waste from marble quarries, crushed in a machine and sifted or sorted into various sizes, which does not, however, change its aspect and its nature of waste or by-product, or increase materially its value. It used to be on the free list, where it is the opinion of this chamber that it should again be placed. It is only worth at its origin $20 per ton, and affords the means of livelihood to the many poor peasants who gather it. The importation into this country ought to be facilitated in order to encourage on a wider scale its use in flooring, and thus benefit American labor. The duty levied on this article has been the cause of much controversy between importers and collectors of customs. Under the reasonable assumption that it would be free of duty, or rated at most at 10 per cent ad valorem under paragraph 463 as a waste product, it was imported, only to find that duty was assessed at the rate of 20 per cent ad valorem. A firm in Cincinnati, who later imported the same article, was assessed duty at the rate of 10 per cent ad valorem, but upon protest to the Board of General Appraisers that it should be classified under paragraph 614 as "minerals, crude, or not advanced in value or condition by refining or grinding, or by other process of manufacture," the protest was sustained by a decision of said board, rendered in July, 1907, making the entry of such article free. A month later the Treasury Department appealed for a review of the decision of the Board of General Appraisers, and upon the case being tried in the United States circuit court in Cincinnati, and not vigorously defended by the importers, a decision was rendered on August 21, 1908, in favor of the Government, making said article dutiable at 20 per cent ad valorem, under the provision of section 6 of the present tariff law, for "all articles manufactured in whole or in part, not provided for in the act." Said decision, in considering this a manufactured article, and not a waste product, as it actually is, because the crushing by machine does not change its aspect or character, or add to its value, places a construction upon the law which is further than the intention of the legislator. As there are indications that further controversy will take place regarding the classification of this article, and as the uncertainty in the assessment of duty on it acts as a deterrent to importation, this chamber recommends that this article be placed on the free list, where it was before the present tariff. Respectfully submitted. C. MARIANI, Vice-President, For the Italian Chamber of Commerce in New York. HON. CHARLES N. FOWLER, M. C., SUBMITS STATEMENT RELATIVE TO RETAINING THE PRESENT DUTY ON MARBLE. WASHINGTON, D. C., December 21, 1908. Hon. HENRY S. BOUTELL, M. C., Washington, D. C. DEAR Mr. BOUTELL: Although there was a public hearing given on marble, I want to make two or three points as a large producer and manufacturer of this commodity. I have been engaged in this business for several years, and was insistent upon an increase of the duty on blocks, while the importers were demanding a decrease. The result was a compromise upon the present duties. It is practically a question between Italian labor blasting marble from the sides of the mountain and trimming down blocks by hand on the one hand, and cutting marble out of our quarries with expensive machinery, operated at the cost of coal and high-class labor, on the other. All imported marble, generally speaking, is a luxury; and an examination of the importations proves this conclusively, as per exhibit attached. The importation of Istrian, Hauteville, Botticino, and other fancy stones by misinterpretation of the statute is to-day admitted at 12 rents per cubic foot, but come into direct competition with us in all interior work; therefore the rate should be raised to 65 cents on all these stones. The effect of lowering the rate will be to increase importation without increasing the revenue, and to that extent will be an injury to labor and capital. Since all imported marble is a luxury, this should not be done. Very truly, yours, CHARLES N. FOWLER. EXHIBIT A. The total value of marble and manufactures of marble and the duty collected thereon since 1880 are as follows: Marble imported into this country is chiefly in blocks. Most of the balance is manufactures. For the year ending June 30, 1908, 69 per cent in value was blocks and 22 per cent manufactures. In the tariff existing prior to 1883 the rate of duty on some grades of marble blocks was $1 per cubic foot and 25 per cent ad valorem additional, and on other grades 50 cents per cubic foot and 25 per cent ad valorem additional, and on manufactures 50 per cent ad valorem. The act of March 3, 1883, fixed the rate at 65 cents per cubic foot on all kinds of blocks and left the rate of 50 per cent ad valorem on manufactures. The act of October 1, 1890, made no change. The act of August 27, 1894, reduced the rate on blocks to 50 cents per cubic foot and on manufactures to 45 per cent ad valorem. The act of July 24, 1897, restored the rate of 65 cents per cubic foot and 50 per cent ad valorem on manufactures. From the above table it appears that the importation of marble was increasing up to the year ending June 30, 1883; and then, under the new act materially reducing the rate, importations fell off and continued falling until 1886. Nor was it until 1890 that they were again as large as in 1883. The importations for the year ending June 30, 1893, were the largest that had ever been, and then under the general depression in business that year they fell off the next year 37 per cent. In 1895 and 1896, under a reduced tariff, they increased slightly, but not to equal 1893. The figures for 1897 were not available when this table was made. There was some falling off in 1898 under the act of 1897 which restored the rates existing prior to 1894, but from 1898 to 1907 it increased from $600,000 to about $1,500,000. Then, under the business depression beginning November, 1907, although it only affected a part of the year, the importation fell off from $1,540,722 to $1,195,471. From the foregoing it is apparent that variations in general conditions of prosperity chiefly affect the amount of marble imported rather than changes in the rate. After the duty was lowered in 1883 marble never again produced as much revenue until 1891. Again, when the rate was lowered in 1894, marble did not again produce as much revenue until in 1899, when the marble rates had been restored. The amount of marble imported has kept pace with the increased use of marble generally, and the figures show that the duty has not restricted trade. On the other hand, they demonstrate that the revenue from the duty on marble will not be increased materially, if at all, by reducing the rate. The result of that would only be to injure