PARAGRAPH 90-ASPHALTUM.

Massachusetts.-The highway commission is composed of three members, who appoint a chief engineer. The State pays three-fourths of the cost of construction. The State bond issues amount to $2,500,000, $500,000 of which were expended in 1912. The total State and county bond issues, prior to January 1, 1912, amount to $4,234,807.

Michigan.-A State highway department was established in 1909 for the purpose of giving instruction in road building, etc. A State highway commissioner is appointed for a term of four years. The State pays a reward on certain types of roads of $250 to $1,000 per mile. County, township, and road district bonds issued prior to January 1, 1912, amount to $3,101,762.

Minnesota.-The State highway commision is composed of three members, with a State engineer-secretary. The State pays 50 per cent and the county 50 per cent of the cost of construction. The estimated value of statute labor is $652,500. County, township, and road district bonds issued prior to January 1, 1912, amount to $1,806,164. Mississippi.-County, township, and road district bond amount to $2,940,472. Missouri.-A State highway engineer is appointed by the State board of agriculture. The nature of the work performed is principally educational. County and road district bonds issued prior to January 1, 1912, amount to $819,100.

Montana.-The estimated value of statute labor is $90,124. County bonds issued prior to January 1, 1912, amount to $2,214,600.

Nebraska.-County commissioners have supervision of highways where township organization does not exist and they may appoint a highway commissioner. The State and county each pay 50 per cent of the cost of bridges, to which State aid is granted. The county, township, and road district bonds issued prior to January 1, 1912, amount to $763,000.

Nevada.-County and road district bonds amount to $234,000.

New Hampshire.-The State highway board is composed of the governor and council and the State engineer designated as superintendent of highways. Aid is apportioned to towns on the basis of appropriations made by the towns. State bonds issued prior to January 1, 1912, amounted to $1,000,000, and county, township, and road district bonds amounted to $245,135.

New Jersey-The State highway commission is composed of the governor, the president of the senate, the speaker of the house, the State treasurer, and the State commissioner of public roads. A State highway engineer and four division engineers are appointed. The State pays the total cost of the State roads and beginning in 1912 will pay 40 per cent of the cost of State-aid roads, the counties paying 50 per cent and the townships 10 per cent. The total county, township, and road district bonds issued prior to January 1, 1912, amount to $2,494,428.

New Mexico. The highway commission is composed of the governor, the commissioner of public lands, the attorney general, the State auditor, and the State engineer. The State bond issue of $5,000,000 was authorized in 1912. County bond issues previous to January 1, 1912, amount to $293,800.

New York.-The State highway commission organization is composed of a State superintendent, two deputies and secretary, and a chief engineer. The cost of State highways is paid wholly by the State. The cost of county and State aid highways is paid by the State and county and the cost of town highways by the State, county, and town. A State bond issue of $50,000,000 has been expended and another issue of the same amount was authorized during 1912, making the total State, county, and township bonds issued $106,630,896.

North Carolina.-The State geological board acts as the State highway department. The State geologist is the active member, and a State highway engineer is appointed. The estimated value of statute labor is $640,249. County, township, and road district bonds issued prior to January 1, 1912, amount to $3,272,300.

North Dakota.-The estimated value of statute labor is $105,000, and the total county and township bonds issued prior to January 1, 1912, amount to $108,500.

Oklahoma. The laws of 1911 created a State highway department composed of a State highway commissioner, a chief engineer, and assistants, whose duties are principally educational and advisory. The total amount of county and township bonds issued prior to January 1, 1912, are $1,316,000, and the value of statute labor is estimated at $731,120 annually.

Oregon.-A 5 per cent fund derived from the sale of United States public land and a direct fund, due the State upon compliance with the laws of Congress are apportioned among the several counties on the basis of area and are administered by the county board.

Pennsylvania.-The State highway department is composed of a State highway commissioner, two deputies, and a chief engineer. State aid is apportioned according to

PARAGRAPH 90-ASPHALTUM.

the mileage of township and county roads, the State paying one-half and the county and township one-half. The State pays the whole cost of State roads. The total county, township, and road district bonds prior to January 1, 1912, amount to $19,513,328.

Rhode Island.-The State board of public roads is composed of five members. An engineer is appointed. The State pays the whole cost of State roads and one-fifth the cost of State-aid roads, towns paying four-fifths. State bonds issued prior to January 1, 1912, amounted to $1,800,000, and township bonds issued amounted to $125,000.

South Carolina.-The estimated value of statute labor is $456,088. County and township bonds issued prior to January 1, 1912, amount to $492,000.

