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PARAGRAPH 266–OIL SEEDS.
or 240 pounds per ton, value of oil about $13.20, and about 86 per cent or 1,720 pounds of oil cake, value $25.80. (There are no other by-products.) The values stated are based on the ruling prices in Seattle and San Francisco (January 1, 1913).
The proposed duty of one-fourth cent per pound on soya bean oil, or less than 2 cents per gallon, amounting to only 60 cents per ton of beans crushed, is insufficient protection against oriental competition, unless the cake is also taxed. The resultant value of the oil from most all other oil seeds crushed is about from 50 to 80 per cent of the total value of the outturn.
We would suggest that the tariff be so changed as to make it possible to crush in this country not only soya beans and peanuts, but also sesame seeds, palm kernels, and China wood oil seed or nuts (Aleurites fordii and Aleurites cordata).
The ever increasing uses for foreign oils in this country demand that oils and oil seeds receive careful consideration, and we earnestly hope the required changes indicated will be made. We are sure the best interest of the country demands it. Very respectfully, yours,
BRIEF OF SPENCER KELLOGG & SONS, BUFFALO, N. Y.
BUFFALO, N. Y., January 4, 1913. Mr. Oscar W. UNDERWOOD, Chairman Ways and Means Committee,
House of Representatives, Washington, D. C. DEAR SIR: We respectfully request that the following communication be made a part of the hearings of your committee of the proposed changes in the chemical schedule and the agricultural schedule of the present tariff law:
LINSEED OIL AND LINSEED (FLAXSEED).
There are five points we wish to make.
(1) Trust.-Although stated to be so by at least one Member of Congress, there is no “trust" in the linseed-oil business. The American Linseed Co. probably handles about one-third of the business in this country, which is conducted upon a very competitive basis.
(2) Profits.--These have not been large in this line; in fact, quite the contrary, as shown by the published reports of the above-mentioned company, showing that they have not paid a dividend since 1900, and since then have only accumulated a surplus of $768,000, showing a loss during their last fiscal year of $478,000.
(3) Tarif on linseed and linseed oil should be adjusted at the same time and upon the same basis, for the one is the raw material of the other. One cent per gallon change in oil is equal to 25 cents per bushel change in seed.
(4) Drawback.-- We urge the retention of the drawback system, for it allows us at certain times to import foreign seed and to sell abroad both oil and oil cake made from this seed.
(5) Present duty on linseed should be maintained.—Consequently the present duty on oil for the purpose of giving all possible encouragement to our farmers to raise this crop. The paint trade, varnish maker, linoleum manufacturers, and other interests affected, as well as the linseed crushers, have during the past few years annually raised a fund of thousands of dollars to educate and to encourage our farmers to make a success of this crop.
Last year and the year before, owing to the poor linseed crops in this country, linseed oil was imported in large quantities and the duty of 15 cents per gallon paid, showing conclusively that at such times the business is on a competitive basis with European mills and that our farmers, because of the duty of 25 cents per bushel, receive a higher price for their linseed to compensate for the smaller yield per acre. Very respectfully submitted.
SPENCER KELLOGG & Sons (INC.).
JANUARY 2, 1913. OSCAR W. UNDERWOOD,
Chairman Ways and Means Committee, Washington. DEAR SIR: We respectfully request that the following communication be made a part of the hearings by your committee of the proposed changes in the Schedules A and G of the present tariff law.
PARAGRAPH 266-OIL SEEDS.
During the past two years we have been investigating the crushing in the United States of various oil seeds, nuts, and beans grown in foreign countries, with the idea of competing with Europe and the United Kingdom, each of which is now extensively engaged in this branch of manufacture and is exporting the oil to this country in great quantities.
In our investigations we have discovered that, although none of the raw materials, with the exception of peanuts, is grown in the United States, there is under the present tariff law either a sufficiently heavy duty imposed upon these raw materials and a proportionately low duty on the resultant oil as to render economic manufacture in ihe United States a practical impossibility, due to the necessity of importing a dutiable raw material and manufacturing a duty-free product in competition with Europe, where the raw material is imported duty free. Or there is no duty on either raw material or oil, which makes it impossible to compete with Europe, owing to their cheap freight rates on raw materials, their cheap labor, and their ready market for the by-products (oil cake), almost none of which can be marketed in this country. This condition results in American consumers being forced to buy foreign oils through importers and brokers on foreign terms, paying higher prices than necessary and having little recourse in the case of inferior quality.
We believe that the oils enumerated below can be manufactured in this country with the same success that they are now manufactured in foreign countries, and that the result will be the starting in the United States of industries hitherto untried, with the further result of better and cheaper oil to the consumer.
Let us repeat that none of these oil seeds or nuts are grown in this country, with the exception of peanuts, which article is treated separately in the detailed explanation below. Therefore there can be no injustice done the American farmer by lowering the duty on the materials enumerated below and allowing their crushing in this country.
