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PARAGRAPHS 95-96-CARBON.

are raw materials for the carbon industry; and in view of the fact that these materials are much cheaper in Europe than in the United States, also that the cost of labor in the foreign factories is at least 70 per cent less than in the United States, we respectfully ask that these flaming carbons or flaming electrodes be assessed at an ad valorem duty of not less than 45 per cent. To provide this, we suggest the insertion after the duty on lampblack carbons, in paragraph 96, and preceding the duty on filter tubes, of the following: "faming or luminous arc-lamp carbons or arc-lamp electrodes having flame-producing chemicals in the core, on the surface or mixed homogeneously into the body thereof, or manufactured in such manner that the weight of any materials other than carbon is more than 5 per cent of the total weight, 45 per cent ad valorem.”

We are confident that the foreign cost of flaming arc carbons plus cost of transportation to this country and a duty of 45 per cent will total an amount considerably less than the cost of manufacture of the same size and grade in this country under the most favorable conditions and that the duty requested will provide a continuance of the abundant foreign competition which has always existed in the carbon industry. The ad valorem rate we have asked to cover flaming arc carbons will provide for a duty in proportion to their value and will result in a reduction of from 10 to 15 per cent in the duty on the styles of flaming arc carbons which have been in use for several years.

With regard to that portion of paragraph 95 relating to carbons and reading as follows “carbon, not specially provided for in this section, 20 per cent ad valorem, electrodes, brushes, plates and discs, all of the foregoing composed wholly or in chief value of carbon, 30 per cent ad valorem". we understand that the first clause is intended to cover retort carbon or any other manufactured form of carbon used as raw material, but does not include lampblack, which carries a duty of 25 per cent as provided in paragraph 45. Lampblack and retort carbon are important raw materials in the manufacture of the carbon articles enumerated in the second clause, and labor constitutes from 40 to 60 per cent of the cost, and in some of the more highly finished articles it is more than 75 per cent of the cost. In the case of carbon brushes many of them are imported with flexible copper cable terminals commonly called "pigtails” attached, and these copper cables if imported separately would be assessed with a duty of at least 45 per cent. We understand, however, that both carbon brush and copper connection, the latter usually being worth more than the brush, are admitted at 30 per cent duty.

The first clause of paragraph 95 reads:

“Articles and wares composed wholly or in chief value of earthy or mineral substances, not specially provided for in this section, whether susceptible of decoration or not, if not decorated in any manner, 35 per cent ad valorem; if decorated, 45 per cent ad valorem."

While copper coating, tinning, and copper connections may possibly not properly be termed decorations, it is certain that many of these carbon articles are highly finished products and that labor forms a large part of their cost. Developments in electric motors and generators have made the brush business more complicated, so that instead of the plain rectangular carbon block formerly used the demand is for highly finished pieces with bevels, holes and slots and metal connections securely attached thereto. This is also true of other carbon articles used in connection with electrical apparatus. Most of this work is done by hand, and in order to compete with the products of the German and French factories some readjustment is necessary. We believe that the duty on these manufactures of carbon should be at least as much as provided in the paragraph just quoted and respectfully request that the balance of the paragraph be changed to read as follows:

“Unmanufactured carbon, not specially provided for in this section, twenty per centum ad valorem; electrodes for electric furnace, electrolytic and battery purposes, brushes, plates and disks, all of the foregoing composed wholly or in chief value of carbon, thirty-five per centum ad valorem; if metal plated or having metal attachments, forty-five per centum ad valorem.”

We have suggested a slight change in the wording of this clause in order to more specifically describe electrodes and definitely distinguish them from lighting carbons which are frequently referred to as lamp electrodes.

In conclusion permit us to call your attention to the fact that the French tariff is 75 francs per hundred kilos. This is equivalent to 79 cents per hundred feet on 1 by 12 inch regular high grade electric light carbons and a correspondingly high ad valorem rate on brushes and similar carbon products. The German tariff is 30 marks per hundred kilos but according to bulletin of the Department of Commerce and Labor entitled Tariff Series No. 7, the German Government imposes an internal-revenue tax

PARAGRAPHS 95-96-CARBON.

on imports of electric-light carbons which is from two to three times the amount of the
customs duty and in addition to it. This is equivalent to an ad valorem duty of about
123 per cent on it by 12 solid carbons and 189 per cent on the same size of cored carbons.
The foreign manufacturers of high-grade carbons are located chiefly in Germany and
France and supply not only their own countries but all of the balance of the world,
with the exception of about 50 per cent of the consumption of high-grade carbons in
the United States.
Respectfully submitted.

