PARAGRAPHS 111-112-MARBLE. Mr. JACKSON. The benefit would be with the importations. The importations would remain in this country. Otherwise, if the tariff is not reduced, it will be driven out. Mr. RAINEY. Do importations have any effect upon prices made in this country by domestic producers? Mr. JACKSON. They usually follow. For instance, we had to raise these prices 20 or 25 cents on account of the freight rates for transportation. They follow.. They say, "All right; the importer has got to pay so much more, and the article is worth so much more, and we will raise it about 15 or 20 cents." It is quite a natural condition. For instance, if the duty should remain the same-to-day the material is worth $3, and we have to pay 25 cents more now. We can not sell it for less than $3.25. The domestic material is sold for $1.75. They say, "Now the importers have to pay 25 cents more freight and duty; the material can be bought cheaper from New York; let us take advantage of the situation and still have $1.95 or $1.90." Mr. RAINEY. All right; that is all. Mr. HILL. Was there not a reduction in the Payne bill from the Dingley bill? Mr. JACKSON. No. Mr. HILL. As to none of these? Mr. JACKSON. A reduction was only made on slabs, not on blocks, where the slabs were reduced by 2 cents a square foot. Mr. HILL. Was there any reduction in granite? Mr. JACKSON. That was from 12 to 10 cents. We import I can not say that I am the only importer of this limestone-we import to-day about 15,000 cubic feet more per year on account of the reduction of 2 cents. Mr. HILL. But you get no more profit? Mr. JACKSON. No; we gave them the benefit of it. If any tariff is reduced by certain proportions, the manufacturer will get the benefit of it. Mr. HILL. I supposed it would go to the other side. Mr. HILL. The man who buys and manufactures it? Mr. JACKSON. Yes. Mr. HILL. He passes it on down to the consumer, just as you pass it down to him, does he not? Mr. JACKSON. That is a question. STATEMENT OF GEORGE W. ASHLEY, ESQ., REPRESENTING THE SISSON MARBLE CO. Mr. ASHLEY. Mr. Chairman and gentlemen, I represent the Sisson Marble Co. and the sentiment of 10 others from whom we have heard, in a quick correspondence on the subject, in regard to the tariff on marble, which is covered in paragraphs 111, 112, and 114. The present assessment of block marble, taking that as a basis, is 65 cents a cubic foot. The average cost of quarrying marble in this country ranges from 40 to 60 cents a cubic foot. The average cost, using as a basis the white marble, the Carrara marble, on board ship, is $3.10 per cubic foot. PARAGRAPHS 111-112-MARBLE. It is not only that it is excessive when compared to the cost of marble in this country, but the range of the duties on sawed material is inequitable. For instance, if you take a block of marble and saw it into slabs, say three-quarters to an inch thick, it costs you 60 cents a cubic foot for the service. You can obtain from 10 to 11 slabs. It makes the cost in this country for slabs 1 inch thick 37 cents per superficial foot. You can buy those same slabs in Italy and the exporter will be paid at 12 or 18 cents on board ship. I put it in my statement here 10 pence, which is 20 cents, and with the prevailing duties at 8 cents and the ocean freight at 3 cents, it amounts to 31 cents, against the cost in this country of 37 cents. I want to say, simply as a matter of revenue, if the duties are kept on block marble the duties on the sawed material should be rearranged at least to make it possible that a manufactory or mill in this country can produce from a block of marble, which is the raw material, at a cost not exceeding that at which it can be imported. Under one of these schedules, there is no provision made for an article that is largely imported. We call it granito. It is being assessed at present under paragraph 480. They have tried numerous ways of having it admitted under the classification of waste at 10 per cent, but under paragraph 480 it has a duty of 20 per cent. This granito costs on board steamer on the other side one-fifth of 1 cent per pound, or $4 a ton of 2,000 pounds. The freight on that is $4. That is $8, which is the cost to land it exclusive of duties. It is sold in this country from $9.50 to $10, the cost not exceeding $5, manufactured on this side. Under the same classifications you are admitting granite, sandstone, limestone, and other material of that character on a basis of 10 cents a cubic foot. Why should this discrimination be made against marble? There is a large percentage of limestone, Italian and French, that is now known to the architectural trade and to the trade generally as monotone marbles, which is being used for decorative purposes-limestone 10 cents, granite 10 cents, sandstone 10 cents, marble 65 cents. It is easily explainable how duties on marble was arrived at 65 cents. Speaking for the manufacturers, and I have known them for the last 30 years, who have been accustomed to bear this burden, if this duty is retained at 65 cents we desire to ask your committee to at least readjust the duties on the sawed material so that we can produce them