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Jere Krischel at 09:00, 11 February 2006

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Jere Krischel at 05:18, 12 December 2005

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1128 HAWAIIAN ISLANDS.
WASHINGTON, D. 0., Monday, February 5,1894.
Subcommittee met pursuant to notice.
Present the chairman (Senator Morgan), Senators Gray, Sherman,
and Frye,
Absent, Senator Butler.
SWORN STATEMENT OF WILLIAM E. SIMPSON.
The CHAIRMAN. When did you first visit the Hawaiian Islands?
Mr. SIMPSON. I went to Honolulu on the first ship which left San
Francisco after the Presidential election, and was on the ship that
carried the news that Mr. Cleveland had been elected. This was in
1892, and I must say that I never witnessed such a public demonstration
as there was when the knowledge was given out that Mr. Cleveland
was elected. The wish had been so general that he should be
elected that of record there was not more than half a dozen wagers
that the election would be otherwise. I never saw a community so
bound up in the information which they hoped to receive, that Mr.
Cleveland would be elected.
The CHAIRMAN. Was that common to all classes, natives as well as
the white people ?
Mr. SIMPSON. Natives, Germans, English, and Americans. They told
me afterward that the oldest inhabitants never knew when the wharves
had been so well filled with people as they were upon the arrival of
that ship, expecting Mr. Cleveland's election. That impressed me as
being a very clear idea of what they wanted down there.
The CHAIRMAN. Was there any satisfactory reason stated that was
commonly accepted by this mass of people for their rejoicings at Mr.
Cleveland's election?
Mr. SIMPSON. Yes; and it was acquiesced in by all classes. The
people at that time believed that the action of the MeKinley bill in
placing sugar from all countries on the free list .and placing a bounty
of 2 cents a pound on American-grown sugar was an injustice to the
sugar-raisers who are so much Americans that it practically meant
all of them, and those who were not Americans secured their profits
from the business by their proximity to the American market. They
believed it was an injustice, for the reason that, in 1876, when the reciprocity
treaty was concluded and put into effect between the United
States and the Sandwich Islands, it had been done with the direct
purpose of augmenting the sugar interests of the Americans living in
the islands, and the best reasons that I could get for the same favor not
being shown them when the MeKinley bill was put into effect was that
the matter had been overlooked by the framers of the bill.
The CHAIRMAN. What was the purpose of your visit to Hawaii?
Mr. SIMPSON. In July, 1892, having previously been in the commission
business in Tacoma, it was brought to my attention that the bananas
raised in the Hawaiian market would find a much better market in the
Northwest if they were brought direct; that in handling the trade the
principal profits were made by the San Francisco jobbers and consumed
by the extra freight! to such an extent that they had been getting their
bananas to the Northwest from New Orleans by rail by the way of San
Francisco. In looking up the matter, and having been commissioned
by some of the business houses there to go to Honolulu and secure a
cargo of bananas, I became interested in the subject. I looked the
HAWAIIAN ISLANDS. 1129
matter up carefully, and from the investigation I had given it I came
to the conclusion that there was a splendid market for the merchants
and farmers in the Hawaiian Islands. I found that nearly all the
bananas that were raised were shipped to San Francisco and reshipped
by the Sau Francisco trader with the Hawaiian Islands. So I collected
considerable data, compiled it
The CHAIRMAN. Were your observations confined to the banana
trade?
Mr. SIMPSON. NO; confined to all lines of trade. I immediately
organized a company for the purpose of running a steamship from
Tacoma, in the State of Washington, to Honolulu. When the organization
of the company was completed the board of directors requested
me to go to Honolulu to see what arrangements couid be made for the
steamship wre hoped to place on the line. Prior to going to Honolulu
I made a tour of the principal cities of the Northwest and received
orders for 5,000 bunches of bananas per month.
The CHAIRMAN. You mean the American cities?
Mr. SIMPSON. The American cities in the Pacific northwest. That
insured us a profitable cargo coming back. I based my calculations
on the successful operations of the company with freight transportations,
paying no attention to the passenger part of it, because that was
not staple; you could not depend upon its being a regular thing. I
collected data from the various manufacturers and farmers in the Pacific
northwest, and went supplied with samples of all kinds and descriptions
ready to do business with Honolulu. When I got there I immediately
made myself known through letters of introduction from the chambers
of commerce in Tacoma and Seattle and from the governor of the State
and various others. A meeting of the chamber of commerce was
arranged, and I appeared before those gentlemen and laid the matter
before them. They thought quite favorably of it. The great trouble I
had to work against the first week was their lack of knowledge of the
Pacific northwest, but they became satisfied that they were buying goods
in a market that had originated in our country. They entered with considerably
spirit into the scheme. I established an agency with the
house of C. Prewer & Co., the oldest house doing business in the islands.
They were very enthusiastic over the matter.
The CHAIRMAN. I do not care about the present details of your business
transaction. Did you find the commercial community of Honolulu
aroused to an interest in your enterprise?
Mr. SIMPSON. Yes; and that interest was manifested in the orders
that they gave me. They gave me an order for 1,250 tons of merchandise,
consisting of oats, wheat, and barley.
The CHAIRMAN. Did you start your line in operation?
Mr. SIMPSON. NO, sir.
The CHAIRMAN. What prevented it?
Mr. SIMPSON. The revolution prevented it.
The CHAIRMAN. TO what revolution do you refer?
Mr. SIMPSON. The revolution of January 14 to 17, in Honolulu. I left
the islands on the steamer prior to the revolution. At that time there
was no intimation that any such thing would take place. For months
the Legislature had been in session. I had become well acquainted with
the leaders on both sides of the question, for the reason that I had made
application to the Legislature for a subsidy.
The CHAIRMAN. Did you succeed in getting it?
Mr. SIMPSON. Yes. The subsidy consisting of $500 per trip, mail
contract, remission of all port charges, light-house fees, free wharfage,

