PARAGRAPH 312-MINERAL WATER. BRIEF OF MORRIS & SCHRADER, NEW YORK, N. Y. The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. NEW YORK, January 2, 1913. GENTLEMEN: When considering Schedule H, spirits, wines, and other beverages, we desire to particularly call your attention to paragraph No. 312 relating to mineral waters, and beg to submit the following: For many years mineral waters were not used to any extent in the United States; hence there was no duty collected upon imports into this country until 1879. From 1879 until 1890 there was no duty on the water, but a duty of 30 per cent collected upon the glass bottles. (Exhibit A, paragraph 1.) 1890 (McKinley Act). No duty on the water, but a duty of 1 cent per pound on quart bottles and 14 cents per pound on pint bottles. (Exhibit A, paragraph 2.) 1894 (Wilson Act). No duty on the water, but a duty of three-fourths cent per pound on quart bottles and 1 cents per pound on pint bottles. (Exhibit A, paragraph 3.) 1897 (Dingley Act). Duty was collected upon the water and glassware collectively at the rate of 30 cents per dozen bottles if not over a quart, and 20 cents per dozen bottles if not over a pint. (Exhibit A, paragraph 4.) 1899 (Payne Act). Duty is collected upon the water and bottles, same as in the 1897 (Dingley Act) tariff, and in addition thereto duty is collected upon the bottles again at one-third of the rate as if imported empty (paragraph 97, Payne Act, bottles 1 cent per pound quarts, and 11⁄2 cents per pound pints.) (Exhibit A, paragraph 5.) EXHIBIT A. [Based on the usual trade package of 50 quart bottles in a case, and 100 pint bottles in a case.] As indicated by paragraphs 1, 2, and 3 referred to above, until 1897 mineral waters were admitted free, but a duty was collected upon the bottles only. In 1897 (Dingley Act) the duty was changed from a rate on the bottles to a specific duty on contents, including bottles, making an increase of 663 per cent on a case of 50 quart bottles, and only 103 per cent on a case of 100 pint bottles as compared with the 1897 (McKinley Act) tariff. The injustice of section No. 312 of the present tariff lies in the fact that mineral water imported in quarts, duty is assessed at the rate of $1.25 per case of 50 bottles, which is equivalent to 10 cents per gallon on the water, plus 25 cents on the bottles, while, if the same quantity of water is imported in pint bottles, duty is assessed at $1.66 per case of 100 bottles, which is equivalent to 13 cents per gallon, plus 55 cents on the bottles. Your attention is also called to the fact that ginger ale, ginger beer, lemonade, soda water, and other similar beverages containing no alcohol, articles that are artificial products and undergo a process of manufacture in every particular, if imported in bottles containing not over 14 pints, pay only 28 cents per dozen, and no separate duty is assessed on the bottles. In consideration of the fact that medicinal mineral waters are of great therapeutic value, and as natural products of the earth are prescribed by the medical profession for their peculiar inherent virtues, they should not be classed as a luxury, but as a necessity and should be considered as natural medicinal products. The 1897 (Dingley Act) tariff of 30 cents per dozen bottles if not over a quart and 20 cents per dozen bottles if not over a pint more than covers the difference in cost and a good profit to the bottlers of mineral waters in the United States, and no domestic PARAGRAPH 312-MINERAL WATER. mineral water interests would be affected if such part of paragraph No. 312 should be changed by inserting "but no separate duty shall be assessed upon the bottles." By referring to the hearings of the Ways and Means Committee preliminary to the introduction of the Payne Bill it will be seen that the only request for an advance in the duty on mineral waters before a committee that was supposed to reduce the tariff, was from interests identified with the National Water Co., a corporation capitalized at $10,000,000 who expected by legislation to secure a further sale for their products, a simple table water composed of pure water, salts, and carbonic gas, same as can be produced by any bottler in the United States at a maximum cost of $2.75 per case of 50 quart bottles. It will also be seen by referring to the Senate bill as returned by the Committee of Finance that no change was made in the paragraph relating to mineral waters, and that paragraph No. 312 as now constituted was simply a compromise between the conferees of the House and Senate. We would respectfully ask your consideration of the above data and ask that the only change be made in paragraph No. 312 would be the removal of the additional duty on bottles, so that paragraph No. 312 shall read as follows: All mineral waters and all imitations of natural mineral waters, and all artificial mineral waters not specially provided for in this section, in bottles or jugs containing not more than one pint, twenty cents per dozen bottles; if containing more than pint and not more than one quart, thirty cents per dozen bottles, but no separate duty shall be collected upon the bottles; if imported in bottles or jugs containing more than one quart, twenty-four cents per gallon; if imported otherwise than in bottles or jugs, eight cents per gallon; and in addition thereto duty shall be collected upon the bottles or other containers at one-third of the rates that would be charged thereon if imported empty or separately. Respectfully submitted. MORRIS & SCHRADER, President. BRIEF OF HABICHT, BRAUN & CO., NEW YORK, N. Y. The WAYS AND MEANS COMMITTEE. NEW YORK, January 11, 1913. House of Representatives, Washington, D. C. GENTLEMEN: When taking up for consideration Schedule H-spirits, wines, and other beverages-permit us to particularly direct your attention to paragraph 312, relating to mineral waters, in connection with which we respectfully submit that we are the importers of natural medicinal mineral waters, prescribed by the medical profession purely as medicinal waters-not as a luxury, but on the advice and recommendation of physicians for certain therapeutic virtues they possess. Under the Dingley Act the duty was assessed on the water and bottles collectively at the rate of 30 cents per dozen bottles if not over one quart capacity, and 20 cents per dozen if containing not over 1 pint. Duty is now collected upon the water and the bottles, as under the 1897 tariff, and, in addition to this, a duty is also assessed upon the bottles at one-third the rate as if imported empty-1 cent per pound for quarts and 14 cents per pound for pints. Considering the duty paid prior to 1897, we submit that the rate under the Dingley Act of 30 cents per dozen bottles if not over 1 quart and 20 cents per dozen bottles if not over 1 pint is ample for the importation of a natural mineral water; that the additional duty on the bottles themselves is unjust, and that the bottlers of mineral waters in the United States will be reasonably and adequately protected by the removal of the duty collected separately upon the bottles. We also call your attention to the fact that ginger beer, ginger ale, soda water, lemonade, and other similar beverages containing no alcohol (purely artificial and manufactured products) if imported in bottles containing not more than 1 pints pay a duty of only 28 cents per dozen, with no extra duty for the bottles. We, therefore, respectfully ask your consideration and favorable action, looking to a change in paragraph 312, which shall stipulate that no separate duty shall be collected upon the bottles in addition to that of 30 cents per dozen for quarts and 20 cents per dozen for pints. Respectfully submitted. This concluded the hearings on Schedule H. [E-VOL 3] HABICHT, BRAUN & Co. |