Some of the materials the crushing of which we have investigated are not specifically provided for in the tariff act, thus bringing them under the n. s. p. f. clause for oil seeds, or 25 cents per bushel of 56 pounds.
As this branch of manufacture has been neglected in this country up to this time, we feel that this chemical schedule of the Payne-Aldrich tariff act has become obsolete, and that it should be changed in order to allow manufacturers to build up new oil industries in this country similar to those abroad. There has been during the last 10 years a tremendous growth in the oil-seed crushing industry in Marseille, Rotterdam, and other centers of Europe, most of which growth has been occasioned by the increased demand for oil in the United States. It is our hope that if the schedule is changed the United States may be enabled to retain this large business, and thereby improve the condition of both the manufacturer and the consumer.
We have given this matter much study, and we respectfully submit to your committee the request that the following be the rates of duty on the following materials. We have given in this schedule a detailed description of each seed, its resultant oil, with the present and suggested duty; a record of the imports into the United States from September 1, 1911, to September 1, 1912, of each oil, and following this data a condensed paragraph giving materials and the suggested duties:
Shea nuts: Present duty, n. 8. p. f.; suggested duty, free.
This nut is a native of India and is not grown in the United States. It is inedible. The oil when refined is used for edible purposes and when raw for soap-making purposes. This oil was classed under "all other oils” in the import record.
Soya beans: Present duty, n. 8. p. f.; suggested duty, free.
A native of Manchuria. Inedible. Not grown in the United States. Oil used for paint purposes and for soap making. Imports during 1912, 26,230,061 pounds.
Mowra seed: Present duty, n. s. p. f.; suggested duty, free. Mowra oil: Present duty, n. s. p. f.; suggested duty, 2 cents per pound. This seed is a native of India. Înedible. Not grown in the United States. Resembles the peanut. Oil used for soap and when refined for edible fats. No imports during 1912.
Niger seed: Present duty, n. 8. p. f.; suggested duty, free.
Native of India. Not grown in the United States. Inedible. Oil used for soap and when refined for edible purposes. Classed under “all other oils” in imports.
Sesame seed: Present duty, 25 cents per bushel; suggested duty, free.
PARAGRAPH 269–VEGETABLES N. S. P. F.
Native of India. Not grown in the United States. Oil used for soap and edible purposes. Imports during 1912, —; classed under "all other oils."
Palm kernels: Present duty, free; suggested duty, free. Palm-kernel oil: Present duty, free; suggested duty, 2 cents per pound: Native of Africa and South America. Not grown in the United States. Inedible. Oil used for soap and when refined used for edible purposes. Oil imports during 1912, 29,232,889 pounds.
Peanuts, groundnuts: Present duty, shelled, 1 cent per pound; unshelled, onehalf cent per pound; suggested duty, free.
Peanut oil: Present duty, free; suggested duty, 2 cents per pound.
Native of Africa. Oil used for edible purposes. Imports during 1912, 6,878,237 pounds.
Peanuts are grown in some of the Southern States, but are almost entirely exported to France or used here for roasting or eating. These are of superior quality to the African nuts and are in consequence used for edible purposes and command a premium and are not crushed. The African peanuts, on the other hand, are used entirely for crushing purposes and do not, therefore, compete with the American peanuts. The American nut is grown in quantities insufficient even to supply the demand for a roasting peanut. We will suggest that the words “for crushing purposes only” be inserted in the new schedule as applying to peanuts.
Candlenuts: Present duty, free; suggested duty, free.
Free list: Shea nuts, soya beans, mowra seeds, niger seeds, sesame seed, palm kernels, ground or peanuts for crushing purposes only, candle nuts.
Duty, 2 cents per pound: Shea nut oil, soya bean oil, mowra oil, niger oil, sesame oil, palm-kernel oil, peanut or groundnut oil, candlenut oil.
In conclusion, may we express the hope that our requests will be granted and the chemical schedule changed according to our suggestions. Should this be done, we are sure that great benefit will result to both the American manufacturer and the American consumer. Very respectfully, yours,
SPENCER KELLOGG & SONS (Inc.).
Straw, one dollar and fifty cents per ton. For straw, see John P. Donovan, page 2757. PARAGRAPH 268.
Teazels, thirty per centum ad valorem. PARAGRAPH 269.
Vegetables in their natural state, not specially provided for in this section, twenty-five per centum ad valorem. For vegetables, etc., see also James W. Nye, page 2751, and brief of Charles Hudson and James W. Nye, page 2812.
VEGETABLES N. S. P. F.
TESTIMONY OF J. C. CHASE, OF JACKSONVILLE, FLA.
Mr. CHASE. I presume the gentleman who has just spoken was changed on the list with me.
The CHAIRMAN. Were you not called last night?
Mr. CHASE. Yes, sir; but I did not file the statement I had here on vegetables for the east coast growers. I was called only on vege tables. I should like an opportunity to put that in.
