PAR. 770. Tomatoes in their natural state, [one-half of 1 cent] 3 cents per pound; [tomato paste, 40 per centum ad valorem; all other,] prepared or preserved in any manner, [15] 25 per centum ad valorem.

PAR. 771. Turnips and rutabagas, [12] 25 cents per one hundred pounds. PAR. 772. Vegetables in their natural [state,] state: Peppers, 3 cents per pound; eggplant, 3 cents per pound; cucumbers, 3 cents per pound; squash, 2 cents per pound; all other, including crude horseradish, not specially provided for, [25] 50 per centum ad valorem: Provided, That in the assessment of duties on vegetables of any kind no segregation or allowance of any kind shall be made for foreign matter or impurities mixed therewith.

PAR. 773. Vegetables, if cut, sliced, or otherwise reduced in size, or if reduced to flour, or if parched or roasted, or if pickled, or packed in salt, brine, oil, or prepared or preserved in any other way and not specially provided for; sauces of all kinds, not specially provided for; [soya] soy beans, prepared or preserved in any manner; bean stick, miso, bean cake, and similar products, not specially provided for; soups, soup rolls, soup tablets or cubes, and other soup preparations, pastes, balls, puddings, hash, and all similar forms, composed of vegetables, or of vegetables and meat or fish, or both, not specially provided for, 35 per centum ad [valorem.] valorem; pimientos, packed in brine or in oil, or prepared or preserved in any manner, 6 cents per pound.

PAR. 774. Acorns, and chicory and dandelion roots, crude, 12 cents per pound; ground, or otherwise prepared, [3] 4 cents per pound; all coffee substitutes and adulterants, and coffee essences, 3 cents per pound.

PAR. 775. (a) Chocolate and cocoa, [sweetened or unsweetened, powdered, or otherwise prepared, 172 per centum ad valorem, but not less than 2 cents per pound; cacao] valued at not more than 12 cents per pound, 2 cents per pound; valued at more than 12 cents per pound, but not more than 24 cents per pound, 2 cents per pound and 10 per centum ad valorem; valued at more than 24 cents per pound, but not more than 35 cents per pound, 4 cents per pound and 10 per centum ad valorem; valued at more than 35 cents per pound, 40 per centum ad valorem: Provided, That in determining the value of the foregoing (including value for the purposes of classification) the value of all immediate, intermediate, and outer containers and coverings shall be included, and in determining the weight (including weight for purposes of classification) the weight of all containers and coverings (except packing cases and outer containers) shall be included.

(b) Cacao butter, 25 per centum ad valorem.

PAR. 776. Ginger root, candied, or otherwise prepared or preserved, 20 per centum ad valorem.

PAR. 777. Hay, $4 per ton of two thousand pounds; straw, $1 per ton of two thousand pounds.

PAR. 778. Hops, 24 cents per pound; hop extract, $2.40 per pound; lupulin, 75 cents per pound.

