THE GIFT OF t^^.l^-^:!i.-L ___ _30/y/«>^ pornell University Library HW^«6'f. "What is the advance here? Mr. WiTHERBBB. It is very hard to get it proportionately, but I should say that iron which sold at $16.50 is now probably fairly quoted at §19. Mr. MoMiLLix. I want to get at iron ore— the advance here. Mr. WiTHERBEE. The advance here has not been nearly as great as that m foreign ore. Mr. McMiLLix. What is the price abroad ? Mr. WiTHERBEE. I do uot know accurately, but I could give an estimate. Mr. McMlLLlx. How, then, do you know it is not as great ? Mr. WiTHERBEE. I Simply know from the sales at New Yerk harbor. I know the advance in this country has been from seven and a half units up to ten and eleven units. It seems to me we have in the eastern territory a production with which to supply our wants, and, looking at it from a manufacturer's point of view (for I am a manufacturer as well as a producer of ores and iron), I feel the manufacturers' inter- ests will be protected better by the fact that they can have a steady supply of do- mestic ores with a duty maintained, because the discovery of new mines has been taking place very rapidly in the last few years, than it would be to give us free ore, because if you do not protect this industry you intimidate capital from developing mining properties. In closing, in reference to the conditions of trade of New England, I have to say in regard to New York— there are more idle furnaces in New York than in any other State in the Union. She is almost worse than New England — but otir raw material will not help us, though modern plants might. I feel here to-day I am representing the sentiments of the people living throughout my part of the country when I say that we believe in protecting our laborers, who have to compete with the labor of Africa and Spain. We think we are very justly entitled to protection on the raw material. We have to meet the cheapest of all labor abroad. We have to compete with the development of Georgia, Alabama, Obio, Illinois, and Minnesota, but if we have got to give way to them, and I say with all my heart that if we have got to die, I would prefer to have American friends officiate at our funeral rather than for- eigners. Mr. Flower. The tariff duty on iron ore, as I understand it, is 75 cents a ton. What do you make a ton on your kinds? I do not mean in a booming year, but an average year. In your mines what do you make a ton ? Mr. WiTHERBEE. Well, it is rather hard to give it in that form. Mr. Flower. Do you make a dollar ? Mr. WiTHERBEE. No, sir ; not 50 cents. Mr. Flower. At the Troy or any other mine? Mr. WiTHERBEE. No, sir. Mr. Flower. What about the Troy rolling-mill, that is not running T Mr. WiTHERBEE. Yes ; it is running now. Jlr. Flower. They only started a short time ago, then ? Mr. WiTHERBEE. Yes ; owing to the fact they are going to get better ore. Mr. Flower. You are not despondent, like Massachusetts, In regard to the profits to be made on iron manufacture ? Mr. WiTHERBEE. I am not despondent, like the gentleman from Massachusetts. I think we have a great future. I think the development of the basic process and the magnetic process will be a great advantage. Mr. McMlLLix. And yet you say you have a very large number closed up, and idle furnaces; so protection has not lieen able to keep theni alive? Mr. WiTHERBEE. Not that, sir. I think the fact of improved plants has a great deal to do with it. It is impossible to run the old furnaces, which required '2 tons to smelt the ore, against the modern plants, which require only 1 ton. Mr. McMiLLiN. The trouble comes in part that you have not got the iron ore coal, and liniHNtone all together. Mr. WiTHERBEE. (Somewhat that way ; and another thing is we have to meet the foreign Bessemer ore close by at sea-ports. A large amount of Bessemer ore has come in the Inst three or four years and has sold at lower figures than we can produce it. Mr. Bayne. Is the basic process much employed now? Mr. WiTHERBEE. Ycs, sir. I should say the last year the product of the European Continent was probably two-thirds basic. Mr. Bayne. Yon are encouraged to believe by the adoption of the pr.'.cesses beiuc developed in your State and New England that you will be able to produce your iron approximating the cost of production elsewhere f REVISION OF THE TARIFF. 29 Mr. WlTHBRBBE. It loots SO. Mr. Baynb. Explain the basic process. Mr. WiTHERBEK. I am not as competent as gentlemen who will speak after me. Mr. Ba YXE, How near are you to the New England line ? Mr. WiTHEKBEE. About 2 miles. Mr. Bayne. If the New England railroads would give as fair rate of charges as the Pennsylvania Railroad, could you supply Massachusetts with iron ores at a reasonable rate? Mr. WiTHEKBEE. I think so. Mr. Baynb. That is, if the New England railroads would charge as low rates as the Pennsylvania? Mr. WiTHERBEB. Yes, sir. Mr. Bayne. You employ about twelve thousand men ? Mr. Witherbee. No, sir; I said the territory I represented did. By Baynb. I mean your district. Mr. Witherbee. Yes, sir; that is a fair estimate. Mr. Bayne. What wages do those men get? Mr. Witherbee. On the whole they are much the same wages mentioned by Mr. Ely. They do not differ very much because if they differed in the two districts they would migrate from one to another. Mr. Bayne. That would be from $1.25 to $2.50 a day 1 Mr. Withbrbee. That would be a fair average. Mr. Bayne. So the iron workers and the workers in the mines are a well-paid body of men ? Mr. Toby says they only pay them about half. Mr. Wctherbbe. I think Mr. Toby's figures would be considerably above ours, as he is not a miner, but a manufacturer and employs largely skilled labor. Mr. Bayne. You have not reduced the cost of your labor of mining as Mr. Toby has? Mr. Witherbee. I am sorry to say we have, very much against our wishes, although they are getting a very much larger proportion of the selling price of iron ore than ever before in the history of mining. The iron-ore men have within the last fifteen years certainly had double the wages they are receiving to-day. Mr. Breckixeidge. Do you pay by the ton or by the day ? Mr. Witherbee. By the ton. Mr. Breckinridge. How much do you usually pay per ton ? Mr. Witherbee. No ; I should have said by the day. Mr. Breckinridge. Do you mine any by the ton ? Mr. Witherbee. I do not think we do any mining by the ton. We pay them so much by the ton where a specihc amount is to be gotten out. Mr. B'.'ECKINRIDGE. How much do you estimate the cost of wage per ton per day? Mr. Witherbee. You mean to say from the time the iron ore leaves the ground nntil discharged on the top? Mr. Breckinridge. I asked you how much was paid your miners? Mr. Witherbee. We have no royalties to pay, but I should say it is very hard to estimate. I should say it was from $1.50 to $3..50 a day, according to the ore and grade. I mean to say the actual cost of iron ore is $1.50 to $3.50 a day. That is the actual labor. Mr. Carlisle. Do you mean to say you have no capital invested in your mines ' Mr. Witherbee. This is the cost. Mr. Breckinridge. I ask you to give me the price to the miner per day, how much per ton ? How much of the wage would that cost you per ton to, say a man to whom you give |;1.50? Mr. Witherbee. Of course there isthe matter of transportation and the matter of powder and dynamite. Mr. Breckinridge. Does he have to furnish the powder? Mr. Witherbee. No, sir. Mr. Breckinridge. I have especially excluded everything except the mere ele- ment of wage. Mr. Witherbee. I am sorry I could not possibly give that to you, because we do not keep our figures that way. Mr. Breckinridge. How much do you give a good miner per day? Mr. Witherbee. He should control about $1.65 ; say $1..50 to $1.75. Mr. Breckinridge. I understand what you call a day's wage to a good miner would be .|il.50 to $1.75. How many tons of ore would you expect that miner to get out? Mr. WitherbbB; That is utterly impossible to answer because it varies with the conditions of the mining. Mr. Breckinridge. Take an average vein, take an ordinary working state of things. How much would you expect him to put out, one, tvfo Of tea tons, or wb^tT Mr, Witherbee, I b»ye no idea, 30 KEVISION OF THE TAEIFF. Mr. Breckinmdge. How then can you form any calculation of tbe cost of produc- tion ? , 1 f j-1 Mr. WniiERBEE. Simply l)y taliing the gross expenditures at the cucl ot tue year for the luinini;- department, a'nd we do not even then get at the wage of each indi- vidual man. "You Moe in some places the body of ore is soft and in others it is hard. Mr. Bkeckinridge. Suppose it i.^ in a body of soft, how many tons would you ex- pect a man to get out in a day ? Mr. Withekbee. I have never figured it out. Mr. Breckinridge. Have you any information of any day's production? Mr. WiTHERBEE. We have a record of the daily production. Mr. Beeckixridge. Can you get the total production and the total number of miners will vou get that ? Mr. With'eebee. The number of miners vary from day to day. I do not know how many we employ. Mr. Breckinridge. Can you find out bow much your miners on an average turn out per ton when they are afforded every favorable condition ? Mr. WiTHEEBEE. I do not know. There are bard places where the amount of dy- namite used varies from day to day. Mr. Breckenridge. Did you ever have them get out ore by contract? Mr. WiTHERBEB. In very rare instances ; I might almost say never by the ton. As a rule it Is a very dangerous practice, because if you make a contract with the men they are apt to encroach upon the pillars which support the roof. If a man makes a contract he wishes to get as much oreout as possible, and he will leave as little sup- port for the roof as possible, and tbe practice is considered injurious to tbe mine. We certainly not in the last twenty years to my knowledge did any contract mining, be- cause we are opposed to it. Mr. Breckenridge. You mean you have done little, 'or none at all ? Mr. Witheebee. Wo may have done a little, but chiefly it has been done tbe other way. Mr. Flower. I understand that these Port Henry mines are a compact mass of rock and ore, and one day you will be mining regularly, and then you have jigs in which you jig this ore? Mr. Witheebee. That is done at Chateaugay. Mr. Flower. That jigs 50 per cent, of the best shipping ore. I understand you can not tell what you pay a miner for mining a ton of ore, and you can not tell how much he can mine in any one day, or the cost of it for the reason your accounts are kept, BO that the plant, dynamite, coal, wood, everything that goes into that mine is charged on that account, so at the end of the month or year that figures up just bow much your ore costs you. Everything that goes into the mine is figured in the cost ? Mr. Witheebee. Yes, it is about that way. Mr. Flower. If so, what is that cost in your mine ? Mr. Witheebee. There is a difference in every mine. We have mines running there65 percent, of ore and another will run, say, 30 to 50 per cent. We have others running :iO to 50 per cent, ore that lies on the bank and is not transported sometimes for two years. So you see it is utterly impossible for us to get tbe exact cost of the ore pro- duced. This ore thus lying out will be utilized by concentration. Mr. McKenna. Have you never made an estimate of what the labor costs you ? Mr. Witheebee. No, sir. Mr. McKenna. Have you no estimate as to whether you are making money or los- ing ? Mr. Witheebee. We can not tell until the end of tbe year. Mr. McKenna. Can you tell at the end of the year? Mr. Witheebee. Yes, sir, generally. Mr. McKenna. Have you investigated the element of that cost ? Mr. Witherbee. We do, but not the direct source, not tbe individual production of one man. We take at tbe end of the year what the product has cost, the general balance sheet shows bow we stand. Mr. McKenna. Did you never consider the elements of computation at all, so as to see in regard to the cost of labor, transportation, and other things ? Mr. Witheebee. No sir, not so as to make a detailed account. Mr. McKenna. Can you give a rough estimate as to the various elements ? Mr. Witheebee. I could not, certainly. Mr. La Follette. How can you determine the price to pay your miners? Mr. Witherbee. We can only settle the wages by what the law of supply and de- mand dictates. We intend to i)ay as much if not more than other people. Mr. McMillin. You spoke of a reduction of wages. When was that last reduction ? Mr. Witherbee. I do not know if there has been a reduction in three years Mr. McMillin. Neither in time or rate f When was the last reduction in time ? Mr. Witherbee. Our last reduction in time was very close to ^ffeajj years a"0 That was 0., Saturday half-JjolJday fifteen years ago. ^ ■ - < ■ — o • EEVISION OF THE TARIFF. 31 Mr. Carlisle. Do your miners work all the year round ? Mr. WiTHERBBB. Yes, sir; more generally in winter than summer. Mr. Carlisle. How did you conclude to give them this half-holiday f Mr. Withkrbbe. We thought the men would be better for it. Mr. Carlisle. Could you give anything except what you lost or made by your general expenditures and general receipts? Did you know what was x^aid the stock- holders ? Mr. WiTHERBEE. We are a firm, not a stock company. Mr. Carlisle. Can you tell how much profit was on the inveakment ? Mr. WiTHERBBB. It is very hard to tell on the investment. I should say on a fair mine, twenty years, the profits did not exceed at the outside 10 per cent. 1 would like to explain that. In regard to mining iron ore you are taking out your property and not replacing it. It is not only dividends, but you are taking away the very prop- erty itself. Mr. Carlisle. I understood you to say that ore in the ground was not worth any- thing ; that it was all labor. Mr. Withkrbee. That is very true, but it is just that much loss and no profit on it. Mr. Carlisle. Then it is worth something ? Mr. WiTHERBBB. It is worth what you make on it. Mr. Carlisle. But the ore is worth something in the mine. Mr. WiTHERBBB. It might be in the form of royalty. Mr. Carlisle. Do you consider the capital invested anything t Mr. WiTHERBBB. It is worth the plant and what the profit is worth. Mr. Carlisle. It is worth what it cost you ? Mr. WiTHBRBBE. Yes, sir. Mr. McKenna. Will you continue the explanation of the question in regard to the profits you made 1 You said something about 10 per cent. Mr. Witherbek. How would you like the explanation ? Mr. McKbnna. Any way you choose. Mr. WiTHBRBEE. It is very hard to arrive at it. Mr. MoKenna. Does that 10 per cent, include the interest on the money you have invested and the cost for superintending the work? Mr. WlTHERBEB. I suppose so. As I said before, it represents the value of the property. I am giving that figure of 10 per cent, as a comparative value. I think our mines are capable of producing ores at as low prices as most of the mines in the East. A good many of them have paid 5 and 6 per cent., and therefore I should say ours pay about 10 per cent. Mr. Gear. Are you familiar with the rolling-mill interests ? Mr. WiTHERBBB. Very indirectly, I have had an interest in tbem. Mr. Gear. You have stated that one reason for the decadence of manufacturing iron in New York, converting ore into the pig, is that the furnaces there require more fuel. Mr. WiTHERBBB. I referred more particularly to blast furnaces than to rolling-mills. Mr. Gear. Is that relatively true of the rolling-mill plants of New York? Mr. Withehbee. Yes, sir; and New England. Mr. Gear. Therefore, if that be true, we cannot compote with more modern plants which use less fuel? Mr. WiTHERBEE. Not at present, but in the future we may with modern plants. Mr. Carlisle. You say your dividends have been about 10 per cent. ? Mr. WiTHERBEE. That is not put in the form of a dividend, but a calculation that we ought to gain that much on the property. If you ask me to-day what 1 consider the value of the property I could not tell you. Mr. Carlisle. You think your profits then would be 10 per cent, on the investment? Mr. WiTHERBEE. Some years. Mr. Carlisle. What are the dividends on an average? Mr. WiTHERBBB. That I can not tell you. Mr. Carlillb. Do the books show it ? Mr. WiTHERBEE. They might. Mr. Carlisle. Do you know what they were last year? Mr. WiTHERBEE, I could not tell you here. Our dividends do not always show bo- cause we often invest money in the purchase of new property. Mr. Gear. Something has been said in regard to the ore in the ground. Suppose you buy a thousand acres that you think contains good iron-ore. What is the value of that without developing it ? Has it any or none ? Mr. WiTHERBBB. That is very problematical. Of course you can not tell its value nnder ground. Mr. Gear. What is the best ordinary acreage price . Mr. WiTHERBBB. It may have some or little value. Mr. Gear. Then the value is (iependent upo^ the developnjejat and the plant T Mr. WiTHBBBEE. Yes, sir. 32 KEVISION OF THE TARIFF. Mr. Flower. And also on how much it is developed and whether it is good iron or not? Mr. WiTHERBEE. That is about it. Mr. Gear. 1<- is like bnyiny a pig in a poke. Mr. Breckinridge. What do you estimate to he the value per acre of your best iron property ? Mr. WiTHERBEE. I could not answer that, because it is not defined iu the form of acreage. The lots are laid out in certain tracts. Sometimes they are awards of soldiers in the Revolutionary war. Mr. Breckinridge. Is not an acre a unit of measurement which you usually employ in estimating ore land ? Mr. WiTHERBEE. No, sir; it is generally a mine. The mine may cover parts of sev- eral acres or may be in a certain tract. Mr. Breckinridge. By what means do you measure the dimensions of the ores? Mr. WiTHERBEE. We generally measure by the length of the vein and the thickness of it. Mr. Breckinridge. Then you reduce that into what form of expression ; feet, yards ? Mr. WiTHERBEE. Into feet. Mr. Breckinridge. When it is quoted for sale or purchase, what unit of measure as to the physical area is generally employed 1 Mr. WiTHERBEE. You mean as to the area of the mine? Mr. Breckinridge. As to the property you are going to buy? Mr. WiTHERBEE. It is generally stated so much for a mine and not the acreage. It is mining property. There may be a large numberof acres or small number covering a tract or range. You buy it by the quality of the ore and the thickness of the vein. Mr. Breckinridge. You generally estimate the capacity in some form ? Mr. WiTHERBEE. Yes, sir. Mr. Breckinridge. I am endeavoring to get at the mode of making a calculation in either the purchase or sale of a mine. You have some mode of reasoning about these things? Mr. WiTHERBEE, In buying a mine we generally go and look over the country with a compass and see what the magnetic indications are, what other tracts are in the neighborliood, etc. Mr. Breckinridge. You can not state the manner in which you estimate the value? Mr. WiTHERBEE. No; it is a jump in the dark absolutely. I would be very glad to answer the question. Mr. Breckinridge. You estimate it, I presume, in some way? Mr. WiTHERBEE. If I was buying iron-ore property to-morrow, I should estimate it by the surrounding circumstances of the country and the prospects of corresponding veins in the vicinity. Mr. Breckinridge. You would seek to get at the amount of ore iu the mine? Mr. WiTHKRBEE. Yes, sir. Mr. Breckinridge. How would you measure that? Mr. WiTHERBEE. By tons. Mr. Breckinridge. And what would you consider to bo the price per ton for a good mine jn your section of the country ? Mr. WiTHERBEE. You mean the price I would realize Mr. Breckinridge. If you wanted to make a purchase, what would you take to be a fair selling or purchase price per ton for what you would call a good piece of ore property in your section of the country? Mr. WiTHERBEE. There is no uniform estimate. There is one piece of property you could purchase for one price and another for another. There is one piece of pronerty you might purchase for $1,000 • Mr. Breckinridge. A thousand dollars for what? Mr. WiTHERBEE. For the farm. Perhaps the very next land to it would be $500 or $5,000. You are governed entirely by the circuuistances and what you think the property is worth. Mr. Breckinridge. You have spoken in regard to making an estimated 10 per cent, dividend on your properties. Do you estimate the value of those properties by acreage or by tons, or upon what unit of measurement? Mr. WiTHERBEE. We have no uniform estimate in anyway. We estimate that about 10 per cent, is what we ought to get out of the mines. Mr. Breckinridge. Take one of your mines. What valuation do you put in your estimate upon any given mine ; take a good one, ? "' Mr. WiTHERBEE. The mines are grouped as a whole. I should put it iu this way ' I think we ought to get a fair profit— of not less than 25 cents a ton. The risk won'ld be hardly worth that it ought to be 50. At the same time, if we oniy get 25 cents a ton, WP would be willing to take tljo risk, There is uo suffioicut return to minipg EEVISION OF THE TARIFF. 