London at 63 shillings=M. 6.60, 5 per cent commission and 2 per cent discount? Weight of paper to be 48 to 50 grams per square meter (equivalent to 18 pounds to the ream of 500 sheets, 20 by 24 inches). 6 65 4 50 Packing in 3 (bales). 50 wrapping sheets, 5 kg., at 27 pf. 1 Cartage to railroad depot, 525 kg., at 30 pf_ 1 Freight to London, 525 kg., at 4 m. 20 pf_ 22 5 per cent commission, 2 per cent discount=7 per cent of selling price; 50 by 6 m. 60 pf.=330 m.. 23 10 For superintendence, figured for a capacity of 10 coating machines, at 50 reams_. 20 Selling expense (no allowance for losses) 10 311 35 Fifty reams glazed paper 51 by 76 cm. cost to manufacture 311 m. 35 pf., and sells for 330 m. Expressing the above figures in terms of reams 20 by 24 inches, and calculating a mark at 24 cents, we have— Fifty reams 51 by 76 cm. equal 62.5 reams 20 by 24 inches. Sixty-two and one-half reams 20 by 24 inches cost 311 m. 35 pf., or $74.72. One ream 20 by 24 inches costs $1.19 delivered in London. The margin between cost, 311 m. 35 pf., and selling prices, 330 m., or 18 m. 65 pf., is no profit for the excessively low figuring of the various items, the unavoidable repairs to machinery and plant, loss of interest on long credits. Accidents and many other expenses are not taken into consideration. This German product, laid down in London at an average cost of $1.19 a ream to manufacture in Germany, can be laid down in the United States, duty paid, for $1.81 cost, and sold for $2 a ream, against the cost of producing the same article in this country for $2.25. The manufacturer has been compelled to throw into competition against the imported glazed or flinted paper an imitation known in the trade as "friction finish" papers. This paper is manufactured at an average cost of $1.90 a ream. The cost of an imitation flinted paper of American manufacture is greater than the price at which the foreign flinted paper is entered into our markets, all duties paid. The foreign manufacturers do not send an imitation flinted paper to this country. The American manufacturers find marked differences in the cost of manufacture dependent on the color of the finished product, and have classified the various costs into five different groups accordingly, as follows: Taking Group A as a unit of cost, or 100 per cent, the relation of cost and selling price is: A. Surface-coated paper, white, unit of cost, 100 per cent; selling price, $2.10. B. Surface-coated paper, tints, approximate unit of cost, 110 per cent; selling price, $2.25. C. Surface-coated paper, red and green, approximate unit of cost, 120 per cent; selling price, $2.50. D. Surface-coated paper, dark shades, approximate unit of cost, 125 per cent; selling price, $2.60. E. Surface-coated paper, copper and metal finish, unit of cost, 150 per cent; selling price, $3.25. Samples attached hereto show examples of these groups. The foreign product entering the United States is valued, in applying the ad valorem duty, without regard to shade, except as to Class E, and sells in the home market, against these domestic prices, for $1.90 to $2 a ream for all shades. In the face of these facts and figures, it is the combined recommendation of the manufacturers of surface-coated paper in the United States that paragraph 398 of Schedule M should be amended as fol lows: Paragraph 398-Surface-coated papers. Amend paragraph 398 by striking out after the word "act" the words "two and one-half cents per pound and fifteen per centum ad valorem" and insert the words "six cents per pound" (as a minimum duty). Strike out after the word "flock" the words "three cents per pound" and insert the words "six cents per pound" (as a minmum duty). The amended paragraph will then read as follows: "Surface-coated papers not specially provided for in this act, six cents per pound; if printed, or wholly or partly covered with metal 61318-SCHED M-09-15 or its solutions, or with gelatine or flock, six cents per pound and twenty per centum ad valorem; parchment papers, two cents per pound and ten per centum ad valorem; plain basic photographic papers for albumenizing, sensitizing, or baryta coating, three cents per pound and ten per centum ad valorem; albumenized or sensitized paper or papers otherwise surface coated for photographic purposes, thirty per centum ad valorem." Respectfully submitted. Table of comparative wages paid in Germany and the United States in the surface-coated paper industry. HON. G. E. WALDO, M. C., SUBMITS LETTER OF DOMESTIC PAPER CO., NEW YORK CITY, ASKING FOR AN INCREASE OF DUTY ON AGATE AND MARBLE PAPER. Hon. SERENO E. PAYNE, M. C.. 290 BROADWAY, NEW YORK, Chairman Committee on Ways and Means, November 23, 1908. Washington, D. C. MY DEAR SIR: Herewith you will find inclosed a communication from Mr. J. W. Newberry, president of the Domestic Paper Company, of 115-117 Nassau street, New York City. Mr. Newberry is a resident of my district. Mr. Newberry and his company desire that the duty on marble and agate paper, under the present law 2 cents per pound and 15 cents ad valorem, be increased to 5 cents per pound and 30 cents ad valorem. If this is done, Mr. Newberry is confident that a large business in the manufacture of this kind of paper will be built up in this country, and his company alone is ready to invest a considerable amount of capital if this increase in the tariff is made. Yours, very truly, G. E. WALDO. 