On the other hand, we may take as fairly representative of the European wages the figures recently supplied by the Imperial Government as to labor in German paper mills for the year 1910, covering 411 reports, including 3,304 skilled and 2,325 unskilled workmen:

The figures so far as obtainable would indicate that the other European paperproducing countries are about on a par with Germany in respect to wages. All of which indicates that the foreign wage amounts to about 45 per cent of that paid by the American producer.

In conclusion let the position and demand of the manufacturer of book paper be distinctly understood. He is not asking for any special favor, and he does not seek to have the Government extend to him consideration which is not enjoyed by every other citizen. At the same time he believes it is his right to insist that there should not be imposed upon him a peculiar burden.

We may all have very decided personal views concerning governmental policies, but book paper manufacturers are nevertheless willing to take their chances and endeavor to live and continue business under any policy that may be adopted, provided the same be applied with impartiality to all American interests. Whether it be protection, high or low, tariff for revenue, or even free trade, they will endeavor to accommodate themselves to the policy if it be uniformly applied to all American interests and applied alike to both the market of purchase and the market of sale.

TESTIMONY OF RICHARD T. STEVENS, PRESIDENT JAPAN PAPER CO.

The witness was duly sworn by the chairman.

Mr. STEVENS. Mr. Chairman and members of the committee, I have a short brief about only one phase of the paper schedule.

The Japan Paper Co. is a corporation composed entirely of American citizens doing business in New York as importers of high-grade printing papers.

In 1912 the importations of this company amounted to $150,000, upon which duties were paid to the Government amounting to $47,000.

PARAGRAPH 409-BOOK PAPER.

Prior to the passage of the act of 1909, "paper commercially known as handmade, or machine handmade paper, Japan paper, and imitation Japan paper by whatever name known" were classified by the Board of Appraisers as printing paper and were entered under paragraph 409 as printing paper.

Under the act of 1909 Congress, however, specifically exempted "paper commercially known as handmade or machine handmade paper, Japan paper, and imitation Japan paper by whatever name known" from the classification of printing paper and put such paper in paragraph 413 under the head of writing paper.

Your witness respectfully states that this classification is unjust and improper inasmuch as none of the papers thus described in paragraph 413 are used for stationery or writing paper, but in nearly all instances are sold to the printing and publishing trades.

The greater volume of the papers thus imported are manufactured by hand and are the products of Japan, China, France, Italy, Germany, and Spain. No paper is manufactured by hand in this country, and, therefore, these papers do not come in competition with any American manufactures.

We respectfully request that paragraph 409 be amended to read as follows:

Printing paper, unsized, sized, or glued, suitable for the printing of books and newspapers, not specially provided for in this section, valued at not above 3 cents per pound, 5 per cent ad valorem; valued at over 3 cents per pound, 10 per cent ad valorem: Provided, however, That as long as such papers valued at not above 4 cents per pound are admitted free of duty from Canada they shall also be admitted free of duty from other countries.

We also respectfully request that paragraph 413 be amended to read as follows:

Writing, letter, note, ledger, bond, record, tablet, typewriter, onionskin and imitation onionskin papers, calendered or uncalendered, in all weights, 20 per cent ad valorem.

We respectfully submit that by adopting these proposed amendments, thereby properly including the papers therein enumerated in the classification of printing paper, the consumer will be benefited, the importations will be largely increased, and the revenue of the Government will be augmented and without injury to any American manufactures.

Mr. HULL. What change in rates did the Payne law make on your product?

Mr. STEVENS. No change in weights.

Mr. HULL. No, I ask what change in the tariff rates. What were the rates in the Dingley law as compared with the rates placed upon it by the Payne law?

Mr. STEVENS. Under the Payne law these papers have a rate of 15 per cent and 3 cents per pound as writing paper. We ask that it be made 10 per cent as printing paper, and providing that as long as such papers valued at not above 4 cents per pound are admitted duty free from Canada they shall also be admitted duty free from other

countries.

Mr. HARRISON. There are no competitors in these papers in this country?

Mr. STEVENS. No, sir.

PARAGRAPH 410-TISSUE PAPER.

