PARAGRAPH 11-BORAX. duction to a point of connection with a transcontinental railway line. The industry which, through years of development, effort, and economic management, has thus grown and developed in the arid region of Death Valley, until at present there is expended annually for labor and supplies approximately $750,000. In order to produce commercial borax and boric acid from the crude material extracted from the Death Valley fields, it is necessary to combine the borate ingredients existent in the material with a certain percentage of soda. Soda of proper quality does not exist in that region. It therefore becomes necessary to either ship the crude material to some point on the Atlantic seaboard, where it may be combined with soda, or to ship soda from the point of its production in the Eastern States to some point on the Pacific coast, and there to combine it with the borate material. Since the territory of the greatest distribution for the refined product is existent upon the Atlantic coast and east of the Mississippi River, it has been determined by experience that it is necessary to ship the crude ore to some point in the East for its manufacture into refined borax and boric acid, and from that point distributed to the consumers. The vast production and transportation of raw material from the fields in the West to eastern points of manufacture necessitates a considerable expenditure. Approximately 25,000 tons of marketable borate ore are shipped from the 50,000 tons mined from these fields each year to the Atlantic seaboard for refining. Of such crude material so shipped approximately 60 per cent consists of lime, which has no commercial value. Thus it becomes necessary to transport across the continent 15,000 tons of waste material in order that the essential ingredients of the crude ore may be secured. Such trnsportation necessitates the payment of large sums for freight and adds greatly to the commercial and economic value of the borax industry, as the same has grown up in this country. With the present import duty existing, the American borax industry is enabled to compete successfully in the American market with foreign producers of the same material. The producers of borate material in the western United States have their strongest competitors in the fields of borate ore existent upon the eastern and western coasts of South America. In the Argentine Republic, Chile, and Peru borate of lime superior in quality to the California mineral can be produced from extensive fields at a low cost with "peon" labor, which receives a daily wage of from 25 to 50 cents. The product of these fields can be cheaply transported by ship to American ports, and the total expenditure for production and delivery of South American borate material to points of manufacture and distribution within this country is, and will continue to be, very cheap when compared with the outlay necessary to produce the material in the Death Valley region and transport the same to the Atlantic coast, there to be refined and manufactured into the commercial product. Such South American competition becomes doubly dangerous to the borax industry of this country because of the fact that upon the completion of the Panama Canal the South American producer, chiefly in Chile and Peru, can extract, ship, and deliver crude borate material to New York or other Atlantic seaboard ports PARAGRAPH 11-BORAX. at a less cost than the cost of mining in the Death Valley fields plus the cost of transportation to the eastern seaboard points. If the import duty is removed from borate, as was proposed in House bill 20182 and passed by the House, the industry which has been built up in this country, together with its incidental and attendant activities and benefits, would cease. A great amount of valuable property would be forced to lie dormant and to revert to its original condition of an arid, nonproductive desert waste of drifting sand. The only direct result would be to wreck an American industry and take from the channels of trade and commerce the benefits which are now directly derived from such industry in a monetary and commercial sense. If, on the other hand, the import duty was maintained upon borate of lime, borax, and boracic acid, the present extensive workings of Death Valley will continue their operations and hundreds of persons who are now dependent for support upon such industry and its incidental activities would continue in their present satisfied and prosperous condition, and the other mineral resources of the territory which have been developed in the past will continue to be prospected and developed in the future. The duties under the present law are a reduction of 60 per cent from what they were under the Dingley law, and under these conditions only mines that are fairly well situated from a transportation standpoint are able to operate. Many properties that were formerly operated have been compelled to discontinue operations. We may mention some of these properties: In Oregon, the Rose Valley Borax Co.; in Nevada, the Amedee Borax Co., the Rhodes-Marsh Borax Co., Teels-Marsh Borax Co.; the borate properties at Columbus, Nev., the Reno Borax Co., in California, the San Bernardino Borax Co. (where the recent potash discoveries were made), and the mine of the Sterling Borax Co. in Ventura County. None of these properties can be profitably worked under the present conditions. It is therefore imperative that instead of putting borate material on the free list the present duty should be maintained and that the duties on refined borax and boracic acid also should not be reduced. The price of borax has decreased over 90 per cent since 1870, when it was 35 cents per pound, to 3 cents per pound in 1912. The annual consumption has increased from approximately 300 tons in 1870 to over 20,000 tons in 1912. The duty has been reduced 60 per cent from what it was under the Dingley bill, 5 cents per pound, to 2 cents per pound under the present law. To remove the duty would close the western mines. The present improvements and desert developments, including 127 miles of broad-gauge railroad, would, however, suffer, which is much to be regretted, for if the borate shipments were discontinued the railroad would have to be abandoned, as the other business would not support the operations of the road, and all development in that region of the Pacífic coast would consequently cease. Yours, very truly, PACIFIC COAST BORAX CO., Eastern Manager. PARAGRAPH 12. PARAGRAPH 12-CAMPHOR. Camphor, refined, and synthetic camphor, six cents per pound. CAMPHOR. AMERICAN CAMPHOR REFINING CO., BOSTON, MASS., URGES RETENTION OF DUTY ON CAMPHOR. Hon. OSCAR W. UNDERWOOD, BOSTON, January 6, 