PARAGRAPH 90-FULLER'S EARTH. AKRON, COLO., January 9, 1913. Hon. Simon Guggenheim, Hon. John F. Shafroth, Hon. Charles S. Thomas, Hon. Edward T. Taylor, Hon. Edward Keating, Hon. George J. Kindel, Hon. H. H. Seldomridge, Hon. Addison W. Rucker, Hon. John A. Martin, Senators and Congressmen of Colorado, elect, and in office. GENTLEMEN: The undersigned desire to call your attention to a Colorado industry which possibly may not have come to your notice, and which should have tariff protection to aid in its development. We refer to the mining and treatment of fuller's earth, and particularly that actually under way near Akron. The American Clay Co., of which we are the principal stockholders, owns a quarter section of land 3 miles northwest of Akron, in this State, containing very extensive beds of high-class fuller's earth, and has mined, treated, and marketed it, as best it could under prevailing conditions, for several years.. During that time continuous and systematic effort has been made by the company to bring it to the attention of packers and other consumers with the purpose of getting it on the market, and with the result that its superior merit has been invariably acknowledged by the packing companies and others that have used it. This means many of the principal packing companies of the United States, and other concerns. It has been marketed to some extent in Omaha, St. Joe, Kansas City, New Mexico, Los Angeles, Chicago, Denver, and other places, and long ago would have been exclusively used by the main consumers in this country had it not been for the very low duty on the foreign product. The duty, we believe, is only $2 and $3 per ton on the raw and the treated material, respectively, and this merely nominal duty is further lightened by being reckoned upon the long, or English, ton. Our principal competition comes from the English producers, who, by the excellence of our clay-proved by the United States Government analysis and acknowledged by the packers-have been compelled to reduce the price from as high as $39 per ton to as low as $9 and $10 per ton, in order to hold us out of the market. Our factory for treating the earth was first located at Omaha, but later was moved to the mines. The progress of the company was temporarily checked by fire destroying the factory, a loss of approximately $10,000. A new and better factory was immediately constructed, and the company has continued its efforts to manufacture and market the product to the present time, but has been so hampered by its successful foreign competitors under the protection given to them by the light duty upon their product that profitable business for the American Clay Co., or for any other home producer, has been rendered impossible. The development of an industry, valuable to the community and the State and to other localities throughout the country, has thus been not only crippled, but almost entirely prevented. This condition can not improve under the present tariff. This company has practically an unlimited quantity of fuller's earth, and could supply the American market for many years under suitable tariff protection; but with the present rate of duty, here is the difficulty. The packers and other important consumers will not change their contracts from the foreign producers to us even at the same or a lower price-without the assurance that we can and will promptly fill their orders; but this assurance we can not give without first increasing our facilities for mining and treatment, which we are not warranted in doing at the meager and precarious profit now obtaining. We say meager, because foreign competition has already cut the price nearly to the cost of production; and precarious, because the same competition is able to cut it still more, thus leaving the American producer with nothing save his mines and factories, silent and lifeless property, representing loss of money and wasted efforts. It is not the purpose of this company should the duty be raised on the foreign product to materially increase ti price of its clay, if at all, over what the packers now pay the English and other foreign producers, for we can manufacture and market it to some profit even at the price which they are now getting; but we want and need sufficient duty imposed to justify and make safe an adequate increase in our facilities for mining and manufacture to supply the market demands and to protect us against further reduction in prices by the foreigner whereby profit to us will be rendered impossible. We ask only such protection as will make it reasonably safe to proceed with the development of our properties and the increase of our facilities for supplying the market. We submit that the interest of the principal consumers in this case should not be a matter of very heart-rending concern. For who and what are they? Nothing less than the great packing concerns of the country. Even though an increased duty should add a trifle to the price which the product now costs them, would this cripple their PARAGRAPH 90-FULLER'S EARTH. business? Surely there is nothing there to worry about. Would they raise the price of meat, etc., and thus strike the public another blow? Not so, for willing as they are to do the like, if they have not already gone the limit in that direction, they certainly do not need this trifling matter as a pretext for raising prices. But the tariff which we ask would hurt neither the packers nor the people. On the contrary, it would tend to help both of them. Why? Because, if granted, the prices of fuller's earth would remain practically unchanged, thereby eliminating that influence, at least, from the trust price-fixing of packer products; whereas, to deny the increase of duty asked, would dectroy American production, of which ours is the most active and promising, and leave an open field to the foreign producers for supplying the American market at advanced prices. By reason of the competition and threatened