thought to any brief that it would be desirable to submit to the committee at Washington, and the time allotted for such purpose is entirely inadequate. We request that you submit this letter to the Ways and Means Committee at the same time as you may submit briefs on any matters submitted by the association. We remain, yours, truly, CHAS. PFIZER & Co. (INC.), JOHN ANDERSON, Treasurer. EDW. MALLINCKRODT, President. NEW YORK QUININE AND CHEMICAL WORKS, POWERS-WEIGHTMAN-ROSENGARTEN Co., H. B. ROSENGARTEN, President. NEW YORK, November 19, 1908. SULPHATE OF AMMONIA. HON. J. KALANIANAOLE, DELEGATE FROM HAWAII, ASKS THAT SULPHATE OF AMMONIA, USED IN THE MANUFACTURE OF FERTILIZERS, BE FREE OF DUTY. WASHINGTON, D. C., December 3, 1908. COMMITTEE ON WAYS AND MEANS, Washington D. C. GENTLEMEN: In the interest of the farming classes, foreign manufactured fertilizers are admitted free of duty. Sulphate of ammonia constitutes one of the important elements in the manufacture of both foreign and domestic fertilizers. It is the only material in chemical fertilizers that is subject to duty. Paragraph 5 of the Dingley Act imposes a duty of $6 per ton on sulphate of ammonia. The result is that the American manufacturer of fertilizers is denied a free raw material necessary for the making of a duty-free commodity. Fertilizers are duty free; but the material required for its manufacture is made to pay a duty. To correct this discrimination against American manufacturers, it is asked that there be added to paragraph 5 of the existing law a clause similar to the following: The Secretary of the Treasury is directed to repay, under such regulations as he may prescribe, to manufacturers the amount of duty paid upon sulphate of ammonia used in the manufacture of agricultural fertilizers." Some such correction is necessary in order to remove the discrimination in favor of foreign fertilizers and against those of American manufacture. Such a provision would both benefit the farmer who buys fertilizer and enable American manufacturers to displace a larger portion of the fertilizers now imported. J. KALANIANAOLE, Delegate from Hawaii. VANILLIN. THE VERONA CHEMICAL COMPANY, OF NEWARK, N. J., URGES THAT SPECIFIC DUTY ON VANILLIN BE NOT REDUCED BELOW 25 CENTS PER OUNCE. Mr. SERENO E. PAYNE, NEWARK, N. J., December 3, 1908. Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: Supposing that the tariff on vanillan will also be considered during the present session, we beg to call your attention to the following: We are manufacturers of vanillin and at present have over $50,000 invested for the production of this article alone, so that the committee will appreciate the fact that a just ruling—that is, one commensurate with the conditions-is of the utmost importance to us. The present selling price in the United States is from 32 to 35 cents per ounce. In Europe vanillin sells for about 23 to 25 cents per ounce. If the latter prices prevailed in this country it would be impossible to continue the manufacture without a loss, as was proven when about a year ago the most reckless competition forced the selling price down to 25 cents per ounce, and two or three manufacturers were compelled to discontinue. The difference in cost of production of vanillin between Europe and the United States is due to several facts. Besides the higher cost of labor and the higher outlay for general expenses, such as insurance, gas, water, etc., the cost of materials necessary for production of vanillin are from 20 to 30 per cent higher here than abroad. Further, it must be remembered that the three or four American manufacturers are limited, by this higher cost, to the consumption of the United States, which is probably somewhat over 500,000 ounces annually, while we know of one factory alone in Germany making double this amount. This has an influence of far-reaching importance on the cost of production here, since the manufacturer's fixed charges remain practically the same whether his output is 200,000 ounces or four times that amount. We regard it of the utmost importance that the entire quantity of vanillin for consumption in the United States be manufactured in this country, because vanillin was one of the first of the fine chemicals produced in the United States, and it would be a serious blow to the advance of the fine chemical industry in this country if the duty is lowered to a point where importation will be possible. Competition among the American manufacturers does not permit a higher price than 32 to 35 cents per ounce, which is considered by all, whether manufacturer, dealer, or consumer, to be very fair and moderate. The effectual preservation and conservative encouragement of the American manufacturer requires a continued specific duty on vanillin of not less than 25 cents per ounce. It may then be stated that the opportunity for the collection of revenue for the United States is excluded, but this argument can be met by stating that we already pay a duty of 25 per cent on two or three of the materials used in the manufacture of vanillin, so that, indirectly, the Government obtains revenue proportionate to the amount produced, which is all that should be expected and desired. Very respectfully, yours, VERONA CHEMICAL CO., VANILLIN, FINE ORGANIC CHEMICALS, AND PERFUME MATERIALS. THE OZONE-VANILLIN COMPANY, OF NIAGARA FALLS, N. Y., ASKS THAT PRESENT DUTY ON VANILLIN AND OTHER CHEMICAL PRODUCTS BE RETAINED. NIAGARA FALLS, N. Y., December 2, 1908. Hon. SERENO E. PAYNE, Washington, D. C. DEAR