33 capital. It ought to pay 20 per cent., because you are continually destroying your principal. Mr. Gbak. It is only a question of time to work it completely out? Mr. WiTHERBEB. Yes, and the time may be only a few days, a few months, or a few years Mr. Carlisle. I move the committee now take a recess for thirty minutes. Accordingly the committee took a recess until 2 p. m. STATEMENT OP MR. V. K. MOORE. Mr. v. K. Moore, of Detroit, Mich., next addressed the committee. He said: Mr. Chairman and gentlemen of the committee, it was certainly far from my ex- pectation to appear before you. I am here purely to answer a few inquiries, as gen- tlemen who spoke earlier this morning failed to develop some of the details which the committee seem to wish to know. It will be only my purpose, as far as possible, to answer a few of these questions. My connection with the trade has been since 1883, with one of the smaller mines — a non-Bessemer mine — one of that class of which you hear but little ; not like the Lake Superior and Republic mines, but is one of those smaller ones, of which you hear but seldom. If they are prosperous you hear more of them, and if not they quietly pocket their losses and are very careful not to develop how much they have lost. Our mine was opened in 1883. Since that time we have produced about 200,000 tons. The Chairman. Where is your mine ? Mr. Moore. It is in the Menominee district, and is about 30 miles west of the Cha- pin mine, in the State of Michigan. We are just a little above the Florence mine. Inquiry has been made here, " What does it cost to mine a ton of ore ? " and the an- swer has been, " We can not tell." That is true. So many circumstances enter into it that it is impossible to determine the cost of a single ton of ore. I will illustrate it by saying this: Our mine is what is known as a semi-hematite. We pay, for in- stance, in some portions of our mine 30 cents a ton for mining. We pay in other por- tions of our mine $1 a ton for mining, and in other portions as high as $1.50 a ton, dependent upon the conditions under which the work is done. That is why the gen tlemen can not tell you what the price is specifically per ton of ore. Mr. Flower. You can take a year's output, and all the plant that goes into the mine and all the products that come from it and all the labor and everything else that enters into it, and when you strike a balance-sheet at the end of the year you can not tell what a ton of ore costs on an average ? Mr. Moore. That is not what I intended to say. Mr. Flower. Is not that the way you keep the accounts of the company? Mr. Moore. That is the way the thing has been mixed in the answers that have been made. I went back to my room for the purpose of obtaining some statistics in regard to that which I had. For instance, in 1887 we produced about 30,000 tons of ore. Our pay-roll was $40,000 and a little over. There you can get an average, perhaps, for a year. Yet for some of that ore we only paid from 35 to 40 cents a ton for mining, and in other portions we paid from $1 to $1.50 a ton for mining ; so that it is impossible to determine what the cost of a ton of ore is for mining until the bal- ance-sheet is struck. Mr. Flower. That is what I wanted. That is the direction in which my question pointed. What is the average price per ton of ore mined — for bringing it out of the ground, including in that, plant, new machinery, and everything ? Mr. Moore. In the estimate I have given it does not include new machinery. It is simply the pay-roll of our works. We produced a few tons less than 30,000, and our actual pay-roll, exclusive of superintendence, was a few dollars over $40,000 for that one year. The Chairman. That was for actual labor ? Mr. Moore. Yes, sir. Mr. Breckinridge. What year? Mr. Moore. 1887. Mr. McMillan. And how many tons t Mr. Moore. 30,000 tons a year. Mr. Breckinridge. To place your ore where ? Mr. MOOKB. At the mouth of the mine. Mr. La Follette. That does not Include anything for superintendence 1 Mr. Moore. It does not include superintendence. Mr. Flower. That is not a fair statement, if you will allow me, for you can mine and make money some years, and some years not. Now will you give au estimate of what your plant cost you per year at that mine? How much on a ton separate? Mr. Moore. In the figures I have given they do not include that estimate. We 485 3 34 EEVISION OF THE TARIFF. have not estimated tliat :it all. In the case I mentioned it is simply the days worked that goes in it. It is no interest on the money nor anything on the plant at all. Mr. Flower. How much does it cost to get it from your mine to Lake Michigan 1 Mr. MOOKE. It costs ns 75 cents freight from our mine to Escanaba. From Escan- aha to Cleveland this year the freight has been steady (until in September) at 90 cents. After that $1.30 a ton to Cleveland. Mr. Flower. Some years it costs more? Mr. Moore. Two years ago it cost $1.35 for the season through. Mr. Flower. On an average you could say |1.'25 for the labor at the mines, and you pay 75 cents to take it to Escanaba, and |l on an average to Cleveland. That is $3. What does that ore sell for there ? Mr. Moore. It sells at Cleveland this year at |3.75. We paid out of that about 40 cents a ton royalty for that ore. Mr. Flower. Then you made about 35 cents a ton, and with that you purchase your machinery, etc.? Mr. MooKB. Yes, sir ; that is the situation. The Chairman. Is there anything further, Mr. Moore f Mr. Carlisle. Have you any means by which you can designate which is the la- bor? Mr. MooKE. Yes, sir ; that is all labor. Mr. Carlisle. Now, is that a fair average of the cost of labor in the production of iron ore in the United States? Mr. Moore. It is impossible to average the price of labor, as in one mine (for instance, our mine) it varies from 50 cents to $1 a ton. It is done by contract mostly. The Lake Superior mine pays twice that, and more, possibly, for the reason that our mine is a soft mine, while theirs is all hard. Mr. Carlisle. Have you any means of ascertaining or can you state about how many tons of ore an ordinary good miner can take out in a day ? Mr. MooKE. That depends entirely upon the conditions of the ground in which they are worked. It is impossible to tell. I will say this : We mine by contract there as far as possible, and our contracts pay from $i to |2.50 a day to the miner. The miner making 50 cents a ton makes $2.50 a day if he mines 5 tons. Mr. Carlisle. If a man make $2.50 a day you say he mines 5 tons ? Mr. MooRE. That is in certain rooms. For instance, we suit our contracts so that we can judge pretty nearly the amount they can take out. Mr. Carlisle. Do you ever employ men to mine by the day ? Mr. Moore. Yes, sir. Mr. Carlisle. What do you pay ? Mr. MooEE. In some rooms $1,'$1.50, and $1.75. Mr. Carlisle. On account of what ? Mr. Moore. On account of the diiference in the rooms in the work of mining. That is the rule. We endeavor to equalize the wages as far as possible, according to the amount of labor required. Mr. Burrows. It makes a difference whether a person can get out 1 ton or 5 ? Mr. Moore. Yes, sir ; all the difference in the world. I do not think I have any- thing further to say, simply to emphasize what Mr. Ely said. ADDITIONAL STATEMENT OF MR. V. K. MOORE. Mr. Ely has given prices at Ohio ports and drawn his deductions mostly from Bessemer ores ; non Bessemers, while paying the same fixed charges between mine and market, have not brought so much, but have ranged in 1889 (for 60 per cent, and above) from $3.50 to $3,75 in Cleveland. These fixed charges have averaged this year from the Menominee and Marquette ranges about $1.80 for freight and insurance from the mines to Ohio ports; 10 cents for commissions and handling there and a royalty of from 25 cents to 50 cents, or an average of about 35 cents on non-Bessemers (the Western mines are all leases), m.tking in all about $2.25 from these ranges. Deduct this from the selling prices for this year and we have from $1.35 to $1 50 net returns to the operator for putting the ore into railroad cars in his yard and de- velopment work. This $1.25 or $1.50 must pay the laborers for mining, for fuel, for steam to pump and hoist, for supermtendence, interest and expense, and for renewals and main- tenance of plant. The balance, if any, may apply to repaying cost of the plant, much of which will be practically useless when the ore is exhausted. You will readily see that any ma- terial reduction from these figures in the net returns must come from labor The non-Bessemer mines are mostly short-lived, being in lenses or pockets' and can't be counted on with any certainty for large amounts of ore in one place. REVISION OF THE TARIFF. 35 This makes development work expensive in proportion to amount produced, and it requires a vast amount of courage to prosecute it. It is a vast industry, for the aggregate of the non-Bessemer small producers is a very important figure in the totals of the Western mines, but it would be much restricted with adverse legisla- tion. Vast sums of money have been lost in many uuprolitable and abandoned while the very few profitable mines are the exception instead of the rule. These few, how- ever, are used to point the argument that the industry no longer needs protection. What the ore business wants, and the same may be said of iron, is steadiness in the national policy. Changes in existing conditions tend directly in this more than in any other branch of production to discourage investments in these hazardous enter- prises. Ore, duty free, would not only increase shipments from Cuba and Spain, but would lead to the immediate development of a near Canadian field of very considerable magnitude about Georgian Bay and up on Lake Ontario. I believe in protection. In the ore and iron business it must be maintained, else we must reduce our labor, or what would result in the same, the smaller producers must go out of the business and their laborers seek other employment. STATEMENT OF MR. POWELL STACKHOUSE. Mr, Powell Stackousb, vice-president of the Cambria Iron Company, next ad- dressed the Committee. He said : I have no statement to make, gentlemen, but if you have any questions to ask I will be pleased to answer them. The Chairman. Are you engaged in the mining of ore ? Mr. STACKHOUSE. Yes, sir. The Chairman. Where ? Mr. Stackhoosb. In the Menominee range, Michigan. The Chairman. Are you a consumer of ore as well ? Mr. Stackhousb. Yes, sir ; we consume our own product. The Chairman. What do you represent ? Mr. Stackhousb. The Cambria Iron Company. The Chairman. Is there any gentleman who wishes to make any inquiry of Mr. Stackhouse ? Mr. Flower. I would like to know whether you run the Chapin? Mr. Stackhouse. No, sir ; we do not. Mr. Flower. Does not the Cambria own that ? Mr. Stackhouse. No, sir. Mil. Flower. Do you keep your accounts in this slipshod manner that the rest of them do ? Mr. Stackhouse. We try to know what we are doing. Mr. Flower. Do you try to put the plant and the labor and everything else to- gether at the end of the year ? Do you charge the plant to profit and loss ? Mr. Stackhouse. No, sir. I had better make an explanation of that. Oar mine is a lease-hold one, and of course the plant is personal property and we have a right to move it. The Chairman. You pay a royalty. Mr. Stackhouse. Yes, sir. Mr. Flower. How much is that ? Mr. Stackhouse. Twenty-five to 40 cents a ton, and 50 cents in some cases. Mr. Bayne. What do you pay your employes a day. Mr. Stackhousb. A man credited as a practical miner will get from $2.25 to |2.50 a day when he is working under contract. Company miners working by the day get about $2 as a rule. Mr. Bayne. Then vour ore when taken above ground pays a royalty of 40 cents and costs |2.50 a ton ? Mr. Stackhouse. Yes, sir. Mr. Bayne. The duty of 75 cents a ton is equivalent to about 25 per cent, ad valorem ? Mr. Stackhousb. Nearly that. Mr. Bayne. How many men have you employed ? Mr. Stackhouse. It varies in different seasons of the year from about 750 to 900. Mr. McKenna Do you pay them all $2.50 a day ? Mr. Stackhouse. No, sir. That is for the practical miners. Our pay-rolls — leav- ing out the salary men, such men as get $100 a month and above that — will average in different years from $1.75 to as high as $1.90. That covers skilled and unskilled la- bor of all kinds. Mr. McKenna. What is the lowest price you pay anybody ? 36 REVISION OF THE TARIFF. Mr. Stackhodsb. About |1.40. Mr. McKenna. What does he do ? t- , Mr. Stackhousb. He is a common surface laborer. The figures I nave mentioned above leave out mechanics m the general average and include everybody employed by the company. Mr. MoKenna. Let ug get at the elements of them. The laborer you pay how much f Er. Stackhousb. The common $IA0 ; the better $1.50. Mr. McKenna. Now, your skilled miner ? Mr. Stackhoose. If he works by the day he gets |2. Mr. McKbnna. Then the mechanic ? Mr. Stackhouse. They get from |2.75 down to $2. Mr. McKenna. What do you mean by ordinary labor as distinguished from the contract miner ? Mr. Stackhousb. Such men as you can go in the street and pick up are ordinary laborers, but when you come to the miner he is a man who is skilled in his work, who can drill, sink, and drive a shaft, or any regular mining work. Mr. Gear. Does the company furnish the explosives ? Mr. Stackhousb. In most cases, except in contract work, where we pay so mnch a ton. Mr. Bayne. Where do you receive your ore ? Mr. Stackhousb. Johnstown. Mr. Baynb. What is the cost of the transportation of that ore ? Mr. Stackhousb. At present just about $4. Mr. Bayne. Four dollars a ton ? Mr. Stackhousb. Yes, sir. Mr. Bayne. Do you mean it costs $4 actual transportation ? Mr. Stackhouse. Yes, sir. Mr. Baynb; Well, your ore must cost you about $7 a ton at Johnstown ? Mr. Stackhouse. Yes, sir. Some of our ores' are cheaper, but the average will be in that neighborhood. It varies, but it will be between $6 and |7. Mr. Baynb. That vast cost of transportation is what enabled Chicago to build her iron works? Mr. Stackhouse. That enables them to equalize the freight and cost of fuel. Mr. Bayne. You have to bring ore a vast distance to your establishment and Chi- cago has to bring fuel a long distance to hers ? Mr. Stackhouse. Yes, sir. Mr. Flowtsr. Do you mean Johnstown, Ohio? Mr. Stackhouse. No ; Pennsylvania. Mr. Flowbr. What is your haul of coke ? Mr. Stackhousb. About 75 miles. Mr. Flower. And your ore about — - Mr. Stackhouse. About 45 miles to Escanaba ; from Escanaba to Ashtabula, and from that — say about 120 miles. Mr. Breckinridge. This is Bessemer ore you are getting out ? Mr. Stackhousb. Yes, sir. Mr. Breckinridge. Is it a soft or a hard ore? Mr. Stackhousb. It is soft. Mr. Gear. What is it called ; a blanket vein ? Mr. Stackhouse. No, sir. It lies in this form [illustrating with a book], and it lies in the ground like that [illustrating]. Mr. Flower. Entirely different from the Southern formation in Alabama, which lies like coal lies. Mr. Breckinridge. Are you familiar with deposits where you excavate from the surface, and where there is no use for beams or anything of that sort ? Mr. Stackhouse. You have to timber very heavily as the ore is soft and the mine has to be well timbered. Mr. Bayne. If it costs you at Johnstown $7 a ton that includes transportation 75 cents a ton, and the duty on iron ore would be a trifle over 10 per cent, ad valorem. Mr. Stackhouse. That is the cost delivered at the works. Mr. Bayne. That would not be enough duty. The Chaiuman. Is there anything further, gentlemen ? I will read the committee a telegram I have just received : „ .^ „ „ ' Platt8Bukgh,N. Y., DecemJ-er 2,5, 1889. Hon. Wm. McKinlby, ' Chairman Committee on Ways and Means, Washington, D. C. : Learn I am on committee to appear before your committee to-morrow and am unable to attend at such short notice ; but wish to most respectfully but earnestlv protest with other producers of iron ore m the East against any reduction of the dutv on iron ore, •' Smith M. Weed. REVISION OF THE TARIFF. 