PARAGRAPH 436-MATCHES.

Blazer, or so-called wind matches, whether of the so-called safety or strike-anywhere type.

SEC. 2. No person, firm, or corporation shall sell or otherwise distribute for use, any matches, unless the box or container in which such matches are packed bears plainly marked on the outside thereof, the name of the manufacturer and the brand or trade-mark under which such matches are sold or distributed.

SEC. 3. Not more than one case of each brand of matches of any type or manufacture shall be open at any time in any store or warehouse in the city of and no loose boxes or paper-wrapped packages of matches shall be kept on shelves or stored loose in such stores or warehouses at a height exceeding 5 feet from the floor.

SEC. 4. Matches, when stored, must be kept only in sound cases and not piled to a height exceeding 10 feet from the floor. No matches shall be stored within a horizontal distance of 10 feet from any heating apparatus, such as boiler, furnace, stove, etc., nor within a horizontal distance of 25 feet from any explosive material stored on the same floor.

SEC. 5. Matches shall be packed in boxes or suitable packages containing not more than 700 matches in any box or package: Provided, however, That when more than 300 matches are packed in any one box or package, the said matches shall be arranged in two nearly equal portions, the heads of the matches in the upper portion pointing in the opposite direction from the heads of the matches in the lower portion. AÏÏ boxes containing 350 or more matches shall have placed therein a center holding or protecting strip, made of chip board, not less than 1 inches wide; said strip shall be placed on the top of the matches in the box and be flanged down on each end to hold the matches in position when the box is nested in the shuck or withdrawn from it. SEC. 6. All match boxes or packages shall be packed in strong shipping containers or cases. The maximum number of match boxes or packages contained in any one shipping container or case shall not exceed the following:

Nominal number of

matches per box.

700

500

400

300

200

100

.over 50 and under.. 100 .....under.. 50

No shipping container or case constructed of fiber board, corrugated fiber board, or of wood, nailed or wire bound, containing matches, shall have a weight, including its contents, exceeding 75 pounds, and no lock-cornered wooden case containing matches shall have a weight, including its contents, exceeding 85 pounds.

No shipping container or case containing matches shall have an internal volume exceeding 8,000 cubic inches. Matches shall not be packed in any shipping container or case with any other article or commodity. All shipping containers or cases containing "Strike-anywhere" matches shall have plainly marked on the outside thereof the words, "Strike-anywhere matches," and all shipping containers or cases containing "Strike-on-box matches" shall have plainly marked on the outside thereof the words "Strike-on-box matches."

SEC. 7. Any person, firm, or corporation violating any of the provisions of this ordinance shall be fined not less than $5 nor more than $25 for each offense. SEC. 8. This ordinance shall take effect and go in force

[Journal of Commerce, Jan. 27, 1913.]

*

FIRE-PREVENTION CAMPAIGN-MINNESOTA GOVERNOR RECOMMENDS SUPPRESSION OF THE CRIMINAL MATCH.

66

The recommendations to the Minnesota Legislature by Gov. Eberhart included the following:

"The fire-prevention campaign which has been carried on by the State fire marshal's office and the Minnesota Fire-Prevention Association during the past year has borne tremendous fruit. It is estimated by the State fire marshal that the loss to our people by fire has been reduced from approximately $5,400,000 in 1911 to $4,200,000 in 1912. Considering what the tremendous fire waste in the United States means to our people this is exceedingly encouraging. The average per capita fire tax in Europe is about 33 cents, while in the United States it is approximately $2.50. Much can be done by way of legislation to assist in this fire-prevention campaign.

PARAGRAPH 436-MATCHES.

"THE CRIMINAL MATCH.

"It is estimated that 10 per cent of our annual fire losses is due to our so-called parlor match. The national convention of insurance commissioners has indorsed for passage in the various States a bill which by its terms would prohibit the manufacture, sale, and distribution of the so-called criminal parlor match. A similar law will be found on the statute books of a number of European countries. Your commissioner hopes that this proposed measure may have the attention of the legislature.

"OVERINSURANCE.

"Overinsurance is, beyond a doubt, responsible for a very large percentage of the fire losses in the United States. Avaricious fire insurance agents, for the sake of a few paltry dollars in commission, will induce men to overinsure their property. Too frequently we see a man of apparently good character and honest purpose who, when he finds himself confronted with financial difficulties, knowing that his property is insured for more than its actual value, yields to temptation, burns his property, and secures the face value of his policy in exchange for a poor investment.

