APPENDIX. SCHEDULE A-CHEMICALS, OILS, AND PAINTS. ACETIC ACID ANHYDRIDE. [Paragraph 1.] THE WARNER CHEMICAL COMPANY, WEST CHESTER, PA., STATES THAT ACETIC ANHYDRIDE HAS BEEN AND CAN BE COMMERCIALLY MADE IN THIS COUNTRY. Hon. S. R. PAYNE, WEST CHESTER, PA., January 2, 1909. Chairman Committee of Ways and Means, Washington, D. C. MY DEAR SIR: My attention has just been called to the testimony of O. T. Zinkeisen, chemical importer, New York City, before your committee in reference to duty on acetic anhydride, which under the present tariff carried a duty of 25 per cent ad valorem, but by Tariff Decision 26400 duty was assessed at 2 cents per pound. Mr. Zinkeisen states that "not a pound of acetic anhydride has ever been made in this country which was sold in the open market." In reply to this, I would state, as manager of the Chesco Chemical Company and its successor, The Warner Chemical Company, I have made and sold in the open market many tons of this chemical, and by the manufacture and sale assisted in the development of several of the industries to which reference is made. Mr. Zinkeisen further states that it is highly improbable that this chemical will be successfully made in the United States for the reason that a special chemical must be used, which is not, and probably will not, be made here for a long time to come. In reply to this I would state that all of the chemicals used by us for the manufacture of acetic anhydride were made by ourselves or others from domestic material, and it was not then and is not now necessary to import any chemicals to produce this article. After the duty was lowered we found we could not manufacture the goods in competition with the German manufacturers, so we shut down that part of our plant, and imported through Mr. Zinkiesen, from Germany, sufficient acetic anhydride to fill our orders. Certain parties are now ready to resume the manufacture of these goods if the duty is restored to the old rate, and I respectfully ask your committee to restore the rate of 25 per cent ad valorem. Respectfully, yours, T. FRANK WOODSIDE, EXHIBIT B. 141 BROADWAY, NEW YORK, June 29, 1905. DEAR SIR: We beg to advise you that we can now offer the following goods in quantities to suit the purchaser, from 1 pound to 10,000 pounds: Phosphorus, stick, selected; phosphorus trichloride, phosphorus pentachloride, phosphorus oxychloride, acetyl chloride, acetic anhydride, acetic ether, butyric ether, amyl acetate, amyl butyrate. We would be pleased to receive your inquiries for any of these goods and will take pleasure in forwarding samples and quotations. Special prices on larger contracts. Respectfully, yours, THE WARNER CHEMICAL CO., BORACIC ACID, BORAX, AND BORATES. [Paragraphs 1 and 11.] THE STERLING BORAX COMPANY, OF CALIFORNIA, SUGGESTS A FIFTY PER CENT REDUCTION IN THE DUTIES ON BORAX, BORACIC ACID, AND BORATES. Hon. SERENO E. PAYNE, CHICAGO, ILL., March 1, 1909. Chairman Committee on Ways and Means, Washington, D. C. DEAR SIR: Referring to the tariff on borax, boracic acid, and borates, I would advise that the Sterling Borax Company, of California, of which I am vice-president, considers that the duties on the above articles could be scaled down to 50 per cent of the figures in the present tariff, and that if so amended the duties would give sufficient protection for the American industry. Our company owns extensive mines in California as well as controlling factories in Chicago and New Brighton, Pa., and we are absolutely independent of any other borax company. We need a certain amount of protection against the foreign article, both from a mining as well as a manufacturing standpoint. We must bring our ores by rail across the continent, as against the South American ores, which are more easily mined and are close to the seaboard. The bulk of the European borax is manufactured from this South American ore. Furthermore, we need a measure of protection for our factories in Illinois and Pennsylvania as against the English and continental manufacturers of borax. This proposed 50 per cent reduction would then give us the following rates of duty: Borax and boracic acid.. Cents per pound.. 21 ..do.... 2 ..do.... 1 Borax containing more than 36 per cent anhydrous boracic acid. Yours, respectfully, STEPHEN T. MATHER, Vice-President Sterling Borax Company. LACTIC ACID. [Paragraph 1.] THE HELBURN CHEMICAL COMPANY, NEW YORK, FILES ADDITIONAL BRIEF FAVORING DUTY-FREE LACTIC ACID. Hon. SERENO E. PAYNE, 356 PEARL STREET, New York, January 21, 1909. Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: Referring to our letters of November 11 and 12, 1908, we beg to say that we have made further investigations in reference to this product, and herewith take the liberty to furnish you with more data and facts, which no doubt will be of interest to your honorable body and probably induce you to place lactic acid on the free list or reduce the duty on same. Referring to the bound reports of the Oil, Paint, and Drug Reporter, whose offices are located at No. 100 William street, New York City, we find that there has been exported lactic acid from the port of Boston to Liverpool and other foreign ports by the domestic manufacturers of this product, from January 5, 1905, to December 18, 1908, 1,398 barrels of lactic acid 50 per cent, at the average weight of 600 pounds net per barrel, approximating 838,800 pounds of lactic acid 50 per cent. The imports of lactic acid, beginning January 1, 1905, to October 23, 1908, were 232 barrels, average weight 500 pounds, approximating 116,000 pounds. The exports of lactic acid, as stated above, namely, 838,800 pounds, do not include the exports from New York City to Liverpool, etc., which, if added to the above-mentioned figure, would make the total quantity of lactic acid exported from this country to foreign ports in Europe at least 1,000,000 pounds during the above-mentioned period. You will therefore observe that the amount of lactic acid. exported from this country is at least eight times that which is imported from Europe to this country. It proves that the domestic manufacturers of lactic acid do not need any protection, as they compete with the foreign manufacturer in the foreign territory, and further proves that the claim which the representative of the domestic manufacturers makes, namely, that they are unable to compete with the higher grades or rather stronger grades of lactic acid, is not borne out by facts, when such quantities of the domestic lactic acid are sent abroad. In addition to the European exports of lactic acid by the domestic manufacturers an additional quantity is sent by rail to Canada, where they also compete with the foreign manufacturer of this article. We beg to add the following statement: An officer of our company, who was formerly connected in the capacity of selling agent for the domestic manufacturers, states that the cost of manufacturing lactic. acid, 22 per cent, is 14 cents per pound, which claim he bases upon his knowledge that at the time of his connection with one of these manufacturers of lactic acid they made a 28 per cent strength, the cost of which was calculated at 2 cents per pound. Since then they have reduced the strength to 22 per cent and have formed a combina 1 tion with other manufacturers of this product. They control the domestic product and no consumer of lactic acid can purchase any except direct from this combination of lactic acid interests. The output or sales of this combination is nearly 4,000,000 pounds of lactic acid per annum, which increased output, in connection with the lower strength, namely, 22 per cent, which they now manufacture, reduces cost to 1 cents per pound. Can there be any question as to whether the duty on lactic acid should be increased or decreased? Surely the course seems to point one way, namely, the latter, and in proof of our claims we urgently call your attention to the small imports against large exports. The domestic manufacturers do certainly compete with the German manufacturer, as the domestic manufacturer competes with the German manufacturer in foreign territory, as, for instance, England, where the domestic manufacturers advertise their product through their selling agent at Bradford, England, at which point the domestic product is sold and distributed over English territory; furthermore, the lactic acid shipped from this country to England is 50 per cent strength, the same which the Germans ship into England, which proves that the American manufacturers can make and concentrate a higher strength lactic acid when they feel inclined to do so. This proves that the domestic manufacturer does make a high strength of lactic acid, and contradicts the claim or assertion of their representative, that they make a lower grade, and that the foreign-made higher grade should be put on a higher rate of duty. In conclusion we claim that the domestic manufacturers offer and sell their product