which is capable of being wrought and not a substance which is only fit to be thrown into the crucible to be melted up with other ingredients to produce an entirely different and distinct product.

The question remains, Is ferrochrome similar to ferromanganese? This question has been passed upon by this court in United States v. Dana (99 Fed., 433; 39 C. C. A., 590), and what is there said is applicable to the present case. The counsel for appellant have taken pains to point out numerous instances wherein the two articles differ; but it must be borne in mind that the statute does not require identity; if that were necessary the statute would have no raison d'etre. It is enough if there be a substantial similitude in any one of the particulars mentioned-material, quality, texture, or use. (Arthur v. Fox, 108 U. S., 125; 2 Sup. Ct., 371; 27 L. Ed. 675.)

Ferrochrome and ferromanganese look alike; even the experts are unable to tell them apart, and they are similar in quality and in use, notwithstanding the fact that they produce different results and are not applied at the same stage of the process of making steel. We agree with the expert for the appellee when he says:

"The steel that is made by the use of these other ferros is along the same lines as the steel produced by the use of ferromanganese. There are differences but the qualities imparted are of the same general family."

In 1906 and 1907, the Midvale Steel Company, through importers, purchased ferrotungsten, which was entered through the port of Philadelphia. With respect to these importations, the collector again levied the duty under paragraph 183 of the present tariff act. Upon the hearing of the protest, in the name of the importers, E. J. Lavino & Co., the Board of General Appraisers held that the duty should be levied under paragraph 183, notwithstanding the two previous decisions of the circuit court of appeals for the New York circuit, that ferrotungsten should be taxed under paragraph 122 as resembling ferromanganese. This case is now on appeal in the United States circuit court for the eastern district of Pennsylvania. The general ground on which the Board of General Appraisers based their action was that there was a decision in the circuit court of appeals for the third circuit (142 F. R., 731), containing a ruling contrary to that of the circuit court of appeals for the second circuit, and the importation in question having been brought into this country through the port of Philadelphia, the ruling of the circuit court of appeals of that circuit, and not the ruling of the circuit court of appeals of the second circuit, should prevail.

At the hearing before the Ways and Means Committee of the House of Representatives on November 25, 1908, it was stated by Mr. Brown, counsel appearing and speaking before the committee, that tungsten metal was the subject-matter involved in this decision referred to by the Board of General Appraisers. This is a mistake, and probably will be rectified by Mr. Brown in his brief. As a matter of fact, the subject-matter involved in that suit was a malleable and workable material composed of iron, tin, and manganese, having no tungsten whatever in it.

The situation with respect to these ferro compounds-ferrochromium, ferrotungsten, ferromolybdenum, ferrovanadium, and ferrotitanium-is that they are unenumerated articles in the present tariff; that, notwithstanding the two decisions by the circuit court of appeals in the second circuit, the Government is still, even in the port of New York, continuing to levy duty contrary to such decisions, if the statement by Mr. Brown in his argument be correct.

It is therefore eminently proper in a revision of the tariff that this uncertain condition with respect to these ferro compounds should be

eliminated and their status set forth with certainty. As stated before, the position of the Midvale Steel Company is that these ferro compounds should be admitted free of duty because they are essentially raw materials, and if the original ore from which they are obtained exists in the United States, it is of sufficient value itself without protection to compensate for its removal from the mines. The manufacture of the ferro compounds from the ore-is by a simple metallurgical method requiring but little labor, the blast furnace being used where the heat produced thereby is sufficient, and an electric furnace being employed where great heat is required to melt, as in the case of tungsten. The United States is in an exceptionally good position without protection to produce these compounds in competition with the world, having the best water power and electrical facilities of all countries in the world. As to the element of labor or facilities, this country needs no protection to enable the compounds to be manufactured in competition with foreign countries.

It is always inadvisable to tax materials which enter into the manufacture of special steels, thus increasing their cost to the buyer, or restricting their use. If a special rate, or any ad valorem rate, be placed on these materials, the price of many of which is now exceedingly high by reason of the rarity of the ores from which they are made, it will add greatly to the price of the finished steel, which has now become essential for use in the tools of modern machine shops and for other purposes. Such added cost will materially add to the cost of the product of such tools.

The industry which would be created by the manufacture of these ferro compounds would be very small, and, with an ad valorem duty, tremendously profitable, as may readily be seen with, let us say, ferrovanadium at $3,000 per ton and a 20 per cent ad valorem duty.