NATIONAL CARBON COMPANY,
JAMES PARMELEE, President.
J. S. CRIDER, General Manager.

The following statement of net sales, cost, gross and net profit on high-grade carbons for the period of 2 years and 10 months ending October 31, 1912, has been by me verified and found correct:

Net sales Jan. 1, 1910, to Oct. 31, 1912..
Cost...

$1,551, 931. 55 1, 375, 878. 83

Profit..

176, 052.72 Less annual depreciation charges, not included in cost of product.... 83, 414. 55 Net profit.

92, 638. 17 Per cent of profit on sales...

11.34 Per cent of net profit....

5.97 F. D. LAWRENCE,

Auditor and Assistant Treasurer. Subscribed and sworn to before me this 4th day of January, 1913. (SEAL.]

HOWARD L. BARKDULL,

Notary Public.

MEMORANDUM OF CHANGES SUGGESTED IN DUTIES ON CARBON PRODUCTS, PARAGRAPHS

NO. 95 AND 96.

95. Beginning with the word "carbon" strike out balance of paragraph and insert the following:

“Unmanufactured carbon, not specially provided for in this section, twenty per centum ad valorem; electrodes for electric furnace, electrolytic and battery purposes, brushes, plates, and discs, all of the foregoing composed wholly or in chief value of carbon, thirty-five per centum ad valorem; if metal plated or having metal attachments, forty-five per centum ad valorem."

96. After the words "sixty-five cents per hundred feet” and before the words "filter tubes" insert the following:

“Flaming or luminous arc lamp carbons or arc lamp electrodes having flame-producing chemicals in the core, on the surface, or mixed homogeneously into the body thereof, or manufactured in such manner that the weight of any materials other than carbon is more than five per centum of the total weight, forty-five per centum ad valorem."

NATIONAL CARBON Co.,

Cleveland, Ohio, January 9, 1913. Hon. Oscar W. UNDERWOOD,

Chairman Ways and Means Committee, Washington, D. C. DEAR Sir: In view of the statements made at the hearing on the 8th instant by Hugo Reisinger, an importer in New York, relative to the tariff on carbon products, paragraphs 95 and 96, and particularly his statement that the National Carbon Co. is a trust and has nearly all of the carbon business in the United States, we beg to state that this company is not a trust, it is not interested in any other carbon company, and it has not a monopoly of the business in this country.

We manufacture a complete line of carbon products, including electric-light carbons, flaming arc carbons, carbon brushes, carbon electrodes, carbon specialties, wet and dry

PARAGRAPHS 95-96–CARBON,

batteries. We have less than 50 per cent of the total business, including petroleum coke carbons, high-grade carbons, flaming arc carbons, carbon brushes, electrodes, and batteries. In addition to the National Carbon Co., the following are manufacturers of carbon products in the United States:

American Carbon & Battery Co., East St. Louis, Ill.; Champion Carbon Co., Loveland, Ohio; Nungesser Carbon & Battery Co., Cleveland, Ohio, Speer Carbon Co., St. Marys, Pa.; Stackpole Carbon & Battery Co., St. Marys, Pa.; Corliss Carbon Co., Bradford, Pa.; Pure Carbon Co., Wellsville, N. Y.; Electrode Co. of America, Niagara Falls, N. Y.; International Acheson Graphite Co., Niagara Falls, N. Y.; Holmes Fibre Graphite Co., Philadelphia, Pa.; Manhattan Electrical Supply Co., New York, Jersey City, N. J., and Ravenna, Ohio; Jos. Dixon Crucible Co., Jersey City, N. J.

While dry batteries constitute about 60 per cent of the total annual sales of this company, we supply probably not more than 40 per cent of the dry batteries used. The principal other manufacturers of dry batteries are:

Manhattan Electrical Supply Co., New York; American Ever Ready Co., New York; Stackpole Carbon & Battery Co., St. Marys, Pa.; Nungesser Carbon & Battery Co., Cleveland, Ohio; Rock Island Battery Co., Cincinnati, Ohio; French Battery Co., Madison, Wis.; Ame ican Carbon & Battery Co., East St. Louis, Ill.; and a number of smaller manufacturers.

Reference was also made to cost of labor and raw materials. We pay our labor more than three times the wages paid for similar work in France and Germany, and lampblack, an important raw material, costs here almost twice as much as in Europe. On account of its nature the freight rate is high and cost of package very expensive for which reason we do not import it although duty is only 25 per cent.

In addition to Mr. Reisinger, the following are known to us as importers of carbon products:

L. Frorup & Co., New York; H. M. Hirschberg Co., New York; E. E. Cary Co., New York; W.J. Jeandron, New York; Morgan Crucible Co., New York; Kiewert & Co., Milwaukee, Wis.

