PARAGRAPH 90-ASPHALTUM. ter, and see whether our good roads improvement can not be advanced by relieving the people of the duty on these natural asphalts, which is very pronouncedly better than oil residuum products that can be furnished by the Standard Oil Co. and other concerns? Thanking you for your kindly interest and study of this matter, and wishing for you a merry Christmas and a glad New Year, and with assurances of my continued fealty and friendship in all matters that may appertain to your success and advancement, believe me, Sincerely, your friend, R. A. DENNY. DEPARTMENT OF PUBLIC Works, Hon. OSCAR W. UNDERWOOD, Chairman Ways and Means Committee, House of Representatives, Washington, D. C. DEAR SIR: It has been brought to the attention of the undersigned that a movement is under consideration looking to the removal of the present import duties on natural lake asphalts. As commissioner of public works of the city of Milwaukee I feel that it is my duty to express to you and through you to the Congress of the United States my views as to the desirability of removing these import duties. I have been more or less directly associated with the use of asphaltic materials in connection with street pavements and road work for over 25 years and have seen and followed closely the development of the use of asphaltic materials in this country, comprising both the natural or lake asphalts and the so-called residuum asphalts, and acting at the present time in the capacity of commissioner of public works of the city of Milwaukee, and in that capacity being to a great degree responsible for the special taxes assessed against the taxpayers in this city for the paving of the roadways, I feel that any governmental action which may be taken looking to the reduction of the costs of these materials will be a boon to a very large number of taxpayers throughout the entire United States, and will be particularly appreciated by the smaller taxpayers paying taxes on their little homes throughout a vast number of cities in this country. I can not see that the removal of these import duties will effect an undue hardship upon anyone, as it is my personal belief, from such knowledge as I have acquired in this particular material, that the manufacturers of the so-called petroleum residuum or blown-oil asphalts are simply enabled at the present time to charge and secure an undue amount of profit from their business. I agree with many of the experts of the country in the belief that the natural or lake asphalts produce a better and more lasting type of asphaltic pavement than do the pavements based on the residuum products, and if the removal of the import duties from these natural or lake asphalts will tend to decrease the price of that material, this decrease being reflected in the cost of the asphaltic pavements as laid on the streets, undoubted benefits will accrue to the taxpayers of the United States, on whom falls the burden of expense in these paving matters. This letter is therefore written for the express purpose of assuring you that the undersigned, in view of whatever degree of knowledge he has been able to obtain on this subject, is unqualifiedly in favor of the removal of the import duties upon both the crude and refined asphaltic materials and would be glad to go into this matter more fully and in greater detail at any time in the future when a further and more complete investigation of the merits of the subject was in progress. Very truly, yours, Hon. OSCAR W. UNDERWOOD, FRED G. SIMMONS, Commissioner of Public Works. SOUTHERN ASPHALT & CONSTRUCTION Co., Washington, D. C. MY DEAR MR. UNDERWOOD: I note that the question of the removal of the duties on asphalts is listed for discussion before your committee during the first week in January. PARAGRAPH 90-ASPHALTUM. At present the duty is $3 per ton on refined asphalt and $1.50 per ton on crude asphalt. These duties were put on asphalts in 1897 at the instigation of the producers of the California asphalts and were kept on under the tariff bill of 1909 for the benefit of and at the request of producers of residual asphalts, which are by-products of asphaltic petroleums. I think the duties on asphalts should be removed, for the following reasons: Asphalt has come into general use as a material for the successful construction of city streets and the better classes of country roads, and the present tariff tax means nothing more or less than an additional tax on such improvements. This additional tax is particularly obnoxious at this time, when there is such a widespread movement for the betterment of streets and roads. The cost of pavements in which asphalt is used would naturally be decreased if the tariff is removed, as the imported asphalts could be bought at a lower price, and this would have an effect on the price of every form of pavement. The tariff on imported asphalts, while not only increasing the cost of such