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PARAGRAPH 431-TOYS.

[One case, containing 114 dozen dressed jointed dolls, at 8.90 marks ($2.12) a dozen, $23.85. Weight of case,

352 pounds. Measurement, 60 cubic feet.)

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Cost of case.

$2.20

9.2 Freight from German factory to European port..

1.53

6.4 Ocean freight to New York (7.79 cents a cubic foot)

4.67

19.6 Marine insurance, customs entry, loss 1 month interest, cartage.

1.02

4.2 35 per cent duty on value of goods..

$23.85 35 per cent duty on value of case.

2. 20

26.05 9.10 38.1 Total........

18.50 77.5 On the basis of 1912 ocean freight rates it costs $18.50 to land in New York $23.85 worth of dressed jointed dolls, or 77.5 per cent. (One case containing 6 dozen dressed jointed dolls, at 16.50 marks ($3.93 a dozen), $23.58. Weight of case,

286 pounds. Measurement, 60 cubic feet.)

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Total......

17.93 76.0 On the basis of 1912 ocean freight rates it costs $17.93 to land in New York $23.58 worth of dressed jointed dolls, or 76 per cent.

Attention is called to the fact that in the present year 1913 the ocean freight rate is 18.2 per cent higher than given in above illustration. [One case containing 4 dozen jointed dolls, at 20.58 marks (84.90) a dozen, $19.60. Weight of case, 341 pounds.

Measurement, 401 cubic feet.)

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.82

Cost of case.

$2.45 12.5 Freight from German factory to European port..

1.28

6.5 Ocean freight to New York (7.79 cents a cubic foot)..

3.14 16.0 Marine insurance, customs entry, loss 1 month interest, cartage. 35 per cent duty on value of goods.

$19.60 35 per cent duty on value of case..

2.45

22.05 7.72 39.4 Total....

15.41 78.5 On the basis of 1912 ocean freight rates it costs $15.41 to land in New York $19.60 worth of jointed dolls, or 78.5 per cent. [One case containing 35 dozen jointed dolls, at 2.50 marks (594 cents) a dozen, $20.82. Weight of case, 418

pounds. Measurement, 45.9 cubic feet.)

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22. 67

7.94 38.1 Total........

15.64 75. 1 On the basis of 1912 ocean freight rates it costs $15.64 to land in New York $20.82 worth of Jointed dolls, or 75.1 per cent.

Attention is called to the fact that in the present year, 1913, the ocean freight rate is 18.2 per cent higher than given in above illustration.

PARAGRAPH 432-ARTIFICIAL ABRASIVES. (One case, containing 16 dozen dressed jointed dolls, at 4.50 marks ($1.07) a dozen, $17.12. Weight of caso,

308 pounds. Measurement, 51 cubic feet.)

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On the basis of 1912 ocean-freight rates it costs $14.59 to land in New York $17.12 worth of dressed jointed dolls, or 85.2 per cent.

(One case containing 60 dozen composition dolls, at 2.20 marks (52.4 cents) a dozen, 831.44. Weight of case,

616 pounds. Measurement, 60 cubic feet.]

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On the basis of 1912 ocean freight rates it costs $22.50 to land in New York $31.44 worth of composition dolls, or 71.5 per cent.

Attention is called to the fact that in the present year, 1913, the ocean freight rate is 18.2 per cent higher than given in above illustration, PARAGRAPH 432.

Emery grains and emery, manufactured, ground, pulverized, or refined, one cent per pound; emery wheels, emery files, and manufactures of which emery or corundum is the component material of chief value, twenty-five per centum ad valorem; crude artificial abrasives, ten per centum ad valorem.

ARTIFICIAL ABRASIVES.

BRIEF OF THE AMERICAN EMERY WHEEL WORKS, PROVI

DENCE, R. I.

PROVIDENCE, R. I., January 27, 1913. Hon. Oscar W. UNDERWOOD, Chairman Committee on Ways and Means,

House of Representatives, Washington, D. C. Subject: Artificial abrasives.

GENTLEMEN: Under the present tarw act the duty on crude artificial abrasives is 10 per cent ad valorem (Schedule N, paragraph 432). Crushed or refined artificial abrasives are not enumerated and have to pay a duty of 1 per cent per pound. This rate of duty was determined by the appraisers because of the apparent similarity to emery.

We ask and urge that all artificial abrasives, whether crude or refined, be placed upon the free list, and submit the following reasons in support of our request:

Our business is the manufacture of grinding wheels. We are dependent upon a supply of abrasives which are our raw material. The only abrasives suitable for grinding wheels are emery, corundum, and artificial (electrical) abrasives. Emery is

78959°-VOL 5-13- -36

PARAGRAPH 432_ARTIFICIAL ABRASIVES.

distinctly inferior to the other abrasives for the manufacture of grinding wheels, and we could not continue in business if we had only emery. Corundum has been our principal raw material. Corundum in a crude or refined condition is on the free list. The only commercial deposit of good corundum (in Canada) is now nearly exhausted, and it is doubtful if more than a year's supply is left. The price of corundum, due to its scarcity and the increased cost of mining it, has increased 30 per cent in the past three years, and the present cost is almost prohibitive. We shall therefore in the very near future be dependent upon artificial abrasives alone.

