PARAGRAPH 15-COAL-TAR DYES.

or opposed, and the American manufacturer will be hopelessly at the mercy of the German manufacturers.

This industry in this country is composed principally of four different manufacturers. Their total production is about 20 per cent of the total consumption of these dyes in the United States. This certainly is a large enough percentage to constitute an actual industry here.

This percentage is arrived at by taking the total imports of aniline colors into the United States in any of the last five years and comparing against them the production of the four factories, of which a fairly accurate estimate can be made, resulting in a finding that 20 per cent of the whole is manufactured in this country.

The chemical industry in the last few years has undergone a great impetus, through the better conditions which have been evolved from placing the raw products on the free list and leaving a reasonable tariff on the finished products. The 30 per cent now imposed represents a proper or fair proportion. It is our firm belief that if the situation is left unchanged our industries will increase and will become formidable competitors with the great German manufacturers. They certainly will be sufficient to offset the monoplies established by the conventions and combinations formed by the European manufacturers which cause the products governed by these combinations to actually cost the consumer more in proportion than the protected colors on which prices are forced down to a reasonable basis through competition of the American manufacturers. The consumer to-day is no better off in reference to alizarin colors, aniline salts, and aniline oil, which are on the free list, than if there was an actual duty on these products, simply because the conventions and combinations have placed a greater cost upon them.

The American coal-tar colors industry gradually is becoming a recognized competitor against the European manufacturers, which should be encouraged.

The commercial world is fast realizing that the tremendous progress made by Germany has been due in no small measure to the splendid encouragement of her chemical industries. Any step taken by this Government in discouraging chemical advancement will be a distinct retrograde movement.

Any reduction of the present 30 per cent duty will not help the manufacturers that use aniline dyes in any way, shape, or form, because the percentage of reduction would never be credited in the selling price, because it would be deemed inconsiderable. The same situation will confront them as has been considered in the preceding paragraphs, viz, that if the German manufacturers control the output the price, instead of being lowered, will most certainly be raised.

It should be borne in mind that the American manufacturer, in order to secure the home market, must be in a position to undersell the importer. This he can not do to-day, and the struggle is a very severe one to maintain the industry even with the present rates. The foreign manufacturer very often assumes part of the duty himself in order to get the American trade. The German manufacturers do not manufacture in the United States because, as the people high in authority state openly, they can manufacture the colors in Germany and lay them in the United States with the duty of 30 per cent and the manufacturer's profit added at a lower price than they could manufacture the same colors in America.

In conclusion I desire to state that the Schoellkopf, Hartford & Hanna Co., which is the largest color industry in America, is willing and anxious to submit its books to any member or members of the committee and to give them the fullest information possible in reference to the actual condition of the color industry in this country, which will verify and substantiate every statement made in this letter. The money invested at the present time, which is not watered in any way, barely returns a small dividend. In the last four years it has been less than 6 per cent.

SCHOELLKOPF, HARTFORD & HANNA CO., By Jos. F. O'CONNELL, Attorney.

BRIEF ON BEHALF OF IMPORTERS OF CERTAIN ALIZARIN VAT DYES.

The COMMITTEE ON WAYS AND MEANS,

House of Representatives, Washington, D. C.

GENTLEMEN: We desire to call to the attention of your committee certain inequalities in the treatment, under existing law, of various anthracin dyes belonging to the class known as "fast vat dyes,"

PARAGRAPH 15-COAL-TAR DYES.

which inequalities we believe will be perpetuated if the language of the present tariff act, or of the chemical bill of 1912 known as H. R. 20182, is adopted in new legislation.

We are importers of certain anthracin fast vat dyes manufactured in Germany and known as hydron blues. These dyes are produced from carbazol, which is derived from commercial or crude anthracin. We have claimed the hydron blues to be properly classifiable under paragraph 487 of the present tariff act as "dyes derived from * * * anthracin," but such classification has been denied by the customs officials who assess the dyes in question as "coal-tar dyes or colors not specially provided for" at 30 per cent ad valorem under paragraph 15 of the tariff act of 1909.

Litigation as to the propriety of this assessment is now pending in the United States Court of Customs Appeals, but, as the law is thus misconstrued, we venture to ask your committee to clear the matter up by the insertion of appropriate phraseology when it writes the new tariff bill.

The language of the present act reads:

"Par. 487. Alizarin, natural or artificial, and dyes derived from alizarin or from anthracin."