asphalts, undoubtedly has its effect also upon the price paid for the by-product asphalts, so that a reduction in the price of the imported asphalts would undoubtedly enable cities and communities to secure much needed highway improvements at a lower cost than now prevails, which would probably mean that much more extensive improvement projects would be taken up for the betterment of our streets and country roads. As you know, I am greatly interested in the paving business, my company, The Southern Asphalt & Construction Co., makes a specialty of laying asphalt pavements. As we use the imported natural lake asphalts we are vitally interested in having the duty upon the importation of said asphalts removed. In view of the above, I trust that you can have asphalts, both crude and refined, placed on the free list when the time comes for preparing the next tariff bill. Anything you may be able to do along this line will be greatly appreciated by us. With kindest personal regards, I am, Your friend, EUGENE FIES, President. BRIEF IN SUPPORT OF SUGGESTION THAT ASPHALTUM BE PLACED ON THE FREE LIST SUBMITTED BY THE HASTINGS PAVEMENT CO. AND OTHERS. NEW YORK, January 31, 1913. The Hastings Pavement Co. respectfully requests that the duty on crude and refined asphaltum be removed and that both be placed upon the free list. "Crude asphalt" is the material just as it comes from the asphalt lakes, where centuries of exposure to atmospheric conditions has caused it to lose many of its lighter and more volatile oils. "Crude asphalt" from Trinidad Lake contains about 33 per centum of water; and the so-called process of "refining" consists merely of boiling out that 33 per centum of water. In other words, "refined" asphalt is nothing more than the "crude" asphalt with the water boiled out by the operation of heat. The Hastings Pavement Co. is and for 30 years has been engaged, at Hastings-onHudson, N. Y., in the manufacture of that form of roadway pavement known as asphalt block pavement. Its business consists of making the asphalt blocks and selling them to municipalities for street paving, or in laying the pavement itself under contract with municipalities. During all that period it has used and now uses Trinidad Lake asphalt exclusively as the binding material in its asphalt blocks. The long experience of the company in the use of Trinidad Lake asphalt has demonstrated that of all known bituminous materials it possesses the qualities of adhesiveness and cohesiveness to the greatest degree, and therefore best serves the purpose in making a substantial and durable form of pavement. There are other competing materials, such as Venezuelan asphalt, Cuban asphalt, and the so-called artificial asphalt made from oil. The presence of a high degree of cementitiousness in the bitumen is particularly desirable in the form of pavement made by the Hastings Pavement Co. Briefly stated, the asphalt block consists of asphaltic cement and crushed stone, compressed under high pressure; the bitumen contents of the mixture constituting the cement which holds the materials together. The bitumen in the Trinidad Lake asphalt is, in the opinion of this company, superior in all respects to that of any other asphalt, whether natural or artificial, and for that reason this company has for many years made exclusive use of this particular variety of asphalt. PARAGRAPH 90-ASPHALTUM. The company imports its asphalt direct from Trinidad in what is called the crude state, just as it comes from the Trinidad Lake, and, at the company's plant at Hastingson-Hudson, prepares the crude asphalt for use by driving from it, by means of heat, the 33 per centum of water contained in the crude asphalt as imported. In other words, the company has to thus "refine" its own asphalt, the so-called process of "refining" causing it to lose 33 per centum of its weight before being suitable for use in the manufacture of an asphaltic cement. Until 1897 no duty was levied on this raw material; since then a duty of $1.50 a ton has been assessed upon the "crude" asphalt, which means to this company a duty of $2.25 per ton upon that part of the material which is available for use; this company paying in addition thereto the labor and factory cost of treating the material as above described. In other words, in order to prepare ita raw material for use in the construction of a roadway for a city or village, it has to import the crude material, and pay a duty thereon based upon a bulk which ultimately furnishes but 67 per centum of that bulk in a condition ready for use in the manufacture of its pavement. The imposition of this duty not only does not protect any American industry, but in fact actually operates to impose an onerous and unjust burden upon a long established and successful industry, as well as to impose a wholly unnecessary tax upon the construction of modern roadways. There does not exist in the United States any commercial form of natural asphalt that competes in any way with the foreign deposits. It is a fact, however, that in the process of refining petroleum oil, having an asphaltic base, a by-product or waste is obtained, which is sometimes called an artificial asphalt, principally because it can be and is used in connection with the construction of roadways. That is to say, the oil refiner distills his oil for the purpose of obtaining and selling the light, volatile oils which have great value; to obtain them is the purpose of the refining of the crude oil. What is finally left is a waste which may be used in some way as an asphalt is used; but the oil is not refined for the purpose of obtaining that waste and, obviously, the imposition of a duty upon crude or refined asphalt was not intended to nor does it in fact furnish protection to the oil refiner. One might as well say that the imposition of a duty upon timber was intended to furnish protection to the saw mill owner in respect to the sawdust resulting from the manufacture of the timber into commercial forms of lumber. Moreover, it is now the declared policy of this Government to allow crude oil to enter free of duty; and it so happens, in respect to Mexican oil, for instance, that the importation of the crude oil free of duty also allows the importation without duty of so much of the artificial asphalt as is contained in the Mexican crude oil. The result is that the refiners of Mexican oil actually get, as incident to refining that oil, an artificial asphalt which has paid no duty, thereby working a grievous hardship upon the American manufacturer who is not engaged in the oil-refining business but who brings in the crude natural asphalt, paying duty upon it, refining it here with American labor, and then finding himself in competition with the oil refiner who has avoided all duty. We respectfully submit that both the crude and so-called "refined" asphalt should be placed upon the free list. As to the crude asphalt, it is typical in a striking degree of a raw material, for it is invariably a natural deposit existing in consequence of the lapse of ages of time and the slow processes of chemical change. It is taken from the lake by the simplest possible kind of labor, that of plain ordinary digging, and it is brought to the United States in such a condition of crudeness that on arrival it has again to be dug out of the hold of the vessel. If imported as so-called "refined" asphalt, the process of refining is in fact nothing more than boiling out of it the water which it contains in its crude state, and thus making its bulk less expensive to ship. But, however imported, its principal use is an important and essential component of modern roads. A customs duty upon it is, therefore, not only an unjust tax upon a raw material, but is in fact a tax upon a tax, because he who pays for the modern roadway is the taxpayer, and in paying his tax he is also subjected to the tax levied by the customs duty on the asphalt in that roadway. PARAGRAPH 90-ASPHALTUM. We are authorized to say that the following companies, likewise engaged in the manufacture of asphalt blocks, join with this company in urging that asphaltum be placed upon the free list: Asphalt Block Pavement Co., Toledo, Ohio; Washington Asphalt & Tile Co., Washington, D. C.; New Castle Asphalt Block Co., New Castle, Pa.; Railway Asphalt Block Co. (portable plants). All of which is respectfully submitted. Hon. OSCAR W. UNDERWOOD, THE HASTINGS PAVEMENT Co., OFFICE OF MAYOR, Kansas City, Mo., December 28, 1912. House of Representatives, Washington, D. C. DEAR SIR: As chairman of the Ways and Means Committee, I respectfully ask that, in your revision of the schedules in conjunction with tariff revision by the present House, you should take notice of the effect of the present tariff of $1.50 per ton on crude and $3 per ton on all refined asphalt imported into the United States. It is undoubted that some form of bituminous binder is necessary to hold good roads together, and stone is the natural material to use. With asphalt on the free list, material best adapted for this purpose could be used at greatly decreased expense. Good roads and pavements are costly enough without the addition of a tariff tax. The existing tariff could be saved by the communities now paying it in the form of increased costs, which could be put into much needed construction. That imported asphalts would be reduced in price if the tariff were removed is certain, since these products are now much higher in price (owing to the greater cost of production) than the pretended kinds of asphalt made from blown oil. Because the present duty on asphalt was imposed and is retained solely for the benefit of the far western producers of so-called blown oil, which is a by-product from the distillation of heavy petroleum. No lake of natural asphalt is found in the United States, so that no duties are