"More frequent it is that the incendiarist, premeditating crime, secures insurance on his property for more than it is worth and then burns it. It is a notorious fact that the assured can secure in some company or other insurance in a greater amount than the value of his property.

"The evils of overinsurance are not limited to the insured alone. Numerous complaints have been made to this department that the neighbors or adjacent property owners of the complainants have their property vastly overinsured, endangering the property and lives of the community.

The State fire marshal should be empowered to make appraisements of property insured, report the same to the commissioner of insurance, who should be clothed with authority to order the cancellation of any policy insuring property in excess of such valuation and with authority to cancel the license of the agent who placed the insurance. Where the property is found to be overinsured the expenses of the State fire marshal for investigating the risk should be charged to the company with whom the insurance is placed."

EXHIBITS.

(A) Sample box of American nonpoisonous household matches of which the splints have not been "impregnated" and leave a dangerous fire-creating afterglow, or live coal. This will be the common type of American matches that will be placed on the market in conformity with the Esch-Hughes legislation. Unimpregnated matches should be prohibited by law through excessive taxation.

(B) Sample box of European "safety" matches, containing about 60 matches. This match is made from aspen wood, which is a superior wood for match manufacture. This type of match is rarely used in the American household, but is to be found in cafés, cigar stores, hotels, etc.

(C) Sample box American safety matches, containing about 45 matches, against 60 of European box, sold at same price. This match is inferior to European product. (D) Sample box European safety matches, with unimpregnated splints. Importation should be prohibited.

(E) European match, nonpoisonous, impregnated. Sold in England. Tariff too high for importation into United States.

(F) Sample box of matches of American manufacture containing approximately 1,000 matches. These matches are unsafe, as they are poisonous and are not "impregnated." They are sold on the New York City market at about 3 cents to the jobber, 3 cents to the retail trade, and 5 cents to the consumer. These matches are now outlawed by the new match law of New York City.

(G) Sample box of European matches, nonpoisonous, with the imperfectly impregnated tips. This is an excellent match, and if more care was used in impregnation process, would be a better and safer match than the so-called "safetys"; strike on boxes.

(H) Sample box of European matches with the "impregnated" splints, but with the ignition tips containing white phosphorus. The importation of these matches is prohibited since January 1, 1913.

(1) Sample box of American matches of the household type. These matches are absolutely nonpoisonous and the splints are "impregnated," insuring complete carbonization under combustion, leaving no live coal of afterglow after the flame of the match is extinguished.

(J) Sample box of matches, common American type. Poisonous and unimpregnated.

PARAGRAPH 436-MATCHES.

LETTER AND BRIEF OF WARREN B. HUTCHINSON, NEW YORK, N. Y., CONCERNING MATCHES.

NEW YORK, January 16, 1913.

The CHAIRMAN OF THE COMMITTEE ON WAYS AND MEANS,

House of Representatives, Washington, D. C.

SIR: My letter to your committee is on behalf of several companies which I represent, and which are interested in the tariff as affecting matches, on the double ground that they manufacture matches in this country and also import them. Section No. 436 of the present tariff regulations reads as follows:

436. Matches, friction or lucifer, of all descriptions, per gross of one hundred and forty-four boxes, containing not more than one hundred matches per box, six cents per gross; when imported otherwise than in boxes containing not more than one hundred matches each, three-fourths of one cent per one thousand matches; wax and fancy matches and tapers, thirty-five per centum ad valorem."

I do not understand the reason for the peculiar phraseology of this section. Practically, it works a great hardship on the importer, and especially on the public, without any corresponding benefit to anyone.

The popular size of match boxes for family use is a box which contains approximately 500 matches. This size is getting to be so generally used for household purposes that its use might be said to be almost universal for this purpose. This, then, is the size of box which is chiefly affected by the section referred to. Practically it works out in this way. A gross of matches containing not more than 100 matches to the box, or 14,400 matches, pays an import of 6 cents; whereas a gross of matches with 500 matches to the box, or 72,000 matches, instead of paying a duty of 30 cents, which would be the natural duty based on the 6 cents per 100-box rate, amounts to 54 cents per 100. It would seem that this peculiar rate is a direct injury to the housekeeper, and if there is any reason for it, it is past finding out by myself and my clients.