37 STATEMENT OF F. J. DOMINICK. Mr. P. J. DOMINICK, representing the Chateaugay Ore and Iron Company, the Crown Point Iron Company, and the Hudson River Ore and Iron Company, next addressed the committee. He said : Mr. Chairman and gentlemen of the committee : In the absence of the president and general manager of the Chateaugay Ore and Iron Company and the Crown Point Iron Company, it was decided yesterday I should come here and state on their part they desired to be represented here as opposed to any redaction of the duty on iron ore. Those companies are situated in northern New York, and the question of ore has been so fully argued by Mr. Ely and Mr. Witherbee that it seems to be en- tirely unnecessary to go more into the question. If there are any questions you desire to ask me I will be happy to answer them. The Chairman. Will you be able to give us the cost of producing a ton of iron ore f Mr. DOMINICK. I can not give the cost of production, as I have no reference to the books at Plattsbnrgh. I have had no time since yesterday to look up the question. The Chateaugay crude ore, I understand, will cost this year about |2.20 a ton at the mine. The Chairman. How much of that is labor 1 Mr. DOMINICK. Except perhaps 15 or 16 cents royalty it is all labor, or material in the shape of powder, the expense of running engines for the compressed air and the power of hoisting. How it is to be divided I can not tell without reference to the books. Mr. Carlisle. Does the capital invested get anything of that at all ? Mr. DOMINICK. I think the capital would get nothing of that price this year. Mr. Batnb. You sell at an advance for that price ? Mr. DOMINICK. Unfortunately this year we have not, but we hope to do so, other- wise we would not"be in the business. Besides that we make a concentrated ore upon which there is a small profit. Mr. Breckinridge. Is that by this process which one gentleman explained? Mr. DOMINICK. Not precisely. That ore is concentrated with jigs by water, and not by electricity, but the principle is the same. The lump ore is crushed until it is about one-fourth of an inch in diameter, which passes through an extra mesh in the sieve. Then this is washed in a jig and the gangue washed away from the ore. Mr. Breckinridge. Is that the process in general use ? Mr. DOMINICK. It is not in as general use as it was a number of years ago in that region of northern New York when so many were engaged in manufacturing bloom iron. Mr. Breckinridge. Have you any other information of its use in other localities ? Mr. DoMiNiCK. Not until very recently. Mr. Breckinridge. Is it used to any extent in other localities of which you know ? Mr. DOMINICK. I do not think it is at this time, but there are concerns that are going into the business now of making it by electricity, but the process of making it by water I do not think is done elsewhere. Mr. Breckinridge. That I understand is still in an experimental stage. Mr. DoMiNlCK. Yes ; we use electricity to charge the magnet itself. Mr. Breckinridge. I am not speaking of the mode, but the state of maturity ; it is yet unfinished. It is still in an experimental state. Mr. DoMlNiCK. Yes, sir ; I think it is. Mr, Bayne. Do you think you can supply New England with ore from the New York region f Mr. DOMINICK. That is a question I can not answer without knowing the quantity required for New England. Do you mean as far as price is concerned t Mr. Bayne. Yes. Mr. DOMINICK. We do send a little ore to New England, but not a great quantity. Mr. Batnb. Do you feel encouraged by the introduction of the basic process? Mr. DOMINICK. It will not affect us in the least. Chateaugay ore is a Bessemer ore, and the basic process will not require Bessemer ore. Mr. McMlLLiN. It will affect you injuriously where it afi'ects you at all. Mr. DoMUfiCK. I doubt it. Mr. McMiLLlN. When it enables ores higher in phosphorus to come in competition with Bessemer ores, which they can not do now, will it not affect the Bessemer ore ? Mr. DOMINICK. It would if there were any longer a demand for the Bessemer ores by the furnaces now in existence ; but they no longer require them. Mr. Bayne. Would it have the effect of cheapening Bessemer ore and enabling you to supply New England ? Mr. DoMiNiCK. I think it would. Mr. McMiLLiN. According to what you said you could not stand cheapening ? Mr. DoMiNiCK. We can not. 38 REVISION OP THE TAEIFP. Mr. Caklisle. This year you are not selling at a profit? Mr. DOMINICK. 1889* , ,,. ix^-„^^„^. Mr McMiLLiN. What did I understand you were selling at this year T Mr'. DOMINICK. I said we sold it at about $2.20 a ton at the mines. Mr. McMiLLiN. Does that include interest on the plant ? Mr. DOMINTCK. I should thinli not. Mr. McMiLLiN. You do not know how that is ? , x-u • Mr DOMINICK. 1 am quite sure that is only the expense at the mine. Mr Carlisle. If I understand the statement you made yon said the ore cost at the mine after it was taken out $2.20, and that all of that with the exception of 16 or 17 Tents was lahor. Do you mean to say you pay the miner $2.20, less 16 cents per ton, ^° Mn'lJSmNiCK."'Nor«ir ; excuse me. T said that included labor, the cost of produc- ing the ore, the use of machinery and everything. Mr. Flower. Are you connected with the Hudson mine ° . . Mr. DOMINICK. No, I have no connection with it, but it is in the same office with me in New York, and I know something about it. Mr. Flower. Have they to jig that ore? . , , , . Mr DOMINICK. It is not possible to do that. The structure of the ore is such that It can not be done by water, nor has-lt been saccessfully done by electricity. Mr. Flower. Well, the Chateaugay ? Mr. DOMINICK. That mine and the Troy company do it. Mr. Flower. Is it Bessemer ? -, _^ ., , Mr. DoMiNiCK. Some of It is Bessemer and some of it is not, but the larger propor- tion is Bessemer. , „,, . , i, . ■, Mr. Breckinrldgb. In this cost of ore at the mouth of the mine, how much is paid per ton to the miner ? ' . j_, -^ ^ 4. a Mr DOMINICK. The mining at Lyon Mountain is done mostly by contract, and those contracts are fixed according to the ground. That is a hard ore, and they mine a good deal of rock, and a mine which will bring a higher price. It is done by the square foot and fathom. ,. ■ <. Mr. Breckinridge. Are you able to tell us on an average how much a miner gets Mr. DOMINICK. I am not able to do so, but from my knowledge elsewhere I should say not less than $1.7.5 in any case. Mr. Breckinridge. That much you think is received by the miners per day, but my question was how much does he receive per ton ? Mr. DOMINICK. No, I can not tell you how much. It is very uncertain in these mines. ■ • » Mr. BRECiaNRiDGE. Have you any general idea what it is? Mr. DOMINICK. No ; I think the only way it could be done would be to average the total amount taken out, the total cost of it, and divide it by the number of men em- ployed. Mr. Carlisle. And even these contractors make their profits? Mr. DoMiNiCK. He may make a slight profit, but the contractor is a miner, who may employ some one else to help him. Mr. Breckinridge. Can you figure this out? Mr, DOMINICK. I think so. But it was only 1 o'clock yesterday when it was de- cided I should come here, and I could not have the use of the books in the New York office yesterday. Mr. Breckinridge. You could consult the books and give that information ? Mr. DOMINICK. I think any data the committee require could be obtained. The Chairman. You could send that to us at any time ? Mr. DoMlNiCK. Will you note down just what you want ? Mr. Breckinridge. I hope you will make a note of it. The Chairman. If there is any gentleman present desiring to be heard against the duty on iron ore we will be pleased to hear him. If not, we will proceed to hear statements in regard to coal. New York, January 14, 1890. Sir: In reply to the inquiry, what is "the price per ton of iron ore paid to the miner only" made by the Hon. Mr. Breckinridge at the hearing of December 26, 1889, I would state: that upon every ton of ore sold by the Chateaugay Ore and Iron Company during the past three years, the amount paid the miner for mining a delivering the same at the mouth of the pit averaged ^LST-i^o- per ton. Respectfully, F. J. DOMLKICK. Hon. William McKinlet, Chairman Committee on Ways and Means. REVISION OF THE TARIFF. 39 VIEWS OP L. S. BENT. 208 South Fourth Street, Philadelphia, Pa., December 26, 1889. Dear Sir : Engagements preventing my appearing before your honorable commit- tee to-day, I take the liberty of presenting my views in writing on the subject of foreign ore in connection with the tariff and the manufacturing interests which I represent. The demand for free ore, in my judgment, can now be presented from a commercial standpoint, which can not fail to convince all fair-minded persons that immeasurable benettts to our country would follow without working harm to a single interest which is legitimately connected with the production of American ore, iron, or the products proceeding therefrom. To substantiate this permit me to present the following facts : First. That only ore which is suitable for the manufacture of steel is ever imported ; and if competing at all, can only compete with the like quality of domestic produc- tion. Second. The steel making ores produced in this country for the year of 1890 will closely approximate the following estimates : - Practically all the ore imported into this country is used for steel purposes, and therefore there is absolute absence of competition between foreign ores and the non- steel ores of this country. The whole quantity of ore suitable for Bessemer pig-iron which it will be possible to produce in this country during the year 1890 will not exceed five millions of tons. This estimate includes every ton of ore of suitable quality that can be raised by hook or by crook. Three and one-half million tons of pig-iron, it is estimated, will be required to supply the wants of the steel manu- facturers in this country during the year 1890. To manufacture this amount of pig- iron, 6,500,000 tons of iron ore of suitable quality will be required. One and one- half millions tons of Bessemer steel ore must therefore be imported into this country by our steel manufacturers, or their works will remain idle 25 per cent, of the year. One-half million tons of iron ore will come from the Island of Cuba, where the mines are owned by an American company, having invested nearly $3,000,000, and where the importation of this ore is the direct means of securing the exportation to the West Indies and South America of American coal, as return cargo in the steamers which bring the ore to this country. In 1889 the export of American coal in these ore ships has been almost equal, ton for ton, to the importation of iron ore. There is no reason why, by using these steamers, this country can not so develop her coal busi- ness in the West Indies and South America that she will absolutely drive English coal out of those markets. One million tons of ore will be imported froiri the Mediterranean, and the three hundred and fifty steamers which will be required to bring that quantity of ore to this country will leave our shores laden with wheat, cotton, and corn. By so much as the ship derives profit from the freight which she receives on iron ore on her voyage here by that amount will she carry her outward cargo from this country more cheaply. There is to-day no question of competition between imported and native ore, be- cause all the native ore is already sold, and the foreign ore is required to fill an ab- solute shortage of raw material. All the continental nations who are large manu- facturers of steel import the bulk of the ore which they use in the manufacture of pig-iron for steel purposes. The quantity of imported ore that these countries con- sume is so large that the quantity shipped to America is relatively quite small, and American shipments have practically nothing to do with fixing the price of the ore free on board vessel at its place of export. The price is fixed by the European de- mand. The freight that is paid by America for the carrying of this ore to this country de- pends, first, upon our harvests, and, secondly, upon the harvests of Southern Russia. At the present moment, to my own personal knowledge, there are seventy-five steamers chartered to bring iron ore to this country, and all of those steamers are rechartered to carry back com from Baltimore. Practically the whole of the imported iron ore is used in the furnaces located .at or near tide-water. Seventy-five cents per ton duty on these ores represents the cost of hauling 1 ton of iron ore 100 miles. Removing this duty, therefore, only enables iron ore to enter 100 miles farther into the interior than it does to-day. On the other hand, it will enable my company, as exporters, to go 800 or 1,000 miles by sea to compete with our competitors abroad. The condition of the supply and demand for Bessemer steel raw material has not materially changed in this country for the past five years. This country has never, since the introduction of the manufacture of Bessemer steel, imported less than twenty-five per cent, of the material consumed in the manufacture of the steel out- put; and the prospect for the future, judged by the past, is that the national growth 40 REVISION OF THE TARIFF. of the country -will keep pace Tvitb, and probably more than absorb, the increased out-put of native steel raw material arising from the new developments that are and have been coostantly projected. It used to come here in the form of pig-iron, but as this country increased her furnace capacity, the steel manufacturer now seeks to bring' it here more and more in the form of ore. As I have said before, imported ore is used in supplying the requirements of furnaces situate at or near tide-water, and a removal of the whole duty of 75 cents per ton would only pay for 100 miles of inland transportation of the ore, or double that dis- tance ou the finished steel product, while Lake Superior Bessemer ore would have to be transported 450 miles by rail beyond its present Eastern limit of use, to meet its foreign competitor. The effect of the removal of the duty on iron ore would be to slightly increase the importation, but not materially, as I have before stated. An- other eft'ect of the removal of the duty on iron ore would probably be that the ocean freight-rate on iron ore would be increased, and if so, the outward freight on grain and cotton would be diminished accordingly. Experience has shown that it is nec- essary for steamers coming to this country to take back grain and cotton to earn a certain sum for the round trip, and if ore pays more cotton and grain pays less, and vice versa. There are in Virginia deposits, said to be large, of quasi Bessemer ore, which probably can be used as a mixture by the addition ot the purer imported ores. At our works at Baltimore we shall require fully 1,000,000 tons of ore annually, and expect to be able to use 200,000 tons of that quantity of these quasi Virginia ores; but without the foreign ore to use with it I can not use 1 ton of Virginia ore in our works. The removal of the duty on iron ore would directly affect our business as follows : We should not require any protective tariff upon pig-iron or steel rails other than an amount sufficient to pay the freight from our works to the Southern ports, where England can deliver her goods as ballast in steamers going for cotton. In making this statement I have in mind our works now being located on Chesapeake Bay, very favorably located for coastwise and export business. Other works not so welllocated would require an additional protection, to the extent, probably, of $5 on pig-iron, and §10 on steel rails, and while such a duty could work no harm at any time, it would act as a barrier to prevent our markets being flooded with the surplus products of Europe in times of depression. I have thus outlined my views. Steel rails are now quoted at the same price at the shipping ports both in this country and England. I fully appreciate that my proposition opens up a wide field for serious thought, but the brief notice of your honorable committee desiring information has not per- mitted me to go further than to discuss these two points, which are the most im- portant to the interests that I represent. If, at any future time, I could be of any service to you or your committee, in elucidating the position I have taken, it would give me pleasure to come before you. Very respectfully, L. S. Bent, President Pennsylvania Steel Company. Hon. Wllliam McKlnley, Jr., Chairman Ways and Means Committee. IRON AND STEEL. STATEMENT OF MR. JOSEPH G. BUTLER. Mr. Joseph G. Butler, of Youngstown, Ohio, next addressed the committee. He said : Mr. Chairman and gentlemen of the committee, I represent an industry which is the foundation of all kindred industries of iron and steel. lu the Mahoning, Ohio, and Wyoming Valley, down in Pennsylvania, there was produced in 1888 about 9,000 tons of pig-iron. We shall manufacture in 1889 something over a million tons, or more than one-eighth of the pig-iron produced in the United States. We live within 7 miles of the Pennsylvania State line. We use Connellsville coke and Lake Su- perior iron for smelting, and I am here to protest against any reduction in the duty. We produced in this country in 1840 less than a half million tons of pig-iron. This has been gradually increased, until in 1869 we shall have produced something over 8,000,000 tons, or more than Great Britain ; and we have furnaces projected so that in 1890 we shall produce over 9,000,000 tons, or very nearly one-third of the world's production. This is done largely under a protective policy. We manufacture at Youngstown a supply of crude iron which is largely sent up into New England. We send it over different roads, and a very large amount of it over the Pennsylvania Railroad right REVISION OF THE TARIFF. 41 through Pittsburgh, the greatest iron-producing place in this country, right through the antliracite region, and lay it down at the New England farms and make a little money on it. We give cheaper pig-iron than ever before, and if you will let us alone and not reduce this duty we will keep on reducing the price the people have to pay for pig- iron. If not for the development of the pig iron industry to-day in this country, brought about under this protective policy, I do not know where we could get it to- day ; we can not import a ton. Scotch iron cannot be laid down here at |v!6 a ton. We have orders on our books, taken some little time ago, where we have sold Clove- land and other points our iron in place of Scotch iron. Some few years ago our iron was not known at all, and we had great difBcuIty to get it introduced. We called on one concern and persistently pushed our iron, and managed at last to get this iron in. They said that they would make a contract with us, and I gave the gentleman an option on a thousand tons. He took 50 tons as a trial. It turned out just right, and he gave us an order. Ever since then our furnaces for making this crude iron have constantly grown until the imported iron is pushed out. Mr. Breckinridge. In this price of imported iron do you include the duty ? Mr. Butler. Yes, sir. Mr. Breckinridge. What is the price ? Mr. Butler. I think Scotch iron is to-day worth 80 shillings at Glasgow. Then add the freight at which they can lay it down here. It has enabled ue to turn out this vast production. Now, I listened with a great deal of attention to a gentleman — Mr. Toby, I think his name is — in the remarks he addressed to the committee before lunch, and I was handed a pamphlet here of which I am told he is the author. If I am mistaken he can correct me. It is entitled a statement regarding the iron and steel interests of New England, and a petition to the Senators and Representatives of the New England States in Congress for the year 1889. There is one clause here I will read you : "New England being on the coast, can obtain her crude iron, both pig and scrap, at low water freights and at a low first cost in Europe." Now, as I said, I listened with much attention to what he said. If I had happened to come in after he commenced and got at what he said, I should think that he was talking for Old England instead of New England. He simply talked about what he wants in his section. We propose out West to take a broader view of this question. We do not single out one particular place, but we say this protection policy is ex- pected to take in the whole people of the United States. Mr. Gear. You do not believe in placing a tariff on a local interest? Mr. Butler. No, sir. I believe in protecting everything in this country, whether it is coal or sugar, no matter what it is; and I do not think a single industry should be singled out, brought