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PARAGRAPH 655—CAUSTIC POTASH. no object, and so could the caustic potash be made in Niagara Falls under adverse conditions if cost and expense were no object.
The manufacturer limped along with various vicissitudes, suspensions, fires, etc. (the inventor had long since dropped out), but the Wall Street backer was a resourceful man and kept the project alive until it had incurred a considerable debt to the German furnishers of the muriate of potash. He was then shrewd enough to induce this German, after his bill got big, to take over the plant. It was represented simultaneously that no doubt the tariff commission could be induced to put a protective duty on the article, so as to enable the foreigners eventually to collect their indebtedness. In other words, they were clever enough to induce the foreigners to send some good money after bad in the hope of getting the American consumers, embracing a large proportion of our woolen and soap manufacturers, to help them collect their debt and consequent investment in this indirect way.
Every Congress up to the present one has resisted their arguments; but, urged on by the silver-tongued emissary of the German owner, the present one proposes to put a duty of $11 per ton on his raw material (the German wanted $20) for the benefit chiefly of a man who is one of the most wealthy potash mine owners in Germany and the one who was more instrumental than any other man in bringing on the potash controversy which threatened to disrupt relations between this country and Germany a couple of years ago.
In a recent hearing before the Ways and Means Committee of Washington the question was presented solely by the representatives of this German owner, and many of the statements made in this testimony were very irrelevant, misleading, and untrue; but no refutation of them was made, according to the record. He baldly proposes that the selling price need not be raised more than 25 per cent to give him the desired protection.
This factory is almost entirely owned and financed by the wealthy German potash mine owner mentioned and a German bank. It is the only producer of caustic potash in America, and together with its caustic soda department (which is already amply protected by 50 per cent or more duty) employs totally from 50 to 60 hands, and from the circumstances of the case its potash department can never be made a self-sustaining industry on an equitable basis.
If the small amount of revenue involved be the object, several times as much would be furnished by a half dollar per ton on the importations of the cruder form of muriate of potash, but this is probably unnecessary. Caustic and carbonate of potash should remain on the free list, and thus avoid a most glaring instance of a needless tax on American consumers for the sole benefit of a small side show of an alien monopolist.
C. C. SPEIDEN.
New York, December 30, 1912. Messrs. Jos. BIECHELE SOAP Co.,
Canton, Ohio. GENTLEMEN: We would call your attention to that part of the chemical schedule in the Underwood bill as passed by the House of Representatives last spring, which provides for the duty of one-half cent on carbonate of potash, and six-tenths cent on caustic potash.
These articles have been on the free list in this country on the Republican tariff bills and Democratic tariff bills alike, for nearly 30 years, and there seems to be no valid reason for putting a duty on them other than the desire of the proprietors of a small factory at Niagara Falls who recently began to manufacture caustic potash on a moderate scale, and one of their consumers who is trying to recover moderate quantities of the carbonate.
The factory in question is the property almost entirely of a wealthy German owner of one of the large Strassfurt, Germany, potash deposits, and a prominent member now of the German Potash Trust. It would seem inequitable that the hundreds and even thousands, indirectly, of consumers of these materials should be taxed for the chief benefit of the principal owner of this Niagara Falls plant, and inasmuch as we notice that the hearing on the chemical schedule in the committee of House of Representatives will be held on January 6-8, 1913, we suggest that in the mutual interest of all concerned that it would be as well to make some representation or protest against any renewal of the proposition to tax these two articles.
If the matter appeals to you, as it no doubt does, we suggest that you write your Congressman or Senator and exert such influence as you can to have this matter decided on its merits and not from the one-sided hearing from the agents of the beneficiary of the tax above mentioned. Yours, truly,
INNIS, SPEIDEN & Co.
PARAGRAPH 655—CAUSTIC POTASH.
MONONGAH Glass Co.,
Fairmont, W. Va., February 1, 1915. Hon. C. W. Watson,
United States Senate, Washington, D. C. My Dear Sir: I am inclosing you copy of letter addressed to Hon. Oscar W. Underwood by Messrs. Innis, Speiden & Co., of New York City, regarding the matter of carbonate of potash.
This is a material that we use in our business and we have never used a pound of it made in this country. It would appear that it would be unwise to put a duty on an article that is not made in this country; at least, not to any extent.
We call the matter to your attention so that if it should come up during the tenure of your office, that you will have some information on the subject, and we solicit your influence against the assessing of a duty on this material. Yours, very truly,
MONONGAH Glass Co.
BRIEF OF PETERS, WHITE & CO., NEW YORK.
