PARAGRAPH 629-MODELS.

known as molders' or foundry patterns, and as no provision was made fixing a rate of duty on them, they became subject to a rate of 45 per cent ad valorem under clause 199 of the metal schedule, when made of metal, as is usually the case when patterns are intended for continuous use in producing castings.

We understand it is the policy of the Government to encourage development by home manufacturers of an export business. If this is the case, it would seem proper that reasonable steps should be taken to remove obstacles to such development.

To enable you to appreciate how our business with Canadian customers has been affected by the present tariff on patterns, we will state:

As manufacturers of malleable iron castings we have for many years taken orders from customers in Canada to make castings in our foundries in the United States from patterns owned by our Canadian customers, usually manufacturers of agricultural implements. Such patterns are sent to us to be used for that purpose and not otherwise. They remain the property of the Canadian customer while in our possession and may be recalled by him at any time.

Our business in making castings for Canadian customers in the business year ending June 30, 1912, amounted to considerably over $135,000, giving employment to a large number of molders. Most of this business could not have been secured if we could not have used the customers' own patterns.

When a Canadian customer sends us his patterns for use in executing his orders, we have to pay duty on them, as previously stated, as manufactures of metal, not otherwise classified, at 45 per cent ad valorem. As such patterns have no established market valuewe are obliged to depend on our customer to fix the vlaue of the patterns, and if in the opinion of the appraiser this value is too low, it becomes necessary to have an appraisal, which involves serious delay and expense. If the patterns are returned to the customer, there is no provision for a drawback or refund of duty on their exportation. And if he again sends them back to us we are required to pay duty on them each time they are reimported.

The value arrived at by appraisal of the patterns covered by any one importation can not serve as a basis for determining the value of those covered by any subsequent importation unless the patterns in each are identical, or nearly alike, which is hardly ever the case.

In order to ascertain what it would cost to produce any given lot of patterns, it would be necessary to have separate appraisals of all which were not duplicates. When patterns become obsolete for any reason, or when the design of the article they are intended to produce has been changed, or the use of such articles discontinued, as is frequently the case, then the value of the patterns declines to the scrap value of the materials of which they are constructed. For this reason many manufacturing concerns do not consider their patterns an asset of more than nominal value, although a considerable sum may have been originally expended for their construction. As we have previously stated, patterns such as we have described are not imported by us for permanent use nor for sale. They can not be used for any other purpose than that which they were intended; that is, the production of castings in a foundry. Their use is limited to the making of castings for parts of the owner's machines or implements, which machines they (the owners) make, build, and assemble; and consequently they could not be used for producing castings to be sold to the trade. If the American manufacturer could not make use of the customer's own patterns, he probably could not get the business. The making of the castings gives employment to a large number of workmen, many times greater than those required to produce the patterns. The value of such patterns is small in comparison with the value of the castings which can be produced from them. A very large quantity of castings can be produced from a single pattern, or from a single gate or card of patterns. If the patterns are made of brass or bronze, as are those intended for long running orders, and are well made, and if they are not damaged by careless handling or by accident, they can be used for years with but slight repairs. Thus a few pounds of patterns can be made use of to produce many tons of castings.

It may be asked whether the patterns can not be made in this country. They can be made here; but if the Canadian customer already has his patterns, which have been made and tested under his direction, he would not be willing to incur the expense and delay due to having them duplicated in this country, especially as this would involve his having two sets of patterns for the same castings when one would suffice. The question of time is also an element in the matter. Even if it were possible to induce the customer to have his patterns made in this country, the delay would upset the business. The work of manufacturing agricultural implements has to be done in time to permit of their being marketed before the proper season for their use

PARAGRAPH 630-SEA GRASS.

in each year. If it were necessary to make the patterns to produce the castings before commencing work on the orders, the castings in many cases could not be gotten out in time for the season's business.

We understand that the revenue derived from this source is inconsiderable, and do not believe the importation of foundry or molders' patterns would ever become an important source of revenue.

We trust this subject may have careful consideration by your committee and that you may be willing to recommend the restoration of patterns to the free list, as previously requested.

