PARAGRAPH 3-COMPOUNDS N. S. P. F.

of fertilizers for the year 1910 were, according to the 1910 United States census advance reports, 3,761,972 tons, a large percentage of which was in the form of nitrogen. The demand for nitrates from the Northeastern States and Pacific coast is also on the increase, and the consumption in the entire United States will undoubtedly continue to increase steadily as the yield for each acre of cultivated land in the United States, on the average, is only about one-half of the yield obtained from most European soils of equal quality. Consequently it is absolutely essential to secure fertilizer materials to be applied to the agricultural lands in the United States. The sources of supply in the United States are mainly from the waste substances of the slaughterhouses, such as dried blood and tankage, which, naturally, are limited.

Nitrate of ammonia contains 35 per cent nitrogen and represents the most concentrated form of nitrogen as a nitrate. This material, on account of its highly concentrated form, will be a great benefit to the American farmers and consumers.

The Norwegian Hydro-Electric Nitrogen Co. (Ltd.) can manufacture nitrate of ammonia to compete with nitrate of soda and other ammoniates, if it is admitted free of duty. It is being used abroad in an experimental way, and the company informs us that they are prepared to manufacture 60,000 tons, of which 30,000 tons can be available for export to this side.

We commend this to the attention of your honorable committee, and we feel that the benefits to be gained by the American farmer by the use of this article can not be overestimated.

Yours, faithfully,

C. TENNANT SONS & Co. OF NEW YORK.
E. O. LEMON, Vice President.

100 WILLIAM STREET, New York, January 29, 1913. House of Representatives, Washington, D. C. Subject: Nitrate of ammonia, which we think should now be placed upon the free list in the interest of the American agriculturalist.

Honorable COMMITTEE ON WAYS AND MEANS,

DEAR SIRS: We desire to supplement our brief of January 16 on this subject. Nitrogen, phosphoric acid, and potash are the constituents most likely to be deficient in soils or most quickly exhausted by the production and removal of crops. They are known as essential fertilizing constituents, and a value of commercial fertilizer is determined almost exclusively by the amount of form of the nitrogen, phosphoric acid, and potash which it contains.

The Farmers' Bulletin, No. 44, page 12, United States Department of Agriculture, says about nitrogen, "Nitrogen is the most expensive of the three essential fertilizing elements. It exists in fertilizers in three distinct forms, viz, as an organic matter, as ammonia, and as nitrate."

(1) Organic nitrogen.-The most abundant supply of nitrogen occurs in organic forms, and the most available source of organic nitrogen, from the standpoint of uniformity in composition, richness in the constituents, and availability are dried blood, dried meat, and concentrated tankage, which are produced in large quantities in slaughterhouses; also dried fish, refuse from fish oil and fishcanning establishments; also the residue of cotton seed after the oil has been extracted.

(2) Nitrogen as ammonia.-Nitrogen of ammonia exists in commercial products in the form of sulphate of ammonia; it is more readily available than nitrogen in organic forms. Ammonia nitrogen is derived to-day almost exclusively from sulphate of ammonia, the commercial product of which contains about 20 per cent of nitrogen; this form of nitrogen is readily converted in the soil into nitrate.

(3) Nitrogen as nitrate.-Nitrogen as nitrate exists in commercial products to-day in the form of nitrate of soda, nitrate of potash, and nitrate of lime. These, like the ammonia compounds, are extremely soluble, and the nitrate contained in them is readily available as food for plants. The nitrogen in this form is directly and immediately available, no further change being necessary. The main source of nitrate nitrogen is nitrate of soda; this Chile saltpeter contains 15.5 per cent nitrogen.

PARAGRAPH 4-HYDRATE OF ALUMINA.

Nitrate of lime has been placed on the market the last few years. It contains 13 per cent nitrogen, and is produced from synthetic nitric acid and limestone. The development of the synthetic nitric acid and ammonia industry has made it possible to manufacture nitrate of ammonia at a price low enough to permit its use in Europe, and it could also become available to the American farmer in the United States in competition with Chile saltpeter if put upon the free list. The consumption of fertilizers in the Southern States was in 1911 approximately 4,250,000 tons, containing about 106,000 tons of nitrogen. For 1910 the consumption, according to the 1910 United States Census Advance Report, was 3,761,972 tons. The demand for nitrogen has been increasing very rapidly over the entire United States and must continue to gain as the demand for fertilizers increases; for example, the consumption of sulphate of ammonia in the United States in the year 1900 was 36,011 tons, and for 1911, 230,743 tons. It is also a fact that the importation of nitrate of soda from Chile shows an enormous increase over the corresponding period.

One of the greatest problems to be solved in the United States is how to increase the yield per acre of cultivated land under the various crops. To illustrate:

England obtains a little more per acre than Germany. The difference in the output between the United States and European countries lies in the lavish use of fertilizers in Europe. All of the different kinds of fertilizers are now on the free list-nitrate of soda, nitrate of lime, sulphate of ammonia, tankage, fish scraps, etc.—and we now respectfully petition that nitrate of ammonia be placed upon the free list, where, in all fairness, it seems to belong.