South Dakota.-Statute labor is estimated at $202,500 annually and township bonds issued prior to January 1, 1912, amount to $10,000.

Tennessee.-In 1909 a State commission of public roads was created to make an investigation and report to the succeeding legislature with recommendations. County, township, and road district bonds issued prior to January 1, 1912, amount to $6,127,000 and statute labor is estimated at $720,000.

Texas.-County, township, and road district bonds issued prior to January 1, 1912, amount to $11,146,032. Statute labor is estimated at $750,000 annually.

Utah.-The State road commission is composed of the governor and four other members. State aid is apportioned equally among the counties. The State pays from 80 to 50 per cent, and the county from 20 to 50 per cent of construction. State bonds issued prior to January 1, 1912, amount to $260,000 and county bonds amount to $272,500.

Vermont.-The governor appoints a State highway commissioner and the commissioner appoints a supervisor for each county. The State and town each pay one-half the cost of construction, but aid is also given at the discretion of the commissioner.

Virginia. The governor appoints a State highway commissioner for a term of six years, who with four other members, appointed from the different colleges in the State, constitute the highway commission. State aid is given both in the form of convict labor and in money, the State appropriation being one-half the cost. County, township, and road district bonds issued prior to January 1, 1912, amount to $2,557,500. Washington.-The State highway board is composed of the governor, the State auditor, the State treasurer, a member of the railroad commission, also the highway commissioner. State aid was formerly given to roads, but this provision has been repealed and a permanent highway fund or 1 mill tax is now levied, the State nominally and the county indirectly paying the total cost of construction. Assessment districts, however, may pay 15 per cent of the cost. County bonds issued prior to January 1, 1912, amount to $1,277,000.

West Virginia.-The office of public roads was established in 1909 and abolished in 1911. West Virginia is the only State which has taken a backward step in regard to centralized authority. County, township, and district road bonds issued prior to January 1, 1912, amount to $205,900.

Wisconsin.-A State highway commission was created in 1911. The duties are principally advisory and supervisory. The commission is composed of five members; an engineer of roads and an engineer of bridges are appointed. The State pays not more than one-third of the cost of State highways. The estimated value of the statute labor tax is $375,000 annually and county bonds issued prior to January 1, 1912, amount to $658,000.

ADDITIONAL BRIEFS SUBMITTED ON ASPHALT.

Hon. W. G. BRANTLEY,

DENNY & WRIGHT, Rome, Ga., December 23, 1912.

Member of Congress, Washington, D. C. DEAR BRANTLEY: Being one who is vitally interested in the rapidly growing good roads movement throughout our whole section of the South, and having been intimately connected with street improvements as county official, I am writing you in the interest of a tariff reform appertaining to natural asphalts. My information is that at present there is no duty on residuum oils. They come in free and in direct competition with natural asphalt, upon which there is a duty of $3, according to my information. With the good roads improvement matter so close to the interest of our people, it seems to me that the natural asphalts should be admitted into our country on a parity with residuum oils, thereby increasing competition, and to the pronouncedly betterment of our people. Will you not kindly give your attention to this mat

PARAGRAPH 90-ASPHALTUM,

ter, and see whether our good roads improvement can not be advanced by relieving the people of the duty on these natural asphalts, which is very pronouncedly better than oil residuum products that can be furnished by the Standard Oil Co. and other

concerns?

Thanking you for your kindly interest and study of this matter, and wishing for you a merry Christmas and a glad New Year, and with assurances of my continued fealty and friendship in all matters that may appertain to your success and advancement, believe me,

Sincerely, your friend,

R. A. DENNY.

DEPARTMENT OF PUBLIC WORKS,
Milwaukee, January 2, 1913.

Hon. OSCAR W. UNDERWOOD,

Chairman Ways and Means Committee,

House of Representatives, Washington, D. C.

DEAR SIR: It has been brought to the attention of the undersigned that a movement is under consideration looking to the removal of the present import duties on natural lake asphalts.

As commissioner of public works of the city of Milwaukee I feel that it is my duty to express to you and through you to the Congress of the United States my views as to the desirability of removing these import duties.

I have been more or less directly associated with the use of asphaltic materials in connection with street pavements and road work for over 25 years and have seen and followed closely the development of the use of asphaltic materials in this country, comprising both the natural or lake asphalts and the so-called residuum asphalts, and acting at the present time in the capacity of commissioner of public works of the city of Milwaukee, and in that capacity being to a great degree responsible for the special taxes assessed against the taxpayers in this city for the paving of the roadways, I feel that any governmental action which may be taken looking to the reduction of the costs of these materials will be a boon to a very large number of taxpayers throughout the entire United States, and will be particularly appreciated by the smaller taxpayers paying taxes on their little homes throughout a vast number of cities in this country.