Respectfully submitted.

THE NATIONAL MALLEABLE CASTINGS Co., By O. K. BROOKS, Treasurer.

CLEVELAND, OHIO, January 8, 1913.

PARAGRAPH 630.

Moss, seaweeds, and vegetable substances, crude or unmanufactured, not otherwise specially provided for in this section.

SEA GRASS.

BRIEFS CONCERNING SEA GRASS.

The COMMITTEE ON WAYS AND MEANS,

JANUARY 27, 1913.

House of Representatives, Washington, D. C.

GENTLEMEN: I respectfully submit for your consideration certain reasons why there should be a tariff placed on imported sea grass.

The industry in the United States is still in its infancy and needs the fostering care of the Government at this time.

Sea grass is a principal part of the upholstering business and has supplanted the use of excelsior, tow, jute fiber, and Florida grass. It can only be gathered along the Atlantic seacoast and the nature of this work necessitates the employment of experienced baymen. On account of the class of men required in this business it is necessary to pay $3 per day and we can not compete with the convict labor of foreign countries and the Hollander who received a mere pittance for his labor.

When I first started in this business ten years ago we had the Canadian to compete with. They received $40 per ton and to-day they are selling their product for $25 per ton f. o. b. Chicago.

Holland grass started as a competition about four years ago and under free entry our local business has dwindled to nothing. Holland grass is selling for $15.30 per long ton delivered at New York and Philadelphia, which is less than what it cost to gather in this country.

The cost to produce the grass at Barnegat Bay is $14.20 per short ton, the freight to New York is $2.80 per ton, making a New York delivery $17 and the highest price ever received within the last three years was $19, making a margin of gross profit of $2. If necessary the Holland grass can be delivered at New York for $10, but they can not at the present rate supply their trade.

I trust that my contentions will commend my cause to the equitable consideration of your committee.

Respectfully submitted by

KINSEY SEA Moss Co.
J. B. KINSEY, President.

PARAGRAPH 630-SEA GRASS.

The COMMITTEE ON WAYS AND MEANS,

PHILADELPHIA, PA., January 14, 1913.

House of Representatives.

GENTLEMEN: For a number of years we have been in the business of collecting, curing, and shipping sea grass-which is used for filling in furniture and other purposes. The season for this work is short-from June until October.

Six or seven years ago we were able to employ labor for this work at $1.25 a day of 10 hours. At present we can not get labor for less than $1.50 to $2 a day-8 to 9 hours. The cost of the work is almost entirely labor. The grass is put up for market in bales of about 200 pounds weight each. The Philadelphia Excelsior Co., of this city, has for a number of years been handling considerable of our product. The price has been gradually reduced until it now shows no profit. A further reduction is mentioned, on account of the same grass being imported and sold in the cities of New York and Philadelphia at prices below the cost of production here, for the simple reason that it is admitted free of duty. The cause of this is the low cost of labor in foreign countries. There has been some competition caused, as we have been informed, by the beds of immigrants (on arrival of ships here), which are filled with this grass, being baled up and sold for the same purposes. This is hardly a sanitary proceeding. We are now informed that the grass is being imported here baled up, and admitted free of duty. This, continued, will break up a new and growing American industry, and the only relief we see is for your honorable committee to impose a tariff of say 20 to 25 per cent on imported sea grass, imported in bales.

The Philadelphia Excelsior Co. is no doubt well posted on the conditions of the market, and any desired information may be had from them. We think they would be willing to give it.

Yours, truly,

PARAGRAPH 631.

Musk, crude, in natural pods.

PARAGRAPH 632.

Myrobolans.

PARAGRAPH 633.

Needles, hand sewing and darning.

PARAGRAPH 634.

SWORD BROS.

Newspapers and periodicals; but the term "periodicals" as herein used shall be understood to embrace only unbound or paper-covered publications issued within six months of the time of entry, devoted to current literature of the day, or containing current literature as a predominant feature, and issued regularly at stated periods, as weekly, monthly, or quarterly, and bearing the date of issue.

PARAGRAPH 635.