The Chairman. We will give you an opportunity to file your brief. . You may file it now, if you wish.
PARAGRAPH 269–VEGETABLES N. S. P. F.
Mr. CHASE. I should like to make a few remarks in connection with vegetables.
The CHAIRMAN. The committee adjourned last night late, and in making up the list some names were printed of persons who were given a hearing last night.
Mr. CHASE. It will only take two or three minutes, and then I shall be through. I wish to return home just as soon as I can.
The CHAIRMAN. If you will limit it to two minutes, I will compromise with you on that.
Mr. CHASE. I do not think it will take over that.
The CHAIRMAN. All right, you may proceed. You were sworn last night?
Mr. CHASE. Yes, sir; that lasts over, does it? This is referring to Schedule G, paragraph 269, covering vegetables in their natural state, taking an ad valorem duty of 25 per cent. This classification covers tomatoes, okra, peppers, packed in what are known as six-basket carrier crates, and eggplant in crates, and they are all admitted into this country under customshouse valuations that are too low, and deprive the Government of revenue, as follows: New York, January 18, 1912, the customshouse valuation per package on tomatoes was 75 cents a crate; on eggplant, $1.10; on peppers, $1.25; and on okra, $1.10. The weights per package in pounds were: Tomatoes, 45; eggplant, 50; peppers, 25; and okra, 25 pounds. Now, these valuations are made at the point of entry. The tomatoes very often are not consumed there, but they are reshipped to Kansas City, to Chicago, and to other remote Western markets, where the valuation is $3 or $4 per crate. The value at the port of entry, say at New Orleans, for instance, would be 50 or 60 cents. That is, their market at that point, and these tomatoes come in there on that valuation.
Mr. Hill. From where?
Mr. CHASE. From Cuba; they come in at that valuation; they are loaded into cars and shipped all over the country, and really the price should be $1.50, or $2, or $3 per crate or more, depending on the season of the year, so that it is an unfair valuation as far as Florida is concerned, because you can very readily see they can go over to Cuba and they can be shipped from Cuba into this country, get the valuation at the customhouse, a valuation which will deprive this Government of a revenue on the actual value of the tomatoeswhich is where they are disposed of. In fact, they are sold in Cuba at possibly a higher price than at the port of entry, and reshipped. Now, take a valuation of 75 cents, with duty at 25 per cent ad valorem, less the reciprocal clause, makes it 20 per cent, which is equal to 15 cents a crate. The price of those tomatoes is about $3, and on that basis they ought to pay the Government 60 cents per crate even, very often, at the port of entry.
The CHAIRMAN. Your time is up, and if you wish you may file your brief. Mr. CHASE. All right, it is only a memorandum, but I will do so.
WASHINGTON, D. C., January 21, 1913. To the honorable COMMITTEE ON WAYS AND MEANS.
GENTLEMEN: Referring to Schedule G, paragraph 269, covering vegetables in their natural state taking an ad valorem duty of 25 per cent. This classification covers tomatoes, okra, and peppers packed in what are known as six-basket carrier crates,
PARAGRAPH 269–VEGETABLES N. S. P. F. and eggplant in crates, and are admitted into this country under customhouse val. uations that are too low and deprive the Government of revenue, as follows:
These valuations are far below actual market selling prices at time of entry and duty should be assessed and collected on specific weights at not less than 1 cent per pound. The bulk of these vegetables come from Cuba and duty is subject to benefits of the 20 per cent reciprocal clause.
We therefore petition that the above-mentioned vegetables be taken out of above paragraph and have a specific duty per pound, thereby increasing Government's Respectfully submitted.
EAST COAST VEGETABLE GROWERS' ASSOCIATION,
Comparative statement showing freight rates on tomatoes from Cuba and Miami, Fla., to
New York City. Habana to New York:
Cents Freight (45 pounds, at 50 cents per hundredweight).
221 Plus 5 per cent...
li Lighterage (Habana).
Schedule G, paragraphs 269 and 571. The undersigned respectfully state that they represent the Mexican Import Co. of Chicago, an Illinois corporation engaged in importing tomatoes and cantaloupes in carload lots from Mexico into the United States and distributing and selling the same throughout this country.
We recommend a change in the tariff by the omission of paragraph 269, and by the insertion in paragraph 571 of the free list of the words "and vegetables."
Section 269 of the tariff act of 1909 follows:
"SEC. 269. Vegetables in their natural state, not specially provided for in this section, 25 per cent ad valorem."
We recommend that that section be abolished. Section 571 of the free list as amended would read as follows: “Sec. 571. Fruits, vegetables, or berries, green, ripe, or dried," and fruits or vegetables in brine, not specially provided for in this section.
All other vegetables in their natural state.
Our reasons for recommending the foregoing changes are as follows:
First. The tariff on fresh vegetables is not a necessary or even important source of revenue for the Federal Government.