EXHIBIT H.

Prices of glassine papers, f. o. b. Antwerp, reduced to American standard.

Prices of grease-proof parchment f. o. b. Antwerp or Gottenburg, reduced to

The above statements of cost were given by reliable importers from actual purchases made from various mills in Germany and Sweden, and fairly represent the range of prices during those years.

Reduction in the German and Swedish prices on grease-proof and glassine papers since 1905, in which year the Hartford City Paper Company began manufacturing these papers in the United States.

Price per pound f. o. b. Antwerp of white glassine in 1905, 5.5 cents; in 1908, 5 cents. Reduction since 1905, $10 per ton. Price per pound f. o. b. Antwerp of natural glassine in 1905, 4.1 cents; in 1908, 3.83 cents. Reduction since 1905, $6 per ton. Price per pound f. o. b. Antwerp of colored glassine, in 1905, 5.9 cents; in 1908, 5.5 cents. Reduction since 1905, $8 per ton. Price per pound f. o. b. Gottenborg of No. 1 grease-proof, in 1905, 4.8 cents; in 1908, 4.23 cents. Reduction since 1905, $11.40 per ton.

Costs of imported glassine paper compared to cost of producing same in the Hartford City Paper Company's mill, Hartford City, Ind.

White glassine of German manufacture costs the importer now $100 per ton f. o. b. Antwerp. Same grade of paper costs Hartford

City Paper Company to manufacture $145.16. No. 1 grease proof, of Swedish manufacture, costs the importer now $84.60 per ton f. o. b. Gottenborg. Same grade of paper costs the Hartford City Paper Company to manufacture $110.97.

Comparative statement of f. o. b. cost, duty paid, under present valuation of white glassine paper, at Antwerp and at Hartford City Mill, Hartford City, Ind.:

Comparative statement of f. o. b. cost, duty paid, under present valuation of grease-proof paper, manufactured at Gottenborg, Sweden, and at Hartford City, Ind.:

Imported. Domestic.

Selling price per ton, f. o. b. Gottenborg-
Duty, 25 per cent ad valore:n...

$81.60

21.15

Freight, Gottenborg to Atlantic seaports, 20 cents per 100 pounds.
Insurance, commission, and cartage, 2 per cent.
Cost per ton of same grade at Hartford City mill..
Freight, Hartford City to New York, L. C. L...

4.00

1.68

$110.97 9.00

Total cost in New York under present classification.....

111.43

119.97

The above comparison is made on the highest grades of imported papers with the same grades of domestic papers. On lower grades of paper the difference in cost delivered in New York is still greater in favor of the imported papers.

STATEMENT OF MR. R. S. ELLIOTT, OF PHILADELPHIA, PA.

Mr. ELLIOTT. Mr. Chairman, I think I can get through in five minutes.

The CHAIRMAN. Be as brief as you can.

Mr. ELLIOTT. I desire to present before this committee the following facts, showing why the present rate of duty on glassine and grease-proof papers, as covered by article 402 of the present tariff. should remain the same.

The CHAIRMAN. You can file your brief.

Mr. ELLIOTT. I just wanted to read that page.

The CHAIRMAN. All right.

Mr. ELLIOTT (reads):

The gradual increase in the consumption of these papers in the past twelve years has reached a total, at the present time, of 5,000,000 pounds of greaseproof papers and 10,000,000 pounds of glassine paper per year. Of this amount

American manufacturers are producing approximately 4,000,000 pounds of greaseproof papers and 2,500,000 pounds of the glassine. This business has been established under the present rate of duty, and any increase in the rate would tend to upset the conditions which have become established among the various trades using this class of paper. The domestic manufacturers are producing nearly all the grease-proof paper consumed in America, but only a fraction of the consumption of glassine paper. It will be many years before the American manufacturers will be able to produce the extra 8,000,000 pounds of glassine which is now imported, to say nothing of the natural increase in the consump tion of these papers. An increase in the present rate of duty on these classes of paper would prevent the large manufacturers of bags and envelopes in this country from competing with the finished articles, which could be imported from abroad, where the cost of labor of manufacturing is much less.

Now, I want to give you just one point. If you change the specification of this paper and put it at $2.10, it will affect the fig manufacturers in California to the tune of about $10.000 a year. If you change the rate on that paper, it will do that. The reason for that is that glassine paper has only been produced in this country in the last two years. It is a specialty, and if you raise the tariff it would take two or three years for another mill to learn to make that paper. In the meantime concerns like the Worcester Envelope Company and the American Paper Goods Company-that employ hundreds of people--would absolutely be at the mercy of envelopes and photographic inclosures made on the other side.

I would like to read a letter from the Worcester Envelope Company, which will show the situation. [Reads:]

The Ways and Means Committee,

WORCESTER, MASS., November 19, 1908.

National House of Representatives, Washington, D. C.

GENTLEMEN: In reference to the present duty on transparent imitation parchmyn, or glassine paper, we beg to say that we as manufacturers of envelopes and other goods made from this paper find it impossible in the majority of cases to compete with the foreign manufacturer, who can procure the paper at the mill in Germany or in the same country in which he resides.

We understand that there is one factory in this country making paper of this kind, and we are informed by a firm of manufacturers in Europe that they will shortly also establish a branch factory here in this country. They state that it is possible to manufacture this paper here at a good profit with the present existing tariff. From this we submit that there should be no advance, and we strongly urge that there be some reduction, so that we can compete on large orders with the European manufacturers who are placing their goods direct here.

Very respectfully, yours,

Dictated by George D. Barber.

WORCESTER ENVELOPF Co.

