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PARAGRAPH 679-SPICES.

As now construed, section 25, of tariff act 1909, effectually prevents the exporting of flavoring extracts, of any kind, because not having been specifically named in the act, no drawback on domestic tax paid alcohol contained in their manufacture can be recovered, as provided for in the case of medicines and perfumery.

We hope this will be rectified either as proposed by Mr. Harrison in his bill, H. R. 17678, or by incorporation in the regular tariff act, as was proposed in section 99, H. R. 20182, so that the internal tax paid on domestic alcohol used in flavoring extracts may be recoverable by drawback, as now provided when exported for other alcoholic goods. The constituents, whether oil of lemon or alcohol, in lemon extract will be recoverable by the adoption of the method proposed, section 99, H. R. 20182, or in Mr. Harrison's bill, for even if à duty be put upon oil of lemon the amount used in a manufactured product can be ascertained by analysis as well as the amount of alcohol.

Summarizing, Mr. Chairman, we ask that ground leaves, etc., section 20, tariff act 1909, be made dutiable at 30 per cent ad valorem in addition to any duty that may be imposed on the unground products; that all ground spices, including red pepper, cayenne pepper and sage leaves, be made dutiable at the specific rate of 3 cents per pound, in addition to any specific or ad valorem duty put on them in the unground state, excepting ground mustard, which should be continued under the present duty of 10 cents per pound; that all spices unground now on the free list be retained on that list; and that vanilla beans and oil of lemon be continued on the free list, and that section 99, H. R. 20182, be incorporated in any tariff act you recommend to Congress.

Mr. Chairman, when I was before you last-I think it was on the 20th-this question was asked me: "I want to know whether our pure-food law is effective in respect to these products, or is it a failure, as you seem to contend, at least in this respect?" I replied, "I think the pure-food law is a success."

Now, Mr. Chairman, if it is entirely in order, I would like to ask you to let me state what I think of the pure-food law.

The CHAIRMAN. If you do not take too long.

Mr. MCCORMICK. It will not take more than a minute or two. I desire to say that the food and drug act of June 30, 1906, was a very badly needed piece of legislation, well thought out and well drawn. It benefited the consumer by ridding the market of hundreds of brands of adulterated, impure, and inferior food products. It has very greatly benefited every legitimate manufacturer by protecting him against unscrupulous and dishonest misrepresentation and competition, thus placing the manufacturing, the packing, and the distributing of food products on a plane more nearly approximating common honesty.

The fact that it is impossible to make it or any law perfect does not detract from the necessity of this legislation or its benefits. No such law can ever be enacted that will not embrace in it features that will admit of argument as to the relative equity of the two sides, or some question that may confront those executing it, and which may not embrace elements of some great injustice to some manufacturer concerned. The fact that this law has been apparently executed at times without any elements of fairness and that prosecutions have seemingly

PARAGRAPH 679-SPICES.

been made by certain officials for no other reason than personal pique, causing many manufacturers to consider themselves persecuted rather than prosecuted, is, in my personal judgment, certain; but that does not militate against the need or value of or the great good accomplished by the food and drugs act.

Notwithstanding the common acceptation, I make the positive statement that the passage of this act was made certain only by the earnest support of many manufacturers, who welcomed its coming.

The WAYS AND MEANS COMMITTEE,

Washington, D. C.

MCCORMICK & Co., Baltimore, Md., January 30, 1913.

GENTLEMEN: For McCormick & Co., of Baltimore, I wish to again speak briefly on the subject of spices. Your wish that these items be taken up in the order of the different schedules of the act of 1909 is my apology for appearing more than once.

We are importers and manufacturers vitally interested in these schedules and rates, but do not come to unreasoningly protest against any change but to give you facts as to the spice trade without prejudice or reservation.

Spices have been on the free list on each succeeding tariff adopted by Congress for a generation. That they were first so listed by the exponents of the ultraprotective tariff theory seems quite conclusive evidence that they were then accepted and classed as noncompetitive necessities to comfortable and healthful existence, rather than sybaritic luxuries, as claimed by Mr. Gibson, the attorney from New York, who so volubly pleads for heavy duties and who succeeded in at least giving reasonable ground for the presumption that underlying the brief filed with you he holds a brief from some of the shrewd speculating importers who see immediate profits by realizing on their stocks if his advice be accepted, for, knowing so little of the business and of actual conditions personally, as is evidenced by his words, it is otherwise inconceivable that in the long list of imports now on the free list his altruistic fervor would have singled out this class alone as available for producing revenue.

