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PARAGRAPH 295-SALT.

at a materially lower transportation charge than we have to pay the railroads for transporting it several hundred miles to these same points.

Fourth. Foreign coarse salt has an advantage in cost and freight of at least $1.50 per ton or 74 cents per 100 pounds at all of our coast points.

Fifth. That a material reduction in the duty on salt would work great hardehips upon all of the salt producers located in States bordering on the Atlantic Ocean or the Gulf of Mexico and would in no way benefit the public. Respectfully submitted.

STERLING SALT Co.,

By EDWARD W. BROWN, Vice President. 29 BROADWAY, NEW YORK, January 17, 1913.

BRIEF PRESENTED ON BEHALF OF THE MANUFACTURERS

OF SOLAR SALT, IN THE COUNTY OF ONONDAGA, N. Y.

The COMMITTEE ON WAYS AND MEANS,

House of Representatives. GENTLEMEN: The manufacture of solar salt in the county of Onondaga is one of the older industries of the State of New York. The process of manufacture, as here conducted, consists of the pumping of the salt brine from the earth, when it is conducted through pipe lines to shallow wooden rooms or vats, where, as the salt precipitates, it is cultivated and, upon a crop being deposited, drawn to storehouses, screened, and graded, it then being ready for shipment. The salt fields or yards are located adjacent to and partly within the city of Syracuse and cover considerable territory. The vats or rooms are covered with movable wooden covers. The extent of the yards and the nature of the material necessary for the evaporation of the salt necessarily entails considerable expenses in their upkeep, amounting in an average year of production to about 30 cents per ton of the salt manufactured. Labor (unskilled) is paid $1.75 per day, and the labor cost, depending upon the production, amounts to from $1.55 to $1.67 per ton of 2,000 pounds of the salt manufactured. There is a fixed charge of 35.71 cents per ton of 2,000 pounds for furnishing and distributing the salt brine paid to pipe-line companies. The drawing in and other teaming amounts to from 18 to 22 cents per ton. The other expenses incident to the business hardware, supplies, taxes, insurance, and selling expenses-bring the cost per ton (of 2,000 pounds) to about $2.80.

Solar salt is sold mainly in the East, one of the principal markets being New York City. Freights by canal from Syracuse to New York are from $1.10 to $1.20 per ton and by rail, $2 per ton. Rail to Boston, $2.60 per ton, and corresponding rates to other eastern and southern points. Thus a ton of salt laid down in New York City would cost the manufacturer, if by water, from $3.90 to $4 per ton, and if by rail, $4.80 per ton, and $5.40 per ton laid down in Boston. Like other bulky products, the question of the storage of salt enters into the question of shipments, hence about 75 per cent of the product is shipped by rail. Canal shipments are limited to from May to November.

The foreign imported salt, with which we compete, is produced in the West Indies and in the countries bordering upon the Mediterranean, and is made almost entirely from sea water, and hy lahor paid about one-third the prices paid by us. It is made directly upon the sea coast, hence there is no expense for shipment by rail. Such saltthe imported solar-is delivered in New York, Boston, and other coast cities, at from $2.75 to $3 per ton (2,000 pounds), duty unpaid. Adding the duty of 6 cents per hundred pounds, or $1.20 per net ton, would make the imported salt cost the importer from $3.95 to $4.20 per ton. Salt if imported in bulk, which is mainly brought in by sailing vessels, must necessarily be in considerable quantities at each shipment; hence the storage facilities to which we have referred give the local manufacturers a slight advantage, in their being able to ship in carload lots.

It will thus be readily perceived that the manufacturers of solar salt could not compete with the foreign manufacturers without the protection of the duty of 6 cents

hundred pounds. Again the western-bound rates, both by canal and rail, are Pests could send their salt considerable distances inland and sell the same for less than the cost of production to the producers of this country.

