The twelfth district embraces the northeastern section of the State, with revenue headquarters at Scranton.

The remainder of the State, not embraced in the foregoing districts, constitutes the twenty-third district, with headquarters at Pittsburgh.

In the fiscal year ending June 30th, 1907, there were one hundred and sixteen (116) registered distilleries in the State, but fifteen (15) were not in operation. Those in operation were located as follows: In the Philadelphia district, 9; Harrisburg district, 20; Scranton disarict, 11, and the remaining 61 were in the Pittsburgh district.

About four-fifths of the distilled liquors made in Pennsylvania was produced in the twenty-third, or Pittsburgh district; but almost onehalf of the fermented liquors made in the State were produced in the first, or Philadelphia district.

The stills of Pennsylvania have a daily capacity for nearly 20,000 bushels of grain. However, the consumption in the last fiscal year was smaller, the quantity being as follows:

In addition there were used 7,920 gallons of molasses in the manufacture of rum and other liquors.

The distilled product of liquors can be roundly estimated as 41 gallons of spirits to a bushel of grain.

Attention is called to the yearly consumption of rye in Pennsylvania in the manufacture of liquors, mainly whiskey, the amount being about 300,000 bushels more rye in this State than that in any other state.

In the period above considered there were used in the United States, in the distillation of liquor, 34,211,231 bushels of grain, of all kinds, yielding a product of 154,519,516 gallons of liquor.

In the past ten years there has been an increased yearly production of distilled liquors in the United States. The aggregate product of all kinds was, in 1898, 80,762,213 gallons, showing an increase of nearly 100 per cent. within that period. But the increase in the more recent years has greatly exceeded 10 per cent. per

annum.

Pennsylvania's product of distilled liquors in the last fiscal year was, rye whiskey 10,301,395 gallons; other distilled liquors 161,659 gallons, making a total product of 10,463,054 gallons.

On the basis of taxes paid into the Treasury of the United States as internal revenues received from the manufacture of spirituous liquors in the fiscal year 1906-7, the leading states rank as follows: Illinois was first, paying more than $54,000,000 of taxes; New York was second, with over $32,000,000 of taxes; Indiana ranked third, with more than $29,000,000 of taxes; Kentucky was fourth, with over $28,000,000 of taxes; Pennsylvania was fifth, with more than $22,000,000 taxes paid; and Ohio was sixth in rank, paying about $1,000,000 less than the State of Pennsylvania. The fifth revenue district of Illinois alone paid more than any other state in the Union-the taxes collected in that district being more than $35,000,000.

In the matter of fermented liquors, the conditions were almost reversed, New York was the leading state, producing more than 13,000,000 of barrels of fermented liquors yearly; Pennsylvania stood second in rank, its product being 7,541,796 barrels of fermented liquor; the State of Illinois occupied third rank, its product of fermented liquors being about 5,000,000 barrels.

During the fiscal year ending July, 1907, there were in the State of Pennsylvania 572 establishments rated as wholesale dealers of distilled liquors, and 18,689 places where such liquors were sold in a retail way.

There were in the State, in that period, 248 brewers, and 1,099 wholesale dealers in malt liquors only. The exclusive retail dealers in malt liquors numbered but 762; and, with the 311 rectifiers of liquors, there was a total of 21,681 persons engaged as principals in the liquor traffic of the State.

THE CIGAR INDUSTRY.

The cigar industry of the State maintains its importance. In 1906* there were 4,853 cigar factories in Pennsylvania, or more than one-sixth of the number of the entire United States. About onehalf-2,281-were located in the ninth or Harrisburg district. Nearly all of these were engaged in the manufacture of large cigars -those requiring almost twenty pounds of leaf tobacco per one thousand cigars, and the yearly product of that nature was 1,923,575,754 cigars. In addition there was the product of 60,850,720 small cigars, or those weighing less than three pounds per thousand cigars.

As a maker of large cigars Pennsylvania exceeded any other state, the next in rank being New York, whose yearly product was about one-half a billion cigars less. The third producer of large cigars was Ohio, whose output was about one-third only that of Pennsylvania.

*Report of Commissioner of Internal Revenue.

New York leads the country in the manufacture of small cigars and cigarettes, producing about four times more than Pennsylvania, and outranks all other states in the value of tobacco products. But since 1900 its increase of business has been about one per cent. less than that of this State. The yearly increase of the cigar business of Pennsylvania is slightly less than five (5) per cent.

In 1905 the male labor employed in the cigar business of the State numbered 14,387, and their earnings were $6,095,798.

The female labor numbered 14,336, with earnings of $3,956,441. There were employed as children under sixteen years of age 1,597, and their pay was $226,561.

The total labor employed was 30,320, and the earnings were $10,278,800. More than $22,000,000 were required to carry on these operations, and the proprietors and firm members numbered 3,096. The material used and the expense of manufacturing amounted to $23,089,224, and the value of the manufactured products was placed at $39,079,122.

In the United States there were, in the same period, 16,396 cigar making establishments, employing 72,970 males; 57,174 females; and 5,274 children under sixteen years of age. The capital invested and used to carry on the operations amounted to the large sum of $145,135,945, Pennsylvania's proportion being more than one-seventh part of that amount.

