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branch establishment, although in other lines of business complaints of 

 the condition of trade are almost unanimous. We are therefore inclined 

 to think that firms connected with the drug- and essential oil-branches have 

 been specially favoured by Fortune. The cause of the somewhat marked 

 depression which can still be felt throughout American commerce as a 

 whole is probably to be sought in careless over-confidence dating from 

 1909, in the feeling of insecurity with regard to national politics, and 

 finally in the result of the elections of November last, which formed a 

 turning-point in the development of tariff-politics. As already hinted, our 

 New York branch-house had no cause for complaint. Its sales have 

 again increased considerably during the past year and the demand in 

 each of the multifarious lines of our business shows such an equable 

 and healthy expansion that we are able to look back with entire satis- 

 faction upon the profits as well as upon the volume of the year's trading. 

 The fluctuations in prices, although partly very considerable, were unable 

 to disturb the quiet development of the demand. With the possible ex- 

 ception of the drug- and chemical-trades proper, there is probably no 

 branch of business in which the wholesome influence of the U. S. Food 

 and Drug Law has been so marked as in that of the essential oils and 

 allied articles, and this fact naturally benefits in the first place the reputable 

 members of our trade. Up to the present the Court of Customs Duties 

 has not yet given its decision in the matter of the tariff classification of 

 sweet orange oil, but business in this important article is also beginning 

 to revive and to fit itself into the abnormal conditions created by the act 

 of the Government. At a hearing held in New York in October of last 

 year, Counsel for the Government suggested that the proceedings should 

 be transferred to California on the ground that it would be possible to 

 produce there evidence from the orange growing districts justifying the 

 position taken up by the Government. As a matter of fact, however, at 

 the adjourned hearing on February 12 th it was impossible to produce 

 even a single witness or expert on the Government side who could give 

 the slightest support to the peculiar attitude taken up by the Government, 

 and the hearing ended in the case being referred back to New York, 

 without any decision being pronounced. So far no date has been fixed 

 for the further hearing and in circles concerned it is not thought that 

 any further evidence will be brought forward; in fact, it is believed that 

 the case will be dragged on with further adjournments until a final decision 

 can be given. As to how this decision will go we prefer, after our previous 

 experiences, to hazard no opinion. Our friends are able to state with 

 satisfaction that the business-prospects for the current year are excellent. 

 On no previous occasion have their contracts for delivery over the current 

 year reached such an importance as the orders booked during the closing 

 months of 1910 and the beginning of the present year. This fact not only 

 reveals the existence of a pronounced readiness to buy among all parties 