Mr. HARRISON. They are noncompetitive products?

Mr. STEVENS. Yes, sir.

Mr. HARRISON. They were not raised in the Payne tariff rates? Mr. STEVENS. They were raised because of reclassification.

PARAGRAPH 410.

Papers commonly known as copying paper, stereotype paper, bibulous paper, tissue paper, pottery paper, and all papers not specially provided for in this section, colored or uncolored, white or printed, weighing not over six pounds to the ream of four hundred and eighty sheets, on the basis of twenty by thirty inches, and whether in reams or any other form, six cents per pound and fifteen per centum ad valorem; if weighing over six pounds and less than ten pounds to the ream, and letter copying books, whether wholly or partly manufactured, five cents per pound and fifteen per centum ad valorem; crepe paper and filtering paper, five cents per pound and fifteen per centum ad valorem: Provided, That no article composed wholly or in chief value of one or more of the papers specified in this paragraph shall pay a less rate of duty than that imposed upon the component paper of chief value of which such article is made.

TISSUE PAPER.

ARGUMENT ADVANCING REASONS WHY TARIFF ON TISSUE PAPERS SHOULD BE SPECIFIC AND NOT AD VALOREM, ETC.

Re Schedule M, paragraph 410.

Hon. OSCAR W. UNDERWOOD,

Chairman Ways and Means Committee,

Washington, D. C.

DEAR SIR: As American manufacturers and importers of tissue paper we believe that a specific duty on tissue paper is one that will best guard the interests alike of the Government, the American manufacturer, and the honest importers against fraud, which can very easily be perpetrated in the importation of this article.

Cheap grades of tissue paper can not be imported into this country even if they were admitted free, as the prices at which they are sold here are as cheap as those in foreign countries, and therefore the levying of either a high or low duty on them would not bring any revenue to the United States.

In the higher grades, which are made both here and abroad, it is difficult from examination to determine the exact value, in evidence of which we attach three grades of tissue made in this country, marked, respectively, A, B, and C. A chemical or any other analysis of these papers, in order to determine the class and value of the raw material used in their inanufacture, would not show a difference of 10 per cent, whereas the range in the values of these three papers is from 6 to 12 cents per pound, the differences in cost being entirely due to the manipulation of practically the same material, which manipulation can not be discovered by examination of any expert in the manufacturing of paper.

We also submit three samples of imported tissue paper, marked, respectively, No. 1, No. 2, and No. 3 (on file). The cost at port of shipment of these three papers ranges from 13 to 21 cents per pound, and in these also practically the same raw material is used for their production. No expert in paper would be able to detect the great variation in the values of these papers.

It must be apparent that there is great latitude for undervaluation of papers of this class for those who wish to be dishonest, if an ad valorem duty instead of a specific duty were levied.

Tissue paper, among papers, is a class by itself and can not be judged as other papers are, the approximate value of which can be very easily ascertained by determining the material from which they are made.

We would therefore suggest and strongly urge that a specific duty be levied on tissue papers and that the rate assessed be as follows: On paper weighing over 6 pounds and not over 10 pounds per ream, basis 20 by 30 inches, 480 sheets, 4 cents per pound.

On paper weighing not over 6 pounds per ream, basis 20 by 30 inches, 480 sheets, 5 cents per pound.

PARAGRAPH 410-BOX BOARD.

This rate of duty would increase importations, insuring a larger revenue than is now obtained, and would at the same time be only competitive with domestic manufacturers and protect honest importers and the Government from frauds that could easily be perpetrated.

ROSE & FRANK Co.

ALFRED FRANK, President.
JAPAN PAPER CO.

RICHARD T. STEVENS, President.

STEREOTYPE PAPER.

STATEMENT OF THE WOOD FLONG CO., NEW YORK, N. Y.

Hon. OSCAR W. UNDERWOOD,
Chairman Committee Ways and Means,

House of Representatives, Washington, D. C.

NEW YORK, January 25, 1913.

