EXHIBIT J. Comparison of cost of producing grease-proof paper in Germany, Sweden, and Taking the unit of American labor cost as 100 per cent, the German and Swedish labor cost is 41.7 per cent. Taking the unit of American cost for raw material (sulphite fiber) as 100 per cent, the cost of the German and Swedish raw material is 62 per cent. Taking the total cost of American product as 100 per cent, the total cost of the German and Swedish product is 65 per cent. EXHIBIT K. Prices of glassine papers, f. o. b. Antwerp, reduced to American standard. Prices of grease-proof parchment f. o. b. Antwerp or Gottenburg, reduced to American standard. The above statements of cost were given by reliable importers from actual purchases made from various mills in Germany and Sweden, and fairly represent the range of prices during those years. Reduction in the German and Swedish prices on grease-proof and glassine papers since 1905, in which year the Hartford City Paper Company began manufacturing these papers in the United States. Price per pound f. o. b. Antwerp of white glassine in 1905, 5.5 cents; in 1908, 5 cents. Reduction since 1905, $10 per ton. Price per pound f. o. b. Antwerp of natural glassine in 1905, 4.1 cents; in 1908, 3.83 cents. Reduction since 1905, $6 per ton. Price per pound f. o. b. Antwerp of colored glassine, in 1905, 5.9 cents; in 1908, 5.5 cents. Reduction since 1905, $8 per ton. Price per pound f. o. b. Gottenborg of No. 1 grease-proof, in 1905, 4.8 cents; in 1908, 4.23 cents. Reduction since 1905, $11.40 per ton. Costs of imported glassine paper compared to cost of producing same in the Hartford City Paper Company's mill, Hartford City, Ind. White glassine of German manufacture costs the importer now $100 per ton f. o. b. Antwerp. Same grade of paper costs Hartford City Paper Company to manufacture $145.16. No. 1 grease proof, of Swedish manufacture, costs the importer now $84.60 per ton f. o. b. Gottenborg. Same grade of paper costs the Hartford City Paper Company to manufacture $110.97. Comparative statement of f. o. b. cost, duty paid, under present valuation of white glassine paper, at Antwerp and at Hartford City mill, Hartford City, Ind.: Comparative statement of f. o. b. cost, duty paid, under present valuation of grease-proof paper, manufactured at Gottenborg, Sweden, and at Hartford City, Ind.: Imported. Domestic. Selling price per ton, f. o. b. Gottenborg.. $81.60 Duty, 25 per cent ad valorem. 21.15 Freight, Gottenborg to Atlantic seaports, 20 cents per 100 pounds. 4.00 1.68 $110.97 Freight, Hartford City to New York, L. C. L... 9.00 Total cost in New York under present classification... 111.43 119.97 The above comparison is made on the highest grades of imported papers with the same grades of domestic papers. On lower grades of paper the difference in cost delivered in New York is still greater in favor of the imported papers. THE PATERSON PARCHMENT PAPER CO., PASSAIC, N. J., THINKS THAT PRESENT RATES SHOULD BE RETAINED ON VEGETABLE PARCHMENT PAPER. Hon. SERENO E. PAYNE, PASSAIC, N. J., December 2, 1908. Chairman of the Ways and Means Committee, DEAR SIR: In view of the hearings on tariff revision now being held by your committee, we beg to respectfully submit the following: First. The merchandise we produce is parchment paper, which is manufactured from an unsized paper made from cotton rags, and treated with sulphuric acid or other suitable reagent. Two processes are involved-making the unsized paper from cotton rags and parchmentizing with sulphuric acid. (Sample of each is attached hereto.) Second. The paragraph of the present tariff act we are interested in is Schedule M, paragraph 398: 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. Third. We respectfully petition that no reduction be made in the rate of duty now levied, but rather that it be increased; and that should a minimum and maximum rate be adopted, it would be necessary for the protection of our industry to have the present rate (2 cents per pound and 10 per cent ad valorem) a minimum rate. A higher rate of protection would be absolutely necessary should wages decrease in Germany at any time. Fourth. Our reasons for asking that no reduction be made are that with lower tariff the foreign manufacturers will be able to compete with us in this market to such an extent as to seriously injure our business. The manufacturers in Germany are more numerous than they are in this country, produce a greater quantity, and have frequently within the past years made a practice of exporting to this country parchment paper at prices far below the price at which parchment paper is sold in our own markets. (In reference to this, see translation of letter in Papier Zeitung, attached hereto. The Papier Zeitung is published by Carl Hoffman, of Berlin, Germany.) Herein lies the principal danger to our industry; therefore any lowering of the duty would surely result in increased importations. It is possible to produce this paper much more cheaply in Germany, Belgium, and France than in this country, and protection to more than offset wages and other costs should be granted, for the reason that foreigners could otherwise sell at a sacrifice and make it impossible for American manufacturers to compete. It appears also that the German manufacturers of parchment paper have an association which controls prices in Germany, which enables the manufacturers the better to export at cost price or less, as they are released from ruinous competition at home. (See printed circular attached.) The cost of labor enters very largely into our paper, for the reason that the paper goes through two processes before it is finished. In the first it is manufactured into an unsized paper from cotton rags, dried and put up into rolls; from the paper mill it is sent to the parchment mill, where the