PARAGRAPH-CHARCOAL. We would like to have the present rates of duty continued, but if a change is deemed imperative we suggest that the duties be made specific and as follows: Crude wood alcohol (82 per cent), 5 cents per gallon; refined wood alcohol, all grades, 10 cents per gallon; acetate of lime, one-half cent per pound; formaldehyde, 2 cents per pound; charcoal, 1 cents per bushel. 14 No demand in any quarter for lower duties on wood chemicals has so far manifested itself, and so far as known prices are satisfactory to the consumers. The above facts are taken from evidence submitted at the hearings before the Senate Committee on Finance, March 19, 1912. But little more needs to be said. We have here a typical American industry, and one which has been created from our waste wood products and by the wit and wisdom and thrift of the people living in the States named. The art and trade has become valuable, and to allow it to be destroyed or greatly impaired by the admission of competitive products free of duty from Canada would, it seems to me, be without justification, particularly so as there is no complaint or agitation in any quarter for a change and reduction in the prevailing rates of duty. Finally, it should be remembered that the Canadians have protected themselves against the importation of these products, or some of them, from the United States by the imposition of the rates of tariff named, at least on charcoal. For all of which reasons it is respectfully urged that the present rates of duty be allowed to remain, but if as stated above a change is deemed imperative, then we respectfuly suggest that the duties be made specific as above outlined. All of which is respectfully submitted. HOLLINS N. RANDOLPH. Hon. OSCAR W. UNDERWOOD, ATLANTA, GA., February 24, 1913. Washington, D. C. MY DEAR MR. UNDERWOOD: My attention has been called by one of my friends to a mistake I made in my little brief filed on the subject of import duties on charcoal and its by-products. I stated therein that the Canadian market for charcoal is cheaper than in the United States. In this I find I am mistaken. The Canadian market is higher and returns the manufacturer a much better average per bushel than we are able to get in the United States; it seems also that the product does not have to be so well prepared. Therefore, in the event the Canadian manufacturers produced more of these products than their markets can readily absorb, instead of reducing the price to their home trade they would use the United States and its consumers as a dumping ground, if they had no tariff duties to confront on importing the product in this country. I regret this mistake and hasten to correct it at first opportunity. With kindest regards, I am, Sincerely, yours, HOLLINS N. RANDOLPH. PARAGRAPH 10-CHARCOAL. PROTEST OF BAUGH & SONS CO., OF PHILADELPHIA, PA., AGAINST THE REMOVAL OF DUTIES UPON CHARCOAL, BLOOD CHAR, ETC. To Hon. Oscar W. Underwood, Chairman, and Members of the Ways and Means Committee of the House of Representatives, Washington, D. C. In the matter of proposed revision and amendment of Schedule A of the present tariff act so as to remove all duties payable upon importations of charcoal, blood char, bone char, or bone black not suitable for use as a pigment, and so as to make, as suggested in House bill No. 20182, the tariff act under the head of free list read: "85. Charcoal, blood char, bone char, or bone black, not suitable for use as a pigment," as shown by the report of the Committee on Ways and Means of the House of Representatives, page 136. Baugh & Sons Co. is a corporation of the State of Pennsylvania and is a large manufacturer of charcoal (animal), bone char, or bone black, not suitable for use as a pigment, and has a capital of approximately $270,000 invested in the portion of its plant devoted to such manufacture. The company is not connected or affiliated in any manner whatever with any trust or combination. It is an absolutely independent concern, competing with all manufacturers of charcoal, blood char, bone char, or bone black, not suitable for use as a pigment, and other products, within the territories which it is practicable for it to reach profitably, considering the location of its plant, which is at Philadelphia, Pa. The company employs a large number of men at its plant, and their average working day is 10 hours and the wages paid skilled men are at the rate of $12 per week and the wages paid the unskilled workmen are at the rate of $10 per week. The present tariff act imposes a duty of 20 per cent ad valorem upon importations of charcoal, blood char, bone char, or bone black, not suitable for use as a pigment, and it is earnestly submitted that a proper consideration of the interest of the American workman engaged in this industry, and of his employer, require that this duty be