PARAGRAPH 55-SULPHIDE OF ZINC. In conclusion.-We do not manufacture powdered (ground) chalk, whiting or Paris white, but use these materials in very large quantities in the making of calcimines, water-paints, etc. Our statements are thus unprejudiced. If the present duties are reduced, we will simply buy the whiting and Paris white from various European manufacturers. We believe this course will be also adopted by our various competitors and will only result in injury to the present American manufacturers and their employees. The difference in cost to the calcimine and paint manufacturers will be so small (possibly 10 cents per 100 pounds) that it will be absorbed by us or by the dealers to whom we sell our products. It will not reach the general public because the average person does not buy more than 1 pound annually. Yours, very truly, PARAGRAPH 55. M. EWING Fox & Co. Zinc, oxide of, and white pigment containing zinc, but not containing lead, dry, one cent per pound; ground in oil, one and three-fourths cents per pound; sulfid of zinc white, or white sulphide of zinc, one and one-fourth cents per pound; chloride of zinc and sulphate of zinc, one cent per pound. See J. H. Krebs, page 300. SULPHIDE OF ZINC. BRIEF OF GRASSELLI CHEMICAL CO. Hon. OSCAR W. UNDERWOOD, CLEVELAND, OHIO, January 2, 1913. Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: The Grasselli Chemical Co. respectfully submits the following in support of its belief that no change should be made in the present tariff rates on the following items: Paragraph 62. Acetate of lead, white and brown. Paragraph 66. Sulfide of zine, or white sulphide of zinc (lithopone). Paragraph 67. Chloride of zinc. Paragraph 71. Hyposulphite of soda-sulphide of sodium-silicate of soda. This company manufactures and sells the above chemicals. It is an Ohio corporation, originally started in 1839, at Cincinnati, Ohio. In 1885 the company was incorporated under the Ohio laws. The company has manufacturing plants, warehouses, and distributing stations in many of the large cities of the country, all of which represent a very heavy investment and give employment to many thousand men. The company is familiar with the manufacture of heavy chemicals both here and abroad, and from its experience knows that Germany is becoming more and more aggressive, in the distribution of its products, to foreign countries, especially the United States. The reason for this is that Germany has two great advantages: First, the difference in wages, which naturally decreases the cost of production (see H. Rept. No. 326, pp. 305 and 370); and second, PARAGRAPH 55-SULPHIDE OF ZINC. the protection afforded by their "Syndicates," "Cartels," "Selling associations," etc., which are fully defined in House Report No. 326, page 379. These associations are united for their common good, have the approval of the Government, and prevent individual competition. A careful consideration of this absolute control of the industry in the principal competing country must lead to the conclusion that it would be an easy matter for the German producers to jointly export into this country any quantity of goods, even at a small individual loss, for the purpose of dumping their surplus production and thereby causing a general demoralization of our markets. From the above it is also evident how impossible it is to export similar chemicals from this country into Germany. We therefore feel that any reductions in the existing rates on the articles mentioned would result in an increased production abroad and a greater exportation to this country, with the natural disastrous result of probably forcing the American manufacturers either to discontinue or curtail their operations. In either event, a large number of American workmen would be deprived of employment and the foreign producers and workmen would reap the benefit. In our opinion, and we earnestly ask your consideration of it, the present rates on the above items should be continued without change. No conditions have arisen since the enactment of the present tariff which will justify any reductions. Having especially in mind the conditions existing abroad, as above set forth, we submit the following list of chemicals, all of which are manufactured by this company, and none of which now carry a prohibitive duty, being freely imported, as the customs statistics will prove, and therefore request that no changes be made, and that the present rates be allowed to continue, and with special reference to paragraph 62, acetate of lead, which has had a differential rate between white and brown, and also paragraph 71, sulphide of soda, in which special distinction is made between the product containing a percentage over and under 35 per cent of sulphide of soda, as more fully explained later. Paragraph 62. Acetate of lead, white and brown.