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been one of the great producers of natural cement, and much important work has been done for years with such good cements as those made in the Cumberland, Lehigh, Louisville, and Milwaukee cement districts. These were the first cement works of the country, and an examination of the census report for 1850 shows there were 35 cement works in the United States, all making natural cement, and having a daily capacity of 14,500 barrels.

The following table shows the relation of natural and Portland cement to each other in this country and the remarkable growth in the annual output per individual cement plant as compared with the early figures of 1850:

Production and consumption of natural and Portland cement in the United States and average productive capacity of American cement mills.

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e Estimated from reported valuation at $1 per barrel, and assumed to be all natural rock cement.

d Includes imports.

e Portland, 16; natural, 63.

f Portland, 50; natural, 64.

g Portland, 56; natural, 60.

h Portland, 65; natural, 62.

These figures show that in 1850 there were 35 cement mills in the country, all making natural cement and having an average annual capacity of 14,500 barrels a year. In 1890 there were 16 Portland

cement mills of an average capacity of 21,000 barrels, and 63 natural cement mills with an average output of 98,400 barrels. In 1902 there were 65 Portland cement mills averaging 265,000 barrels, and 62 natural cement mills averaging 199,000 barrels.

From the above an excellent opportunity is afforded of comparing the relation of the natural cement industry to the Portland cement industry in this country, and, when taken in connection with the foregoing table of imports of foreign cement and manufacture of American Portland cement, give an excellent idea of how Portland cement of American manufacture is gradually taking the place of all other cements in this country.

Still more marvelous is the growth in the consumption of natural and Portland cement per capita in this country. In 1850, when construction based on scientific principles was in its early days, each citizen required an average of 6.5 pounds. Just before the civil war ahout 7.3 pounds were enough. In 1870, when things were doing well generally, 15.8 pounds were ample. In 1880, after the Northern Pacific episode, when construction was checked, the necessities of the average citizen fell to 13.9 pounds. In 1890, however, people were

realizing that permanent construction was desirable, and 50.2 pounds were required. By 1900, 89.8 pounds were necessary, and in 1902 this figure rose to the surprising total of 123.7 pounds.

In addition to the fact of this great consumption in the United States and of the fact of the decrease in imports, it is an additional source of gratification to American manufacturers to know that the imports of Portland cement to the United States during the present year 1904 are not likely to exceed 500,000 barrels, an amount just about equal to American exports of Portland cement.

The figures above practically show the condition of the trade in this country, but for purposes of comparison for those who are looking into the production of Portland cement as a world industry it may be stated that this country to-day has a producing capacity of nearly

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PER CAPITA CONSUMPTION OF NATURAL AND PORTLAND CEMENT FROM 1850 TO 1902.

30,000,000 barrels, and, according to the best figures obtainable for the year 1903, actually produced 21,000,000 barrels, all of which was used here. Germany, which is recognized as the leading world's producer, had in 1903 a capacity of 30,000,000 barrels, sold about 20,000,000of which 4,500,000 were exported-leaving the consumption of Germany about 15,000,000 barrels, as compared with the consumption of this country of 21,000,000 barrels of American manufacture and 2,500,000 barrels of imported manufacture, and about 500,000 barrels of slag cement, a total of 24,000,000 barrels. It is thus seen how fast our country is coming to the front as a great consumer of Portland cement.

In connection with all the foregoing, it may be stated that most of these important results are due to American engineers and their faith.

in the American product, and much more will be due to our own society, by reason of the care and attention it has given to the preparation of standard specifications for Portland cement. These specifications which are before our body to-day have been prepared by a joint committee, composed of representatives of the American Society for Testing Materials, American Society of Civil Engineers, American Railway Engineering and Maintenance of Way Association, and the Association of Portland Cement Manufacturers, under Prof. George F. Swain as chairman.

Needless to say, the task has been long and arduous, but it is hoped not a thankless one. It is the belief of the writer that when specifications for Portland cement have become standardized in this country, as they will certainly become through the work of our society, there will be no limit to the growth of the industry. The standardization of specifications will allow manufacturers to produce a more uniform and regular and, by the very fact of standardization, a cheaper article, and consumers will have an article of the best quality, thoroughly governed in its production, and one which will in the next period of our growth prove the cheapest and safest of building materials.

ISTHMIAN CANAL.