New York, January 31, 1913. Hon. OSCAR W. UNDERWOOD,
Chairman Ways and Means Committee, Washington, D. C. DEAB Sir: As importers of caustic potash we would like to review and correct some of the statements made by the Niagara Alkali Co., the only makers of electrolytic caustic potash in this country.
Caustic potash has always been on the free list. and this company started their business with the full knowledge of this fact. The original company, the Roberts Chemical Co., were unsuccessful, and the company was taken over by an owner of German potash mines who had supplied this company their requirements of muriate, and is now controlled by him or his interests.
The prices submitted under Exhibit A are far at variance with prices at which we have been ling the last seven years, which are as follows: 1906
5. 25 1907_
5. 25 1908
5. 621 1909.
5. 121 1911.
4. SO 1912
4. 50 1913.
4. 50 Under Exhibit B, invoice of German Kali Syndicate, dated August 20, the Niagara Alkali Co. have omitted to include a further 64 per cent rebate which they receive over and beyond the one entered.
We would further correct the statement that no guaranty has been made to customers that if duty should be imposed importers will pay same.
The total importation of caustic potash is not a large one, and the revenue the Government would receive would be small, the tax falling for the most part on soap and woolen manufacturers.
It would seem as though caustic potash should remain on the free list.
PETERS, WHITE & Co.,
BRIEF SUBMITTED BY E. C. KLIPSTEIN, NEW YORK.
CAUSTIC POTASH OR HYDRATE OF POTASH AND CARBONATE OF Potash.
Hon. Oscar W. UNDERWOOD,
Chairman Ways and Means Committee: Paragraph 69 of House bill 20182 places a duty of one-half cent per pound on bicarbonate of potash and carbonate of potash refined, and six-tenths of a cent per pound on hydrate of potash (caustic potash), removing both from the free list of the present tariff.
The information regarding caustic potash given in Report No. 326 of the Sixty-second Congress on Schedule A is entirely misleading.
It speaks of "American establishments" making caustic potash when there are no “establishments." It says that many soap makers causticize carbonate of potash, which is absolutely incorrect as to this country. As a matter of fact, the consumption of caustic potash in this country in 1890 was about 500 tons. The removal of the duty led to a steady increase in consumption until to-day it amounts to about 4,500 tons, chiefly used in making potash soaps for the woolen industry, to the immense benefit of the industry.
Since the invention of the electrolytic process, practically all caustic potash is made from potassium chloride, which is a product of the German potash mines and is obtainable nowhere else in any quantity. In order to manufacture caustic potash in the United States, potassium chloride must be transported 4,000 miles to an electrolytic plant, and in order to overcome the heavy freight expense for such transportation, Congress is asked to impose a duty of sixtenths of a cent per pound, or $12 per ton on caustic potash. Such a tax would cost the people of the United States $50,000 yearly, while the Government would get no revenue. And the beneficiaries of such tax would not be Americans, but Germans; for the only “establishment” in this country proposing to make caustic potash is the Niagara Alkali Co., at Niagara Falls, N. Y. And that company is chiefly owned by a German potash mine owner and financed by a German bank, the Disconto Gesellschaft of Berlin. These Germans seem to be lieve that they can control the action of Congress. They have been publicly asserting for the past year their intention of “having a duty put on caustic potash.” It would seem that, under the circumstances, it would be the part of wisdom to give consideration to the consumers of caustic and carbonate of potash, the glass manufacturers, soap makers, and woolen mills, and leave both these products in the free list rather than impose a duty which would be a beary burden on these industries without producing any revenue. Respectfully submitted.
E. C. KLIPSTEIN. NEW YORK, January 6, 1913.
Professional books, implements, instruments, and tools of trade, occupation, or employment, in the actual possession at the time of arrival, of persons emigrating to the United States; but this exemption shall not be construed to include machinery or other articles imported for use in any manufacturing establishment, or for any other person or persons, or for sale, nor shall it be construed to include theatrical scenery, properties, and apparel; but such articles brought by proprietors or managers of theatrical exhibitions arriving from abroad, for temporary use by them in such exhibitions, and not for any other person, and not for sale, and which have been used by them abroad, shall be admitted free of duty under such regulations as the Secretary of the Treasury may prescribe; but bonds shall be given for the payment to the United States of such duties as may be imposed by law upon any and all such articles as shall not be exported within six months after such importation: Provided, That the Secretary of the Treasury may, in his discretion, extend such period
for a further term of six months in case application shall be made therefor. PARAGRAPH 657.
House of Representatives : In reply to notice of tariff hearings, we beg to recommend that paragraph 658 of the tariff of 1909 be omitted. This would throw quinine and tlie salts and derivatives PARAGRAPH 658–QUINIA, of cinchona bark into paragraph 3 and would produce a revenue of $140,763.20 per year, based on present market price and the imports of 1911.