in Europe and Canada at a lower figure than they are selling their product to the consumers in the United States, and do compete very favorably with lactic acid manufacturers on their own or foreign territory. Will the domestic manufacturer explain to your honorable body, by opening their books, and show their large exports of lactic acid from Boston to Liverpool, or to their advertised agent in Bradford, England? We hardly think so. Trusting you will give this matter your kind attention, we are, Most respectfully, yours, HELBURN CHEMICAL COMPANY, S. SAXE, NEW YORK CITY, PRESENTS FIGURES TO SHOW THAT LACTIC ACID NEEDS NO INCREASE OF DUTY. Hon. SERENO E. PAYNE, 107 MANHATTAN AVENUE, Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: Alan A. Claflin, president of the Avery Chemical Company, of Boston, Mass., manufacturers of lactic acid; also president of the Lactic Process Company, of New York City, known as the "Lactic Acid Trust," comprising the three manufacturers of lactic acid in the United States, appeared before your committee on behalf of him self and his associates on November 11, 1908, asking for a higher duty on lactic acid, which now has a high protective duty of 3 cents per pound. Mr. Claflin is credited with saying in public recently, "That probably 90 per cent of the unwise legislative acts were caused by special interests presenting misleading facts to lawmakers." This is a most extraordinary statement coming from Mr. Claflin, in view of the very deliberate number of misstatements made by him to your committee, as published on November 11, 1908. Having been a stockholder and actively associated with the Avery Chemical Company from 1894 to 1903, developing the greatest present use of lactic acid, and again from 1904 to 1907 as stockholder, director, and secretary of the American Acid and Alkali Company, of Bradford, Pa., also manufacturers of lactic acid, therefore thoroughly conversant with the subject, from its manufacturing and selling standpoints, gives me the opportunity of laying before your committee the truthful conditions of this industry. Mr. Claflin in his evidence before your committee made very many misleading statements, particularly his fear of foreign competition, due to cost of raw material and labor here and abroad. Dwelling briefly upon the manufacture of lactic acid, will say that this product is made from any vegetable material which will ferment, such as corn, wheat, rye, or glucose, but corn has been found to be the cheapest, which is raised cheaply in our country. Damaged corn, for which there is a limited market, has been used for years by the Avery Chemical Company, for damaged grains make equally as good lactic acid and produce a cheaper article than good quality of grains. Mr. Claflin underrated the consumption just 100 per cent. As to the question of labor, it practically amounts to nothing, as the whole process is a fermenting one, and a half dozen wage-earners can produce the total amount Mr. Claflin gave you as the annual production. The point which I desire more particularly to bring to your notice is the attempt on the part of Mr. Claflin to mislead your committee into believing that the American manufacturers of lactic acid require a higher protective duty than now in force under the Dingley bill, which is 3 cents per pound. The actual cost of producing lactic acid of commerce to-day in the United States is 14 cents per pound, consequently under the Dingley Act it has a protection of 200 per cent. It is being sold at from 3 to 4 cents per pound, as per inclosed quotations taken from one of the leading tanning papers, and can not be bought outside of the lactic acid trust, which is composed of the Avery Chemical Company, of Boston, Mass.; the Harrison Brothers & Co., of Philadelphia, Pa.; and the American Acid and Alkali Company, of Bradford, Pa. Mr. Claflin deliberately stated to your committee that he fears for himself and associates the German lactic acid, and I herewith inclose you statement of imports and exports of lactic acid from 1902 to 1908, inclusive (calendar years), calling your particular attention to the very notable fact that the exports (which shows the year, dates, name of steamer, and port of destination) are all shipments solely from Boston by the Avery Chemical Company, of which Mr. Claflin is president. You will note that his company exported about four times as much as the total imports into the United States; and the figures given |