APPENDIX. SCHEDULE 1.-CHEMICALS, OILS, AND PAINTS. WHITE ARSENIC. [Paragraph 1.] STATEMENT OF WILLIAM LOEB, JR., VICE PRESIDENT AMERICAN SMELTING & REFINING CO., NEW YORK CITY. Mr. LOEB. Mr. Chairman and gentlemen of the committee, I appear before you this afternoon as spokesman for the producers of arsenic oxide, or white arsenic. The present House bill provides for a duty of 25 per cent ad valorem on white arsenic. The production in the United States in 1920 amounted to 10,260 tons. The imports for the same year amounted to 4,050 tons. The cost of production in the United States was 6 to 7 cents f. o. b. plants. In foreign countries the cost of production is unknown; but in view of the fact that our principal competition is with Mexico, Australia, Germany, and Japan, and that in all of these countries except Australia the production costs are generally very much lower than the cost of production in the United States, we estimate that the cost of production in Japan and Germany is not over 3 cents a pound, and somewhat higher in Mexico. Senator MCCUMBER. That is per pound of what? Mr. LOEB. White arsenic. The present market price is 61 to 7 cents delivered to buyer's works in carload lots, or approximately 53 cents per pound f. o. b. producing plants. Arsenic is used principally in the manufacture of glass, Paris green, and insecticides. Arsenic is produced in this country primarily as a by-product. If the price is high enough to give a reasonable margin of profit the arsenic is recovered. If the price is not high enough to give such a reasonable profit, the arsenic content is wasted. Senator SMOOT. Are you speaking of sulphide of arsenic? On the general theory that the country is interested in conserving its raw materials, we believe the price of arsenic should be high enough to warrant its recovery as a by-product. A sales price of 4 cents or 5 cents a pound will not warrant its recovery, whereas a sales price of 7 cents or 8 cents a pound will, in our opinion, warrant its recovery. We are asking for a specific duty of 3 cents a pound, instead of an ad valorem duty of 25 per cent as now proposed. In addition to the reasons set forth for this request, we beg to point out that an ad valorem duty of 25 per cent will not, in our opinion, result in any material protection for the following reasons: Assume that the price of arsenic in Germany and Japan is 3 cents a pound and the price in this country is 7 cents a pound: The ad valorem duty based on 7 cents a pound would be 12 cents a pound, which would mean that the Germans and Japanese could sell their arsenic at a net of 5 cents a pound delivered in this country. By holding their price somewhat under 5 cents per pound they could still net in Germany and in Japan a very handsome profit over their domestic price and cost of production. This would, without doubt, force the American producers to lower their price, and this process could be repeated so that in each stage of the reduction a lower duty would be assessed against foreign arsenic. As a matter of fact, arsenic is being offered from Japan in New York at 5 cents a pound. American producers will desire protection when the price is under 7 cents a pound, and do not need protection when the price is over 8 cents a pound, based on current costs. We therefore ask for a specific duty of 3 cents a pound. (Mr. Loeb submitted the following data:) United States production. Imports.-Figures of imports for the prewar years are not available but they were practically nothing. Recent importations have been in considerable volume, as follows: 1919 1920 Tons. 4,389 4, 050 From best information obtainable, imports to date in 1921 have been running at the rate of 200 tons per month, although practically all of the arsenic plants in this country are now shut down. BRIEF OF GEORGE F. THOMPSON, REPRESENTING NIAGARA SPRAYER CO., MIDDLEPORT, N. Y. The tariff bill as passed by the House, in Title I, Schedule 1, and paragraph 1, imposes a duty on white arsenic of 25 per cent ad valorem. The Niagara Sprayer Co. manufactures insecticides and fungicides for the use of growers and planters of the United States. Approximately 17 other companies in the United States are engaged wholly or in part in the manufacture of the same product, but the Niagara Sprayer Co. is the largest company whose business is wholly devoted to the manufacture of insecticides and fungicides for agricultural uses. These materials go directly to the use of the farmer in producing and protecting crops. In the manufacture of these materials various chemical substances are used, viz, sulphur, copper, soda ash, lime, nicotine, arsenic, etc. Arsenic is used in very large quantities both by the growers and planters in the form of arsenate of lead for fruit and vegetables and calcium arsenate for the control of the cotton-boll weevil and for other preparations. But a part of the arsenic available is produced in the United States. It is a by-product from silver, lead, or copper mines. Large quantities are pro duced in Mexico, Japan, and some in Germany. As near as can be ascertained, the annual production of arsenic from all sources