American producers. THE WESTERN MARBLE COMPANY, SEATTLE, WASH., PROTESTS AGAINST REDUCTION OF DUTY ON MARBLE. SEATTLE, WASH., December 24, 1908. COMMITTEE ON WAYS AND MEANS, House of Representatives. We have had sent to us a copy of a memorial dated November 23, 1908, signed by the principal marble interests of the country, against the removal or reduction of the duty on marbles. We desire to add our name to this list and to express the opinion. that the reduction or removal of the duty would be very disastrous, if not ruinous, to the marble business of this coast. There are in Alaska extensive and valuable deposits of white, variegated, and colored marbles, from which the markets of the Pacific coast should be supplied. Development work on some of these properties has only recently been begun on a systematic and extensive scale. If there is an infant industry in the country needing protection, surely this is one, and if the producers and manufacturers of New England and the South are handicapped in their competition with Italian marble by higher wages and greater natural difficulties, the producers of Alaska marbles are at a much greater disadvantage because First. Wages are higher than anywhere else in the world in that business. Second. The cost of laying down machinery and supplies is greater. Third. The surface marble being soft, a considerable depth must be attained before it is found hard enough for commercial use, and it must be worked entirely by machinery. Fourth. The short days and excessive rainfall during the winter months retard production and add to the cost. This company is handling Alaska marbles exclusively, and the competition of Italian marbles, brought here by both steam and sail vessels, is so keen that we have difficulty in meeting it. If the duty were removed, we believe it would stop the further development of this industry. Respectfully submitted. WESTERN MARBLE COMPANY, THE ANGELS MARBLE COMPANY, VALLICITA, CAL., INDORSES MEMORIAL OF THE MARBLE PRODUCERS OF AMERICA. VALLICITA, CAL., December 24, 1908. COMMITTEE ON WAYS AND MEANS, House of Representatives, Washington, D. C. This company wishes to heartily indorse and approve the contents of letter or memorial filed with your honorable committee under date of November 23, 1908, by the marble producers of America. This company is probably the latest marble quarrier or producer in the United States, the first car of marble from the Angels quarries having been sold in San Francisco on December 15 this year. Having just passed through the period of opening up the quarries and the sawing of the first product, we therefore believe we are in position to heartily concur in every line of the memorial which has been filed with your honorable committee. We have found that the estimate of 90 per cent of the expense is directly or indirectly for labor is correct. Our employees receive from $2.50 to $6 per day. We have found that the cost of transportation of marble from our quarries to San Francisco, a distance of about 200 miles, exceeds the cost of transportation of marble from Italy to New York, Baltimore, or New Orleans. We have found in order to market the product of our quarries. successfully we will be compelled to construct a branch railroad about 15 miles in length through the mountains. This will have to be done within the next year. This road would be of great value and assist materially in the development of various resources. In this locality, nevertheless, this company would be forced to consider this expenditure very seriously if there should be a reduction in the tariff on marble. Respectfully submitted. 61318-SCHED B-09-15 ANGELS MARBLE COMPANY, Vice-President and General Manager. ONYX MARBLE. [Paragraph 114.] W. R. GUY, OF SAN DIEGO, CAL., SUGGESTS NEW CLASSIFICATION AND RATES FOR MEXICAN ONYX MARBLE. MONDAY, December 7, 1908. I have the honor to represent to the Ways and Means Committee of the House of Representatives that the present duty on onyx marble imported into the United States is $1.50 per cubic foot, and to request that in the revised law there be an amendment to paragraph 114 of the tariff act of 1897 by striking out the second clause of said paragraph, which now reads as follows: "Onyx in block, rough or squared, $1.50 per cubic foot," and insert in the new tariff act, which is now being prepared, in lieu of the second clause, the following: "Mexican onyx marble, rough or squared, 65 cents per cubic foot," for the following reasons, to wit: First. Because said merchandise is marble and not onyx, although it is called Mexican onyx marble to indicate that it comes from Mexico and because it somewhat resembles onyx in color. All the reports of expert chemists show that the merchandise mentioned above is composed of about 95 per cent of carbonate of lime, and they agree that, according to its chemical composition, it should be classified as marble, and not onyx. On this point I refer you to the testimony of the United States Government expert chemist, in the suit of Batterson v. Magone, collector, reported in 48 Federal Reports, 289, and the report of Prof. C. E. Anthony, an expert chemist, inclosed herewith. For a while after the passage of the tariff act of 1897 the collectors classified this merchandise, under the first clause of paragraph 114, as marble in block, rough and squared only, and assessed the duty thereon at 65 cents per cubic foot, which, in my judgment and in the judgment of the collector of customs at the port of San Diego, was a proper classification. But on or about September 9, 1902, the Board of United States General Appraisers informed the collector of customs here that a sample of this merchandise had been analyzed by a United States chemist who reported that, "The sample consists of carbonate of lime, and has the chemical composition of marble," and, although the United States chemist reported that this merchandise was marble, the collector of customs at New York had classified it as onyx, and to make the classification uniform, the collector here was instructed to classify this merchandise as onyx. For that reason, it has since been so classified, much to the detriment of the business of the importer, for the importer can not continue to pay $1.50 per cubic foot upon this merchandise, pay the expense of manufacturing the same in the United States, and sell the same at a profit. Second. There is no merchandise of this character found in the United States, and for that reason the importation does not come in conflict with the products found in the United States, and the tariff of 65 cents per cubic foot is ample. If the tariff on this merchandise is to continue at $1.50 per cubic foot, it will practically prohibit the importation of the same, and the Government of the United States will lose a considerable amount of money thereby. |