The language we propose is:

"Alizarin, natural or artificial, and dyes derived from alizarin, anthracin, or carbazol."

THE RELATION OF HYDRON BLUES TO ANTHRACIN.

The hydron blues are derived from anthracin because their origin is traceable to the physical substance, commercial anthracin. Carbazol, from which they are directly made, is derived from commercial anthracin and can not be obtained in commercial quantities from any other substance. Up to this time the customs authorities have held that the phrase "derived from anthracin" does not refer to the commercial product, but refers to technically pure anthracin having the chemical formula C1,H10.

It is only since the last tariff act went into effect that a commercial method of separating carbazol from anthracin has been perfected, and the discovery of hydron blues has resulted. Their derivation and properties therefore place them in the same class with the vat blues derived from anthracin. Clearly bringing them within that group in the tariff is in accord with the avowed object of your committee to bring the classification of the chemical schedule up to date, remove all obsolete features, and eliminate possible misconstruction. Such treatment of these dyes is also in accordance with

THE ATTITUDE OF CONGRESS TOWARD THE FAST VAT DYE STUFFS KNOWN AS ALIZARIN OR ANTHRACIN DERIVATIVES AND INDIGO.

For nearly 40 years it has been the policy to exempt from duty alizarin or anthracin derivatives and inligo. Provisions exempting alizarin, or alizarin or anthracin derivatives, and indigo, are found in every tariff since 1875, the phraseology changing from time to time to meet the development of the industry.

PARAGRAPH 15-COAL-TAR DYES.

While the policy of giving these products free entry was departed from for the first time in many years in the bill which passed the House of Representatives in 1912, known as H. R. 20182, there was no departure from the policy of treating them alike. That bill imposed an ad valorem duty of 10 per cent on "alizarin, natural or artificial, and dyes derived from alizarin or from anthracin" (par. 6) and the same rate on "indigo, indigo extracts, or paste and indigo carmined" (par. 38).

If your committee sees fit to remove the dyes just enumerated from the free list and subject them to a tax of 10 per cent, no inequality will result. But what we ask is that the phraseology of the act should be so clear that all dyes properly falling within the same class shall be treated alike. We do not believe that your committee intends that one fast vat dye derived from anthracin shall be dutiable at 10 per cent and another fast vat dye from the same derivation shall by reason of a lack of clearness in the law be assessed at 30 per cent. The law as it now stands is interpreted in favor of certain German manufacturers who produce a limited number of patented anthracin derivatives and import them into this country, and discriminates against other manufacturers and importers who have discovered and developed valuable competing products in the same class. No dyes of this class are manufactured in America. We believe you will wish to correct this in the interest of the American textile industry as well as in fairness to the importer. Hydron blues are among the fastest dyes known and are largely used abroad, but are almost prohibited to the American textile manufacturer because of the misconstruction of which we complain.

As the dyes for which we speak have been upon the market but two years, and have had to pay a duty of 30 per cent, while other anthracin dyes have paid nothing, the importations have been relatively small and the aggregate duty unsubstantial. An equal or greater amount of revenue would doubtless be collected from them if properly classified with the anthracin derivatives because of the increased consumption that would result from placing them upon a competing basis.

Respectfully submitted.

CASSELLA COLOR CO., 182-184 Front Street, New York City. ROBERT ALFRED SHAW,

Vice President.

(Curie, Smith & Maxwell, attorneys, 32 Broadway, New York City. Thomas M. Lane, of counsel.)

BRIEF OF THE PACIFIC MILLS, COCHECO DEPARTMENT, IN RE HYDRON BLUE, ETC.

DOVER, N. H., February 6, 1913.

Hon. OSCAR W. UNDERWOOD, Esq.,

Chairman Ways and Means Committee,

Washington, D. C.

DEAR SIR: We are large users of indigoes and vat colors on cotton goods, and we also use hydron blue to a moderate extent. We have

PARAGRAPH 17-PYROXYLIN COMPOUNDS.

just been advised of the brief filed by the Cassella Color Co., requesting the removal of the misconstruction in the present tariff, which makes hydron blue dutiable at 30 per cent. We believe a favorable action in this matter would be of great advantage, both to the textile industry and the public in general.

Hydron blue is one of the more important of the recent additions to the color industry, being a decidedly faster color than indigo, which it would largely replace if the price were more favorable. At its present price it is used only for the more expensive lines of work, and lowering the duty would undoubtedly increase the use of this valuable dyestuff.