is about 20.000 tons a year. A portion of it is absorbed in the drug trade, a larger portion in the manufacture of glass, and the greater portion thereof for insecticide purposes. There is not sufficient arsenic produced in the United States to meet all these demands and importation is necessary. There is no record of any promise on the part of American producers, or intending producers, to meet the demand for uses in the United States at a reasonable price if protected by tariff. Under the circumstances, if a duty is imposed in the tariff bill it will simply result in a tax which will necessarily be added to the price and passed on to the ultimate consumer, viz, the American farmer, fruit grower, or planter, and add to the already overburdensome speculative investment in a crop. If sufficient arsenic were produced in the United States to meet the demands at a reasonable price, it would be immaterial whether a heavy duty were imposed or not, but, under the circumstances, it is submitted that unless the committee have evidence that the protection afforded will increase production in this country to an extent sufficient to make available enough arsenic at a reasonable price to meet the demand for the drug trade and agricultural and other commercial uses white arsenic should be placed on the free list. It is also submitted that the demands for the use of arsenic for insecticide purposes are constantly increasing, and it is quite possible that within a very short time the demand may exceed available production of 20,000 tons per year. We ask that white arsenic be eliminated from paragraph 1 and placed on the free list. ARSENIC AND ARSENIC ACID. [Paragraph 1.] STATEMENT OF HON. WESLEY L. JONES, UNITED STATES SENATOR FROM WASHINGTON. Senator JONES of Washington. Have you had a hearing with reference to arsenic and arsenic acid, paragraph 1? Senator MCCUMBER. Yes; and the matter was covered very fully as to black, white, and blue arsenic. Senator JONES of Washington. I have a letter from the Spokane Fruit Growers' Co., of Spokane, and also a letter from the Commercial Club of Wenatchee. They both protest against the tariff on arsenic. It is largely used in spraying. Senator MCCUMBER. What is your opinion about it, Senator, as to whether it should be protected? Senator JONES. I do not know, Senator. I have not had an opportunity to go into the production and the use of it for other things in this country and what can be done. I am in favor of protection. I am in favor of applying the principle of protection wherever it is necessary to develop our industries; and the mere fact that this may be necessary in connection with fruit would not, of course, lead me to think that it should not have protection if protection is necessary to develop another important industry in this country. Senator MCCUMBER. They want 3 cents a pound on white arsenic, but the sulphite of arsenic they are perfectly willing to put upon the free list. Senator JONES of Washington. I think the white arsenic is what they use largely in spraying. Senator SMOOT. They would use it probably on account of the freight. Senator JONES of Washington. I wanted to present this. They asked me to do it. I know that fruit raising is a very great industry out there. They use a great deal for spraying. I want it to be considered by the committee in connection with the other phases that no doubt the committee had before it. (The letters referred to are as follows:) Hon. WESLEY L. JONES, United States Senate, Washington, D. C. SPOKANE, WASH., July 20, 1921. DEAR SENATOR JONES: Our attention has been called to the fact that a duty of 25 per cent is proposed on white arsenic and arsenic acid. These substances are used in enormous quantities in agriculture as a basis of spraying materials for the destruction of coddling moth, boll weevil, and other insect pests, as well as in poisons for gophers, mice, etc. A duty on these two commodities, therefore, would mean a great increase in the cost of production of lead arsenate and other poisons used in agriculture and would throw an especially heavy burden upon the growers of fruit in the Northwest, where vast quantities of lead arsenate are used annually as a protection against the coddling moth. Therefore, on behalf of the several hundred members of this company, we respectfully urge that you kindly give every assistance possible to secure the elimination of this item from the proposed tariff bill. Thanking you for any assistance you may be able to render, we are, Your, very truly, Senator WESLEY L. JONES, SPOKANE FRUIT GROWERS' Co. WENATCHEE, WASH., July 30, 1921. Senate Office Building, Washington, D. C. DEAR SENATOR: The attention of the legislative and taxation committee of the Wenatchee Commercial Club has been called to the fact that the proposed new tariff law suggested a duty of 25 per cent on white arsenic and arsenic acid. White arsenic is used in the manufacture of arsenic of lead, which is used very extensively as spray matter in the horticultural districts in the control of coddling moth and if this new tariff law passes both the House and the Senate and becomes a law it