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been a profit to the traders in that business of about $76,000,000 in round figures.

The Chairman. If I comprehend your statement correctly the whole population of Hawaii is dependent for subsistence in every way upon the sugar crop?

Mr. Simpson. The sugar crop and the rice crop; they are the two principal crops.

The Chairman. Do they not raise cattle, hogs, and poultry?

Mr. Simpson. No; they are the most improvident people I have ever met with. I have never lived in the South, but in the West Indies and in the several countries where they have cheap labor they have utterly no idea of the value of money. I was standing on the corner talking to a contractor when a native laborer came up and asked for a position. The contractor and I were talking of the improvident character of the native Kanaka. The contractor asked him how much he wished for his work and the fellow said $50 a month. The contractor said, "Jack, I can not pay you that; I will give you $2 a week," and the Kanaka at once said, "When shall I go to work?" That is true, they have no idea or conception of the value of money.

The Chairman. You are now speaking of the very low classes?

Mr. Simpson. Of the natives.

The Chairman. They are not all that way; some of the natives are respectable people, having sense and character.

Mr. Simpson. I do not remember having met more than one or two full-blooded natives who were men of means. I do not wish to question their character, because they are the most honest people that I ever met. Of the so-called 35,000 natives in all the islands, as a matter of fact there are only about 6,000 who are full-blooded natives, the balance having a strain of various kinds of blood. Liliuokalani has a strain of negro blood, and is not a descendant of the ancient chiefs of the islands, as is generally supposed.

The Chairman. You think the mixing of the blood has improved the people?

Mr. Simpson. Yes. There are other articles which can be raised and manufactured with profit in the islands. For instance, common salt can be gathered at a very low price, and if the trade were entered into it could be sold at a very good profit.

The Chairman. There are none of the leading minerals-iron, copper, and lead?

Mr. Simpson. No; the soil is all disintegrated lava, and everything nearly requires irrigation.

Adjourned to meet on notice.

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Washington, D. C., Wednesday, February 7, 1894.

The subcommittee met pursuant to notice.

Present: The chairman (Senator Morgan) and Senators Butler, Sherman, Frye, and Senator Dolph of the full committee.

Absent: Senator Gray.

SWORN STATEMENT OF COMMANDER NICOLL LUDLOW.

The Chairman. At what time have you visited the Hawaiian Islands?

Mr. Ludlow. I have only been there once. I was commander of the Mohican. I arrived there on the 10th of February last and left there on the 1st of May.

The Chairman. What American ship did you find in port?

Mr. Ludlow. I found the Boston there. Subsequently the Alliance came in and reported. The Adams was sent down to take the place of the Mohican, and on her arrival I went north. The Mohican was Admiral Skerrett's flagship; I was his chief of staff during the time I remained there.

The Chairman. On your arrival at Honolulu, what did you find to be the condition of the community there as to quietude and regularity in the conduct of business?

Mr. Ludlow. I had never been there before, and I am not able to make any correct comparison of the affairs then with what they had been. But the people complained of hard times, as they began to do everywhere. Of course, business went on just the same; they did a good deal of talking; apparently they had not much else to do; stand around and talk on the streets and on the piazzas.

The Chairman. Were you around in the city much during the time you were there?

Mr. Ludlow. Yes; I was ashore every day. I was brought in contact with everybody in town of every position. As the admiral's chief of staff, I returned a great many calls with him, and made a great many social calls.

The Chairman. Were you at that time aware of the existence of any organization for the purpose of overturning the Provisional Government?

Mr. Ludlow. None whatever, any more than, of course, the adherents of the Queen on one side and of the Provisional Government on the other; there was some talk. There was no conspiracy or fighting, simply talk. I have been around in different parts of the world, and I thought that Honolulu was as quiet a community as you could find; everybody's doors and windows were unlocked. It was so night and day; as quiet a community as exists on the face of the earth.

The Chairman. Would you describe it as a community satisfied with the existing government?

Mr. Ludlow. The Provisional Government?

The Chairman. Yes.

Mr. Ludlow. A great many were dissatisfied with it; thought that it ought not to be there; thought that it was not the legitimate government of the islands.

The Chairman. Were they satisfied with the administration of the affairs of the Government?

Mr. Ludlow. Oh, yes; I heard nothing said about their honesty and proper administration of the affairs of the Government; never heard