Solar salt is used in the manufacture of chemicals, packing and preserving meats, curing hides, the making and packing of ice cream, melting snow, dissolved and

PARAGRAPH 295-SALT.

used for pickle, and for other purposes. When used for any such purposes its relative cost is so small that it does not enter into the price of the product paid by the ultimate consumer. There is produced in the United States (in upward of 15 States) annually about 6,000,000,000 pounds of salt of all kinds and for all purposes. The annual consumption of salt for all purposes is about 70 pounds per capita, and for domestic purposes alone, between 13 and 15 pounds per capita. So that the cost of salt to the ultimate consumer, based upon the manufacturer's price of about $3 per ton, is an exceedingly small item. And even should the ultimate consumer reap the benefit of the amount of the duty, which he would not in any event, the amount based upon domestic consumption would be less than 1 cent per capita per annum. Appreciating the fact that even should the duty upon salt be removed, they would not be benefited thereby, it will be found that there is no demand upon the part of the users of salt for the removal or reduction of the duty. The demand, if any, will come from the importer and the representatives of the foreign producers.

Salt for domestic purposes must be put up in packages. These packages, bags, and barrels, and the packing, form a considerable element of cost. For instance, a bushel of salt (56 pounds), worth about 8 cents at manufacturers' prices, costs for bagging and packing about 6 cents. And a barrel to contain 5 bushels of salt (280 pounds), worth at manufacturers' prices about 40 cents, costs about 33 cents. These, together with the expense of transportation, including draying, handling, storing, insurance, commissions, and as well the profits of the wholesale and retail dealer, enter so largely into the cost to the ultimate consumer that the price of the salt itself forms but a very small element. A reduction of the price of salt of 40 cents per ton, or even less, by a remission or reduction of the duty, would drive from the market the manufacturers of this county, compel them to cease business, and the immediate benefit to the consumer (or rather the dealer) would be less than 1 cent per capita per annum, with the strong probability that upon our being driven from the markets, the price of the foreign article would be materially increased. The nature of the erections for the conduct of the manufacture of salt are such that the discontinuance of the business for even one year would render them entirely useless for such purpose. Taking off the duty of $1.20 per ton would by no means bring about the reduction of the prices of salt to that amount, unless it would be necessary for the importers to do so to obtain er ire control of the markets. The prices would be reduced (temporarily) only to the extent necessary to control the markets.

It must be evident by reason of the prices of salt now prevailing that there is now here in the United States great competition among the manufacturers of salt. Such is the fact. Solar salt competes directly with both the mined and fine salt, both of which are used for the same purposes as the solar salt. The amount of salt produced in Onondaga County, about 70,000 net tons per annum, while not large in comparison with the total Nation's production, has in times past and now does form a considerable element in the maintenance of the present low prices. With the vast deposits of salt throughout the country, distributed over the various sections, North, South, East, and West, there never can be a monopoly.

To place salt on the free list, or to even reduce the duty upon it, would mean the extinction of the business of its manufacture in this county, with consequent loss of employment by numerous people directly engaged in the industry, and as well the loss of a market for the various materials and appliances used in the business. In addition rendering valueless the extensive salt plants and erections, and exterminating an industry maintained for over a hundred years, one that has contributed much, not only to the material prosperity of the city of Syracuse, but to the State of New York. We therefore respectfully request that the present duty upon salt be maintained. Respectfully,

W. G. Cady,

Manufacturer of Solar Salt,

609 West Onondaga Street, Syracuse, N. Y. (For the solar salt manufacturers of the county of Onondaga, N. Y.) SYRACUSE, N. Y., January 18, 1913.

PARAGRAPH 295–SALT.

BRIEF OF THE WADSWORTH SALT CO., WADSWORTH, OHIO.

WASHINGTON, D. C., January 11, 1913. Hon. Oscar W. UNDERWOOD, Chairman of the Committee on Ways and Means,

House of Representatives. DEAR SIR: I am inclosing herewith a letter from the manager of the Wadsworth Salt Co., and I most respectfully request that you give the same the careful consideration that the subject matter would seem to warrant. Very respectfully,

Paul HOWLAND.