not removed or decreased. During the past year, 1912, the profits of Baugh & Sons Co. (after allowing a proper rental for the premises in which the business is conducted) from the manufacture and sale of bone black, charcoal, bone char, or blood char, not suitable for use as a pigment, amounted to but approximately 6 per cent upon the amount invested in the business-in other words, a profit slightly more than would be received by any investor in any good bonds, and that slight increase was more than earned by the risks and hazards incident to the conduct of the business. The rate of profit above mentioned is obtained upon the basis of price of crude materials in the United States being $26 per ton, the minimum price, whereas in fact the price ranges and is likely to range higher, having already been as high as $31 per ton, so that the abovementioned rate of profit, even under the present protective policy, is not a fixed profit, but is subject to diminution as the prices of crude materials advance, and indeed it is a well-known fact that the prices. for crude materials which enter into the manufacture of charcoal, bone char, blood char, or bone char not suitable for use as a pigment PARAGRAPH 10-CHARCOAL. are rapidly advancing and there are no longer available to a manufacturer of these products, such as Baugh & Sons Co., any great source of supply of crude materials such as a few years ago existed, and the result is that a great deal of crude material must be imported from other countries and at greatly increased prices, in addition to the freight. On the other hand, the prices of crude materials in foreign countries producing these articles are much cheaper than in the United States, and under the prevailing low scales of wages paid the foreign workman (the skilled men receiving about $7.50 per week and a common laborer about $6 per week) it is very apparent that the foreign manufacturer is able to produce charcoal, blood char, bone char, or bone black not suitable for use as a pigment, at a much lower cost than the American maunfacturer, who must pay more for his crude material and a higher rate of wages to his workmen, to whom he pays wages, as herein before mentioned, to the skilled men at the rate of $12 per week and to the common laborer $10 per week. Right here it is clear that there is a difference in cost of production in America and foreign countries, considering the element of labor merely, of 37 to 40 per cent. Therefore, to remove the present duty upon these commodities and to admit them free into this country would obviously work to the advantage of the foreign manufacturer alone and to the great disadvantage of the American workman and his employer, making it impossible for the American citizens, both employee and employer, engaged in the industry, to compete if the American workman is to receive his present scale of wages. The only possible way the American manufacturer could compete with the foreign trade would be to decrease greatly the wage scale of the American workman, who, in order to have employment, would be obliged to accept this decreased wage and consequently set for himself and his family a lower standard of living. If the workman were not willing to accept the decreased wage and the pressing conditions which would follow its acceptance, then the American manufacturer would be compelled to cease operations and thus abandon the field to the foreign producers without competition from the American manu facturer. The only recourse of the American workmen under such conditions would be to seek employment in other directions, which, of course, would tend to decrease the wage rate in the other lines of business by reason of an oversupply of labor and would demoralize conditions socially as well as the charcoal, blood char, bone char, or bone black (not suitable for use as a pigment) industries in this country. The geat damage that would be suffered by the American manufacturers by the removal of the present duty of 20 per cent ad valorem, will be more clearly apparent when it is known, as is the real fact that the profit upon the manufacture and sale of bone black, for example, does not, at the prevailing price, exceed 6 per cent. If, therefore, the foreign producer is able to enter his goods into this country without a duty of 20 per cent ad valorem at least it is clear that he would have such an advantage as to entirely eliminate the American manufacturer and employee from the industry. PARAGRAPH 11-BORAX. It is clear that to place these commodities upon the free list can only result in aiding the large manufacturers of charcoal, blood char, bone char, or bone black in European countries, where the crude materials and labor are so much cheaper and lower than in this country, to the great detriment not only of the American manufacturer, but to those workmen