PARAGRAPH 90-BAUXITE.

containing only about two parts out of ten of combined water, with the alumina content replacing the third part of water. This approximate 10 per cent increase in the oxide of aluminum in foreign ore is a natural advantage that we can not overcome.

A comparison of the mines also favors the foreign bauxites. The American mines, for the most part, are heavily overburdened and the ore lies deep in the ground. Surrounded by clay and cut by clay barriers, we can do very little underground work. Our open quarrying is followed by great slides, and as we frequently take out ore from a depth of 100 feet even a light rain causes serious delay and cost. The French ores lie mostly in huge bluffs, beautifully situated for mining. Where the ore dips it is for the most part surrounded by rock, so that regular underground mining can be carried on with safety.

Again, we believe that French labor for this class of work does not average much, if any, above 80 cents per day. We have had two members of our company make a personal study of this point during several trips to the French mines. In the United States the average labor cost is a full $1.60 per day. And here is a case where labor costs can properly be compared for the total cost of putting bauxite on to cars is almost a hand-labor cost. A steam shovel here can rarely be used on account of the depths of the deposits, and on account of the clay pockets and different grades being badly mixed. French ore runs more uniform and much more free of clay and grit. With us, the pick and the shovel must be relied on, followed by hand sorting, frequently hand passing into washers, almost always hand passing into cylinder driers, and hauled by wagon to the railroad. Royalty charges and fuel and depreciation on hoisting and drying machinery constitute only a small part of the cost-labor constitutes far more than all the other costs.

Imports of bauxite have so far been chiefly from France. Italy and Hungary are likewise great bauxite-producing countries, each with low-priced labor and plenty of it. Italy and Hungary will send in bauxite, and the tonnage from France will increase greatly if the present duty is removed.

Under the present arrangement of $1 per ton import duty in the year 1911 some $43,222 in duty was realized from an industry which used some 200,000 tons of bauxite in that year. We presume this ratio fully held in the year just past, and if the present duty is undisturbed there will still be at least an equivalent proportion of American consumption yielding duty.

On account of the foreign ore being by nature higher in oxide of aluminum than American ore; on account of foreign labor costing less than American labor; on account of the French deposits being better situated for low-cost mining and close to seaport; on account of the foreign ore carrying a low-water freight rate against our high rail freight rate; and on account of the present duty making large returns on the already established import business, we trust that our request for a retention of the present duty of $1 per ton on bauxite will be found to be in order.

JANUARY 6, 1913.

WINTHROP C. NEILSON, President, 1111 Harrison Building, Philadelphia, Pa.

BRIEF SUBMITTED BY THE MERRIMAC CHEMICAL CO.

Hon. OSCAR W. UNDERWOOD,

Chairman Ways and Means Committee, Washington, D. C.

JANUARY 1, 1913.

DEAR SIR: On behalf of the Merrimac Chemical Co. I beg to submit the following brief for the consideration of your committee in connection with its investigations regarding the tariff.

BAUXITE.

Under section 90 of the act of 1909 bauxite is assessed a duty of $1 a ton, the language of the act being as follows: "Bauxite, or beauxite, crude, not refined or otherwise advanced in condition from its natural state, $1 per ton." * *

*

Bauxite is distinctly a raw material, and it is our contention that it should be placed on the "free list."

There are two distinct kinds of bauxite, one of the character of the American bauxite, commonly known as "white" bauxite, and containing less than 10 per cent of iron oxide, and the other known as "red" bauxite, containing more than 10 per cent of iron oxide, and mined almost exclusively in foreign countries, particularly France.

PARAGRAPH 90-BAUXITE.

The "white", or American, bauxite contains 47 per cent to 57 per cent alumina, iron oxide not exceeding 10 per cent, and from 6 per cent to 20 per cent of silica The better qualities of this bauxite are used in the manufacture of sulphate of alumina, in the manufacture of which a high percentage of silica is not objectionable, while a high percentage of iron is very detrimental.