in this country at a cost not exceeding that at which it can be imported. The CHAIRMAN. Are there any questions? That is all. BALTIMORE, MD., January 4, 1912. Washington, D. C. To the honorable COMMITTEE ON WAYS AND MEANS, GENTLEMEN: PARAGRAPHS 111-112-MARBLE. This classification of rates discriminates in favor of slabs sawed abroad, thus: Average cost of Italian white ordinary marble in this country, duties and freight paid, is $3.10 per cubic foot. Cost of sawing in this country, 60 cents per cubic foot. Ten slabs of 1 inch thickness can be produced to the cubic foot, making the cost of 1-inch slabs produced in this country 37 cents per superficial foot. Slabs not exceeding 1 inch thick can be purchased cost of 10d., say. Prevailing duties.. Ocean freight.... abroad f. o. b. steamer at per superficial foot.. - per superficial foot.. $0.20 .08 .03 .31 A differential of approximately 20 per cent in favor of imported slabs not exceeding 1 inch thick. The differential in favor of imported slabs over 1-inch and not exceeding 13 inches is approximately 15 per cent. We claim that if the present rate is continued on blocks, the schedule on slabs should be increased to equalize costs. Other than a source of revenue there is no logical reason for duty on marble in block form (which is raw material), for the reason that the average cost of quarrying marble in this country is approximately 50 cents to 60 cents per cubic foot. The average cost of Italian ordinary white blocks, f. o. b. steamer abroad, is $2 per cubic foot; ocean freight, 45 cents per cubic foot. Paragraph 111 should be amended to include breccia, which is not provided for in existing classification, excepting wholly or partly manufactured. The existing schedules admit freestone, granite, sandstone, and limestone, unmanufactured or not dressed, hewn, or polished, at 10 cents per cubic foot. Does any reason exist why marble blocks should be made to pay a duty six and onehalf times as high as that assessed against limestone, granite, etc.? It is, however, easily explainable in that limestone, granite, sandstone, and freestone are not quarried in Vermont, from which influence the present rate on block marble was assessed to provide a needless protection for a material that cost less to quarry than the duty assessed. If block marble abroad were given away and ocean freight free, then the prevailing duties still represent an excess of the cost of quarrying in this country. Granito, which is imported largely, is not provided for under the existing tariff law, but is assessed at 20 per cent ad valorem under paragraph 480. This material, made from spalls of white ordinary Italian marble, can be purchased abroad at lit. 2.40 per 100 kilos f. o. b. steamer, say one-fifth of 1 cent per pound, or say $4 per ton of 2,000 pounds. Freight on same, say $4 per ton, as against a net cost of $5 per ton when produced in this country. We suggest this article be admitted free of duty. Placquettes or mosaic cubes of white ordinary Italian can be purchased abroad for lit. 12 per 100 kilos, say 1 cent per pound, or $20 per ton of 2,000 pounds f. o. b. steamer. The demand for it has decreased gradually for past decade, largely because of excessive duties, which are substantially 45 per cent, and should be reasonably reduced. We suggest that paragraphs 111, 112, 114 be revised to read: "Marble, breccia, onyx, freestone, granite, sandstone, limestone, and all other monumental or building marble and stone, in block, rough or squared only, unmanufactured, or not dressed, hewn, sawed, or polished, ten cents per cubic foot; marble, breccia, and onyx sawed over two inches in thickness seventy-five cents per cubic foot; slabs or paving tile of marble, containing not less than four superficial inches, if not more than one inch in thickness, eight cents per superficial foot; if more than one inch and not more than one and one-half inches in thickness, ten cents per superficial foot; if more than one and one-half inches and not more than two inches in thickness, fifteen cents per superficial foot; if rubbed in whole or in part, three cents per superficial foot in addition; mosaic cubes of marble not exceeding two inches in size, if loose, twenty per centum ad valorem; if attached to paper or other material, thirty-five per centum ad valorem. 66 Marble, breccia, onyx, alabaster, limestone, and jet wholly or partly manufactured into monuments, benches, vases, architectural designs, and other articles or of which these substances or either of them is the component material of chief value, and all articles composed wholly or in chief value of agate, rock crystal, or other semiprecious stones, except such as are cut into shapes and forms fitting them expressly for use in PARAGRAPHS 111-112-MARBLE. the construction of jewelry, not specially provided for in this section, fifty per centum ad valorem." DEAR SIR: We beg to advise you that we certainly favor a reduction in the tariff on imported marble and feel that block marble should come in free of duty as the cost of producing domestic material does not amount to as much as the duty per cubic foot. There is