That spices were considered necessities is further evidenced by the fact that all crude and unground spices were put on the free list except cayenne or red peppers and sage leaves. These exceptions were unquestionably made to foster the domestic cultivation of the only spices of all the list which have had or have now any chance of being grown to the advantage of the American farmer.

Those responsible for the listing counted not that the American farmer is handicapped by insurmountable differences in cost of production, and that many generations will be born and pass away before the negro of East Africa or the Coolie laborer of India, who cultivates the pepper fields, will earn even a modicum of what the American farm laborer must have to pay for the necessities of his existence under our civilization.

To a less degree, but none the less appreciable, the same may be said of the povertystricken peasants of the mountains about the Adriatic Sea who gather the one and one-half million pounds of wild sage annually sent to this country.

The spice-importing trade, as well as the consumers, are a unit in requesting that you recommend that those spices in the unground state now on the free list be allowed to so remain, and also that cayenne and red peppers in the unground state be included in your recommendation.

Contrary to Mr. Gibson's assertion, I am sure that more than 80 per cent of all spices going to the consuming trade are ground in mills of those who make it a business and in that state are distributed to the consumer, reaching him through the retail grocer at prices ranging from 24 to 34 cents per ounce instead of 5 to 10 cents per ounce as stated by him. Of course, this does not apply to such articles as saigon cassia, or cinnamon, costing to import in quantities 40 cents per pound, or mace costing from 50 to 65 cents per pound, depending upon variety and quality. Ground spices usually reach the consumer in packages, designed to sell at 5 and 10 cents respectively. A duty of 1 cent per pound will increase the cost of these packages approximately 15 to 18 cents per gross for the 5 cents packages, and 30 to 36 cents per gross for the 10 cents packages. If Mr. Gibson's suggestion, that duties of 6 cents per pound prevail, the cost would be increased 90 cents to $1.20 per gross for the 5 cents and $1.80 to $2.15 for the 10 cents package. If you make spices dutiable, the consumer will continue to purchase 10 cents, and possibly in a few instances 5 cents packages, but the contents will be proportionately less, for the margin in the business is so small that this increased

PARAGRAPH 679-SPICES.

cost must inevitably be passed along to him. The changed conditions will, however, cause the importer and packer great loss in adjusting his cartons, containers, and other expenses made necessary. That importing and dealing in spices is a business of great risk and hazard should be considered.

Owing to crop failures, incident to droughts and other causes, alternating with seasons of heavy productions, and artificial advances or declines forced on the American importer by the great syndicates formed in Europe for manipulation of prices, import costs fluctuate violently. Cloves within a year have advanced from 13 to 19 cents; reacted to 10 cents and now stand at 21 cents per pound for import cost.

Gingers have fluctuated between 8, 12, and 5 cents per pound; allspice from 6 to 4 cents, nutmegs from 10 to 16 cents, pepper from 9 to 11 cents, celery seed from 8 to 35 cents, French marjoram from 7 to 14 cents, German marjoram from 14 to 32 cents. Many other similar instances could be cited.

If you gentlemen decide to recommend a duty on whole spices, in settling upon the rates, due consideration should be given to the large loss in weight by evaporation of the natural moisture.

Black and white peppers will lose 2 to 5 per cent; gingers, 5 to 15 per cent; red peppers, 6 to 10 per cent; cloves, 7 to 20 per cent; allspice, 5 to 10 per cent; nutmegs, 2 to 7 per cent; cassias, 5 to 8 per cent; and other spices in proportion.

It is evident that if a duty be levied the importer and packer will pay the extra duty on water in proportion to the loss in weight, which he must stand when invoicing to the trade, for most of this loss will occur within 60 days after landing, and the importing manufacturer and packer in that time can not pass his goods on to other hands, who would then stand the loss. The condition is similar to that affecting grain. I find it gives better returns to sell my wheat soon after harvest at 90 cents rather than hold it for three months, with the almost certainty of getting $1.05 per bushel.

