The Washington herald., 1912-09-29
Mr.. Perkins and Philippine Hemp


paign In Ohio.
Mr.. Perkins and Philippine Hemp
The United States, government, which
now. has pending suit for the dissolu-
ton of the International Harvester
Company as being an illegal combina-
ton in restraint of trade under the
Sherman antitrust law. should look
into the hemp rebates as practiced in
the archipelago and exposed by James
H. Blount, former lieutenant in the
United States Volunteers and district
Judge of the Philippine Court, who, in
| his book on "The American Occupa-
ton of the Philippines" &c, throws an
interesting and peculiar sidelight on
what he calls "the stranglehold of the
Hemp Trust on the annual output Of
Philippine hemp" by the Harvester
Trust He arraigns George w. Per-
kins as breeder of socialism-the per-
sonifcation of undue corporation infiu-
ence, who in Mr. Roosevelts campaign
of 1912 for a third term has assumed
the role of Warwick"
Mr.. Blount points out that Mr.. Per-
kins is chairman of the finance COM
mittee and one of the three voting
trustees" of the International Harvester
Company, SIoo,ooo,ooo. corporation,
which, according to its own account in
Moodys Manual, owns eighty odd sub
sidiary corporations, many of them en-
gagged in the manufacture of Irvine and
cordage, and importers of Manila hemp
and that the Hemp Trust has beaten
the market price of hemp at Manila
down to half of what it commanded
few years ago.
Under the section OF the tariff act
of 1902 (Which is also included in the
Payne law an export tax is imposed
at Manila on all hemp exported, but
hemp shipped to the United States and
used and consumed therein" is per-
mitted to be exported free. Despite this
law, an export duty. is charged on every
pound of hemp exported. Later an ex-
porter may submit proof that part OF
his exports were used and consumed
in the United States, and have that
part of his tax payments refunded or
rebated. OF course, the small farmer is
unable to follow his bale of hemp into
the markets Of the world, and show that
it was used and consumed in this coun-
try, if it was in fact so used and con-
sumed Hence only the big importers
are benefited. and the price OF hemp is
depressed through the margin afforded
by the rebate system.
The amount of this subsidy is placed
by Judge Blount as more than $1,000
ooo secured in eight years. When the
Philippine tariff act OF 1902 was passed,
it was not anticipated that the special
advantage thus offered to hemp ex-
ported to the United States would
operate in the manner in which it has
since been used through manipulation,
by a powerful group of importers OF
Manila hemp, of which the Harvester
Company and its allied interests are
the most influential
But Mr. Blount quotes from a letter
written in 1911 by the Hon. James F
Smith. formerly Governor General OF
the Philippines. now judge of the Court
of Customs Appeals in this city, III
which Gen Smith, concerning the oper-
alton of that part of the export tax act
of 1902 Continued by the Payne tariff
law of Iooo) by which American manu-
facturers are relieved from the pay
ment OF the export tax on Manila
hemp, has this to say:
In effect this amounts to the pay,
ment by the Philippine government ant
the Filipino people of large subsidy tc
American manufacturers of hemp. More
than that, this concession to the Amer.
lean manufacturer. by enabling him tc
undersell his British competitor give:
him an undue control of the situation
and has put him in a position, to some
extent, to control prices for the new
product
Mr.. Blount also quotes from lettel
written last year by the Philippin,
Chamber of Commerce at Manila tt
their delegates in Congress, making
formal complaint as to the injustice O.
the operation of the present law, anc
giving the darker side of the picture
thus:
The representatives at this Capital o
the International Harvester Compan,
are of the opinion that We will be ablt
to accomplish nothing. and theirs is al
opinion to which great weight shoulC
be attached, because the vast interest!
which that concern represents can Sc
in motion powerful influences to keel
the present law as it is, since it con
Germs their interest to do so.
We are, in fact, trustees for the Fill
pino people The Republican and tn,
Democratic platforms and the publi
utterances of President Taft and Gov
Wilson emphasize this view. But tn,
Bull Moose convention was silent OF
this subject 1t played the soft pedal
on the Philippines. True, Bull Moos,
does not eat hemp, but hemp is easil,