PARAGRAPH 56-PAINTS, COLORS, ETC.

cent ad valorem duty on alizarin, and under paragraph 24 of H. R. 20182 it is proposed to put a 10 per cent duty on paranitraniline, alpha naphthylamine, and other similar anilines, many of which are used in the manufacture of dry colors, but which are now on the free list. The situation presented to us is that it is proposed to reduce the duty on goods we manufacture in competition with Europe from 30 per cent to 20 per cent, while imposing a duty of 10 per cent on many of the anilines that we use in the manufacture of these colors, and which are now free; also by reducing the duty on other coal-tar dyes from 30 per cent to 25 per cent only.

This is a clear discrimination against the manufacturer of dry colors in the United States. If it is desired to reduce the duty on dry colors from 30 per cent to 20 per cent the duty on coal-tar dyes should be reduced from 30 per cent to 20 per cent, and alizarin, paranitraniline, and alpha naphthylamine should remain free of duty, inasmuch as they are not manufactured in this country, and must be imported from abroad. This seems to us a conclusive argument.

VERMILION RED CONTAINING QUICKSILVER.

Under the law of 1909 paragraph 52 imposes a duty of 10 cents per pound on this material. In H. R. 20182, paragraph 64, it is proposed to reduce this duty to 15 per cent ad valorem, or not less than 7 cents per pound. We ask that when considering this reduction the duty on quicksilver be taken into account, as unless the duty is reduced on quicksilver in proportion to the reduction made in the duty on vermilion red containing quicksilver, we will be entirely excluded from our home market.

We pointed out in a former brief, submitted to the Committee on Finance of the United States Senate on March 19, 1912, that during the year 1911 about 90,000 pounds of vermilion red, carrying a duty of 10 cents per pound, were imported. This is a very large percentage of the total amount consumed in the United States, and any further reduction in the duty that did not carry with it a corresponding reduction in the metal from which the vermilion is made would simply turn the business entirely over into the hands of the foreigners. We submit this for your earnest consideration.

PARIS GREEN.

Under paragraph 57 of the law of 1909, Paris green is dutiable at 15 per cent ad valorem. H. R. 20182 proposes to put the article on the free list. We pointed out in a brief submitted to the Senate Finance Committee in March, 1912, that there was the keenest competition among the manufacturers in this country on this article. We also called attention to the fact that we were discriminated against by Canada, who imposed a duty of 10 per cent on American Paris green, thus keeping us out of that market. If you put Paris green on the free list, you will invite the Canadian manufacturer to sell his goods in this country at a price lower than that at which the American manufacturer can compete, and his Government protects him in the exclusive enjoyment of the home trade.

This does not seem a reasonable attitude for your committee to take toward the manufacturers in this country. In the discussion before the Senate Finance Committee in March, 1912, it developed that there was a feeling that the manufacturers were asking an exorbitant price from the farmers for Paris green. The fact is that Paris green has been selling for approximately 13 to 15 cents per pound for several years. We know that in some cases retailers have charged 30 cents and as high as 50 cents per pound for Paris green to farmers when they needed it, but the manufacturers never got above 15 cents, so if an exorbitant price has been exacted from the consumer, it has been exacted by the small dealer, and not by the manufacturer: and if the removal of the 10 per cent duty now on Paris green would flood the market with imported green, it is fair to assume that the dealer would ask just as high a profit at a time when the farmer actually needed the green, and, consequently, the latter would enjoy no benefit of this apparent reduction in the first cost. Fifteen per cent is approximately our profit. If you take it away, you wipe out our business. We believe that we are entitled to at least as much consideration as is the Canadian manufacturer, and that at least a 10 per cent duty should be maintained.

The raw materials used in manufacturing Paris green are blue vitriol, arsenic, soda ash, and acetic acid. It is out of the question to think of importing acetic acid, because of the large content of water, so that putting it on the free list means nothing. Soda ash, which costs about five-eighths cent per pound, is made dutiable under paragraph 21 of H. R. 20182 at one-eighth cent per pound. Arsenic is free and blue vitriol is also made free. The latter article is largely exported, and the only

PARAGRAPH 56-PAINTS, COLORS, ETC.

importations that we have been able to trace in recent years have been importations of American-made blue vitriol sent abroad and shipped back to this country, so that while it appears that the material costs us no more than it costs the foreigner, it is a fact that the difference in labor is more than the 10 per cent asked for by the manufacturers. This is something that we do not care to discuss exhaustively, as you have information on the subject that is perhaps more conclusive than any we could bring to you. We ask, therefore, for at least 10 per cent on Paris green.

Permit us to respectfully ask whether it be a good policy to produce such a condition that the farmers must wait upon the pleasure of English and German manufacturers for 7,000,000 pounds of their most important insecticide? When the "bugs" begin to appear the farmer sends out urgent appeals for quick deliveries of Paris green. We buy our chemicals in the autumn, make our green in the winter and wait until early summer to sell it. Sometimes the "bugs" don't appear to any extent and we have to carry over a large stock of green to the next season.

If the farmer has to rely upon foreign green, a shortage of it would often send prices up to fabulous figures.