As stated before, the labor necessary to produce ferro compounds. from the ore is small, and the United States have as great facilities as any other country to produce them at a low cost.

It was stated at the hearing on November 25, by Mr. Brown, that if, for instance, the manufacture of ferrochromium were not protected, it might seriously jeopardize the United States in case of war, when its supply of ferrochromium might be cut off. Such an argument as this is absolutely fallacious when we recognize the fact that this country contains no, or practically no. ore from which chromium can be obtained, and must rely entirely upon foreign countries for chromium ores. Even if this industry were protected, it would be dependent upon foreign countries for its chromium ore, which could, in times of war, be as equally well cut off as ferrochromium. It would be just as easy to maintain a supply of ferrochromium for the contingency of war as it would be a supply of chromium ore for the same contingency.

It seems clear to the Midvale Steel Company that if there should be any duty put upon the importation of these ferro compounds under discussion, it should correspond to that of ferromanganese, because of the close analogy and similarity between ferromanganese and the other ferros mentioned herein. Such position has been twice sustained by the highest federal court in the second judicial circuit, and it has never been controverted in any decision of any

court.

Of course the ferro compounds are not identical with one another, nor are they all in turn identical with ferromanganese. As Judge Cox (who rendered the decision in the case referred to before, and reported in the 137 F. R., p. 770) said, on page 773, that identity was not necessary, and "if that were necessary the statute would "have no raison d'etre."

It is absolutely true that all are used as an addition to the mixture in the manufacture of steel for the purpose of improving the steel and forming special steel, and it is the real, practical, and only use of the ferro compounds under consideration.

It has been suggested that it is advisable to increase the tariff rate on special steels to thereby protect those special steels, which would enable a duty to be placed upon the ferro compounds without affecting the profits on the manufacture of the steel. The objections to this suggestion are many. In the first place, increased duties are contrary to the spirit of the times. In the second place, it is simply an attempt to cure one evil by introducing a greater evil, because it increases the cost to the consumer, not only by the increased price of the raw material entering into the manufacture of the steel, but in addition by reason of the protection given to the finished product. This is repugnant to all idea of progress and the general demand for the lowering of the tariff.

It is further contended that if the tariff upon the finished product be maintained at the present rate, the stability and certainty of the price of the raw material, so far as the tariff is concerned, should also be maintained, and maintained at a figure corresponding to that which present conditions require. To accomplish this, these ferro compounds used in the manufacture of steel for a purpose corresponding to that of ferromanganese should be taxed at a rate corresponding to that of ferromanganese, no greater and no less.

MIDVALE STEEL COMPANY.

THE AMERICAN VANADIUM COMPANY, PITTSBURG, PA., FILES A BRIEF RELATIVE TO FERROVANADIUM AND ITS USES.

PITTSBURG, PA., December 3, 1908.

Hon. SERENO E. PAYNE,
Chairman Ways and Means Committee,

Washington, D. C.

SIR: With reference to the tariff levied on importations of ferrovanadium, cupro-vanadium, alumino-vanadium, and the various vanadium alloys, on vanadium salts and oxides, and on vanadium ores and vanadiferous ores, and to the statement presented to your honorable committee by the Primos Chemical Company, Primos, Pa., a copy of which is annexed hereto, we beg to present the following facts for your consideration in determining the tariff to be fixed thereon in your recommendations to the Congress of the United States:

First. That the duty now being collected on ferrovanadium importations is 20 per cent ad valorem; the legality of such collection is now up for adjudication before the courts of the United States, owing to ambiguity on this subject in the act of July 24, 1897.

Second. That the works of the American Vanadium Company are located at Bridgeville, Allegheny County, Pa.; that American labor is used in the production of the various vanadium alloys and in the reduction of the vanadium ores and vanadiferous ores; that American capital exclusively is invested in the American Vanadium Company; that the wages and salaries paid by the American Vanadium Company are equal to if not higher than the average wages and salaries paid by other producers of vanadium alloys either in America or abroad.

Third. That the price of commercial ferrovanadium of comparable quality, and of other vanadium alloys, is lower in the United States than it is in any European country or elsewhere, due in large measure to the improved and economical methods of production devised after much scientific research and laboratory experimentation and at considerable expense by the American Vanadium Company. Fourth. That the business of producing and selling ferrovanadium and other vanadium alloys is profitable.