-The present duty of 3 cents per pound on the white and 2 cents per pound on the brown should remain unchanged, especially the differential of 1 cent as between the two grades, for the reason that the white is more refined and expensive to manufacture. The average selling price of the acetate of lead and the average cost do not permit of more than a fair manufacturer's profit as the duty stands to-day, and by reason of the cheaper material supply and cheaper labor conditions of the foreign manufacturers the manufacture of these articles in this country would greatly suffer if the present duties were lowered. A domestic overproduction also exists in this country, and which fact should be taken into consideration. Paragraph 66. Sulphide of zinc (lithopone).—Even under the present duty the importations have largely increased in 1910, 2,300,000 pounds and in 1911, 5,400,000 pounds. It will therefore be seen that the duty is not at all prohibitive and that the foreign manufacturer is an active competitor in this market. In view of these large PARAGRAPH 55-SULPHIDE OF ZINC. importations any further reduction is unnecessary and the Government is now receiving a substantial revenue from the article. It is also proposed to change the specific duty to an ad valorem duty. We earnestly urge that this be not done, but that a specific rate of duty be continued. Under an ad valorem rate, by undervaluation, the Government is often deprived of its legitimate revenue, which can not occur under a specific rate of duty. At best, the operation of an ad valorem rate is very unsatisfactory and often leads to endless disputes. Also under the specific duty all parties concerned know always what rate of duty must be paid, whereas under the ad valorem duty the rate must constantly fluctuate with the ruling selling prices. Paragraph 67. Chloride of zinc.-The principal crude material of this article is zinc. A review of the market prices of spelter (which can be obtained from the mineral industry) shows a constantly rising price for spelter. The value of spelter governs the price of the zinc required for the manufacture of this article. On this account the American producer has paid more for his crude material during the past few years than ever before. The present duty is not prohibitive and permits the foreign manufacturer to compete with the American market, and he is, as a matter of fact, a very strong and active competitor, importing during 1910, 1,200,000 pounds, and in 1911, 1,300,000 pounds. Paragraph 71. Hyposulphite of soda.-Statistics show that large quantities of this article have been imported during the past years. During recent years there has been a falling off of importations, due to severe domestic competition, which has reduced the average selling price to practically cost, the domestic consumer naturally having the benefit of these low prices. Nevertheless, under these extremely low prices during 1911, 29,000 pounds were imported. The duty has enabled the American manufacturer to successfully compete with the foreign manufacturer, and any reduction would seriously interfere with the domestic production of this article. Paragraph 67. Sulphide of soda. The present tariff provides a rate of three-eighths cent per pound for the article containing less than 35 per cent of sulphide of soda, and three-fourths cent per pound for all containing over 35 per cent of sulphide of soda (otherwise known as concentrated). The reason for that action was because the foreign manufacturer had perfected the process of fusing and concentrating the product, so that it contained from 60 to 62 per cent of sulphide of soda, as against 30 to 35 per cent of the then commercial article, and was importing the concentrated under the old rate of duty, which netted the Government only one-half what it shou. ¦ have received, for there was practically being imported 2 pounds instead of 1. The imports show in 1910, 596,000 pounds, and in 1911, 456,000 pounds. The duty is now being paid according to the strength, and if the two qualities are not differentiated the revenue, instead of being greater than it now is, will be considerably less, for the foreign manufactuer will export all his product in the concentrated form, and it would also work a serious hardship on the domestic producers if this were permitted, and we strongly urge the differential be maintained as it now is. Government statistics have been computed during the last two years on the two grades, and if PARAGRAPH 55-SULPHIDE OF ZINC. only one duty, regardless of strength, is adopted it can readily be seen that the revenue would be materially decreased. Paragraph 71. Silicate of soda.