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MEMORIAL OF THE ITALIAN CHAMBER OF COMMERCE, NEW YORK CITY.

Hon. O. W. UNDERWOOD,

Chairman of the Committee on Ways and Means, Washington, D. C. HONORABLE SIR: The Italian Chamber of Commerce in New York, an organization representing the commercial interests of a community of over 600,000 consumers and dealers in this city, and of a still greater number distributed in various States in the Union reached through this market, desire to submit to this honorable committee the following recommendations concerning the revisions of Schedule A of the tariff act of August 5, 1909, now under consideration.

To make its position clear as to the interests it represents, this organization states at the outset that while it was established for the promotion of reciprocal trade relations between Italy and this country, where its members have made their permanent home, the scope of the interests it represents is not confined to imported articles, but extends, by reason of the correlated necessities of trade, to a wider field, including many commodities of domestic productions which enter their business.

This chamber is an exponent of commercial interests with which Italo-American communities living in this country have been identified, irrespective of the origin of the articles exchanged, as well as of the consumers whose needs they supply.

The unbiased character of the motives by which it is moved to submit recommendations respecting the revision of the tariff thus appears manifest.

In recommending the changes in the rates of duties herein explained this chamber has not been unmindful of the many issues implied in tariff legislation, of which some of the most important are: The necessity of raising revenue; the offsetting of the difference in the cost of production of an article between this and foreign countries; the relieving, as much as possible, from taxation of articles necessary to the livelihood and comfort of the people; the lightening of fiscal burdens on raw materials necessary to American industries; the interests of the ultimate consumers in the case of products of industry necessary to manufacturers of other products; and is aware of the difficult task of reconciling these various and often contrasting issues so that a tariff may result of which, rather than the fiscal side, its function in relation to the economic life of the Nation may stand out conspicuously.

This chamber believes that the changes of rates hereby recommended are not only in accord with the interests it vouches, but also harmonize with the fundamental principles above stated, upon which the present revision is conducted, and trusts that they will receive

due consideration from this committee.

Argols and wine lees.-This raw material, necessary to American industry, is not produced, save in irrelevant quantity, in the United States and is imported from the countries of southern Europe at the rate annually of about 28,250,000 pounds. Argols are a byproduct of the wine industry and the only visible source of raw material for the production of cream of tartar, tartaric acid, and

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Rochelle salts, tartaric products not having been obtained yet by any synthetic process.

Many are the uses of these finished products: Tartaric acid (of which about 3,000,000 pounds are yearly manufactured in this country) in dyeing and printing of fabrics, in the preparation of medicinal compounds, and as a substitute of citric acid in the manufacture of beverages; cream of tartar, in medicines and food products, especially in the form of baking powders, in the preparation of which probably more than one-half of the whole output (estimated yearly at about 25,000,000 pounds) is absorbed; and Rochelle salts, used pharmaceutically.

Baking powders are a household necessity. There is practically no family, however modest in circumstances, in whose grocery bill baking powders are not an item.

It is important, from the standpoint of health, that the use of baking powders made from cream of tartar be encouraged in preference to less healthful preparations of a similar denomination, such as the phosphate and alum baking powders. To this end it is necessary that the cost of baking powders should not increase, as a higher price would be felt widely, and in some measure add to the already high cost of living.

If the purpose of the present tariff revision is, as this chamber understands, to relieve raw materials bearing upon the necessities of life from fiscal burdens and to bring about by fiscal legislation such conditions as will promote a reduction in, or at least prevent an increase of, the cost of living, then the advisability of leaving unchanged the present rate of 5 per cent on argols, or crude tartar, is manifest, if they can not be returned, as in former tariffs, to the free list; while on partly refined argols, containing no more than 90 per cent of bitartrate of potash, a rate of 10 per cent, and, on those containing more than 90 per cent, a rate of 2 cents per pound would appear fair for revenue purposes.

On cream of tartar and tartaric acid this chamber recommends, in lieu of the present high duties, the rates, respectively, of 2 and 3 cents per pound, which appear sufficient for reasonable protection to the manufacturer, without leaving the consumers entirely at the discretion of the latter.