undoubtedly mean that the fruit growers will be unable to buy their arsenic of lead spray materials at prices any less than those which prevailed during the war. Inasmuch as prices for the fruit have taken a considerable drop since the war, this will work a hardship upon the growers on account of its tendency to keep up their cost of production. The legislative and taxation committee of this organization have recommended to the board of trustees that this organization go on record as favoring a provision in the proposed new tariff law exempting white arsenic and arsenic acid from import duty so far as it is used for horticultural purposes. The board of trustees has adopted this report of the committee, and this organization goes on file as recommending the above. Trusting that we may have your cooperation in the interests of the Northwest fruit-growing sections, I am, Sincerely, yours, V. H. CLEARMAN, Managing Secretary. BARIUM PEROXIDE. [Paragraph 5.] BRIEF OF M. J. RENTSCHLER, WILLOUGHBY, OHIO, REPRESENTING THE J. H. R. PRODUCTS CO. Subject: Embargo or adequate duty. Reason: European competition and dumping. Foreign offers: 8 cents to 15 cents per pound. Duty Present, 13 cents per pound; H. R. 7456, 4 cents per pound; desired, embargo until currency exchange has h rmal, and thereafter a duty of not less than 8 cents per pound. Uses: In peace as a disinfectant; in medicine, for the manufacture of hydrogen, peroxide, sodium perborate, and other peroxygen compounds; in war, as a disinfectant for ships and men-of-war (see Navy Department Bulletin); for tracer shells (see records of Frankfort Arsenal, Philadelphia, Pa.); for manufacturing hydrogen peroxide, which is used in the treatment of wounds and commercially as a bleach. We desire to appeal for an embargo on barium peroxide until currency exchange shall have become normal, and thereafter a duty of at least 8 cents per pound. The manufacture of barium peroxide is a key industry because it enters either directly or indirectly into the manufacture of other chemicals, medicines, woolen goods, cottons, silks, hair goods, celluloid, etc. England, France, and Germany prevent our shipping barium peroxide in their countries by embargoes, but they are taking advantage of the fact that America has no embargo on barium peroxide, and are offering this product to our American customers at prices below those they charge in their own countries. We can not meet this competition, and we are entitled to an embargo or an adequate duty which will place us on an equality basis with these European manufacturers. During the war there were no importations of barium peroxide in the United States. According to the Oil, Paint, and Drug Reporter, 200,000 pounds were imported in 1920, and 1,005,934 pounds in 1921. According to Tariff Information, Series No. 18, the cost of producing barium peroxide in the United States in 1919 was 19.7 cents per pound. To-day this cost is at least 16 cents per pound. Europeans are offering barium peroxide to our American customers as indicated below. The original quotations given are on file at our Willoughby office. Prices are quoted in cents per pound c. i. f. New York: Karl Raspe, Berlin, Germany. B. La Porte (Ltd.), Luton, England__ Maatschappij Voor Chemische Producten, Amsterdam, Holland_ Garrigues (Inc.), New York, United States of America_ L'Air Liquide, Paris, France__. 12.5 14. 3 10.5 10. 64 11. 8 7.97 12.95 The present duty on barium peroxide is 1 cents per pound. H. R. 7456 provides for a duty of 4 cents per pound. A number of importers have already offered to absorb the major portion of this increase in duty should the bill as it now stands become a law. The above shows that 4 cents is an inadequate duty on barium peroxide. We asked the Fordney Ways and Means Committee to protect barium peroxide duty with a duty of 8 cents. They changed our request to 4 cents for no reason whatever, thus sacrificing our business and the American industry to European interests. So far as we know we are the only surviving manufacturers of barium peroxide for the market in the United States. Other American producers are either out of business or in the hands of creditors' committees or bankruptcy courts. Our plant at Willoughby, Ohio, is shut down. We pray that you increase the duty on barium peroxide to equalize labor, money exchange, and other conditions, thus enabling us to operate our plant and take care of the American demands for barium peroxide now supplied by Europe. HYDROGEN PEROXIDE. [Paragraph 5.] BRIEF OF THE MANUFACTURERS OF HYDROGEN PEROXIDE. Since the hearings on the chemical schedule were closed by your committee a condition has arisen which threatens to become a calamity to the manufacturers of peroxide of hydrogen in this country. Heretofore little or none of this chemical was imported, but recently German manufacturers have offered hydrogen peroxide, the equivalent of our 10-volume strength, in unlimited quantities at 2.6 cents per pound, c. i. f. New York. The cost to produce this chemical in the United States is about 4.5 cents per pound. Therefore, we respectfully request that hydrogen peroxide be |