Changing spices from the free to the dutiable list will be a factor small, it is true, but nevertheless appreciable in raising the cost of living,

I state positively that there is no combination or understanding among importers and dealers in these products for boosting prices or getting illegitimate profits. They are handled on small profits, and on those keen competitive lines which so many think elements necessary to the millenium of low-cost products.

Notwithstanding the undoubted disparity of labor and salary costs, if given equal laid down costs and mechanical processes, I am sure the properly equipped American plant handling spices can compete against all comers, whether the crude product comes from the region of "Africa's sunny fountain or India's coral strand."

I ask your attention to what has been said in a previous brief for the statement of the danger of abuse to the American consumer of any hospitality you may give to certain lines of ground spices is not overdrawn and is demonstrably true.

Cinnamon, cassias, sage, allspice, cloves, black and white peppers are not so greatly susceptible of abuse when imported in the ground state as are red peppers, gingers, nutmegs, and mace, to which we have referred in a previous brief. It is against these particularly that we ask the prohibitive duty to bar out such products in the ground state as would not be allowed entry in the unground.

We further ask your consideration of vanilla beans and the essential oil of lemon, both imported and which can probably never be produced to advantage in the United States.

The American manufacturer is making increased efforts to build up his trade with South American and other foreign countries, and it is necessary to success that he be placed on an equal footing with England, Germany, or France.

As now construed, section 25, tariff act, 1909, effectually prevents the exporting of flavoring extracts of any kind, because not having been specifically named in the act, no drawback on domestic tax paid alcohol contained in their manufacture can be recovered, as provided for in the case of medicines and perfumery.

We hope this will be rectified either as proposed by Mr. Harrison in his bill, H. R. 17678, or by incorporation in the regular tariff act, as was proposed in section 99, H. R. 20182, so that the internal tax paid on domestic alcohol used in flavoring extracts may be recoverable by drawback, as now provided when exported for other alcoholic goods. The constituents, whether oil of lemon or alcohol on lemon extract, will be recoverable by the adoption of the method proposed, section 99, H. R. 20182, or in Mr. Harrison's bill, for even if a duty be put upon oil of lemon the amount used in a manufactured product can be ascertained by analysis, as well as the amount of alcohol.

If a duty be put on vanilla eans we are satisfied it will prevent the exporting of extracts manufactured from them, for the reason that after manufacturing there is

PARAGRAPH 679-SPICES.

no accurate chemical means of arriving at how much vanilla beans have been used in making the extract or flavor. We are, therefore, satisfied the Government can arrange no method that will be satisfactory of allowing the drawback for duty-paid goods used in manufacturing when exported from the United States, and that the drawback will not be recoverable.

In manufacturing 1 gallon of vanilla extract of standard strength 13 ounces of vanilla beans, at an average cost of $2.75 per pound, will be required. The 134 ounces used will cost $2.322. If duty of 50 cents per pound be imposed the vanilla beans will cost $3.25 per pound, and the 13 ounces used $2.745. Therefore increased cost of 1 gallon of extract by reason of the duty will be 42.3 cents per gallon. The loss to the manufacturer on any such product exported will be 42.3 cents per gallon, or about 10 per cent on the cost. The American manufacturer wishing to compete with England or Germany for the South American or other foreign trade will therefore be at a disadvantage to the extent of the per cent named.

The internal-revenue tax upon the alcohol used in the manufacture of this gallon of vanilla extract can easily be determined and can be recovered by drawback on the goods when exported if section 99, H. R. 20182, be adopted in new tariff legislation. Summarizing: We ask that ground leaves, etc., section 20, tariff 1909, be made dutiable at 30 per cent ad valorem in addition to any duty that may be imposed on the unground products.

That all ground spices, including red pepper, cayenne pepper, and sage leaves be made dutiable at the specific rate of 3 cents per pound in addition to any specific or ad valorem duty put on them in the unground state, excepting ground mustard, which should be continued under the present duty of 10 cents per pound.

That all spices unground now on the free list be retained on that list; and That vanilla beans and oil of lemon be continued on the free list, and that section 99, H. R. 20182, be incorporated in any tariff act you recommend to Congress.

BRIEF SUBMITTED BY STICKNEY & POOR SPICE CO., BOSTON, MASS.

BOSTON, January 8, 1913.

