PARAGRAPH 54-WHITING. when prices are high, because of the rapidly increasing load of duty added onto the higher price. Finally, I wish also to say that the tariff committee of the Paint Manufacturers' Association will be only too glad, at any time, to render any assistance they may be able to give in expert investigations to insure equitable and scientific readjustment of the present tariff. Respectfully submitted. R. S. HUBBARD, Chairman Tariff Committee Paint Manufacturers' GRIFFIN DRUG CO., OF PEEKSKILL, N. Y., URGES REDUC- Hon. OSCAR W. UNDERWOOD, PEEKSKILL, N. Y., January 10, 1913. Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: Won't you please look into the tariff on white lead? We understand the Smelters' Trust, controlled by the Guggenheims, make the price on all the lead made in the United States, and Mr. Guggenheim has been in the Senate voting on the tariff on goods he controls. Reduce the tariff on lead and give the poor man a chance to paint his house, which he can't do now. We are paying $7 per hundred pounds for lead, and we are told they (the Lead Trust), are selling the same thing in London for $4. We are Progressives, but we hope you and President Wilson will make good, so there will be no need of a Progressive Party. Yours, very truly, PARAGRAPH 54. GRIFFIN DRUG CO. Whiting and Paris white, dry, one-fourth of one cent per pound; ground in oil, or putty, one-half of one cent per pound. For Paris white, see also Frederick N. Tirrell, page 131. WHITING. THE HIGGINSON MANUFACTURING CO., OF NEWBURGH, N. Y., SUBMIT BRIEF ON WHITING AND PARIS WHITE. To the WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. SIRS: We, as manufacturers of whiting and Paris white, wish to enter a protest against the proposed reduction in duty on whiting and Paris white, and respectfully request that the present tariff on these commodities be maintained and for the following reasons: First. There are no chalk deposits in this country from which the American manufacturer can draw his supply of raw material, hence all chalk and cliff stone must be imported from England and France, and ocean freight paid on the same. The advantage to the foreign manufacturer is at once apparent; he has his whiting factory adjoining his chalk quarry. Second. There is no demand from the American consumer for a reduction in the duty on whiting and Paris white. The present PARAGRAPH 54–WHITING. prices are low, and the freight rate usually determines the market in which the buyer places his order. There is no combination or or trust to maintain prices, and competition is and always has been keen. Third. The yearly importations of chalk and cliff stone amount to about 100,000 tons, which is manufactured into whiting and Paris white, the industry furnishing employment to laboring men of the United States and pays them, in the aggregate, approximately $500,000 per annum. The daily wage ranges from $1.75 to $3, as against less than one-half of this sum in the same industry in England. Fourth. The crude chalk, from which whiting is manufactured, contains a very large percentage of moisture, sand, and flint, which is eliminated in the process of manufacture and will average about 25 per cent; in other words, a ton of crude chalk produces only threequarters of a ton of whiting. The amount so lost the manufacturer in this country is obliged to pay for, both cost f. o. b. shipping point in England or France and cost of ocean freight on the same. Fifth. During the last half of the year 1912 the cost of ocean freight has advanced to such an extent the delivered price of the crude chalk to the manufacturer in the United States has advanced approximately 35 per cent to 40 per cent. Sixth. The industry as a whole is not a large one, and if the entire quantity of whiting and Paris white consumed in this country was imported the revenue to the Government would be small, and to obtain this would mean the sacrifice of approximately $500,000 yearly which is paid to labor. We have endeavored to put before you, in a brief way, the main facts in connection with the industry, and sincerely hope wou will retain the present duty of one-fourth of 1 cent per pound. Respectfully, yours, THE HIGGINSON MANUFACTURING CO., NEWBURGH, N. Y., December 18, 1912. BRIEF OF M. EWING FOX & CO., NEW YORK, N. Y. Hon. STEVEN B. AYRES, NEW YORK CITY, January 9, 1913. Congressman, Washington, D. C. SIR: Referring to proposed changes in tariff and the hearings on Schedule A (paints, oils, and chemicals) by the Ways and Means Committee of the House of Representatives: We manufacture calcimines, paints, and varnishes, in which some of the materials that will be considered are used in large quantities. We urge your consideration of the following statement and its presentation to the committee if you think best: Chalk (crude or lump; now on free list).