PARAGRAPH 23-GELATIN, GLUE, ETC.

Mr. LONGWORTH. How much were they in 1895?

Mr. KITCHIN. How much were they last year?

Mr. LONGWORTH. Let us get 1895 first. How much were they in 1895 ?

Mr. DELANY. $421,862.44.

Mr. LONGWORTH. How much were they last year?

Mr. DELANY. You refer to glue alone?

Mr. LONGWORTH. Yes.

Mr. DELANY. Last year, $770,130.

Mr. JAMES. This glue which they export has to be sold in competition with the world, does it not?

Mr. DELANY. No, sir; that is not a competitive glue. It is a packing-house product. Only the packing houses have the material to make it. It is a specialty.

Mr. JAMES. If it is not a competitive glue, why do you want a high tariff over here to protect you against competition?

Mr. DELANY. That is a very small proportion of the production of the country.

Mr. JAMES. Then on that you would not need any tariff at all, because it is not competitive?

Mr. DELANY. I do not suppose the packer cares much about it, one way or the other.

Mr. DELANY. May I be permitted to make a correction of a question Mr. James asked me a moment ago?

The CHAIRMAN. Yes, sir.

Mr. DELANY. Mr. James asked me a question as to the percentage of profit in our glue department last year. We are also engaged in the manufacture of curled hair, and I had in mind the total profits of our business when I told him 14 per cent. The amount of capital we had invested in our glue department last year was about $210,000 and our profits were between $17,000 and $18,000 in that depart

ment.

Mr. JAMES. What is the other commodity you manufacture?
Mr. DELANY. Curled hair.

Mr. JAMES. Curled hair?

Mr. DELANY. Yes, sir.

ADDITIONAL STATEMENT FROM NATIONAL ASSOCIATION OF GLUE AND GELATIN MANUFACTURERS.

WASHINGTON, D. C., February 4, 1913.

Hon. OSCAR W. UNDERWOOD,

Chairman Ways and Means Committee.

DEAR SIR: In response to a request for a constructive suggestion in regard to the wording of paragraph 23, Schedule A, of the existing tariff act, we respectfully suggest that the maximum revenue that can be collected and that will also permit full and free competition with the domestic product can be realized by the adoption of the following phraseology and rates of duty, to wit:

Glue, glue size, insinglass or fish glue, and prepared fish sounds other than crude or dried or salted for preservation only, twenty-five per centum ad valorem.

Gelatin in sheets, emulsions, or any other form, and all manufactures of gelatin or or which gelatin is the component material of chief value, not specially provided for,

PARAGRAPH 23-GELATIN, GLUE, ETC.

valued at not above thirty-five cents per pound, thirty-five per centum ad valorem; valued at above thirty-five cents per pound, forty-five per centum ad valorem; agaragar, or Japanese isinglass, twenty-five per centum ad valorem.

Taking the above-named articles into consideration, we beg to refer to the reports of the Bureau of Commerce and Navigation for a period of 14 years, from 1899 to 1912, inclusive, during which time 57,755,892.90 pounds of glue, valued at not over 10 cents per pound, were imported into this country, of which the value was $4,085,585.49 and the duties collected were $1,443,898.26, as shown by the table. annexed hereto.

These figures show the average invoice price to have been 7.07 cents per pound and the average rate of duty to have been 35.34 per cent. From the best information that can be obtained, about 25 per cent of these importations consisted of hide-stock glue, and the greater part of which was used for one specific purpose, and the average invoice price for which is about 9 cents per pcund; the remaining 75 per cent equal to about 43,316,919 pounds, was therefore invoiced at about an average price of 6.43 cents per pound, on which the average rate of duty was 38.86 per cent, and at this valuation a duty of 25 per cent would place such qualities of glue in this market at a cost of slightly over 8 cents per pound, a price sufficiently attractive to encourage an increase in importations to such an extent that the revenue derived therefrom would exceed the amount of duties now collected. Glues carrying an invoice price of 6.43 cents per pound enter more fully into general use than glues imported for specific purposes, hence the opportunity for increased importations.

We recommend an ad valorem instead of a specific rate, for the reason that the higher the price of glue the greater is its amnufacturing cost, and while the specific rate imposed in H. R. 20182 would be equivalent to over 15 per cent on glues of an average value of 6.43 cents per pound, it would only be about 11 per cent on glues valued at 9 cents per pound, which appears to us as a discrimination against the makers of the better qualities.

We also respectfully submit that the rate of duty which we suggest is an average reduction of over 28 per cent from the present schedule on glues valued at not over 10 cents per pound.

We request higher rates of duty on gelatin than on glues for the following reasons, viz:

First. The labor expense per pound to manufacture gelatin is much greater proportionately than in glue.

Second. The operation of the national and State pure-food laws has imposed within the past three years certain exacting requirements upon the makers in the United States, which have resulted in greatly increasing the cost of manufacturing gelatin (the larger part of which is used for edible purposes), whereas the European manufacturers do not have to comply with similar requirements in their own countries.