Fifth. The vanadium ore supply of the American Vanadium Company is derived from the mines owned by them located in Peru, South America; the work of extraction of the ore is directed by officials of the company in Peru, the ore being transported in Americanowned steamers from Callao (Peru) to New York, thence shipped by rail to Bridgeville, Pa., for reduction; such ore is in the crude condition when shipped from Peru; the cost of reduction of the ore to ferrovanadium-by skilled labor, the materials used therein being American products at Bridgeville, Pa., is three times that of the mining and transportation charges on the ore.

Sixth. The vanadium content and the extent of vanadiferous deposits located in the United States of America are of such nature as to preclude the possibility (in so far as such deposits have been discovered) of providing to the steel and iron producers of this country sufficient vanadium alloy to meet the existent demand, or to provide for the growing demands of the future.

Seventh. The imposition of a tariff on vanadium ores or vanadiferous ores would be highly injurious to our business.

Eighth. The American Vanadium Company was instrumental in exploiting vanadium for use in iron and steel, copper, brass, bronze, and aluminum, and its use in these metals is being rapidly extended, which growth will be accentuated if consumers are encouraged to believe there will be either no advance in the present market price for the vanadium alloy or a reduction thereof; prior to the development of our ore deposit and manufacturing process about 90 per cent of the vanadium alloys consumed in the United States were imported from Europe.

Ninth. Ferrovanadium is used in the production of practically all classes of wrought steel and steel castings and in cast iron, and by all processes of steel and cast-iron manufacture, the common purposes for which such vanadium steels and vanadium cast irons are employed being

(a) In wrought (or worked) steel:

(1) General forging steel, for locomotive piston rods, and piston rods for other purposes, connecting rods, crackshafts, axles, side and main rods, gears, hammer rods, bolts, gun barrels, tires, springs,

high-tensile structural material, etc. The price charged therefor by steel producers varies from 4 cents per pound to as high as 13 cents per pound for specially finished vanadium crucible steel, on which more or less rough forging work has been done.

(2) Cutter and punch and die steel, for rotary rock cutters, punches and dies, saws, edged tools, etc.; the base price charged by producers ranges from 10 to 13 cents per pound.

(3) High speed tool steel, containing from 15 to 25 per cent tungsten, from 3 to 5 per cent chromium, and about three-tenths of 1 per cent vanadium, used for cutters on lathes, planers, etc. The price charged by producers ranges from 55 cents per pound to 65 cents per pound; parenthetically it may be observed that the use of vanadium in such steel consumes a comparatively unimportant quantity of the ferrovanadium produced.

(4) Governmental" steel, for use in protective deck plate, armor plate, gun shields, torpedo tubes, projectiles, defense guns, and artillery, in which vanadium-owing to four properties it imparts, namely, scavenging, toughening, strengthening, and prevention of erosion-is either now being used, or will be used in the immediate future, in considerable quantities.

(b) In steel castings, for locomotive frames, transmission bars, drawheads, crossheads, and the multifarious other uses for which steel castings are employed, the price charged by producers is from 2 to 3 cents per pound in excess of that charged by them for steel castings not containing vanadium.

(c) In cast iron for car wheels, piston-rod bushings, cylinder-plow moldboards, water-chilled rolls for steel mills, etc.; as such castings (with exception of the rolls and plow moldboards) are made by the railways and engine builders using same, no figures as to additional price, if any, which would be charged therefor are available.

Tenth. That the addition of vanadium to steel greatly increases the static strength of the steel and imparts the highest attainable resistance to molecular disintegration arising from shock, impact, and fatigue, and as vanadium is likewise efficacious in other metals, the lower the price charged therefor the more rapidly will its use be extended and the more certain will be:

(a) The use of American-made steels, irons, bronzes, etc., by American consumers.

(b) The use of American-made steels, irons, bronzes, etc., by foreign consumers.

In brief, we have a large amount of money invested in the development of this industry, in which we are the largest producers, and believe that the best interests of all would be subserved by retaining crude vanadium ore on the free list and that ample protection would be afforded to American manufacturers by the imposition of a duty. of 20 per cent ad valorem, as suggested by the Treasury Department, as such duty would liberally cover the difference in the labor cost in producing this article in this country over the cheaper labor cost obtaining in European countries.

Yours, respectfully,

61318-SCHED C-09- -11

JAS. J. FLANNERY, President.