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PARAGRAPH 437-AMMUNITION.

All the parties above mentioned are reputable people and are said to be giving the business close attention. It is believed by well-informed authorities that with the backing of Parrott & Co. the Coast Supply Co. is amply responsible for its business obligations.

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.. July 27,

1911.

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[Telephone Sutter, 989. Cable address: "Mullbish" A. B. C. 5th edition. Imperial German Blasting Fuse, Rox-all Brand, Reliance Brand. Shipping Points: San Francisco, Galveston, Philadelphia. 311 California St.)

NationAL FUSE Co. OF CALIFORNIA,

San Francisco, U. S. A., January 5, 1912. CREBSON CONSOLIDATED GOLD MINING & MILLING Co.,

Cripple Creek, Colo. GENTLEMEN: We beg to announce our entry into this field for the purpose of supplying the mining community, at a moderate price, the most reliable blasting fuse, and solicit an opportunity to submit samples in order that you may demonstrate the merits of the product to your full satisfaction before considering the matter of purchases.

If you will advise us of your annual consumption and shipping point, we would be very glad to forward, prepaid, by express, entirely without cost to you, sufficient of the fuse to enable you to make a practical test

, and quote prices which we think, will be attractive enough to merit your continued patronage. Thanking you in advance for the courtesy of a reply, we are, Very truly, yours,

NATIONAL Fuse Co.,

By W. J. MULLIGAN. For your information we might add that Parrott & Co., mentioned in the foregoing financial report, are the Pacific coast agents of the Insoloid Fuse Co. of Denver (J. Fitz Brind being the whole company), importers of German Insoloid fuse. Thus they are cutting three ways.

Attention is also called to the fact that importers have but little capital invested, the maximum not amounting at any time over $3,500 to $4,000, and running no risks of manufacture and paying no taxes on plants or materials, while the American manufacturers have about $3,000,000 in vested, pay taxes on the same, and run all the risks incident to the manufacture of fuse.

To enable us to show your committee the selling prices on imported fuse, we instructed our traveling representative to gather data on prices being quoted' by importers. The following is his report:

OAKLAND, CAL., December 2, 1912. A. H. MERRITT, Esq., Vice President and General Manager,

Coast Manufacturing & Supply Co., Oakland, Cal. Dear Sir: Complying with your request of recent date, I am now handing you a copy of the different brands of fuse, of German and Belgium manufacture, that are competing with the products of the domestic fuse companies on the Pacific coast, at all points near and west of Denver, Colo. Importer, Germania Importing Co., New York City. - Brands imported,

Star brand and Rexall brand. Star quoted at $15.30 f. o. b. New York or Galveston, Tex.; $16.50 f. o. b. Arizona points; $17.25 f. o. b. Spokane or Seattle; $18.50 f. o. b. Salt Lake City. Rexall quoted at $14 f. o. b. New York City or Galveston. Invoice for customhouse $10.37 per case, $1.73 per thousand feet.

Importer, E. 1. du Pont de Nemours Pouder Co.- Brands imported, Z. L., Neptune, and Rubberite. Z. L. quoted 25-case lots, $25.45 f. o. b. Denver; 5-case lots, $25.95 f. o. b. Denver; l-case lots $27.0 f. o. b. Denver. 2. L. quoted $4.50 per 1,000 feet f. o. b. San Francisco, with the following discounts: l-case fots, 5 per cent; 5-case lots, 74 per cent; 15-case lots, 10 per cent; 50-case lots, 10 and 5 per cent; car (210 cases), 10 and 74 per cent. Neptune and Rubberite are quoted at $4 per 1,000 feet with the above discounts.

Nors.--The above quotations on the Z. L. and Neptune fuse are not adhered to by the powder company, as Z. L. is reported quoted as low as $14.65 per case f. o. b. El Paso. Neptune quoted $18 f. o. b. Galveston to several customers in Arizona.

Importer, Giant Powder Co. Consolidated of San Franci co, Cal.-- Brand imported, Z. L. No quotations at hand.

.

PARAGRAPH 437-AMMUNITION,

Importer, Autolight Co. of New York City.--Brands imported, Standard and Rival brands. This fuse is being used in the Coeur d'Alene district and is being quoted below our prices in all cases.

Importer, National Fuse Co. of California. - Brands imported, Rexall, Panama, and Reliance. Rexall, $4.50 per 1,000 feet f. o. b. San Francisco; Panama, $4.25 per 1,000 feet f. o. b. San Francisco; Reliance, $3.75 per 1,000 feet f. o. b. San Francisco. Discounts, 10 and 10 per cent in 5-case lots.