As shown by the foregoing, the economic production of nitrate of ammonia is of recent origin; the new industry has come into existence since the last tariff act. Nitrate of ammonia has been imported into the United States in limited quantities for the explosive industry. The argument here is exactly the same as with nitrate of soda now imported from Chile which enters into the fertilizer industries and is on the free list.

Yours, truly,

PARAGRAPH 4.

C. TENNANT SONS & Co. oF NEW YORK.
WM. J. DIPPEL, Secretary.

Alumina, hydrate of, or refined bauxite, containing not more than sixtyfour per centum of alumina, four-tenths of one cent per pound; containing more than sixty-four per centum of alumina, six-tenths of one cent per pound. Alum, alum cake, patent alum, sulphate of alumina, and aluminous cake, containing not more than fifteen per centum of alumina and more than three-tenths of one per centum of iron oxide, one-fourth of one cent per pound; alum, alum cake, patent alum, sulphate of alumina, and aluminous cake, containing more than fifteen per centum of alumina, or not more than threetenths of one per centum of iron oxide, three-eighths of one cent per pound.

HYDRATE OF ALUMINA.

STATEMENT OF AUSTIN M. PURVES,

REPRESENTING THE

PENNSYLVANIA SALT MANUFACTURING CO.

Mr. PURVES. I have the honor to represent before you, gentlemen, the Pennsylvania Salt Manufacturing Co., in whose behalf I request your attention in connection with the proposed reduction of the duty

on

Mr. HARRISON (interposing). Please give your name.

Mr. PURVES. A. M. Purves.

Mr. LONGWORTH. To what paragraph are you referring?

PARAGRAPH 4-HYDRATE OF ALUMINA.

Mr. PURVES. Paragraph 4.

The duty proposed under the act known as House bill No. 20182 is fixed at 15 per cent ad valorem. This duty we beg to submit is not sufficient to compensate for the difference in cost of manufacture between the United States and foreign countries and this principally on account of the element of labor entering into the proposition. The average of labor in Germany and England is a dollar per day, as compared with an average rate of $2.25 a day in this country. As the item of labor in the manufacture of alumina approximates 40 per cent of the total cost, it is seen at a glance that the proposed duty does not compensate for this one single element of cost.

The duty now current under the Payne bill of four-tenths of a cent per pound on hydrate of alumina containing not more than 64 per cent of alumina, and six-tenths of a cent per pound when it contains more than 64 per cent alumina, amounts to only 25 per cent ad valorem, and is insufficient to maintain the current rate of wages on this side. The industry has been made possible of maintenance in the United States through the large demand abroad for alumina products; but this has been met by increased production in England, Germany, and France, with the result that longing eyes are now being cast upon the great markets of the United States, made so attractive by the low rate of duty prevailing under our present tariff law. This important industry, now aggregating a production of 100,000 tons per annum, demands, we believe, careful consideration in connection with the economic measure now before your honorable committee, and we beg to request your favorable attitude as applied to the current rates of duty, to wit, four-tenths of a cent per pound on hydrate and six-tenths of a cent on calcined as necessary to the integrity of the alumina industry in the United States.

Hon. OSCAR W. UNDERWOOD,

WASHINGTON, D. C., January 2, 1913.

Chairman Committee on Ways and Means, Washington, D. C.

DEAR SIR: I have the honor to represent before you the Pennsylvania Salt Manufacturing Co., in whose behalf I respectfully request your attention in connection with the proposed reduction of duty on hydrate of alumina, etc.

The duty proposed under the act known as House bill 20182 is fixed at 15 per cent ad valorem. This duty we beg to submit is not sufficient to compensate for the difference in cost of manufacture between the United States and foreign countries, and this principally on account of the element of labor entering into the proposition. The average of wages in England and Germany is $1 per day, as compared with an average rate of $2.25 per day in this country. As the item of labor in the manufacture of alumina approximates 40 per cent of the total cost, it is seen at a glance that the proposed duty does not compensate for this one single element of cost.

The duty now current under the Payne bill of four-tenths cent per pound on hydrate of alumina containing not more than 64 per cent of alumina and six-tenths cent per pound when it contains more than 64 per cent alumina amounts to only 25 per cent ad valorem and is insufficient to maintain the current rate of wages on this side. The industry has been made possible of maintenance in the United States through the large demand abroad for alumina products, but this has been met by increased production in England, Germany, and France, with the result that longing eyes are now being cast upon the great markets of the United States made so attractive by the low rate of duty prevailing under our present tariff law.

This important industry now aggregating a production of 100,000 tons per annum demands, we believe, careful consideration, in connection with the economic measure now before your honorable committee, and we beg to request your favorable attitude as applied to the current rates of duty, to-wit, four-tenths cent per pound on hydrate

PARAGRAPH 4-HYDRATE OF ALUMINA.

and six-tenths cent on calcined, as necessary to the integrity of the alumina industry in the United States.