The only manufacturers of artificial abrasives in the United States are the Norton Co., of Worcester, Mass., and the Carborundum Co., of Niagara Falls, N. Y. Both of these companies are manufacturers of grinding wheels, and almost monopolize the wheel trade. The two companies named control about 80 per cent of the wheel trade, while we and about 15 small companies divide the remaining 20 per cent. The Norton Co. will not sell its artificial abrasives to any other wheel manufacturers, and the Carborundum Co. will only sell to other wheel manufacturers at a profit that we estimate at fully 100 per cent. It is impossible for us to buy artificial abrasives of them and compete successfully with them for the wheel trade. Both of the companies named manufacture their artificial abrasives under patents.

Even when these patents expire it is doubtful if we could manufacture artificial abrasives. All of the best bauxite (the material we should have to have) in this country is in the hands of the above-named companies, or in the hands of the Aluminum Co. of America. While we can obtain artificial abrasives from Europe, the present duties render it impossible to compete successfully in price with the two companies who have a monopoly in this country. With artificial abrasives, crude or refined, on the free list, the imported abrasives would still cost us more than it costs the Norton Co. and Carborundum Co. to make theirs.

More than 50 per cent of our manufactured product (grinding wheels) is sold abroad. We have secured and held this trade against German, English, and French competition by making a superior article. Artificial abrasives are made in Europe by several independent companies of whom we can buy. These abrasives take the place of corundum which is now on the free list, but the supply of which, as stated, is almost exhausted.

German and English wheel manufacturers are now making wheels that are practically as efficient as ours, and we can not hold our foreign trade for long if we have to pay more for our abrasives, to say nothing of our larger labor costs, than they do.

The present duty on grinding wheels is 25 per cent ad valorem. There are no importations. We should have no objection if the duty is reduced to encourage importations, or if grinding wheels were put on the free list.

The placing of artificial abrasives on the free list would not injure any established industry, as the only two manufacturers in this country use their own product. We, and other grinding wheel manufacturers, will soon be dependent upon a supply of artificial abrasives at a reasonable price. If we do not obtain this supply, we believe the entire wheel trade in this country will be placed in the hands of the two companies we have named.

We shall be glad to answer any questions your committee may wish to ask or to give you any information in our possession. Respectfully,

AMERICAN EMERY WHEEL WORKS,

W. E. RICHMOND, Treasurer. BRIEF OF THE CORTLAND CORUNDUM WHEEL CO., NEW

YORK, N. Y.

New YORK, January 28, 1913. OSCAR W. UNDERWOOD, Chairman Committee on Ways and Means,

House of Representatives, Washington, D. C. SIR: We are informed that Schedule N-Sundries, of the customs tariff act, August 5, 1909, will be taken up for consideration by your committee this week, beginning the 29th.

We desire to submit the request that artificial abrasives-either the crude or the pulverized and graded forms-be placed on the free list. “Artificial abrasives" appear in the tariff act under

paragraph 432 as follows: "Crude artificial abrasives 10 per cent ad valorem.”

Artificial abrasives are being imported into this country in two forms, to wit: In lump or block form, as the material comes from the furnace, and in the crushed or

PARAGRAPH 432-ARTIFICIAL ABRASIVES.

pulverized form, which is produced by crushing the lumps and grading the crushed product into different sizes of grains. Much confusion has arisen in determining how to classify imported artificial abrasives owing to the vagueness of the term "Crude artificial abrasives.” Whether imported in the lump, form or in the crushed grain form the material is in a crude or semicrude state, for it must go through further manufacturing processes of a more or less elaborate nature before these abrasives can be used in the form of grinding wheels, sharpening stones, abrasive cloth and paper, etc.; in short, before ready for application in the field of largest use.

Artificial abrasives are rapidly taking the place of natural abrasives, known as emery and corundum. Neither emery nor corundum are obtained in the United States in quantities of commercial importance, nor is it in the least probable that they could be, no matter what tariff protection was provided. Corundum is being imported from Canada free of duty, either in the lump or the grain form under the existing tariff act, and this is as it should be. The commercial supply of Canada corundum, however, is becoming scarce and the price bids fair soon to be prohibitive.

The production of artificial abrasives in this country is under the protection of patents owned by two manufacturers who are thus enabled to monopolize the output for their sole benefit, so far as the manufacture of these artificial abrasives into grinding wheels, stones, etc., are concerned. One of the manufacturers is selling one of its artificial abrasives in the grain form to competing manufacturers, but in such limited quantities and under such conditions as do not permit of competition on a level footing. There are, in consequence, more than 20 manufacturers of grinding wheels in this country who are dependent chiefly for their supply of high-grade abrasives on importations from abroad, either Canada corundum, which, as before stated, is becoming scarce, or on artificial abrasives. These 20 or more manufacturers, who are unable to produce their own artificial abrasives by reason of patented processes and formulæ, are to a considerable extent selling their manufactured product in the shape of grinding wheels and stones in foreign markets in direct competition with artificial abrasives produced abroad and upon which the foreign manufacturer bears no tariff burden. This necessarily handicaps the American independent manufacturer without any compensating benefit to any American producer.