I can not see that the removal of these import duties will effect an undue hardship upon anyone, as it is my personal belief, from such knowledge as I have acquired in this particular material, that the manufacturers of the so-called petroleum residuum or blown-oil asphalts are simply enabled at the present time to charge and secure an undue amount of profit from their business.

I agree with many of the experts of the country in the belief that the natural or lake asphalts produce a better and more lasting type of asphaltic pavement than do the pavements based on the residuum products, and if the removal of the import duties from these natural or lake asphalts will tend to decrease the price of that material, this decrease being reflected in the cost of the asphaltic pavements as laid on the streets, undoubted benefits will accrue to the taxpayers of the United States, on whom falls the burden of expense in these paving matters.

This letter is therefore written for the express purpose of assuring you that the undersigned, in view of whatever degree of knowledge he has been able to obtain on this subject, is unqualifiedly in favor of the removal of the import duties upon both the crude and refined asphaltic materials and would be glad to go into this matter more fully and in greater detail at any time in the future when a further and more complete investigation of the merits of the subject was in progress.

Very truly, yours,

FRED G. SIMMONS, Commissioner of Public Works.

SOUTHERN ASPHALT & CONSTRUCTION CO.,
Birmingham, Ala., December 19, 1912.

Washington, D. C.

Hon. OSCAR W. UNDERWOOD,

MY DEAR MR. Underwood: I note that the question of the removal of the duties on asphalts is listed for discussion before your committee during the first week in January.

PARAGRAPH 90-ASPHALTUM.

At present the duty is $3 per ton on refined asphalt and $1.50 per ton on crude asphalt. These duties were put on asphalts in 1897 at the instigation of the producers of the California asphalts and were kept on under the tariff bill of 1909 for the benefit of and at the request of producers of residual asphalts, which are by-products of asphaltic petroleums.

I think the duties on asphalts should be removed, for the following reasons: Asphalt has come into general use as a material for the successful construction of city streets and the better classes of country roads, and the present tariff tax means nothing more or less than an additional tax on such improvements. This additional tax is particularly obnoxious at this time, when there is such a widespread movement for the betterment of streets and roads. The cost of pavements in which asphalt is used would naturally be decreased if the tariff is removed, as the imported asphalts could be bought at a lower price, and this would have an effect on the price of every form of pavement.

The tariff on imported asphalts, while not only increasing the cost of such asphalts, undoubtedly has its effect also upon the price paid for the by-product asphalts, so that a reduction in the price of the imported asphalts would undoubtedly enable cities and communities to secure much needed highway improvements at a lower cost than now prevails, which would probably mean that much more extensive improvement projects would be taken up for the betterment of our streets and country roads.

As you know, I am greatly interested in the paving business, my company, The Southern Asphalt & Construction Co., makes a specialty of laying asphalt pavements. As we use the imported natural lake asphalts we are vitally interested in having the duty upon the importation of said asphalts removed.

In view of the above, I trust that you can have asphalts, both crude and refined, placed on the free list when the time comes for preparing the next tariff bill. Anything you may be able to do along this line will be greatly appreciated by us. With kindest personal regards, I am,

Your friend,

EUGENE FIES, President.

BRIEF IN SUpport of SUGGESTION THAT Asphaltum BE PLACED ON THE FREE LIST SUBMITTED BY THE HASTINGS PAVEMENT CO. AND OTHERS.

NEW YORK, January 31, 1913.

The Hastings Pavement Co. respectfully requests that the duty on crude and refined asphaltum be removed and that both be placed upon the free list.

"Crude asphalt" is the material just as it comes from the asphalt lakes, where centuries of exposure to atmospheric conditions has caused it to lose many of its lighter and more volatile oils. "Crude asphalt" from Trinidad Lake contains about 33 per centum of water; and the so-called process of "refining" consists merely of boiling out that 33 per centum of water. In other words, "refined" asphalt is nothing more than the "crude" asphalt with the water boiled out by the operation of heat.