We have the honor to be, very respectfully,

PENNSYLVANIA SALT MANUFACTURING Co.
AUSTIN M. PURVES, Vice President.

BRIEF SUBMITTED BY THE MERRIMAC CHEMICAL CO., BOSTON, MASS.

Hon. OSCAR W. UNDERWOOD,

JANUARY, 1, 1913.

Chairman Ways and Means Committee, Washington, D. C.

DEAR SIR: On behalf of the Merrimac Chemical Co., I beg to submit the following brief for the consideration of your committee in connection with its investigations regarding tariff:

HYDRATE OF ALUMINA, ETC.

Paragraph 4 of the act of 1909 provides as follows:

'Alumina, hydrate of, or refined bauxite, containing not more than sixty-four per centum of alumina, four-tenths of one cent per pound; containing more than sixty-four per centum of alumina, six-tenths of one cent per pound. Alum, alum cake, patent alum, sulphate of alumina, and aluminous cake, containing not more than fifteen per centum of alumina and more than three-tenths of one per centum of iron oxide, one-fourth of one cent per pound; alum, alum cake, patent alum, sulphate of alumina, and aluminous cake, containing more than fifteen per centum of alumina, or not more than three-tenths of one per centum of iron oxide, three-eighths of one cent per pound."

The rates and the classifications as provided in the above paragraph we believe should be maintained.

Hydrate of alumina is produced from bauxite. It is essentially refined bauxite in that, if the impurities are removed from the crude bauxite, hydrate of alumina is the resultant product. It was originally entered into this country free of duty under the head of "refined bauxite," but it was subsequently made dutiable.

Hydrate of alumina contains commercially about 64 per cent of alumina and about 36 per cent of water and is used for two distinct purposes: (1) For the production of salts of alumina by dissolving it in acids; and (2) for the production of aluminum. When it is used to produce salts of alumina, the water content is not objectionable, but, when used for the production of aluminum, it is necessary that it should first be calcined in order to drive off the water. As hydrate of alumina may or may not contain water, according as it is to be used, the distinction for the purpose of assessing a duty is drawn at 64 per cent alumina content.

The experience of the Merrimac Chemical Co. has been somewhat as follows:

In 1894 we secured from Russia, at much trouble and expense, a process for the manufacture of hydrate of alumina. In the following year we erected a plant and started operation; but shortly thereafter a duty of $1 a ton was placed upon bauxite, with the result that our profits from the manufacture of hydrate of alumina were so reduced that we were unable to enlarge our plant in any way whatsoever.

PARAGRAPH 4-HYDRATE OF ALUMINA.

If the duty on hydrate of alumina is to be reduced, as contemplated in the bill drafted last year and known as "H. R. 20182," it will be impossible for our manufacturers to compete with those manufacturing abroad.

SULPHATE OF ALUMINA, ALUM, ETC.

The distinction in the amount of iron oxide content, in regard to alum, etc., is made for the purposes of separating the high-cost from the low-cost alums. Alums containing more than per cent of iron oxide are presumably made by dissolving bauxite in acid and are cheaper than those containing less than per cent of iron oxide, which are presumably made from hydrate of alumina. The further distinction in regard to the alumina content in the alums is made for the following reasons: It is possible to concentrate the low-grade alums by driving off all the water and thereby greatly enhance the value. In other words, the low-grade alums, irrespective of the ironoxide content, may be greatly er hanced by concentration, and, on the other hand, those alums with a low percentage of iron oxide are more valuable than those with a high percentage of iron oxide, irrespective of concentration.

For these reasons we believe that the classifications as set forth in paragraph 4 of the present tariff act are advisable and should be maintained.

Alum, alum cake, sulphate of alumina, etc., from 1898 until August 5, 1909, carried a specific duty of one-half cent per pound. During this period the importations were only approximately 2,500,000 pounds, with an annual revenue of from $10,000 to $13,000. By the provisions of the tariff act of 1909 the duty was changed, so that alum, alum cake, etc., containing not more than 15 per cent of alumina and more than per cent of iron oxide, carried a duty of onefourth cent per pound; while alum, alum cake, etc., containing more than 15 per cent of alumina, or not more than per cent of iron oxide, carry a duty of three-eighths cent per pound. The imports for 1911 show an increase of approximately 1,250,000 pounds, or in excess of 50 per cent.

This increase in importation would undoubtedly have been much larger but for the conditions existing in the industry in this country. For the past five or six years competition has been so active in these various grades of alum that the prices have been reduced to a point where there is not only no profit but an actual loss to the factories which are not most favorably located; and, while business can be carried on in this way for a number of years by strong concerns, it is not likely to be continued indefinitely. Eventually, the natural laws must control, and the manufacturers will either abandon or restrict their output until business shows a normal profit. With the duty as at present any increase in price would undoubtedly enormously increase the proportion of importations. This increase of importations is not going to affect manufacturers of the country equitably, owing to the fact that the value of alum cake is so low that the cost of transportation or freight rates form an effectual protection for the manufacturer located in the interior of the country. If the tariff is fixed at a rate purposely intended to stimulate importations of the