here, and hammered at. I know the rolling-mill interest of New England does not amount to anything. We have got one located in Youngs- town which makes a vast amount, and one in Pittsburgh which makes more than we do. They must recognize the fact that this industry is moving west and south. A large amount of southern iron is taken into New England. That iron is brought from the South and laid down at Boston. These gentlemen want to get cheap pig-iron, and if you let us alone we will cheapen this product. The gentleman speaks of the high price he paid for coke. In these manufactories the present price is $1.75. Add |4 freight, and it has cost about $6.95 instead of $7. Assuming that the duty on coke, as I am informed, to be 20 per cent., if he goes to Nova Scotia, and they charge him a liberal price, say |3 a, ton on the vessel at Nova Scotia, add duty, 60 cents, and freight, $1.40, that makes $5 a ton laid down in New England. Why does he not go and get coke ? Why does he not go to Canada, where they pay a bounty of $d f Mr. Breckinkidgb. Yon think a reduction in the tariff would not lose the market ? Mr. Butler. I say at present it does not make much difference. There have been times, but just at present we have got something to fall back on, and we want to continue to increase this vast industry. Mr. McKenna. Yon say now, by reason of the price, the tariff is of no consequence f Mr. Butler. I say the present tariff' does not cut any figure at this time. Mr. McKenna. Owing to the recent rise? Mr. Butler. It cut a good deal of a figure at one time, but at present it does not cut any figure at all. On the other side of the water they need all the iron they can get. There has been a great expansion there and we are now wholly dependent on our own iron for supply. We are getting ready, and if you will let us alone we will increase this right along, year after year, until we are the greatest iron producers in the world. Mr. McKenna. Until the tariff is of no consequence ? Mr. Butler. Possibly. No tariff man will admit that. We want this tariff on everything we can produce in this country. We do not want to import anything. Mr. Breckinridge. What grades of pig-iron do you make ? Mr. Butler. We make very largely foundry iron. Mr. Breckinridge. For casting purposes ? Mr. Butlbk. Yes, sir. 42 REVISION OF THE TARIFF. Mr. BR:fCKiNRjDGE. Where do you get your iron ? Mr. Butler. From Lake Superior. Mr. Bayne. Do you mine your ores ? Mr. Butler. I am interested Va ore mines and I am interested in making pig-iron. Mr. Breckinridge. Where ? Mr. Butler. Connellsville. Mr. Gear. You said in Canada they gave a bounty of $2. Mr. Butler. I understand so. I will be glad to answer any questions the commit- tee may wish to ask. STATEMENT OP "WILLIAM H. MORRIS. Mr. William H. Morris, of Pottstown, Pa., next addressed the committee. He said : Mr. Chairman and gentlemen of the Committee : Our works are located in the Schuylkill Valley, about forty miles from Philadelphia. We are manufacturers of iron and steel, and our products are billets, ship and tank plates, and cut nails. I just want to say briefly a few words in favor of the tariff on ore. You have hf ard a good deal about ore to-day, and I do not wish to wear you out and rub the subject threadbare, but I believe in protecting all of the industries. I think if I want protection on plates and nails that the ore producer is entitled to have it. The cheap labor is entiiled to protection from the tariff rather than skilled labor. We have men working who get as much as $5 or $6 a day. We have men getting |il.25 and $1.50 a day. Certainly, of those two classes, the men that are working forfl andlfl.50 a day are the men who need protection. The man who works in the mine would be idle to-day if he did not accept $1.50 to $2 a day. Hois certainly more in need of the protecting arm of the Government than the skilled laborer who can make much higher wages. We are large buyers of ores, so you see in speaking in favor of the protection of ores I am speaking against my own interests. The same thing applies to pig iron. While we manufacture pig iron we also buy largely, and I believe in the protection of pig iron. I think were it not for the tariff that we have been enjoying the benefit of for some years, we would find it difficult to get pig iron ; certainly we would have to pay miich higher prices than rule to-day. In hastily going over the statistics, I estimated, as Mr. Ely told you, we would produce this year and next year in the neighborhood of 15,000,000 to 16,000,000 tons of ore, and in 1888 we produced about 13,000,000 tons. I think that is a very good showing, that we have been able to very nearly reach the English production. Now, there has been a great deal said about ores and the quality of ores, aud if we were allowed to run two of our works — there is one part of our steel works standing idle recently, which I will explain — if we were allowed to run that, we would largely in- crease the consumption of ore, and be able to use a class of ore which to-day is almost unsalable — these phosphoric ores. We would not be depeedent upon the foreign markets for ores. I do not think it is the intention of this committee to force our labor to the Padrone system of labor. I might call attention to the fact that last year 30,000 tons of plate were impoi-ted. For the ten months of this year 125 tons of steel plates, and (5,000 tons of iron plates, have been imported, showing the duty on this is not sufficient to keep out the foreign article. We do not propose to ask for an increase in the duty, but we do ask that it be allowed to remain where it is, and we trust that this Congress will do something in the way of shipping, and giving ns good carrying facilities, so the plate business will be increased and we will be able to take care of ourselves. Mr. Flower. Why do you wish the shipping interests increased'? Mr. Morris. If ships are built in this country it will make a very large demand for shipping plates and boiler plates. Mr Flower. I thought you were interested in the rate of freights? Mr. Morris. No, in making the plates. Mr. Breckinridge. Would it add to the export sales? Mr. Morris. I do not think there are any plates exported. If there are they are very few. Mr. Breckinridge. Would you not expect to build up an export trade for plates f Mr. Morris. Not at the present time although we may come to that later on. The same thing applies to out nails which have been at a very low ebb for some two years. I must differ from my friend Mr. Toby in thinking we could stand a reduction in duty. There are some nails made in Canada. Certainly anything that would make the nail business worse at present would be a deplorable state of affairs. Mr. Gear. What are you getting for iron nails 1 Mr. Morris. They bring about $2. Mr. Geae. Has there not been an advance in the last ninety days ? Mr. Morris. Yes, sir ; there has been. Mr. Gear. About IF) to 20 cents ? Mr. Morris, Yes, sir. EETISION OF THE TAEIPP. 43 Mr. Baynb. Do you manufacture steel plates t Mr. MoRKis. Yes, sir. Mr. Bayne. What do you think of the duty on steel plates. Mr. Morris. I think on steel plates there should be a specific duty. It should be increased to one and a quarter for the steel plates the same as iron plates, for I be- lieve that specific duties are always better than advalorem duties. There is another matter, gentlemen, I wish to call attention to of arather different eharaoter from this. I am sorry I am forced to bring it before you. I undertand you propose to legislate as far as possible against trusts and monopolies. We have the Bessemer steel works, which we propose to run somewhat in the same line as the basic process which has been spoken of here. There are large supplies of ores in our country that are particularly adapted for this process. Mr. McKbnna. Will yon explain that process ? Mr. Morris. The difference between the acid process and the basic process is, in the acid process you use pure ore without any phosphates, and line the vessel with a salicious lining. In the basic process you use a different material. You use a lining that is made up of lime and dolamite, or something of that kind, and in doing so you are able to use the phosphorus ore. Mr. Bayne. Is this a cheaper construction ? Mr. Morris. No, sir; it is more expensive to handle, but the metal should be cheaper. Mr. McMillin. What is the difference in cost ? Mr. Morris. About $5 a ton on the average. The ores are worth much less. The Chairman. The basic costs Mr. Morris. Five dollars a ton more than the acid. Ordinarily I do not think the basic steel can compete with the acid steel ; certainly not for rails, but for ordinary soft steel I think it is as good. Mr. Gear. Do you get dolamite in your country ? Mr. Morris. Yes, sir; close by us. These patents the Bessemer Steel Association claim to own. I might say here that they did not spend a dollar in working out these patents, and it is not their intention to do so. It is simply holding these for the sake of preventing competition which they fear would injare their business. There was a partial attempt at Harrisburg some years ago to run an old plant which has been abandoned for the Bessemer process. They thought they could afford to experiment with that, and naturally it was a failure, Carnegie & Co. are running a basic iron hearth in Pittsburgh, but there is no basic Bessemer works running, nor has any ever been attempted on a thoroughly practical scale, except the iron plant at Pottstown, which we wish to run on a somewhat similar line to that. The members of this Bessemer association are the large rail producers of the country. They cer- tainly deserve credit for what they have done to cheapen the cost of rails. You know rails are selling as cheap here as at Liverpool. Mr. LaFollette. What is the price here ? Mr. Morris. About $35. There has been considerable advance in the last six months. They were selling as low as $26, and thd price in England was only a dol- lar or two difference. Mr. Flower. How cheap can Bessemer steel raUs be put on board at Liverpool ? Mr. Morris. I think at about $35. Mr. Flower. At what price have they been put on within the last two years f (Some person). Thirty-nine dollars. Mr. Morris. I am not here to criticise the rail-makers of the country, for I think they deserve a good deal of credit for what they have done, but I think they have rather overreached themselves in this matter of competitiou. The steel we propose to make is of a different character from what they propose to make, It is an entirely different class of steel and it is suitable for boiler-plates, ship-plates, and material of that kind. The Chairman. Why cannot you make it ? Mr. Morris. They claim to own these patents. Mr. Baynr. Cannot you get into ttiat association t Mr. Morris. No, sir ; I hold in my hand a report of a former interview before the Committee on Ways and Means in 1884. At that time this matter was brought up by Mr. Head, and the southern people were very much exercised because they thought they would have no opportunity of developing the ore, they were principally phos- phoric ores, and the south as well as other points in the country, and the rail men, sent a committee down. Mr. Wharton represented the Bessemer men. Here is a letter which was read at this time : " Office of the Bessemer Steel Company (Limited). " Philadelphia, October 29. 1883. "My Dear Sir: Replying to your application for a license for your company to nse the patents owned by this association, and relating to the basic process, I have the pleasure to report as follows : "This association will grant you a license to use the patents referred to at $1 per 44 REVISION OF THE TARIFF. ton royalty, and advance payment of .$50,000 to be made at the time the license issues as royalty on the first 50,000 tons of metal treated under the license. " Hoping this will prove eatisfaotory, " I am, very truly, yours, etc., " Jno. M. Kennedy, Secretary, " Per Eob't F. Kennedy. "H. S. Ch MBERLAIN, Esq., " President Eoane Iron Company, Chattanooga, Tenn." In the first place it is an outrageous royalty, and I do not believe that letter was written with the intention of giving a royalty. We were assured by the Bessemer people that if we would build our works they were prepared to grant the license, that they would go to work and develop this process, and we would have special terms. They failed to carry out their promise. They said that owing to some litigation of Mr. Reese, who claimed to be the inventor of the American patents, they preferred not to enter into any agreement just as soon as we said we were ready to do so. The Chairman. Has that been settled 1 Mr. MoRRip. Yes, sir ; they are declared to be the owner of Reese's patents. I will read part of a letter of November 14, 1889. I have had some correspondence with those gentlemen and I have had personal interviews. "Pending the organization of the new company it would be premature and inex- pedient to discuss the rate of royalty for the use of the patents referred to." After an interval of five years these people have not been able to fix a rate of roy- alty, and they are not willing to grant a license. Mr. Baynb. What did they pay for the patents ? Mr. Morris. This testimony showed they paid $'225,000 for the use of them. Mr. Bayne. If you could get in, would you not be a partner in the concern f Mr. Morris. I don't think you could buy an interest in the thing. Mr. Bayne. If you pay a royalty, do yon become one of the partners in the pat- ents? Mr. Morris. No, sir; but I have a right to use the patents. Mr. Bayne. By the payment of the amount you pay, you would share to the ex- tent of the payment of that fund ? Mr. Morris. No, sir. Mr. Bayne. Where would that fund go f Mr. Morris. In their pockets. Mr. Bayne. As I understand it this fund is kept separate ; that fund is not mixed up with their common property ? Mr. Morris. They decline to grant any license on any terms. Mr. Gear. What remedy would you suggest f Mr. Morris. I think the proper remedy suggested at that time, five years ago — it strikes me it is not the object of this Government to protect people and enable them to build up a grand monopoly and prevent everybody else from carrying on a similar business. Mr. McMiLLiN. I understand that they have got these patents and refu.se to use them themselves, and they refuse to let others use them and supply the country with their products by the use of this process. Mr. Morris. They are not, because there is a great deal of basic steel imported. Mr. Flower. Their object is to sell the Bessemer steel ? Mr. Morris. Yes, sir ; for rails and such blooms as they are able to make. There is one further thing I call attention to. In 1888 nearly 2,000,000 tons of basic steel was produced abroad. There was also 100,000 tons of slag produced. This is one of the best materials for fertilizing there is. It contains over 20 per cent, of phosphoric acid, and by actual experiments it has been found very valuable. Now, these gen- tlemen are doing not only a great injustice to the producers in the country and to the consumers in the country, but also to the farmers in the country. Mr. Bayne. Are they making basic steel? Mr. Morris. I do not know that they are making any except at probably one mill. Mr. Bayne. You do not seem to recognize the patented rights of these gentlemen ? Mr. Morris. I do, but I do not think they have a right to lock them up and say that others shall not use them. Mr. Bayne. If a patentee sells a patent you have a right to use that to the exclu- sion of the whole world. Mr. Morris. But these gentlemen are not using it. The basic process is not prac- ticed in this country to-day. Mr. McKenna. Do they monopolize the market? Mr. Morris. For Bessemer steel; they produce Bessemer steel and they supply that to the extent of their ability. Mr. McKenna. If you should make this basic steel, how much competition would that make? Mr. Morris. I do not think it would be competition, as it Is suitable for other pur- poses. They are afraid there will be some competition. They certainly bouo-ht it with that view. " REVISION OP THE TARIFF. 45 Mr. McKenna. What competition ? Mr. MoKRis. They are afraid if we make steel we will interfere with them. I saw a letter written recently callinp; the attention of members to the fact of this particu- lar testimony and promises that were made at that time to grant licenses at a rea- sonable rate, at 50 cents a ton if necessary. Mr. Bayne. How long are the patents ? Mr. MoKRis. The foreign patents are about eight or nine years old, and the Amer- ican or Reese patents, some of them, are still in the patent office. The Chairman. Can you make the Bessemer steel without paying a royalty t Mr. Morris. Yes, sir. Mr. McMiLLiN. But you can not do that with the phosphorus ore ? Mr. Morris. No, sir. STATEMENT OF JOSEPH "WHARTON. Mr. Joseph Wharton, president of the Bessemer Steel Association, next addressed the committee. He said : Mr. Chairman and gentlemen of the committee, I am chairman and president of the Bessemer Steel Association, limited, against which Mr. Morris has made charges. I remember very well the circumstances of the negotiations to which he has alluded. The impression with the officers of our companies is that the concern which Mr. Morris represents made endeavors to produce basic steel by other methods than those covered by our patents, and those efforts have not been successful. When the question rose it almost became a sectional question, because the Southern people thought that they were being discriminated against on account of their having phosphoric ores. They were not aware they had Bessemer ores as well . When the basic process began to be talked of in Europe some of our members examined the question, and became con- vinced that there was a great fature for the making of steel from these phosphorus ores. They made a preliminary purchase of the rights for the process which had been adopted in England, and these rights were bought finally, and so they ar' owned by this Bessemer Association. I had better explain that the Bessemer Association is not incorporated for manufacturing in any business. It is a voluntary association of the great steel mills of the country for the purpose of controlling patents relating to their manufactures. When the Bessemer process was originally patented there was an American patentee named Kelly who thought he had invented it. Some people thought we could work under Kelly's process and others thought the Bessemer process was the safer one, and that resulted in the formation of the trusteeship to own and control patents, both the KeUy and Bessemer— the American and English. All the companies then engaged in making steel rails participating in the purchase became joint owners, so this Besse- mer Association was formed which would own all the patents. They bought the rights of Kelly, and that association has kept them from tliat time to the present, and has acquired other patents that seemed necessary for the prosecution of their busi- ness. We could not aifoi-d to let somebody come in with a patent that would perhaps involve the' processes we have been working and forbid us to manufacture, or pay them a royalty ; so we have bought all the patents necessary for the prosecution of our business. Coming to the basic process, after an examination of it, we concluded to purchase it ; and then we became aware that there was an American claimant for all those patents — Mr. Jacob Reese, of Pittsburgh. While the patent was in dispute we were invited to name the price of royalty by which business could be done under this process. 