several million dollars invested in manufacturing plants that their existence depends on the use of imported marble as the producers of domestic material make the price so that we can not buy their stock and compete against them, which we are compelled to do. The duty imposed places the foreign product in the hands of a few wealthy importers and bars the smaller manufacturer in this country from purchasing his material direct from the producer on the other side, and we have always noticed the large importers who have representatives in this country oppose the reduction in duty, as the imposing of a duty enabled them to control the situation here and charge us such profit as they see fit. We certainly hope the Ways and Means Committee will assist the manufacturers of this country to break up any combination that may exist by taking off all duty and let us have free raw material. Yours, truly, PEORIA STONE & MARBLE WORKS, Per H. A. FARLEY. STANDARD MARBLE WORKS, Mr. GEO. W. ASHLEY, Care of Sisson Marble Co., Baltimore, Md. DEAR SIR: I have your letter of the 14th instant and note the contents. I certainly think that some concerted action should be taken to bring to the attention of the Ways and Means Committee the schedule of tariff now levied on marble, as being excessive and inconsistent. They should be told emphatically that the present duty is excessive and inconsistent. I am heartily in favor of having the duty on block marble taken off entirely. If any duty is placed on marble, let it be on slabs and finished stock and on finished stock in particular. I understand that finished marble when intended for church purposes is brought in free, and this should be called to the attention of the Ways and Means Committee and a heavy duty placed on marble of this character. I am ready to act with you, and if you will advise me what I can do to bring the matter in a proper way to the attention of the Ways and Means Committee, I will be glad to act promptly. Yours, very truly, JOHN M. MUELLER, Jr. SISSON MARBLE Co., Baltimore, Md. HENRY MARBLE Co., GENTLEMEN: Replying to your inquiry regarding our views on the subject of tariff on marble would state that we are strongly in favor of a reduction in the tariff, and can not see how we can successfully compete with some other materials that are thrown on the market at the present time, unless tariff is reduced considerably on imported marbles. Hope your committee will be successful in influencing this reduction at an early date. Yours, very truly, HENRY MARBLE CO., Per H. K. TOWNSEND. Mr. G. W. ASHLEY, PARAGRAPHS 111-112-MARBLE. FEENEY & DEVANNY Co., New York City, N. Y., December 16, 1912. Care of the Sisson Marble Co., Baltimore, Md. DEAR SIR: We acknowledge receipt of your letter of the 14th instant regarding the tariff on marble. We heartily agree with your views and presume that you have some plan in mind and in going over the matter we take this occasion of a hearty cooperation and when your plans are formulated we would appreciate the opportunity to participate in them. Very truly, yours, SISSON MARBLE Co., Baltimore, Md. FEENEY & DEVANNY Co. N. O. NELSON MARBLE Co., Edwardsville, Ill., December 16, 1912. GENTLEMEN: We have your favor of the 14th, addressed to the Illinois Marble Co., whose successors we are. We agree with you that the present tariff on imported marble is excessive, and we would have no objection to joining in with other marble dealers in getting the tariff reduced. In fact, it seems to us that when the Democrats get to work on the tariff there will not be much trouble in getting them to cut this item, as well as many others. We are with you in this movement and will be glad to join forces with you and others when the proper time comes. Yours, truly, GEO. W. ASHLEY, N. O. NELSON MARBLE Co., THE CHAS. MCDONALD MARBLE CO. (INC.), Care of Sisson Marble Co., Baltimore, Md. DEAR SIR: We are in receipt of yours of the 14th and think some concerted action should be taken regarding the marble tariff. The board of directors of the National Association of Marble Dealers had a meeting here Thursday and those not interested in native quarries thought it was all right. Mr. Farley said that he was going on to Washington, and that he had had several talks with Mr. Champ Clark regarding the matter. Kindly keep the writer advised regarding the situation. SISSON MARBLE Co., THE CHAS. MCDONALD MARBLE CO., Per WINSLOW. JACOBY & SON Co., Keystone Marble Works, Philadelphia, December 14, 1912. West Twenty-third Street and Baltimore & Ohio Railroad, Baltimore, Md. GENTLEMEN: Replying to yours of 13th, would say that we agree with you that something should be done to reduce tariff on marble and will be glad to do our share in the matter. GENTLEMEN: We have received your favor regarding the new schedule of ocean freight rates and tariff, etc., which may come up before the Committee on Ways and Means, said rates and tariff discriminating apparently in favor of the domestic marble combinations. We certainly are willing to aid in the revision of said tariff, if advised. Respectfully, yours, H. MARQUARDT MARBLE & GRANITE Co., Per H. M. |