PARAGRAPH 40-FISH OILS.

Mexican Government on the Pacific coast, which will no doubt seek a market here as easy of access. And the British vice consul of Boston has recently made a request for statistics of the whaling business in Massachusetts. It looks as if he were making this inquiry for the purpose of a market for large quantities of whale oil obtained at Norwegian stations located all over the world, and they wish to obtain a market here. In justice to the sperm whale men of my section, I think there should be more consideration given to the sperm-oil industry as distinct from the industry as made now under the line of whale oil alone.

I recollect in my early boyhood days when sperm oil and whale oil were used for lighting purposes, that my folks used whale oil because sperm oil was too high for use. It has been reduced greatly in price since, but it is still an industry that needs to be preserved and to be cared for.

I trust that the committee will take into consideration the importance of the sperm-oil industry by itself as a distinct industry that should be considered. I may submit later, from some of the people interested that are not here to-day, some facts that I would like to place before you for the information of the committee.

The CHAIRMAN. We will be very glad to have them if they come in before the printed hearings are closed.

Mr. GREENE. I will see that they do.

STATEMENT OF ROBERT BADCOCK, JR., REPRESENTING W. & S. JOB & CO. (COD OIL), NEW YORK, N. Y.

The CHAIRMAN. The next witness is Mr. Robert Badcock, jr., representing W. & S. Job & Co. Is Mr. Badcock here?

Mr. BADCOCK. If the committee please, I am addressing myself to fish oils, contained in paragraph 40 of Schedule A; cod oil imported from Newfoundland and not especially paragraphed, but listed under fish oils, paragraph 40, bearing the trade name "Newfoundland cod oil," and distinguished from domestic cod oil by its name.

The removal of the present duty of 8 cents per gallon on this article is recommended for the following reasons:

First. Because to produce the best results, cod oil is required by tanners of leather in certain tannages, such as domestic chamois, patent leather, lace leather, harness leather, and belting leather. (See Exhibits A, B, C, etc.)

Second. Because this oil can not be produced in the United States. (See Exhibits A, B, C, etc.)

Third. Because there is no duty on this oil going into the United Kingdom, thereby giving that country, which is a large user of this oil in similar tannages, a distinct advantage over the American manufacturer in competing for export business. (See Customs Tariff of United Kingdom.)

Fourth. Because the present duty of 8 cents per gallon, added to the primary cost of cod oil, makes it a very expensive oil, and when the price advances beyond a certain figure the tanners are obliged to use other oils not so good for their purpose, and it tempts unscrupulous dealers to adulterate pure Newfoundland cod oil, to the tanners' detriment.

PARAGRAPH 40-FISH OILS.

Cod oil imported from Newfoundland is an oil rendered by natural heat solely from the livers of the cod and is not made from any other part of the codfish and can not be produced in the United States, as there are certain peculiar properties contained therein which are not found in domestic cod oil. Further, the amount of domestic cod oil is very insignificant compared with the quantity of cod oil required by the leather trade.

It is quite impossible to estimate the increase in imports which would result from the removal of the present duty, but it should be noted that Newfoundland ships to the United Kingdom alone, where there is no duty, about 525,000 gallons per year, and a large per centage of this would be imported into this market were it not for the excessive tariff. The total revenue received from the whole importation is very small, and by removing the duty the public in general would benefit, as it would lessen the cost of production of all leathers in which cod oil is used.

Mr. LONGWORTH. Pardon me; I would like to know your business. Mr. BADCOCK. I am in the oil business; an importer.

Mr. LONGWORTH. You are an importer of oil?

Mr. BADCOCK. Yes, sir.

The importations into the United States for consumption and the assessed duties on cod oil for the years ending June 30, 1910, 1911, 1912, from all countries, are as follows:

It is not possible to get records of previous years, as prior to August 6, 1909, cod oil was in the general classification of fish oil, and was not given special mention. (See Table No. 15, Department of Commerce and Labor, 1910-11.)

By comparing the imports in the years 1910, 1911, and 1912 it will be noted that whereas in 1910 there were 658,640 gallons imported, valued at $167,803, in 1911 there were 596,487 gallons, or 61,793 gallons less than 1910, with a valuation of $16,435 more than the imports of 1910.

Again, in 1912, the quantity was reduced still further by 132,886 gallons and less than 1910 by 184,679 gallons, the value of which was $172,842, or $5,039 more in value than the 1910 imports, although the quantity imported in 1912 was 184,679 gallons less than the quantity imported in 1910.

These figures are extracted and compiled from Table 15 of the Foreign Commerce and Navigation of the United States, as compiled by the Department of Commerce and Labor, Bureau of Statistics.

It is suggested that cod oil be specifically listed or paragraphed as cod oil (inedible) for leather-manufacturing purposes only, and made solely from cod livers, instead of at present, under the paragraph of "Whale, seal, and other fish oils."

We have no suggestions to make as to the betterment of the administrative features of the present law as relating to Schedule A and are quite satisfied with and approve of the present methods.

78959°-VOL 1-13-19

PARAGRAPH 40-FISH OILS.

We would add that the value of imports into Newfoundland from the United States for the year ending June 30, 1911, were valued at $4,604,382. The total exports from Newfoundland to the United States for the same period amounted to but $1,380,935. Further, during this same period the imports from the United States to Newfoundland were very much greater than those from Great Britain to Newfoundland.

Imports into Newfoundland from the United States were as follows:

[Department of Commerce and Labor of the United States, 1910-11, p. 1101.]

