PARAGRAPH 61-REFINED CAUSTIC POTASH. EXHIBIT H. [To brief of Niagara Alkali Co.] STATEMENT. In order to show the extent to which the German manufacturers are going in their efforts to put us out of business, I beg to call your attention to the fact that, inasmuch as we were forced to sell at the present ruinously low prices in the United States in order to meet the competition brought about by German manufacturers, we decided we would attempt to sell at these same prices in Germany, where they were holding up the old-time high prices. We found that with the prices quoted we could get a better price in Germany than we had to sell this material in the United States to meet competition, even adding the freight. The first discovery we made was that we had to pay duty to get our material into Germany, which put us in about the same position, leaving us the same price on our German sales as we would realize here at home. We then found out that the German steamship lines had been instructed by their German offices to refuse any caustic potash shipments offered them for Germany and Mediterranean ports. In this way we are debarred from the foreign market by the protection afforded German manufacturers by the German Government and also by the refusal of steamship lines to transport our product to German ports, and we are forced to sell here at home at the sacrifice price which the Germans have made in order to put us out of business. Total 1912 basis, first 10 months, estimated, $92,220. Owing to rapid increase in use of caustic potash in the United States there will probably be no decrease in above imports if duty of 1 cent be imposed. EXHIBIT J. [To brief of Niagara Alkall Co. Letter to Representative Simmons.] Hon. JAS. S. SIMMONS, NIAGARA ALKALI CO., Niagara Falls, N. Y., July 29, 1911. A Member of Congress, Washington, D. C. MY DEAR MR. SIMMONS: I have for acknowledgment your kind forwarding of the Daily Consular and Trade Reports for July 25, 1911, containing marked copy of report from the Brunswick consul headed "Peace in the German potash industry.' careful reading of this statement will doubtless convince anyone that the "peace" referred to consists merely in the American purchasers of potash having given up in despair of securing the benefit of low-priced contracts which they had made, and of having accepted the terms of the German potash syndicate, with the hope that they may be able to now overthrow the contracts which they have been for so long at PARAGRAPH 61-REFINED CAUSTIC POTASH. tempting to defend, and on the strength of which they made every effort to secure American intervention in preventing the German potash law from being applied to said contract. You can readily see that this does not relieve our individual situation in the least, but leaves us held to pay the syndicate price, which is practically equivalent to our having to pay the tax. That is, if we carry out our present contract made in good faith with the independent mines, we must pay the German tax. If we join with other American interests and claim that these contracts are void, we must then pay a price to the syndicate practically equal to the independent contract price plus the tax, so that the actual result is to leave us within a very few dollars of where we have been all the time since the situation complained of was inaugurated. We are therefore in the same position as to needing relief and feel that the only adequate relief which can be afforded us is the imposition of the 1-cent duty, now applying to refined potash, on all caustic potash imported 85 per cent or over in grade. While it is true that the German manufacturers of caustic potash also purchase their raw material, muriate of potash, from the syndicate, they receive special prices for this raw material used in chemical manufacture, and, being themselves members of the syndicate, have the advantage of the special rebate allowed to such syndicate miners who have chemical plants. In this way they secure their raw material at practically the price we had expected to secure ours from the independent miners, manufacture their caustic potash with cheap labor and under thoroughly established conditions, ship same into the United States, where they have long been established in the market, and we are forced to meet this competition. The matter of price charged for the caustic potash does not enter into the question, as we are perfectly satisfied with the present prices, provided we can secure our share of the business. You can readily see that to do this we must be in position to offer some inducement to American manufacturers who have long been using the imported product, and if with the other adverse conditions already set out we have to still further reduce the price to secure the business we can not make both ends meet. If, however, the imported material is placed at a disadvantage, we can secure the business, the American consumer will pay no more for his goods, and we will be able to meet the German competition regardless of the unfair conditions imposed by the German law. We trust that a thorough realization of these conditions will induce Congress to afford us the relief desired and so eminently justified. Thanking you for past favors and for your further kind consideration of the matter, I am, H. D. RUHM, Vice President and General Manager. Very truly, yours, ROBERT S. WADDELL, OF PEORIA, ILL., ENTERS PROTEST AGAINST TARIFF ON CHLORATE OF POTASH. BUCKEYE POWDER CO., CHAIRMAN WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. DEAR SIR: I desire to file the following brief on the chemical schedule: I respectfully protest against any tariff on chlorate of potash, because it will not produce an adequate revenue to justify a protective tariff. There are three plants in the United States manufacturing this chemical by the electrolytic process, located at Niagara Falls, in Vermont, and in the Saginaw-Bay City, Mich., fields. The entire output of these plants is controlled by J. L. and D. S. Riker, 46 Cedar Street, New York City, who, because of such monopoly, require the public to pay exorbitant profits. The present tariff of 2 cents a pound enabled J. L. and D. S. Riker to make an agreement with the chemical pool of Europe by the terms 78959°-VOL 1-13- -24 PARAGRAPH 61-REFINED CAUSTIC POTASH. of which the said American monopolists shall not export any chlorate of potash to foreign countries and foreigners shall not sell or quote prices to the American trade. This agreement prohibits a revenue from all the large manufacturers of Europe and nullifies the tariff laws of this country. Will Congress legislate to create and foster this conspiracy by continuing the tariff on which it is founded? Remove the tariff and there would remain no inducement for foreigners to enter into an agreement to close the markets of this country to themselves. Chlorate of potash costs to manufacture abroad 3 cents per pound in Sweden, 3 cents per pound in France and on the Continent. The Rikers sell at 94 cents, and it costs less than 4 to manufacture it. The Rikers are not innocent violaters of the law. John L. Riker was the largest stockholder of the Laflin & Rand Powder Co., and took part in the conspiracy that formed the Du Pont Powder Trust, and his successors will profit by the dissolution that the court has just entered. From one little distribution of the usufruct in that case I extract the following from the record: Delaware investment stock (exchanged) issued to: The record in The Government v. Du Pont Powder Trust shows that the Laflin & Rand Powder Co., of which John L. Riker was a director, was a party to the "world agreement," dividing the markets of the world between the American and foreign trusts. That agreement prohibited foreign manufacturers from quoting or selling powder to "the Government of the United States of America." I urgently recommend that the tariff law contain a provision that if it be proved to the satisfaction of the President that should any individual, firm, or corporation, protected on any article by a tariff, enter into a conspiracy or agreement dividing markets, or otherwise defeating this Government in the collection of the revenue provided by the act, or shall make an agreement with foreigners to manufacture foreign brands in this country, then, in either case, the President shall place such article on the free list. I suggest this as a rebuke to those who, for private gain and to create a monopoly to rob the public, deprive the National Treasury of its just dues. Soliciting the kind consideration of your committee, I remain, Very respectfully, ROBERT S. WADDELL. PARAGRAPH 64-POTASSIUM CYANIDE. PROTEST AGAINST ANY DUTY ON CHLORATE OF POTASH. Hon. J. D. POST, THE FIRST NATIONAL BANK, DEAR SIR: The undersigned hereby respectfully protests against any tariff upon imports of chlorate of potash for the following reasons: 1. The present tariff of 2 cents a pound has resulted in an illegal agreement between the American monopolists who control the American production of chlorate of potash and the European chemical pool, the effect of which is that the American monopoly is not to export any chlorate of potash to foreign countries and the European monopoly shall not sell or quote prices thereon to the American trade. 2. From this agreement it results that there are no importations, and therefore no revenue to the United States from that source; and the American monopoly charges consumers 9 cents a pound for a product that costs less than 4 cents a pound to produce. 