THE PORTLAND CEMENT INDUSTRY IN PENNSYLVANIA.* Pennsylvania is richly endowed with limestone, shale and clay suitable for the manufacture of Portland Cement. These materials have been so disposed by Nature as to render them readily accessible for commercial use. Not only have these calcareous and silicious materials been abundantly distributed, but their occurrence is in close proximity to the coal measures of this and adjoining states, and it is due to these two causes, combined with conservative management, a ready market, and exceptional labor conditions, that our cement resources have been developed on so grand a scale that to Pennsylvania belongs the proud distinction of not only having a larger output than any other state, but her product is equivalent to forty per cent. of the entire output of Portland Cement manufactured in the United States.

Impressive as the foregoing statement may seem, much more so will it be when we add that only a portion of our resources has thus far contributed towards placing Pennsylvania at the head of cement manufacturing states.

*By J. W. Fuller, Jr., Fullerton, Pa.

HISTORICAL.

From the very inception of the cement industry in Pennsylvania, the well known cement rock of the Lehigh district has been the chief source of supply of raw material. This rock is an argillaceous limestone of the Trenton formation and occurs most prominently in Northampton, Lehigh, Berks, Lebanon, Dauphin, Cumberland, Franklin, Lancaster, Centre and Blair counties. The rock generally dips northwest-ward, and has been quarried to a depth of 260 feet in some places without encountering the highly magnesian Kittatinny limestone which underlies the entire cement rock formation.

Cement rock is usually dark grey in color, but is often found having a black glistening appearance. As the content of calcium carbonate increases, the color become a somewhat lighter grey, and with the change in chemical composition, a change in the physical structure asserts itself. Instead of breaking into flat slaty slabs, it shows a decided tendency to break into cubical fragments. This change both in chemical and physical properties manifests itself more strongly the lower we go in this formation, and as it approaches the Kittatinny limestone it is no longer known as cement rock but as limestone.

The percentage of calcium carbonate in cement rock varies from sixty to seventy-seven per cent. As it is the usual practice to control the raw material mixture so that it has a calcium carbonate content of about 75 per cent., it can be readily seen that in some instances it is necessary to add a high carbonate limestone to the cement rock in order that it may have the proper composition before it is calcined.

A number of plants in the Nazareth and Martins creek districts have deposits of cement rock having the correct composition for Portland Cement manufacture. The greater portion of the plants however must add a certain percentage of high carbonate limestone to their cement rock before the raw material is suitable for burning. This high carbonate limestone is either obtained from the low magnesian beds of the Kittatinny formation, or from the lower portion of the Trenton formation. Both these measures furnish an abundant supply of the purest and highest grade of limestone.

There are at present thirty-seven fully equipped Portland Cement plants in Pennsylvania. Thirty-three of these are located in the cement rock district, and inasmuch as the industry had its inception in this district, the history of Portland Cement manufactured in Pennsylvania may be said to hinge on the progressive and successful development of the resources of this district.

The first rock suitable for cement manufacture in Pennsylania was discovered in 1831 near Williamsport. At this time a canal was in

progress of construction between Muncy, Lycoming county, and Lock Haven, Clinton county, and as excavations progressed a large mass of rock was exposed which proved suitable for making cement. A small plant was built and the cement was used on the canal. In the course of about three years, however, no other market was found for the product of this plant and the project was therefore abandoned shortly afterward.

The first cement rock deposits of Pennsylvania were discovered at Siegfried in 1850 by the engineers of the Lehigh Coal and Navigation Company, who were engaged in building a canal from Easton to the company's coal lands at Mauch Chunk. Immediate advantage of this discovery was taken, and a small plant was erected for manufacturing natural cement, the entire output of the plant being utilized for canal construction purposes. Thus it will be seen that the earliest discoveries of cement materials in Pennsylvania were both due to the successful development of canal construction projects.

It was not however until 1875 that Portland Cement was successfully manufactured. After a series of experiments covering a period of about five years, Mr. D. O. Saylor produced the first commercially successful Portland Cement manufactured in the United States. These researches were conducted in his plant at Coplay, and at that time the methods of manufacture were so crude, and the cost of production so high as almost to prohibit the introduction of this material. One year after this a start was made to develop the cement resources of the western part of the State. In 1876 a small plant was erected at Wampum, Lawrence county. The materials used at this plant consist of ferriferous limestone and clay. Both these pioneer Portland Cement plants are still in operation, and their growth has been commensurate with the demand for their product. As soon as it became known that a Portland Cement could be manufactured in Pennsylvania which compared in quality with the foreign brands, immediate attention was given to developing methods which would lower the cost of manufacture, and with the introduction of the rotary kiln in 1889 by the Atlas Portland Cement Company, the Portland Cement industry was placed in a position where it could compete both in quality and price with the foreign brands which before this date had monopolized the American market. The enterprise and initiative displayed by this company in adapting the rotary kiln to cement manufacturing purposes assisted materially in establishing the Portland Cement industry on the substantial footing it now occupies, not only in Pennsylvania, but in every locality in America where Portland Cement is manufactured.