THE WADSWORTH SALT Co.,

Wadsworth, Ohio, January 9, 1913. Hon. Paul HOWLAND, Washington, D. C.

DEAR SIR: If you should be able to give any time to the matter of the duty on salt, which no doubt will be up before the Committee on Ways and Means this winter, the writer begs to direct your attention to few conditions which exist, in the salt industry in general, which we would like to have you get before the committee in question, so that it will be at least a matter of record on this subject, and which we trust you will be able to have them give a little time or have examiners make personal examination and give them report of such findings.

First. Salt (sodium chloride) is absolutely neccesary to support animal life.

Second. On account of the natural chemical affinity between salt (sodium chloride) and all forms of iron or steel, the resulting natural depreciation to the buildings and machinery in the salt industry is one of the greatest of any of the many industries of this country, making a very high repair and maintenance cost; the salt plants of this country are to-day an actual proof that this heavy upkeep charge can not be met from the revenue received from the sale of the product of these plants. The proof of this statement is a personal inspection of the plants themselves and a note made of the actual conditions.

Third. That salt is being made and sold to-day by the maker at a price too low to make proper returns to the stockholders and to keep the plants in proper repair, to wit, a 280-pound barrel of salt, packed in hardwood barrels, 173-inch head by 287-inch stave, is sold by the maker at 85 cents per barrel f. o. b. cars, makers' plant; the barrel used in packing this salt can not be made for less than 40 cents, being quoted on the Minneapolis market at 44 cents each; this leaves 45 cents for the salt, or less than $3.25 per ton for the salt maker.

Or this same grade of salt is packed in 100-pound light weight-striped sewed seam grain bags and is sold at 22 cents per bag f. o. b. cars. These bags in large purchases cost from 6 to 7 cents each, depending on the cotton market at time of purchase. This leaves less than $3.25 per ton for the salt maker.

Packing in barrels and bags of the above-named sizes is the chief style of packing for the American farmer; for town and city buyers the salt is dried and screened and packed in either paper cartons or cotton muslin sacks from 14 to 14 pounds each. The averag? style package is either a 4 or a 5 pound sack, where the freight charges are low, or a 3-pound sack where the freight rates are high, both or all of which are to retail to the buyer over the counter of the retail dealer at a nickel. Take, for example, a barrel of 74 pound sacks: the salt maker receives $1.75 for this style package, or 24 cents per sack, while in a barrel of 100 three-pound sacks the salt maker receives $1.90, or 19 cents per sack.

In 'all candor, what the salt industry needs to-day, on account of its importance to human life, is some sort of Government control or guardianship, whereby an industry of such importance should be kept on a basis which would pay a fair return to the money necessary to build and maintain salt plants and keep the price as low to the consumer as such a condition would warrant, thus working no hårdship on the consumer and giving the stockholder a fair return for his investment in the industry. The industry needs assistance and attention beyond any question or argument, but such attention and assistance should be something different than a suggested lowering of the rate of duty on foreign salt which is being worked by a party of importers who have no investment in the American salt industry and who have used every effort to keep the American salt industry at such a level that will not allow the American salt maker any other policy but to trade a new dollar for an old one.

PARAGRAPH 296–POTATO STARCH,

Other Governments have the salt industry pay a part or portion of the expenses of their governments, but in doing so the consumer is asked to pay a price on the salt used to keep the plants in condition for daily service and repair. We feel that the zalt industry of this country needs a Congress to pick it up and put it on such a level that is in keeping with the importance of the product. I trust that I may have your assistance in this matter. Yours, very truly,

F. W. BOYER, Manager- Treasurer the Wadsworth Salt Co.

PARAGRAPH 296.

Starch, made from potatoes, one and one-half cents per pound; all other starch, including all preparations, from whatever substance produced, fit for use as starch, one cent per pound.

POTATO STARCH.

TESTIMONY OF JOSEPH MORNINGSTAR, OF NEW YORK, N. Y.

Mr. Morningstar was sworn by the chairman.

