In the above tabulation the lower price of American bleached and unbleached fiber is largely accounted for by the fact that these are the average prices of all sales of fiber, including both No. 1 and No. 2 grades, and with sales of the best grades considered separately would show a price practically equal to the selling prices of the foreign product.

STATEMENT OF MORRIS GINTZLER, NEW YORK CITY, RELATIVE TO CHEMICAL PULP, BLEACHED AND UNBLEACHED.

SATURDAY, November 21, 1908.

The CHAIRMAN. On what subject are you about to address us? Mr. GINTZLER. On the subject of the duty on chemical pulp, bleached and unbleached.

The CHAIRMAN. On what?

Mr. GINTZLER. On the subject of wood pulp made by chemical process.

The CHAIRMAN. Proceed.

Mr. GINTZLER. I represent the importers of New York, who have been asked by the manufacturers of this country, who have no pulp mills of their own and who are dependent on the foreign supply, to place before you some particulars to induce you in the revision of this tariff to make no change in this schedule. There have been stated at considerable length the discrepancies in labor as between this country and abroad; but it appears that all the speakers have overlooked the fact that the American workman is the most efficient laborer of his kind the world over; and while it is true that American workmen will get more per day, it is also true that to turn out the same quantity of pulp it is not necessary to have as many men in this country as it is abroad. The present duty is $3.33 per ton on unbleached pulp and $5 per ton on bleached pulp. These duties, with the present discrimination against the foreign manufacturer to the extent of being subjected to charges from which the American manufacturer is entirely exempt, such as packing for export, the inland freight on the other side to bring the pulp to the seaboard, the ocean freight to bring the pulp to this country, and the import merchant's profits here, are all items entering into the cost, from which the American manufacturer is entirely exempt.

I presume it is not the intention of this committee to advance the tariff on this schedule. At the same time the trade has accommodated itself to the present rate of tariff, and at the present time it brings a certain amount of revenue to the Government, which the paper manufacturers are quite ready and willing and able to stand.

The committee must remember that every ton of pulp which is brought over from the other side means just so much of our own wood saved, and there is no need of going at any great length into the subject of the importance of the preservation of our forests.

One point I wish to bring out clearly is that for the past twelve years there has been no chemical pulp mill in this country that has failed, but each and every mill has been able to keep up and to make

money.

The imports do not amount to more than 10 per cent of the total production of this product, and I maintain that the American manufacturer who is dependent on the general open market is entitled to seek his supply on such a basis. I will file with my brief here letters from different manufacturers-about 100 of the leading paper manufacturers of this country-asking you to make no change in the present tariff on chemical wood pulps. These mills employ many hands at remunerative wages, and it is a question of compelling these mills to reduce wages and possibly to shut down their plants and possibly to import the finished paper. We must bear in mind that chemical pulp is raw material and not a finished product, and as such should not be subjected to any further duty. I thank you.

The brief and letters submitted by Mr. Gintzler are as follows:

MORRIS GINTZLER, NEW YORK CITY, FILES BRIEF AND LETTERS IN FAVOR OF RETAINING PRESENT DUTIES ON PULP.

WASHINGTON, D. C., November 21, 1908. COMMITTEE ON WAYS AND MEANS,

Washington, D. C.

GENTLEMEN: The present tariff on chemical pulps should not be altered for reasons given herein.

Chemical pulps, as distinguished from mechanical or ground wood pulp, which latter is not imported from Europe, constitute the principal raw material of a great many grades of paper manufactured in this country. An additional duty on such raw material adds to the burden of the manufacturing interests of this country.

Under normal conditions there are only about 18 pulp mills of the 78 mills in the United States which can supply sulphite pulp to the paper mills. The other pulp mills manufacture only for use in their own paper mills and not for sale.

Foreign pulps do not compete to a sufficient extent with the American pulps to have their importation prohibited by any high restrictive tariff.

In this brief, where the term "tons" is used, it will be understood to mean a ton of 2,000 pounds.

WAGES.

The cost of general labor in this country for producing one ton of unbleached sulphite pulp is about $4. To this must be added the cost of repair labor, $2 per ton, which brings the total cost, including repair labor, to $6 per ton.

61318 SCHED M-09-10

This information is based on actual figures from a mill making 50 tons per day of unbleached sulphite pulp. It is considered that 75 tons is the correct unit for economical production, and the cost of labor per ton for a mill making 25 or 30 tons per day is larger than that for a mill making 75 tons daily.

