Mr. CLARK. I am not governed by the Wilson bill, as sure as you live.

Mr. RANDELL. Did not this organization of yours cut off competition?

Mr. SHEPHERD. No, sir; there were 46 kilns besides ours.

Mr. RANDELL. How many did you buy?

Mr. SHEPHERD. We acquired 82. There are probably 150 others Different parties own kilns.

now.

Mr. RANDELL. Do you agree that after the organization of that company the price went up about 33 per cent?

Mr. SHEPHERD. No; I do not agree the price went up.

Mr. RANDELL. Then Mr. Perry, the gentleman who preceded you, in effect says you are mistaken.

Mr. SHEPHERD. He qualified it by saying from that time up to the present time.

Mr. GRIGGS. He said that while you were present. He is in your company now, is he not?

Mr. SHEPHERD. He is general manager. He owns just a small amount of stock, just as he said. He was not connected with us then at all. In fact, we were in very severe competition. He was established in New York and had been for quite a number of years handling his own products-he and his two brothers and their father and they had a very large percentage of the New York trade. He was handling it very successfully, and we felt if we could acquire his property and secure his services to take charge of the New York market it would be a wise thing to do. He took charge of the New York market for us and made good, and about a year ago he was made general manager of the company.

EXHIBIT A.

NOVEMBER 20, 1908.

Scale of wages paid by Rockland-Rockport Lime Company.

H. L. SHEPHERD, Esq., Rockport, Me. SIR Replying to your inquiry of the 15th instant relative to the amount of lime imported into this district during the fiscal year ending June 30, 1908, I will state that our statistical returns show the amount to be 2,911,240 pounds, approximately 13,233 barrels.

Respectfully,

W. F. JENIS, Special Deputy Collector.

EXHIBIT C.

UNITED STATES CUSTOMS SERVICE,

OFFICE OF THE COLLECTOR, Port of Bangor, Me., August 18, 1908.

Mr. H. L. SHEPHERD, Rockland, Me. SIR Replying to yours of the 15th instant would inform you that 4,063,700 pounds of lime were imported into this customs district during the year ending June 30, 1908.

SIR: In response to your request of the 10th instant you are informed that the imports of lime from Canada into customs districts of Maine during the fiscal year 1908 were 7,050,940 pounds; value, $18,391. All of this lime was reported from the customs districts of Aroostook and Bangor.

Very truly,

J. N. WHITNEY, Acting Chief of Bureau.

STATEMENT OF MR. EDWARD CARY, OF NEW YORK CITY, N. Y.

Mr. CARY. Mr. Chairman and gentlemen, if you will allow me, as this is a new subject, I should like to give you a brief résumé of the carbon situation to-day from an importer's standpoint and that of the consumers of this country. It only consists of four pages of typewritten matter.

Mr. DALZELL. Is this paragraph 97?

The CHAIRMAN. Paragraph 98.

Mr. CARY. This has to do with both paragraphs 97 and 98. Mr. Chairman, as we often import articles of carbon, as well as carbon for electric lighting, specially provided for in paragraph 98.

We are importers of carbon sticks for electric lighting. As the committee is no doubt aware there has been considerable litigation in regard to these articles, not only under the present act, but under the act of 1894. In the former act they were first assessed at 30 per cent ad valorem under paragraph 86, but were held by the circuit court of appeals to be properly dutiable at 20 per cent ad valorem as unenumerated articles. One of the reasons given by the court for excluding them from paragraph 86 was that they were not susceptible of decoration. In the present act a special provision was put in to cover them at the specific rate of 90 cents a hundred, and this provision has been held by the United States Supreme Court to cover not only the regular lengths (12 inches), but also double lengths by similitude.

While the notes on tariff hearings which you have before you give the ad valorem equivalent of this specific rate as 46.79 per cent, we desire to point out that this is entirely misleading, owing to the fact that it is based on the total number of sticks imported and the total value of those sticks, the assumption being that they are all of the same value. As a matter of fact, carbons for electric lighting vary

greatly in price according to their size and the particular lamp for which they are designed. For instance, a carbon for electric lighting to be used in a searchlight is worth on the other side as high as $23 per hundred, on which the duty would be equal less than 4 per cent ad valorem, while a carbon for electric lighting designed to be used in a small arc lamp is worth on the other side about 13 cents per hundred, on which the duty would equal nearly 700 per cent ad valorem; yet both of these articles under the present tariff pay a duty of 90 cents per hundred. Both of these classes are imported by us. The largest quantity imported are those for the inclosed arc lamp (the kind you have in all the streets of Washington, and all the stores where they use arc lamps for lighting). The average price for a single length carbon of this kind is about 60 cents per hundred, on which the duty would be equivalent to about 150 per cent. We ourselves import nine classes of carbons, all of which pay 90 cents per hundred, and we append hereto a table showing relative quantities of each class imported by us during the past year and the ad valorem equivalent of the 90 cents per hundred rate. On all of these classes, with the exception of the first and last (A and I), we have been compelled, in order to escape the prohibitive rate, to import them in double lengths, and under the head of "Per cent ad valorem basis" in the appended table we therefore give the ad valorem equivalent of 90 cents per hundred based on the double length, which, as will be seen, runs from 41.4 per cent to 297.9 per cent. Those are based on actual importations. In the last column of this table we have given the ad valorem equivalent of these carbons if imported in single lengths, from which it appears that it runs from 102.5 per cent to 744.7 per cent. The ad valorem on class C, of which we import the greatest quantities, is 158.5 per cent, while class B, the next largest in quantity imported by us, is 102.5 per cent. Our factory is unable to produce classes A and I in double lengths, and we have had to import these in single lengths, on which we pay a duty equivalent to 23 per cent and 321.4 per cent ad valorem, respectively. Of these two classes, A is one of the most expensive types in use, being used for flame are lamps (those are the big sunbursts that you see on the streets), while class I is one of the lowest-priced carbons made on the Continent, but has not been made in this country.