We would suggest to your committee that the rate per 1,000 matches should be uniform at least, but that if there is to be any variations in the rate, owing to increased size of boxes, the rate should be reduced gradually on the larger sizes, rather than increased, because the larger boxes go directly into the home for practical and necessary uses, whereas the smaller sizes are used as articles of luxury by smokers, mostly. This applies especially to boxes of 100 or less, which can be carried in the pocket, whereas boxes containing upward of 100 are used in the house, and therefore the increased tariff is a direct burden on the people least able to pay it.

It is suggested to your committee, therefore, that this inequitable arrangement of the present schedule should be adjusted so as to avoid discriminating against the household consumer, and further that the rate should not be increased. The present rate is such that it practically bars out the foreign match, although it is well known in the trade that the matches of European make are superior to those of domestic manufacture. If the rate is lowered rather than raised, the result will be to compel the American manufacturer to make a better match, and the public will distinctly benefit thereby. Respectfully submitted.

WARREN B. HUTCHINSON.

RE SCHEDULE N, MATCHES.

SALVATION MATCH CO.,

New York, January 24, 1913.

To the chairman and members of the Committee on Ways and Means, House of Representatives, Washington, D. C.

GENTLEMEN: Supplementing my letter of the 16th instant, concerning the tariff on matches, permit me to say that I have been advised that the largest match manufacturing concern in America is engaged in an effort to have the duty on "safety" matches increased. This duty at present is 6 cents per gross of 144 boxes containing less than 100 matches to the box.

It may appear strange to your committee to have a match manufacturer plead against an increased duty on safety matches. My reasons for doing this will appear below. Safety matches in the United States are made by only one concern, to wit. the Diamond Match Co., and this concern does not make them very extensively, Safety matches have not as yet entered seriously into competition with the strikeanywhere match, for the reason that the American public is educated to use the strike-anywhere match, and if this style of match is made with an impregnated splint and a nonpoisonous tip, it is as safe as the safety match, and has the advantage of striking on any surface.

PARAGRAPH 436-MATCHES.

I am credibly advised that the Diamond Match Co. has spent an enormous sum in the manufacture of safety-match machinery, and I do not make this as an accusation, but it would seem that the object of this corporation is to procure a high tariff on safety matches, also procure State and municipal legislation which will require the use of these matches, and thus give them a stronger monopoly on the match trade than they have ever had, and, as is well known to your committee, this company has been almost in control of the match trade in America for the last 30 or 40 years.

Your attention is called to an item published in the Chicago Evening Post of January 17, 1913, as follows:

Chicago will use safety matches exclusively after July 1, if the recommendation which the council building committee adopted to-day is passed by the council. The matter came up during consideration of sections of the fire prevention bureau ordinance, which were not passed when the bureau was established.

""

This is a sample of what is taking place in very many of the larger cities and in many of the States. I have no legal evidence to offer to your committee that this is done on behalf of any one corporation or set of corporations, but this would not affect the material fact which, as I understand it, is this: That if the tariff is raised abnormally so as to practically exclude foreign safety matches, it makes it a perfectly feasible scheme for a corporation or combination of corporations to procure legislation of the kind specified, and thus create a monopoly in themselves to the destruction of every other manufacturer in the business.

This, then, is the reason why we, as match manufacturers, oppose any raising of duty on safety matches. The admission of such matches under the present regulations does not interfere with the business of the ordinary match manufacturer, because the total imports of matches of all kinds, as I understand it, are only 5 per cent of the total volume of trade, and the safety match does not enter into competition with the ordinary household match which strikes on any surface.

Custom in trade matters is very strong, and the trade it is thought would not accept safety matches unless they are made in the ordinary way and packed in the ordinary veneer or wood box of commerce. American woods can not be utilized for making boxes such as the trade calls for, and the machinery suitable for strike-anywhere matches is not in all respects adapted to the manufacture of safety matches. Furthermore, practically every manufacturer of matches in the United States is situated, as regards capital, in such a way that it can not afford to go to the enormous expense of importing its box material and revising its factory methods to make safety matches. Finally, it is submitted that no possible good could come from raising the tariff, as it would result in a larger cost to the consumer, might result, as above pointed out, in putting nearly every manufacturer in this country out of business by creating a monopoly in the manufacture of this match, and it could not benefit the average manufacturer because the safety match, as stated, does not compete with the strikeanywhere match, and he could not make the safety match in any event.