PAR. 779. Spices and spice seeds: Anise seeds, 2 cents per pound; caraway seeds, 1 cent per pound; cardamom seeds, 10 cents per pound; cassia, cassia buds, and cassia vera, unground, 2 cents per pound; ground, 5 cents per pound; cloves, unground, 3 cents per pound; ground, 6 cents per pound; clove stems, unground, 2 cents per pound; ground, 5 cents per pound; cinnamon and cinnamon chips, unground, 2 cents per pound; ground, 5 cents per pound; coriander seeds, one-half of 1 cent per pound; cummin seeds, 1 cent per pound; fennel seeds, 1 cent per pound; ginger root, not preserved or candied, unground, 2 cents per pound; ground, 5 cents per pound; mace, unground, 4 cents per pound; ground, 8 cents per pound; Bombay, or wild mace, unground, 18 cents per pound; ground, 22 cents per pound; mustard seeds (whole), [1 cent] 2 cents per pound; mustard, ground or prepared in bottles or otherwise, 8 cents per pound; nutmegs. unground, 2 cents per pound; ground, 5 cents per pound; pepper, capsicum or red pepper or cayenne pepper, unground, 5 cents per pound; ground, 8 cents per pound; [and] paprika, ground or unground, [2 cents per pound; ground,] 5 cents per pound; black or white pepper, unground, 2 cents per pound; ground, 5 cents per pound; pimento (allspice), unground, 1 cent per pound; ground, 3 cents per pound; [whole pimientos, packed in brine or in oil, or prepared or preserved in any manner, 6 cents per pound;] sage, unground, 1 cent per pound; ground, 3 cents per pound; curry and curry powder, 5 cents per pound; mixed spices, and spices and spice seeds not specially provided for, including all herbs or herb leaves in glass or other small packages, for culinary use, 25 per centum ad valorem: Provided, That in all the foregoing no allowance shall be made for dirt or other foreign matter: Provided further, That the importation of pepper shells, ground or unground, is hereby prohibited.

PAR. 780. Teasels, not bleached, colored, dyed, painted, or chemically treated, 25 per centum ad valorem.

SCHEDULE 8.-SPIRITS, WINES, AND OTHER BEVERAGES

REPORT BY THE SUBCOMMITTEE

C. WILLIAM RAMSEYER, Chairman
JAMES C. MCLAUGHLIN

WILLIS C. HAWLEY

Your committee has given careful consideration to all of the testimony, oral and written, submitted during the public hearings of the Committee on Ways and Means, and has examined the Summary of Information on Schedule 8, prepared by the Tariff Commission. It has consulted with representatives of the Bureau of Prohibition, of the Assistant Attorney General in charge of customs cases, and of the Tariff Commission.

RATES OF DUTY-ANGOSTURA BITTERS

No changes in rates of duty have been made in any of the paragraphs in Schedule 8 except through the deletion of a special commodity, which automatically classifies it with all other similar commodities at a higher rate of duty. This change occurs in paragraph 802, in which the exception in the case of angostura bitters is eliminated on the theory that the existing provision discriminates against similar bitters imported under other names. Angostura bitters are also of foreign origin. The old rate of $5 per proof gallon will, therefore, apply to all bitters.

CHANGES IN PHRASEOLOGY

Changes in phraseology have been made in paragraph 813 of the Act of 1922 by deleting the words, "Internal Revenue," and substituting the word "Prohibition," occasioned by the creation of the Bureau of Prohibition since the enactment of the Tariff Act of 1922.

JUICES USED FOR BEVERAGES

By reason of the elimination of paragraph 1610 of the Tariff Act of 1922, which provides for the free importation of lemon, lime, and sour orange juice when containing less than 2 per cent of alcohol, such products, if imported for beverage purposes, will automatically fall under the basket clause of paragraph 806, providing for "all other fruit juices," without change in the language of the paragraph. Such juices, when imported to be used for the extraction of citrate of lime, will fall in the chemical schedule.

BERRIES AND FRUITS PRESERVED IN ALCOHOL

Berries and fruits, of all kinds, preserved in alcohol, formerly dutiable under paragraph 750 of the Tariff Act of 1922, have been transferred to this schedule without change in duty. The committee believed that such products properly belong in Schedule 8 with other alcoholic beverages and edible products containing alcohol. The phraseology of the paragraph, however, has been changed so as to limit the alcoholic content to one-half of 1 per cent, to conform with the alcoholic limit on fruit juices which are now subject to additional

duty for alcoholic content in excess of one-half of 1 per cent. The rate provided for alcohol in excess of one-half of 1 per cent in this paragraph is the same as previously existed. The phraseology referring to the importation of intoxicating liquors in violation of the eighteenth amendment has been deleted, since it is no longer necessary because of the transfer of this paragraph from Schedule 7 to Schedule 8. The changes made by this bill over the Tariff Act of 1922 are as follows:

[Matter stricken is inclosed in black brackets; new matter is in italic]

SCHEDULE 8.-SPIRITS, WINES, AND OTHER BEVERAGES

PAR. 801. (a) Nothing in this schedule shall be construed as in any manner limiting or restricting the provisions of Title II or III of the National Prohibition Act, as amended.