competition, which this company has created, they, the foreign producers, now supply it, for the most part, at from $9 to $10 per ton, the prices at which we can furnish it if protected by adequate duty against further reduction by them. With that competition removed as it must be under a continuance of the present duty-will the foreigner hold down the price to its present figure? The question is an idle one. Freed from our efforts and the consequent menace to his business, he will advance the prices to their former heights of $39, and more, a ton. The packing house companies will have to pay the advance and the people follow suit. The present nominal duty affords no protection. It is wholly useless, save for a little revenue to the Government. But this revenue would be increased rather than diminished by a reasonable increase of duty, for such increase would not keep out the foreign product. Its effect would be to encourage and increase home production, and especially production in this State and by this company. If the duty be not increased, only the foreign producer, German and English principally, will be benefited. The American consumers, be they packers or others, and all who are affected by higher prices to them, would be injured; the writers hereof and their associates would be losers. Their business in question would be ruined; and an enterprise of great value to the community and to the State of Colorado would be destroyed. A tariff of $10 per ton, or more, and possibly less, on the foreign product would give the American product a chance to get into the market and not cost the consumer any more than he now pays (or at most but little more), which, in any event, would be much less than he would be compelled to pay under a continuance of the present duty. And thereby further, as the paramount consideration and result of it all, the American producer would be afforded a living profit. With such a duty we can confidently assure you, at least, that a thriving business would be speedily developed at Akron, Colo., which would greatly benefit the community and be of very material value to the State. You will do a substantial and merited service to this quarter and to this State, as well as to others, by raising the duty on fuller's earth, as herein suggested and requested. We earnestly hope that you will give the matter careful consideration and favorable action. Further elaboration by us is superfluous in addressing gentlemen of your extended experience, sound judgment, exalted capacities, and conscientious concern for the public good. With high regards and the wish that you may all be eminently successful in the discharge of your several trusts, and with strong confidence that you will, we have the honor to be, SIRS: The undersigned two firms, L. A. Salomon & Bro., 216 Pearl Street, New York, and Hammill & Gillespie, 240 Front Street, New York, importing about two 78959°-VOL 1-13-35 PARAGRAPH 90-FULLER'S EARTH. thirds of all the fuller's earth that is brought to this country, petition your committee to reduce the duties on fuller's earth to the following level: Unwrought or unmanufactured to 75 cents, or not to exceed $1 per ton, 2,240 pounds. "Wrought or manufactured, $3 per ton, 2,240 pounds." The specific duty now assessed would be equivalent on the wrought article, which constitutes about fifteen-sixteenths of the total importations, to from 36 per cent to 50 per cent ad valorem, according to quality. The article is principally employed in refining cottonseed oil for edible purposes and for compound lard. The total importation of fuller's earth amounts to about 15,000 tons per annum; therefore the loss in revenue would be insignificant. On the other hand, the reduction in price consequent to the reduction in duty would help the sale of it and would also slightly reduce the cost of edible cottonseed oil and compound lard, which are consumed altogether by the poorer classes in this country. The saving to the individual if the duty on fuller's earth should be reduced may be insignificant, but if 100 or 1,000 or more articles should be reduced in duty in a similar manner the saving to the individual will become an important item. In other words, we believe that the reduction in duty asked for by us is in line with the policy to revise the tariff downward. The production of domestic fuller's earth is more than twice as great as the importation of the foreign article, but the domestic article is principally used for refining oils that are not used for edible purposes; therefore there is practically no competition between the domestic and foreign article, as they are different in character. Besides, the domestic article sells for at least $3 to $4 per ton less than the imported, so that the reduction in the duty asked for by us on the imported would not affect the sale of the domestic product. Respectfully, L. A. SALOMON & BRO. COMMUNICATIONS REGARDING KIESELGUHR. THE STANDARD DIATOMITE Co., S. M. SPARKMAN, Esq., Chairman Committee on Rivers and Harbors, House of Representatives, Washington, D. C. MY DEAR SIR: In reply to your esteemed favor of the 5th instant, for which please accept my thanks, I beg to say the quantity of kieselguhr (diatomite) imported into this country is about 3,000 tons per annum. I am of the opinion, however, that considerably more than that amount arrives under the name of dried or burnt clay, or even crude clay. The consumption of kieselguhr in New York alone is over 3,000 tons per year, and would be much greater if the foreign producers could supply the quantity required. Trusting I may have a favorable report from the Ways and Means Committee, and again thanking you for the interest you have taken in the matter and the courtesy shown, I remain, Yours, very truly, CHAS. R. GOSTLING. THE STANDARD DIATOMITE Co., The Hon. S. M. SPARKMAN, Chairman Committee on Rivers and Harbors, House of Representatives, Washington, D. C. MY DEAR SIR: In reply to your favor of the 13th instant, the average price for the highest grade of kieselguhr (diatomite) in New York City is about $80 per ton. There are many inferior grades sold for prices ranging between $30 and $40 per ton. Eighty dollars per ton seems a high price, but when one considers that it requires the handling of about 20 tons of raw material to produce one ton of kieselguhr it is explained. Yours, very truly. CHAS. R. GOSTLING. PARAGRAPH 91. PARAGRAPH 91-MICA. Mica, unmanufactured, or rough trimmed only, five cents per pound and twenty per centum ad valorem; mica, cut or trimmed, mica plates or built-up mica, and all manufactures of mica or of which mica is the component material of chief value, ten cents per pound and twenty per centum ad valorem. MICA. STATEMENT OF CHARLES P. STORRS, OF OWEGO, N. Y. The CHAIRMAN. The next witness is Mr. Charles P. Storrs. We have assigned to you 10 minutes. Mr. STORRS. Gentlemen, I want to ask a reduction in paragraph 91, relative to mica. The raw material is used by about 10 concerns whom I represent, who use it as a basis for their manufacturing products. Some of these concerns are importers and dealers, but a majority of them are manufacturers. The reason for asking a reduction on the raw material is that the quality of the mica imported is different from anything produced in this country. The amber mica of Canada and the India mica is softer and of better cleavage and suitable for use in electrical insulation, in making mica lamp chimneys, and in various other lines. The American mica can not be used to produce as satisfactory a product for these purposes. For that reason we feel that the present ad valorem rate, which amounts to about 35 or 37 per cent on the raw material, is an undue burden on this raw material. We ask to have a reduction made on the raw material, making the duty 3 cents a pound and 10 per cent ad valorem. We ask further to have that apply to both uncut and cut mica, the cut mica that is imported being only a small percentage-about 15 per cent of the total importation. From that difference in the present act there is a great deal of confusion and a great deal of argument between importers and the customs authorities as to the proper classification. Our proposed amendment would simplify that and would introduce all mica under the same classification. Our proposed duty would amount, figured on an ad valorem basis, to 19.4 per cent on uncut and 15 per cent on cut mica. The CHAIRMAN. You propose to change the classification? Mr. STORRS. Simply introduce the unmanufactured mica under the same classification. I am making the point of putting the cut mica under a lower classification. It makes little difference in the revenue, from the fact that comparatively little cut mica is imported. The CHAIRMAN. The proposition is to leave the cut mica as it is? Mr. STORRS. No; leave the uncut mica. The CHAIRMAN. As it is? Mr. STORRS. Yes; the cut mica grouped together and a lower duty on both of them. Mr. JAMES. Does your statement include ground mica? Mr. STORRS. That would probably be considered as manufactured mica. We do not ask to change the last part of the paragraph that applies to manufactures. If the ground mica were considered a manu PARAGRAPH 91-MICA. factured mica it would come under the present rates-10 cents a pound and 20 per cent ad valorem. The CHAIRMAN. I understand you to say that most of the importations come under the manufactured mica. Mr. STORRS. NO; I have not said anything about the manufactured mica. The cut mica is not considered as manufactured mica. It is considered as raw material; but it now takes the same rate as manufactured mica, and that is one of the points troublesome to us, because the difference between the tariff on the raw material now and the manufactured product is so slight that German manufacturers and English manufacturers of mica board are now in a better position here than the domestic manufacturers. Mr. JAMES. What is mica used in the manufacture of? Mr. STORRS. Making insulating material, which is largely used in electrical machinery. There is no other material that can take the place of it in many cases. It is molded into various forms for electrical insulation of all kinds, and those are built up of scales or films of mica, fastened together with an adhesive material, which is then pressed, molded, and is used in various electrical machinery. Mr. JAMES. Whom do you represent? Mr. STORRS. My own concern manufactures lamp chimneys of mica, and our friends are representatives of the electrical insulating manufacturers and the importers. The names are signed to the brief which we submit. Mr. JAMES. What is the tariff that applies to that in which you are interested? Mr. STORRS. That comes under the 10 cent a pound rate and 20 per cent ad valorem. Mr. JAMES. On the finished product? Mr. STORRS. Yes. Mr. JAMES. You want that reduced? Mr. STORRS. We do not ask to have that reduced. Mr. JAMES. You would allow that to remain? Mr. STORRS. Yes, sir. Mr. JAMES. But you want this raw material that goes into the manufacture reduced? Mr. STORRS. Yes, sir. The CHAIRMAN. The figures that you submit this morning do not differentiate between the raw mica and the finished product. How much importation is there of the finished product? Mr. STORRS. I have not any figures on that; I do not think there are any figures. There is very little of it introduced. I am not familiar with that. It comes under the electrical end of it. The CHAIRMAN. Then it would be very proper to make some reduction on the finished product, if we give you this reduction on the raw material? Mr. STORRS. Personally, speaking for my own company, they would not object to that, but some of our friends would feel the competition of the English and German importers. Mr. JAMES. Would they be willing to have competition? Mr. STORRS. They have competition. There is absolutely free competition in all this line in this country. There is quite bitter |