PARAGRAPH 580-GREASES AND OILS. Mr. GULICK. That is a hard question to answer. I am speaking particularly of fish oil, which ranges very much in price, that is, from menhaden oil up to refined cod oil or refined whale oil. Mr. HARRISON. That was why it was decided to stick to an ad valorem duty. If you will give us the specific names of the oils which are not now provided for by name we might be able to accede to your request, but it would not be safe to put a specific duty into the catch-all clause, because you can not tell how it is going to work out as to the bulk of the articles. Mr. GULICK. Would not the words "all sulphonated, soluble, or emulsifiable oils and greases," etc., cover it? I would be willing, and I think it might solve the situation, to substitute the words "soluble or emulsifiable fish oils," and we can let the term "fish" include such oils as whale oil, although the whale is really a mammal and not a fish, and cod oil which is usually not classed in the same class as fish oil. The point I am making is this: That we want a duty of 8 cents per gallon on sulphonated oils which would be commensurate with the duty on those now taxed under paragraph 40. I think we are entitled to that. As I say, we are not against free trade, but we want free trade on this whole proposition. Moreover, as I said before, it would simplify the appraisement, as it is very difficult to recognize the fundamental raw oils in a sulphonated oil except by very careful chemical analysis, and then we have very grave doubts whether it can be successfully done, for the simple reason that there are chemical changes by which it is made difficult to recognize the oil; its general characteristics are recognizable, it could be recognized as fish oil, but not as a specific fish oil. Paragraph 32 of the tariff act of 1909 provides in part― and all soluble greases used in processes of softening, dyeing, or finishing, not specially provided for in this section, thirty per centum ad valorem. H. R. 20182, paragraph 50, provides in part- and all soluble greases used in processes of softening, dyeing, or finishing, not specially provided for in this act or in the first section of the act cited for amendment, fifteen per centum ad valorem. We beg to submit that both these paragraphs are not sufficiently clear, nor are they complete enough to cover the situation to the full intent of the law. We suggest that the wording be changed to read "All soluble or emulsifiable oils and greases." The words "soluble" and "emulsifiable" are often incorrectly used interchangeably. Some alizarin assistants that are covered by these paragraphs and coming in as "soluble" are in reality emulsifiable. A solution is obtained when the commodity dissolves in water, giving a clear liquid. Sugar in water is a concrete example. An emulsion is obtained when the commodity is suspended in water giving an opaque liquid. Milk is a concrete example of an emulsion. Both soluble and emulsifiable alizarin assistants are required by the trade, and the law should specifically state "soluble and emulsifiable." The difference between oils and greases is principally one of temperature. Fats that are oils at high temperatures are greases at low temperatures and vice versa. The wording of the law should therefore include "greases and oils." PARAGRAPH 581-BASIC SLAG. We also concur heartily in the requests made by several of our esteemed competitors in regard to having the duties on oils of this class commensurate with the duties on raw materials. Several briefs have already been submitted calling your attention to this matter in the case of Turkey red oil, and asking you to remember its correlation to castor oil. As Turkey red oils, alizarin assistants, soluble oils, etc., are all sulphonated oils, we recommend the use of the word "sulphonated" in connection with oils mentioned in these paragraphs. This term is perfectly proper and would assist in defining more clearly the intent of the law. PARAGRAPH 581. Guano, manures, and all substances used only for manure, including basic slag, ground or unground, and calcium cyanamid or lime nitrogen. BASIC SLAG. 51 CHAMBERS STREET, New York, March 15, 1912. Hon. A. F. LEVER, Washington, D. C. DEAR SIR: I am very much afraid lest in the revision of the tariff which is now being undertaken by Congress that, through an error or oversight, ground basic slag phosphate may be again placed upon the dutiable list. Largely through your instrumentality this