Importer, Insoloid Fuse Co. of Denver, Colo.—Brands imported, Insoloid, Royal, and Synthite. Insoloid quoted as low as $18 per case in Nevada. There is absolutely no selling price maintained on any of the brands handled by the Insoloid Fuse Co.

Importer, Darbyshire & Evans, El Paso, Tex.—Brand imported, Star. Quoted at $16.50 f. o. b. El Paso, Tex.

Importer, Krakauer ?ork & Moye Co. (Suc.).-Brand imported, K. C. M. brand. No regular scale of selling price maintained. Truly yours,

GRANT H. Tod. Further, we are attaching the original card mailed to a customer of ours. These cards, we are informed, have been sent out throughout the coast. The information contained thereon is false and injurious to our trade.

(Post card.)

HURT IN EXPLOSION, SUES FUSE MAKER-MINER DECLARES THE FIRE RAN RAPIDLY

AND SET OFF THE CHARGE TOO SOON.

William J. Abrams, a miner, has filed suit for $50,000 damages in the district court against the Coast Manufacturing & Supply Co., of California, for injuries received through the defection of a fuse manufactured by that company,

In his complaint he says that the sight in both his eyes was destroyed, that he was permanently disfigured by burns on his face and neck, and that he is unable to walk because of a dislocation of his hip caused by the explosion.

He purchased the fuse from the local agent of the company, the California Powder Co. He says the fire in the fuse ran with great rapidity, and before he could get away & premature explosion occurred.

INSOLOID.

Gutta-percha fuse should, at all times, be kept in a moderate temperature, and never used in a frozen condition. If no better place is available, it may be stored in a boiler room, but not close to the boiler, as gutta percha will melt when overheated and injure the fuse.

Insoloid, with the experience of many years, still burns more evenly and with greater certainty than any other fuse on the market.

DENVER, Colo., January 4. Why don't you make fuse of Merit(t)? If the miner gets judgment, it will wipe out nearly a day's profit.

INSOLOID FUSE Co., Denver, Colo. As powder absorbs moisture from the air, an inch should be cut off each end of coil (which is only one-third of 1 per cent) just before using the fuse, to prevent misfiring.

(Post card)

BLIND MAN ASKS DAMAGES.

Rendered sightless by the premature explosion of California-made fuse, W. B. Abrams, employed in Camp Defiance mine, filed suit to-day against the Coast Manufacturing & Supply Co., of California, and the Ensign-Bickford Co., of Simsbury, Conn., for $50,000.-Denver paper.

Moral: Use Insoloid fuse and avoid accidents.

REDUCTION OF DUTIES ON BLASTING CAPS AND SAFETY FURE.

The Insoloid Fuse Co. of this city has just filed a brief with the Committee on Ways and Means, at Washington, asking for a reduction of the present high duties on blasting caps and safety fuse, so that the miners might benefit by the reduced prices which would soon follow the passage of the new tariff bill.-Denver Republican.

PARAGRAPH 437-AMMUNITION.

FIGHTING THE TRUSTS.

Four years ago the Insoloid Fuse Co. diligently attempted to have the outrageous duties on imported blasting caps and safety fuse reduced and placed upon an equitable basis. In the original draft of the Payne bill such provision was duly made, but at the last moment the powder, fuse, and cap trusts influenced Congress to such an extent that the efforts of the Insoloid people were buried beyond resurrection during the Taft régime. This time, however, all the explosive monopolists will receive their death blow, as the manager of the Insoloid Fuse Co. has just been invited to appear before the Committee on Ways and Means, at Washington, to furnish all the necessary data for the proposed reduction.

When the Underwood tariff bill becomes law, embodying the above benefits, it will be in order for all the big consumers to show proper appreciation of the good work done in their behalf by using nothing but Insoloid fuse, which was recently

described by a prominent mine owner as “the best article of its kind that was ever made.”Tomahawk.

All those interested should write to the Committee on Ways and Means, Washington, D. C., urging immediate passage of the above bill.

TARIFF REVISION BUREAU,

Box 8.35, Denver, Colo.

QUALITY

Attention should be called to the fact that quality in safety fuse is very essential, as the lives of all users depend upon it.

There are several brands of foreign-made safety fuse that are of very inferior quality, but nevertheless the prices at which these brands are offered have the effect of compelling the American manufacturer to reduce his prices to meet this competition, even when supplying a far superior article.

