PARAGRAPH 1-ACIDS. A study of the appended table will make it obvious that Schedule A has never been treated as a source of revenue. Consideration from this point of view may well result in the Government's pursuing a diffenert policy. The chemicals manufactured by this company on which a duty is assessed, are as follows: Sodium hyposulphite, sodium sulphid (crystal and concentrated), sodium phosphate, trisodium phosphate, sodium sulphite (crystal and anhydrous), sodium silicate, bichloride of tin, tín crystals, alum products. These are all dependent upon cheap sulphuric acid, and when Europe is permitted to dump its biproduct acid in this country in the form of such salts, it simply deprives the United States of an outlet for its own acids. If these importations are to be allowed then we strongly recommend the Government's collecting a revenue thereon, which it can do without the least risk of increasing the cost of the articles to the consumer. Respectfully submitted, GENERAL CHEMICAL COMPANY, Rough analysis of Schedule A yielding 4 per cent of total tariff revenue. STATEMENT OF THE COCHRANE CHEMICAL CO., BOSTON, Hon. OSCAR W. UNDERWOOD, MASS. BOSTON, MASS., January 2, 1913. Chairman Committee on Ways and Means, Washington, D. C. DEAR SIR: We, the Cochrane Chemical Co., of Boston, a Massachusetts corporation, beg to present our views on the proposed tariff reductions in Schedule A. Our principal product is sulphuric acid, on which there is now a duty of one-fourth cent per pound. We admit that the full amount of this duty may not be necessary in the case of competition with the European nations, where freight rates form a natural barrier. In the case of Canadian competition, however, the situation would be dangerous to the American sulphuric-acid producer. Canada is rich in raw material, viz, pyrites, and with cheaper labor can, if the duty is removed, flood our markets, while we would be unable to retaliate so long as she retains her present tariff, fortified by a "dumping clause." Under these circumstances our disadvantage is obvious. We believe it would be only fair to our interests to have a similar dumping clause, especially if the duty should be entirely removed. PARAGRAPH 1-ACIDS. We further believe that it is not only unwise but impossible to intelligently draw up the chemical schedule until the various mineral schedules which deal with our raw materials, such as lead, zinc, bauxite, etc.-have been settled. As the manufacture of chemicals is by far the most complicated and technical of any of the industries of the countries, it is a schedule not to be drawn up hurriedly. In closing, we think that the most practical policy and fairest to all concerned would be somewhat as follows: First. Eliminate the tariff peaks by reducing excessive rates, so that the advantages of protection may be more equitably distributed among its beneficiaries." Second. Abolish tariff on raw materials essential to American industries in order to compensate for lower rates upon the manufactured products. Third. Reduce duties upon manufactured articles gradually by enforcing as far as possible a moderate percentage of reduction each year for a period of years. Yours, very truly, COCHRANE CHEMICAL CO., CITRIC ACID. STATEMENT OF POWERS-WEIGHTMAN-ROSENGARTEN CO., MANUFACTURING CHEMISTS, PHILADELPHIA, PA. The Hon. OSCAR W. UNDERWOOD, PHILADELPHIA, January 6, 1913. Committee on Ways and Means, House of Representatives, Washington, D. C.: Citric acid is now assessed at a duty of 7 cents per pound. This duty, which is a trifle less than 25 per cent ad valorem, should be allowed to remain undisturbed, as great advantages are possessed by the foreign makers owing to cheaper labor, cheaper apparatus, and cheaper reagents which enter into its manufacture. This article is made from citrate of lime, which is imported from Sicily and the West Indies, and also from lime juice obtained from the West Indies. These raw materials, citrate of lime and lime juice, should remain upon the free list. There is no country in the world which imposes an import duty on either of them. Respectfully submitted. POWERS-WEIGHTMAN-ROSENGARTEN CO., PARAGRAPH 1-ACIDS. STATEMENT OF CHARLES PFIZER & CO. (INC.), NEW YORK, N. Y. 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 1. Citric acid.-Present rate, 7 cents per pound. This represents, on the present market price abroad, less than 20 per cent ad valorem, which we think is little enough to enable the manufacturers in the United States to compete with the lower cost of production in Europe. Imports into the United States of foreign manufacture are constant, and at present rate, therefore, the Government obtains a revenue. Under the Wilson bill this article was dutiable at 25 per cent ad valorem. We suggest, therefore, that the present rate of duty should be maintained. In European countries combinations and agreements to maintain prices are not only permissible but encouraged by some Governments, as is well known; hence if, because of a reduction in our tariff rate, manufacturers in the United States found it unprofitable to operate, the people of this country would be the eventual sufferers by being compelled to pay much higher prices because of control of markets in Europe beyond the reach of the laws of the United States. Paragraph 613. Lime, citrate of.-Now on the free list of the present tariff. Paragraph 610. Lemon juice, lime juice.-Now on the free list of the present tariff. These are the raw materials for the manufacture of citric acid. In no large manufacturing country of the world is there an import duty imposed on these crude materials. The greatest country of production is Sicily, and in that country the Italian Government has established a monopoly, controlling prices to be paid by buyers. We strongly recommend that lime, citrate of; lemon juice; and lime juice be retained upon the free list. If for any reason, however, in the wisdom of your committee, it is deemed desirable to effect a tariff on these articles, then we trust that an equivalent advance on the tariff on citric acid be effected, bearing in mind always that it takes from 13 to 14 pounds of citrate of lime to manufacture 1 pound of citric acid. Paragraph 1. Tartaric acid.