Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-17
COMMITTEE HEARS
TARIFF OBJECTIONS
Wheat Proposal Would Iso-
late Cuba Trade, Says
PiIISbury.
BY the Associated Press.

BY the Associated Press.
The Senate finance committee today
heard further testimony in opposition to
the new provision in the House tariff
bill subjecting Canadian wheat, milled
In bond in this country for export to
American wheat preferential duties, to
q tariff equal to such preference.
Such wheat intended for export to
Cuba would pay a 80 per cent duty
under the new provision, or about IS
cents barrel.
PilIsbury Cites Danger.
John Pillsbury of the Pillsbury Flour
Mills Co. of Minneapolis, with plants in
Buffalo, declared the change would
mean that Cuba would buy direct from
Canada the -four 1t now purchases from
American millers. He declared there
could be no basis for opposition to the
general principle of milling in bond
among domestic millers, because not one
barrel of -four made from the Canadian
product entered domestic markets.
He commended the Canadian wheat
-four was especially desired by bakers
IN Cuba and that 1t was inpracticable
to export -four from high-protein Amer
lean wheat because such wheat could
be sold entirely In domestic markets at
prices above the world level.
Canadian Tax Feared.
Pillsbury testified that his company
was prompted to establish mills in
Buffalo to take care of its export bust
ness in Canada manufactured wheat
after a long struggle to secure the ex-
port trade in -four from American
wheat had failed. He said a threat Of
Canada placing an export tax on wheat
entering the United States for milling
in bond constantly was facing his and
other companies.
Asked by Senator Bingham, Repub-
lican, Connecticut, If his Buffalo mill
could not be moved across the border
and mill Canadian wheat with cheaper
labor, Pillsbury said 1t could, but 1t
represented an investment OF fiye or
six million dollars and II moved the
American employees would move with 1t
at their same wages.
The witness said the only American
millers favoring the change in law were
a few in the Southwest. AS an owner
himself of mills in Kansas and Okla
homa, he said the advantage in the
Cuban market these millers believe they
would get would be practically none.
Harvey Calls Restriction Unfair.
w. L. Harvey. International Milling
Co of Minneapolis, with plants in
Canada and a bonded unit at Buffalo,
contended the proposed duty on milled-
in-bond wheat would not cut off such
shipments to Cuba, but would merely
transfer the trade to Canada.
Harvey commended the amendment to
repeal the milling in bond privileges
entireiy-which is intended to be Of
fered by Senator Wheeler, Democrat,
Montana ~ would injure an American
industry and give protection to Can
ada that Canadian wheat growers had
demanded and which had been denied
by their own government.
Taking the opposite side Of the argu-
ment, E. H. Hogueland, Kansas City,
representing the Southwestern Millers'
League, Endorsed the House change, but
said it did not go far enough.
He suggested an amendment to make
the -four as we'll as wheat brought in
from Canada for export pay the same
duty as the House proposed when
shipped to a preferential tariff country.