It has always been the policy of this company to supply nothing but the best, and never send out a piece of fuse that shows any chance of defect, as we realize the importance to the user of having a good fuse in any condition of work he may be doing.

The American manufacturer also has to stand back of his goods, and in case of any defect (or in the large majority of cases, supposed defects), the goods are returned and replaced. In the case of imported fuse, all responsibility on the part of the manufacturer ceases when the goods leave the factory in Germany or Belgium, and the customer has to stand the loss, or take his own chances on the rest of the shipment.

We should also call your attention to the fact that American manufacturers are working with the United States Bureau of Mines to the end of determining the best and safest methods of using and manufacturing safety fuse. This entails not a little expense both in experimenting and machinery, to which the importer of foreign manufacture does not contribute.

CONCLUSION.

In conclusion, we wish to say that the fuse industry is small compared to almost any other, being confined to but few manufacturers and comparatively few users, but the manufacturers have their money invested in the business and should be placed in a position where they could make an honest manufacturer's profit on their investment, and not be subjected to such ruinous competition as we are now. We also believe that your committee, when they are acquainted with the true facts will take such steps that will place our product under such protection that we can not only get a fair profit on our investment, but a price for our goods that will enable us to produce such a grade that will insure the user that his life is not in danger when he uses safety fuse.

While the business is comparatively small, it is very important to the users and should be cared for in such a manner that the quality can be insured.

A reduction in the duty on this article is liable to force the American manufacturer to sacrifice quality in order to remain in business to the detriment of the consumer, to whom quality ofttimes means life or death.

In submitting these facts and figures to your committee, we are sure that they will be given due consideration, and also ask the question of any and all, whether under such conditions and amount of money invested we are receiving an adequate return, viz, 7% per cent average during the past five years, in a business where explosions are liable to occur at any time and where no insurance can be carried.

PARAGRAPH 437-AMMUNITION. In 1909 we asked for forty-five (45) per cent duty, or $1 per thousand feet on safety fuse of all kinds, and the results of the last three years have shown that the rate asked for was not any too high to protect our industry and enable us to produce goods of the necessary quality: Respectfully submitted.

Coast MANUFACTURING & SUPPLY COMPANY,

A. H. MERRITT, Vice President. BRIEF SUBMITTED BY THE ENSIGN-BICKFORD CO., SIMS.

BURY, CONN.

SAFETY FUSE.

Mining, blasting, or safety fuses of all kinds not composed in chief value of cotton are included in Schedule N, section 437, of the Payne Tariff Act, being dutiable at 35 per cent ad valorem. Practically all the safety fuse which is imported into the United States comes under this section. We know of none which is classed as being composed in chief value of cotton.

In previous acts there was no separate classification for safety fuse, and, consequently, it was classed according to the component article of chief value, either jute, cotton, or gutta-percha, the rate being from 35 to 45 per cent. We wish to enter ourprotest against any reduction of the duty from the present rate of 35 per cent.

Safety fuse is used in mining and blasting, and this is practically its only use. The fuse conveys fire to the charge and consists essentially of a core of gunpowder surrounded by layers of textile and waterproofing materials. It is important that it be well and carefully made, as the lives of miners often depend on it. We have for some time been working with the United States Bureau of Mines with the view of making it as reliable as humanly possible and of prescribing all necessary precaution in its use,

The industry in this country is a small one, because of the comparatively restricted field for its product. The amount of capital employed is approximately $3,000,000, and the number of persons engaged in the manufacture is only about 600. Because of the powder and other inflammable ingredients used, it is a very dangerous occupation. Our buildings are expensive because of the protection necessary for the employees, and no insurance can be carried on portions of the plant. The risk involved increases greatly the overhead expense, and if the volume of business now done should be materially decreased the effect upon the business would be disastrous if not destructive.

Large quantities of safety fuse have been continually imported into the United States from European countries, the totals for the years ending June 30, 1911 and 1912, being somewhat over $100,000 annually, on which the Government collected a duty of more than $35,000 per year. With a lowering of the tariff we have every reason to believe the importation would increase, and American labor employed would be just so much less; in fact, German, Belgian, and Italian fuse manufacturers are only waiting for a lowering of the tariff to flood the United States with their product.

The reason why the American manufacturers need the protection of a duty is that materials and labor are so much cheaper in Europe than here. The four principal materials entering into the manufacture of fuse are jute yarn, cotton yarn, cotton cloth, and powder. Owing to the cheap foreign labor and the duties levied by this country the prices for these articles are considerably higher here than abroad; in fact, all the materials, except gutta-percha, used in the manufacture of fuse in the United States are manufactured in this country from raw materials with American labor.