Exports to the United States from Newfoundland were as follows:

[Department of Commerce and Labor of the United States, 1911, pp. 204-207.]

The principal imports into Newfoundland from the United States for the following years are as follows:

PARAGRAPH 40-FISH OILS.

Furthermore, on the free list of Newfoundland is noted the following:

Flour, cottonseed oil, boracic and acetic acid, many lines of machinery, hides, corn, kerosene oil, lines and twines, motor-boat engines, wheat, and many other articles, all of which are exported to Newfoundland from the United States.

Mr. HARRISON. Mr. Badcock, do you believe by reducing the duty as proposed in this bill from 8 cents to 5 cents a gallon the importations would increase only to 659,000 pounds, as we stated in our caucus copy?

Mr. BADCOCK. I did not see that.

Mr. HARRISON. Or do you think the imports would increase still

more?

Mr. BADCOCK. Yes, sir; I am quite sure they would.

Mr. HARRISON. A reduction in the tariff from 8 cents to 5 cents would increase the imports far more than shown in our estimates?

Mr. BADCOCK. It would, because the chief trouble we have in the matter of this oil is adulteration, and we know for a fact that unscrupulous dealers, of which there are many in this country, have adulterated this oil and sold it at the same price as the imported. The tanner has no way of finding it out until he dresses his leather with it, when it is too late in many cases.

Mr. LONGWORTH. I would like to know a little more about your business. Do you import oil to sell to tanners?

Mr. BADCOCK. Yes, sir; we import oil to sell to tanners.

Mr. LONGWORTH. At what price do you sell it?

Mr. BADCOCK. You mean the market to-day?

Mr. LONGWORTH. Yes.

Mr. BADCOCK. Forty-three cents.

Mr. LONGWORTH. Are you advocating that this shall be put on the free list?

Mr. BADCOCK. We are, with the help of the tanners. The tanners have asked us as importers to see what we could do to have this tariff reduced.

Mr. LONGWORTH. You idea is to reduce the price at which you sell it?

Mr. BADCOCK. It certainly is.

Mr. LONGWORTH. How much?

Mr. BADCOCK. To the extent of the duty, 8 cents per gallon, if the reduction be that much.

Mr. LONGWORTH. How will you be any better off?

Mr. BADCOCK. We will not be any better off except we will get a very much larger trade. That is our main point.

Mr. LONGWORTH. You are acting with the tanners in this matter? Mr. BADCOCK. I have presented exhibits here from several of the

tanners.

Mr. LONGWORTH. All I want to know is why you are here.

Mr. BADCOCK. These exhibits from the tanners, together with my statement, will show.

The testimony of the witness was furnished in the shape of a brief signed by the following firms: W. & S. Job & Co., per Robert Badcock, jr.; Bowring & Co., Chas. W. Bowring, Director; New York, Newfoundland & Halifax Steamship Co. (Ltd.); Harvey & Outer

PARAGRAPH 40-FISH OILS.

bridge, per R. Harvey; National Oil & Supply Co., Arthur Phillips, President; Dooner & Smith Co., James J. Dooner, President; Newark Chamois Works, F. P. Chapot, Manager; National Red Oil & Soap Co., C. P. Gulick, Treasurer; Max Hertz, per Hass; Stengel & Rothschild; National Oil Products Co., R. Bambinger, Secretary; Blanchard Bro. & Lane, by M. T. Gay, President.

EXHIBIT A.

[Stengel & Rothschild, tanners and manufacturers of patent enameled and fancy leather.] NEWARK, N. J., December 26, 1912.

W. & S. JOB & Co., 68 Broad Street, New York City.

GENTLEMEN: We understand that there is to be a hearing in Washington on the 6th of January before the Ways and Means Committee regarding duties on oils and chemicals such as enter into the manufacture of leather. We are especially interested in the duties on Newfoundland cod oil, such as we have been purchasing from you. We would like very much to have you use your best efforts to have this duty reduced as much as possible. It is impossible for us to use domestic cod oil on the class of leather which we manufacture, as we have tried it over and over again without success, there being certain properties in it which makes it unsuitable for our work. We consider this oil in the nature of a raw material which we use in the manufacture of our leather, and have always believed that such goods as enter into the use of any product manufactured in this country should be taxed as little as possible. Furthermore there are times when the domestic catch is a failure or limited in quantity, and at such times the opportunity is used to drive prices up to the highest point. We hope you will use your best efforts to have the duty on this oil reduced, and trusting that you will meet with success, we remain,

Very truly, yours,

EXHIBIT B.

STENGEL & ROTHSCHILD.

[F. S. Walton Co., oll manufacturers, importers, exporters, and jobbers.]

Messrs. W. & S. JOв & Co.,

68 Broad Street, New York.

PHILADELPHIA, December 31, 1912.

GENTLEMEN: There are four reasons which we can cite why the duty on Newfoundland cod oil for commercial uses should be abolished, these reasons being as follows: First. It is the only pure cod oil on the market.

Second. It is used by the best and largest tanners.

Third. It does not conflict with a domestic cod oil, as it is greatly superior.

Fourth. It would compel receivers of domestic oil to sell their oil pure, instead of it being the product of livers of several other fish, as at present.

Yours, truly,

F. S. WALTON Co.,

GEORGE T. EDGE, Treasurer.

Increase in exports United States to Newfoundland, years ending June 30, 1907 and 1912.