PARAGRAPH 650-SURGICAL INSTRUMENTS, ETC. Mr. HARRISON. You said that St. Luke's Hospital should have used last year 60,000 lemons. Dr. CLOVER. We used last year about 35,000, and if I had honored all of the requisitions that came in we would have used 60,000. Mr. HARRISON. How many patients do you have a year? I mean out-patients. Dr. CLOVER. We average about 217 out-patients per day. We averaged last year 298 in-patients per day. Lemons are not used in surgical operations. It is simply in the medical or fever cases that we use lemons, but they can be used to great advantage after operations; that is, two or three days after an operation. Mr. JAMES. What language would you suggest should be used to amend paragraph 650 in order to comply with the suggestions you have made to the committee? Dr. CLOVER. I have submitted a brief, filed a brief, which includes that language. Mr. JAMES. I did not know that you had filed a brief, and I merely wanted to get that language. It has been suggested here that you said your hospital has an average of 298 patients. Dr. CLOVER. Two hundred and ninety-eight, I think, was the daily average of in-patients. Mr. JAMES. That is the number you had in the hospital at one time? Dr. CLOVER. That is the daily average, sir. Mr. JAMES. Now, how many per year would you have there? Dr. CLOVER. Three hundred and sixty-five times that number. Mr. JAMES. I know, but some of them stay there more than a day. How many different individuals do you have in this hospital? Dr. CLOVER. Do you mean how many individuals we have in the hospital, including nurses and officers?" Mr. JAMES. No. How many different men, women, and children are in this hospital during the year? Not how many days do they stay there, but how many different persons you have in the hospital during the year? Dr. CLOVER. About 5,000 in patients. Mr. JAMES. That would make an average of about seven lemons, then, to a patient, instead of one-tenth of a lemon. Rev. GEORGE F. CLOVER, Superintendent St. Luke's Hospital, New York City. JANUARY 25, 1913. MY DEAR MR. CLOVER: I can not too heartily support the movement to bring about a reduction of duties on the price of surgical instruments in general, and especially the ones intended for hospital use. With very few exceptions the instruments that we desire to import can not be made at all in this country, being often original models. I am speaking now more particularly of the high-class surgical instruments which we obtain from France, Switzerland, one or two firms in Austria, and also in England. The great bulk of the German instruments are not any better made, in some cases worse, than those manufactured here at home. The better grade instruments I have just referred to are very costly even in Europe, and if we add to that the preposterous duties it makes their importation practically prohibitive. Moreover, the trust, which now dominates the situation in this country, relying on the strength of this situation, has by no means made the efforts to improve the quality of their work, which I am sure they would make if they were made to feel the effects of proper competition. It is more particularly with the rarer instruments which are PARAGRAPH 650—SURGICAL INSTRUMENTS, ETC. used for research work that we are at a great disadvantage, and I think this is one of the many forms of handicap that American science had had to contend with. Believe me, Yours, very truly, CHARLES L. GIBSON, M. D., Associate Professor of Surgery, Cornell University Medical College, Rev. GEORGE F. CLOVER, COLUMBIA UNIVERSITY, Superintendent St. Luke's Hospital, New York. MY DEAR MR. CLOVER: In answer to your inquiry as to the disadvantages from which the laboratory at St. Luke's Hospital suffers in not being able to import scientific instruments, apparatus, etc., without the payment of duty, I would say that we have to pay duty on all the microscopes, now numbering about 12, which we use in the laboratory. The reasons for purchasing foreign microscopes are two: (1) That certain qualities of lenses are not made at all in this country; and (2) that the microscope stands made abroad are better in many particulars than any made in the United States. They wear for a longer period and the delicate adjustments are more accurate and work more easily. For photomicrography foreign lenses must be used almost entirely. You will find evidence of this in an article in the Third Scientific Report of St. Luke's Hospital, on selecting lenses for photomicrography. It is there shown that out of the 16 lenses which form the equipment of the St. Luke's photomicrographic laboratory, only one is of American make. The vacuum pumps and high-pressure autoclaves which we use are also imported, as such apparatus is not made here. On all of these we have to pay a heavy duty. The glassware used in the laboratory is largely made by the Jena Glassworks in Germany, and on this we have to pay duty. We have to import and pay duty on large amounts of special chemicals required in scientific investigation and teaching, because these materials are not made in the United States, and we also import almost all of the bottles for holding the chemicals, paying a higher price for them than we would for bottles made in this country because of the better quality. St. Luke's also has to pay duty on the registering apparatus used in the study of cases of heart disease in the wards, because such apparatus is not made satisfactorily in this country. The advantages of duty-free importation are seen at the College of Physicians and Surgeons where there are over 200 microscopes, all of which are of foreign make, although the makers of such instruments in this