SIR: As manufacturers of vanillin, fine organic chemicals, and perfume materials, we ask broadly that the present duties on such products be continued and, in particular, the specific duties. Since vanillin is specially mentioned in the present tariff, we presume that it will fall under your notice in the course of your investigations, and we therefore ask that the specific duty on this product be maintained. In support of our request we beg to submit the following particulars for your consideration: Vanillin is the flavoring principle of the well-known vanilla bean. The raw material used for its production is oil of cloves, and the product is identical in every respect to that existing in the natural bean. Owing to the extensive use of vanilla flavoring there is a relatively good demand for vanillin, and consequently much money, brains, and skill have been devoted to its manufacture, until what with improved processes and competition the price has declined from about $5 to 32 to 35 cents per ounce, which is now the present selling price. Domestic competition in the article has been very keen during the past three years, and last year the product was sold at an actual loss. At the present price several of the manufacturers have discontinued work, since it is only by the employment of the very best processes and plant that it is possible to make a profit now. The successful production of the article demands very skillful and capable supervision and the best class of workmen. Workmen skilled in organic chemical work are hardly to be found here, and therefore intelligent men have to be selected and trained for the work, which is a matter of considerable time and expense. In Europe all the smaller manufacturers have been weeded out by competition and the product is manufactured by three or four large corporations who possess the following advantages over the domestic manufacturer: 1. Considerably less initial expense for plant and installation charges. 2. An abundant supply of commercial, skilled, professional help and trained workmen at less than half the cost of intelligent but unskilled help here. 3. Cheaper chemicals. 4. More facilities for disposing of their by-products. 5. Numerous patents from which they derive very handsome profits and which enables them to cut prices below cost upon articles of which they have no monopoly should they deem it expedient. 6. Larger production. 61318-TARIFF-No. 27-08- -12 In such circumstances, without a specific duty, the American manufacturers can not compete with the foreign firms, and we earnestly urge that if any change be made a duty of not less than 25 cents per ounce be placed on the article. The number of first-class installations already erected in this country insures the protection of the domestic consumer, as the limited consumption here makes each manufacturer very keen to secure business. Closely related to vanillin is heliotropin, or artificial heliotrope, for which there is a fair demand and which can be manufactured by the same plant and process as vanillin. The raw material for this product is camphor oil, or safrol, a body obtained from the camphor oil by a simple refrigeration process. Both these products of the camphor tree pay 25 per cent duty, while the other product, crude camphor, is admitted free, a somewhat anomalous condition. Since the duty on the finished heliotropin is only 25 per cent ad valorem, the duty on the raw material makes it impossible for us to compete with the foreign manufacturer, although we have a plant and process equal to anything abroad for the production of the article. Safrol is extensively used for perfuming the cheaper soaps and is the chief constituent of sassafras oil, and we suppose the duty was placed upon it to assist the domestic sassafras oil industry. If so, it can hardly have been of any assistance, as the present quotations for artificial and natural sassafras oil clearly show: Sassafras oil, natural, 55 to 70 cents per pound; sassafras oil, artificial, 32 to 33 cents per pound (made from camphor oil). We therefore ask that both camphor oil and safrol be placed on the free list with the other oils of foreign origin. If from a revenue standpoint the above request be not acceptable, we would respectfully suggest that a duty on all artificial flower oils now admitted free would be more in keeping with the purpose of the act and produce more revenue, since these artificial oils, notably attar of rose, jasmine, neroli, etc., are being imported from abroad in increasing quantity and United States patents have been obtained in several cases covering their manufacture. With regard to medicinal preparations containing alcohol or in the preparation of which alcohol is used, we earnestly ask that the present specific duty of 55 cents per pound or 25 per cent ad valorem be maintained. Until permission was granted to use specially denatured alcohol it was impossible to manufacture such products here, but now a large field in the organic chemical industry has been opened up for American enterprise which we wish to take advantage of. According to information before us, specific duties in the past have encouraged the manufacture of the various products here and the installations erected have served as nuclei for the production of other articles previously entirely manufactured abroad. We trust, therefore, that our application for the maintenance of the duties, etc., will have your favorable consideration. Yours, very respectfully, E. C. SPURGE, Manager. |