Then there is another thing: The American manufacturer asks for a change in the classification of this paper to a parchment paper, but the American manufacturer is able on his grease-proof paper to compete with that vegetable parchment. That vegetable parchment is a much higher grade of paper. There are three manufacturers in this country making it, but the American manufacturer of greaseproof paper has produced such a superior article in color that he is able to influence trade away from the three vegetable parchment mills, who make a much higher grade of stock; so that you could see that to change the classification of this paper, which is a wood paper and not a cotton-stock paper like the vegetable parchment is-the vegetable parchment is worth twice as much-and to ask for an increase of 100 per cent, for that is what it amounts to; you can figure

out exactly what it means to the American using this paper, like box and envelope makers and factories like that.

I would like to file some briefs. I can not do it to-day.
The CHAIRMAN. Give it to the reporter.

Mr. Elliott filed the following:

Notwithstanding the fact that the domestic manufacturers, under the present rate of duty, are now supplying nearly the full consumption of grease-proof papers, they ask for an increase of over 100 per cent in the present rate of duty, and ask for as great a rate as is assessed on vegetable parchment paper, which costs over twice as much per pound. But the domestic manufacturers are also producing an imitation vegetable parchment under the 25 per cent rate of duty which successfully competes with genuine domestic parchment paper.

Mr. W. H. SHORT, of Springfield, Mass. Mr. Chairman, the committee on surface paper will be represented by Mr. Faber. We will make only one argument.

The CHAIRMAN. Very well.

STATEMENT OF MR. H. B. FABER, OF NEW YORK, REPRESENTING THE MANUFACTURERS OF SURFACE-COATED PAPERS.

Mr. FABER. Mr. Chairman and gentlemen of the committee, I will not read my brief, but will simply state some of the main features connected with it.

This is an old industry, the surface-coated paper, paper familiar to you all, and paper used to cover boxes-shoe boxes and hat boxes, and various boxes of that description. This paper has been manufactured in Germany for a great number of years, but it is a relatively young industry in this country. It is a paper that is manufactured by putting onto a white paper stock a color and then polishing this color to make a glazed finished surface, which you will see in samples on the back of this brief.

Now, the main feature of the argument is to show that the imports of the foreign papers have increased from 4,000,000 pounds in 1902 to 8,000,000 pounds in 1907. The manufacturers of surface-coated papers in this country have suffered a corresponding decrease, not so much on their output as in their profits, due to this increase of approximately 100 per cent in the importations of glazed papers. The reason that these foreign papers have come into this country in the volume that they have is due to the cost of production in Germany and the cost of production in this country.

On page 6 of this brief I have calculated the cost of producing this grade of goods in this country and in Germany, and you will notice that to manufacture a unit quantity of this grade, which we call a ream, which is 480 or 500 sheets of paper 20 inches by 24-to manufacture this unit quantity it costs us in this country $2.25, while in Germany they can manufacture the same thing for $1.19. The reason for that is that the paper stock that they use is slightly cheaper. Their color is slightly cheaper, and their labor very much so, and you will notice that the labor item in the American product is 49 cents as against 10 cents in the German.

These figures, as you will notice in making the comparison of cost, have been very carefully compiled. I have done the work myself,

and they have covered over 5.000 individual orders that have been turned out and sold to the individual trade. They have been made up in percentages and simplified, of course, under four headings, as you will see on page 5, which will give you the component percentages which enter into the cost of production.

In taking my figures of German cost I have taken an extract from Carl Hoffmann's paper, the Papier Zietung, which is a recognized authority, where he asks the German manufacturers of these goods for their statements of cost; and he has printed that statement in detail, giving the labor of a single laborer on the machine, and that appears on page 7. That is an authentic statement, and it can be relied upon. In that statement he shows that the cost of manufacturing this product in Germany is $1.19, as against the cost in this country which we show, and which is the combined opinion of all the manufacturers in the trade in this line, of $2.25. This paper manufacured in Germany for $1.19 enters this country, all duties paid, for $1.81, and sells in the open markets for from $1.90 to $2 a ream, against our product manufactured at a cost of $2.25. That shows why the imports of that grade of paper have been on a steady increase, and why the manufacturers in this country have suffered a decrease in their profits.

The American manufacturers have been compelled in late years to throw into the market an imitation paper, and I have submitted a sample of the imitation on the second from the last sheet attached to the brief. To every appearance that imitation resembles the imported papers. It is of the same weight and of the same appearance and of the same character, but the packing qualities of the paper are very different. It is made by an entirely different method. The burnishing is put on longitudinally instead of across the paper, and when that paper is used by the box makers they encounter difficulties which they do not encounter in the imported or domestic flints. This imitation paper we can manufacture in this country for $1.90 a ream, and you will find on page 8 a detailed statement of our costs. That is the best we can do, $1.90 a ream, and that imitation paper at a cost of $1.90 a ream has to compete against the foreign flint paper which it is an imitation of, sold in this country at $2.90, manufactured in Germany at $1.19.

Mr. CRUMPACKER. What is the duty?

Mr. FABER. About 62 cents.

Mr. DALZELL. You want to make it 6 cents a pound?

Mr. CRUMPACKER. What would that be ad valorem under your present rate?

Mr. FABER. I should judge it would be about 70 or 80 per cent ad valorem. It would have to be double the duty we have on now, and you will see the duty here on page 4. The ad valorem duty figures

up in the neighborhood of 40 per cent. Mr. CLARK. Of this surface-coated paper that you are talking about, you say there has been an enormous increase in the importation?

Mr. FABER. There has been.

Mr. CLARK. According to your own figures, in the year ending June 30, 1903, they imported 1.359.110.25 pounds, and in the year ending June 30, 1907, there was imported only 1,380.781.50. That is an increase of only about 20.000 pounds in five years.