COMMITTEE ON INTEROCEANIC CANALS,

UNITED STATES SENATE,

Washington, D. C., Tuesday, May 1, 1906.

The committee met at 10.30 o'clock, a. m.

Present: Senators Millard (Chairman), Kittredge, Dryden, Morgan, and Simmons.

TESTIMONY OF RICHARD L. WALKER, ESQ.

Mr. WALKER was duly sworn, and testified as follows:

The CHAIRMAN. Please give your name and address, Mr. Walker. Mr. WALKER. Richard L. Walker; 52 Cambridge place, Brooklyn, N. Y.

The CHAIRMAN. And your present occupation?

Mr. WALKER. Traffic manager of the Panama Railroad Company. The CHAIRMAN. And in what way were you employed before you became traffic manager of that road?

Mr. WALKER. For a year and eight months I was manager of Downing's American Dispatch.

The CHAIRMAN. În New York?

Mr. WALKER. Yes, sir.

Senator SIMMONS. What is that? What is the business of Downing? Mr. WALKER. R. F. Downing are custom-house brokers and forwarding agents in New York, and the particular business that I had charge of was the making of through rates from points in Europe to points in the interior of the United States, by combining the transportation charges in Europe with the ocean carriage to New York or Boston or Baltimore or other ports, and the railroad rates from the coast to the interior.

The CHAIRMAN. Prior to that time what was your occupation?

Mr. WALKER. Prior to that time for twenty-three years I was with the Ocean Steamship Company, of Savannah, which is a corporation that belongs to the Central Railroad of Georgia.

The CHAIRMAN. Were you stationed then in New York?

Mr. WALKER. Yes, sir. For eight years I was the New York managing agent.

The CHAIRMAN. And now you have charge of the regular transportation of the Panama Railroad?

Mr. WALKER. Yes, sir.

The CHAIRMAN. Of the traffic on that road?

Mr. WALKER. Yes, sir.

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Senator MORGAN. Have you charge of the traffic arrangements of any other company?

Mr. WALKER. No, sir.

Senator MORGAN. How long have you been connected with the Panama Railroad?

Mr. WALKER. I am in the ninth year; eight years and a little over.
Senator MORGAN. Who was your predecessor in that office?
Mr. WALKER. John Muir.

Senator MORGAN. Had he served the company for a long time? Mr. WALKER. I think about four years. No; I think it was two years from 1895 to 1897.

The CHAIRMAN. Do you regulate the traffic on the ships, as well as the road?

Mr. WALKER. Yes, sir.

The CHAIRMAN. You have charge of both!

Mr. WALKER. Yes, sir; the whole thing.

The CHAIRMAN. Senator Morgan, you might proceed with Mr. Walker, if you are ready.

Senator MORGAN. I had supposed that one of you commercial gentlemen at the head of the table would take up these matters with Mr. Walker.

The CHAIRMAN. I do not know just exactly how to proceed in this particular case.

I had always understood that the ship business was separate from the Panama road.

Mr. WALKER. It is just one corporation-the Panama Railroad Company.

The CHAIRMAN. The ships are included in the property?

Mr. WALKER. The ships are owned by the railroad company. Senator KITTREDGE. Do you know about the cost of doing business across the Isthmus on the Panama Railway?

Mr. WALKER. Well, of course, you know my information in that is secondary. I get it through the auditors, and they give me the figures. The cost of railroad transportation on the Isthmus is about $3; $3.06, I think.

Senator KITTREDGE. That is the statement made by Secretary Taft. Mr. WALKER. Yes. I got it at that time. He asked me for it, and I hunted it up in the records.

Senator MORGAN. Three dollars a ton?

Senator KITTREDGE. Three dollars and six cents per ton. Is that right?

Mr. WALKER. Yes, sir.

Senator KITTREDGE. How does that compare with the cost of railway transportation in this country?

Mr. WALKER. Well, it is very, very high. Our equipment down there is old fashioned; small cars, small locomotives. They can not carry many tons per train. The cars have only been able to carry about 12 tons each, and then there is that franchise tax, that puts a big cost in there. I figure that out about, on an average, 67 cents a ton on the commercial freight that we handled last year.

Senator KITTREDGE. By "franchise tax" you mean the amount

Mr. WALKER. The $250,000 a year that was paid by the contract to Colombia.

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