article was placed upon the free list in the Payne bill and there it should remain, as it is an article of increasing popularity among the farmers in this country, to whose search for inexpensive fertilizer materials no bar should be put by Congress in the shape of an import tax or otherwise. I trust I am not presuming in relying upon you to let me know if there should be any attempt to place this article on the dutiable list. For your ready reference, I would say that the basic slag is mentioned in the tarif act of 1909, H. R. 1438, under the free list in section 581. Section 581 in the interest of all the farmers of this country should remain entire, just as it is, upon the free list. Respectfully, yours, PARAGRAPH 582. Gutta-percha, crude. PARAGRAPH 583. M. H. GRACE, President. Hair of horse, cattle, and other animals, cleaned or uncleaned, drawn or undrawn, but unmanufactured, not specially provided for in this section; and human hair, raw, uncleaned, and not drawn. PARAGRAPH 584. Hide cuttings, raw, with or without hair, and all other glue stock. PARAGRAPH 585. Hide rope. PARAGRAPH 586. Hones and whetstones. PARAGRAPH 587. Hoofs, unmanufactured. PARAGRAPH 588. Hop roots for cultivation. PARAGRAPH 589. Horns and parts of, including horn strips and tips, unmanufactured. PARAGRAPH 590. Ice. PARAGRAPH 591. PARAGRAPH 591-RUBBER. India rubber, crude, and milk of, and scrap or refuse india rubber, fit only for remanufacture, and which has been worn out by use. RUBBER. TESTIMONY OF HERMAN MUEHLSTEIN, NEW YORK, N. Y. The witness was duly sworn by the chairman. Mr. MUEHLSTEIN. Mr. Chairman, I represent the American dealers in waste rubber. We desire a slight change in the wording of paragraph 591. It is a very simple one, and I would not like to take up the valuable time of your committee reading. Therefore I beg leave to file this brief which we have prepared. BRIEF OF SCRAP-RUBBER DEALERS, COVERING PARAGRAPH 591. COMMITTEE ON WAYS AND MEANS, NEW YORK, January 10, 1913. House of Representatives, Washington, D. C. [In re suggested change of language of paragraph 591 of the act of 1909 as it affects scrap rubber.] GENTLEMEN: This memorandum is addressed in behalf of the dealers and users of waste or scrap rubber; that is, discarded rubber tires, shoes, hose, factory waste, and like articles. This old scrap rubber is valuable only for the purpose of being reclaimed. The paragraph reads: "India rubber, crude, and milk of, and scrap or refuse india rubber, fit only for remanufacture, and which has been worn out by use." We desire a change by eliminating the words "which has been worn out by use." Under the decisions of the courts mutilated rubber tires, shoes, toys, and rubber waste from factories, such as useless ends and clippings, are all dutiable as waste not specially provided for, at 10 per cent, because "not worn out by use." The exhibits filed herewith illustrate this class of rubber. This class of rubber scrap is not available for any purpose other than rubber scrap which has been worn out by use. It frequently occurs in importing scrap rubber that it may be partially composed of rubber scrap not worn out by use, such as heretofore described, and although containing a very small proportionate share, the whole entry has been assessed at 10 per cent. Reclaimed rubber is produced by a somewhat elaborate process, consisting of grinding up scrap rubber and burning out with sulphuric acid or other chemicals the cloth fabric, leaving substantially a crude rubber product, greatly diminished, of course, in both commercial and manufacturing value. The process is described in Michelin Tire Co., against the United States, T. D. 31544, which decided that reclaimed rubber was entitled to free entry under paragraph 591, so that we have the strange situation of a raw material being assessed at 10 per cent and the only product that the raw material is capable of producing is admitted free. It is difficult to comprehend why the words "which has been worn out by use" were ever employed. It certainly never could have been the intention of Congress to really differentiate between any kind of scrap rubber "fit only for remanufacture." The words "fit only for remanufacture" have a plain meaning, and the most casual inspection would indicate whether or not the scrap rubber was available for any other purpose. Waste or scrap rubber should be separated from the paragraph providing for india or crude rubber. We therefore suggest that the language covering