'We did our best to get into position to name a price. Lawsuits and patents are very tedious things, and several years passed before that dispute ended. In the meantime we had informed the country, and those particular gentlemen in the South who desired to use our patents, that wo intended to allow the process to be used at a reasonable royalty. In point of fact, no Southern concern was found ready and no Southern concern is yet ready to go to the expense of putting up a considerable plant to manufacture steel by the basic process. We have applications made from all over the country. There is a large concern in the South, the name of which es- capes me, formed by the combination of a number of iron establishments. Mr. McMlLLlN. I think it is the Southern Iron Company. It is formed of various companies making charcoal iron. Mr. Wharton. Mr. Shook, the president of the company, has written several times lately to Philadelphia with the view of making an appointment with me and an investigation into this matter, and as to whether we could agree upon terms by which they could go into the business. Finally I told him what I am going to tell you. I think he was well satisfied that we acted in a reasonable manner. We had this dispute with Jacob Reese. This dispute was between the Thomas Gilchrist patents and Reese. So we became parties in the dispute, as we had thought it necessary to buy the Keese patents. Finally the Reese patents were adjudged to be the valid oneK. When we got so far, Reese made claims for certain inventions he had made which he claimed were not included in the patents sold to us, although his sale was of all xtatents relating to the making of this steel, and improvements he might make 46 KEVISION OF THE TARIFF. thereon. He olaimed certain things were not included. That entailed another long fight. Finally that fight was decided against him, and quite lately we became the undoubted owners of those patents. The Chairman. When was it finally disposed of? Mr. Whabton. Last October a year ago. Then we had a title, I think, for the first time to this property. Then came the question : If a man is invited to sell some- thing, he necessarily desires to know something about the value of the thing which he is to sell before he names a price. We had only the experience with the process in Europe, and the importance of that invention has not been overestimated by Mr. Morris. Experiments have been carried on on a large scale, and these experiments have demonstrated to us that the process is of very great value ; of greater value than we were prepared to hope for. So now we have two things ; we have a good title and we have acquired some idea of the value of the process. Now comes an- other complication. The Bessemer Steel Association was organized according to the best light we had at that time, but when we got to a certain expansion of the busi- ness, involving the dealing with outsiders and involving the question of locality and other C[nestion3, we found the association was not such a one as we thought best fit- ted to conduct the business. Last spring we therefore took such steps as were nec- essary for a reorganization among ourselves, and those steps have been going on to the present time. I was made chairman of this association last spring, and I have not had the thing out of my mind from that time to this. There has been no time lost in the endeavor to make this organization complete. Mr. Morris has been well aware of this — at least he has been told so. Probably he does not believe it. These are the facts. But he is grieving for being kept from enjoying a thing that belongs to another man. Mr. Morris no doubt owns a house, and he can not think it hard for a man if he comes to him and demands the price of that house and Mr. Morris refuses to name a price. I do not think that Mr. Morris would feel that the man was aggrieved because he refused to name a price for a thing he wanted to keep. I do not think he has any standing at all before a court of law, while before a committee of this kind I hardly see why he should bring it, as it is not a question of tariff. Mr. Flower. This Bessemer Steel Company does not manufacture anything ? Mr. Wharton. No, sir. Mr. Flower. Is it prepared some day to ofi'er for sale these rights ? Mr. Wharton. It is making all possible diligence now to do so. •■ Mr. Flower. I understand from Mr. Morris that it is not an eleemosynary institu- tion ? Mr. Wharton. No, sir ; we paid our money out and we hope to get it back. Mr. McKenna. Why is a reorganization necessary to name the price of a thing whose value you know bj' your own admission ? Mr. Wharton. A reorganization is neceesary because until it is effected no one has a right to speak. You probably would say that the president should have the right, but that is not the case. He has to be guided by orders from the companies who form the association. Mr. McMiLLlN. Could they not allow their representatives to act ? Mr. Wharton. They are using all diligence to come to that point. Mr. McMiLLiN. It does not take a reorganization to enable them to do that ? Mr. Whartox. It is necessary for this purpose. We do not now have any author- ized agent who can speak. It requires a certain large proportion of all members of the association to name a price at which anything in the nature of a patent license can be sold. This is the case now. Mr. Gear. Your organization is for the purpofe of dealing in these fiatents? Mr. Wharton. Ves, sir; exclusively. We keep this thing moving among our- selves, and are using all diligence to get the thing in shape, so that persons may be permitted to use this or any other patent we possess. Among our members there is a great difference of opinion. Some of them would shnt the door if they could ; others would open it and let the outside public in, not because we feel we are forced to do that, but because we think it is, on the whole, reasonable and right. That if they, for instance, did not choose to carry on a manufacture in the State of Georgia or Missouri somebody else shall be allowed to carry it on there by pay in o- us what we could agree on with the person desiring to use it. That is the whole story, and I have to regret taking up so much of your time in telling it. Mr. McKenna. When do you think this reorganization will be completed? Mr. Wharton. I understand we shall have a meeting of the association next month. There have been circulars sent out to members of the association iuvitino- them to respond affirmatively to the question, of joining in the reorganization. ° Mr. McKenna. Is there any prospect of their doing so ? Mr. Wharton. There is every prospect of it. Mr. McKenna. After that wbat do you think of the prospect of granting the right to sell these patents 1 o & Mr. Wharton. I am not sure we shall be able to fix it at a nrice that Mr. Morris ap- REVISION OF THE TARIFF. 47 proves of. That is a qnestion that does not concern you gentloinen. That is a ques- tion of private trade. My own intention is to speak in favor of a price that I think ■will be a reasonable one. It would not be right for me in relation to my coUeaaues to name the price that seems to me a reasonable one, for I have no right to bind them. There is no disposition on my part to do that. I have said so to Mr. Morris, who does not believe it. He can not come cheaply into a thing that has cost a vast sum of money, and a good many years' interest, and cost a good deal of toil, on the basis of the people who have stood by it for that length of time. He will have to pay the price, but it will not be so unreasonable that he can not come in. Mr. Flower. As far as you have experimented with the basic process, have you made steel rails ? Mr. Whaeton. Not yet. I think the chief uses for basic steel will be for other things than steel rails. Mr. McMlllin. Will it probably make steel cheaper than it can be made by the Bessemer process ? Mr. Wharton. No, sir ; I should think not. If we have got ores that do not con- tain phosphorus there is no improvement probable on the Bessemer process except mere details of construction. Where you have rich ores free from phosphorus the Bessemer process will be used. Where you have ores containing a good deal of phosphorus then the basic process will be cheaper, but I should not imagine steel rails can be made by the basic process cheaper than the Bessemer, the acid process. Thereupon the committee took a recess until 7.45 p. m. LEAD ORES. STATEMENT OF MR. OSCAR KEEN. Mr. Oscar Kben, attorney for the Newark Smelting and Refining Works, next ad- dressed the committee. He said : I am very much indebted to you for the privilege yon have granted to me of ad- dressing you very briefly in behalf of any action that this committee of the House of Representatives may take in respect to duties that may be imposed upon importation of silver-lead ores from Mexico into this country. I represent the firm of E. Balbaoh & Sons, of Newark, N. J., who are the owners and proprietors of the Newark Smelt- ing and Refining Works. They have been engaged in this business for over forty years. About three years ago last spring they embarked in a new enterprise in addi- tion to the business of smelting and refining ores. They embarked in the business of getting ores from Mexico imported into this country. These ores were silver-lead ores, and it was in pursuance with the rulings of the Treasury Department of the United States that were made by the Secretary of the Treasury in the month of Jan- nary, 1880, during the administration of Mr. Hayes, and also the administration of Mr. Cleveland, in 1886, that they engaged in this enterprise. The Treasury Depart- ment made this ruling, that where silver-lead ores imported into this country, where the sUver in value predominated in value over the lead in the ores, though the lead might predominate in quantity and weight over the silver, that in a legal and com- mercial sense these ores .were silver ores, and therefore not subject to duty. The Chairman. Because silver is free? Mr. Keen. Yes, sir. And I might add, Mr. Chairman and gentlemen of the Com- mittee, that it seems to be the policy of this Government that gold and silver ores shall befreeof duty, and where there are in the ores containing gold and silver small quanti- ties of lead, it is of no consequence and should not be considered by Congress or by this committee as amounting to .anything in the way of protection. Now, it was not until after Assistant Secretary of the Treasury French, in 1880, made that ruling in respect to the statute passed by Congress, and it was not until after Assistant Secre- tary of the Treasury Fairchild made a similar rulinij^, in 1886, affirming the ruling of Mr! French, that my clients, Messrs. E. Balbach & Son, embarked in this enterprise; and it was in the pursuance of that ruling and in consequence of that ruling and by reason of that ruling that they embarked in the enterprise. The Chairman. What is the quantity of lead that is brought over ? Mr. Keen. I know the quantity of lead compared with the quantity of silver is very small and the silver has always predominated. The Chairman. Do you know what is the proportion of the lead to the silver ? Mr. Keen. I do not; but I know the lead is smaller in value than the silver, and the lead used is for the purpose of fluxing. The Chairma^j. It takes the place of that quantity of lead that might be purchased here 9 Mr. Keen. Perhaps so, yes, sir, I was about to state it was in consequence of this rulingmade by the Department under the administr.ition of Mr. Hayes and of Mr. Cleveland that they embarked in this enterprise. Before that time they had been engaged in the business of smelting and refining ores for forty years at Newark, 48 KEVISION OF THE TAEIB^F. They employed 350 people in a population of 175, 000, and these are wage workers, and of these 175,000 Messrs. E. Balbach & Sons support, perhaps, 1,500 to 2,000 peo- ple, feed, clothe and house them. When the Treasury Department made this ruling they engaged in this business. In addition to the plant they had in Newark they put up in Sabinas, in the Republic of Mexico, additional works amounting to $350, 000 in value, and it was in pursuance of the ruling made by the Department that they entered into this enterprise. Last May an application was made to the Treasury Department to change the ruling made by Assistant Secretary French and Assistant Secretary Fairchild also. Secretary Windom, after due consideration, refused, and stated he had this ruling before him, and that this ruling was made by his predecessors in office and had re- ceived also the sanction of tlie Judiciary Committee of the Senate, of which Mr. Edmunds was Chairman, and that it should still be retained. The law now is that when silver-lead ores are imported into this country, where the silver pre- dominates in value over the lead, although the lead may predominate in weight, in a legal and commercial sense these are silver ores and exempt from duty. Mr. Burrows. So the lead always comes in free T Mr. Keen". Yes, sir. Now, my clients also have an establishment at Kansas City, and the reasen why Mr. Windom decided this question is this : He said his prede- cessors had made a certain ruling and that rule has been acquiesced in by the De- partment and by his predecessors in office, and on the faith of that ruling capital had been placed on that industry, and that it would be contrary to equity and good faith if the Secretary of the Treasury of the United States should change this ruling ; be- cause on the faith of that ruling men had put their money into that business and relied upon the faith of the Government of the United States that they would con- tinue to maintain the ruling that had been previously made. Now, I submit to this honorable committee where on the faith of the act of Con- gress and on the action of the Department gentlemen have placed money in an en- terprise, they have a right to presume that Congress will not change that ruling unless Congress is satisfied that any change of law that may be made will accrue to the benefit of the country at large and a better law than that which already existed. Now, gentlemen, what reason is alleged against the law as it now stands ? As I un- derstand this law it is this : Wherever silver-lead ores are imported into this country or elsewhere and where the lead predominates in value as well as in quantity, a duty should be imposed upon these ores at If cents a pound. It was the intention of the Allison bill, introduced last summer, to assess upon any lead found in the ore a duty of IJ cents a pound. That was contrary to the act of Congress March 4, 1883, and also to the act of Congress passed prior to that time. Now, what is the reason these gentlemen see fit to ask this committee to change the statute law ? As I understand, there was imported from Mexico during the year ending June 30, 1889, about $930,000 worth of lead. Now, the people of Montana and Colorado object to that, and I do not know for what reason. It is imported with sil- ver, and I will remark to you, Mr. Chairman, and gentlemen of the committee, that while lead imported from Mexico amounts to $930000, the value of silver imported from Mexico was $4,870,000 and some odd dollars. Now, if the committee please, there is no objection on the part of the people of Montana or Colorado to the impor- tation of this silver from Mexico ; and yet before the Treasury Department last May, they said that there was great objection on the part of the wage-workers to letting the law remain as it is. They did not, however, make any objection when $4,870,000 worth of silver was imported ; they diKi not think that interfered with the wage- workers. Yet this committee will easily see that if the importation of $930,000 worth of lead from Mexico interfered with the wage-workers of Utah, Colorado, and Montana, how much more would the importation of this large amount of silver do sot Now, gentlemen, the question to be considered is this — I did not come here in favor of free trade. I come from a district which has never sent here a man who is opposed to American industries. I represent a firm who are in favor of American in- dustries. And yet if you take from these people the law as it now stands and give them another law, you interfere with the operations of American industries and par- tially deprive one thousand five hundred people in the city of Newark of their bread and butter. Now, what interest is opposed to the law as it now stands ? It comes here to- night asking the committee to recommend to Congress that tlie bill passed by the Republican Congress in 1883 stand as it is. We ask for no change. We represent nine electoral votes and the State of Kansas has nine electoral votes also. The only people opposed to this are in the States of Montana, Colorado, and the Territory of Utah; and, gentlemen, I am told that the total value of the lead in the State of Montana Is 2^ per cent, as compared with the value of the other minerals of that Commonwealth. The Chairman. Do you think there should be a duty on lead ores ? Mr. Keen. No sir. I think lead ores ought to be free, as they are now. I think in a legal and commercial sense, where ores are imported from Mexico containing silver KEVISION OF THE TARIFF. 