PARAGRAPH 20-DYEING OR TANNING WOODS, ETC. That imports have not been checked by the present tariff, we submit the following table: Please note that in 1906 the United States manufacturers did a little more business in pounds of extract than did the importers. The Forestal Trust at that time, as already shown, was not fully in the saddle, but later the imports were considerably over 100 per cent, and in 1908-1909 it was the largest, probably due to the low price of 2 cents mentioned by Mr. Klipstein. The year 1912 shows about double the quantity of extract imported as compared with the quantity manufactured in this country, but a decrease of about 20 per cent from the imports of 1911. This decrease can not be attributed to the increase of the home manufacture, as they only show about 5 per cent increase between the same years, which was 10 per cent less than they showed in 1910. The present tariff can not be called excessive; otherwise, the imports would not exceed the home manufacture by 100 per cent and maintain this position year after year. We understand that the desideratum of tariff adjustment is to establish a rate that will produce the greatest revenue, combined. with greatest encouragement for both home and foreign competition; therefore as a tariff for revenue and competition the present rate should be retained. PARAGRAPH 20-DYEING OR TANNING WOODS, ETC. If the tanners of this country understood the actual conditions, they would be more anxious than the extract manufacturers to have the duty on these extracts maintained. We have seen of late articles in the leather-trade papers advocating reductions in the tariff, all written by importers or representatives of foreign manufacturers (or their employees), the usual method they have adopted for years prior to tariff hearings. On the 30th day of August last the Stamford Manufacturing Co. wrote to their agent in Buenos Aires, putting to him a few questions, wishing to have an answer in time to place before your committee, which we now submit: Question No. 1. What is the wage per day or month of the ordinary laborer at a quebracho factory in the Argentine? Answer. The wage of the ordinary laborer in the Chaco is about $20 per month. NOTE. In this country the ordinary laborer receives $1.75 per day, about 127 per cent higher. Question No. 2. What are the wages per day or month of a more intelligent man, such as bosses, etc.? Answer. The wages of a more intelligent man, such as a foreman, is about $40 per month, or perhaps $50. NOTE. The wage of such men in this country is from $2.75 to $3 per day, about 56 per cent higher. Question No. 3. What are the wages per day or month of still higher class of mechanics or engineers who have to be imported to that country? Answer. About $80 a month. NOTE. In this country from $4 to $4.50 a day, about 46 per cent higher. Certain other questions as to cost, freights, etc., he states, depends upon distance, freight, etc., making the cost of the solid extract on board vessel ready for shipment to the United States at from $59 to $62 gold per thousand kilos. NOTE. This represents 2.6-2.7 cents per pound. To this must be added the freight from the Argentine and the present duty to give the cost price here. Assuming an equal division of the various grades of labor (although the ordinary labor of $1.75 per day would be the largest), the average shows 76 per cent higher in this country than in the Argentine Republic. The difference in wages, taking the cost of the extract in this country and as shown to be in the Argentine, estimated on the average higher wage of 76 per cent, shows about nine-tenths of 1 cent per pound. Chestnut extracts are largely used in connection with quebracho extracts, a combination of the two extracts used quite extensively by the tanners. Chestnut extracts are made abroad and could easily become a part of the business of quebracho manufacturers, a natural result of a reduction in the present tariff. Such a result would be injurious to the American chestnut manufacturers, probably causing many of them to quit business, thus throwing on the market many plants at low prices, the purchase of which might result in the absolute control of the two most important and largely used extracts by the tanners in the United States. PARAGRAPH 20-DYEING OR TANNING WOODS, ETC. The attached pamphlet is submitted as part of this brief, it being a compilation of the tariff hearings in 1909 and since, and which we believe in this form will be of aid to your honorable committee. ADDITIONAL STATEMENT OF W. W. SKIDDY, NEW YORK, N. Y. NEW YORK, January 28, 1913. Hon. OSCAR W. UNDERWOOD, Chairman Ways and Means Committee, House of Representatives, Washington, D. C. DEAR SIR: Certain corrected figures furnished by the Department of Commerce and Labor somewhat changed the brief under date of January 6, 1913, relative to the dutiable clauses No. 20 and No. 22 in Schedule A, and 559 on the free list. (Corrections made in brief above.) I also beg that you accept a few statements further in relation to the matter. First, that you notice in a page taken out of the Review of the River Plate under date of December 13, 1912, being a general trade paper, published in Buenos Aires, which shows, according to the reports from the Argentine Government, the exports for the first 11 months of 1912, and notice the total amount of quebracho wood exported from that country, there was 31 per cent of it shipped to the United States and 34 per cent of it shipped to Germany, and there was shipped of the extract to the United States 41 per cent of the total and to Germany only 17 per cent, showing that an excess of the manufactured article over the raw material to the United States was 10 per cent, but that to Germany it was the reverse, and there was 85 per cent in excess of the raw material over the manufactured goods. The total raw material, therefore, would indicate that 65 per cent of it was shipped to the United States and Germany. These figures prove absolutely that when 41 per cent of the total exports of any particular kind of manufactured goods from any one country can be shipped to the United States that the existing laws do not interfere with the free trading in these goods, particularly when this quantity shows, as it does in the Government figures, that it is 100 per cent greater than the amount of the same kind of goods manufacture in the United States. The American manufacturers under