DEAR SIR: We respectfully request that the consideration of the present existing tariff on stereotype paper matrices receive the earnest consideration of your committee. This company imports from Germany a prepared paper and pulp flong which is used by newspapers for the making of stereotype molds from which printing plates

are cast.

These flongs have been classified by the customs authorities as "cardboard," and we have been compelled to pay a duty amounting to 35 per cent. This excessive duty has made it impossible for us to derive any revenue from the sale of these flongs, since it has compelled us to make a selling price that newspapers can not afford to pay. These flongs are made by secret process in Germany and can not be made in this country. There are no successful dry flongs made in this country, and therefore by placing them on the free list no home industry could be in the least injured. These dry flongs fill a long-felt want with all American newspapers which use the stereotype process, and these papers would be greatly benefited if they could purchase the flongs at a reasonable price.

We further submit that these flongs are neither cardboard or pasteboard. They are stereotype molds made from wood pulp. They are not laminated, and are therefore not pasteboard.

We hope that this matter will have your favorable consideration, and if further light on the subject is wanted by your committee, we respectfully refer you to Mr. John Norris, chairman committee on paper, American Newspaper Publishers' Association. Mr. Norris can tell you of the great benefit that American newspapers would derive from the use of the dry flong if the excessive tariff did not make its use commercially impossible.

Yours, very truly,

WOOD FLONG CO.

B. WOOD, General Manager.

BOX BOARD.

BRIEF OF THE BOX BOARD MANUFACTURERS' ASSOCIATION.

THE INDUSTRY.

Manufacturers of all kinds of paper boards for boxes and shipping con

tainers.

THE ORGANIZATION.

West of the Allegheny Mountains the Box Board Manufacturers' Association, which comprises 18 mills, producing 1,000 tons daily, out of a total production in the West of 1,700 tons per day. There are about 20 western mills not affiliated with our association.

The production east of the Alleghenies is of about the same volume. These mills are not connected with our organization. The conditions of manufac turing, etc., are practically the same, with the exception that the board, known as strawboard, is not manufactured in the East to any extent.

PARAGRAPH 410-BOX BOARD.

THE RAW MATERIAL.

The raw materials used in manufacturing this product are: Waste paper, straw, sulphite, and ground wood, chemicals.

The most important raw material in use is waste paper, which is collected in all of the larger cities and in many of the smaller ones by junk dealers, and is baled in packages of from 200 to 1,000 pounds each and shipped usually to some near-by mill.

The straw in use by the western mills comes from the farms in the territory usually within a radius of 150 miles of the mill. The sulphite, ground wood, and chemicals form a comparatively small item of expense in the cost of a ton of this product.

LABOR.

The labor in box-board mills is very largely common labor. There is not to exceed in any of the mills more than 20 per cent of what might be called skilled labor.

INVESTMENT.

The investment in these mills in the West will aggregate about $15,000,000 and in the East of about $12,000,000, a total of $27,000.000.

The annual output of a given board mill will just about equal the capital invested.

The cost of the finished product varies but little in any part of the country. There are some advantages, of course, obtaining to the very large mills, but the volume of tonnage produced by the larger mills is not greatest; the greater part of the tonnage being produced by mills ranging from 30 to 50 tons each per day.

THE ELEMENTS OF COST.

The chief items of cost in producing paper board may be roughly classified as follows and in about the proportions given:

Under the present tariff schedules there is practically no competition from Europe with this product in this country. The rate is about high enough to prevent the selling by foreign mills in our markets.

Mills located in Holland chiefly are able to produce a strawboard which meets the needs of European markets at a cost very much below our own, due to the fact that raw material and labor is considerably cheaper. The present price of their product in the London market is $22.50 per ton. Our western mills, which produce all of our strawboard, can not deliver this product on the eastern seaboard at less than a cost of $24.50 to the mill and, in some instances, their cost will run much higher than this.

The rate of freight of the foreign mills would enable them to compete with our mills in the eastern markets of this country if the existing tariff is changed to any extent. Our mills have some advantage in the fact that they can render the service more promptly and in the most of the weights, produce a better article, but if the tariff were changed to any extent the foreign mills manufacturing strawboard would be enabled to take a good part of our eastern business.