-Under the present tariff there was imported during the past year 1,200,000 pounds, which will show that the present duty is not prohibitive, and the lowering of this duty, it seems to us, is unnecessary, and will not give increased revenue to the Government. Respectfully submitted. THE GRASSELLI CHEMICAL Co., BRIEF OF BECKTON CHEMICAL CO., NEWARK, N. J. WASHINGTON, D. C., February 6, 1913. Hon. OSCAR W. UNDERWOOD, Chairman Ways and Means Committee, House of Representatives, Washington, D. C. SIR: Referring to our recent conversation in regard to an article known as lithopone, I beg to state that lithopone is a compound of the chemical products in which are used barytes and sulphid of zinc. It is not known eo nomine in the tariff act, but is a well known article of commerce both in this country and abroad, and when imported into this country it is classified as sulphid or sulphide of zinc under paragraph 55 of the present tariff act and pays duty of 11 cents per pound. The barium sulphate in the form of barytes, when properly mixed with zinc sulphide produces this pigment which is commonly sold under the name of lithopone, and it is extensively used in the manufacture of flat coat paints, linoleum, oil cloth, and the rubber industries. The importation of this article into this country is in increasing quantities, and for the year ending June, 1911, 5,409,520 pounds of lithopone were imported into the United States, paying a duty of 11 cents per pound. This, I am told, is about one-eighth of the total amount of lithopone produced per annum in the United States. The rate of 14 cents per pound was equivalent to an ad valorem rate in 1890 of 43 per cent, in 1905 of 48 per cent, in 1910 of 41.85 per cent, and while I have not the figures for the last year, I presume the ad valorem equivalent would be about 40 per cent. The barytes entering into the manufacture of lithopone pays a duty of $1.50 per ton under paragraph 42 of the present act, and sulphid of zinc, or white sulphide of zinc, pays 14 cents per pound as stated above, under paragraph 55 of the present act, and as I have already stated, lithopone, when imported, is classified under paragraph 55 by similitude. The manufacture of lithopone in this country is a comparatively new industry, and has been established within the last fifteen or twenty years, and it is substantially upon a competitive basis with the European article, as is shown by the increasing importations into this country, and it would seem that the industry would not bear a much lower rate of duty. We would, however, suggest that sulphid of zinc, or white sulphide of zinc, pay a duty of 1 cent per pound, and in as much as you and your committee are in favor of ad valorem rates, may I suggest that the rate be made 30 per PARAGRAPH 56-PAINTS, COLORS, ETC. cent ad valorem, but not less than 1 cent per pound. This, as you will notice, will be a reduction of 20 per cent ad valorem from the present duty. In this connection I desire to draw your attention to the briefs which have already been filed and have become a part of the printed record of the hearings upon the chemical schedule. Believe me to be, with very great respect, PARAGRAPH [6. CHARLES P. SEARLE, Counsel for Beckton Chemical Co., Newark, N. J. All paints, colors, pigments, stains, lakes, crayons, including charcoal crans or fusains, smalts and frostings, whether crude or dry or mixed, or ground with water or oil or with solutions other than oil, not otherwise specially provided for in this section, thirty per centum ad valorem; all glazes, fluxes, enamels, and colors used only in the manufacture of ceramic, enameled, and glass articles, thirty per centum ad valorem; all paints, colors, and pigments, commonly known as artists' paints or colors, whether in tubes, pans, cakes, or other forms, thirty per centum ad valorem. For ceramic colors, see H. J. Krebs, page 300; C. K. Williams & Co., page 307; and F. A. Reichard, page 308. PAINTS, COLORS, ETC. STATEMENT OF MR. ARTHUR S. SOMERS, NEW YORK. Mr. SOMERS. Mr. Chairman and gentlemen, I am here on behalf of the manufacturers of dry colors of the United States, and I want to say at the outset that, in order that the committee may understand it from our point of view, we consider the manufacture of dry colors as the last step in the chemistry of the manufacture of paint and printing ink. The dry color manufacturer assembles the various ingredients, the chemicals and aniline dyes, and pigments of various kinds, and, by a chemical process, combines them and turns out the finished product, which, from his point, requires just the skill of the manipulator to mix them in certain vehicles for the purpose of making paint, printing ink, or wall-paper color. So that we represent the last step in the chemistry of paint and ink making, and we believe that, because of this unique position, any consideration tending toward a revision of the tariff on dry colors should take into consideration at the same time a revision of the various items leading up to and through these channels, the acids, the coal-tar dyes, and other pigments; and that when the committee desires to reduce the tariff on dry colors, if that be the principle and policy of the Congress—and I assume it is that they take into consideration the effect that the duty levied upon acids, coal-tar dyes, and other pigments entering into the manufacture of dry colors will have upon the dry color industry of this country. Mr. HARRISON. All of those have been reduced in the bill, have they not? Mr. SOMERS. No. Mr. HARRISON. Well, substantially all of them? Mr. SOMERS. Yes. |