1913. Chairman of Ways and Means Committee, Washington, D. C. SIR: We respectfully bring to your attention the importance to the American refiner of camphor that there should be no change in the existing rate of duty under the present tariff. Crude camphor is a monopoly of the Imperial Japanese Government and is admitted free of duty. Refined camphor is manufactured by the American refiner from the crude camphor imported from Japan and Formosa. Notwithstanding a duty of 6 cents per pound on refined camphor, the imports of Japanese refined camphor are constantly increasing, as will be seen by the following statement: At the present time Japanese refined camphor is selling at from 1 to 2 cents per pound less than the home product, notwithstanding the duty of 6 cents per pound. In consequence of the fact that labor in Japan is less than onefourth of the amount paid in the United States for similar labor, and as refiners here are not favored as are the refiners in Japan, it will readily be seen that if the duty on the refined product is decreased, or if a duty is placed on crude camphor without a corresponding increase in the duty of refined camphor, the industry in the United States must be discontinued. We shall be pleased to furnish any additional information or to answer any inquiries. Respectfully, AMERICAN CAMPHOR REFINING CO., BAKER & BRO., NEW YORK CITY, PROTEST AGAINST CHANGE OF DUTY ON CAMPHOR. Hon. OSCAR W. UNDERWOOD, NEW YORK, January 8, 1918. Chairman Committee on Ways and Means, House of Representatives, Washington, D. C. DEAR SIR: In reply to your notice of tariff hearings, dated December 11, 1912, we beg to submit the following: PARAGRAPH 12-CAMPHOR. "Paragraph No. 12. Refined camphor, present duty, 6 cents per pound. We beg to enter our protest against any changes in the present tariff reducing the tax on refined camphor from 6 cents per pound and placing a duty on the crude material, which is now on the free list. Should the changes in H. R. 20182 become effective, it will be the equivalent of reducing the present duty on refined and synthetic camphor 663 per cent. The crude supply of the world is controlled by the Japanese Imperial Government monopoly. Due to the advantages enjoyed by the Japanese refiners of location and cheap-labor conditions, even under the present duty imports of refined camphor have increased as follows: We have been refiners of camphor for about 40 years and desire to remain in the business, but any radical changes in the present tariff schedules will put the business in the hands of foreign refiners. We remain, very respectfully, yours, H. J. BAKER & BRO. PFIZER & CO., NEW YORK CITY, REQUESTS THAT PRESENT DUTY ON CAMPHOR BE MAINTAINED. Hon. OSCAR W. UNDERWOOD, Chairman Committee on Ways and Means, House of Representatives, Washington, D. C. DEAR SIR: Pursuant to your notice of tariff hearings, 1913, dated December 11, 1912, we beg to submit the following: The paragraphs mentioned below refer to the present tariff law. Paragraph 12. Camphor, refined, and synthetic camphor.-Present rate, 6 cents per pound. It is evident from the fact that refined camphor is constantly being imported into the United States in increasing quantities that the refiners in the United States are not enabled to compete successfully with the foreign refiners, especially those of Japan, where all the costs of refining camphor are vastly lower than those of our own country. The imports of refined camphor into the United States in 1900 were 109,971 pounds, and have been constantly increasing since then, until in 1911 the imports were 492,111 pounds. We submit, therefore, that if this industry is to be continued in the United States the present duty should be maintained, if not increased. Paragraph 527. Camphor, crude, natural.-On the free list of the present tariff. 78959°-VOL 1-13- -9 PARAGRAPH 12-CAMPHOR. This is the raw material for the manufacture of refined camphor. Supplies of the world of crude natural camphor are now practically under the control of a monopoly established by the Imperial Japanese Government. Crude natural camphor is not only the raw material for refined camphor, but also for other important products manufactured in the United States. We submit that this article should be retained upon the free list. If, however, for reasons of revenue it is deemed wise to place a tariff upon this material, then we suggest that a proportionate increase should be made in the tariff for refined, bearing in mind that 100 pounds of crude camphor represents in the finished refined product 85 to 87 pounds. Respectfully, yours, NEW YORK, January 6, 1913. CHARLES PFIZER & Co. (INC.), STATEMENT BY SCHERING & GLATZ, NEW YORK, N. Y. NEW YORK, January 30, 1913. The honorable COMMITTEE ON WAYS AND MEANS, House of Representatives, Washington, D. C. SIRS: We beg leave to present to your committee for consideration the following data relating to the chemical schedule of the tariff revision: 1. Crude synthetic camphor from oil of turpentine.-The tariff act of 1909 provides that natural crude camphor enters the United States free of duty, excluding, however, absolutely a crude synthetic camphor, because the impurities of the latter are not identical with those of natural camphor. Importers of crude synthetic camphor are required, therefore, to enter the product under the paragraph which provides that "Refined or synthetic camphor shall pay a duty of 6 cents per pound." Competition with the natural product is made impossible, therefore, although it is well known that neither the natural nor the synthetic crude camphor can be used for the production of a satisfactory colorless grade of celluloid. We recommend that this paragraph be changed to read: "Refined natural or synthetic camphor shall pay a duty of 6 cents per pound" and that paragraph 527 dealing with natural crude camphor be supplemented to include also the synthetic crude camphor: 2. Chemical compounds and salts containing alcohol, or in the preparation of which alcohol is used.-Paragraph 3 of the tariff act of 1909 provided that chemical compounds and salts containing alcohol, or in the preparation of which alcohol is used, shall pay a duty of 55 cents per pound, but not less than 25 per cent ad valorem n. s. p. f. We recommend that this paragraph be changed to exclude chemical preparations in the preparation of which alcohol is used which do not contain alcohol, however, and that an ad valorem duty be provided therefor not higher than that assessed on medicinal preparations. The present rate of duty is absolutely unjust, because it exceeds in many instances many times the value of the merchandise. Chloral hydrate, for instance, entering under this paragraph, has a |