PARAGRAPH 40-FISH OILS. The Black Horn Leather Co., with most of the other oil-tannage people, believe that the best and proper method of providing themselves with an assured and safe supply of cod and fish oil is to develop the American industry. They know of no reason why under the present duty domestic cod oil will not continue to improve in quality. There are no mechanical or local reasons why such improvement should not take place until the American product becomes as uniform as the Newfoundland product, and they are content to bear any burden, if it be considered a burden, in the way of a reasonable duty in order to aid the American fisherman to establish himself where he will be safe from the destructive competition of foreign fishers and English importers. We respectfully urge the retention of the 8-cent duty on all fish and cod oil, and on sod oil, moellon, and degras. NOTE. The term "degras" has frequently been limited in legislative measures to wool grease, whereas it has as frequently in trade been applied to oils resultant from oil tannage. BLACK HORN LEATHER Co., NORMAN H. PARKE, General Manager. ADDITIONAL BRIEF OF W. & S. JOB & CO. Objection is made to statements by Black Horn Leather Co. through brief submitted and presented by Norman H. Parke, general manager, to revising duties in Schedule A, paragraph No. 40. For the reason that said statements in brief of Black Horn Leather Co. are not correct and the existing conditions are not as stated, and further, that comments thereon are inclined to mislead, rather than place facts before this committee. First. Newfoundland cod oil is not a competitor of domestic cod oil, as they are materially different, and proof of this statement is confirmed by exhibits contained in brief of W. & S. Job & Co. from direct users. Second. Newfoundland cod oil is not controlled by any London importers, nor has any London house a branch office in United States for sale of cod oil, and the statement made to this effect in brief of Black Horn Leather Co. is in error. Third. The result of the falling off in the importations is due solely to high prices and not to any improvement in the manufacture of domestic cod oil. Fourth. Reduction or removal of the duty on cod oil will not eliminate or diminish the domestic production for the reason that cod oil is a by-product of the codfish, and it is only reasonable to assume that the American fishermen will not forsake the fishing industry if this duty is removed. Fifth. Importers do not control the price of Newfoundland cod oil, they never did, have never tried, and never shall be able to accomplish this, as there is as much competition in the primary market as in the selling market, moreover, some American firms have their representatives located in Newfoundland who buy direct from the fishermen, and this in itself establishes the fact that the control of the market is not in the hands of the importers. PARAGRAPH 40-FISH OILS. Sixth. The National Association of Tanners, who appeared before the committee, through Mr. August Vogel, of Milwaukee, did make mention of the duty on this oil and recommended readjustment of the duty on cod oil. (See brief of August Vogel.) Further, the attached exhibit from Mr. Vogel's firm clearly explains the position and emphasizes the fact that it should be free of duty and that his firm (Pfister & Vogel Leather Co.) find the oil more pure, it does not oxidize as readily as domestic, it penetrates the leather better, and does not spew. Further, the Cleveland Tanning Co. state it is impossible for them to use anything but the Newfoundland cod oil and will not use domestic, owing to its impurities. (See letters under statement of Robert Badcock, jr., representing W. & S. Job & Co., p. 288.) Further, Stengel & Rothschild state it is impossible for them to use domestic cod oil, and they have tried it over and over again without success, there being certain properties in it which makes it unsuitable to their work. (See letter.) The Newark Chamois Works, manufacturers exclusively of chamois and competitors of Black Horn Leather Co., state it is their sole tanning material and that they should have their cod oil free of duty. (See letter.) Seventh. It is further stated in brief of Black Horn Leather Co. that, together with Drueding Bros. & Co., they manufacture substantially all the chamois made in United States. Eighth. It is pointed out to your committee that no statement or signature of Drueding Bros. & Co. substantiating brief of Black Horn Leather Co. showing authority for quoting this firm is found in brief of Black Horn Leather Co. Ninth. The tanners, to the extent of 90 per cent or more, are in favor of the readjustment of this duty, and the protest of only one concern should not have any adverse bearing as to the retention of this duty. (See brief of August Vogel, representing National Association of Leather Manufacturers.) Tenth. The Italian Chamber of Commerce in their brief advocate the relief of fiscal burdens from all tanning materials, one of which pure cod oil plays a most important part, as manufacturers of certain leathers must use it. PARAGRAPH 41. Opium, crude or unmanufactured, and not adulterated, containing nine per centum and over of morphia, one dollar and fifty cents per pound; opium of the