(Page 30, Advance Chapter from Mineral Resources on Zinc and Cadmium for 1911.) In view of the general interest in the importation of zinc ores, a table is given below showing the entry of such ores from Mexico and Canada for 1904-1911 by calendar years. These general imports of zinc ores differ from "imports for consumption" by the difference in stock in bonded warehouse at the beginning and close of the year. Imports for consumption of zinc ore and calamine, 1909–1911. The statistics of general imports as published by the Bureau of Statistics are based on "consular invoice" or "declaration," which is a close approximation only to actual weights and values. The true weights and values of all dutiable articles are determined when the duties are paid, and the correction is applied as "additions by liquidation" or "deductions by liquidation." On free articles this correction is not made. Prior to 1909 zinc ore was in large part undutiable, and in that part of 1909 prior to August 6 a portion of the imports of zinc ore was free. The correction by liquidation for the dutiable zinc ore imported during 1909-1911 is shown in the table. Inasmuch as this correction takes the form of "addition," it shows that the actual imports of zinc ore for preceding years exceed the figures in the table by an unknown quantity. Beginning with August 6, 1909, the corrections by liquidation apply to the total imports, thereby giving exact figures of such imports. General imports of zinc ore from Canada and Mexico, 1904-1911, in short tons. Indicates "addition by liquidation." Exclusive of 822 short tons of zinc ore, valued at $698, and containing 31,889 pounds of zinc, which entered free of duty as containing less than 10 per cent of zinc. Exclusive of 1,092 short tons of zinc ore, valued at $1,411 and containing 77,383 pounds of zinc, which entered free of duty as containing less than 10 per cent of zinc. FOREIGN EXPORTS. By foreign zinc exports is meant the exports of zinc of foreign origin which has been smelted or manufactured in this country and then shipped abroad. The following table, made up from the records of the Bureau of Statistics, shows the total zinc exported from warehouse during the last six years, the exports previous to that period being of insignificant proportions, and also the foreign zinc exported in manufactures with benefit of drawback for the same period. These two items foreign zinc exported from warehouse and foreign zinc in manufactures exported with benefit of drawback-make up the total foreign zinc going out of the country. Zinc in warehouse and deductions by liquidation being disregarded, the difference between the sum of these two exports of zinc and the total imports of zinc constitutes the foreign zinc consumed in this country. It must be clearly understood in regard to this table that the zinc was not exported as zinc content of ore and blocks, pigs, etc., but as zinc smelted or manufactured from them. The reason for this is that the zinc in bonded customs warehouse is carried on the records until the bond is canceled in the same form in which the zinc was entered for warehouse. The zinc content of the foreign ore is, of course, exported as spelter. Under present customs regulations 90 per cent of the total zinc content must be exported to secure cancellation of bond. The quantities of zinc exported from warehouse are exact, but the quantities as given of zinc exported in manufactures under drawback are subject to wastage in manufacturing. There is no record kept of the form in which the zinc is actually exported, except in case of a portion of the articles manufactured from foreign zinc and exported with benefit of drawback. Unless the zinc be the constituent of chief value, the actual amount of zinc is not recorded. But each shipment on which drawback is claimed is accompanied by a manifest of the imported zinc which was used in making the articles as well as the duty paid thereon. From these manifests is made up the statement of the total quantity of foreign zinc which went into manufactures exported with benefit of drawback, and for this reason the zinc is given in the form in which it was imported. Exports of foreign zinc, 1905–1911, in pounds. (Excerpt from pp. 34 and 35, Advance Chapter' on Mineral Resources of the United States.) TUNGSTEN-BEARING ORES. COMMITTEE ON WAYS AND MEANS, Washington, D. C. SAN FRANCISCO, CAL., January 2, 1913. GENTLEMEN: We beg to submit herewith copy of a letter recently addressed to Senator Works and others in relation to the classification of tungsten-bearing ores (par. 190, act of 1909), ferrotungsten and tungsten metal (par. 184),. and steel ingots (par. 131). DEAR SIR: The Atolia Mining Co., with offices at 311 California Street, San Francisco, and mines situated in San Bernardino County, Cal., has engaged in mining and refining tungsten ores since 1906. The output of this company has been approximately 30 tons per day of crude ore, and about 1 ton per day of refined tungsten ore, or concentrates. We are advised that the following modifications are proposed in the duties on tungsten ore and its products, which consist of: (a) Refined tungsten ore. or concentrates; (b) ferrotungsten; (c) tungsten metal: (d) steel ingots. (a) Refined tungsten ore or concentrates.-- A duty of 10 per cent ad valorem is at present imposed on this material under the tariff act of 1909; and it is proposed that this shall in future enter duty free. (b) Ferrotungsten.--This is a product in which the tungsten is alloyed with iron, for the sake of lowering its melting point, and marketing it in a form convenient for the manufacture of crucible tool steel. Ferrotungsten enters the United States at the present time under the following duties: 1. Valued at $200 per ton, or less. 25 per cent ad valorem. 2. Valued at over $200 per ton. 20 per cent ad valorem. The average duty imposed is therefore 224 per cent ad valorem on the assumption that equal quantities of ferrotungsten of a value above and below $200 per ton are imported. In future, it is proposed that a duty of 15 per cent ad valorem shall be imposed. (c) Tungsten metal.-On this material at the present time a duty is imposed of 25 per cent ad valorem for material under $200 per ton in value, and 20 per cent ad valorem for material over $200 per ton in value. For the sake of brevity, the average duty may be considered at 224 per cent ad valorem. In future it is proposed that a are duty of 15 per cent ad valorem shall be imposed. (d) Steel ingots.-Ingots of steel, out of which self-hardening steel tools may be made, are likely to contain from 5 to 20 per cent of metallic tungsten. At the present time this material enters under a graduated scale as follows: For the purpose of comparison, the flat duties now imposed are expressed in terms of percentages. Value: cent per pound or less, cent per pound (23.33 per cent). to 1.3 cents per pound, 0.3 cent per pound (23.07 to 40 per cent). 1.3 to 1.8 cents per pound, 0.5 cent per pound (27.77 to 38.46 per cent). Assuming that equal quantities of the ingots of the values referred to above are imported, the average ad valorem duty under the above schedule works out at a fraction over 25.5 per cent ad valorem. It is proposed to reduce the duty to 10 per cent We recognize that a general reduction of duty is in contemplation and present this statement only for the purpose of urging a more equitable grading of these reductions. Tungsten ore as sold is not like iron, manganese, and zinc ores, which are often shipped direct from the mine without treatment or concentration and have a gross value of from $10 to $75 per ton. Tungsten ore is usually taken from the ground containing an average tungstic oxide content of not over 4 per cent. From this point it is subject to a process of refining by crushing, grinding, and concentration which involves labor and material. The buyers of tungsten concentrates (refined tungsten òre) require a product guaranteed to contain not less than 65 per cent tungstic oxide, and the cost of obtaining this per ton of concentrates for the last three years operation of the Atolia Mining Co. has been about $306.60 per ton in labor and materials alone, exclusive of taxes, depreciation, amortization, and interest due on capital invested. On the ground that tungsten ore as sold, either in the form of concentrates or sorted ore (the latter form of product being the result of a large expenditure in labor, due to the necessity of mining a much greater tonnage than is shipped), we contend, on the plea of equitable treatment, it is working a hardship on the producer of tungsten to remove all protection on such so-called tungsten ore, if, at the same time, all the protection is not removed on the other forms in which tungsten can be imported. It is obvious that if the barrier on ore is lowered 100 per cent, the barrier on tool steel is lowered 60.78 per cent, and the barriers on tungsten metal and ferrotungsten ore lowered only 333 per cent, then this material will naturally flow into the country by the lowest channel and defeat any hope of increasing the revenue by the lowering of duties, in addition to making the producer of tungsten concentrates bear practically the whole brunt of adjustment. Since a general reduction of tariff is deemed advisable, and much new capital has been invested in all the stages of the manufacture of tungsten in the United States under the present status quo, we would urge that any reduction made be pro rata. To facilitate the import of tungsten ore without equally facilitating the import of the manufactures of tungsten will have the effect of cutting off from the producer in this country his logical domestic market and at the same time denying him access to foreign markets, which he might enter if foreign manufacturers were economically permitted to enter the domestic market of the United States. We think that the cost of producing merchantable tungsten ore has not been fully presented, and without asking any special consideration would urge on the ground of equity (1) That if it is proposed to place tungsten ore on the free list, on the ground of the advisability of admitting raw materials duty free, in line with the proposed removal of duty on zine ore and iron ore, then tungsten ore should be defined as a natural product not containing over 5 per cent tungstic oxide; or (2) If the proposed reduction is designed to form part of a general reduction, the duty on tungsten ore should be reduced only in the same proportion in which the duty on the products of tungsten is reduced. On the basis of the reduction from 224 to 15 per cent ad valorem, or 334 per cent reduction in all, as proposed on ferrotungsten and tungsten metal, an equitable reduction on tungsten ore would be from 10 to 6.6 per cent. In conclusion we would state that tungsten ore, as mined by us and by other producers in this country, has a gross content at best of about 4 per cent tungstic oxide and a recoverable value with tungstic oxide at the price of $7 per unit (1 per cent) of about $21 per ton, 25 per cent being lost in the process of recovery. This is a raw material and could be imported free of duty without seriously affecting any interests. On the other hand, tungsten ore, as marketed, costs at least $300 per ton to prepare, and in the proposed revision should be granted at least as much protection as any other manufactured article into which labor so largely enters. We are addressing a similar letter to Representatives from the other tungsten-producing States; but we trust that in view of the fact that we are not asking for any special protection you may find time to give this matter your personal consideration. Yours, very truly, ATOLIA MINING Co. The available statistics regarding tungsten-bearing ores and tungsten or wolfram metal and ferrotungsten show the following: Tungsten or wolfram metal and ferrotungsten assessed at 20 per cent. There are no statistics available to show the volume of importations of tungstenbearing ores prior to the enactment of the Payne tariff law. Under the tariff law of 1897 prior to June 20, 1903, tungsten ore was assessed at 20 per cent ad valorem under paragraph 183 as a metal unwrought or metallic mineral substance in a crude state. In Treasury decision 23091, G. A. 4936 (June 3, 1901), the Board of General Appraisers held that classification to be correct, and overruled the importer's claim that the ore was entitled to free entry under paragraph 614 as a crude mineral not specially provided for. Upon appeal the Circuit Court for the Eastern District of Pennsylvania affirmed the board's ruling (Hempstead v. United States, 115 Fed. Rep., 25), but upon further appeal the Circuit Court of Appeals for the Third Circuit reversed the decision of the circuit court and sustained the importer's claim for free entry under paragraph 614. (Hempstead v. Thomas, 122 Fed. Rep., 538.) And on June 20, 1903, in Treasury decision 24506, the Treasury Department acquiesced in that ruling. It is evident from the opinion of Judge Buffington and from the brief filed in the Hempstead case that the circuit court of appeals decided that suit upon the assumption that the variety of tungsten ore before the court was a crude material which had been subjected to no manufacturing process whatever and which was in the same condition as mined from the earth. This is an erroneous view, generally speaking, and one that may be very possibly shared by your honorable committee, judging from the proposition to put tungsten-bearing ores upon the free list. Inasmuch as the real facts are that these ores come into the market as refined tungsten or concentrates, as above defined, and inasmuch as this product undeniably involves a large labor expenditure, it would seem self-evident that some duty should be assessed upon it, and that the duty upon ferrotungsten, tungsten metal, and steel ingots should be graded accordingly. If it is proposed to place tungsten ore on the free list on the ground that it is a raw material, free entry should be limited to the crude ore not containing over 5 per cent of tungstic oxide. The variety of tungsten ore which is the result of an elaborate refining process and which is substantially imported, as the statistics show, should not escape duty altogether. An item of approximately $25,000 at the present 10 per cent basis deserves retention on revenue grounds alone. Respectfully submitted. ATKINS, KROLL & Co. STATEMENT OF J. L. BURRITT, OF ONTARIO KNIFE CO., FRANKLINVILLE, N. Y., REPRESENTING TABLE-CUTLERY MANUFACTURERS IN REGARD TO PARAGRAPH 154, SCHEDULE C. The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C.: I wish to supplement brief of table-cutlery manufacturers and oral testimony of my colleague on the committee representing the said manufacturers by submitting the following facts: 1. The figures of exports of table cutlery for past four years quoted by Mr. Kitchin showing a greatly increased export business during that period are incorrect, as I have ascertained by wire to-day. No such increase has occurred, and we will gladly submit figures from our books verifying that fact if you are interested and will so indicate. 2. If the figures given were correct, the largest figures given represent only about 5 per cent of our entire production. 3. Most of the table cutlery exported is sold by one firm whose main business is the manufacture of goods other than cutlery, and by means of their sales organization in Canada, Mexico, and South America they have been able to introduce and sell a |