49 and lead and where the silver predominates in value, these ores should come in free, and where in silver and lead ores the lead predominates in value, they ought to be subject to a duty. I desire to say that I come here from a tree-trade stand point in this respect. I come here representing an industry in the city of Newark, and the same industry in the city of Kansas City. We do not ask any change in the law, but simply ask this honorable committee to submit to Congress that the law as it has been for years shall remain. The Chairman. Do I understand you to say that you favor a duty on lead if it is separated from, and not if it is assimilated with silver ? Mr. Keen. If the lead is brought in yer ae I think a duty should be imposed on lead. Mr. McMlXLiN. If I understand you correctly, yon think there ought not to be an embargo imposed upon importations of silver simply because it is found in connection with some baser metal f Mr. Keen. That is it. Mr. Baynk. These people simply refine the silver t Mr. Keen. Yes, sir; that is all. If you will ask some gentlemen — I will refer you to General Rosecranz, who is acqiiainted with the works of B. Balbach & Sons Mr. Bayne. Your word is good enough. They are general smelters and refiners, and they have embarked in this enterprise on the good faith of Congress and under the rulings of the Secretary of the Treasury. Mr. Keen. On the rulings of the Secretary of the Treasury and on the statute law passed by Congress. The Chairman. If you want silver metal you can import that free of duty, and therefore the lead is so much clear gain if you get it in freet Mr. Keen. Yes, sir. The Chairman. There is no embargo on silver, as referred to by Mr. McMillin? Mr. McMiLLiN. Our embargo I had reference to is that embargo that is necessary from its having to come across the country for miles packed in that way, with lead and dirt in the silver. Then the proposed tariff would be an embargo ? Mr. Flower. Where does this come from T Mr. Keen. Sabinas. Mr. Flower. How far from the railroad is that ? Mr. Keen. About 72 miles. It crosses from there by railroad to Galveston and then by steam-ship to New York City. Mr. Flower. Is that all the importation that comes from there ? Mr. Keen. That is a good deal of the importation. I will state that the Southern Pacific Railroad and its kindred corporation, the Morgan Steamship line, depend upon the ores sent from the West. What we want to do is this — that you should report to Congress that the law as it now stands and as it has stood for several years be kept the same and unchanged. Under that law we have invested a large sum of money in Newark. We have done well; we have provided homes, etc., for about 1,500 people, and all we ask is that the law shall remain. Mr. Burrows. You want the ruling as it is to continue ? Mr. Keen. Yes, sir, we want the law upon which the ruling was made to continue. In other words we do not want a change in the law. Mr. Bbbckenridge. You want the present ruling under the administration of Mr. Windom to continue 1 Mr. Keen. I do not mean his regulations of the 17th of July last, but his ruling of October or November whereby he aflirmed the ruling of his predecessors in office. As- sistant Secretaries French and Fairchild. Mr. Breckenridge. In which he set aside the regulations you speak of? Mr. Keen. Yes, sir ; We do not come here at the present time for the purpose of asking this honorable body to suggest any law of reciprocity. We perhaps may come to that in the near future, because these countries in Central and South America produce nothing in the way of machinery and manufactories which we produce. We have a large field of market to which we can send our goods. We have the machin- ery they use. They manufacture nothing there, and what we want here is raw ma- terial ; and we ask that it be given us in such a way that we can use it. The Chairman. When were your smelting-works established ? Mr. Keen. Forty years ago. The Chairman. Did you commence the business of smelting silver and gold before this ruling of the Treasury ? Mr. Keen. Yes, sir ; but we never entered into this business of importation of Mexican lead ores until after the Secretary of the Treasury in 1880 and 188(> gave an opinion in regard to the tariff' act of March 4, 1683, and the tariff' act of April, which was the s'lccessor of that. The Chairman. Was your investment made before that ? Mr. Keen. I had already stated, Mr. Chairman, and I will state it again, that it was only after this ruling, and in pursuance of this ruling, that we embarked in this 485 4 50 REVISION OF THE TARIFF. Mexican business and put in additional capital to the amount of $350,000 in our plant, and that is one of the reasons why the Secretary of the Treasury did not re- verse the ruling when ho was asked to do so last May. He applied this doctrine : That where parties under the faith of the ruling had invested money in an enter- prise, it was the duty of the Government to consider that the money so invested in that plant was properly invested. In other words, that the decision of a previous Department was binding upon their successors in office; and inasmuch as his prede- cessor had so decided, Mr. Windom made this ruling. The Chairman. Where did you get your silver ores prior to this ruling ? Mr. Keen. In diiierent parts of the country. The Chairman. Did you get it all in this country ? Mr. Keen. Yes, sir. The Chairman. And the fact that you could get lead in the silver made you pre- fer to import it rather than buy the home product I Mr. Keen. Yes, sir ; I was about to observe to the Chairman that the silver ore from Mexico about paid the expenses of bringing it over, and the lead also afforded a good flux. The Chairman. You mean the lead ? Mr. Keen. Yes, sir ; this lead is useful for fluxing. It ia dry ore generally, and the fact is, these people would rather have these Mexican ores because they are better ores than those of Montana and Colorado. Mr. McMlLLlN. This is useful for fluxing native ores ? Mr. Keen. Yes, sir; and I was about to state that this ore is used much by the people of Montana and Colorado for that purpose. There are gentlemen — I do not know whether they will address your committee — sent here from Montana and Colo- rado who say they need these ores. There are two mines in Colorado which have these ores of the same quality and quantity, but they charge the people who want these ores very high prices, and the result is they alone have these ores and nobody else can supply them, and they compel the people of Colorado and Montana to use them at high prices. Mr. Gear. Where is that mine in Colorado? Mr. Keen. Leadville. Mr. Gear. They do not use any Mexican ores there ? Mr. Keen. No, sir; but you will iind that when Governor Grant came here last May and made an argument before the treasurer, he admitted he had used ores and fluxing in Colorado works. Mr. Bayne. You speak of the predominance of silver in lead. Do you mean in value or weight ? Mr. Keen. In value. The ruling now established by the Treasury Department is, where the silver predominates in value, that in a legal and commercial sense it is sil- ver ore and free of duty. Mr. Bayne. This ore which you procure from Mexfco has relatively very little sil- ver in it compared with its weight ? Mr. Keen. Yes, sir ; but in every instance the silver is largely superior in value to the lead and all silver-lead ores imported by E. Balbach& Sons, of Newark, are really silver ores; that is, the silver is predominant in value, and they come under the rul- ing of the Treasury Department and the Judiciary Committee of the United States Sen- ate. Mr. Bayne. I understand you imported some ore where the lead predominated in value ? Mr. Keen. I understand there are instances of that kind, but where that has hap- pened they have paid the duty. Mr. Bayne. And where the silver predominates? Mr. Keen. They did not pay the duty. Mr. Bayne In point of weight what would be the percentage between them where the silver predominates? What would be the relative weight of the two metals? Mr. Keen. Of course the lead would weigh considerably more. Mr. Bayne. But take 100 pounds of ore combining silver and lead. Mr. Keen. I do not know that I can answer that cfuestion correctly. I have come for the purpose of addressing this committer on the policy of the Government in regard to the matter, and I am not prepared to give those statistics. Mr. Bayne. That is the very tiling that affects the policy. If you are importing a vast quantity of lead ore and a small quantity of silver you are getting this lead here free — that imported leas. 6d. and 5s., respect- ively, even though the small manufacturer is content with 5 per cent, for his wages and profit. As an old hand I think the Sheffield knives a trifle better, but they have no pretension to good quality, and I must admit that, as far as the ordinary public go, the German knife is equally or more salable. I learn from New York that the old American preference for Sheflields, except for iine goods, is dying out, and that all the dealers in cheaper lines now keep the Solingen products when prices tempt. The real issue is, therefore, between Germany and Hallamshire to-day, though I believe in happier times I have paid as much as Gs. tid. or 7s. and 16s. or IBs. for knives now made in Sheffield at 58. and 10s. dd. ; but this is of no earthly consequence to-day compared to the fact that the Solingen productions are becoming equally acceptable, and are 20 to 30 per cent, lower than ijresent 'sweated' Sheffield terms. "It is a legitimate and laudible object to attempt to raise the wages of a very un- derpaid class of skilled artisans, for there is much manual dexterity and trained in- genuity in even the commonest cutlers, but it will task all the wisdom and tact of their leaders to avoid the risk of a majority finding out that no bread is even worse than half a loaf. "Yours truly, ' * *." Also extract from "London Ironmonger" of October 26, 1889 : "effect of FOREIGN COMPETITION ON SHEFFIELD CUTLERY. "The first result of the combination of spring-knife cutlers in Sheffield has been the discovery that foreign competition is to blame for the low wages earned by many men in this trade. The extent of the trade may be gathered from the fact that seven- teen hundred members have already joined the Spring-knife Cutlers' Union. In con- sidering this statement and the facts I mention below it must be borne in mind that the cutler is only one of several trades engaged in the manufacture of a knife. The grinders and forgers, for instance, are distinct trades. The cutler is the man who puts the parts of the knife together and finishes it. The union alleges that there are hundreds of these men working from seventy-two to eighty-four hours per week at an average of 2|(2. per hour. In all those cases where the employers are approached for an advance they reply that they cannot give it because of foreign competition. From facts which are within my knowledge I believe this is quite true. I have been assured by manufacturers that they have been ashamed to give out work to men at the prices they could offer. But they have added, ' What can we do ? We have either to let the order pass us or take them at their low prices.' The following are 68 EEVISION OF THE TARIFF. some of the prices paid: For a 3i peacli-pruner, square J°'">, o <= c> Nl D tr. O o o ^-g c IT- a> 4^ .- P-ta « o go ;■■; 1 fe " t 5 ■ o ^ o i ^", ; ^t^ bh 5 = -t-3 CD rid O o o 7-: 2 & ; CI 3 5 d 5 s ^ f3 oi .~i m ; a fl a □ ; ?i c3 ig « 33 a - a 3 is ri r— ;:2 ,2© 5 a ■H -^ :zl -£ w 1i+^ t; ^ -^ M B 6^ ID S O O P'P. O O o r o E. 9 3 o'x n i- p i^ rt -I rt o a d g p C3 o rt c3 3 a tn «,rf t:,rt O . o P o a a 33 ,•2 3 c8 ee,2 s,a a c3 p. c^ ,a .^ - H W U OCM -^? si per cent, difference. Mr. Carlisle. Can you get'Americau steel here as cho,aj)ly as you can buy English eteel ? Mr. Landers. I do not know the English price ou steel now. We used it up to ten years ago, and now we use extUisivtly American steel. Mr. Carlisle. Do you tliink the American steel is of a better quality ? Mr. Landers. For table cutlery, unquestionably. Mr. Carlisle. Is the diilcreuce jiaid in our steel works here and the wages paid in the steel works of England greater ? Mr. Landers. I do not know the wages the steel-workers in England get. I know aliout tlie wa>;es of the cuUers, but I know nothing about the other. Mr. McKexna. How do your cutlers' wages compare with the wages in England* Mr. Landers. I have an extract from a Shoffleld paper, where a plant is, which states that the grinders get wanes of 14 sbillings a week. We have not a grinder that gets below |1.85 a diiy, aud .skilled grinders make from |2.50 to $3 a day. We have grinders sitting side by siilc, one of whom will make |2.50 a day, and the other, being Ujore skilled, will make .$5 a day. The Chairman. Do these things appear in the statements you file? Mr. Landbiis. I put the wages for the English cutler at 70 per cent, lower than in this country, as I do not propose to be brought up on any charges of exaggeration at all. To the TionorahJe Committee on Ways and Means : Gentlemen: The manufacturers of table cutlery, employing some two thousand men, rospoilfully submit that the industry has been notoriously and increasingly unprolitablr for tire past fifteen years. Investments to the amount of $1,500,000 have been utterly wiped out, and in no case has the manufacture of this line of goods been able to sustain itself, save when associated with some other industry. This state of .affairs has been brought about by the continually increased importa- tions of tlie fnicii;n undervalued product. We call special atteutiou to the fact that the compctilion is entirely one of labor, as the materials of all kinds n,sed in the production of this line of goods .are obtaina- ble in this country at fully as low rates as in England or Germany. The situation can be summed up in the fact that the average wages of the Ameri- can cutler are at least 70 per cent, more than those of the English, aud the difference in Germany is much greater. Unless this difference can be equalized by a proper tariff, the wages of the Ameri- can cutler must be made the same as those of his foreign competitor, or the produc- tion of this line of goods must pass wholly into foreign hands. We further submit and are jiroparcd to prove that a reasonable protection, as pro- posed in what is known as the Senate tariff bill, will not enchance the cost to the consumer, as the difference in quistion has been almost wholly absorbed by the im- porters and middle men. We therefore ask the adoption of the clause 172, of the Senate tariff bill, with the following correction, viz: "Carving and cooks' knives and forks should be separated from what is known as regular table cutlery." REVISION OP THE TAEIFF. 79 As proof of thiSf the importation of tliis class has nearly doubled in the past twelve months, and is to-day almost entirely in the hands of foreign manufacturers. Senate clause corrected — correction and additions in italic : 172. Table knives, forks, steels, and all butchers', hunting, kitchen, bread, butter, vegetable, fruit, cheese, iilumbors', painters', palette, and artists' knives of all sizes, finished or unlinislied, valued at not more than $1 per dozen pieces, 1.5 cents per dozen; valued at more than |1 and not more than $3, 50 cents per dozen ; valued at more than $3 and not more than |8, $1 per dozen ; valued at more than $8, |2 per dozen; and, in addition, upon all the above-named articles, 30 per centum ad val- orem. All earring and cooks' hnives and forks of all sizes, finished or viifiiiislied, valued at not more than $i per dozen pieces, $1 jjfc dozen; valued at more than iii and vot more than §S, $2 per dozen piecet; valued at more than $8 and not more titan iijV2, is^'A per dozen pieces; valued at more than |12, %\- per dozen pieces; and in addition upon all the ahove- named articles, 'if) per centum ad valorem. Respectfully submitted, Charles S. Landers, New Britain, Conn. Waeeen p. Dustin, Turners Falls, Mass. I. HiRSCH, Chioago, 111. Committee of Table Cutlery Manufacturers. December 26, 1889. FROM WHOLESALE HARDWARE ASSOCIATION. Hon. WlLUAM McKiNLEY, Jr., Chairman Committee on Ways and Means: Deak Sir : A delegation of representative merchants from the Wholesale Hardware Association were granted a hearing by the subcommittee on the tariff of the Senate Committee on Finance on the evening of December 12, IRbS, and in response to their question as to what representations or arguments had been used to influence the large proposed increase of duties on cutlery and guns. The chairman of that committee, Mr. Allison, stated that it was based'ou the supposition of undervaluations. We made a statement to the committee showing that this charge ciiuie from interested persons, who desired to xjrevent all importations of these goods, and that a disreputable scheme had been set in motion to this end, and that substantially there wa;-i no foundation in fact for such charges, and that such charges against reiiutable merchants could not pos.sibly be proved or substantiated by any credible evidence. We discovered later on that the real argument on whicli was based the enormous increase proposed was a comparative table of costs of poclcet-knives in the countries of Germany, England, and America. This table is primed in the Tarifl' Eeports, Fiftieth Congress, first se&sion, report 2332, part 3, and may also be found in the Congressional Eecord of January 20, 1889, page 1022. This table was not submitted to us for reply when before the Senate committee, and we had no suspicion of its existence, yet it appears it was at that time in print, and in the custody of the committee. Considering we bad specially asked the com- mittee for any such information as they had, and their omission to favor us with this table, it seems unfair to us that Senator Piatt, of Connecticut (who was in the committee-room during all the time we were there), in the Senate discussion (Con- gressional Record, January 20, 1889, page 1028) should make the point against us that " it has not been questioned by any importer," referring to the very table. The reason we did not question it was because we did not know of its existence, but we propose to question it now, with a good deal of emphasis, aud show it up as notorious for lamentable ignorance or deliberate falsification on the part of the men who concocted it. 80 EEVISION OF THE TAKIFF. The table is as follows, omitting the separation of the cost of material and labor and only giving the total costs, the only items which are germane to the argument : American manufacturer's laile. — Belatwe cost of German, English, and American pochet cutlery per dozen. Description. No. of German Englieli I)lad63. C03t. coat. 1 $0.56 $0.91 2 .80 1.30 1 .63 .86 2 .74 1.21 1 .44 .72 2 .03 1.05 1 .38 .66 2 .68 .99 2 .81 1.39 3 1.05 1.86 4 1.21 2.16 2 1.01 1.64 3 1.29 2.15 4 1.44 2.46 2 1.12 1.76 3 1.39 2.30 4 1.58 2.02 3 4,42 6.25 4 4.00 6.50 3 6 51 7.63 4 5.71 7.90 Ameri- can cost. Iron-lined Jack knife, wood covering: 4 inclies - 4 Inches 35 inches 33 inches 3^ inches 3J inches 3| inches 3| inches Brass-lined penknife, ivory or stag covering: 2^ inches 2| inches 2| inches 3 inches 3 inches 3 inches 3^ inches 3^ inches 3J inches Brass-lined penknife, pearl or shell covering 3^ inches 3^ inches 3J inches 3| inches $1.90 2.70 1.75 2.50 1.48 2.16 1.39 2.07 2.92 3.96 4.63 3.35 4.46 5.15 3.38 4.76 5.45 12.00 12.50 14.50 15.00 The above table of comparative cost, of pocket-knives submitted by the American manufacturers, was, as we uurterstand it, the basis on which the so-called "Senate substitute" tariff on cutlery was built. This table was a gross misrepresentation of facts, and it is very difiScult to realize how such absurd statements could possibly gain credence with the Senate committee. Admitting this statement to be correct (for argument's sake), it would seem that the point would have suggested itself to the Senate committee as to how it was i)ossiblo for American manufacturers, under such conditions as they name, to have prospered and assumed the proportions they have, for with the 50 per cent, ad valorem duty now exacted addetl, the prices they name as their costs are in some cases over three times the cost of the foreign goods, and yet, according to the statement of the domestic manufacturers, the capital em- ployed in making pocket-knives was in 1887 nearly $2,300,000. (See Senate Report 12:«2, part 3, page 685.) Below we give a table marked A, which is an actual comparison supported by affi- davits of the same knives in the three markets already named, showing the manu- facturer's selling price in these different markets. This table covers the descriptions given by the domestic manufacturers in their table and can be readily substantiated by ^ny honest seeker after facts. REVISION OP THE TAKIFF. Table A. 81 1 3 3 4 3 German cost aa ner English cost as ner affldavitA.H. Sax- ton. affidavit A. H. Sax- ton. American mate. q o .14 Si at ■p.g, It 1"^ ^ E a ^^ o <^ ^W ^P O (D Sample No. DescriptioD. fl n ii] rt a» - d - 3 a 1 2-1 a < rS"3 ^1 wa % ■^1 o o o o i o o o .13 .2 ^ ill ill' . cb o q m ftO o a W H w < ■^■^ e foreign people counterfeit your anvils? Mr. Fisher. The Germans send over the anvils marked "Trenton, New Jersey," and we frequently get complaints from our customers about the goods. They do not put our name on them, but they put " Trenton " on them, which is about the same thing because we are the only manufacturers. If we get the duty we ask we will want nothing more from you gentlemen. Substitute for paragraph 429 in Senate bill the following — "Anvils or parts there- of, of iron or steel, or of iron and steel combined, by whatever process made, or in whatever stage of manufacture, 2.3 cents per pound. TIN-PLATES. STATEMENT OF "WILLIAM C. CRONEMETER. Mr. William K. Cronemeyee, of Pittsburgh, Pa., next addressed the committee. He said : Mr. Chairman and gentlemen of the committee: I come here to represent the Amer- ican Tiu-Plate Association, the object of which is to try and foster the tin-plate in- dustry, a thing whicli does not exist at the present time. The industry was killed right from its start by a decision made by Secretary Featherstono in 1864. At that time tliclaws impo.sed upon tin, or iron coated with tin, a duty of 2^ cents a pound. It was (lecidcil by Secretary Feathoratonc that that did not mean iron plates coated with I ill, but tluit tin-plates should be cl.assilied with tin in sheets and pay an ad va- lorem duty at 1liat time of 15 per cent. An attempt was made several times to man- ufacture tin-plates but very iinsuccessfnlly. The mannfaoturers who went into the business at that time were very much misled by the high ijriees we hadto pay out for the English tin-plale.s, and they could figure it out at a very good profit at thesd REVISION OP THE TAEIFP. 