115-117 NASSAU STREET, New York, November 18, 1908. Hon. COMMITTEE OF WAYS AND MEANS, House of Representatives, Washington, D. C. GENTLEMEN: Marble and agate paper samples attached are at present subject to a duty of 2 cents per pound and 15 cents ad valorem, and are classified under the head of coated papers, which includes all surface-coated papers. Not a single pound or sheet of marble or agate paper is manufactured in the United States, but is principally manufactured in Germany and Belgium, several thousand men being employed in this class of work. The wages in Belgium average 90 cents per day of thirteen hours. There are a few men employed in the United States marbling the edges of books; their wage is $2.50 to $3.50 a day of eight hours. The average product of one man making marble and agate paper is one-half ream per day, so that the cost of labor in Belgium in producing one ream of such paper is $1.80. The weight of such paper mostly used in the United States is 20 pounds to the ream. It retails in the United States at $3.75 per ream. To compete with foreign labor workmen in the United States could not be paid over $1 a day. This is the reason why there are no manufacturers of marble or agate paper in the United States. If the duty on such paper were raised to 5 cents per pound and 30 cents ad valorem, a large industry in this line would be generated and employment given to hundreds to men at fair living wages, not to speak of the products used in producing such paper being purchased at home. The increase of duty asked is only just and fair to the workmen of this country, and would only put them on an equality with the cheaper labor of Europe, and would give employment to a large number of young men who would become adept in manufacturing such paper. In the event of the duty being raised as requested, this company is prepared to invest considerable capital in the manufacture of the same in this country. The above is respectfully submitted to your honorable committee for consideration. Very truly, yours, J. W. NEWBERRY, President Domestic Paper Co. PHOTOGRAPHIC PAPER. [Paragraph 398.] STATEMENT OF NELSON CURTIS, OF 2304 WASHINGTON STREET, BOSTON, RELATIVE TO BASIC PHOTOGRAPHIC PAPERS. SATURDAY, November 21, 1908. Mr. CURTIS. The lines which affect our industry are in Schedule M, paragraph 398, commencing with the words "Plain basic photographic paper, for albumenizing, sensitizing, or baryta coating, 3 cents per pound and 10 per cent ad valorem. To make it short, we ask that that be amended so as to read as follows: Plain basic papers, for albumenizing, blueprinting, and black printing, baryta coating, or other sensitizing, photochemical, or photomechanical processes, 3 cents per pound and 20 per centum ad valorem; albumenized, baryta-coated, or sensitized paper, or paper otherwise surface coated for photographic purposes, 30 per cent ad valorem. The CHAIRMAN. How much does that change the duty from the present schedule? Mr. CURTIS. Ten per cent ad valorem. The CHAIRMAN. It increases it 10 per cent ad valorem? The following paper was here filed with the committee: House of Representatives: Respectfully represents your petitioner that the duty on plain basic paper for photographic purposes is now fixed by the Dingley tariff bill in Schedule M, paragraph 398, and reads as follows: "Surface-coated papers not specially provided for in this act, two and one-half cents per pound and fifteen per centum ad valorem; if printed, or wholly or partly covered with metal or its solutions, or with gelatin or flock, three cents per pound and twenty per centum ad valorem; parchment papers, two cents per pound and ten per centum ad valorem; plain basic photographic papers for albumenizing, sensitizing, or baryta coating, three cents per pound and ten per centum ad valorem; albumenized or sensitized paper or paper otherwise surface coated for photographic purposes, thirty per centum ad valorem." That the rate of 3 cents per pound and 10 per centum ad valorem is not sufficient on plain basic photographic papers to protect your petitioner, the only recognized producer of high-grade plain paper for photographic purposes in the United States. Wherefore your petitioner prays that said schedule be amended by changing the word "ten" to "twenty" in the thirteenth line of above schedule, paragraph 398, in order to return us to the rate given under the McKinley bill. Your petitioner further requests that the last clause beginning with the words "plain basic," etc., in line 11 of above paragraph 398, be changed so that it will read "plain basic papers for albumenizing, blueprinting and black printing, baryta coating, or other sensitizing, photo-chemical or photo-mechanical processes," so that Schedule M, paragraph 398, will read as follows: "Surface-coated papers not specially provided for in this act, two and onehalf cents per pound and fifteen per centum ad valorem; if printed, or wholly or partly covered with metal or its solutions, or with gelatin or flock, three cents per pound and twenty per centum ad valorem; parchment papers, two cents per pound and ten per centum ad valorem; [plain basic papers for albumenizing, blueprinting and blackprinting, baryta coating, or other sensitizing. photo-chemical or photo-mechanical processes, three cents per pound and twenty per centum ad valorem;] albumenized, baryta-coated, or sensitized paper, or paper otherwise surface coated for photographic purposes, thirty per centum ad valorem." The reason for asking change of wording is to more properly classify papers which are now being imported, we think, under other classifications. THE AMERICAN PHOTOGRAPHIC PAPER COMPANY, By NELSON CURTIS, Treasurer. Office, No. 2304 Washington street, Boston, Mass. |