. JONES, New Mexico. WILLIAM P. DILLINGHAM, Vermont.

PETER G. GERRY, Rhode Island. GEORGE P. MCLEAN, Connecticut.

JAMES A. REED, Missouri.
CHARLES CURTIS, Kansas.

DAVID I. WALSH, Massachusetts.
JAMES E. WATSON, Indiana.
WILLIAM M. CALDER, New York.
HOWARD SUTHERLAND, West Virginia.

LEIGHTON C. TAYLOR, Clerk.
W. B. STEWART, Assistant Clerk,

TARIFF-AGRICULTURAL PRODUCTS AND

PROVISIONS.

TUESDAY, DECEMBER 13, 1921.

UNITED STATES SENATE,
COMMITTEE ON FINANCE,

Washington, D.C. The committee met, pursuant to adjournment, at 10.30 o'clock a. m., in room 312, Senate Office Building, Hon. Boies Penrose presiding.

Present: Senators Penrose (chairman), McCumber, Smoot, La Follette, Dillingham, McLean, Watson, Calder, Sutherland, Simmons, and Walsh.

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The committee will now hear Senator Ashurst, who has some gentlemen from Arizona to introduce.

STATEMENT OF HON. HENRY F. ASHURST, SENATOR FROM

ARIZONA.

Senator ASHURST. Mr. Chairman and gentlemen of the committee, Gor. Campbell, of Arizona, and Hon. Dwight B. Heard, president of the Pima Long Staple Cotton Growers' Cooperative Marketing Association of Arizona, and also a member of the executive committee of the World's Cotton Conference, will present the arguments. The Arizona delegation will not trespass upon the time of your committee. You have been patient. Senator Cameron, who is unavoidably absent on business of the Senate, is interested no less than am I, and he has made his views on this amendment known to the Senate and to Senators, and I have authority to say he joins heartily with

or. Campbell and with Mr. Heard and Representative Hayden in asking your kind indulgence. The governor and Mr. Heard will arrange their own order of speaking.

Mr. Heard has prepared, the governor cooperating, a statement, which I will ask your indulgence and attention while it is real, because it is a succinct, illuminating, and a penetrating document. Every member of the Finance Committee should hear it. It has been carefully gone over; every word has been weighed. STATEMENT OF MR. DWIGHT B. HEARD, PRESIDENT PIMA COTTON

GROWERS' ASSOCIATION AND MEMBER OF EXECUTIVE COMMITTEE OF THE WORLD'S COTTON CONFERENCE, PHOENIX, ARIZ. Mr. HEARD. Mr. Chairman and gentlemen of the committee

The CHARMAN (interposing). Mr. Hearil, state for the information of the committee, your full name.

Mr. HEARD. Dwight B. Heard.

The CHAIRMAN. And your residence and occupation.

Mr. HEARD. My residence is Phoenix, Ariz. I am principally engaged in farming. I also am the publisher of the Arizona Republican.

The CHAIRMAN. Will you go on now and state your views on this schedule?

Mr. HEARD. As the long-staple cotton on which protection is sought is primarily the American-Egyptian or Pima cotton, produced in the irrigated valleys of the Southwest, an industry with which I am personally familiar, my remarks will be contined to this class of cotton, the bulk of which exceeds 1} inches in staple length and comes in direct competition with the well-known Sakellaridis, ir Sakel cotton, produced almost entirely in the delta of the Nile, in Egypt.

Since 1906 I have been in close personal touch with the group of highly trained, scientific men in the Department of Agriculture who have so greatly assisted in the development of this new agricultur industry. For the past six years I have been growing pima cotton near Phoenix, Ariz., and the facts which I shall present are either matters of my personal knowledge or the result of information only. tained through various Government bureaus in Washington in touch with this industry.