We know also that carbon electrodes are imported from Sweden and a factory in southern France, but we do not know names of agents here. Electro Metals (Ltd.), of Welland, Canada, also sell electrodes in the United States.

If Mr. Reisinger's business has fallen off as he intimated, it must mean that other importers have increased their sales, which we believe to be the case, as the Government statistics show an increase in both value and amount of importations. Since we began making high-grade carbons the price in this country has greatly decreased and the cost of high-grade inclosed-arc carbons, the kind chiefly used for street lighting, is less than 75 cents per lamp per year. Respectfully submitted.

NATIONAL CARBON Co.,
J. S. CRIDER, General Manager.

NATIONAL CARBON Co.,

Cleveland, Ohio, February 4, 1913. Hon. Oscar W. UNDERWOOD, Chairman Ways and Means Committee,

House of Representatives Washington, D. C. DEAR SIR: In reviewing the testimony submitted at the tariff hearings and in the preparation of a new bill, we ask your consideration of the petition and supplemental letter and statements submitted by us. We wrote on January 2 that we expected to present a statement but in some way our name was not put on your schedule, which was no doubt due to the great amount of work in connection with preparations for the hearings. The writer was present and, when it appeared that there would be no time for appearances other than those on the calendar, filed the statement with Mr. Roper late on January 9, the last day for hearings under Schedule B.

When the Payne bill was being prepared and during its consideration by Congress many misleading, and in some cases manifestly untruthful, statements were made by importers of carbon products, in circular letters and in the public press, one of them being that if the proposed duty on electric-light carbons was adopted it would mean an increase in cost to electric lighting companies of $9 per thousand, which in later statements was reduced to $3.50 per thousand. Instead of the large increase in price predicted, the prices on high grade electric lighting carbons are now about 20 per cent lower than they were prior to the adoption of the present law, and the statistics apparently show that the importers have at least 50 per cent of the total trade in the United States in high grade carbons.

PARAGRAPHS 95-96-CARBON.

We supply about 50 per cent of the total number of high grade electric light carbons used in this country, and even including the low grade electric light carbons, the use of which is rapidly disappearing, our proportion of the total trade in all kinds of carbons used for lighting is less than 60 per cent of the total value.

The sworn statement which we submitted shows that our profit on high grade carbons, from January 1, 1910 to October 31, 1912, was but 5.97 per cent, and in view of this we earnestly hope that your committee will make no reduction in the duty on regular high grade electric light carbons. We have suggested an ad valorem duty to cover flaming arc carbons on account of their great range in prices and the uncertainty as to what the future may bring forth, but the established prices on regular high grade carbons are within a comparatively close range, and we therefore ask for a continuance of a specific duty on them.

We manufacture a complete line of carbon products, but our production is probably less than 50 per cent of the total consumption of these products. High grade carbons for electric lighting comprise only about 10 per cent of our total sales, while dry batteries constitute about 60 per cent of our total business, and yet we supply as near as we can estimate not more than 40 per cent of the total number of dry batteries sold. We have very active competition in all branches of our business, the other domestic manufacturers being as follows: American Carbon & Battery Co., East St. Louis, Ill.; Champion Carbon Co., Loveland, Ohio; Nungesser Carbon & Battery Co., Cleveland, Ohio; Speer Carbon Co. and Stackpole Carbon Co., St. Marys, Pa.; Corliss Carbon Co., Bradford, Pa.; Pure Carbon Co., Wellsville, N. Y.; Electrode Co. of America and International Acheson Graphite Co., Niagara Falls, N. Y.; Holmes Fiber Graphite Co., Philadelphia, Pa.; Manhattan Electric Supply Co., New York, Jersey City, N. J., and Ravenna, Ohio; Jos. Dixon Crucible Co., Jersey City, N. J.

In addition to these there are a number of companies which make dry batteries only and it will therefore be apparent to you, despite statements of importers to the contrary, that we do not have a monopoly of any branch of the carbon business in this country. This company is not a trust and is not interested in any other carbon company. Yours, respectfully,

NATIONAL CARBON Co.,
J. S. CRIDER, General Manager.

BRIEF OF CORLISS CARBON CO., OF BRADFORD, PA.

(Carbon (Pars. 95 and 96. Tariff of 1909).]