-Present rate, 5 cents per pound. This rate has increased imports very largely to the detriment, proportionately, of the manufacturers in the United States. The imports in 1907 were 11,573 pounds, and increased constantly until in 1911 they were 331,538 pounds. Crude argols is the raw material for the manufacture of this article. European makers of tartaric acid operate by using the lowest grade of wine lees and the refuse which they get from the wine presses. American manufacturers can not use this low-grade stuff because of added freight costs from Europe on about 80 per cent waste material and because of labor costs being at least three times greater in the PARAGRAPH 1-ACIDS. United States than in Europe. Further, the makers in the United States must pay duty on the crude material used, while the Europeans have it directly at their doors free of any extra cost. Manufacturers in the United States also pay from 50 to 100 per cent more for other raw materials used in the manufacture of tartaric acid, as well as everything that goes into construction of plant and operation of same. In and about our factory we employ labor in the form of carpenters, coppersmiths, tinsmiths, machinists, masons, and ordinary workmen, as well as high-priced chemists, clerks, etc., to all of whom we pay wages far in excess of anything paid in other countries. The advantages possessed by the European makers over the manufacturers in the United States in practically everything that goes to make up the cost of producing this article is not offset by a duty of 5 cents per pound. To make a relative and proper proportion of rates, as compared to cream of tartar mentioned below, the duty upon tartaric acid should be 64 cents per pound. Paragraph 6. Cream tartar.-Present rate, 5 cents per pound. What we have said above with regard to tartaric acid applies with equal force to cream tartar. We think if the duty on crude argols is maintained at 5 per cent ad valorem, as at present, that the rate upon cream tartar should remain at 5 cents per pound. The chemical ratio between tartaric acid and cream tartar is as 1 is to 11, 1 part of tartaric acid being equal to 14 parts of cream tartar. Paragraph 6. Tartrate of soda and potash or Rochelle salts.-Present rate, 3 cents per pound. This rate was established under the law of 1909, and the imports during the fiscal year of 1909 immediately increased to 40,123 pounds, as compared to the import in 1908 of 1,722 pounds. Imports have constantly increased since the enactment of the law of 1909, so that during the fiscal year 1911, 78,257 pounds were imported, and, as far as we have been able to learn, imports during the fiscal year 1912 will exceed at least 125,000 pounds, clearly demonstrating that the law of 1909, establishing a rate of 3 cents per pound, is as low as it should be. The crude material for this article is crude argols, and what we have said above with regard to tartaric acid and cream tartar applies with equal force to this article. Paragraph 6. Argols or crude tartar, or wine lees, crude.-Present rate, 5 per cent ad valorem. About 95 per cent of all the consumption in the United States is imported from European centers. These articles are the crude material for the manufacture of cream tartar, tartaric acid, and Rochelle salts. If in the wisdom of your committee this crude material is placed upon the free list, then a proportionate reduction could be consistently made in the abovementioned rates for the products. If, on the other hand, any advance in the tariff rates on this crude material is deemed wise, then a proportionate increase should be made in the rates of duty for the abovementioned products. Respectfully, yours, NEW YORK, January 6, 1913. CHARLES PFIZER & Co. (INC.). PARAGRAPH 1-ACIDS. TARTARIC ACID. BRIEF OF THE HARSHAW FULLER & GOODWIN CO., CLEVELAND, OHIO. JANUARY 6, 1913. SIR: Paragraph 1 provides for a duty on tartaric acid of 5 cents per pound. Paragraph 6 provides for a duty on argols or crude tartar or wine lees, crude, 5 per cent ad valorem; also cream of tartar and patent tartar, 5 cents per pound. We respectfully ask that no change be made in the duties on these articles. On April 1, 1911, Mr. E. Fabre, who was for 15 years superintendent of the largest factory in Europe, engaged in the manufacture of cream of tartar and tartaric acid, entered our employ to superintend the building, equipping, and operation of a plant for the manufacture of these products, in connection with our chemical works located at Elyria, Ohio. The plant was completed in August, 1912, and has been in operation since. While we have not been long enough in the business to have full information as to the cost of manufacturing and distributing these goods, we have learned enough to know that if any material reduction is made in the tariff we can buy them cheaper abroad than we can produce them here. Through Mr. Fabre we have complete information as to manufacturing conditions in France. Our factory was built by American workmen receiving the American scale of wages. It is equipped entirely with American-made machinery. We are advised by our superintendent that the cost of building and equipping our factory was almost double that of a similar plant in France. Our minimum wage is $2 per day, and the average wage paid is $2.80 per day. In the French factory, of which our superintendent had charge, the minimum wage paid was 34 francs per day; the average was 4 francs, or a little less than 80 cents per day American money. In other words, the average daily wage in the French factory is less than one-third of the average wage in our factory. The raw material used by us is obtained almost entirely from France, Italy, and other wine countries of southern Europe, as our own country produces only about 2 per cent of the total amount which it consumes. The majority of the crop is marketed during three or four months of the year, and this, coupled with the fact that we are so far from the source of supply, compels us to keep invested large sums of money in stocks of raw materials. We pay freight on this raw material from Europe to Elyria, Ohio, not only on the goods which can be used, but on impurities contained in them, which amount to from 30 to 50 per cent of the total bulk, and have no value as a by-product. The foreign factories, which are close to the supply of raw material, are able to obtain it as required, and do not have to invest large sums in supplies. In addition, they can obtain at low prices goods which are wet or otherwise damaged, and consequently not in fit condition to transport a long distance. |