PARAGRAPH 639-OILS. The national conference of soap manufacturers respectfully urges upon your honorable committee that these important ingredients entering into the manufacture of common laundry soaps should be free from duty. All of which is respectfully submitted. H. W. BROWN, of the Procter & Gamble Co., Chairman. W. H. WADHAMS, of B. T. Babbitt, Secretary. J. R. COLLINGWOOD, of Fels & Co. F. H. BRENNAN, of the N. K. Fairbank Co. Committee of National Conference of Laundry Soap Manufacturers. DRAFT OF RESOLUTIONS ADOPTED BY ALABAMA COTTON SEED CRUSHERS' ASSOCIATION. Whereas the cottonseed-oil industry is one of great magnitude, representing investments of approximately $100,000,000, employing hundreds of thousands of men and distributed over 13 States comprising an area of approximately one-fourth of the entire country; and Whereas the extra session of Congress to be called soon after March 4, next, is to be devoted principally to revising the tariff law of the United States; and Whereas hearings are now being held before the Ways and Means Committee of the House of Representatives to afford opportunity for the varied industries of the country to make known their wishes on tariff matters as affecting those industries; and Whereas the cottonseed-oil industry is deeply interested in the adjustment of tariffs on the raw materials used by it and on those on the finished products made in foreign countries which compete with the American products in American markets; and Whereas the industry is receiving, with respect to its finished products, discriminatory treatment at the hands of various foreign Governments; and Whereas the cottonseed-oil industry must depend for protection for its foreign trade upon administrative features of the United States tariff law: Now, therefore Be it resolved, That the Alabama Cotton Seed Crushers' Association strongly indorses the views set forth in the memorandum hereto attached respecting the needs of the cottonseed-oil industry as to tariffs. Be it further resolved, That it is the sense of this organization that the matter of providing in a revised tariff law some practical method whereby it will be possible for the United States Government to properly protect the trade of its manufacturing industries in foreign markets is of most serious import and is entitled to receive the most deliberate and careful consideration by the Ways and Means Committee and of Congress. Be it further resolved, That a copy of these resolutions be spread upon the records of the Alabama Cotton Seed Crushers' Association and that copies be forwarded to each member of the Ways and Means Committee of the United States House of Representatives. Attest: C. E. MCCORD, Secretary. CHAS. A. CANEY, President. TARIFF REVISION-SUGGESTIONS AND RECOMMENDATIONS. SCHEDULE A.-Chemicals, oils, and paints. Caustic soda.-Present duty, one-half cent per pound. The cottonseed-oil industry uses large quantities of alkalies of various kinds, and, inasmuch as it enters as a raw material into the manufacture of cottonseed-oil products, it is desirable there should be secured a reduction in the duty. Soda ash.--Present duty, one-fourth cent per pound. Edible olive oil.-Present duty, 50 cents per gallon. Edible olive oil competes with cottonseed oil for all edible purposes, and should, therefore, be given no advantage over cottonseed oil. The strongest reason, however, why the duty on olive oil should not be lowered is that Italy discriminates against American cottonseed oil by imposing a surtax of 20 francs per 100 kilos on American cottonseed oil over other edible vegetable oils, all of which compete to the same degree with the Italian product of olive oil. PARAGRAPH 639-OILS. SCHEDULE B.-Earths, earthenware, and glassware. Fuller's earth.-Present duty, crude, $1.50; wrought, $3 per ton. If a decrease in duty can not be secured the commodity ought to be left at the present rate. SCHEDULE C.-Metals and manufactures of. Cotton ties.-Present duty, three-tenths cent per pound. They should go on the free list the same as binding twine for farmers. Tin plates.-Present duty, 1.2 cents per pound. The article of tin plate is an important one for the cottonseed-oil industry. Any reduction that can be secured in the rate of duty on these plates will be of material benefit, because the item of tin plates for the manufacture of containers for oil is of considerable magnitude. SCHEDULE G.-Agricultural products and provisions. Soya beans.-Present duty, 40 cents per bushel. If soya beans could be brought in duty free, they could be used to prolong the operating season of the crushing mills and refineries. The oil made from them is becoming a large factor of raw material for soap making. There is no reason why there should be a duty on the beans since the oil crushed therefrom in England and on the Continent is admitted free. Lard.-Present duty, 14 cents per pound. The cottonseed-oil industry is opposed to such a proposition, since if the duty on lard were reduced, or if it were placed upon the free list, the result would be to furnish keen competition with edible and cooking fats containing large percentage of cottonseed oil. There is the additional danger, if the duty is decreased, that the American market may be flooded with inferior lard now produced in China in great quantities. SCHEDULE J.