country will sell microscopes at lower prices in order to meet the competition. In spite of this, however, those in charge of the laboratories have always preferred to import the instruments because the foreign makes are better. Practically all of the scientific apparatus in that institution is imported. I inclose a letter from a dealer which illustrates the extra expense to which we are put in getting apparatus which can not be bought in this country. Very sincerely, yours, F. C. WOOD. Mr. F. C. WOOD, St. Luke's Hospital, New York. THE KNY-SCHEERER Co., DEAR SIR: In reply to your letter of January 8, we note that only one Beckman apparatus was delivered to you, although our works abroad invoice us two. You are at liberty to deduct the shortage from your bill, advising us whether we shall furnish an additional apparatus with next opportunity. As regards the price on the autoclav No. 387, wish to say that the same is correct. PARAGRAPH 650-SURGICAL INSTRUMENTS, ETC. The catalogue price is 378 marks; at the rate of 24 cents per mark, amounts to. Insurance, overland and ocean freights, case, packing, and other expenses Total..... $90.72 6.80 43.88 11. 60 153.00 We hope that, after this explanation, you will accept our figure as reasonable, and remain, Respectfully, THE KNY-SCHEERER CO., Department of Laboratory Supplies. TESTIMONY OF DR. ALLERTON S. CUSHMAN. The witness was duly sworn by Mr. Rainey. I Dr. CUSHMAN. Mr. Chairman, I wish to point out a mistake in the calendar; I am down as representing the Institute of Indian Research; it should be Industrial Research; it is also stated that I am speaking for oils and greases for leather, in which I am not especially interested. I am speaking with reference to paragraph 650 of the free list, which covers the importation of instruments, philosophical and scientific apparatus, utensils, and preparations not for sale. have submitted a brief covering my contentions and opinions, but wish to take advantage of the few moments allotted to me to elaborate my arguments with reference to the subject. I present perhaps. a broader view than has been contended for by preceding witnesses, for I claim that there is no authority for considering the item purely from the viewpoint of charity. The wisdom of placing any sort of tax upon scientific, medical, or industrial research work is open to serious question. The German Government has always adopted a generous policy toward research, with the result that German science has responded by very largely increasing the national wealth. Throughout the hearings before this committee evidence of this fact has been presented, and I have especially discussed it in my accompanying brief with respect to the subject of aniline dyes. I submit that the wording of paragraph 650 has not been selected in such a manner as to indicate that the intention of the Congress, when writing paragraph 650, was exclusively a charitable intention. The fact that the right of free importation of scientific apparatus has been refused to municipal corporations which maintain laboratories for the investigation of public milk and food supplies would not seem to be a just interpretation of the paragraph as written. If the public can be protected from the ravages of typhoid fever and other contagious and infectious diseases by proper laboratory investigations, such work would appear to be worthy of the fullest support under the terms of this paragraph. I would further point out that a hospital, whether it is run as a purely charitable institution or not, is engaged in the amelioration of human suffering, is working for the general benefit, and should enjoy the benefits extended under paragraph 650 in all cases where apparatus is imported in good faith and not for sale. College laboratories are extended the benefits of free importation, while other institutions engaged in research work are denied this advantage. I have referred in my brief to the wellknown fact that at almost every college in the United States there PARAGRAPH 650-SURGICAL INSTRUMENTS, ETC. are professors and assistants working in laboratories who do outside work for clients, investigate various subjects of research, make reports, and are paid fees. Such professors, under the present system, benefit by having at hand duty-free equipment which costs their institutions perhaps one-half of what had to be paid by others with whom they may be in competition. I wish to state my belief that laboratories engaged in industrial research are doing work which operates to the good of the country at large and that the benefits accruing to the Government in income from the tax upon scientific apparatus is a very small matter in the consideration of any tariff act which is to be considered from the standpoint of revenue only. The total value of material imported into this country under paragraph 650 for the year 1912 was $570,000. Some gentlemen might be in doubt as to what public benefit could accrue, which was due principally to industrial and chemical research work. I may refer to a striking example. You have heard much testimony before your committee in regard to the importation of potash into the United States, due to the fact that heretofore potash has been a natural German monopoly. I have with me here a sample of rock that occurs in enormous quantities in the United States. In Mr. Hill's State alone there are enormous quantities of it, and it is pretty generally distributed throughout the United States. The specimen which I hold in my hand contains about 14 per cent of potash, and it is not unusual to find it running quarry-wise 10 per cent and over. This means that in a ton of 2,000 pounds, which represents