Nuts: Brazil nuts, cream nuts, marrons crude, palm nuts and palm-nut kernels; cocoanuts in the shell and broken cocoanut meat or copra, not shredded, desiccated, or prepared in any manner.

PARAGRAPH 636.

Nux vomica.

PARAGRAPH 637.
Oakum.

PARAGRAPH 638.

Oil cake.

78959°-VOL 6-13-10

PARAGRAPH 639.

PARAGRAPH 639-OILS.

Oils: Almond, amber, crude and rectified ambergris, anise or anise seed, anfline, aspic or spike lavender, bergamot, cajeput, caraway, cassia, cinnamon, cedrat, chamomile, citronella or lemon grass, civet, cocoanut (not refined and deodorized), cotton-seed, croton, fennel, ichthyol, jasmine or jasimine, juglandium, juniper, lavender, lemon, limes, mace, neroli or orange flower, enfleurage grease, liquid and solid primal flower essences not compounded, nut oil or oil of nuts, soya-bean, olive oil rendered unfit for use as food or for any but mechanical or manufacturing purposes, by such means as shall be satisfactory to the Secretary of the Treasury and under regulations to be prescribed by him; attar of roses, palm, palm kernel, rosemary or anthoss, sesame or sesamum seed or bean, thyme, origanum red or white, valerian; and also spermaceti, whale, and other fish oils of American fisheries, and all fish and other products of such fisheries; petroleum, crude or refined, including kerosene, benzine, naphtha, gasoline, and similar oils produced from petroleum.

See also National Varnish Manufacturing Association, page 5787; Benzol Products Co., page 5792; J. T. Schoellkopf, page 5805; New York Quinine & Chemical Co., page 5818.

OILS.

TESTIMONY OF WILLIAM H. WADHAMS, ESQ., REPRESENTING THE B. T. BABBITT CO., NEW YORK, N. Y.

The witness was duly sworn by the chairman.

Mr. WADHAMS. The next witness on your calendar is Mr. H. W. Brown, who is the chairman of our conference of laundry-soap manufacturers, of which Mr. Wadhams is secretary. As Mr. Wadhams has heretofore appeared here at previous hearings on the chemical schedule under Schedule A and under Schedule G before this committee, Mr. Brown has asked him to take his time, with the permission of the committee, so that, with your permission, I may have half an hour.

The CHAIRMAN. There is a combination of two witnesses that under our rules will give you 20 minutes. If you can not finish in that time we will try to be liberal with you.

Mr. WADHAMS. The laundry-soap manufacturers of the United States are in a highly competitive business. We have heretofore appeared before your committee on the 6th of January and stated our position on the general proposition of the revision of the tariff. In response to the inquiry on your postal as to what our opposition was, we stated that we were in sympathy with the general proposition of the revision of the tariff downward, to which we understand the majority of this committee are committed, and that for that reason, although we do not ask it, we do not oppose the proposed reduction upon the manufactured article-that is, upon laundry soap.

Under H. R. 20182 it was proposed to reduce the duty from 20 to 15 per cent ad valorem upon laundry soap. We, however, take the position that such a reduction should not be made upon the manufactured article unless the raw materials which appear upon the free list and concerning which you are making an inquiry to-day, and which are used in the laundry-soap industry, in manufacturing, remain upon the free list; that as far as our trade is concerned it certainly would not be a revision downward if these items which have been upon the free list in all tariff acts both Democratic and Republican were now taken off the free list and a duty imposed upon them. Mr. HARRISON. Will you state what those articles are?

PARAGRAPH 639-OILS.

Mr. WADHAMS. I have prepared at your request, Mr. Harrison, and at the request of Mr. Kitchin, a table showing all the articles used by laundry-soap men, with those upon the free list plainly marked.

Table showing raw materials used in the manufacture of common laundry soaps. [Giving percentages which each material bears to the total weight of raw materials used, present duty, proposed under H. R. 20182, and recommendations of the laundry-soap industry.]

MATERIALS MENTIONED IN PRINTED BRIEF CONCERNING WHICH A RECOMMENDATION HAS BEEN MADE.