-Flax, hemp, and jute, and manufactures of. Fabrics of jute for fertilizer bags, cake sacks, meal sacks, and hull sacks.-Present duty, seven-eighths cent per pound and 15 per cent ad valorem. The item of fertilizer bags, cake sacks, meal sacks, and hull sacks is of material magnitude in connection with the cottonseed-oil industry. As a raw material the duty should be lowered. Bagging for cotton.-Present duty, six-tenths cent per square yard. Not only as affecting the cottonseed-oil industry, but as of material importance to the entire cotton industry, free bagging should be had for cotton. There is the same reason for giving southern cotton planters free bagging for their cotton as exists for giving farmers free binding twine. SCHEDULE K.-Wool and manufactures of. Camel's hair and gray wool for manufacture of press cloth.-Present duty, 7 cents per pound. Press cloth is made in the United States from camel's hair or gray wool or both. A reduction in the duty on these raw materials will probably in turn result in a reduction to the cottonseed-oil industry of the price of press cloth. Camel's-hair press cloth.-Present duty, 7 cents per pound. The need for the cloth at a fair price appeals to the industry as a reasonable excuse for asking the duty be decreased or removed. Free list. Oleo stearine-Duty free. Oleo stearine is used in large quantities in the manufacture of lard substitutes. The free importation of foreign stearine has acted to prevent absolute control of the price by domestic manufacturers. The cottonseed-oil industry strongly urges the retention of oleo stearine on the free list. Soya-bean oil.—Duty free. If soya beans are placed upon the free list, there ought to be a duty on the oil. The cottonseed-oil industry urges a duty of one-fourth cent per pound. ADMINISTRATIVE FEATURES. The industry strongly urges that in the administrative features of the new tariff, provision be made whereby its trade in foreign markets may be protected. It is on this feature of a tariff law that the cottonseed-oil industry must depend for protection for its export trade. The "maximum and minimum" provision of the existing law is universally recognized as a retaliatory measure too large to be practically used in isolated cases of discrimination against American products. Absolute breaking off of trade relations PARAGRAPH 639-OILS. between the United States and any foreign country on account of isolated cases of discrimination would, in substantially no case, be justified, either from the standpoint of American exporters of other goods than those discriminated against or importers of goods from the discriminating countries. To illustrate: Previous to about six years ago exports of American cottonseed oil to Austria-Hungary aggregated annually about $5,000,000. The duty on the oil was suddenly increased from 9 to 40 francs per 100 kilos, all other oils being admitted at 15 francs, except olive oil, which is dutiable at 4 francs. Despite repeated efforts on the part of the United States Government which are continuing, Austria-Hungary, unmindful of official assurances of equalization of duties, still maintains the prohibitive duty on cottonseed oil. Not a hundred barrels of cottonseed oil have gone into that country during the past six years, and none is expected to that market to-day. The loss of the industry has been approximately $30,000,000. The annual exports of America to Austria-Hungary aggregate approximately $100,000,000 and the annual imports to the United States therefrom about the same. The Government of the United States would manifestly not be justified in breaking off all trade relations between the two countries in view of the interests of other American exporters to Austria-Hungary, and of American importers therefrom. This Government has for many years been, and still is, active in behalf of the cottonseed-oil industry's foreign trade; and there appears no reason to believe this position will undergo any change. A number of other cases of discriminatory tariff treatment exists, to wit: Italy imposes on cottonseed oil a surtax not imposed on other edible vegetable oils, all of which compete with the native olive oil. The Government of Argentina recently proposed to advance the duty on cottonseed oil over that on the other edible vegetable oils. The Government of Uruguay recently increased the duty on cottonseed oil without a corresponding increase on other vegetable oils. Foreign countries are, of course, recognizing the weakness of the present "maximum and minimum" provision in the United States tariff law, and will doubtless not fail to take advantage thereof, as has been done in the countries referred to above. All American exporting industries will doubtless as time goes on-unless some certainly practical method is written into the law for the protection of American foreign trade continue to