about a cubic yard of the rock, there are 200 pounds of potash. This indicates that there are enormous reserves of potash locked up in the rocks in this country which only await, say, the development of a suitable process to make it available for agricultural and for other purposes. We are said to be a progressive and enterprising people, but I submit that we have up to the present time overlooked many of our opportunities, owing to the lack of public support of industrial and chemical research. If we are obliged to import material out of which foodstuff's are manufactured in the ground, we are certainly not agriculturally independent of Europe, no matter how large our crops appear in the statistical aggregates. In case of wars or embargoes in Europe, many of our valuable crops would be in jeopardy, owing to the impossibility of obtaining the necessary potash supplies. Industrial research has at least done away with this danger, for processes have been worked out at great expense which would become available if scarcity of German potashes should come about from any cause whatsoever. I wish to point out that the apparatus necessary to this and similar investigations has and is costing American investigators twice as much as their foreign competitors. There does not seem to be any reason for placing a tax on the instruments which scientific men use in laboratories in working out problems of this kind, and which are not imported for sale. I merely wish to plead for the careful consideration of this subject by your committee. Mr. PETERS. I notice that the importations under paragraph 650 increased steadily until 1911. In 1911 the importations were $590,000, whereas in 1912 they were $567,000. Has there been any 78959°-VOL 6-13--14 PARAGRAPH 650-SURGICAL INSTRUMENTS, ETC. different attitude of the Treasury Department or have there been any decisions which would tend to alter the class of goods that formerly came in free? Dr. CUSHMAN. I do not think so. Mr. PETERS. Do you know of anything that would seem to account for the falling off of these importations? Dr. CUSHMAN. It is possible that the rulings of the Treasury Department that hospitals and municipal corporations are not educational institutions within the meaning of the act have denied the right of the growth of benefits under this paragraph. The rulings of the Treasury Department have been based upon the construction of the word "solely" contained in the paragraph. I do not wish to be understood as attempting to criticize the rulings of the United States Treasury Department, whose manifest duty it is to construe the wording of the act as closely as possible. It is nevertheless difficult to understand why a hospital which is engaged in part in teaching doctors and nurses to care for the sick is not in the fullest sense of the word an educational institution. Whether it is solely so or not, the form of educational work done would appear to be quite as valuable as that carried on, for instance, by a high school which is engaged in giving young people the rudiments of their education. I think, Mr. Peters, it is quite possible that the reason there is a discrepancy of a few thousand dollars between 1911 and 1912 is because of fluctuations dependent upon appropriations and gifts which may or may not be made available for the equipment and support of college and university laboratories from year to year. The brief submitted by Dr. Cushman follows. THE INSTITUTE OF INDUSTRIAL RESEARCH, BRIEF SUBMITTED BY ALLERTON S. CUSHMAN, PRESIDENT AND DIRECTOR OF THE INSTITUTE OF INDUSTRIAL RESEARCH, WASHINGTON, D. C. The object of this brief is to present to your committee certain arguments in relation to the extension of the free-list benefits under paragraph No. 650, covering philosophical and scientific apparatus, utensils, instruments, and preparations to be used in industrial, scientific, medical, and educational research and not for sale. The wisdom of placing any sort of tax upon scientific, medical, or industrial research work is open to serious question. The German Nation and Government have always adopted a generous policy toward research, with the result that German science has responded by very largely increasing the national wealth. Throughout the hearings before this committee there has been presented abundant evidence of this fact. It has been shown, for instance, that 80 per cent of all the aniline dyes used in this country come from Germany. The first aniline dye was the discovery of an English scientist, and all of them are the product of scientific research and have been worked out by highly trained chemists in the laboratory. One of the great German aniline factories is said to employ a hundred or more research chemists. Every person in this room and every man, woman, and child in the United States contributes in part to English and German scientific research by wearing clothes colored with the products and discoveries of laboratory investigation. To a constantly increasing degree modern industry in all lines is calling upon the trained laboratory worker for aid in keeping up with the procession. The utilization of by-products and saving of industrial wastes constitutes the first chapter of the modern movement toward the conservation of natural resources, and this movement makes a growing demand upon the laboratory and upon the sort of work that is denominated under the tariff act as educational and scientific. The total value of all material imported free of duty under paragraph 650 for the fiscal year 1912 was $570,719. Of this, $566,280 came from Europe and $467,931, or about 82 per cent, from Germany alone. It is commonly accepted that the best |