who are dependent upon the industry here for the livelihood of themselves and their families. But if upon a consideration of the whole subject it be determined to place these articles upon the free list, then not only to be consistent, but in the hope of preventing the absolute destruction of the industry, there should be placed upon the free list not only crude bone but bone ground, crushed and broken particles of all kinds which might enter into the manufacture of charcoal, blood char, bone char, or bone black not suitable for use as a pigment. This would afford the American producer and his workmen a very slight or the only chance to continue the condition of their industry. Respectfully submitted. BAUGH & SONS Co., B. H. BREWSTER, Vice President. PHILADELPHIA, January 3, 1913. PARAGRAPH 11. Borax, two cents per pound; borates of lime, soda, or other borate material not otherwise provided for in this section, two cents per pound. For borax, see also Italian Chamber of Commerce, page 103. BORAX. BRIEF OF NATIONAL BORAX CO., SAN FRANCISCO, CAL., IN FAVOR OF TARIFF ON BORAX, BORACIC ACID, AND BORATE OF LIME. The borax produced by the mines of the company which I have the honor to represent are situate in the northeastern portion of Ventura County, a very sparsely populated section and practically a desert country. The mines are a long distance away from railroad transportation, something like 70 miles, and we have been compelled to build and maintain wagon roads to haul our products and supplies this long distance at a very high expense. Our mine is one of the four existing borate mines in this country, and all are more or less laboring under these same disadvantages, besides having to pay the highest rate of wages to miners and other high costs for supplies. The ore produced by these mines is principally colemanite, a variety of borate of lime, containing a very large percentage of waste matter, and has to be refined before it becomes an article of commerce. The output of our mines will average 1,000 tons a month at an approximate value of $25 per ton for the crude ore at the mine. Over 100 people are more or less directly interested in the maintenance of the operations of our mines, and our pay roll, including supplies, exceeds the amount of $10,000 per month. PARAGRAPH 11-BORAX. Any reduction of the present tariff would only force us to discontinue our operations and would not only work a very great hardship upon our laborers and others depending upon them, but also upon our stockholders, of which there are 200. The present price of the refined commercial product, borax, and also all other products derived from the mineral we mine (colemanite, borate of lime) is lower than it has ever been known before. The reduction of tariff would only open the American markets to the borate of lime produced in South America, where they have very cheap labor, and would close the operations of all of the American mines, without giving the American consumer any compensating benefits. SAN FRANCISCO, CAL. NATIONAL BORAX Co., By MAX P. FRIES, President and General Manager. CHAMBER OF MINES AND OIL, LOS ANGELES, CAL., URGES RETENTION OF DUTY ON BORAX. Mr. DANIEL C. ROPER, CHAMBER OF MINES AND OIL, Los Angeles, Cal., January 9, 1913. Clerk Committee on Ways and Means, House of Representatives, Washington, D. C. DEAR SIR: We beg to confirm our telegram to you to-day, quoting resolutions passed by our board of directors, urging that no action be taken by the Committee on Ways and Means toward placing borax or borate products on the tariff free list. We inclose herewith copy of the resolution, as telegraphed to you; also a brief of facts on the borax industry of this State, as prepared by our committee. We will appreciate it if you will bring this resolution and brief to the attention of the committee, and assure you of our appreciation in advance. Very truly, yours, DANIEL C. ROPER, Clerk Committee Ways and Means, CHAMBER OF MINES AND OIL, [Night letter.] LOS ANGELES, CAL., January 8, 1913. House of Representatives, Washington, D. C. Please bring to attention committee following resolution passed to-day by our board of directors: Whereas the borax-mining industry in California has shown a small but steady increase after 40 years of development work notwithstanding the limited market; and Whereas with the increase in production and transportation facilities there has been an enormous decrease in the price of borate products to the consumer; and Whereas any reduction in the existing tariff will eliminate this industry in California, throw open the markets of the United States to foreign mines, benefit foreign labor at the expense of American labor, practically destroy the work of those who have built up the industry, and cause great loss in capital now invested in California: Now, therefore, be it |