suffer from discriminatory treatment at the hands of foreign Governments. The production of cottonseed oil for any given year is too large for purely home consumption and must, therefore, be disposed of in foreign markets. Hence the importance of not only reopening markets it has heretofore had, but of their extension into new fields. In view of the fact that nothing seemingly more reasonable has thus far been proposed, the representatives of that industry feel justified in strongly directing the attention of the Ways and Means Committee to the method proposed at the last session by the Secretary of State. That official in view of the isolated cases of discrimination not justifiably to be met by applying the present remedy, recognized the impracticability of that remedy. He recommended-and this recommendation was repeated by the President to Congress in his message of December 3, last-that the existing "maximum and minimum" be modified so as to permit the Executive, instead of applying the maximum rate to all commodities from the offending country, to select from the list of articles exported therefrom one or more important ones upon which there might be imposed an additional duty as a retaliatory measure. The cottonseed-oil industry strongly urges the Ways and Means Committee to keep steadily in mind the importance of providing some method by which their foreign trade may be properly cared for. (Briefs similar to above were filed with the committee by the American Cotton Oil Co., the Tennessee Cotton Oil Co., and others.) PARAGRAPH 639-OILS. J. J. CULBERTSON, PARIS, TEX., SUGGESTS CHANGE OF RATE ON SOYA-BEAN OIL. THE INTERSTATE COTTON SEED CRUSHERS' ASSOCIATION, Hon, OSCAR W. UNDERWOOD, We DEAR SIR: This schedule embraces an article, soya-bean oil, which comes into competition with American cottonseed oil in this and other countries. The imports of such into the United States have grown until the quantity now amounts to about 100,000 barrels per annum, the article having free entry under paragraph 639 of the act of 1909. As a consequence, this Government derives no revenue thereon. think, under the conditions, that the proposition to place a duty of 11 cents per pound under H. R. 20182 should be carried. And the soya bean (which comes under agricultural products and provisions), which carries a duty of 45 cents per bushel under paragraph 249 (unless such would come under paragraph 266, in which event the duty would be 25 cents per bushel), should have such duty materially reduced or totally abolished, in order that the American oil manufacturers may become able to produce the oil thereof, as under the present conditions the Government does not derive any revenue thereon on account of the present prohibitive duty, nor is the American oil manufacturer able to produce such for the same reason. We believe, therefore, that the best interests of the American manufacturers of oil from oleaginous seeds and beans would be best served if your honorable committee can see its way clear to suggest such change. Respectfully submitted. J. J. CULBERTSON, Chairman. Hon. OSCAR W. UNDERWOOD, WASHINGTON, D. C., January 31, 1913. Chairman Ways and Means Committee, Washington, D. C. SOYA-BEAN OIL. DEAR SIR: The import of this article into this country last year amounted to about 100,000 barrels. It produced no revenue. The bean from which it is produced is grown in Manchuria and China. The quantity grown there is annually about one and one-half million tons, of which about 60 per cent is exported direct to European countries where the bean has free entry. The absolutely prohibitive duty of 45 cents per bushel in the United States throws all this business into the hands of foreign manufacturers. This condition, of course, operates against the crushing industry of this country, whereas with the duty abolished on the soya bean a slight duty on the oil-say, onehalf cent per pound-which would about cover the difference in cost of production at home and abroad, would permit its manufacture in this country. Duty-free soy beans would enable the seed-crushing industry to crush them without any change in their machinery and would enable the oil mills to extend their period of cottonseed crushing from the present average of about six months per year to longer periods, thus benefiting the labor employed, reducing overhead charges, and consequently benefiting the Southern farmer, in that such lessening of cost of operation would enable the crushers to pay increased prices for cotton seed. Soy-bean oil is used similarly to low-grade cottonseed oil in the manufacture of soap. Although not in the same degree as high-grade cottonseed oil, it is likely to become an edible oil. Indeed, improvements in refining have recently shown that it can be used in limited quantities for such purpose." Inasmuch as the American oil mills have abundant capacity and ample idle periods to produce what soy-bean oil is needed in the United States, the association we represent and the entire cottonseed-oil producing industry feel justified in asking your honorable committee to report to the