The demand for green from the farmers depends entirely on the number of "bugs" which appear during the season. This makes the manufacture of green a speculative business and even under present conditions, we makers are apathetic in regard to producing it.

Again, elaborate Federal and State laws exist to-day as to the proper method of making the green; the preventing of its being in any way adulterated; the restricting of the amount of soluble arsenic which it may contain; the way in which this poison may be distributed; the kind of package it shall be put in, with its net weight of contents. The law makes us state on every label that the amount of arsenious oxide combined with copper is not less than 50 per cent. We have to pay for a license in most States before we can offer these goods for sale. The retailer in these States can be arrested and fined if the green he sells does not conform to all the laws of his State. The law on these subjects varies in the various States. Let us suppose that a steamer brings in 50 tons of green and it is found that it doesn't exactly conform in composition to the Federal laws and also that the farmers are crying for green. Would the Government reject this lot and let the "bugs" eat up the crops, or would they let the farmer have any kind of green that Europe might please to send us? Then would the various States permit the sale of a green that did not comply with their State laws?

BLUES.

Blues, such as Berlin, Prussian, Chinese, etc., are now dutiable under paragraph 43 of the law of 1909 at 8 cents per pound. H. R. 20182 proposes, in paragraph 57, to make the duty 20 per cent, or not less than 3 cents per pound, or a reduction of about 62 per cent in the duty. The Ways and Means Committee report No. 325 shows that 190,000 pounds of these blues were imported in 1911, having an average value of 18 cents per pound. The proposed duty of 20 per cent would therefore be 3g cents per pound. This brings the duty paid cost to 22 cents per pound, which is below the cost of making these blues in this country. The chief ingredient of these blues is prussiate of potash, now dutiable at 4 cents per pound, which it is proposed to reduce to 14 cents. This is an apparent reduction in our favor of 23 cents per pound. But it must be borne in mind that it takes 120 pounds of prussiate of potash to make 100 pounds of Prussian blue. On this basis, the reduction amounts to only 2 cents per pound.

There is only a very small amount of prussiate made in this country, approximately 75 per cent of it being imported from Europe. The normal average price which we have paid for prussiate for the past few years has been about 13 cents per pound. The powerful chemical trust in Europe has now advanced the price to 164 cents per pound, and we are wholly at their mercy. There are but few agencies in this country from whom we can buy the foreign-made prussiate, and when we make a contract we do not know whether we are to receive German, Belgian, or English prussiate. On account of foreign competition, even at the duty of 4 cents per pound, the largest manufacturer in this country has been forced recently to go out of business. A reduction in the duty on blue means an increased importation, with a very much reduced revenue to the Government, whereas it is clear to us that the present importation of blue, paying a duty of 8 cents per pound, nets the Government a much higher revenue than would possibly be expected under the proposed order of things. At the same time it does not give the American manufacturer control of the home market but keeps him in sharp competition with his competitors abroad.

PARAGRAPH 56-PAINTS, COLORS, ETC.

We therefore ask for such consideration as an American manufacturer is entitled to. We do not ask for protection, nor for a tariff that will prohibit competition. We invite competition, but would ask to be permitted to enjoy a share of the trade on the same platform with outsiders.

We do not believe that we are getting this consideration under H. R. 20182, but, on the contrary, are being seriously discriminated against. We do not oppose the reduction in other colors that we manufacture, because corresponding reductions seem to have been made in the pigments used in their manufacture, but in the particular cases that we have pointed out it seems to us that the committee has not been fully informed of the effect of the proposed changes.

CONCLUSION.

We believe that the maximum revenue will be produced by equalizing the duty between coal-tar dyes, etc., and the dry colors made from the same.

We also believe, with respect to Paris green, that placing the article on the free list will wipe out whatever revenue the Government now enjoys, and there is Paris green imported even at the present duty of 15 per cent.

With respect to Berlin, Chinese, and Prussian blue we believe that the duty on these articles should not be lower than 8 cents per pound, if the revenue-producing principle is to be maintained.

The principle of tariff reduction is not lost by the adoption of our suggestion, as there are many reductions in other items that we manufacture against which we make no protest, because of the reasons pointed out.

All of which is respectfully submitted.

JANUARY 6, 1913.

ARTHUR S. SOMERS, Representing Dry Color Manufacturers.

BRIEF OF THE ROESSLER & HASSLACHER CHEMICAL CO., ON CERAMIC COLORS.

Hon. OSCAR W. UNDERWOOD,

NEW YORK, January 3, 1913.

Chairman Committee on Ways and Means,

House of Representatives, Washington, D. C.

SIR: We respectfully petition that the present rate of duty on ceramic colors, 30 per cent ad valorem, be retained and remain unchanged.

For the reason that these colors are metallic and vitrifiable preparations and substances, in powder and liquid form, composed of metal oxides with fluxes, to assist their melting.

The ceramic colors are also used by amateur artists for china and glass painting, and put up in vials and tubes separately or mixed with oil. The rich color effects being principally obtained by the use of precious metals, which limit their consumption to beautifying china and glassware, etc., making them more a luxury than a necessity of life.