European fuse makers employ about 20 per cent males and 80 per cent females; American, 65 per cent males and 35 per cent females. The comparison of the wages paid in the United States per day with those paid in England is as follows:

United States. - Males, $1.60 to $2 per day; females, $1.05 to $1.75 per day.
England.-Males, $0.75 to $1 per day; females, $0.24 to $0.37 per day.
Wages in Germany are about the same as in England.

The above is for ordinary labor only. Skilled labor, of which a very considerable at zount is required, we are obliged to pay from $2 to $5 per day. Our hours of labor are a little less than nine hours per day, and we have absolutely no one in our employ

a receiving less than $1.05 for same.

A further reason against reducing the duty is that we get practically no benefit in freight rates from being situated nearer the point of consumption than European manufacturers. The ocean freight rate on fuse is very small indeed, whereas it is rated as first-class freight in this county-1. c. 1. and third-class c. 1. To many points

78959°— VOL 5--13-440

PARAGRAPH 437-AMMUNITION. in this country fuse pays a smaller freight rate from European ports than from New York City.

In view of the above, we beg to urge you to retain the present rate of duty. To lower it will be to injure and perhaps cripple an industry which is important to the country. As above shown, it is a comparatively small one. A reduction of duty might easily go so far as to put American factories out of business.

It would be unwise to put the mines of the United States in a state of necessary dependence on European manufacturers for their fuse.

ENSIGN-BICKFORD Co.,
JOSEPH R. ENSIGN,

Vice President.

BRIEF OF J. FITZ. BRIND, DENVER, COLO.

DENVER, Colo., January 14, 1919. The COMMITTEE ON WAYS AND MEANS,

Washington, D. C. GENTLEMEN: Continuing the subject of my previous letters, I beg to state that the importation of fuse is approximately 5 per cent of the total consumption in this country. With a reduction of duty from 35 to 10 per cent, and the importation increased only fourfold (which is a reasonable estimate on account of the superior quality of the imported article and reduced cost to the consumer), the revenues would be even greater than at present. For instance, the annual revenue now amounts to about $35,000, but under the new law, based upon the above estimate, it would most likely be increased to $40,000.

Paragraph 437 should read: “Percussion caps, blasting caps, etc., 30 per cent ad valorem; mining or blasting fuse of all kinds, 10 per cent ad valorem.

That portion of the paragraph reading “not composed of cotton " should be eliminated, because cotton is exported to Europe from this country, and the increased duty to 45 per cent is wrongfully imposed on an American product.

No blasting caps are now imported because of the prohibitive duty, but if reduced to 30 per cent (same as sporting caps)) the revenue would be considerably increased.

Some years ago a dealer had the temerity to import a lot of caps, but immediately upon arrival the trust reduced the price of the domestic article to such an extent that the importer was compelled to sell at a loss in order to get rid of them, all of which goes to prove that even at the lower price the cap monopoly managed to keep the proverbial wolf from the door.

The dutiable or market value of all grades of fuse should be precisely that of actual cost (as verified by United States consuls), and in that way avoid the useless annoyance and expense to the importer for reappraisement, because it is a fact that all such cases have heretofore been decided by the United States General Appraisers in favor of the importer and against the Government.

Additional duty, such as penalty on appraisers' advances, should be refunded if importers' values are finally sustained. Very respectfully,

J. Fitz. BRIND.

BLIND MAN ASKS DAMAGES.

Rendered sightless by the premature explosion of a patent fuse, William B. Abrams, 43, a miner employed in the Camp Defiance mine in Garfield County, filed suit to-day in the district court against the Coast Manufacturing & Supply Co. and Ensign Bickford & Co. for $50,000. These companies are represented in Denver by the California Powder Co.

To build fuse works, Vice President and General Manager A. H. Merritt, of the Cast Manufacturing & Supply Co., of Oakland, stated while in Livermore last week that building operations would be begun on their fuse works in that town about March 1, and that the plant would be running full blast by midsummer. There will be 29 buildings erected on their recently purchased property, and the total floor space in them will be between 4 and 5 acres. Most of these buildings will be small, but others will be 250 feet long. They will be built of corrugated iron, with hollow tile brick for fire walls. In addition to the factory buildings and an office building, there will be residences erected for General Manager Merritt, Assistant Manager T. W. Mor

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