Corliss CARBON Co.,

Bradford, Pa., January 9, 1913. As the representative of one of the independent carbon manufacturers, I beg to state that the company I represent, namely, the Corliss Carbon Co., was organized and incorporated about three years ago under the laws of the State of Pennsylvania. That the present existing tariff laws have some bearing upon the existence of our enterprise can not be doubted. Our capitalization is $200,000, fully paid in. The stockholders of the company are mostly business men of Bradford, Pa., and Buffalo, N. Y. These gentlemen furnished the capital for this industry with the natural expectation of at least receiving a fair remuneration on their investment, but as yet said remuneration has not been forthcoming. During the period of the operation of this plant, to wit, two years, money has been actually lost." The perfecting and manufacturing of highgrade carbon product is exceeding slow, tedious, and expensive, and with the continued demand and the rapid development in the electrical world for higher efficiency in carbon brushes the cost of operating the plant is growing more expensive. Particularly is the work of experimenting of necessity very costly.

In the manufacture of carbon products we must employ workmen who are exceptionally skilled, their wages ranging from $2 to $5 per day, and as a result our pay roll constitutes the largest item of expense. Besides these skilled mechanics, we employ electrical engineers, as well as expert electrical chemists.

Competition at the present time is very keen owing to the existence of a number of large manufacturers in this country. Under the present tariff the sale of foreign brushes has increased amazingly, and we are very apprehensive of the result from any curtailment of protection. In fact, we feel that the circumstances warrant an increase of tariff. Our company is engaged exclusively in carbon brush manufacture, and whether we will eventually expand to include other carbon materials-for example, electric-light carbons, battery carbons, etc.—will depend largely upon what measure of protection we enjoy.

PARAGRAPHS 97-98-GLASS AND GLASSWARE.

The personnel of our stockholders comprise practically the principal stockholders in an independent oil refinery located in the city of Bradford, Pa. Petroleum coke is one of its by-products which constitutes the base for raw material in the carbon industry. It is an undisputed fact that three years ago this product was a drug upon the market and hard to dispose of, which, together with the fact that fuel oil, another by-product of the refinery was also a drug on the market, the market price of which was 2 cents per gallon at that time. Undoubtedly this condition was the principal reason for this company engaging in the carbon industry.

I trust this committee will consider all the foregoing facts carefully and before making any recommendations procure further facts pertaining to this industry.

Corliss CARBON Co.,

Otto Koch, President. PARAGRAPH 97.

Plain green or colored, molded or pressed, and flint, lime, or lead glass bottles, vials, jars, and covered or uncovered demijohns, and carboys, any of the foregoing, filled or unfilled, not otherwise specially provided for in this. section, and whether their contents be dutiable or free (except such as contain merchandise subject to an ad valorem rate of duty, or to a rate of duty based in whole or in part upon the value thereof which shall be dutiable at the rate applicable to their contents), shall pay duty as follows: If holding more than one pint, one cent per pound; if holding not more than one pint and not less than one-fourth of a pint, one and one-half cents per pound; if holding less than one-fourth of a pint, fifty cents per gross: Provided, That none of the above articles shall pay a less rate of duty than forty per centum ad valorem: Provided further, That the terms bottles, vials, jars, demijohns, and carboys, as used herein, shall be restricted to such articles when suitable for use as and of the character ordinarily employed as containers for the holding or transportation of merchandise, and not as appliances or implements in chemical

or other operations. For glass bottles, see Italian Chamber of Commerce, page 481. PARAGRAPH 98.

Glass bottles, decanters, and all articles of every description composed wholly or in chief value of glass, ornamented or decorated in any manner, or cut, engraved, painted, decorated, ornamented, colored, stained, silvered, gilded, etched, sand blasted, frosted, or printed in any manner, or ground (except such grinding as is necessary for fitting stoppers or for purposes other than ornamentation), and all articles of every description, including bottles and bottle glassware, composed wholly or in chief value of glass blown either in a mold or otherwise; all of the foregoing, not specially provided for in this section, filled or unfilled, and whether their contents be dutiable or free, sixty per centum ad valorem: Provided, That for the purposes of this act bottles with cut glass stoppers shall, with the stoppers, be deemed entireties.

GLASS AND GLASSWARE.

STATEMENT OF HARRY JENKINS, ALTON, ILL.

The CHAIRMAN. What do you wish to talk about, Mr. Jenkins ?
Mr. JENKINS. The bottle schedule.
The CHAIRMAN. All right; proceed.

Mr. JENKINS. We ask that this committee do not reduce the tariff on bottles any lower than it is. We have always had the bottle tariff and been protected from the lower-paid workmen of Europe, whose bottles are shipped in here in greater quantities than one would imagine. It has been helpful to us in the years gone by, and we believe we have been able to maintain a living wage by that tariff being on there.

The CHAIRMAN. What is the production of bottles in this country!

Mr. JENKINS. I could not say as to that, sir. I do not know. I have not the least idea in the world. I speak from a workman's

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