It will be noted that the ad valorem rate for the single-length carbon is more than double the ad valorem rate for the double carbon. This is owing to the fact that a carbon stick 24 inches long is worth considerably more than two carbon sticks of 12 inches in length, for the reason that it is difficult to manufacture the longer lengths without warping and breakage.

The total number of carbons, as noted in the table, is 707,335. All but 25,000 of these, however, were double lengths, so that the number stated represents a total of single-length carbons of 1,389,670.

We also desire to call your attention to the fact that at a period of two years ago many more of the expensive carbons were, proportionately, imported in single lengths than are imported to-day. This is another reason showing that the estimated percentage of 46.79 per cent is misleading, since these expensive carbons reduced the average ad valorem rate.

It is obvious, therefore, from the foregoing statement and the appended table that the specific rate of 90 cents a hundred is absolutely prohibitory unless we resort to the practice of having the sticks made in double lengths, and that even then the rate on those of which we import most (class C), being equivalent to 63.4 per cent, represents a much higher duty than was intended to be placed upon these articles in view of the 35 per cent rate in paragraph 97 on other articles of carbon. It is further apparent that any provision fixing a specific rate based on number of pieces which will take in all classes of carbons for electric lighting is wholly inequitable, and we therefore respectfully suggest that in the proposed tariff either an ad valorem rate be fixed or a specific rate based on some other factor than numbers of pieces. We call the attention of the committee to the fact that with the proposed change of paragraph 97 to cover articles whether deemed susceptible of decoration or not, carbons for electric lighting would be provided for under the provision for "articles of carbon, and we believe there is no good reason why these carbons should not pay the same duty as other articles of carbon. Such articles at present pay an ad valorem duty of 35 per cent, and we request that whatever duty may be put upon such goods the same ad valorem duty may be applied to carbons for electric lighting. In view of the understanding that reduction is to be made in the rates of the present tariff act, we ask that the goods be not required to pay a duty of more than 25 per cent ad valorem.

If a specific rate be desired, we suggest that a very equitable rate can be made based on the weight, owing to the fact that the process of manufacture is principally mechanical and the cost of production is therefore almost entirely dependent on the amount of material in the article. In fact, the cost is so regulated abroad. Upon the standard carbons which are principally in use in this country a specific rate of 14 cents per pound is equal to an ad valorem rate of 25 per cent, and on the more expensive carbons and the cheaper carbons this rate adjusts itself equitably to the Government, importer, and the consumer. Those are the ones that are used in all your street lamps all over the country and in all your large stores for indoor lighting, the carbons having a specific rate of 14 cents a pound.

Mr. GRIGGS. Is it worth 6 cents a pound, or is it worth 7 cents? Mr. CARY. It would be about 5 cents a pound; and on the more expensive carbons and the cheaper carbons this rate adjusts itself equitably to the Government and to the consumer.

The cost of manufacture of all carbons abroad is based on the cubic mass. The lamps of a country control the type of carbons-the lamps that are in use. Those that we use for general purposes of illumination require uniform carbons. They are the ones that, both in this country and abroad, are made more than the others; and a duty based upon the weight, upon a certain specific basis or an ad valorem basis, or a specific rate giving a definite ad valorem basis on a carbon that may constitute 85 per cent of the total consumption of the country-those that are more expensive one way and those that are cheaper the other-adjusts itself the same as it does in the process of manufacture. The absolute table-I have given the limits of it is attached here, but I do not think it would be of any special

interest to be read.

A.

B.

C.

D.

E.

F.

(The table submitted by Mr. Cary is as follows:)

G

H. T

Total.

707,335 as imported equals 1,389,670 in normal lengths for use in arc lamps.

Mr. UNDERWOOD. Mr. Cary, how much of the volume of these electric-light carbons is consumed in this country?

Mr. CARY. To the best of my knowledge, in the neighborhood of 200,000,000.

Mr. UNDERWOOD. Two hundred million pieces?

Mr. CARY. Two hundred million pieces.

Mr. UNDERWOOD. What does the importation amount to?

Mr. CARY. About 10 per cent of that amount.

Mr. UNDERWOOD. About 10 per cent of the total consumption is importations?

Mr. CARY. To the best of my knowledge.

Mr. UNDERWOOD. Are these carbons manufactured by hand or by machinery?

Mr. CARY. Practically entirely mechanically.

Mr. UNDERWOOD. Does the labor cost enter much into the cost of the carbon?

Mr. CARY. From my knowledge of carbon work, I should say to the extent of from 15 to 20 per cent-nearer 15 than 20-but 20 would be the maximum, including all handling.

Mr. UNDERWOOD. Of the labor cost?

Mr. CARY. Of the labor cost; yes, sir.

Mr. UNDERWOOD. How much does it cost you to import these in freight rates? What is the freight that it costs you to carry them across the ocean?

Mr. CARY. The rate from the factory in France or in Germany, depending on whether they come in carloads or less than carloads, would average from 45 to 55 cents for actual transportation, land haul and ocean freight.

Mr. UNDERWOOD. Forty-five to 55 cents per hundred pounds?
Mr. CARY. Per hundred pounds; yes, sir.

Mr. UNDERWOOD. And you have to pay that in addition to the duty before they come in competition with the home product?

Mr. CARY. We do; yes, sir.

Mr. UNDERWOOD. That makes the duty and the freight something like $1.35 a hundred?