paper undergoes its treatment in sulphuric acid, thoroughly washed in water, dried again and finished, and either sold in plain sheets or printed sheets. So that it is readily seen that a very large part of the cost is labor, hence the necessity of our receiving full protection. The industry in this country has been slowly advancing in the face of domestic and foreign competition. The Paterson Parchment Paper Company, of Passaic, N. J., was the first concern to successfully manufacture and sell parchment paper in this country, in 1885, and since then eighteen competitors have come into the market, of whom two survive, the others having been driven out mainly by the foreign competition; so that to-day the manufacturers of this paper are: The Paterson Parchment Paper Company, Passaic, N. J. The West Carrollton Parchment Paper Company, West Carrollton, Ohio. The Glenn Mills Paper Company, Philadelphia, Pa. The competition among these three concerns is brisk, so that there is no danger to the community at large of being compelled to pay more for the paper than it is worth. In this connection we wish to call your attention to the fact that when in 1885 The Paterson Parchment Paper Company first entered the market, the wholesale price of parchment paper was 27 cents per pound, which price has gradually been reduced by competition, as related above, until to-day the selling price wholesale is 8.64 cents per pound, f. o. b. mill. The labor cost is more apt to advance in the manufacture of paper for the reason that the labor unions are advocating three tours of work in the paper mills and, in a great many cases, have succeeded in obtaining this concession. So far as this has been tried out it has resulted in increased labor cost and, should the manufacturers of parchment paper be compelled to follow the lead of others, it will readily be seen that the cost of production will increase and that increased protection would be necessary. Since the present tariff bill was passed the increase in wages has been, in the paper mill, 50 per cent, and in the parchment mill, 25 per cent. Other expenses have increased, also, notably lumber, building materials, wrapping paper, twine, fuel, etc. It should be borne in mind also that the waste in manufacturing parchment paper can not be used again as paper, and is a loss which adds to the expense of manufacture. Under the present bill the industry has more than doubled, so that now $1,630,000 are invested in it and about 560 people find employment, receiving $293,000 in wages annually. This industry is still capable of considerable expansion, as parchment paper is not as universally used in this country as it is in Europe, provided adequate protection is granted to it. We wish to call particular attention to the fact that the paper we manufacture is known in the trade as "Vegetable parchment paper," and it would perhaps be better to so describe it in the bill, even though the words "parchment paper," as contained in the present bill, have been construed to mean paper produced by our process. There are other papers, especially writing papers, which are known as parchment and which are produced on the paper machine, requiring but one process, and they should be distinguished from vegetable parchment paper. We would also point out the fact that so-called imitation parchment, glassine, parchmine, etc., are not in the same class as vegetable parchment paper, for the reason that they also are made directly on the paper machine in one continuous process and are not as valuable, mainly for the reason that only one-half of the labor is expended on them. We are of the opinion that it would be confusing to put imitations of parchment paper in the same clause as genuine parchment paper in the tariff bill, but should be covered by a separate clause. We therefore earnestly petition your honorable body that they do not recommend a lower rate of tariff, and thus destroy whatever prosperity we have been enjoying for the past ten years. The West Carrollton Parchment Paper Company and The Glen Mills Paper Company desired us to present this brief; and should therefore be considered as approving it. Respectfully submitted. THE PATERSON PARCHMENT PAPER CO. THE HARTFORD CITY (IND.) PAPER CO. FILES SUPPLEMENTAL BRIEF RELATIVE TO SULPHITE PARCHMENT. Hon. SERENO E. PAYNE, HARTFORD CITY, IND., December 7, 1908. Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: At the time of our hearing on Schedule M-November 21-I made the statement to the committee that parchment paper was often made from sulphite fiber alone, and that it was sometimes made of a combination of cotton fiber and sulphite fiber. Sulphite fiber, as you doubtless know, is a wood product. Mr. Elliott, who appeared before your committee on the same date in behalf of the importers and in opposition of our contention, made the statement that parchment paper (which he designated as "vegetable parchment") was made from cotton fiber, and held out the idea that it could not be made from wood fiber and that it was therefore a much more expensive paper to make than our paper. I beg to call your attention to the inclosed copy of a letter which I wrote to Mr. Harry Zimmerman, who for several years was employed by the Friend Paper Company, of West Carrollton, Ohio, and had charge of their parchment department; also call your attention to a copy of a reply which I received from him under date of December 4 and attached samples of parchment paper which he says, are made. from sulphite fiber alone. Also you will note his statement that he can easily manufacture it from the sulphite fiber. I am very sorry to take up so much of your time on this question, but it is vital to us. Our mill is now down for want of orders, and we can not meet the competition from the importers in the East, and of |