Citrate of lime.-For like reasons citrate of lime should be maintained on the free list. It is a raw material, imported chiefly from Sicily (5,219,544 pounds in fiscal year 1911), used in the manufacture of citric acid, of which over 2,000,000 pounds are yearly produced in the United States. Citric acid enters largely into the preparation of pharmaceutical compounds and of temperance beverages, so healthful in our climate.

The importations of citrate of lime have shown during the last years a tendency to increase, owing to the greater demand of citric acid for the above-stated purpose. As it is an article not produced in the United States, and as its market in the country of production has been organized to eliminate the fluctuations in prices formerly ruling in this raw material, its continuation on the free list, while not prejudicial to any American industry, would obviate increase in the price of citric acid and allied products, otherwise unavoidable.

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Because of the fact that few houses control the manufacture of citric acid in this country protection of the interests of consumers suggests the advisability of a reduction from the present prohibitive rate to one affording better guaranties against monopoly.

Lemon juice. In line with the arguments for free citrate of lime are those for free lemon juice, an article not produced in this country, used in the preparation of medicinal compounds and of cooling drinks, the consumption of which should be encouraged in the interest of public health, against that of poor and often noxious substitutes.

With a high protective tariff on lemons, depriving the consumer of small means of this healthful commodity, some avenue should be left open to him for getting, during the hot days of summer, the refreshing, thirst-quenching benefits of its juice, while by encouraging the utilization of culls in the manufacture of juice and eliminating them from the fruit market the latter is benefited also to the advantage of domestic production.

Boracic acid and borax.-The maintaining on boracic acid of a duty other than for revenue purposes is hardly understandable, considering the natural advantages possessed by this country for its production, averaging yearly about 3,000 tons against a little over 155 tons imported (during the fiscal year 1911).

The markedly declining tendency in the importations of this article, used chiefly in the manufacture of glass and as an antiseptic, and at present protected with a duty of 3 cents per pound, equivalent to a protection of about 80 per cent, shows that the reduction of the duty to a more reasonable rate is advisable, and this chamber indorses the proposed rate of three-fourths of 1 cent per pound contained in H. R. 20182, as well as the reduction of the present rate of 2 cents per pound to one-eighth of 1 cent per pound on refined borax.

The production of borax in the United States is almost entirely controlled by one firm, and amounts annually to about 20,000 tons. It is largely used for cleansing purposes, in the manufacture of soap, and in that of glass and earthenware.

Crude borate, of which this country produced 41,434 tons in 1909, should be placed on the free list.

Licorice root and extract.-Licorice root, a raw material not produced in this country and imported chiefly from southern Europe and Asia Minor to the amount of $2,060,561 in fiscal year 1911, is used in the preparation of licorice extract, and the latter is utilized in flavoring tobacco and for medicinal purposes. It should be maintained on the free list as a necessary material to industrial use, identified with the prosperity of an important American industry, and in the interest of consumption of American tobacco.

A specific duty equivalent to 15 per cent on licorice extract would be preferable to one ad valorem, owing to the difficulty of ascertaining the market price of said commodity in the countries of origin.

Sumac and tannic extracts.-The removal of duties on hides and undressed skins, accomplished by the tariff act of 1909, aimed at counterbalancing the increase in the cost of raw materials, due to the fact that production does not keep apace with consumption and the consequent reaction on the cost of leather manufacturers, which has to be paid by the ultimate consumer.

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Tanning materials being an important factor in determining the cost of leather, it is evident that they should be relieved as much as possible from fiscal burdens.

The scarcity in the domestic supply of tanning materials will make itself felt in the near future, as the deforestation of the hemlock, oak, and chestnut forests, from which are derived most of the materials now employed in the tannery, proceeds with alarming rapidity.

The importation of tanning materials should therefore be encouraged in the interest of the American tanning industry, and among these is ground sumac, used in the tanning of upper leather.

The duty on ground sumac should be lowered from the present rate of three-tenths of 1 cent per pound, equivalent to about 16 per cent ad valorem, to one-fifth of 1 cent per pound, equivalent to about 10 per cent ad valorem; and the importation of tannic extracts should be encouraged by reason of economy in freight, labor, and waste material in comparison to the raw materials, with tangible reductions in the duties. On sumac extract, instead of the present rate of five-eighths of 1 cent per pound, the duty should be fixed at three-eighths of 1 cent, and on chestnut extract reduced from the present rate of 15 per cent to three-eighths of 1 cent per pound.