(b) The duties prescribed in Schedule 8 and imposed by Title I shall be in addition to the internal-revenue taxes imposed under existing law, or any subsequent Act.

PAR. 802. Brandy and other spirits manufactured or distilled from grain or other materials, cordials, liqueurs, arrack, absinthe, kirschwasser, ratafia, and bitters of all kinds [, except Angostura bitters,] containing spirits, and compounds and preparations of which distilled spirits are the component material of chief value and not specially provided for, $5 per proof [gallon;] gallon. [Angostura bitters, $2.60 per proof gallon.]

PAR. 803. Champagne and all other sparkling wines, $6 per gallon.

PAR. 804. Still wines, including ginger wine or ginger cordial, vermuth, and rice wine or sake, and similar beverages not specially provided for, $1.25 per gallon: Provided, That any of the foregoing articles specified in this paragraph when imported containing more than 24 per centum of alcohol shall be classed as spirits and pay duty accordingly.

PAR. 805. Ale, porter, stout, beer, and fluid malt extract, $1 per gallon; malt extract, solid or condensed, 60 per centum ad valorem.

PAR. 806. Cherry juice, prune juice, or prune wine, and all other fruit juices and fruit sirups, not specially provided for, containing less than one-half of 1 per centum of alcohol, 70 cents per gallon; containing one-half of 1 per centum or more of alcohol, 70 cents per gallon and in addition thereto $5 per proof gallon on the alcohol contained therein; grape juice, grape sirup, and other similar products of the grape, by whatever name known, containing or capable of producing less than 1 per centum of alcohol, 70 cents per gallon; containing or capable of producing more than 1 per centum of alcohol, 70 cents per gallon, and in addition thereto $5 per proof gallon on the alcohol contained therein or that can be produced therefrom.

PAR. [750] 807. Berries and fruits, of all kinds, prepared or preserved in any manner, containing [5] one-half of 1 per centum or more of alcohol shall pay in addition to the rates provided in this title $5 per proof gallon on the alcohol contained [therein:] therein. [Provided, however, That nothing in this Act shall be construed as permitting the importation of intoxicating liquor in violation of the eighteenth amendment to the Constitution, or any Act of Congress enacted in its enforcement.]

PAR. [807] 808. Ginger ale, ginger beer, lemonade, soda water, and similar beverages containing no alcohol, and beverages containing less than one-half of 1 per centum of alcohol, not specially provided for, 15 cents per gallon.

PAR. [808] 809. All mineral waters and all imitations of natural mineral waters, and all artificial mineral waters not specially provided for, 10 cents per gallon.

PAR. [809] 810. When any article provided for in this schedule is imported in bottles or jugs, duty shall be collected upon the bottles or jugs at one-third the rate provided on the bottles or jugs if imported empty or separately.

PAR. [810] 811. Each and every gauge or wine gallon of measurement shall be counted as at least one proof gallon; and the standard for determining the proof of brandy and other spirits or liquors of any kind when imported shall be the same as that which is defined in the laws relating to internal revenue. The Secretary of the Treasury, in his discretion, may authorize the ascertainment of the proof of wines, cordials, or other liquors and fruit juices by distillation or otherwise, in cases where it is impracticable to ascertain such proof by the means prescribed by existing law or regulations.