The ordinary "red" bauxite contains 58 per cent to 60 per cent of alumina, 18 per cent to 22 per cent iron oxide, and 2 per cent to 4 per cent silica. This "red" bauxite is used principally in the production of alumina, which is the principal source of aluminum used in the manufacture of the metal aluminum. In the refining process of this "red" bauxite the high percentage of iron is not objectionable, while a high percentage of silica contents is almost fatal to economical manufacture. Thus it is apparent that the American, or "white," bauxite and the "red" bauxite, which constitutes the greater portion of the foreign importation, being distinct in their character and purpose, are not in serious competition with each other.

An effort was made at the last tariff revision in 1908-9 to have the duty on bauxite increased from $1 a ton to $2 a ton on the ground that the American mines could not compete with the foreign mines.

We do not believe that importations of bauxite interfere in the slightest with our American mines, nor do we believe that the output of our American mines would be affected if bauxite were placed on the free list. The following are our reasons for this opinion:

(1) As already stated, the "red" bauxite, which constitutes the bulk of the foreign importation, is used for different purposes than the "white" bauxite, which is mined in this country The only important exception to this statement that we know of is the Arkansas bauxite used by the Aluminum Co. of America in their works near St. Louis. The Arkansas mines in question are, we understand, owned and operated by the Aluminum Co. of America, and it is most improbable that their operations would be in the least curtailed by the removal of the duty because the inland freight on the imported ore would be prohibitive.

(2) Our American mines have shown a steadily increasing output, and there is no indiciation that the development of these mines has been or is likely to be retarded by the importation of foreign bauxite.

According to the Mineral Industry for 1911, which is the most accurate and official estimate of mineral productions published in the United States, there were produced in the United States in 1911, 155,618 tons of bauxite. This is somewhat larger than the output in 1910 and 1909 and three times the output in 1908. In 1911 there were imported into this country 43,222 tons of bauxite, but the major portion of this importation was "red" bauxite, which, as already explained, is not really in conflict with our American ore.

It is submitted that, when due consideration is given to the fact that the American output of bauxite has tripled since 1908, and when it is considered how small has been the importation of "white" bauxite under the present duty, it will be apparent that our American producers of bauxite do not require the protection of this $1 duty.

CONCLUSION.

To place bauxite on the free list would surely stimulate the aluminum industry, and would not, in our judgment, seriously affect our American mine owners, because, as already explained, the American markets for the imported and domestic ore are to a large extent separate and distinct.

Furthermore, should it be deemed advisable to maintain a duty on our American bauxite, a distinction may be made between the "red" and the "white" bauxite, and the duty removed on the former. This may be effected by providing that bauxite containing in excess of 10 per cent of iron (Fe2O3) shall be entered free, and bauxite containing less than 10 per cent iron shall pay a duty of $1 a ton.

BRIEF OF THE PENNSYLVANIA SALT MANUFACTURING CO.,

PHILADELPHIA, PA.

PHILADELPHIA, PA., December 2, 1912.

Hon. OSCAR W. UNDERWOOD,

Chairman Committee on Ways and Means,

House of Representatives, Washington, D. C.

DEAR SIR: We have the honor to present herewith a brief of facts in the matter of the crude article bauxite, which is now subject to a duty of $1 per 2,240 pounds.

PARAGRAPH 90-CHINA CLAY.

Bauxite is in Schedule B, paragraph No. 90, act of August 5, 1909.

The importation this year will amount to about 30,000 tons. The consumption in the United States is estimated at 150,000 tons during 1912.

We respectfully ask that it be transferred to the free list, where for many years it was incorporated. The article imported does not come in competition with the domestic article, by reason of its wide difference in composition. The foreign article contains 60 per cent of alumina and over 20 per cent of iron, whereas the domestic article contains from 50 to 55 per cent alumina and is very low in iron. On account of the iron the foreign red bauxite is not adapted for making alum direct, whereas the domestic article is particularly so; therefore the foreign does not compete, as stated. The selling price of domestic bauxite is about $6 per ton at the mines, compared with $3.60 per ton for foreign at shipping point in Europe. The importation comprises only about 20 per cent of the total bauxite consumed in the United States. As the bauxite is distinctively a raw material of the crudest character involving a minimum of labor, we submit that it should be placed on the free list.