93 prices. Now, the firm with which I am connected is the United States Tin-Plate Company in Pittsburgh. There were two corporations there that went into the busi- ness of manufacturing tin-plates and were very successful for a year or two. The Chairman. What year was this ? Mr. Chonbmeybr. Ib73, 1874, and 1875 We were making a good profit. Mr. Gear. There was a premium on gold thenf Mr. Cronbmeybr. Yes sir. There was some premium on gold. At that time we were making some money out of the business, and wben we had hardly got started the price came down till the price got to $4.50 for some classes of goods, and that of course knocked us out of the market altogether and we had to give up. Mr. Bayne. Will you state what the tin-plates sold for ? Mr. Cronbmbybr. They sold for $12 and they came down to |4.50 ; besides our mill there were two other mills started simultaneously. Mr. McMiLLiN. In what year was this selling for $12. Mr. Cronemeyer. In 1873. We gave up the business in 1876, We were forced out of it ; and we then engaged in the manufacture of sheet-iron of various kinds. lu 1879, when we were supposed to be entirely out, the price of tin went up to |9 or $10. We immediately started again, and we had only scarcely started in than the price went right down. Of course we investigated how that was shortly after we had started, and we found out the importers when they learned we were making tin-plates would put down their prices so as to kill us off; when they thought they had us dead they would put all the prices up again. It was always just this way. Mr. Bayne. Have the producers in England an association t Mr. Cronemeyer. A tin-plate association 1 I think they have. Yes, sir ; I am sure they have. Mr. Bayne. They authorized that scale of prices ? Mr. Ceonbmey'ER. Yes, sir. Mr. Burrows. Have you been in the manufacture of this article since 1879 ? Mr. Cronemeyer. We have in a small way. This is what 1 came here to say : An argument has been made that we can not manufacture tin-plates The Chairman. Tell the committee what a tin-plate is. Mr. Cronemeyer. Yes, sir. I have samples here ; and I would like to demonstrate just what a tin-plate is, and how it is made. Mr. BuEEOwa. Are we manufacturing any in this country now ? Mr. Cronemeyer. No, sir. There are no tin-plates manufactured in this country at present. Mr. Gear. How much did we use ? Mr. Cronemeyer. The consumption during the last fiscal year ending June 30, 1889, was 360,000 net tons. Mr. Gear. Including terne-plates ? Mr. Cronemeyer. And terne-plates. That is, we are consuming that amount of sheet-iron. We think this industry in this country is hampered and interfered with by this tin-plate tariff, so that sheet-iron manufacturers are really always in a qaandry as to how to meet the competition on tin-plates. Mr. Carlisle. Please state the diflerence between a terne-plate and a tin plate. Mr. Bayne. I think it would be a good idea for you to begin at the lowest grade. Mr. Cronemeyer. Here, then, is a piece of common sheet-iron. Sheet-iron like this has a duty of 1.2 cents on the pound. This is wire gauge No. 26. Mr. Flower. And the tin on it? Mr. Cronemeyer. It has not been prepared with tin. It is the common or black iron. Now, here is a piece of charcoal iron that is pickled. This is a better grade of iron. It is grade No. 23, pickled charcoal iron. Mr. Flower. What is the duty on that ? Mr. Ceonemeybr. It is the same as the other. Mr. Caelislb. It is subject to the same duty when pickled. Mr. Cronemkyke. No, sir. That was the intention, as 1 understood, in the last bill. I must correct myself there. This is No. 26, and pays a duty of 1.2 cents instead of 1.1 cents. This is a piece of soft steel, cold-rolled. No. 25 gauge. This is iron that would come in at 45 per cent, ad valorem. It is identically the same article as this [illustrating] but it comes in under a different class simply because it is given an- other name. Mr. McKenna. Same as what ? Mr. Ceonemeybr. About the same as the charcoal iron. It looks^the same and works the same, and it is the same. Mr. Carlisle. There is a difi'erence between tlie duties all the way through be- tween charcoal iron and other iron ? Mr. Ceonemeybr. I believe there may be some classed with heavy plates, but not on sheet-iron. Mr. McMiLLiN. There is a difference between steel and iron all the way through. Mi. Cronemeyer. Yes, sir. There is a diiierence there simply because sheet steel 94 REVISION OF THE TARIFF. lias come into the mariet lately, and was not provided for especially under, the last tariff act. Thirty-five per cent, ad valorem is the duty. Here is some iron made at our works. It is No. 34 cold-rolled tagger, seven one-thousandths of one inch thick. That is something that requires the most skilled lahor to make. That piece there pays 1-i cents. This is iron ore for which on the other sidi^ they probably pay 3 cents a pound, 30 per cent, ad valorem. That would he near nine-tenths of a cent. Mr. McMiLLiN. Is this iron or steel? Mr. Crojjemeter. This is a piece of steel. ' Mr. Flowek. How many do they require to the inch ? Mr. Ckonbmbtek. Seven one-thousanths to each inch, that would be about 126 layers to 1 inch ; 34-wire gauge, that is. Now, there is another anomaly there. When this comes in it is made out of steel that only pays 30 per cent, ad valorem. When this sheet-iron is made out of steel, as sheet-iron it would have the higher duty and it is brought in for 4.5 per cent. So while the duty is 45 per cent, on iron it is only 30 per cent, on steel. That is a thing that certainly should be changed. Mr. Caklislb. What kind of iron is this? Mr. Ceonembybr. This is an iron we can not get in the regular run of this husi- ness. There are several ingredients in this iron which fit it for this business. The Chairman. Does the steel pay less duty than iron ? ^ Mr. Ceonembyer. It pays the higher duty simply because it was so decided. It is commercially known as tagger's iron, and it pays when made out of steel 30 per cent. There is a very large amount of this iron used in this country, and nearly all of it is imported from abroad. The Chairman. What are they for ? Mr. Cronemrybr. For photograph plates, signs, show plates, etc. These ordinary grades we can not make. If the tarifi' was properly adjusted it would come on the sheet-iron list at li cents, and if we could get If on these light sheets we could make the whole class and all this tagger's light iron. Mr. McMiLLiN. You are protected by a patent on this particular grade V Mr. Cronemeybr. It is not a patent. It is simply a secret we have got, which, of course, we will have to keep to ourselves. Mr. McJIiLLix. That is right. Mr. McKenna. Why do you call that tagger's iron? Mr. Cronemeybr. I really can not say. We have a supposition that the reason is because the word meaning to make tagger's is the German word which means beaten plate. So I suppose that has some relation to it, because it is used as a tag for certain things. After that iron has gone through these different processes it is pickled and cold rolled 32-gauge. Still that is classed as tagger's iron. It is sheet-iron in a finer form. This kind is put in at 30 per cent, ad valorem. This is iron as it is in condition for tin-plate. That iron has been first rolled in the common ordinary way. Then it is pickled with acid so as to take away all the iron oxide and to clean it. Mr. McKenna. This pays one-fourth of a cent more duty than common tagger's iron according to the law. Mr. Cronbmbyer. Now, gentlemen, I believe that is the law, hut I have not heard anything of the duty being imposed. It always comes as commercial black tagger's and pays 30 per cent, ad valorem. It is boxed up in boxes. This is the way it is boxed [illustrating]. It is thenready for dipping. After we clean it by acid we an- neal it. Mr. Baynb. What do you mean by annealing t Mr. Ckonembyee. We put them in cast-iron boxes, air-tight boxes mostly, but we use wrought-iron boxes for it now. We leave it sitting in a glowing hot fire for about twenty-four hours, which makes it soft and ("liable. When we get through with that process it is cold rolled. After that process we have to anneal it again a second time. That annealing generally forms a very slight coating on this iron, and this is taken off by dipping it in a bath of sulphuric acid. After it comes out of the bath it is then rubbed off with palm oil and tallow, so that any acid that may be upon it is taken off. Then it is dipped in a bath of molten tin and it gets covered with tin. We then go further with it and dip it in another bath of tin, which is called in the language of the workmen " second bath." This is best refined tin. It is dipped in that and brushed off with the end of a brush uniformly all over, and after that brushing it is again dipped in a bath of molten palm oil and it is there rolled. It is rolled on horizontal rolls which take the sheet down one way and up the other by the use of machinery. Two rolls take the sheet down and twobriugit np. Then it is called finished tin-plate. Mr. Carlisle. Which of- those processes do you call picj<]ing? Mr. Ceonbmeyer. The cleaning of the idat'e by the use of acid. Mr. Baynk. They go through that process and the plate which you hold in your hand comes out? Mr. Cronemeybr. This is the plate produced. [See plate marked A. P.] This is IX tin. 1 believe I was asked if we have made any plates since that time I speak of. EEVISION OF THE TARIFF. 95 a Wo have made some little plates just for demonstratiug aud showing it could be made in this country, and because it has been said we could not make the iron, which certainly was not true. Mr. Flower. What is the price of tin-plate ? You say it sold for |12; what is it to-day ? Mr. Gronemeyee. That same plate would bring about $7. It has gone up since from $4.50 to $7. Mr. Flower. Do you mean |7 in the foreign market ? Mr. Ceonkmeyi:r. No ; in New York, duty added. Mr. Gear. Is that IX ? Mr. Cronbmeyer. I am speaking of IC. This is only from $5.40 to |7. Mr. Gear. What is IX? Mr. Cronemeyek. One dollar to |1.50 higher, according to the market. Mr. Gear. Where is this mill located? Mr. Cronemby'ER. It is located iu Allegheny County, in McKeesport. This mill we have has a capacity of 6,000 tons of iron per annum. Mr. Flower. You said there were two others betwecu 1873 and 1876 ? Mr. Crokbmeyer. Since that time there have been established mills for the manu- facture of various kinds of iron, and we have about twelve mills fit to manufacture iron for tin plates. Mr. Bayne. Where was the tin made which you hold in your hand ? Mr. Cronemeyer. This was made iu England. [See plate marked E.] This [illustrating] was made in Pittsburgh, in a little plant, just to demonstrate that we could make tin plates. Mr. Bayne. When was that made ? Mr. Cronemeyer. In October of this year. If you gentlemen care to go to the trouble to examine this English plate you will see it is the best grade. Mr. Bayne. You are an expert in the business? Mr. Cronemeyer. I have had fifteen years' experience in the business. Mr. Bayne. Which is the better plate ? Mr. Cronemeyer. I do not want to say, sir, as I am making the plate; but I will let any gentleman who understands tin plates give an estimate. Mr. Flower. Why are the English plates of a lighter color thiin those you make? Mr. Cronemeyer. It is not a much lighter color. - Mr. FlowI'.r. It looks so from here. Mr. Cronemeyer. The difl'erence in color is only the kind of grease we use. Mr. Burrows. Have you completed your description of the method of manu- facture ? Mr. Cronemey'BR. I gave the last operation through which we put it, the rolling process, the polishing rolls. They are simply rolls 6 inches in diameter, three rolls on thetopandthreoon the bottom. Three are horizontal aboveand three beneath. They are driven with gear, and they all run at the same speed. Mr. Burrows. This is after the tinning ? Mr. Cronemeyer. Yes, sir; after the tinning. They are turned through palm-oil, and thus the tin gets the gloss. They would not be so glossy if they were not dipped in palm-oil. They would have a dull color if they were not covered with the palm- oil, which produces a gloss. Mr. Flower. Would there be a profit in the business at |7.50 iu this country ? Mr. Cronemeyer. Yes, sir ; if we have a guarantee that the price would not go below $6.50 we would manufacture it. Mr. Flower. Where did you get your tin from ? Mr. Cronemeyer. Block-tin ? Mr. Flower. Did you get it In tliis country ? Mr. Cronemeyer. We import the tin for the present. The Chairman. It is free of duty now ? Mr. Cronemuytbr. Yes, sir; and the price in New York for tin is always lower than at Liverpool. Mr. Flower. Is there any kind of tin obtained in this country? Mr. CrOnemeyee. Mines are now being developed which promise good results. Mr. Flower. Why do you not buy it hero ? Mr. Cronemeyer. As soon as these mines are developed we will. As soon as you give us a tariff on tin-plates, and enable us to manufacture tin-plates, we will cer- tainly be developing tin mines hero. Mr. Flower. You just said you had iirofit enough to make a profit on present prices. Mr. Cronemeyer. We could if you would gunraniy the price. Sinc<> we have started in the business we are sure that just as soon as we do start the price will go down. They will put the price down a certain amount and throw on tho market a lot of their tin. I will tell you how they did: When we attempted this business here before some importing houses sent their agents on tho track of our agents. When our 96 REVISION OF THE TARIFF. agents went to a house to try and sell a lot of tin-plates, they woulcf send their agent and make the price 25 cents less. In fact, they made the assertion that they would sell tin-plates for 25 cents less than ours, no matter what the price was. Gentlemen, this is the competition that this monopoly brougTit against us, and the competition we have to contend against is one of the greatest monopolies that ever existed. Mr. Flower. Are you familiar with the tin mines in the Black Hills ? Mr. Crokembyke. Not very. But we have a little investigation going in regard to it. Mr. Flower. Being such old mines can they mine tin cheaper in the Cornwall mines than in this country ? Mr. Cronemeyer. I am sure tin in the Black Hills is much cheaper than in "the Cornwall mines, and it is nearer to the surface. They do not have to go down so far to get the tin in the Black Hills. Mr. BAYNE.'Tho proportion of tin on that sheet is comparatively small. Mr. Cronemeyer. Yes, sir. On these sheets we put 6 pounds to the foot. Mr. Bayne. How will the relative value of the tin-plate compare with the price of the sheet before the tin is put on ? Mr. Cronemeter. We put on 6 pounds, 20 cents ; and put 120 to the box. Then we put on, in addition to the amount of tin, about one dollar's worth of labor to bring that from the common sheet into a finished tin-plate. Mr. Bayne. Can we make as good sheet iron as England? Mr. Cronemeyer. Yes, sir. Mr. Bayne. We can do it as well as they can ? Mr. Cronemeyer. Yes, sir. Mr. Bayne. And wo can cold roll it and anneal it as well as they can? Mr. Cronemeyer. We have all the facilities. Mr. Bayne. We can import as good tin and make as good a product? Mr. Cronemeyer. Yes, sir. Mr. Gear. Can you make it as cheaply after you have fairly started? Mr. Cronemeyer. If we had the works running now we could. Mr. Flower. Why don't you do it ? Mr. Cronemeyer. We have done it twice, Mr. Flower, and we have twice lost onr whole investments on it. Mr. Carlisle. Did not the price go down abroad when it went down here ? Mr. Cronemeyer. To some extent ; yes, sir. But the rule has been here that the price of tin-plates has been a quarter of a dollar below the price we could make hem for. Mr. Carlisle. Now you say it is worth about |7. 50 per box, this certain quality, this is the best quality, and the other is worth about $5. 50 ? Mr. Cronemeyer. This is a special grade here, and the other has hardly any tin. It is made of a common material, of iron, and made in a very slipshod way. Mr. Carlisle. The best sells in the market, duty paid, at |7. 50 for one grade and $5. 50 for the other. Is not the present price higher than last year ? Mr. Cronemeyer. Yes, sir. Mr. Carlisle. And for several years heretofore ? Mr. Cronemeyer. Yes, sir ; about A3 to 40 per cent. Mr. Carlisle. There is what is called a boom abroad in iron and ore, to a certain extent ? Ml . Cronemeyer. Not so much here. We have to suffer on account of that boom. Mr. Carlisle. Therefore, when the price went down here and you went out of business the price did not rise immediately, did it ? Mr. Cronemeyer. But very soon after it did go up. Mr. Carlisle. But it didn't go up until all the other prices were higher and its productions went up ? Mr. Cronemeyer. To some extent. Mr. Carlisle. It just kept along with other things ? Mr. Cronemeyer. It is more perceptible in tin-plates than in other commodities. Mr. Gear. How soon after you went out of the business did they put the prices up ? Mr. Cronemeyer. About six months, I think. Mr. Carlisle. I presume you know the prices, as you are interested in this thing. I presume you havakept yourself acquaiuted somewhat with the run of prices. Can you get the i>rices from 1873 until the present time for tin-plates and furnish them to the committee ? Mr. Cronemeyer. I have not got them in my pocket, but they can be produced here. Mr. Carlisle. The prices abroad and the prices here, duty paid? Mr. Cronemeyer. Yes, sir. Mr. Carlisle. I will be glad if you will do so; and also state the times when yon went out of business — each time you commenced and each time you went out. Mr Geaji. Are not these tin-plates sold by agents in New York ? REVISION OF THE TAEIFF. 