UNITED STATES TARIFF COMMISSION REPORT TO THE PRESIDENT RUSSIAN ASBESTOS INVESTIGATION OF ALLEGED UNFAIR METHODS OF UNITED STATES TARIFF COMMISSION ROBERT L. O'BRIEN, Chairman THOMAS WALKER PAGE, Vice Chairman EDGAR B. BROSSARD JOHN LEE COULTER IRA M. ORNBURN JAMES W. COLLIER1 SIDNEY MORGAN, Secretary. Address All Communications UNITED STATES TARIFF COMMISSION WASHINGTON, D.C. 1 Qualified as Commissioner, March 28 (subsequent to completion of this investigation). II LETTER OF TRANSMITTAL UNITED STATES TARIFF COMMISSION, MY DEAR MR. PRESIDENT: I have the honor to transmit herewith the final finding of the Tariff Commission, together with the record, in an investigation conducted by the Commission for the purposes of section 337 of the Tariff Act of 1930, with respect to alleged unfair methods of competition or unfair acts in the importation or sale of asbestos produced in the Union of Soviet Socialist Republics. Pursuant to the recommendation of the Tariff Commission, you requested the Secretary of the Treasury, on April 20, 1931, to exclude from entry, except under bond, asbestos, unmanufactured, asbestos crudes, fibers, stucco, and sand and refuse containing not more than 15 percent of foreign matter, produced in the Union of Soviet Socialist Republics, pending completion of the Commission's investigation under section 337. The attached draft of a letter to the Secretary of the Treasury satisfies, in the opinion of the Commission, the essential requirements for terminating the temporaryorder of exclusion. RUSSIAN ASBESTOS In the matter of investigation of alleged unfair methods of competition or unfair acts in the importation or sale of asbestos produced in the Union of Soviet Socialist Republics. (Sec. 337, Doc. No. 1.) OPINION OF THE COMMISSION Pursuant to the provisions of section 337 of title III, part II, of the Tariff Act of 1930, the United States Tariff Commission respectfully reports to the President as follows: On December 9, 1930, the Tariff Commission received, in the prescribed form a complaint, by the Bear Canyon Asbestos Co., of Ambler, Pa., and the Regal Asbestos Mines, Inc., of New York City, owners and operators of asbestos mines in Arizona, and on March 27, 1931, an amended complaint by said corporations, alleging unfair methods of competition and unfair acts in the importation into the United States of asbestos produced in the Union of Soviet Socialist Republics and in the sale of such asbestos in the United States by the owner, importer, consignee, or agent of either, in violation of the provisions of section 337 of the Tariff Act of 1930. The respondents named in the complaints are the Amtorg Trading Corporation, of New York City, and Asbestos Limited, Inc., of New York City, with factory in Millington, N.J. The original complaint and supporting papers allege, broadly, (1) that by reason of an unlimited supply of asbestos and continual reduction of prices of asbestos imported from Russia to a level below domestic cost of production, made possible by economic conditions in Russia, the Union of Soviet Socialist Republics has caused the closing of all but one domestic asbestos mine, which is producing but little; (2) that the obvious result of this course of dealing is the elimination of all production outside of the Union of Soviet Socialist Republics, and if not stopped will create a monopoly in the Union of Soviet Socialist Republics in the mining and sale of asbestos; (3) that the purpose of these sales is to get credits in gold for carrying out the 5-year plan rather than ordinary engaging in commerce for profit; and (4) that in furtherance of such purpose Russian asbestos is offered and sold in the United States at any price that will effect sales. The amended complaint, filed on March 27, 1931, alleges specific acts of violation of section 337 in addition to those set forth in the original complaint. Upon consideration of the complaints the Commission, on March 30, 1931, instituted an investigation for the purposes of section 337 with respect to asbestos, unmanufactured, asbestos crudes, fibers, 1 |