the entry of scrap rubber be as follows: "Scrap or refuse or waste india rubber fit only for remanufacture," and that it be retained in the free list. Or, in the alternative, if the committee do not think a separate paragraph necessary, that from the present language of paragraph 591 the words "and which has been worn out by use" be eliminated, so that the paragraph would read: PARAGRAPH 591-RUBBER. "India rubber, crude, and milk of, and scrap or refuse india rubber, fit only for remanufacture." Respectfully submitted. WASTE RUBBER DEALERS ASSOCIATION, The CHAIRMAN. Was the duty raised in the last bill on that? The CHAIRMAN. Do you want a reduction or a raise? Mr. MUEHLSTEIN. We just want a slight change in the wording and in the account of waste which I will read here. The present paragraph 591 reads as follows: India rubber, crude, and milk of, and scrap or refuse india rubber, fit only for remanufacture, and which has been worn out by use. We desire the elimination of the words "which has been worn out by use," for the reason that if shipments of waste rubber which now come in having the same value contain 2 or 3 per cent of new rubber the entire shipment is put in as 10 per cent, as not specifically provided for. Now, we contend that that is an injustice and prohibits the importation of waste rubber of all kinds. The CHAIRMAN. You think that that prohibits it because the rate. in that clause is so high that waste rubber can not come in? Is that your idea? Mr. MUEHLSTEIN. If the waste rubber is in the free list, and it is the intention to put it in the free list, all right; but a lot of waste rubber may come in which contains a very slight percentage of new rubber, which is not provided for; therefore, under the ruling of the Government, the entire shipment is thrown in at 10 per cent. The CHAIRMAN. That is, it goes in the tax schedule? Mr. MUEHLSTEIN. Yes sir. Mr. HILL. This phrase has been in here from time immemorial, has it not, and in the meantime the entire rubber industry has changed in character? Mr. MUEHLSTEIN. Yes. Mr. HILL. Is there any reason at all why the article designated as scrap mentioned here, by the terms of the law, from new manufactures, may not go in there as scrap? Mr. MUEHLSTEIN. There is no reason, because the new waste rubber is not used in any different way and for any different purpose than the old waste. Mr. HILL. Now, another question and that is all. In the process of vulcanizing a good many rubber products are spoiled, are they not, and then kept and made into scrap; that is, not worn out by use, but cut up the same as old shoes are cut up? Mr. MUEHLSTEIN. Absolutely. PARAGRAPH 591-RUBBER. BRIEF OF THE RUBBER CLUB OF AMERICA, NEW YORK, N. Y. Hon. OSCAR W. UNDERWOOD, NEW YORK, March 28, 1912. Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: In view of my understanding that there is heavy pressure being exerted in Congress to lower the existing tariff on wool and that it is proposed to levy a tax of 5 cents a pound on all crude rubber imported into the United States, in order to meet an attendant deficit in revenue, approximately amounting to $21,000,000, I herewith submit data, most of which is taken from official statistics furnished by the Government, and earnestly hope that it will be given careful consideration by you and your committee in determining the expediency of this proposed legislation. I feel that although this is only a brief and imperfect statement of existing conditions of the industry, I show conclusively that the ultimate effect of the proposed tax would be to shift the burden from one commodity to another without meeting the deficit, without being of the slightest benefit to the general public, but, on the contrary, imposing a direct loss on the public as well as upon the manufacturers and all persons engaged and employed in the industry. In the first place, there was imported into the United States for the fiscal year July 1. 1910, to June 30, 1911, 145,743,820 pounds of crude rubber (pontianak, gutta-percha, and balata included, 26,948,000 scraps excluded) the value of the 145,743,820 pounds of crude rubber being $90,576,643 and the value of the 26,948,000 scraps being $2,334,870. United States official india-rubber statistics. ARRIVAL OF ALL GRADES OF CRUDE RUBBER IN UNITED STATES, FISCAL YEARS TOTAL ARRIVAL OF ALL GRADES OF CRUDE RUBBER IN UNITED STATES, FISCAL 522,872 255,559 196,878 784,501 $188, 161 201,339 100, 305 82, 136 167,873 624,702 1,648, 921 |