House of Representatives such measures as will give to American crushers a fair chance to enjoy an equal advantage with those of Europe, which would follow the abolition of the present duty of 45 cents per bushel on soy bean. The countries which have high or prohibitive duties against American cottonseed oil are enabled (under existing favorable conditions relative to tariff on soy beans) PARAGRAPH 639-OILS. to manufacture and import into our country, duty free, soy-bean oil, which now comes, and promises to still more greatly come, into competition with American cottonseed oil. OLEO STEARINE. Duty free. Oleo stearine is used in large quantities in the manufacture of lard substitutes. The free importation of foreign stearine has acted to prevent absolute control of the price of domestic manufacturers. Not only has free oleo stearine acted to prevent such control, but the availability of the supply of the foreign product has enabled the manufacturers of lard substitutes to put those substitutes on the market at less cost to the consumer, and has thus kept down the price of lard. The importance to the cottonseed oil industry of retaining upon the free list oleo stearine can not, perhaps, be more forcefully set forth than in the argument hereto attached, marked "Exhibit A." ADMINISTRATIVE FEATURES. It is on the administrative features of the tariff law that exporting industries must depend for protection for foreign trade. Having in mind this fact, we, representing the Interstate Cottonseed Crushers' Association and speaking as well for the cottonseed oil industry as a whole, beg to respectfully direct the earnest attention of yourself and your honorable committee to the following statement: The provisions of existing law are now recognized as impracticable for use in isolated cases of discrimination against American products. Six years ago exports of American cottonseed oil to Austria-Hungary amounted annually to about $5,000,000. The duty on the oil was then increased to 40 kronen per 100 kilos, while other oils were kept at 15 kronen, except olive oil, which is dutiable at 4 kronen. The result is that no cottonseed oil is exported to that market to-day. The United States Government has for years been active in behalf of the cottonseed oil industry's foreign trade. Notwithstanding this, Italy imposes on cottonseed oil a surtax not imposed on other edible vegetable oils, all of which compete with the native olive oil. Argentina has recently proposed to advance the duty on cottonseed oil over that on other edible vegetable oils; Uruguay recently increased the duty on cottonseed oil without a corresponding increase on other vegetable oils. Foreign countries recognize the weakness of the "maximum and minimum" provision in the existing tariff law. Unless some certainly practical method is written into the law for the protection of American foreign trade, all American exporting industries will suffer discriminatory treatment at the hands of foreign Governments. The cottonseed-oil industry expresses no preference of method by which the end desired shall be reached. It feels justified, however, in directing your earnest attention to the method recommended by the present Executive to Congress, in a message dated December 3 last-that the provisions of the existing law be so modified as to permit the President to select from the list of articles exported from the offending country to the United States one or more important ones upon which there might be imposed retaliatory duties. Concerning the effect upon the cottonseed-oil industry if insufficient attention be given to the preservation and extension of its foreign markets: This industry is to-day exporting large quantities of oil. It does not sell in foreign markets at prices below those at which it sells at home. The domestic price for the oil is naturally whatever the demand justifies, while the foreign price is the current domestic price plus freight and insurance. Cottonseed oil is an active competitor in foreign markets with olive and the other edible oils, even in countries where the production of the other oils is greatest, and notwithstanding the difference in cost of labor and production. The oil occupies a most unique position in the world's markets for edible vegetable fats. Practically no high-grade edible cottonseed oil is made anywhere than in the United States or from any but American seed. In Africa, Eastern Europe, and Asia considerable quantities of cotton are raised and corresponding amounts of seed produced. Most of this seed is crushed in England. The oil produced therefrom is not of high-grade edible quality, but is used principally in the manufacture of soap. Production of high-grade edible cottonseed oil being then a practically exclusive American industry, the position this Government has taken and consistently maintained is entirely justifiable and correct. That position is that the welfare of the cottonseed-oil industry in foreign markets should be carefully guarded; that the oil, being entirely pure and wholesome for all edible purposes, is entitled to and should |