Yours, truly,

PENNSYLVANIA SALT MANUFACTURING Co.,
THEODORE ARMSTRONG, President.

RESOLUTIONS OF BENTON (ARK.) CHAMBER OF COMMERCE.

Whereas the largest deposit of bauxite in America is situated in Arkansas, near the city of Benton; and

Whereas three corporations are engaged in the mining and shipping of this bauxite; and

Whereas these companies have made very heavy investments in mining plants and building railroads and equipment for mining this bauxite; and

Whereas the pay rolls of these companies amount to from $15,000 to $20,000 a month, and that this money is paid to the laborers, who spend it in this community; and Whereas one of these mining plants has built the second largest town in this county, some miles of first-class public roads, erected a $12,000 schoolhouse for the benefit of the children of the community, a hospital costing over $6,000, a free bathhouse for the use of their employees; all this, where a few years ago there was a wilderness;

and

Whereas the existing tariff under the Payne-Aldrich bill enables foreign bauxite and aluminum to be shipped into America in free competition with the American manufactured articles; and

Whereas should the tariff on bauxite and aluminum as contemplated by the Underwood bill now before Congress be passed, in our judgment would close down this the largest industry in our county: Therefore be it

Resolved, That the Benton Chamber of Commerce, of the city of Benton, Ark., in chambers assembled, pray that you use your influence to prevent the tariff being removed on bauxite, aluminum, and alumina as contemplated by the Underwood bill; And be it further

Resolved, That the secretary of this organization send a copy of these resolutions to each of our representatives in Congress.

The foregoing is a true copy of the resolutions adopted by the board of directors of the chamber of commerce on the 30th day of January, 1913.

STATEMENT OF JOHN RICHARDSON, ESQ., REPRESENTING THE JOHN RICHARDSON CO., OF BOSTON, MASS.

The CHAIRMAN. The next witness is the John Richardson Co. The committee has assigned to you, Mr. Richardson, 10 minutes. Please give your name and address to the stenographer.

Mr. RICHARDSON. John Richardson, of Boston.

Mr. DIXON. What section of the bill will you speak about?
Mr. RICHARDSON. Paragraph 90.

PARAGRAPH 90-CHINA CLAY.

Mr. Chairman and gentlemen, I want the duty on china clay removed. I emphasize two points:

First, the damage done by the duty to the great paper industry, employing over 65,000 men.

Second, the comparatively insignificant damage by removal of the duty to the southern clay industry.

As to the first point, paper making is among the largest industries of the United States. Our makers of the better grades of paper must have English clay. The duty on this raw material is now over 36 per cent. From this tax the United States Government receives annually a revenue of over half a million dollars. That revenue is in • the end paid by the paper makers. Canada's facilities for the manufacture of paper excel those of the United States. China clay is admitted free into Canada; her paper comes here free. Already a number of American paper makers have bought land there. Each dollar collected as duty means a gain of $1 to the paper maker who goes to Canada.

Now, for the second point, the comparatively insignificant damage to the domestic clay industry. The total value of domestic paper clay produced in 1909 was less than $400,000. Under 1,500 men were employed. From 1905 to 1910, in spite of the duty, the increase of English clay imported over the increase of domestic clay produced was 938 per cent.

This duty, which is borne by the paper makers, of over half a million dollars a year protects an industry with a total annual output of less than $400,000 and employing under 1,500 men.

I am ready for questions.

The CHAIRMAN. Do gentlemen of the committee desire to ask Mr. Richardson any questions?

That is all.

PETITION TO REMOVE THE DUTY ON CHINA CLAY, OR KAOLIN.

[Brief of John Richardson Co.]

STATEMENT OF FACTS.