The Hastings Pavement Co. is and for 30 years has been engaged, at Hastings-onHudson, N. Y., in the manufacture of that form of roadway pavement known as asphalt block pavement. Its business consists of making the asphalt blocks and selling them to municipalities for street paving, or in laying the pavement itself under contract with municipalities. During all that period it has used and now uses Trinidad Lake asphalt exclusively as the binding material in its asphalt blocks. The long experience of the company in the use of Trinidad Lake asphalt has demonstrated that of all known bituminous materials it possesses the qualities of adhesiveness and cohesiveness to the greatest degree, and therefore best serves the purpose in making a substantial and durable form of pavement. There are other competing materials, such as Venezuelan asphalt, Cuban asphalt, and the so-called artificial asphalt made from oil. The presence of a high degree of cementitiousness in the bitumen is particularly desirable in the form of pavement made by the Hastings Pavement Co. Briefly stated, the asphalt block consists of asphaltic cement and crushed stone, compressed under high pressure; the bitumen contents of the mixture constituting the cement which holds the materials together.

The bitumen in the Trinidad Lake asphalt is, in the opinion of this company, superior in all respects to that of any other asphalt, whether natural or artificial, and for that reason this company has for many years made exclusive use of this particular variety of asphalt.

PARAGRAPH 90-ASPHALTUM.

The company imports its asphalt direct from Trinidad in what is called the crude state, just as it comes from the Trinidad Lake, and, at the company's plant at Hastingson-Hudson, prepares the crude asphalt for use by driving from it, by means of heat, the 33 per centum of water contained in the crude asphalt as imported. In other words, the company has to thus "refine" its own asphalt, the so-called process of "refining" causing it to lose 33 per centum of its weight before being suitable for use in the manufacture of an asphaltic cement.

Until 1897 no duty was levied on this raw material; since then a duty of $1.50 a ton has been assessed upon the "crude" asphalt, which means to this company a duty of $2.25 per ton upon that part of the material which is available for use; this company paying in addition thereto the labor and factory cost of treating the material as above described.

In other words, in order to prepare its raw material for use in the construction of a roadway for a city or village, it has to import the crude material, and pay a duty thereon based upon a bulk which ultimately furnishes but 67 per centum of that bulk in a condition ready for use in the manufacture of its pavement.

The imposition of this duty not only does not protect any American industry, but in fact actually operates to impose an onerous and unjust burden upon a long established and successful industry, as well as to impose a wholly unnecessary tax upon the construction of modern roadways.

There does not exist in the United States any commercial form of natural asphalt that competes in any way with the foreign deposits. It is a fact, however, that in the process of refining petroleum oil, having an asphaltic base, a by-product or waste is obtained, which is sometimes called an artificial asphalt, principally because it can be and is used in connection with the construction of roadways. That is to say, the oil refiner distills his oil for the purpose of obtaining and selling the light, volatile oils which have great value; to obtain them is the purpose of the refining of the crude oil.

What is finally left is a waste which may be used in some way as an asphalt is used; but the oil is not refined for the purpose of obtaining that waste and, obviously, the imposition of a duty upon crude or refined asphalt was not intended to nor does it in fact furnish protection to the oil refiner. One might as well say that the imposition of a duty upon timber was intended to furnish protection to the saw mill owner in respect to the sawdust resulting from the manufacture of the timber into commercial forms of lumber.

Moreover, it is now the declared policy of this Government to allow crude oil to enter free of duty; and it so happens, in respect to Mexican oil, for instance, that the importation of the crude oil free of duty also allows the importation without duty of so much of the artificial asphalt as is contained in the Mexican crude oil. The result is that the refiners of Mexican oil actually get, as incident to refining that oil, an artificial asphalt which has paid no duty, thereby working a grievous hardship upon the American manufacturer who is not engaged in the oil-refining business but who brings in the crude natural asphalt, paying duty upon it, refining it here with American labor, and then finding himself in competition with the oil refiner who has avoided all duty.

We respectfully submit that both the crude and so-called "refined" asphalt should be placed upon the free list.

As to the crude asphalt, it is typical in a striking degree of a raw material, for it is invariably a natural deposit existing in consequence of the lapse of ages of time and the slow processes of chemical change.

It is taken from the lake by the simplest possible kind of labor, that of plain ordinary digging, and it is brought to the United States in such a condition of crudeness that on arrival it has again to be dug out of the hold of the vessel.

If imported as so-called "refined" asphalt, the process of refining is in fact nothing more than boiling out of it the water which it contains in its crude state, and thus making its bulk less expensive to ship.

But, however imported, its principal use is an important and essential component of modern roads.

A customs duty upon it is, therefore, not only an unjust tax upon a raw material, but is in fact a tax upon a tax, because he who pays for the modern roadway is the taxpayer, and in paying his tax he is also subjected to the tax levied by the customs duty on the asphalt in that roadway.