Respectfully, yours,

PARAGRAPH 16.

Cobalt, oxide of, twenty-five cents per pound. PARAGRAPH 17.

H. W. OWEN, General Superintendent.

Collodion and all compounds of pyroxylin or of other cellulose esters, whether known as celluloid or by any other name, forty cents per pound; if in blocks, sheets, rods, tubes, or other forms, not polished, wholly or partly, and not made up into finished or partly finished articles, forty-five cents per pound; if polished, wholly or partly, or if in finished or partly finished articles, except moving-picture films, of which collodion or any compound of pyroxylin or of other cellulose esters, by whatever name known, is the component material of chief value, sixty-five cents per pound and thirty per centum ad valorem.

For celluloid, see also Park & Tilford et al., page 66.

PYROXYLIN COMPOUNDS.

BRIEF SUBMITTED BY FRANCIS A. GUDGER, NEW YORK CITY, IN BEHALF OF MANUFACTURERS OF PYROXYLIN COMPOUNDS.

Hon. OSCAR W. UNDERWOOD,

NEW YORK, January 10, 1913.

Chairman Committee on Ways and Means, Washington, D. C. SIR: The American manufacturers of compounds of pyroxylin beg to express their appreciation of the opportunity afforded them to be heard by your committee relative to contemplated changes in the tariff law affecting their industry, but owing to the shortness of time and the absence of the undersigned upon the dates set for the hearing on paragraph 17, Schedule A, and realizing that your committee will undoubtedly be crowded to the utmost by the large number of persons who will wish to be heard on this schedule, we respectfully ask you to accept this short statement concerning the matter in question: The paragraph in the tariff act of 1909 which is applicable to our industry is No. 17, Schedule A.

We earnestly protest on behalf of the stockholders of our several companies, as well as on behalf of the thousands of workmen employed in our factories and factories of allied industries, against any reduction in the rates of duty now set forth in paragraph No. 17 of Schedule

PARAGRAPH 17-PYROXYLIN COMPOUNDS.

A of the act of 1909. We firmly believe in the justice of our position and feel that it is supported by facts and conditions, the most important of which we set forth briefly as follows:

First. Our product is distinctly and originally American. It was discovered by an American citizen forty-odd years ago, and American capital and brains developed and perfected it to a point where it became a valuable commercial commodity. When that point was reached our patents were copied, our secret processes were learned and transported abroad and developed to such an extent that to-day there exist large factories in Germany, France, England, Austria, Russia, Italy, and Japan.

Second. There is no trust or monopoly in the industry and never has been. Each one of the companies is an independent corporation in which the others have no interest whatsoever, marketing their goods wholly independent of each other, and there exists between them all competition of the very keenest character.

Third. The Government records will not show a large importation of pyroxylin articles, but this is because under the interpretation of the tariff laws the great majority of these goods are imported into this country under other tariff schedules than the one applying specifically to our industry. Such importations are, however, very large and increasing rapidly and progressively year by year. A single glance at the stocks of any of the department or retail stores throughout the country will fully bear out this assertion.

Fourth. We firmly believe that if the protection now afforded our industry is taken away or radically reduced, our business will be seriously crippled and in many of the lines now produced by us will be completely destroyed, as they are now being gradually crippled.

Fifth. The foreign manufacturers have taken from us all the markets of the world except the United States of America, and unless adequate protection is continued we will undoubtedly gradually suffer the same defeat at home as abroad.

Sixth. Foreign manufacturers have a great advantage over us in cheaper crude materials and cheaper labor, and in many other ways, both from a point of cost and labor conditions. In the European countries well-known and well-established records show their labor to be less than one-third of the wages paid in our factories. In Japan, where there are now two completed "celluloid" factories on modern improved scale, the labor is less than a fourth or fifth of what ours is in this country, and some records show it to be far less than this. Seventh. There is scarcely a single article that we manufacture or that is manufactured from our material but what is strictly a luxury and has always been so classified or which can not be replaced by other and cheaper materials.

Eighth. In the manufacture of our material we are very large users of two raw products, the conditions surrounding which we wish to call to your particular attention.

(a) The American manufacturers of compounds of pyroxylin, while unable to give figures of an exact character, owing to the competition which prevents each from knowing the figures of the other, are users of approximately 10,000,000 pounds of cotton per year and a decrease in our manufacture or a resulting cessation of our industry will, of course, wholly or partially eliminate this consumption.