If for the purpose of protecting revenue, your committee deem it inadvisable to entirely remove the duty from artificial abrasives, we wish to urge with greatest emphasis that at least you place artificial abrasives in the lump or block form (to wit, the crudest state) on the free list, thereby encouraging the larger importation of these crude abrasives and permitting all of the manufacturing and refining processes to be conducted in this country without handicap, and that you place a duty not exceeding 5 per cent on artificial abrasives in the semicrude or grain form. It is our firm conviction, however, that the American industry in finished products will be greatly benefited by putting artificial abrasives in both crude and semicrude or grain forms, as above described, on the free list. Otherwise the large majority of manufacturers of these products in the United Stat will not be and can not be on an equal competitive basis with those manufacturers who have monopoly under patent protection. nor with European competitiors in foreign markets. Very respectfully,

CORTLAND CORUNDUM WHEEL Co.,
E. BERTRAM PIKE, President.

BRIEF OF ABRASIVE MATERIAL CO., PHILADELPHIA, PA.

PHILADELPHIA, PA., January 31, 1913. Oscar W. UNDERWOOD, Chairman Committee on Ways and Means,

House of Representatives, Washington, D. C. SIR: Under information that your committee is this week considering Schedule N, sundries, of the customs tariff, act August 5, 1909, we desire to submit a request that artificial abrasives (either the crude or the pulverized and graded forms) be placed on the free list. At present artificial abrasives appear in the traiff act as follows: “Crude artificial abrasives, 10 per centum ad valorem” (par. 432). This product, as you know, is being imported into America in lump or block form, and in the crushed or grain form, and are termed crude artificial abrasives, as, whether imported in either form mentioned, it must necessarily pass through more or less elaborate manufacturing processes before these abrasives can be used as a finished product-grinding wheels, sharpening stones, or other form of use.

PARAGRAPH 432-ARTIFICIAL ABRASIVES. It is very improbable indeed that no matter what tariff protection might be provided, neither emery nor corundum could be obtained in the United States in quantities of commercial importance: Corundum is being imported from Canada free of duty in any form, and while this is entirely as it should be, the commercial supply of Canada corundum is becoming scarce and the price bidding fair to become proprohibitive. Artificial abrasives are rapidly supplanting the natural ones, which are known as emery or corundum. The score or more of American manufacturers who are unable to produce their own artificial abrasives by reason of patented processes and formula are selling their manufactured product largely in the shape of grinding wheels and stones in foreign markets in direct competition with artificial abrasives produced abroad and upon which the foreign manufacturer bears no tariff burden. This is a great disadvantage to the American independent manufacturer, without any compensatory benefit to American producers. The production of artificial abrasives in the United States, as you may be aware, is under the protection of patents owned by two manufacturers who are by these means able to monopolize the output of artificial abrasives for their exclusive henefit, at least for the manufacture of these abrasives into grinding wheels or stones, etc. One of these two manufacturers sells artificial abrasives in the grain form to competing manufacturers, but in such limited quantities and under such conditions that competition is not equal. This renders in consequence a substantial number of manufacturers of grinding wheels in this country who are dependent largely for their supply of high-grade abrasives on foreign importations-either Canadian corundum or artificial abrasives. If, however, after consideration of these points, your committee deems that it can not entirely remove the duty from artificial abrasives and still protect revenue, we desire strongly that at least artificial abrasives in the lump or black form (their crudest state) be placed on the free list. This would greatly encourage the larger importations of these crude abrasives, permitting all manufacturing and refining processes to labor without handicap, and we also urge that you place a duty not exceeding 5 per cent on artificial abrasives in the semicrude or grain form.

There is no doubt, indeed, however, that the American industry in finished products will be greatly benefited should artificial abrasives in both crude and semicrude forms, be placed on the free list. Until this can be, the large majority of manufacturers of these products in our country can not be on an equal competitive basis with those whose patent protection gives them an American monopoly, or, further, with competing Europeans in foreign markets. Yours, very truly,

THE ABRASIVE MATERIAL Co.,
HARLAN PAGE, President.

BRIEFS CONCERNING ARTIFICIAL ABRASIVES.

New YORK, January 30, 1913. Hon. DANIEL C. ROPER, Clerk of Committee on Ways and Means,

House of Representatives, Washington, D. C. SIR: In going over a number of copies of letters which have been filed with your committee, together with letter signed by the writer and sent to your committee on the 27th inst., I find that one point has not been brought to your attention, viz, that this paragraph was placed on the free list in 1909 during the revision of the last tariff, without any opposition except from the Carborundum Co., who had Senator Root pass an amendment which was effective, and the duty of 10 per cent was imposed. As this company now manufactures crude artificial abrasives in France and imports same to this country, there is absolutely no opposition in this country to placing crude artificial abrasives on the free list.

When this matter comes up. I will be on hand and will give your committee any
further information it may desire, as I represent a number of the large wheel interests.
My address while in Washington will be the Willard Hotel.
Yours, very truly,

ADAMITE ABRASIVE Co.,
M. A. SNIDER, President.

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