Although some sumac and sumac extract are produced in the United States, namely, in Virginia, Sicily supplies most of this commodity, Sicilian sumac yielding the lightest and most esteemed extract, used not only in the tanning of leather but also in the textile industry.

Oils of lemon, orange, and bergamot. These essential oils are not produced in the United States, are supplied almost entirely by Sicily (in fiscal year 1911, lemon, pounds, 430,768, valued $323,552; orange, pounds, 73,804, valued $100,115; and bergamot, pounds, 65,199, valued $222,225), are used chiefly in perfumery and, save bergamot, as flavorings in beverages, confectionery, and pharmaceutical preparations.

They are at present on the free list, where they have been for many years, with the exception of orange oil, upon which at the last tariff revision a duty at first of $1 per pound, and then, upon protest, of 25 per cent was assessed. The imposition of a duty caused a decrease in the importations of orange oil from 92,077 pounds in fiscal year 1905 to 73,804 pounds in fiscal year 1911.

Bergamot is not grown in the United States and no manufacture either of lemon or orange oil exists or can be established in California on account of the high cost of labor, which does not admit of the extraction of the essential oils by hand, while no efficient machinery has yet been devised that will render the extraction of these oils industrially possible.

Protection can not be a valid argument in regard to these articles, because, as no domestic production exists, there is nothing to protect. Identified as they are with the success of important lines of American industry (perfumery, beverages, confectionery, etc.), lemon and bergamot oil should be continued on the free list and orange oil should be returned to it.

If, however, for revenue purposes, a duty should be deemed unavoidable, which in the end would have to be paid by the consumer,

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this chamber recommends that, instead of an ad valorem, as proposed in H. R. 20182, a specific rate, equivalent to the proposed 20 per cent rate ad valorem, be charged, in order to avoid the difficulty of assessment and the consequent fines to importers, through no fault of their own, which are apt to be encountered by an ad valorem rate. Olive oil. Olive oil, which only a score of years ago was imported in comparatively small amount, has become of late years an important article of food, owing to the demand created by the notable number of immigrants from southern Europe, in whose diet this article is an important item, as well as to the extension of its use among natives. In fact, while the importations of edible olive oil in 1892 amounted to only 706,486 gallons, they reached in 1911 a total of 4,405,827 gallons.

From the above figures, showing the remarkable progress in its consumption, the classification of olive oil under Schedule A (chemicals, etc.), appears rather out of date. Edible olive oil would be more properly classified under Schedule G (agricultural products), because olive oil destined to industrial use represents now the smaller amount of importations (in fiscal year 1911, 578,477 gallons, against 4,405,827 gallons of edible olive oil).

Olive oil, for many of our people, even of small means, who have come from southern Europe, where this food practically takes the place of butter in the diet of the people, is an article of prime necessity, and its beneficial use, either medicinally or as an article of food, is becoming more recognized also among our native population. The importation of olive oil has steadily and notably increased during the last two decades.

The olive-oil industry in California is still in its infancy. It has had a checkered career and passed through periods of inflation, when planting was general in sections where the climate and localities were altogether unsuitable, so that in many places planting had to be stopped and many of the trees previously planted had to be rooted

out.

The planting of olive trees in unsuitable conditions, inexperience in the cultural methods and in the best ways of preparing the oil, the fact that the olive tree required many years before bearing full crops, the scarcity of labor existing in that State, while the gathering of the olives is an operation that has to be performed by hand, all these facts show that the conditions of olive culture in California are not such as to enable it to supply this commodity at a reasonable cost in any quantity adequate to the requirements of consumption.

Although the production of olive oil in California is stated to have been of 920,000 gallons in 1911, or a little more than the increase (703,617 gallons) shown by the consumption of imported olive oil in fiscal year 1911, against 1910, its wholesale cost, which averages about $2.40 per gallon, against $1.90 for the imported, puts it beyond the reach of the consumers who mostly need this commodity.

If the price of olive oil is not reasonable and not easily accessible to consumers of small means, who, with normal crops, can obtain imported olive oil of good quality at $1.75 per gallon, other vegetable oils of less cost and lower value regarding both health and nourishing qualities will replace the use of olive oil among the less fortunate classes.