The COMMITTEE ON WAYS AND MEANS,

House of Representatives, Sixty-second Congress:

In 1908 the John Richardson Co. was represented at the hearings before the Ways and Means Committee on a petition similar in its purport to this brief, namely, the removal of the duty on china clay, or kaolin. Now, as then, your petitioner is acting at the suggestion of several paper makers. In 1908 the petition was dismissed after a rather brief hearing. Since 1908 the new Canadian tariff has been put into effect, thereby admitting from Canada one of the finished products of china clay, paper, free of duty.

This brief deals first with the subject in the light of the new Canadian tariff, and, second, attempts to explain, more fully than was possible at the hearings before the committee, the effect of the present duty on china clay.

EXPLANATION OF TERMS.

China clay and kaolin are different names for the same article, and this article is a raw material used in the manufacture of paper, pottery, bleaching, and ultramarine. In this brief the term china clay will be used, except in the case of the North Carolina clay, where by force of custom the name kaolin has always been applied to the clay there.

In spite of the fact that all imported clay is really of one kind, there are many different grades of cost. This is due to the facts which will be explained later.

PARAGRAPH 90-CHINA CLAY.

THE DIFFERENT COSTS OF ENGLISH CLAY.

The cost of English clay in bulk f. o. b. Cornwall, England, varies from 15 shillings to 32 shillings per ton. Add about 9 shillings and you have the price at New York with. out the duty. These clays, though varying in cost, are in fact all of one kind, the reason for the difference in cost being that the more expensive clays are more thoroughly washed when taken from the mine and are of a whiter color. The expensive clays are used in the finished paper by the coating manufacturers, potters, and to a limited extent by the bleachers. The English clays costing about 20 to 25 shillings are used for slightly inferior qualities of the same products. That the importation of expensive clays is comparatively small is proved by the average value of English clays imported into the United States. This is only $6.76 per ton at port of shipment. (United States Bureau of Statistics, No. 15, imports entered for consumption years ending June 30,1909-10, p. 965.) To this must be added 9 shillings for ocean freight and $2.50 per ton duty, making the average value at United States seaboard $11.42 per ton. English clays sold in 1909, Boston, New York, and Philadelphia, at prices ranging from $11 per ton to $18 per ton. Thus there can not be much expensive English clay imported, or the average would be higher.

Inasmuch as the importation of the more expensive English clays is comparatively small, and, furthermore, as there are no American clays of sufficient whiteness to be in competition with these English clays, we shall say no more about them in this brief. We think they do not alter our conclusions in either direction, and therefore at once proceed to the lower grade English clays, of which so large a bulk is imported.

We shall then give evidence showing a comparison of the cheaper English clays and domestic paper clays, starting with the clay in its natural state, then showing the analyses of the domestic and English, then the uses, the tariff, the size of the domestic-clay industry, and the competition existing among American paper manufacturers.

IN ITS NATURAL STATE.

China clay, or kaolin, may be divided into two classes, viz, residual and sedimentary. Residual clays.-Beds of china clay occurring in or very close to their place of origin are known as residual clays. All English clays are residual, and the deposit is decomposed granite. The method of mining is by sending a stream of water down the side or stope of the pit, and this stream takes up and carries with it feldspar, mica, and sand. This material is pumped, strained, and settled, then dried in kilns. (See photographs attached of English mines, showing this method.)

The residual clays of the United States do not concern us, since they would not be affected by removal of the duty, as hereinafter explained.

Sedimentary clays.-In the erosion of the earth's surface residual clay is washed down into the lakes and seas, where it is deposited in the form of a sediment, with the addition of many impurities. This latter is known as sedimentary clay.

The clay deposits of Aiken, S. C., are sedimentary, and in this area are most of the so-called paper clays produced in the United States which could be affected by the removal of duty on English clay.

The mining of these clays is simple. The overburden, or earth on top, is removed, and from the solid mass of clay lumps are separated by pick and shovel. These are roughly assorted into grades, determined by color, and stains pared off. The clay is then dried in an open shed, is casked, and ready for market. In some instances the clay is washed with good results. (Attached are cuts from photographs of some of the principal domestic mines.) For samples of the deposits of English and American clay see Exhibits "A" and "B."