same composition, dried, powdered, or otherwise advanced beyond the condition of crude or unmanufactured, two dollars per pound; morphia or morphine, sulphate of, and all alkaloids of opium, and salts and esters thereof, one dollar and fifty cents per ounce; cocaine, ecgonine, and all salts and derivatives of the same, one dollar and fifty cents per ounce; coca leaves, five cents per pound; aqueous extract of opium, for medicinal uses, and tincture of, as laudanum, and other liquid preparations of opium, not specially provided for in this section, forty per centum ad valorem; opium containing less than nine per centum of morphia, six dollars per pound; but preparations of opium deposited in bonded warehouses shall not be removed therefrom without payment of duties, and such duties shall not be refunded: Provided, That nothing herein contained shall be so construed as to repeal or in any manner impair or affect the provisions of an act entitled "An act to prohibit the importation and use of opium for other than medicinal purposes," approved February ninth, nineteen hundred and nine. For opium, etc., see Merck & Co., page 30; Mallinckrodt Chemical Works, page 49. PARAGRAPH 42. PARAGRAPH 42-BARYTES. Baryta, sulphate of, or barytes, including barytes earth, unmanufactured, one dollar and fifty cents per ton; manufactured, five dollars and twenty-five cents per ton. BARYTES. STATEMENT OF H. J. KREBS, PRESIDENT OF THE KREBS PIGMENT & CHEMICAL CO. Will you give your name and address to the stenographer, please? Mr. KREBS. H. J. Krebs, president of the Krebs Pigment & Chemical Co. The CHAIRMAN. Mr. Krebs, we have allowed you 15 minutes. The CHAIRMAN. I say we have allowed you 15 minutes in which to make your statement. Mr. KREBS. Yes; I will be brief. On behalf of the Krebs Pigment & Chemical Co., of Newport, Del.; the Grasselli Chemical Co., of Cleveland, Ohio; and the Beckton Chemical Co., of Newark, N. J., who are among the principal lithopone manufacturers of this country, the following brief is submitted, referring to paragraph 55, lithopone, and paragraph 42, baryta: The principal raw materials used in producing lithopone are crude baryta and zinc ores, or other forms of zinc, although zinc ore is naturally the basic material. In addition to the above, numerous other chemicals are also required, the costs of which are higher in this country than abroad. Also in considering the crude materials we call your special attention to baryta, on which there is now a duty of $1.50 per ton, and which we are obliged to import principally from Germany, owing to there being no reliable home supply; also zinc ores, on which a varying duty must be paid, according to the zinc contents. Lithopone is purely a chemical product which contains barium sulphate as a component. This barium sulphate must not be confounded with native ground baryta, which is also used in the paint trade. Lithopone is extensively used in the manufacture of flat coat paints, linoleum, oilcloth, and the rubber industries. Labor is a factor which must be considered in the manufacture of lithopone, and we earnestly request your consideration of this item. For the comparative differences existing here and abroad we refer you to House Report No. 326, pages 305 and 370. No conditions have arisen since the enactment of the present rate to warrant any change in the rate of duty and we therefore urge that no change be made, and that the existing rate of 14 cents per pound be continued. It is suggested to place an ad valorem duty instead of a specific rate, and we earnestly urge your careful consideration before allowing such a change. With a specific rate of duty both the manufacturers and consumers know exactly what rate must be paid, whereas an ad valorem rate opens the question to endless discussion and consequent annoyance on account of the continually fluctuating change in the selling prices both here and abroad. There was imported into this country during the year ending June, 1911 (notwithstanding the present rate of 14 cents per pound), 5,409,520 pounds of lithopone. Special reference is made to this fact to show that even under the present rate of 11 cents per pound the foreign manufacturers, especially the Germans, are able to compete successfully in this country, and we believe that should any reductions be made in the present rate it will seriously affect our home production. It is a well-known fact that the markets of this country are often used as a dumping ground for surplus foreign stocks, especially from Germany, and we further feel that any reduction in the present rate will only afford foreign manufacturers a better opportunity to demoralize our home markets at the expense of the industry in this country and with the natural disastrous effect on the labor employed. In view of the foregoing we earnestly request that the present rate of 14 cents per pound be continued. The CHAIRMAN. Does any member of the committee desire to ask the witness any questions? That is all. PARAGRAPH 42-BARYTES. STATEMENT OF WM. A. BUDDECKE, PRESIDENT OF THE POINT MILLING & MANUFACTURING CO., MINERAL POINT, MO. We venture to submit to you the following brief statement of facts in relation to the production of barytes in this country. This material is mined almost entirely in the Southern