CLASSIFICATION UNDER PAYNE-ALDRICH TARIFF ACT, 1909.

SCHEDULE A.-Chemicals, oils, and paints.

Paragraph 56: Ceramic colors proper, 30 per cent ad valorem. Imports, 1910-11, $16,334; 1911-12, $12,323. Artists' paints or colors (in bottles, packages, tubes, pans, cakes, etc.), 30 per cent ad valorem. Imports, 1910-11, $80,130; 1911-12, $106,940 (75 per cent ceramic colors and 25 per cent water-color paints).

PARAGRAPH 56-PAINTS, COLORS, ETC.

SCHEDULE B.-Earth, earthenware, and glassware.

Paragraph 110 Fusible enamels, 25 per cent ad valorem. Imports, 1910-11, $15,511; 1911-12, $14,604.

FREE LIST.

Paragraph 576: Glass enamel white for watch and clock dials, duty free. Imports, 1910-11, $21,702; 1911-12, $17,981.

White glass enamel, known as a color rather than an enamel, and a material for making color, rather than an enamel itself, heretofore duty free, according to recent decisions of the United States Court of Customs Appeals, Treasury Decision 32983, November 21, 1912, is now dutiable as ceramic colors at 30 per cent ad valorem.

SCHEDULE M.-Pulp, papers, and books.

Paragraph 412: Decalcomanias in ceramic colors, weighing per 1,000 sheets, 20 by 30 inches, under 100 pounds, 70 cents per pound and 15 per cent; over 100 pounds, 22 cents per pound and 15 per cent; all others (except toy), 40 cents per pound. Imports, 1910-11, $176,481; 1911-12, $171,838.

Description of ceramic colors.-The ceramic colors are a distinct article of commerce, comprising a great variety of vitrified preparations, commonly known as stains, color bodies, fluxes, fusible enamels, enamels (over and under glaze), glazes, etc., only suitable in coloring and decorating metal, porcelain, glass, pottery, and other earthen and clay wares.

The ceramic colors differ essentially from all other kinds of pigments, paints, colors, and dyes used for house painting and in the textile industries, since their application to develop the colors, bringing out the rich color effects and fix the same permanently on the ware, requires a firing process at a high temperature ranging from 900 to 3,000° F.

(Exhibit A, price list ceramic materials No. 12, recently issued.) The manufacturing and marketing of these ceramic colors is more. difficult than other lines of trade, since with the change of fashions in shades and colors, the matching of shades requires a well-trained and competent staff for research work, meaning considerable expense in time and money. Their manufacture necessitates experiments with costly raw materials before the desired shade effects are obtained. Large stocks of both raw materials and finished products are constantly kept on hand, which with the change of fashions do not find a ready sale.

Tariff. This industry, although established by us in this country nearly 30 years ago, has made only slow progress, due to the fact that the customs duty has at no time been adequate to equalize the advantage which centuries of experience give to the products manufactured in England, France, Germany, etc.

The present duty of 30 per cent on ceramic colors is too low a rate of duty considering the duty carried by their raw materials, being generally the same and in some instances considerably higher, there

PARAGRAPH 56-PAINTS, COLORS, ETC.

being no counterbalance for the higher cost of skilled labor, apparatus, machinery, materials, and supplies in general.

In all previous tariffs ceramic colors have been dutiable at 30 per cent ad valorem. Under the Dingley Tariff Act, 1897, litigation arose on account of some of the ceramic colors containing chrome, lead, and zinc, to have the same classified under the low paint and color schedule at a few cents per pound, not at all consistent with their value, when some of the more expensive colors, like maroons, purples, rubies, etc., the basis of which are the precious metals, are worth up to $20 per pound.

A manifest error of the Dingley Act was recognized and rectified in the Payne-Aldrich Act of 1909 by specifying that the ceramic colors be made dutiable at the proper rate by making special provision for ceramic colors according to the enactment of the following paragraph: "All glazes, fluxes, enamels, and colors used only in the manufacture of ceramic, enameled, and glass articles, thirty per centum ad valorem.”

The white glass enamel, for watch and clock dials, duty free, having been held to be untenable, and fusible enamels enumerated under the glass schedule, continued from previous tariffs, dutiable at 25 per cent ad valorem on scientific principles, as both these materials contain metallic oxides, should in fact be listed as ceramic colors and be dutiable at 30 per cent ad valorem.

Ceramic colors proper: Artist's ceramic colors in tubes, etc.; fusible enamels, glass enamel white, $119,381 (30 per cent ad valorem). Approximate revenue, $35,814.30.

Artist's water-color paints (25 per cent artist's paints), $23,483 (30) per cent ad valorem). Approximate revenue, $6,344.90.

Although the ceramic color item is not very large, the same offers a good opportunity for revenue, since the ultimate consumer is perfectly willing to pay for the luxury of beautifully decorated china, tableware, and vases. From a revenue point of view any reduction in duty would not be counterbalanced by an increase in the imports, and as the ceramic colors are used primarily in the fine arts, for deco