Hon. OSCAR W. UNDERWOOD,
Chairman Committee on Ways and Means,

Washington, D. C.

DEAR SIR: We desire to respectfully ask that spices, aromatic seeds, mustard seeds, and all kindred goods which enter as raw material into pure food products, shall be put on the free list.

It is natural for us to expect that the cost of pure food products shall not be increased in any tariff formulated by a Democratic Congress. The above goods are used in every kitchen and in every meat and food packing house in the land. Every time a new tariff is discussed some lawyer appears representing foreign and New York speculative interests, and asks that these goods be put on the dutiable list. Immediately the goods are pushed up because of excited advertising through the newspapers, the interested parties sell out and make large profits, and the grocers or the public pay the consequences. It has been so when previous tariffs have been discussed.

When the Payne bill was in the Lower House, one party in London and one party in New York began to ring the changes on these goods, and call them "luxuries." The New York Herald last spring printed an interview with a New York lawyer who rang the changes on "luxuries." At the present moment the interested parties are hiding behind a lawyer, and the said lawyer is still ringing the old changes on "luxuries." Every woman in the land who ever enters her kitchen knows better.

We desire to protest against these goods being included in the chemical schedule. They are natural growths of the soil-crude materials—and belong naturally to the agricultural schedule, just like potatoes or apples, or similar growths.

Yours, very truly,

STICKNEY & POOR SPICE Co.,
JAMES S. MURPHY, President.

PARAGRAPH 680.

Spunk.

PARAGRAPH 681.

Spurs and stilts used in the manufacture of earthen, porcelain, and stone

ware.

PARAGRAPH 682.

PARAGRAPH 686-SULPHUR ORE.

Stamps; foreign postage or revenue stamps, canceled or uncanceled, and foreign government stamped postcards bearing no other printing than the official imprint thereon.

PARAGRAPH 683.

Stone and sand: Burrstone in blocks, rough or unmanufactured; cliff stone, unmanufactured; rotten stone, tripoli, and sand, crude or manufactured, not otherwise provided for in this section.

PARAGRAPH 684.

Storax, or styrax.

PARAGRAPH 685.

Strontia, oxide of, and protoxide of strontian, and strontianite, or mineral carbonate of strontia.

PARAGRAPH 686.

Sulphur, lac or precipitated, and sulphur or brimstone, crude, in bulk, sulphur ore as pyrites, or sulphuret of iron in its natural state, containing in excess of twenty-five per centum of sulphur, and sulphur not otherwise provided for in this section.

SULPHUR ORE.

BRIEF BY THE GRASSELLI CHEMICAL CO.

Hon. OSCAR W. UNDERWOOD,

Chairman Ways and Means Committee.

CLEVELAND, OHIO, January 30, 1913.

DEAR SIR: We submit the following in our request that sulphur ore as pyrites be continued on the free list.

Pyrites ore is used in the manufacture of sulphuric acid. Considerable sulphuric acid is consumed in the production of sulphate of ammonia and fertilizers and indirectly in the manufacture of other necessary agricultural articles, like tree and plant sprays, insecticides, remedial agents for every kind of live stock, disinfectants, etc. It is not possible within the limits of this brief to itemize all the applications of sulphuric acid, because it is the raw material for practically every variety of chemical and pharmaceutical manufacture.

It is probably the most important basic material consumed by paint, color, and pigment manufacturers; the textile industry, as well as those of paper, rubber, glass, tinplate, oil, wire and wire nail, sheet steel, both blue and galvanized, leather, bleaching and dying, gold, silver, and nickel plating, dynamite, etc. The creamery and dairy laboratories use it to test the purity of milk, and the gold and silver refiner to part those metals. These applications are given only to show how diversified is the consumption.

The domestic production of pyrites is totally inadequate for the domestic requirements. An import duty would be reflected in a higher cost of sulphuric acid and a disturbance of a trade, which is now and has been for a long time past only moderately profitable. The capital involved and the amount of labor employed in mining pyrites in the United States is exceedingly small, when compared to the other interests directly affected by the cost of pyrites and its product, sulphuric acid.

The following statistics from the Mineral Industry of 1911, page 684, show the production, imports, and consumption of pyrites in the United States for five years ending December 31, 1911.

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