necessary to protect this product or the labor engaged in its production. The product of California or Texas must pay heavy freight rates to market and should not ask Congress to maintain a tax on the whole country in order to overcome the disadvantages of the product's location. Because, in the face of an increase in asphalt imports from 115,000 tons in 1906 to 168,000 tons in 1911, the production of California oil asphalt in the same period increased 77,000 tons. This proves that the California industry can prosper in spite of the increasing use of imported asphalts. All that the Dingley duties have done is to make the imported product cost more and probably enable the California producers to charge more than they would for oil asphalts had no duties been imposed. Because, free of duty, imported asphalt could be supplied in refined form by direct shipment to all eastern and southern cities, saving heavy rail freight charges. New Orleans, Mobile, and cities similarly situated, and Kansas City with her water transportation, should be able to buy asphalt as cheaply as New York can buy it. Because, the increasing use of heavy oils for road treatment, for fuel, and other purposes, is resulting in constant advances in the price of these materials. This movement will be retarded if imported asphalt, whether crude or refined, is placed on the free list along with products like the Mexican oils, which are admitted free under the tariff act of 1909. Because, the increasing use of the Texas and California blown oil, passing under the name of asphalt, has furnished Kansas City and all this western country, for some years, with the most despicable paving products that has ever been put on our streets. This suggestion is in the interests of all the road-making authorities in this country; in the interest of every man who pays a paving tax in Kansas City and cities similarly situated. Because this product, whether from Trinidad or Bermudez, in Venezuela, will make better paving, more durable, worth more in every way, than that made with either California or Texas blown oil. Yours, respectfully, HENRY L. Jost. PARAGRAPH 90-BAUXITE. Hon. OSCAR Underwood, Washington, D. C. IOWA STATE HIGHWAY COMMISSION, DEAR SIR: I understand that your committee will consider, among other matters, the present tariff on crude and refined asphalts. It seems apparent that much of our permanent road improvement will require some form of asphalt and asphaltic oil in construction and maintenance. We have even had in a few instances, under special conditions, reasonably successful improvement by means of the application of asphaltic oil to common earth roads properly graded. I believe that the whole Mississippi Valley will use asphalt in various forms in road improvement during the next few years. I would suggest that you consider very carefully the reduction of the present tariff to reduce the cost of these materials. DEAR SIR: In regard to the duty on asphalts which is to come before your committee early next month: Our city has recently let contracts for paving many blocks of our streets and a large proportion of the work will be done with asphalt, which material meets with the approval of our board and when well laid and of the proper type is generally satisfactory. The present duty on imported asphalts, which appear to be the most desirable for street pavements, not only increases the price we must pay for the streets and roads improved with this material but also seems to affect the price of all paving materials; and this curtails the amount of improvement work that we are able to do. Mobile has shown a decided increase in population during the past few years and we anticipate a greatly accelerated growth following the opening of the Panama Canal, which will make necessary the paving of many more miles of our streets.. If Congress removes the duty on asphalts, I think the city will secure a material reduction in the cost of its street improvement work. Respectfully, yours, LAZ SCHWARZ, Mayor. BAUXITE. STATEMENT OF WINTHROP C. NEILSON, ESQ., REPRESENTING THE REPUBLIC MINING & MANUFACTURING CO. Mr. NEILSON. I represent the Republic Mining & Manufacturing Co. The CHAIRMAN. To what paragraph do you refer? Mr. NEILSON. Schedule B, paragraph 90, the bauxite items. I represent the oldest and one of the largest bauxite mining companies in this country. We have been mining bauxite since 1889. During that period we have had a protective duty of $1 a ton on bauxite during the time that most of our shipments have moved. During that period we have shown less than $1 a ton profit on our books. I simply make that statement to show the benefit the tariff has been to us, and I want to add that the present arrangement of $1 per ton is bringing in a nice little revenue from this industry. The CHAIRMAN. I do not think your article is in this schedule, is it-bauxite? Mr. NEILSON. Yes; it is in the schedule. |