Last year there were produced in the United States in the irrigatel valleys of the Southwest 103,000 bales of American-Egyptian or Pima cotton. The import of Sakel cotton from Alexandria, Egypt. into the United States in the year closing August 1, 1920, was aj. proximately 340,000 bales. The average import of this cotton for the four years previous was 120,000.

It is conservatively estimated that the demand of the American manufacturers for this type of cotton, which is used principally in manufacturing cord-tire fabrics, airplane and balloon cloth, mercerized and fine cotton goods, such as dimities, lawns, voiles, fine shirtings, handkerchiefs, and threads, will average about 230.04) bales annually,

The cotton producers of the Southwest are asking for at least sufficient protection to equalize the difference in labor and transportation costs between the wages paid the fellaheen, or peasant laborers. of Egypt, of from 24 to 36 cents per day, and the daily wage paul agricultural labor in the Southwest of from $2 to $2.30 per as The transportation cost from Alexandria, Egypt, to New England manufacturing points is $9.90 less per bale than the lowest rate from Phoenix, Ariz., in the center of the American-Eyvptian is trict, to the same manufacturing points. The difference in labor cois most vital, is approximately 60 per cent of the cost of producing this specialized long-staple cotton is for labor.

In considering the need for protection for this developing American industry, encouraged by five administrations and assisted by appropriations from every Congress since 1904, four factors should be considered.

First. Is the production within the United States of long-staplo cotton of superior quality in sections proven ideal for its growth an essential national industry?

Second. Will the failure to protect long-staple cotton by reasonable tariff sufficient to equalize the difference between the cost of the

present labor of Egypt and the American agricultural labor, and the difference in transportation costs destroy the production of AmericanEgyptian cotton in the United States?

Third. Is it not probable that with the protection asked for we can produce in the United States within a few years, in regions proven thoroughly suited to its growth, all the long-staple cotton of this type neecleil by American manufacturers ?

Fourth. If this industry, developed with the assistance of the Department of Agriculture, is allowed to perish through lack of the reasonable tariff protection asked for, will not our American manufacturers, needing this class of cotton, eventually pay such a price for it as foreign nations controlling production of it may litate!

I shall endeavor to confine my remarks directly to those four points, first, is the production of this type of cotton an essential national industry? I shall touch but briefly upon the remarkable development of this important new agricultural industry. My brief fileal with the Ways and Means Committee of the House on April 25, and which I will file with your committee as Exhibit 1, covers quite fully the very valuable work carried on by the Government since 1902 in developing the now famous Pima cotton. This work covered scientific studies in Egypt, the establishment of plant breeding gardens in Arizona in 1906, the establishment of thorough Government standards now recognized throughout the world, an organized system of Government inspection of standardized selected seed, and a study of the most practical uses of this cotton by American manufacturers; ani), finally, owing to its extreme strength, combined with lightness, its successful use, after the most exacting and careful tests by the Government for our Air Service, both in airplane wings and balloon cloth.

During the war as chairman of the Arizona council for defense I cooperated with the United States Government in arranging for supplies for Pima cotton so urgently needed for airplane and balloon cloth; was present at the New Bedford mill at the time this cotton was being manufactured into airplane cloth, and obtained the results of the laboratory tests then made, which showed the exceptional value of this cotton when great strength combined with lightness was required. In Exhibit B will be found a statement showing the results not only of these tests. I will ask that my chart “B” be held up in position for the members of the committee to see.

(The chart referred to was thereupon exhibited to the committee, and the same is filed for reference.)

Mr. HEARD. But of other laboratory tests conducted by tire manufacturers and by the United States Bureau of Standards and the Bureau of Markets all of which demonstrate the superlative value of this cotton.

Senator WALSH. Where were these tests made?

Mr. HEARD. They were made by the United States Bureau of Standards and by the War Department. There is another series of tests coming on, and also by the Goodyear Rubber Co. on their own account.

While Pima cotton has shown up most satisfactorily in all these tests, we are now working to improve methods of cooperation spe

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