The individual wages paid abroad are less than those paid in this country. At the same time, however, this difference is largely counterbalanced by the greater efficiency of the American workman. In Europe more time is devoted to the careful preparation of the wood, a longer time is used in its cooking, all adding to the cost of labor, resulting in a smaller product to the amount of labor as compared to the United States. The result is that the cost of labor per ton of pulp abroad is no less than that in this country.

The actual figures for the cost of labor per ton of pulp in Europe is from $5 to $9.75, according to quality of product and prevailing wages of the countries where mills are situated.

WOOD.

The average cost of unbarked pulp wood in this country is about $8.50 per cord of 128 cubic feet, and it requires about 2 cords of unbarked or about 1.7 cords of rossed wood for a ton of sulphite pulp, thus making the average cost of wood per ton of pulp $17. Several mills in this country manufacture pulp from slabs obtained from sawmills, which still further reduces the cost. A number of mills in this country still enjoy the benefit of their own woodlands acquired many years ago, and the price of this wood is quite a factor in forming a basis of price for the domestic pulp.

In Europe the cost of wood averages $9 per cord, making the average cost of pulp wood for a ton of pulp at the pulp mill $18.

The pulp here referred to is known as "quick-cooked unbleached sulphite pulp." The cost of pulp when manufactured by the slowcooked or "Mitscherlich" process is largely increased owing to the necessarily longer time used in cooking, and other expenses incidental

thereto.

SELLING CONDITIONS.

Before the foreign pulp becomes competitive with the domestic there must be added to it sundry costs and expenses from most of which the American pulp mill is exempt. These charges for the foreign pulp mill may be figured as follows:

which is the protection afforded to-day to the American pulp manufacturer. This should be sufficient for the American manufacturer of pulp and enable him to market independently of the foreign article. The selling price of domestic quick-cooked pulp to-day averages $42, freight paid to the paper mill,

The average selling price for foreign pulp to-day ranges from $39 to $42 at the port of arrival, and to this must be added an average freight to the paper mill of $3 per ton, making a total of $42 to $45, freight paid to the paper mill. This is for prompt deliveries, and for future deliveries higher prices are asked.

The prices ruling to-day are not normal on account of the recent business depression and the larger stocks in the hands of foreign pulp speculators.

We quote from Farmand, the leading paper trade journal in Norway, from the issue of October 24, 1908, as follows:

The market for cellulose is so bad that it must soon bring about a curtailment of production, the more so as log prices are rather advancing than otherwise, at least in this country, and although a reduced output, of course, means an enhanced cost of production, it will not be very difficult for the managers to find out which is the smaller loss: To go down in quantity or to accept the prices which are nowadays put before them by their agents.

But nothing can better demonstrate the correctness of what we have frequently stated in these columns, that the growing demand for wood for so many various purposes has an irresistible tendency to raise the level of value of the raw wood.

The prices which ruled prior to October, 1907, averaged for the domestic pulp from $42 to $46, delivered at the paper mill, and for foreign pulp from $46 to $53.

Importers are to-day delivering old contracts at these figures.

Another reason for the depression of prices, in addition to the recent dullness prevailing in business, is that domestic pulp was advanced to such a figure as made it possible to bring over larger quantities of foreign pulp.

The advance in prices of domestic pulp was caused by the large demand prevailing at that time.

In October of last year orders for paper diminished considerably, so that the paper mills could only run part time, and, in fact, several of them had to shut down for shorter or longer periods; and it may be safely stated that the average consumption of pulp by the paper mills during the past year has not been more than 60 per cent of the normal consumption. The shutting down of the paper mills naturally reduced to a great extent the demand for domestic pulp, and large quantities of foreign pulp contracted during previous times, when higher prices were ruling, came into this country. In some cases these pulps could be disposed of by the importers only at a loss.

Prior to the financial depression before referred to the domestic pulp had always been sold at about 10 to 15 per cent cheaper delivered at the paper mill than the foreign pulp. In corroboration of this, we give herewith quotations of both foreign and domestic un bleached pulps, published by the two leading trade journals of the paper and pulp industries that is, the Paper Trade Journal and The Paper Mill, both published in New York City. These quota-, tions for some years past, taken at random, are as follows: