PARAGRAPH 65-MEDICINAL PREPARATIONS. letters patent, where the exclusive right of manufacture is vested in the patentee. Where the patented article is manufactured in Europe the cost to the American consumer is unnecessarily 25 per cent higher through the present rate of duty. In such a case obviously the consumer pays the duty and can obtain the article only from the patentee, as no one in this country can legally manufacture it. As a matter of fact, the duty of 25 per cent is in actual practice 30 per cent, as no importer would care to handle foreign-made articles on a margin of less than 5 per cent. The result is that American manufacturers can and do keep their prices more than 30 per cent above European parity. A reduction of the rate to even 10 per cent would still be ample protection to the American manufacturer, and would also discourage many of them from advancing their prices more than 15 per cent over those of Europe. It is confidently believed that under an average rate of 10 per cent the Government would derive more revenue than it does at present, and it would seem reasonable to expect that such a reduction in the tariff would result in lower prices on American-made articles and will leave a handsome margin of profit. Here, again, the consumer will be the gainer. With regard to the rate on preparations in the manufacture of which alcohol is used, it is important to remember that the internalrevenue tax on denatured alcohol was abolished some time ago. Hence the present customs duty on preparations of this character would seem to be as unnecessary as it is antiquated. Surely no competition need be feared, inasmuch as denatured alcohol is produced in this country at a lower cost than in Europe. We thoroughly appreciate the diffculty of adjusting tariff duties upon a basis that will meet the approval of all commercial interests without discriminating against any particular industry or geographical section of the country. When the rate of duty can be lowered without the probability of profitable foreign competition, without danger of reducing wages, but, on the contrary, to lower the cost to the consumer, plain business principles, simple justice, and the welfare of the public, aside from any political advantage that might reasonably be expected, would seem to demand that that change be made. Please accept our high appreciation of your courtesy in considering the suggestion herein set forth, and believe us, Very truly, yours, BAUER CHEMICAL CO., By T. W. HEHMEYER, Resident Manager. BRIEF SUBMITTED BY JACOB WEIL, NEW YORK CITY. Hon. OSCAR W. UNDERWOOD, Chairman Ways and Means Committee, DECEMBER 21, 1912. House of Representatives, Washington, D. C. DEAR SIR: As chairman of the committee on public health in the board of aldermen in this city, New York, I kindly request you and your honorable body, in connection with the chemical schedule in the PARAGRAPH 65-MEDICINAL PREPARATIONS. proposed tariff bill, to put medicinal malt preparations containing no alcohol on the free list. All medicinal malt preparations that contain no alcohol are used in marasmus and atrophy cases in infants. These diseases exist principally amongst the poorer classes through malnutrition. Most of these preparations are used in children's hospitals supported by benevolent and charitable organizations. Therefore, I ask you and your honorable body in the name of these institu tions not to tax them or the sick infants for an article that can not be obtained here, and which does not conflict or compete with any goods manufactured in this country. These malt preparations containing no alcohol have been in use as infant food for about 14 years in the United States with such good results as you yourself can see from the report of Dr. W. H. Guilfoy, registrar of the department of health of the city of New York. Deaths and rates per 1,000 children living under 1 year of age: If we compare the rate of 1898 with that of 1911, we obtain a decrease of slightly over 40 per cent. If we compare the rate of 351 per 1,000 for the months of July, August, and September, of the year 1898, with the rate of 145 per 1,000 for the corresponding months of the year 1911, we find a decrease of almost 60 per cent. Now, if you and your honorable body will consider the mortality of infants before these medicinal malt preparations containing no alcohol were imported, you readily can realize what great good has been accomplished through the use of them. And as they are mostly consumed by the poor and by charitable institutions, you can clearly see what a true humane act it would be to allow these medicinal malt preparations containing no alcohol to be admitted duty free. As I have stated before, as I am chairman of the committee on public health and a member of the committee on public charities, besides being interested in many charitable institutions, I am in a fit position to see what a great public benefit it would be. Therefore, gentlemen, I pray that you will give this your favorable consideration. Very respectfully, yours, JACOB WEIL. BRIEF OF YAHR & LANGÉ DRUG CO., MILWAUKEE, WIS. HON. OSCAR W. UNDERWOOD, House of Representatives, Washington, D. C. DEAR SIR: We wish to call your attention to a proposed change in the tariff on chemicals, and to supplement the facts presented to the Ways and Means Committee by Mallinckrodt Chemical Works PARAGRAPH 65-MEDICINAL PREPARATIONS. of St. Louis. The present duties of 25 per cent ad valorem are not sufficient to overcome the lower cost to foreign manufacturers, and if these rates are reduced, the importation of foreign chemicals, principally from Germany, which has been steadily increasing for years, will compel American manufacturers to discontinue the manufacture of many articles they now produce. We believe that a reduction on medicinal chemicals would not benefit the ultimate consumer, the sick, as the cost of the ingredients in physicians' prescriptions bears little relation to the price charged for compounding the same. The purity of American-made chemicals we believe to be vastly superior, as a rule, to that of like chemicals imported from abroad. American manufacturers of chemicals employ a large number of chemists and skilled workmen, to whom good wages are paid. A reduction of the present duties would probably inflict a material loss not only on the manufacturer, but would cause a reduction of wages and throw a good many workmen out of employment. To our mind, apparently nothing can be gained by a reduction in duties on medicinal and fine chemicals, and we believe a retention of present duties is both rational and in the general interests of the public. We submit this statement for your careful consideration, believing that you are interested in the prosperity of our own people, rather than to discourage home manufacturers, and to cause them a loss, and to inflict a loss (through their being thrown out of employment), upon our own people also, the American workers. Respectfully, YAHR & LANGÉ DRUG CO., By L. A. LANGÉ. BRIEF OF THE J. W. CROWDUS DRUG CO., DALLAS, TEX. DALLAS, TEX., January 31, 1913. The Chairman and Members Ways and Means Committee, Washington, D. C. GENTLEMEN: As large distributors of medicinal and fine chemicals, we take the liberty of submitting the following in connection with the pending revision of the tariff: We assume that the object of the revision is, first, to secure revenue; second, to reduce the cost of necessities to the general public and ultimate consumers; third, to protect American workmen and, as far as consistent, invested capital, and to encourage the development of American industries. The duties paid on importations of chemicals in the year 1911 amounted to $834,494. The importation of medicinal and fine chemicals has steadily increased for years, and we believe will continue to increase under present rates of duty. We believe that a reduction of the present rates of duty, particularly of the general clause of 25 per cent ad valorem, while stimulating importations and curtailing the manufacture in this country to the detriment of American interests, would not materially, if at all, increase the revenue. PARAGRAPH 66-PLASTERS. A reduction of duty on medicinal chemicals would not benefit the ultimate consumer, the sick, as the cost of the ingredients in physicians' prescriptions bears little relation to the price charged for compounding the same by the pharmacist. The purity of medicinal chemicals is of far greater importance to the patient than any possible small advance in cost, and we believe the American manufacturers offer a greater security and protection to the jobbing druggist, pharmacist, physician, and patient than could be expected from foreign importers or representatives of foreign manufacturers. American manufacturers of medicinal and fine chemicals have large investments in plants and employ a large number of chemists and skilled workmen. The industry in this country is still backward compared with foreign countries, notably Germany. A reduction of present rates would probably inflict material losses on American manufacturers, cause a reduction of wages, and throw many workmen out of employment, whereas a continuance of the 25 per cent ad valorem rate and other special duties would doubtless tend to further development, increased employment, and the promotion of prosperity. As apparently nothing can be gained by a reduction of duties on medicínal and fine chemicals, a retention of present duties would seem rational and in the general interest. Submitting the above for your careful consideration, we are, PARAGRAPH 66. THE J. W. CROWDUS DRUG Co., Plasters, healing or curative, of all kinds, and court-plaster, twenty-five per centum ad valorem. PLASTERS. BRIEF OF JOHNSON & JOHNSON, BRUNSWICK, N. J., ON PLASTERS, ETC. Plasters.-Paragraph 66, tariff act of 1909, imposes a duty upon plasters, healing or curative, of all kinds, including court-plaster, of 25 per cent ad valorem. We presume this also covers adhesive plaster, the use of which is very largely mechanical, whether used in the arts or by the surgeon. The duty under former acts has been as high as 35 per cent. Under the so-called Underwood bill--H. R. No. 20182, paragraph 55plasters, healing or curative, of all kinds, and court-plaster, 15 per cent ad valorem. A reduction of 10 per cent. By the Underwood bill, paragraph 19, pills, tablets, lozenges, troches, or similar forms of medicine are to be made dutiable at not less than 25 per cent ad valorem. Our contention is that plasters, pills, tablets, ointments, fluid extracts, tinctures, etc., should bear the same rate of duty. That the Underwood bill, making this difference, puts the manufacturer of medicinal plasters at an unfair disadvantage; that is to say, the maker of a belladonna ointment, or belladonna pill, or belladonna extract would be protected by a duty of 25 per cent, but PARAGRAPH 66-PLASTERS. the maker of belladonna plasters would have a duty of only 15 per cent. It would simplify matters if the word "plasters" was to be inserted in paragraph 55 of H. R. No. 20182, introduced February 15, 1912, or in similar tariff bills. There is no good reason why plasters should have ever been separated from other preparations of the same character. In considering the rate of duty the following should be borne in mind: In a number of countries in introducing plasters, medicinal and otherwise, we are confronted by a heavy protective duty. For example, Germany. In Germany there are some 30 makers of medicinal plasters of fairly respectable size, and about 100 small and large. The duty upon our own plasters in Germany ranges from 25 to 60 per cent. By the Underwood tariff the German manufacturers could introduce their plasters into the United States at 15 per cent duty. Our plasters in Germany would be subjected to a minimum rate of 25 per cent. The German manufacturer would also have an advantage in the way of certain kinds of raw material used in the preparation of these articles, and a great advantage in the way of labor. Hospitals. We understand that an effort will be made to revive the movement of 1909 whereby medicinal and surgical instruments, appliances, and apparatus imported by and for the use of hospitals and other institutions shall be admitted free. One great objection to this course is the fact that a great number of hospitals throughout this country are private or semiprivate institutions charging fees for treatment given. Only a minor number give treatment without pay, the latter being municipal or State institutions supported from city or State funds derived from the American taxpayer. Under the proposed amendment they would be able to import all supplies free of duty. Many physicians and surgeons obtain their medical and surgical supplies for use in private practice from hospitals with which they are connected. Should foreign goods for hospital use secure entry free of duty, this would have a serious effect upon American industries. The American factories devoted to the preparation of medicinal and surgical apparatus, utensils, instruments, and preparations have been built up by large investments, supplemented by devotion to scientific study, expert knowledge, mechanical and chemical skill, and have attained the highest development in the art of preparing these supplies. These industries are of great importance to the municipal, State, and Federal governments in time of peace and of utmost importance in the time of war. This alone should urge that they were entitled to a consideration. JOHNSON & JOHNSON. NEW BRUNSWICK, N. J. |