-Is only found in Europe, is very cheap, and is used in great quantities for the manufacture of whiting and Paris white. Any duty placed upon it would result in considerably higher prices for the materials made from it, reduced consumption by the public, loss of business to American manufac PARAGRAPH 54-WHITING. We strongly protest turers, and loss of employment to their men. against any tariff being imposed on this material. Chalk (ground or powdered; now on protected list). Some of this is simply the crude chalk passed through ordinary separating and grinding processes, the cost of which is considerably more in America than in Europe. We estimate this manufacturing cost to be at least 50 per cent more in United States than abroad, and believe that such a duty should be imposed. Whiting and Paris white (now on protected list).-These two materials are practically alike, the latter being made from a slightly harder kind of chalk and by a more elaborate method. The chalk is dug from hillsides and pits adjoining certain European waterways, is then crushed, washed, refined, graded, dried, recrushed or ground, packed, and shipped direct from adjoining wharves to various American seaports, particularly those in Canada, Central and South America. Very little of it is sold in United States because the present tariff is sufficient to protect our manufacturers. Most English manufacturers of Whiting and Paris white are also owners of chalk mines, so that if the tariff is lowered sufficiently to enable them to compete with United States manufacturers (to whom they are now simply selling their crude chalk) the latter will be simply eliminated, their investments ruined, and their employees thrown out of work. We made a careful investigation of English chalk, whiting, and Paris white mines and plants in 1911, and found the cost of production there much lower than in United States. English labor was plentiful, intelligent, and industrious, the average workman received $10 per week of 60 hours (about 17 cents per hour). The same man could not be duplicated over here for less than $15 per week of 54 hours (about 28 cents per hour). The English building, machinery, clerical, and sales costs were also much lower than ours, so that we do not see how it would be possible for the United States manufacturers of whiting and Paris white to compete, unless protected by a tariff of at least cent per pound, which is, we believe, the present duty on such material. Shellac (dry gum in flakes; now on free list).-This is made principally in the Orient and is imported in large quantities. It is the crude material from which many other materials, varnishes, and lacquers are made in the United States, and has hitherto been admitted free. The only effect of placing a tariff upon it will be an increase in the price of materials made from it to the public and an increase in revenue to the Government. There are practically no American substitutes for shellac. We protest against any duty being imposed. Summary. We believe that to as large an extent as the necessities of the national finances permit, all raw or semiraw materials should be admitted free, but all manufactured materials should be taxed, particularly those competing with American industries already established, unless the latter are members of a trust or similar combine. There are no trusts, combines, or anything of a similar nature manufacturing whiting, Paris white, powdered chalk, or shellac varnishes. All American manufacturers of these materials are and always have been competing keenly for trade. PARAGRAPH 55-SULPHIDE OF ZINC. In conclusion. We do not manufacture powdered (ground) chalk, whiting or Paris white, but use these materials in very large quantities in the making of calcimines, water-paints, etc. Our statements are thus unprejudiced. If the present duties are reduced, we will simply buy the whiting and Paris white from various European manufacturers. We believe this course will be also adopted by our various competitors and will only result in injury to the present American manufacturers and their employees. The difference in cost to the calcimine and paint manufacturers will be so small (possibly 10 cents per 100 pounds) that it will be absorbed by us or by the dealers to whom we sell our products. It will not reach the general public because the average person does not buy more than 1 pound annually. Yours, very truly, PARAGRAPH 55. M. EWING Fox & Co. Zinc, oxide of, and white pigment containing zinc, but not containing lead, dry, one cent per pound; ground in oil, one and three-fourths cents per pound; sulfid of zinc white, or white sulphide of zinc, one and one-fourth cents per pound; chloride of zinc and sulphate of zinc, one cent per pound. See J. H. Krebs, page 300. SULPHIDE OF ZINC. BRIEF OF GRASSELLI CHEMICAL CO. Hon. OSCAR W. UNDERWOOD, CLEVELAND, OHIO, January 2, 1913. Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: The Grasselli Chemical Co. respectfully submits the following in support of its belief that no change should be made in the present tariff rates on the following items: Paragraph 62. Acetate of lead, white and brown. Paragraph 66. Sulfide of zinc, or white sulphide of zinc (lithopone). Paragraph 67. Chloride of zinc. Paragraph 71. Hyposulphite of soda-sulphide of sodium-silicate of soda. This company manufactures and sells the above chemicals. It is an Ohio corporation, originally started in 1839, at Cincinnati, Ohio. In 1885 the company was incorporated under the Ohio laws. The company has manufacturing plants, warehouses, and distributing stations in many of the large cities of the country, all of which represent a very heavy investment and give employment to many thousand men. The company is familiar with the manufacture of heavy chemicals both here and abroad, and from its experience knows that Germany is becoming more and more aggressive, in the distribution of its products, to foreign countries, especially the United States. The reason for this is that Germany has two great advantages: First, the difference in wages, which naturally decreases the cost of production (see H. Rept. No. 326, pp. 305 and 370); and second, PARAGRAPH 55-SULPHIDE OF ZINC. the protection afforded by their "Syndicates," "Cartels," "Selling associations," etc., which are fully defined in House Report No. 326, page 379. These associations are united for their common good, have the approval of the Government, and prevent individual competition. A careful consideration of this absolute control of the industry in the principal competing country must lead to the conclusion that it would be an easy matter for the German producers to jointly export into this country any quantity of goods, even at a small individual loss, for the purpose of dumping their surplus production and thereby causing a general demoralization of our markets. From the above it is also evident how impossible it is to export similar chemicals from this country into Germany. We therefore feel that any reductions in the existing rates on the articles mentioned would result in an increased production abroad and a greater exportation to this country, with the natural disastrous. result of probably forcing the American manufacturers either to discontinue or curtail their operations. In either event, a large number of American workmen would be deprived of employment and the foreign producers and workmen would reap the benefit. In our opinion, and we earnestly ask your consideration of it, the present rates on the above items should be continued without change. No conditions have arisen since the enactment of the present tariff which will justify any reductions. Having especially in mind the conditions existing abroad, as above set forth, we submit the following list of chemicals, all of which are manufactured by this company, and none of which now carry a prohibitive duty, being freely imported, as the customs statistics will prove, and therefore request that no changes be made, and that the present rates be allowed to continue, and with special reference to paragraph 62, acetate of lead, which has had a differential rate between white and brown, and also paragraph 71, sulphide of soda, in which special distinction is made between the product containing a percentage over and under 35 per cent of sulphide of soda, as more fully explained later. Paragraph 62. Acetate of lead, white and brown. The present duty of 3 cents per pound on the white and 2 cents per pound on the brown should remain unchanged, especially the differential of 1 cent as between the two grades, for the reason that the white is more refined and expensive to manufacture. The average selling price of the acetate of lead and the average cost do not permit of more than a fair manufacturer's profit as the duty stands to-day, and by reason of the cheaper material supply and cheaper labor conditions of the foreign manufacturers the manufacture of these articles in this country would greatly suffer if the present duties were lowered. A domestic overproduction also exists in this country, and which fact should be taken into consideration. Paragraph 66. Sulphide of zinc (lithopone).-Even under the present duty the importations have largely increased-in 1910, 2,300,000 pounds and in 1911, 5,400,000 pounds. It will therefore be seen that the duty is not at all prohibitive and that the foreign manufacturer is an active competitor in this market. In view of these large |