PAR. [811] 812. No lower rate or amount of duty shall be levied, collected, and paid on the articles enumerated in paragraph 802 of this schedule than that fixed by law for the description of first proof; but it shall be increased in proportion for any greater strength than the strength of first proof, and all imitations of brandy, spirits, or wines imported by any names whatever shall be subject to the highest rate of duty provided for the genuine articles respectively intended to be represented, and in no case less than $5 per proof gallon: Provided, That any brandy or other spirituous or distilled liquors imported in any sized cask, bottle, jug, or other packages of or from any country, dependency, or province under whose laws similar sized casks, bottles, jugs, or other packages of distilled spirits, wine, or other beverage put up or filled in the United States are denied entrance into such country, dependency, or province, shall be forfeited to the United States.

PAR. [812] 813. There shall be no constructive or other allowance for breakage, leakage, or damage on wines, liquors, cordials, or distilled spirits, except that when it shall appear to the collector of customs from the gauger's return, verified by an affidavit by the importer to be filed within five days after the delivery of the merchandise, that a cask or package has been broken or otherwise injured in transit from a foreign port and as a result thereof a part of its contents, amounting to 10 per centum or more of the total value of the contents of the said cask or package in its condition as exported, has been lost, allowance therefor may be made in the liquidation of the duties.

PAR. [813] 814. No wines, spirits, or other liquors or articles provided for in this schedule containing one-half of 1 per centum or more of alcohol shall be imported or permitted entry except on a permit issued therefor by the Commissioner of Internal Revenue] Prohibition, and any such wines, spirits, or other liquors or articles imported or brought into the United States without a permit shall be seized and forfeited in the same manner as for other violations of the customs laws.

PAR. [814] 815. The Secretary of the Treasury is hereby authorized and directed to make all rules and regulations necessary for the enforcement of the provisions of this schedule.

SCHEDULE 9.-COTTON MANUFACTURES

REPORT OF THE SUBCOMMITTEE

ALLEN T. TREADWAY, Chairman
CARL R. CHINDBLOM

FREDERICK M. DAVENPORT

CONDITION IN COTTON INDUSTRY

The committee has given most careful consideration to the condition in the cotton industry which has existed since the writing of the Fordney-McCumber Act. As usually happens, the representatives of the industry at that time did not think the 1922 act sufficiently met their needs. It is well known that there has been a marked decrease in the textile business in New England during the past few years. To what extent this should be ascribed to the tariff and to what extent to internal conditions is debatable ground. During this period the textile industry largely developed in some of the Southern States, so that instead of shipping the raw material from the South to New England and other sections of the country, large quantities have there been manufactured into finished goods. With differing labor conditions this has brought about internal competition, as is well recognized in the industry at the present time. In a tour of inspection which the Subcommittee on Cotton made it was clearly demonstrated that this competition was largely confined to coarse and medium grades. It is becoming more and more apparent that the cotton industry in the North will gradually turn toward the finer grades of goods. It is, therefore, not quite correct to draw the inference that what some have considered to be low rates of duty on yarn and cloth have been the cause of depression in the cotton industry in some sections of the country.

The revised cotton schedule has been written with a view to overcoming, to the extent the committee feels it can fairly do so, the competition from abroad, but the committee realizes it has no control over the condition outlined above.

When consideration is given on the floor of the House to the cotton schedule, it is proposed to have a chart on the blackboard which will show in detail every duty which will be levied under that schedule. The Members can thus visualize a very complicated schedule.

AMOUNT OF EXPORTS AND IMPORTS AND METHOD OF COUNTING

Cotton is the main textile fiber of the world and the United States leads in its production, consumption, and exportation. Raw cotton is the principal export of this country; in 1928 our exports of this material were valued at $920,000,000. The United States is also a large exporter of manufactures of cotton, particularly of cotton cloth, of which our exports in 1928 were valued at more than $76,000,000.

Imports of manufactures of cotton, although smaller than domestic exports, are substantial in quantity and value. The principal item imported under the cotton schedule is cotton cloth, of which imports in 1928 were valued at $15,360,465. The cloths here referred to are those dutiable under paragraphs 903 and 906 of the Act of 1922;