Third. The rates of duty asked for by the gelatin manufacturers of the United States will permit of lively competition and produce the highest possible revenue for the Treasury of the United States without any burden to the consumer.

Fourth. Gelatin valued above 35 cents per pound imported into the United States is for photographic purposes only and practically all of it is consumed by one concern.

PARAGR PH 23-GELATIN, GLUE, ETC.

Fifth. Furthermore, gelatin is a commodity that enters into the manufacture or production of luxuries quite altogether.

All of which is respectfully submitted.

CHARLES DELANY,

President National Association of
Glue and Gelatin Manufacturers.

Totals of sworn statements of profit and loss given to Senator Charles F. Johnson, of Maine, by the most prominent glue manufacturers of the United States for a period of 12 months ending in 1912.

Showing a percentage of profit of 0.66/100 of 1 per cent. The above figures are the totals of statements sent to Senator Johnson in response to a request to the individual glue manufacturers of the National Association of Glue and Gelatin Manufacturers that such sworn statements be sent.

81 FULTON STREET, New York, N. Y.

RUFUS W. POWELL,
Secretary National Association of
Glue and Gelatin Manufacturers.

Imports into the United States of glue valued at not above 10 cents per pound, including glue improperly reported as gelatin under above valuation, under specific rate of duty of 2 cents per pound.

[Collated from Reports of Commerce and Navigation, 1899 to 1912, inclusive.]

PARAGRAPH 23-GELATIN, GLUE, ETC.

Imports into the United States of glue valued at not above 10 cents per pound, including glue improperly reported as gelatin under above valuation, etc.-Continued.

A careful estimate regarding the foregoing indicates that 25 per cent of the importations of glue valued at not above 10 cents per pound are mostly used for one specific purpose and average in value about 9 cents per pound. Deducting from the above totals this 25 per cent shows:

LETTER OF JOHN B. ORR, BOSTON, MASS.

Congressman WILLIAM F. MURRAY,

BOSTON, January 1, 1913.

Washington, D. C.

MY DEAR CONGRESSMAN: Referring to conversation on Saturday last regarding liquid fish glue, after careful investigation here in Boston, I find that the customs authorities do not keep a separate record of the importations of bone glue and liquid fish glue. I have, however, found that during the past four years there have been no importations of fish glue excepting what I imported myself from St. Pierre, Miquelon, to Boston amounting to 40 barrels, which was 1,627 gallons. I imported this glue to see what I could do in competition with manufacturers of liquid fish glue in the United States and have found that I could not compete. There has been no liquid fish glue imported in here from Canada; whether there has been any importations to other ports or not is a question. There have been no importations in from Newfoundland because there has been none

PARAGRAPH 23-GELATIN, GLUE, ETC.

manufactured there. The only other place that any liquid fish glue could come in from would be Norway. It is my opinion that there is no liquid fish glue in what I call bulk-that is, in 5-gallon kegs or 50-gallon barrels-imported into the United States from any place in the world, as the present duty is absolutely prohibitive.

I find that the duty on glue is 2 cents per pound on glue valued at less than 10 cents a pound and 25 per cent ad valorem on glue valued at over 10 cents a pound. Prices are based on f. o. b. point of shipment. For instance, if I shipped any glue in from our factory at Burnt Islands, Newfoundland, the price would be based on f. o. b. Burnt Islands. With reference to duty, for example, a gallon of fish glue weighs 9 pounds 14 ounces, which makes the duty between 24 and 25 cents per gallon. If there was a duty, say of 1 cent per pound, which would be equal to about 10 cents per gallon on the cost of our manufacture, undoubtedly we would be able to ship many thousands of gallons of glue into the United States, whereby the United States Government would be receiving a revenue from shipments made from our factory into the United States, which would not only help them but would help the dealer and consumer, while at the present time there are no importations and they are getting no revenue whatever. I sent Mr. Gallivan, in confidence, a copy of a letter from one of the three largest liquid glue manufacturers in the United States, showing that they are not able and have not been able to supply the trade.

I might say that the capital of $100,000 invested in our business in Newfoundland comes entirely from the citizens of the United States.

I sincerely believe that allowing our glue to come into the United States with a reasonable duty will open up a very much larger field and give a number of dealers an opportunity of using liquid fish glue who are at present handicapped on account of not being able to get same in the United States.

If there is any further information or any detail that I can give you, will be glad to have you advise me.

I was given to understand that the Commerce and Labor Bureau, statistical department, at Washington had considerable information with reference to the glue business. Whether they have any information regarding liquid fish glue I do not know.

I hope that you are quite well, and, with kind regards,

Sincerely, yours,

JOHN B. ORR.

BRIEF OF JOSEPH DICK, NEW YORK, N. Y.

I am an American citizen, resident and voter of New York City, and engaged in importing German and Austrian bone glues in cake form. I have been engaged in this business as the general agent of a German and of an Austrian glue concern for the last four years. I have no experience in glue manufacturing. But in the course of my business dealings with American glue manufacturers and glue jobbers I have through them come into possession of a few elementary facts bearing upon the cost of making American glues which, second-hand though they be, derive their value from their source, whose authenticity can not be doubted.