It is therefore respectfully submitted that the raising of duties on safety matches would work a hardship on the consumer, without any corresponding benefit to any one, and it is my opinion that if there is any change whatever in the tariff rates, it should be in the way of lessening rather than increasing the duty on safety matches. Respectfully,

SALVATION MATCH CO.,

WARREN B. HUTCHINSON, President.

BRIEF OF OHIO MATCH CO., WADSWORTH, OHIO, ET AL.

Hon. OSCAR UNDERWOOD,

Chairman Ways and Means Committee, Washington, D. C.

SIR: The undersigned match manufacturers respectfully submit the following statements in regard to the duty on matches. (See paragraph 436, Schedule N.)

There are 26 match factories in the United States according to the census report of 1909, of which number 5 are operated by the Diamond Match Co., and the remainder by various corporations and firms, none of which operates more than one plant. The production of the Diamond Match Co. is variously estimated at from 50 to 60 per cent of the total production of the United States; the production of the undersigned is believed to be about 30 to 40 per cent of the total. We desire two things:

(1) That no reduction be made in the duties on matches, and that if any change be made in the present law the duties be increased.

(2) That the language of the last clause of paragraph 436 be changed so as to make it clear that safety matches are included in the 35 per cent classification.

PARAGRAPH 436-MATCHES.

Omitting a negligible quantity of unusual forms, matches are of two kinds: Those igniting by friction produced by rubbing them upon any rough surface, commonly called "strike anywhere" matches, and those which can be ignited only by rubbing them upon a specially prepared surface, known usually as safety" matches. All but a very small percentage of American-made matches are of the "strike anywhere" kind. Practically all of them have been made by the use of poisonous white or yellow phosphorus. By the act of April 9, 1912, known as the Hughes bill, the use of this phosphorus in the manufacture of matches is made impossible after July 1, 1913, by a prohibitive internal-revenue tax. After that date, therefore, matches must be made of sesquisulphide or of nonpoisonous red or scarlet phosphorus, or else safety matches must be used exclusively.

In the hearings on the Hughes bill it was stated by several of the experts that the use of nonpoisonous substitutes for the white or yellow phosphorus would add to the cost of production from 5 to 7 per cent. We believe this estimate to be correct. In addition to this added cost of production, it is conceded that no method of manufacture has yet been perfected that will succeed in producing as good a "strike anywhere" match, from the standpoint of the user, as the poisonous phosphorus match. The advantages of the safety match over the "strike anywhere" match will, therefore, be greatly increased. In view of this burden just imposed upon the match industry by the use by Congress of the taxing power, and in view of the further fact that the duties were reduced 25 per cent less than four years ago, we believe that our request is reasonable in asking that no further reduction be made in the import duties while the industry is going through its readjustment to meet the new conditions.

COST OF PRODUCTION.

As we understand the aim of the framers of the proposed new law, they desire, where possible, to effect the reduction of the cost of articles to the ultimate consumer, to produce a fair revenue from importations, and at the same time to so legislate as not to produce disaster to either the legitimate capital or to labor employed in American industries. To meet this aim we present the following facts which we believe to be correct and to fairly present the relation of the tariff to the match industry:

The chief items of cost of production are the wood, the chemicals, and labor. The wood chiefly used in imported matches is the Russian aspen. This wood is sold, delivered at Russian ports, for 30 shillings per load of 50 cubic feet, or $12 per 1,000 feet board measure. The only wood available in America for the production of matches on a large scale is selected white pine. The cost of this wood in this country is from $27 to $35 per 1,000 feet, the variation in price depending on the point of delivery. The cost of the chemicals is considerably higher in the United States than in Europe. The census summary of the match industry, printed on page 17 of the Tariff Handbook, would indicate an excessivley high profit in the business, if it were assumed that the difference between the value of products and the combined value of salaries, wages, and materials there given represented profits. Such is not the fact. An important group of expenses is omitted from that table. We have obtained from the proof sheets of the census report not yet published the summary of all the statistics gathered relating to the match industry. It is as follows: