PARAGRAPH 64-POTASSIUM CYANIDE. per pound for 130 per cent, equal to 18.45 cents United States currency, f. o. b. European seaport. Twenty-five per cent equivalent to 4 cents per pound specific. Import records under potassium cyanide, which include all cyanides imported, do not give a true and correct idea of importation or values per unit after deduction of nondutiable charges. For the past six years the identity of cyanides of potassium was in dispute; various sodium cyanide mixtures adjusted to 98-99 per cent cyanide (39 per cent cyanogen) were claimed for entry under the low 121 per cent duty rate. The difference between the various cyanides was finally recognized and definitely fixed by a recent General Appraisers' decision, T. D. 326801, abstract 29108, June 27, 1912, so that under the present laws the import records will hereafter give a true record, enumerating separately the potassium and sodium cyanide salts. According to a second ruling of the Board of Appraisers, T. D. 32823, September 17, 1912, abstract 29723, the mixtures of both cyanide salts in various proportions were also classified as falling under the higher rate of duty. SUGGESTED MODIFICATION OF DUTIES. Average imports of the last six years, 2,665,775 pounds, $48,603.25. We therefore estimate a revenue as follows: All as potassium cyanide, 2,500,000 pounds, at 2 cents per pound, $50,000; 50 per cent each potassium and sodium cyanide, 1,250,000 pounds, at 2 cents per pound; 1,250,000 pounds, at 2 cents per pound; total, $59,375. All as sodium cyanide, 2,500,000 pounds, at 2 cents per pound, $68,750. Or uniform rate for both potassium and sodium cyanide, at 21 cents per pound, $68,750. With the proper adjustment of the duty of the two cyanide salts on scientific principles, ample revenue will be provided for the Government, and the producer and consumer will be encouraged to develop their opportunities. We therefore petition that the rates of duty for these salts be fixed -for potassium cyanide, at 2 cents per pound specific; sodium cyanide, at 23 cents per pound specific; or on a revenue basis, at a uniform rate for both potassium and sodium cyanide, at 2 cents per pound. Respectfully submitted. THE ROESSLER & HASSLACHER CHEMICAL Co., PARAGRAPH 65-MEDICINAL PREPARATIONS. PARAGRAPH 65. Medicinal preparations containing alcohol or in the preparation of which alcohol is used, not specially provided for in this section, fifty-five cents per pound, but in no case shall the same pay less than twenty-five per centum ad valorem; calomel, corrosive sublimate, and other mercurial medicinal preparations, thirty-five per centum ad valorem; all other medicinal preparations not specially provided for in this section, twenty-five per centum ad valorem: Provided, That chemicals, drugs, medicinal and similar substances, whether dutiable or free, imported in capsules, pills, tablets, lozenges, troches, or similar forms, and intended for medicinal purposes, shall be dutiable at not less than the rate imposed by this section on medicinal preparations. For medicinal preparations n. s. p. f., etc., and calomel etc., see also Mallinckrodt Chemical Works, page 50; Italian Chamber of Commerce, page 108; John F. Queeny, page 82; Verona Chemical Co., page 72. MEDICINAL PREPARATIONS. BRIEF SUBMITTED BY BAUER CHEMICAL CO., NEW YORK CITY. Hon. OSCAR UNDERWOOD, NEW YORK, January 7, 1913. House of Representatives, Washington, D. C. DEAR SIR: We understand that in the contemplated revision of the tariff your committee is about to consider the chemical schedule. In this connection we would respectfully urge: First. That the 25 per cent ad valorem duty on medicinal preparations and chemical compounds be wholly eliminated or reduced by at least 50 per cent. Second. That the duty per pound of 55 cents on medicinal preparations in the manufacture of which alcohol is used be abolished. Naturally the effect of such changes on wages is of primary importance. A revision of the tariff that will in any appreciable degree disturb economical conditions or furnish a pretext for certain classes to dictate terms of employment tending to lower the standard of living can scarcely be viewed with favor. On this point we submit that the manufacture of medicinal preparations in this country is no more expensive than in the principal European countries, Germany and England, for instance. In this cost the item of labor is relatively very much smaller than in the case of shoes, clothing, machinery, etc. The principal cost lies in the raw materials and expert knowledge, together with the sales cost. Automatic machinery, generally recognized as having reached a higher degree of efficiency and a larger capacity in the United States, thanks to American ingenuity and enterprise, enables the manufacture of such preparations here at a cost as low if not lower than in the Old World. In the trade it is a matter of common knowledge that a large number of American manufacturers of medicinal prepararions annually transact an extensive export business. Many of them maintain branch offices in nearly all European countries; in Australia, South America, and sections of Asia and Africa, successfully competing with similar articles of European manufacture. Placing medicinal preparations and chemical compounds on the free list would not cause or stimulate serious competition by European products. This is particularly true of articles protected by PARAGRAPH 65-MEDICINAL PREPARATIONS. letters patent, where the exclusive right of manufacture is vested in the patentee. Where the patented article is manufactured in Europe the cost to the American consumer is unnecessarily 25 per cent higher through the present rate of duty. In such a case obviously the consumer pays the duty and can obtain the article only from the patentee, as no one in this country can legally manufacture it. As a matter of fact, the duty of 25 per cent is in actual practice 30 per cent, as no importer would care to handle foreign-made articles on a margin of less than 5 per cent. The result is that American manufacturers can and do keep their prices more than 30 per cent above European parity. A reduction of the rate to even 10 per cent would still be ample protection to the American manufacturer, and would also discourage many of them from advancing their prices more than 15 per cent over those of Europe. It is confidently believed that under an average rate of 10 per cent the Government would derive more revenue than it does at present, and it would seem reasonable to expect that such a reduction in the tariff would result in lower prices on American-made articles and will leave a handsome margin of profit. Here, again, the consumer will be the gainer. With regard to the rate on preparations in the manufacture of which alcohol is used, it is important to remember that the internalrevenue tax on denatured alcohol was abolished some time ago. Hence the present customs duty on preparations of this character would seem to be as unnecessary as it is antiquated. Surely no competition need be feared, inasmuch as denatured alcohol is produced in this country at a lower cost than in Europe. We thoroughly appreciate the diffculty of adjusting tariff duties upon a basis that will meet the approval of all commercial interests without discriminating against any particular industry or geographical section of the country. When the rate of duty can be lowered without the probability of profitable foreign competition, without danger of reducing wages, but, on the contrary, to lower the cost to the consumer, plain business principles, simple justice, and the welfare of the public, aside from any political advantage that might reasonably be expected, would seem to demand that that change be made. Please accept our high appreciation of your courtesy in considering the suggestion herein set forth, and believe us, Very truly, yours, BAUER CHEMICAL CO., By T. W. HEHMEYER, Resident Manager. BRIEF SUBMITTED BY JACOB WEIL, NEW YORK CITY. Hon. OSCAR W. UNDERWOOD, Chairman Ways and Means Committee, DECEMBER 21, 1912. House of Representatives, Washington, D. C. DEAR SIR: As chairman of the committee on public health in the board of aldermen in this city, New York, I kindly request you and your honorable body, in connection with the chemical schedule in the PARAGRAPH 65-MEDICINAL PREPARATIONS. proposed tariff bill, to put medicinal malt preparations containing no alcohol on the free list. All medicinal malt preparations that contain no alcohol are used in marasmus and atrophy cases in infants. These diseases exist principally amongst the poorer classes through malnutrition. Most of these preparations are used in children's hospitals supported by benevolent and charitable organizations. Therefore, I ask you and your honorable body in the name of these institutions not to tax them or the sick infants for an article that can not be obtained here, and which does not conflict or compete with any goods manufactured in this country. These malt preparations containing no alcohol have been in use as infant food for about 14 years in the United States with such good results as you yourself can see from the report of Dr. W. H. Guilfoy, registrar of the department of health of the city of New York. Deaths and rates per 1,000 children living under 1 year of age: If we compare the rate of 1898 with that of 1911, we obtain a decrease of slightly over 40 per cent. If we compare the rate of 351 per 1,000 for the months of July, August, and September, of the year 1898, with the rate of 145 per 1,000 for the corresponding months of the year 1911, we find a decrease of almost 60 per cent. Now, if you and your honorable body will consider the mortality of infants before these medicinal malt preparations containing no alcohol were imported, you readily can realize what great good has been accomplished through the use of them. And as they are mostly consumed by the poor and by charitable institutions, you can clearly see what a true humane act it would be to allow these medicinal malt preparations containing no alcohol to be admitted duty free. As I have stated before, as I am chairman of the committee on public health and a member of the committee on public charities, besides being interested in many charitable institutions, I am in a fit position to see what a great public benefit it would be. Therefore, gentlemen, I pray that you will give this your favorable consideration. Very respectfully, yours, JACOB WEIL. BRIEF OF YAHR & LANGE DRUG CO., MILWAUKEE, WIS. HON. OSCAR W. UNDERWOOD, House of Representatives, Washington, D. C. DEAR SIR: We wish to call your attention to a proposed change in the tariff on chemicals, and to supplement the facts presented to the Ways and Means Committee by Mallinckrodt Chemical Works PARAGRAPH 65-MEDICINAL PREPARATIONS. of St. Louis. The present duties of 25 per cent ad valorem are not sufficient to overcome the lower cost to foreign manufacturers, and if these rates are reduced, the importation of foreign chemicals, principally from Germany, which has been steadily increasing for years, will compel American manufacturers to discontinue the manufacture of many articles they now produce. We believe that a reduction on medicinal chemicals would not benefit the ultimate consumer, the sick, as the cost of the ingredients in physicians' prescriptions bears little relation to the price charged for compounding the same. The purity of American-made chemicals we believe to be vastly superior, as a rule, to that of like chemicals imported from abroad. American manufacturers of chemicals employ a large number of chemists and skilled workmen, to whom good wages are paid. A reduction of the present duties would probably inflict a material loss not only on the manufacturer, but would cause a reduction of wages and throw a good many workmen out of employment. To our mind, apparently nothing can be gained by a reduction in duties on medicinal and fine chemicals, and we believe a retention of present duties is both rational and in the general interests of the public. We submit this statement for your careful consideration, believing that you are interested in the prosperity of our own people, rather than to discourage home manufacturers, and to cause them a loss, and to inflict a loss (through their being thrown out of employment), upon our own people also, the American workers. Respectfully, YAHR & LANGÉ DRUG Co., By L. A. LANGÉ. BRIEF OF THE J. W. CROWDUS DRUG CO., DALLAS, TEX. DALLAS, TEX., January 31, 1913. The Chairman and Members Ways and Means Committee, Washington, D. C. GENTLEMEN: As large distributors of medicinal and fine chemicals, we take the liberty of submitting the following in connection with the pending revision of the tariff: We assume that the object of the revision is, first, to secure revenue; second, to reduce the cost of necessities to the general public and ultimate consumers; third, to protect American workmen and, as far as consistent, invested capital, and to encourage the development of American industries. The duties paid on importations of chemicals in the year 1911 amounted to $834,494. The importation of medicinal and fine chemicals has steadily increased for years, and we believe will continue to increase under present rates of duty. We believe that a reduction of the present rates of duty, particularly of the general clause of 25 per cent ad valorem, while stimulating importations and curtailing the manufacture in this country to the detriment of American interests, would not materially, if at all, increase the revenue. |