States, there being operations in Missouri, Kentucky, Tennessee, North and South Carolina, Georgia, and Virginia. As you know, in Washington County, Mo., it is the principal industry, and over 50 per cent of the barytes mined in the United States comes from Washington County. The employees there do little else; the men work in the mines and their families clean and prepare the ore for factory uses. This company has a factory at Mineral Point, Mo., right at the mines and employs a full force of men in the production of this material for market, the operations being of a character that requires the factory to be run night and day, or to shut down completely. The competition on this material comes almost exclusively from Germany, where there are very large mines, and with their cheap labor it is possible to produce at a lower price than we can here in this country under present conditions. We attach herewith a letter recently received by one of our friends in East St. Louis, and inclosing samples, which we are sending to you in the original covers, and from these is evident the competition which exists in this industry. We would say further that 75 per cent of the consumption of barytes is in the Atlantic seaboard cities, and for years the price on the American product in New York, Philadelphia, and Boston has been at a figure that the German producers were willing to accept, and it has been a constant effort of the American producers to meet this price. You will note that with the letter from Holland is attached a sheet showing the prices worked out into tons of 2,000 pounds, adding the duty as at present, and showing the net price, delivered Atlantic ports, as per quotation. Now our situation is as follows: The average price for the tiff, which is the local name for barytes ore in Washington County, is $7 per net ton at the railroad to which must be added a small loading charge and freight to our factory, averaging 30 cents per ton. The ore in manufacturing shows a loss of 5 per cent, or 35 cents per ton. The freight on the manufactured product from Mineral Point to New York is $4.65 per ton, A fair estimate of cost is $5.50 per ton, making $17.80 per ton delievered New York as against $17.90 on the foreign product. This shows an extremely small margin, as at present, and on that we are working. To reduce the tariff means that every ton of foreign ore that comes into this country does not simply mean ore ton more used but displaces a ton of American mined and manufactured goods, and every ton means the employment of at least six men in the mining, hauling, and manufacturing. We therefore ask you to use your good offices to prevent damage to an industry that while not large it is a very valuable one and can be made still larger if properly protected, and on the other hand there is no demand made by any consumer of this material for a reduction in tariff, and that the only real benefit in PARAGRAPH 42-BARYTES. having the tariff reduced will be to some importing brokers at the seaboard. We would also state that the mining and manufacturing of this material is entirely free from any consolidation or understanding; that competition is very active, there being a greater factory production than the consumption requires; also that the present duty is not prohibitive, as import records show that every year a considerable quantity of the German product is brought to this country. We would also suggest that the railroad companies recognize the foreign competition, and have been willing to maintain a rate of freight which works out about 40 cents per ton per mile, and is as low as we can hope to obtain, and, unlike the German competition, we have no water route from this section to the Atlantic seaboard. We therefore trust you will do what you can to help the producers in this section, and prevent the mining and manufacturing of this material being obliterated by bringing into this country more of the foreign production. Yours, very truly, POINT MILLING & MANUFACTURING CO., Messrs. GEO. S. MEPHAM & Co., [Inclosure.] East St. Louis, Ill. ROTTERDAM, January 9, 1913. DEAR SIRS: We have pleasure in drawing your attention to a product for which we are very well posted for export to your country and we will be glad if you will give the present your very best attention. This product is heavy spar, or barytes. We know that a fair amount of business is already done in this product on your side. They have up to this date been buying from Hamburg, but as the sources of supply are situated nearer to Rotterdam, we are in a position to make you very advantageous offers for shipment via our port, and we trust that you will not fail to avail yourselves of this opportunity. The largest use of the above-named articles is made by manufacturers of lithophon, white lead, and carpet manufacturers. On account of its very heavy weight, it serves to add weight to the products in which it is mixed. It is also used by various other chemical works. For your guidance we have sent you a sample of this product and we can but advise you to follow up the sale of this stuff which we know to have already found a market in the States. We beg to quote without engagement: Price per 1,000 kilos (2,200 pounds) c. i. f., at New York, Boston, Philadelphia, and Baltimore. |