Mr. MORNINGSTAR. Mr. Chairman and members of the Committee on Ways and Means, it has always been our contention that the consumers of this country are entitled to the free entry of all starches from whatever base. Starches, though falling under the category of manufactured merchandise, enter into most industries as raw material.

The cornstarch industry in this country, with its unlimited supply of corn, is well able, without a protective duty, to hold its own against all foreign invasion.

The potato-starch industry in this country, after decades in which it enjoyed abnormal protection, is hardly more advanced than when it first started, and the consumers of potato starch are now obliged to pay an exorbitant duty of 14 cents per pound on all such foreign potato starch as is being consumed in this country, with benefit to no one excepting a few primitive starch manufacturers.

If there is to be a duty at all on starches, we certainly do not think that the products made under the auspices of coolie labor in the Far East, such as tapioca, cassava, and sago, should have free entry into this country when the starches of the sturdy German and Dutch farmers are taxed 1} cents per pound. Tapioca and cassava flour and starches, as also sago, should be taxed equally with all other starches coming into this country.

It should be borne in mind that the labor entering into this manufacture of starch is but a very small percentage of its cost.

All dextrines imported are now paying the excessive duty of 1} cents per pound. There is a big group of industries in this country which must have potato dextrine, and since there is no potato-dextrine industry in this country, for the obvious reason that there is no free material from whence to make potato dextrine, it is both unreasonable and unjust to exact 1} cents per pound on something which has become a veritable necessity and which is not procurable in this country.

The present duty on glucose and grape sugar is 1} cents per pound. Grape sugar is made by but one concern in this entire country. Domestic glucose, which is made of Indian corn, is selling at time

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PARAGRAPH 296–POTATO STARCH.

of writing at $1.94 per 100 pounds in open market. This refers to corn glucose at its heaviest-namely, 45° B. A barrel of glucose weighing 600 pounds, at $1.94 per 100 pounds, amounts to $11.64. The present duty of 1} cents per pound on 600 pounds of glucose amounts to $9. This is a fair example of what the present rate of duty signifies. Whereas no potato glucose is manufactured in this country, there is a duty of 14 cents per pound collected on all importations.

Your honorable committee should take into account the notorious fact that there is but one universal price for cornstarch and cornstarch products in this country, thanks to prevailing economic conditions.

In summing up, we beg to submit for your consideration the following important facts:

Tapioca flour and starch, cassava flour and starch, and sago flour, all made under coolie labor conditions, are now free.

Potato starch and flour made in highly civilized countries now pay a duty of 14 cents per pound.

All other starches of whatever base now pay a duty of 1 cent per pound.

Tapioca flour and starch as als) cassava flour and starch, are chemically the same as any other starch, and so does sago fall under the category of starches.

Why discriminate against starches manufactured under civilized and scientific auspices, in favor of coolie labor starches in the Far East?

For the sake of consumers of starch in this country, we recommend that all starches of whatever base, should be admitted free of duty.

Mr. LONGWORTH. What is your business?

Mr. MORNINGSTAR. Importers and dealers in starches and dextrines in this country.

Mr. McCALL. Do you import much starch now under the present duty ?

Mr. MORNINGSTAR. Not very much. This in all modesty.
Mr. McCall. Where do you import your starch from now?
Mr. MORNINGSTAR. From Germany.

Mr. McCALL. Have you any particular preference in factories in Germany ?

Mr. MORNINGSTAR. Yes, sir; we buy from one concern only in Germany, the largest one of its kind in the world. We handle their product exclusively

Mr. FORDNEY. This sturdy German” that you are speaking about is really yourself, isn't it?

Mr. MORNINGSTAR. No, sir; it is not I at all. I haven't a drop of German blood in my veins, to my regret.

Mr. FORDNEY. These things that you state are on the free list are not produced in this country. Is that not why they are on the free list, because they are not produced in this country at all ?

Mr. MORNINGSTAR. Neither is potato glucose nor potato dextrine produced in this country, and there was cassava grown in this country at one time.

Mr. FORDNEY. But the amount produced in this country is very little, and for that reason the article has been on the free list, but

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