@@ Line 1: / Line 1: @@
 {{p|1128}}
+={{sc|Washington}}, D. C., ''Monday, February 5,1894.''=
 Subcommittee met pursuant to notice.
@@ Line 11: / Line 9: @@
 Absent, Senator Butler.
-SWORN STATEMENT OF WILLIAM E. SIMPSON.
+The {{sc|Chairman.}} When did you first visit the Hawaiian
 Islands?
-Mr. SIMPSON.  I went to Honolulu on the first ship
+Mr. {{sc|Simpson.}} I went to Honolulu on the first ship
 which left San Francisco
 after the Presidential election, and was on the ship
@@ Line 35: / Line 32: @@
 Mr. Cleveland would be elected.
-The CHAIRMAN.  Was that common to all classes, natives
+The {{sc|Chairman.}} Was that common to all classes, natives
 as well as the white
 people?
-Mr. SIMPSON.  Natives, Germans, English, and
+Mr. {{sc|Simpson.}} Natives, Germans, English, and
 Americans.  They told me
 afterward that the oldest inhabitants never knew when
@@ Line 49: / Line 46: @@
 idea of what they wanted down there.
-The CHAIRMAN.  Was there any satisfactory reason
+The {{sc|Chairman.}} Was there any satisfactory reason
 stated that was commonly
 accepted by this mass of people for their rejoicings
@@ Line 55: / Line 52: @@
 election?
-Mr. SIMPSON.  Yes; and it was acquiesced in by all
+Mr. {{sc|Simpson.}} Yes; and it was acquiesced in by all
 classes.  The people at
 that time believed that the action of the McKinley
@@ Line 81: / Line 78: @@
 had been overlooked by the framers of the bill.
-The CHAIRMAN.  What was the purpose of your visit to
+The {{sc|Chairman.}} What was the purpose of your visit to
 Hawaii?
-Mr. SIMPSON.  In July, 1892, having previously been in
+Mr. {{sc|Simpson.}} In July, 1892, having previously been in
 the commission
 business in Tacoma, it was brought to my attention
@@ Line 105: / Line 102: @@
 {{p|1129}}
 matter up carefully, and from the investigation I had
 given it I came to the
@@ Line 117: / Line 113: @@
 data, compiled it----
-The CHAIRMAN.  Were your observations confined to the
+The {{sc|Chairman.}} Were your observations confined to the
 banana trade?
-Mr. SIMPSON.  No; confined to all lines of trade.  I
+Mr. {{sc|Simpson.}} No; confined to all lines of trade.  I
 immediately organized a
 company for the purpose of running a steamship from
@@ Line 135: / Line 131: @@
 bananas per month.
-The CHAIRMAN. You mean the American cities?
+The {{sc|Chairman.}} You mean the American cities?
-Mr. SIMPSON.  The American cities in the Pacific
+Mr. {{sc|Simpson.}} The American cities in the Pacific
 northwest.  That insured us
 a profitable cargo coming back.  I based my
@@ Line 173: / Line 169: @@
 very enthusiastic over the matter.
-The CHAIRMAN.  I do not care about the present details
+The {{sc|Chairman.}} I do not care about the present details
 of your business
 transaction. Did you find the commercial community of
@@ Line 179: / Line 175: @@
 interest in your enterprise?
-Mr. SIMPSON.  Yes; and that interest was manifested in
+Mr. {{sc|Simpson.}} Yes; and that interest was manifested in
 the orders that they
 gave me. They gave me an order for 1,250 tons of
@@ Line 185: / Line 181: @@
 oats, wheat, and barley.
-The CHAIRMAN.  Did you start your line in operation?
+The {{sc|Chairman.}} Did you start your line in operation?
-Mr. SIMPSON.  No, sir.
+Mr. {{sc|Simpson.}} No, sir.
-The CHAIRMAN.  What prevented it?
+The {{sc|Chairman.}} What prevented it?
-Mr. SIMPSON. The revolution prevented it.
+Mr. {{sc|Simpson.}} The revolution prevented it.
-The CHAIRMAN.  To what revolution do you refer?
+The {{sc|Chairman.}} To what revolution do you refer?
-Mr. SIMPSON.  The revolution of January 14 to 17, in
+Mr. {{sc|Simpson.}} The revolution of January 14 to 17, in
 Honolulu.  I left the
 islands on the steamer prior to the revolution.  At
@@ Line 207: / Line 203: @@
 Legislature for a subsidy.
-The CHAIRMAN.  Did you succeed in getting it?
+The {{sc|Chairman.}} Did you succeed in getting it?
-Mr. SIMPSON.  Yes.  The subsidy consisting of $500 per
+Mr. {{sc|Simpson.}} Yes.  The subsidy consisting of $500 per
 trip, mail contract,
 remission of all port charges, light-house fees, free
 wharfage,