These figures are based on a laid down cost to-day of 19 cents per ounce, which we believe is the lowest obtainable, less 1 cent per ounce to cover transportation, packing, commissions, etc., which is deducted to arrive at value in country of origin. All' indications point to higher prices than this over the next few years, and this would return a corresponding increase in the revenue. Importations would be very little decreased, as American factories have not facilities enough to supply the demand. The foreign combination of manufacturers are able to work more cheaply than we, and will sacrifice part of their profits rather than abandon this market.
The foreign combination of quinine manufacturers sell to the entire world, getting 75-80 per cent of the entire business, whereas the American manufacturers do not export an ounce and get less than half of the business of this country, as is shown in the following table:
The third and fourth columns are taken from the figures of the Bureau of Statistics. The second column, giving the average percentage of quinine sulphate in bark for the year, shows the official tests of the public auctions in Amsterdam, where all cinchona bark is marketed. The third column is a calculation from the first and second.
The public will suffer no appreciable loss, the tax being only about five onehundredths of a cent per dose of five grains.
The tax was removed over 30 years ago by a special bill, as the result of a campaign conducted anonymously in one of the daily papers, which by false representations created a public outcry and an hysterical demand for the removal of the tariff tax. At that time quinine sulphate was much higher priced and the tax amounted to about 70 cents per ounce. Respectfully submitted.
New York QUININE & CHEMICAL WORKS (LTD.). New YORK CITY, January 15, 1913. BRIEF OF POWERS-WEIGHTMAN - ROSENGARTEN CO., PHILA
PHILADELPHIA, January 31, 1918. Hon. OSCAR UNDERWOOD, Chairman Committee on Ways and Means,
House of Representatives, Washington, D. C. DEAR Sır: By striking this paragraph (658) from the free list, the articles imported under this head will automatically fall into paragraph 3 of the dutiable list, thereby yielding the Government at the present rate of duty over $100,000 per annum in revenue, as is shown by the following:
Importations of quinia, sulphate of, and all alkaloids or salts of cinchona bark.
Estimated Value. duty (at 25
2,991, 071 8411, 307 $102, 826.75
PARAGRAPH 661-REGALIA. That the ultimate consumer is but slightly affected by omitting this paragraph from the free list is shown by the following:
The market price to-day of sulphate of quinine is 211 cents per ounce. An ounce avoirdupois contains 437 grains. Assuming a fair average dose of sulphate of quinine to be 5 grains, it is easily calculated that 25 per cent of 21cents equals 510700 cents or about 14 mills on each dose of 5 grains. The average market price in the past 10 years has been as follows:
Quinine, American, per ounce.
A. G. ROSENGARTEN, Treasurer. PARAGRAPH 659.
Radium. PARAGRAPH 660.
Rags, not otherwise specially provided for in this section. PARAGRAPH 661.
Statuary and casts of sculpture for use as models or for art educational purposes only; regalia and gems, where specially imported in good faith for the use and by order of any society incorporated or established solely for religious, philosophical, educational, scientific, or literary purposes, or for the encouragement of the fine arts, or for the use and by order of any college, academy, school, seminary of learning, orphan asylum, or public hospital in the United States, or any State or public library, and not for sale, subject to such regulations as the Secretary of the Treasury shall prescribe; but the term “regalia” as herein used shall be held to embrace only such insignia of rank or office or emblems as may be worn upon the person or borne in the hand during public exercises of the society or institution, and shall not include articles of furniture or fixtures, or of regular wearing apparel, nor personal property of
individuals. See Thomas M. Lane, page 5747.
BRIEF SUBMITTED BY THE ANDREW MESSMER CO., CINCIN
CINCINNATI, OHo, January 8, 1913. The CoMMITTEE ON WAYS AND MEANS,
House of Representatives, Washington, D. C. GENTLEMEN: We are addressing you under paragraph No. 649, free list, of the act, of 1897, on the subject of “regalia," imported free of duty for churches and other institutions of a public character.
Under the designation “regalia” are imported, free of duty, metal vessels, chalices, ciboria, and ostensoria, used in churches for public services; vestments, banners, and a minor assortment of other church articles.
We manufacture a general line of ecclesiastical metal work, but are chiefly interested in this memorandum in the free entry of chalices, ciboria, and ostensoria, which are castly, high-grade, and artistic lines of ecclesiastical work, and embrace the most valuable and highest-paid part of our production. Strictly skilled labor must be employed in the production of such goods, and labor forms from 70 to 80 per cent of