these conditions certainly do not control the market, but are simply competitors as against the much greater market that is bringing into this country the same kind of goods. On the 6th of January last Mr. August Vogel appeared before your committee, stating that he represented the tanners, and I believe he does represent some of them, but not all of them, and in his crossexamination, which you will find on page 87 of No. 1 Tariff Hearings, in answer to Mr. James, is the following: Mr. JAMES. How much cheaper do they sell that stuff in Canada than here? Mr. VOGEL. They just add the tariff. PARAGRAPH 20-DYEING OR TANNING WOODS, ETC. Mr. JAMES. They sell it in competition in Canada? Mr. VOGEL. Yes, sir. The American chestnut extract is sold in Canada in competition with the world's extracts, even so far that they manufacture quebracho extract in this country and sell it over there in competition with the world's markets. That, Mr. Hill, would seem to me rather a good indication that they could exist, the fact that they can take this quebracho extract manufactured in this country and sell it over in Canada in competition with the world's extracts. We do not ask to go as far as that. This statement is not only misleading but is not true, and we do not believe that Mr. Vogel would have made it did he really know the actual facts. The vice president of the New York Tanning Extract Co., in answer to this statement, has written a letter which I inclose and which proves very positively so far as they are concerned, the error of Mr. Vogel, and the sales manager has given to me one as regards my company, which also disproves the statement. We think this is sufficient to correct Mr. Vogel's error, but in further answer to this statement, Mr. George A. Kerr, of Lynchburg, Va., a member of this committee and a manufacturer of chestnut extract, stated to Mr. F. B. Harrison, that the only reason they could ship liquid chestnut extract to Canada was owing to the use of tank cars, because in shipping in tank cars there is from one-fourth to thirty one-hundredths of a cent saved per pound in the cost of barrels, handling, and freight of the same, and this difference enables them to send their liquid chestnut extract to Canada; otherwise, they could not do so. In fact, the use of tank cars during the last few years in the tanning extract business, has grown rapidly, being forced upon the manufacturers in order to have a saving, as stated by Mr. Kerr, which enables them, in all of these liquid extracts, to compete with the imported solid extracts at the present prices. The United States has almost entirely lost their solid extract business, and a very large percentage of their liquid business is now being carried on in tank cars, and but for this we fear they would have lost a large quantity of that business also. A little incident for further proof I would quote, viz, that the Stamford Manufacturing Co.'s representative, Mr. H. Stacy Smith, of Newark, N. J., finding that some of his customers want occasionally a little extract in the solid form, and, of course, wishing it at the prevailing price, placed us in a position where we could not furnish it except at a heavy loss; therefore Mr. Smith asked us if we would not allow him or arrange for him to sell the imported solid, which was granted; and Mr. E. C. Klipstein, agent of the Forestal Co., was communicated with, and you will find copy of his letter to us, the original of which, of course, we should be very glad to show if you wish it, and also a copy of Mr. Smith's reply, which we can also show. The price fixed upon these goods by Mr. Klipstein for Mr. Smith was 4 cents per pound for the higher grade or clarified at 65 per cent of tan, and 34 cents per pound for the ordinary or unclarified at 65 per cent of tan, f. o. b. New York. This transaction was somewhat humiliating, but made necessary in order that we could retain the liquid-extract trade in the tank cars by furnishing what solid these customers required. PARAGRAPH 20-DYEING OR TANNING WOODS, ETC. Silence as to statements made against us might be construed as an admission on our part of their truthfulness, and we therefore stand ready to answer any statements that tend to question the truth of anything that we have said. Very truly, yours, W. W. SKIDDY, For W. W. Skiddy, Geo. A. Kerr, and Oma Case, committee. Destination of principal exports from Argentina of the first 11 months of 1912 to European, North American, and Brazilian ports. Mr. W. W. SKIDDY, President Stamford Manufacturing Co., 82 Wall Street, New York. DEAR SIR: In connection with tariff hearings on Schedule A, held in Washington on January 6, we note that on page 87 of pamphlet No. 1 of the Ways and Means Committee covering these hearings that Mr. Vogel, chairman of the National Association of Tanners' Tariff Committee in his cross-examination is reported as saying in regard to the sale of solid quebracho extract in Canada that " 'they manufacture quebracho extract in this country and sell it over there (in Canada) in competition with the world's markets." In reply to this assertion we wish emphatically to state that as far as our own business in quebracho extract goes, Mr. Vogel's statements are absolutely at variance with the facts, and calculated to do us a great deal of harm in this tariff discussion. It is wholly impossible for us to sell any of our solid quebracho extract of domestic make in Canada in competition with the foreign-made goods, and we can not recall an instance where we have ever sent a pound of our domestic-make solid quebracho extract into that section. We, however, have a number of customers in Canada who buy of us foreignmade solid quebracho extract, which we sell on commission and ship through the United States to Canada in bond, but all of this extract is made in the Argentine Republic. For your guidance I might state we are sending a small amount of liquid quebracho to Canada, but are getting for same the regular market price charged for these goods in this country. This business, however, is not important, and it is equally impossible for us to compete with our liquid quebracho extracts in Canada with foreign-made solid extracts. The facts of this whole matter are that solid quebracho extract can not be made in this country from the raw material and sold at prevailing market prices, even with the present duty, at any profit whatever, and the business in liquid quebracho extracts |