3. A brief that has been filed with the chairman of the Committee on Ways and Means of the House of Representatives by Mr. R. S. Waddell, of Peoria, Ill., gives the details of the foregoing statements and also additional reasons why this article should be placed on the free list. You are respectfully urged to use your influence and vote to secure the placing of chlorate of potash on the free list in the interests of the American manufacturers who use that product, and who, by reason of this tariff, are obliged to pay an exhorbitant price therefor, without a cent of incidental benefit to the Government of the United States. Respectfully, yours, JNO. H. DRURY. (A communication identical with the above was filed by Harry C. Downey, on behalf of W. C. Downey & Co., Springfield, Ohio.) PARAGRAPH 62. Hydriodate, iodide, and iodate of potash, twenty-five cents per pound. See also Mallinckrodt Chemical Works et al., page 50. PARAGRAPH 63. Nitrate of potash, or saltpeter, refined, one-half of one cent per pound. PARAGRAPH 64. Prussiate of potash, red, eight cents per pound; yellow, four cents per pound; cyanide of potassium, twelve and one-half per centum ad valorem. POTASSIUM CYANIDE. BRIEF SUBMITTED BY THE ROESSLER & HASSLACHER CHEMICAL CO., NEW YORK CITY. Hon. OSCAR W. UNDERWOOD, NEW YORK, January 4, 1913. Chairman Committee on Ways and Means, House of Representatives, Washington, D. C. SIR: We respectfully submit that the two principal commercial cyanide salts be dutiable according to their intrinsic value, as follows: Potassium cyanide, at 2 cents per pound; present duty, 12 per cent-2 cents per pound. Sodium cyanide, at 24 cents per pound; PARAGRAPH 64-POTASSIUM CYANIDE. present duty, 25 per cent 4 cents per pound. Or if, for revenue purposes, a uniform rate of duty be desired, that both potassium cyanide and sodium cyanide be dutiable at 2 cents per pound. Even at the higher rate of duty, cyanide of potassium can not now be profitably made here, so that an actual increase in revenue should result. The first proposed duties on cyanides gives the opportunity for a scientific revision, proportioned to their intrinsic values, both as to quality and price. Uses of cyanides.-Both the potassium and sodium cyanide are extensively used for electroplating, case hardening, fumigation (the generation of hydrocyanic-acid gas being the best means of destroying scale insects on citrus and other fruit trees), and principally for the extraction of the precious metals from ores and tailings by what is known as the modified MacArthur-Forrest cyanide processes. Value comparisons.-Theoretically 100 per cent potassium cyanide contains 40 per cent cyanogen; 100 per cent sodium cyanide, equivalent to 132 per cent potassium cyanide, 53 per cent cyanogen. The available cyanogen in both salts being the valuable active principal of the cyanide, the potassium and sodium ingredients simply acting as carriers for holding the cyanogen, the molecule of sodium having a larger carrying capacity for cyanogen than the molecule of potassium. Commercially-Potassium cyanide. The highest test for this product is 95/96 per cent, with cyanogen contents of 38.4 per cent. Sodium cyanide, equivalent to 130 per cent cyanide of potassium, has a cyanogen content of 52 per cent. The comparative values of the sodium and potassium salts hence are as 130 per cent is to 95 per cent. Therefore in order to place sodium cyanide on an equal basis with potassium cyanide the duty on the sodium salt should be as 95: 2 cent=130:X, making potassium cyanide 2 cents per pound specific, equal to 12 per cent ad valorem; sodium cyanide, 2 cents per pound specific, equal to 12 per cent ad valorem; or should revenue be the object in view, a uniform rate for both potassium and sodium cyanide of 24 cents per pound. History. Any reduction in sodium-cyanide duty below 12 per cent ad valorem would threaten the abandonment of the manufacture of sodium cyanide, same as the enactment of the Dingley tariff act of 1897, making a reduction in the rate of duty from 25 per cent to 12 per cent ad valorem, caused the manufacture of potassium cyanide to be abandoned in this country, and compelling at the same time the ultimate closing down of several prussiate of potash factories supplying the raw material. CLASSIFICATION UNDER THE PAYNE-ALDRICH TARIFF ACT, 1909. Potassium cyanide, paragraph 64, 12 per cent ad valorem. Present market value, 8 pence per pound, equal to 16.22 cents United States currency, f. o. b. European seaport. Twelve and onehalf per cent is equivalent to 2 cents per pound specific. Sodium cyanide, paragraph 3, 25 per cent ad valorem. Present market value, 7 pence per pound for 100 per cent, equal to 9 pence |