The barytes deposits in Kentucky are extensive and of good quality, and proper protection would be the means of adding a new industry to the State. We therefore ask your consideration of this matter in the hopes that some relief may be given this industry and that the duty on crude ore be advanced to $5 per ton. Yours, very truly, THE KENTUCKY BARYTES Co., By G. A. Rox, President. CAMPHOR. BOSTON, December 1, 1908. COMMITTEE ON WAYS AND MEANS, Washington, D. C. GENTLEMEN: I have the honor to suggest respecting the phraseology pertaining to camphor in the tariff revision that the wording be: Camphor, crude natural, free. Camphor, refined natural, 6 cents per pound. Camphor, synthetic, artificial, or other than natural, 6 cents per pound. Very truly, yours, AMERICAN CAMPHOR REFINING COMPANY, CARBONATE OF BARYTA. NEW YORK, December 9, 1908. COMMITTEE ON WAYS AND MEANS, GENTLEMEN: Our attention has been called to a letter or memorandum addressed by Mr. W. D. Gilman, vice-president of the William D. Gilman Company, of Sweetwater, Tenn., to your honorable committee, in reference to the duty on precipitated carbonate of baryta, in the course of which he refers to us by name in connection with various suits and decisions of the Board of General Appraisers relating to the classification of the article. Immediately following this he states in his letter as follows (as reported by the Oil, Paint and Drug Reporter of December 7, 1908, at p. 29): We are still running our plant, but we find it quite impossible to meet the German goods on account of the importers largely evading the duty by undervaluation. It will be seen that Mr. Gilman does not dare in this quotation to mention us by name, but the context is such that the reader will infer that the charge of undervaluation is made against us. We desire most strongly to protest against this indirect and cowardly method of attack. There is no truth whatever in any such reckless charge. It is utterly baseless and false. We take this method of answering, because the proceedings of your honorable body are given the widest publicity, and no business man, no matter how honorable a business career he may have had, can permit such an attack upon him to go unanswered. In view of the publicity which has been given to letters and memoranda presented to you, including the letter above referred to, we sincerely hope that in justice to ourselves your honorable body will give the same publicity to this letter. Respectfully, yours, GABRIEL & SCHALL, CHROMATE AND BICHROMATE OF POTASH. A. KLIPSTEIN & CO., NEW YORK CITY, FILE SUPPLEMENTAL Hon. SERENO E. PAYNE, NEW YORK, December 3, 1908. Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: Referring to our letter of to-day, giving the tariff history of chromate and bichromate of potash in the United States, we attach hereto a table giving the commercial history of these products for the past forty years, and beg to call your attention to the salient facts contained in same. Production of chrome ore in the United States.-It is generally understood that the reason for placing exceptionally high duties on chromate and bichromate of potash was the protection of American chrome ore. You will see from the table that the production of chrome ore in the United States ceased entirely in 1897, and has been practically nil ever since; hence no necessity for extra duty now exists. Importation of chrome ore.-The American bichromate maker now purchases his chrome ore in the open markets of the world, like his English and German competitors, and, being the largest buyer, he is presumably the cheapest buyer. The following figures show the trend of the importation and prices of chrome ore since 1884: 1884 1897. 1907. 2,677 11,570 $27.49 41,999 11.71 The importations for 1897 and 1907 represent the entire consumption, while in 1884 there was probably produced in the United States 2,000 tons, making the total consumption in 1884, say, 4,677 tons. Since 1884 the quantity of chrome ore operated on in this country has increased nearly 1,000 per cent, to 41,999 tons, while the price has declined 240 per cent, from $27.49 to $11.71 per ton. Further, carbonate of potash paid 20 per cent duty in 1884 and now comes in free, which is equivalent to additional duty on chromates; consequently the chromate and bichromate of potash would now have as much protection at 13 cents per pound as in 1884 at 3 cents per pound. Consumption of bichromate in the United States as compared with the rest of the world.-Since the application of the chrome process to tanning leather the United States has become (a) the largest producer of chrome leather; (b) the largest importer of chrome ore; (c) the largest producer of bichromates. This is shown in the following figures from the table: As the principal use of chrome ore is the manufacture of bichromates, the United States must produce more bichromate than all the rest of the world put together, and, being the largest producer, must be the cheapest producer and needs no protection whatever. As the importation practically ceased in 1907, the duty is evidently prohibitive and has resulted in a monopoly. Being the largest manufacturers in the world, in accordance with a well-established law of production, the Americans must be the cheapest manufacturers in the world, and therefore need no protection whatever even to monopolize the business. Bichromates in the shoe and leather industry.-As stated before, the great increase in the production of bichromates has been caused by their use in tanning leather, which began in the United States under the Schultz patent and has since extended to all parts of the world. It has made the "glazed kid leather" of America and the shoes produced from it famous the world over. Our exportations have been as follows since 1903: Recently the English, German, Austrian, Italian, French, and Japanese leather manufacturers have commenced to push vigorously both the manufacture of chrome leather and of shoes made from it. If the present high duty on bichromate is retained, the trade in shoes and leather will vanish away as quickly as it was built up. The American tanner can not pay 9 cents for bichromate of potash and make leather to compete with his German rival, who works with bichromate of potash costing only 53 marks per 100 kilos, or 5.8 cents per pound. In conclusion, we give below the actual quotations for bichromate of potash and bichromate of soda in both England and Germany for the four years, 1905 to 1908, inclusive: Foreign market quotations for bichromates from 1905 to 1908. It appears from the above that while the price varies in the same year between England and Germany, and while in both countries it varies from year to year, in the United States it is fixed without reference to foreign prices or the cost of raw material, care only being taken to keep it just below the point where importation becomes possible. This is clearly shown by what has happened this present year. The price here being fixed for bichromate of soda at 73 cents and the German price being 40 marks per 100 kilos, equal to 4.40 cents per pound f. o. b. Antwerp, or 6.6 cents per pound duty paid here, it has been possible since last July to import and sell 800 tons of German goods in competition with the American bichromate mo nopoly. Becoming aware of this fact, the "trust" has promptly reduced its price of bichromate of soda to 63 cents, just enough to prevent the importation of German goods, although, from the foregoing statistics, it is more than probable that it could sell at 4 cents and still make profits. Respectfully submitted. KLIPSTEIN & Co., E. C. KLIPSTEIN, Treasurer. Query Is the Government of the United States not entitled to some revenue for so much protection? If so, should not the duty be lowered to a revenue-producing point; at least some revenue? |