97 Mr. Cronemetbk. Yes, sir. Mr. BxjKROWS. I understood yon to say the foreign producers, through their agents, followed your agents up and offered these tin-plates at 25 cents cheaper. Mr. Cronemeyer. Yes, sir. Mr. Burrows. And in that way closed your industry upt Mr. Cronemeyer. Yes, sir; it would not be a general decline, but they would manipulate against us in that way. Mr. McKenna. The price of tin-plates before the recent rise in prices was such that you could not manufacture and sell them and make a profit t Mr. Cronemeyer. We could make a small profit. Mr. McKenna. Such a profit as would justify you in engaging in the business? Mr. Cronemeyer. Yes; but not on the prices before they rose. I mean at the present state of the market. The market to-day is 33 per cent, higher than six or eight months ago. Mr. McKenna. In answer to Mr. Carlisle you said that the present prices are boom prices. If they should decline to what they were before, could you engage in the business and make a profit f Mr. Cronemeyer. No, -we could not. It has always sold at about a quarter of a dollar below its cost to us. Mr. McKenna. Since when did you go out of this manufacture f Mr. Cronemeyer. Since 1879. Mr. McKenna. Then at the prices from 1879 up to the recent rise you could not make tin-plate at a profit If Mr. Cronemeyer. No, sir. Mr. La Follette. What was the price before this recent rise f Mr. Cronemeyer. It ran from |12 to $4.50, and then it fluctuated between $4 and $6 and $7.50, and as high as $9 in 1879. Mr. Gear. Could you make that I C tin at $4.50? Mr. Cronemeyer. No, sir. The cost of making that tin-plate is about $5.50, and that same tin they can make there for about $2.25 less ; in other words, the difference in labor they pay for the same work is $2.25 to $2.50 in the different districts. Mr. Carlisle. Will you state some uses to which tin-plate is applied? Mr. Cronemeyer. The uses are so varied and enormous that it would be difSoult to state what all its purposes are. But it is used for kitchen purposes, dairy pur- poses, canning meats, etc. There is a portion of the plate which is roofing-tin and used for roofing houses. The Chairman. What is the duty on the sheets which you use in making tin- plates? What is the present rate of duty? Mr. Cronemeyer. On common I C tin the duty is 30 per cent. The Chairman. I mean the sheet out of which you make tin. Mr. Cronemeyer. Thirty per cent, ad valorem. And if they get heavier than 29 gauge, it is 1^ cents per pound. The Chairman. What gauge do you use generally t Mr. Cronemeybr. Mostly 30 gauge. The Chairman. That would be 30 per cent. ? Mr. Cronemeyer. Yes, sir. The Chairman. What is the duty on the tin-plate itself? Mr. Cronemeyer. It is 1 cent a pound, but if we take 28 gauge it is H cents per pound; that is, on 28 gauge, the corresponding gauge of I X. The Chairman. What would be the ad valorem equivalent on that tin. Mr. Cronemeyer. Twenty-five per cent. The Chairman. Then the duty on the plate out of which the tin is made is higher than the duty on the tin-plate itself? Mr. Cronemeyer. Certainly. The Chairman. There is no additional duty given for the additional labor in mak- ing it into the tin-plate? Mr. Ckonembybr. No, sir. When you go back to the raw material you will find it higher in comparison than the finished article. Mr. Carlisle. You made this one plate here? Mr. Cronemeyer. Yes, sir. Mr. Carlisle. You would not make any of these (referring to inferior plate) ? Mr. Cronemeyer. No, sir. Mr. Baynb. How does the Senate bill suit you in regard to that industry? Mr. Cronemeyer. I think in the main it suits very nicely. I think those gentle- men there have investigated the thing very thoroughly. Mr. Bayne. What would be the average ad valorem of the Senate bill ? Mr. Cronemeyer. It would be about 50 per cent. There are different thicknesses, from $1. 85 to $2. 15. ■ r Mr. Bayne. The bulk of the tin made is of what gauge ^ Mr. Cronemeyer. 28 or 30. 486 7 98 EEVISION OP THE TARIFF. Mr. BA.TNB. What would the duty be on these two according to the Senate bill T Mr. Cronemeyer. It would be $2.15 on the 28 gauge and on the 30 gauge also. Mr. Baynb. So that the bulls; of the tin would be $2.1.5? Mr. Cronemeyer. The Senate biU includes the 30 gauge with the 28 gauge. All below 25 is 1.4 cents per pound. Mr. McMillan. What do you say the duty is by the Senate bill as proposed I Mr. Cronemeyer. From $1.85 to $2.15. Mr. McMillan. What wonld that be ad valorem f Mr. Ckonemeyer. I can average that only about 50 per cent. Mr. McMillan. It would be doubling the present duty J Mr. Cronemeyer. Yes, sir. Mr. McMillan. And on the other grades it would be more than doublet Mr. Cronemeyer. A little more than double. It would be an equitable duty so as to protect it as well as the crude material out of which the tin-plate is constructed. Mr. Bayne. Have you a statement of the comparative cost of a box of English plate as compared with a box of American plate t Mr. Cronemeyer. Yes. Mr. Bayne. Will you hand that to the stenographer so that he can have it printed with your notes f Mr. Cronemeyer. I have that, Colonel Bayne. Mr. Bayne. Will you furnish that to the stenographer if you can t Mr. Cronemeyer. Yes, sir. Will you allow me to state what an enormous indus- try this tin-plate would be if we ever have it at home ? I think I have mentioned that there was during the last fiscal year some 360,000 tons of tin-plate manufactured. This means about 500,000 tens of pig metal, about 500,000 tons of limestone, about 1,000,000 tons of coke, about 36,000,000 pounds of lead, and perhaps 1,000,000 pounds of tin. So if this mine in Dakota or some other mine is developed we find the home material right here. Mr. Gear. How many men does it take to make this plate ? Mr. Cronemeyer. I can describe it in this way : In a miU like ours — we have only working four mills, in which we can produce about 4,000 tons in a year of these light plates ; with 360,000 tons consumed it would take ninety mills. In our miU we em- ploy about 225 men, which would show that it would take only in the tin-mills about 23,000 people. Again we come to the extra labor required in manufacturing pig metal, getting the coal, getting the lead, tin, and lumber for boxing and the sulphuric acid, and the amount of capital involved would be about $30,000,000. Of all these men about 50,000 will support families — say 200,000 people — and 200,000 people wiU supply money to other trades — the tailor, the shoe-maker, the butcher, and so on ; and if all these people were together you would have a city nearly as big as New York City. Mr. Carlisle. Are the men employed in the mill now engaged in the finishing and manufacture of sheet-iron f Mr. Cronemeyer. Yes, sir ; we are making sheet-iron. Mr. Carlisle The labor in the manufacture of tin-plates is quite a disagreeable one on account of chemicals, I believe? Mr. Cronemeyer. No, sir ; that is one of the things people are greatly mistaken about. It is the nicest kind of labor. You can go in any iron works and you will find disagreeable elements attached. I would not be ashamed to have a lady go into our tin works, and ladies would not be afraid to do some of the work assigned to the women in our works, which is in the finisiiing department. They rub these sheets off when they come from the bath, and they polish them with sheep-skins. Mr. Carlisle. But there are some parts of the work which are disagreeable to the aborer employed, on account of the various chemicals and acids? Mr. Cronemeyer. Not much so. Mr. Carlisle. Is it a healthy occupation T Mr. Cronemeyer. Just as much so and more so than a great many other indus- tries. It is a great deal more so than making white lead and some other chemicals. Mr. Carlisle. That is not mj question. Is it a healthy occupation ? Mr. Cronemeyer. It is not injurious to them. They have to inhale a little sul- phuric-acid fumes and the fumes of some palm-oil. They get used in a short time to the smell of the palm-oil. Mr. Bayne. You say you made a little tin-plate lately at the exposition at Pitts- burgh 'I Mr. Cronemey-er. Yes, sir. Mr. Bayne. You had employed a number of skilled workmen and workwomen t Mr. Cronemeyer. Yes, sir. Mr. Bayne. Did ladies and others visit that establishment? Mr. Cronemeyer. Yes, sir. M 1 . Bayne. Have they ever complained about the offensiveness or anything there I REVISION OF THE TAEIFF. 99 Mr. Ckonemeyer. Some of them of course felt a little smoke in their throats, but the ladies -were there for hours, because the prooese was so interesting. Mr. Bayne. If this industry were established in this country it would give employ- ment to a great many men and women? Mr. Cronemeyek. Yes, sir. In England they have women to pickle the boxes. They get wet feet and their dresses get wet, and we never employ women except in the finishing process. Mr. Gear. How much would the increased duty afifect the prices of the common household utensils ? Mr. Cronemeyek. I cannot say how much. Mr. Gear. Take a dozen pint-cups. That is a more familiar illustration. Mr. Cronemeyek. I do not know about a pint-cup. These arguments have been made against us in former years by the canners. To-day the cauners are on our side, because they realize that when we can employ 500,000 people among the iron works of Illinois, Pennsylvania, and in other States, the canners would have much better trade from 500,000 people in tliis country than they would get from 75,000,000 people in foreign countries, and that is the reason we are all on one side. Mr. Bbbckineidgb. What kind of ore do you use to make plates ? Mr. Cronemeyek. We do not manipulate our own ores, and we use mostly Bessemer steel billets and charcoal iron. We can use very nicely a phosphorous ore. I might say right there the nicest tin-plates I have seen made yet were made in Germany from Bessemer steel. Mr. Breckinridge. So far, what kind of pig have you used ? Bessemer pig ? Mr. Ckonemeyer. We use regular forged iron — iron found right in the hills of Pennsylvania. It is not a siiecially selected iron. It is a hematite iron that is found in the Pennsylvania mountains, with a little Lake Superior ore, not necessarily Bes- semer. Mr. Breckinridge. You say it is a composite iron? Mr. Cronemeyek. Yes sir. We use iron of ordinary quality, and of course it is re- fined in a charcoal fire. It is reduced into a wrought-irou and run through a charcoal fire. Of course the process is rather expensive, and the steel-plate has taken the place of the charcoal-plate. Mr. Breckinridge. In what form do you buy your iron ? Mr. Cronemeyek. In the form of pig metal and steel billets. Mr. Breckinridge. That is the basis of your industry. Mr. Ckonemeyer. Yes, sir. This is the basis on which we started. There are some other manufacturers of sheet-iron who can manufacture tin-plates and probably the iron to make the billets themselves. They have the hearth furnaces to make the plates. In regard to your question about cans : One pound of tin-plate will make three ordinary one-quart fruit cans, and if this additional duty asked for was put on, it would not equal more than a third or half a cent a can on a fruit can or can of veg- etables. On a dozen fruit cans of tomatoes, which sell on the market for probably $1.25 a dozen, the difference would be only about 3 cents more, which would be about $1.28 a dozen, and the consumer will never feel these three cents. We do not propose to add the duty if we can get a little more and get a guaranty. Mr. Burrows. You would expect the rate would be cheaper than now ? Mr. Cronemeyer. I believe so. Mr. McMiLLlN. It would be held there for years t Mr. Cronemeyer. I do not know. It would be more than two years. After we get fifty mills in this country and exchange our ideas we can reduce the price by the use of improved machinery and methods which they never thought of in the other countries. Yon would be surprised to see some of the tin-workers who come over here. They know their business, but when you ask them why they do a thing in a certain way they say, "Because my father did it, and my grandfather before him," and therefore they think they have to do it the same way. I will offer here a piece which I clipped from the Ironmonger of A-Ugust 10, to show you how they regard it over there. Mr. Carlisle. Where is that published! Mr. Cronemeyer. In London. [From the London Ironmonger, August 10.] " The efforts which are being made in the United States to familiarize the people of that country with the idea that tin-plates can and should be manufactured there are well worthy of the sustained att ention of the manufacturers of South Wales and Eng- land. The promoters of the home-made plan are exceedingly pertiuacious, and are leaving no effort untried in order to achieve success. At an exhibition to be held at Pittsburgh this autumn the process of manufacture is to be carried on in a practical manner, a sum of nearly £1,000 being expected to be laid out on the plant for the purpose. It is anticipated that by thus interesting the American public, and show- 100 REVISION OF THE TARIFF. ing "how simple the business is," the way will be made easier for pushing a bill through Congress next session, having for its object the imposition of much heavier duties upon imported tin-plates. Should this scheme succeed then there is no doubt that a great deal of American capital wiU be promptly embarked in the business, and, sooner or later, the tin-plate trade will cease to be a monopoly of South Wales and Monmouthshire. Nevertheless, we see no reason why the manufacturers of tin-plates iu this country need grow disheartened or despondent. They have the advantages of possessions, position for shipment, trained labor, and all materials on the spot. These are very important points ; but, in addition, the Welsh makers have strong allies in the United States, and, if the alliance is made the most of, we should have very con- siderable doubts of the success of any application to Congress to increase the present duties. But to insure that result the Welsh makers and their business connections must not only watch but work, and work hard, to checkmate the advances of the American ultra-protectionists." The Chaiuman. Is there anything further t Mr. Cronemeyee. I believe I am about through, for my part. Mr. Caklislb. Does this manufacture of tin-plates require a high degree of skilled labor, or which any person of ordinary intelligence can perform ? Mr. Cronemeyer. Any person of ordinary intelligence could be trained in that business in six months. Mr. Carlisle. In regard to dipping ; do yon nse women and girls for that f Mr. Cronemeyer. No ; I would not like to see them doing that. Mr. Carlisi^e. I am not speaking of proposing to see them do that. I am simply trying to ascertain the grade and skill requisite tor the conduct of such a business. Mr. Cronemeyer. It requires for each tin stack, each tin hearth, several skilled men, and they must be very skilled men, and there is some kind of ordinary skilled labor which will be paid from about |2.50 to $5 a day. Mr. Carlisle. Is none of it less than $2.50 ? Mr. Cronemeyer. There are some that get $1.75. These are the men that keep the fires under the pits going and then watch it during the night. Of course they will be a little less. TIN ORE IN DAKOTA. Washington, D. C, January 8, 1890. My Dear Sir : As your committee has under consideration the question of the tariff upon tin plates, one of the facts for consideration is as to whether or not this country is capable, in any considerable degree, of producing its own tin. During the past summer I spent a short time in the tin regions of the Black HUls of South Dakota, visiting over a hundred mines and well developed prospects in the Harney Peak, or South Hills region, and in the "Nigger Hill," or North Hills region. My purpose was to satisfy myself as to whether or not there was a supply of any great quantity of tin in that country. The geology of this region is peculiar, and the whole question of the quantity of ore and the cost of mining is an interesting one. The fact that the tin deposits had been well known for several years and yet no tin had been produced for commercial use, except in small quantities, led me to in- cline to the opinion that the ore did not exist in paying quantities. I wUl not go into details, unless you should so request, but as the result of my persoual examination of a large number of mines and prospect shafts I became fully convinced that tin ex- ists in very great abundance iu both regions of the Black Hills. Stream tin abounds in the creeks and the ore deposits are plainly exposed and trace- able upon the surface. A want of adequate capital and lack of knowledge of the best methods of extract- ing the ore have prevented the successful operation of the mines heretofore, bnt money is now being freely invested in the Harney Peak region and an extensive out- put of cassiterite may soon be expected. In considering the tin question, in my judgment, the committee will be safe in doing so upon the theory that the mines of South Dakota will be able to supply our wants in the near future, and, in time, contend with Malacca and Cornwall in the markets of the world. Yours truly, John F. Lacky. )Iiiii, William McKinley, Jr., Chairman Ways and Meant Cvmmitiee, SfittStON OF THE tABli'S*. 101 VIEWS OF WM. H. McFADDEN. American Meter Company, Philadelphia, January 4, 1890. To the Ways and Means Committee, Souse of Representatives, Washington, D. C. : Gentlemen : An intelligent consideration of our interests as manufacturers, and the interests of those in our employ, demands that we should present the following : Any duty on tin-plates, much more any increase of the same, makes it the harder for us to compete with foreign manufacturers not only in the markets of the world, but also in our own home market. Yours truly, Wm. H. McFabdbn, Vice-President. CRUCIBLE STEEL. STATEMENT OP 'WILLIAM METCALP. Mr. William Metcalf, of Pittsburgh, Pa., manufacturer of crucible steel, next addressed the committee. He said : Mr. Chairman and gentlemen bf the committee : I hardly know why I am here to- day, except we received notice in the public papers the committee wished to hear iron and steel men, and Mr. Swank, our representative, sent for us. So far as I am familiar with the working of the tariff in connection with the steel business, in which I have been engaged for twenty-one years, I can only repeat the well-known fact that the development of the steel industry in this country has reduced the price of steel to the consumer in all grades from 30 to 50 percent, under our protective tariff; so that the consumer of steel, the farmer, the woodman, the carpenter, the mason and everybody who uses steel tools are getting their tools that much cheaper now than they did before we had the tariff on steel, so we could manufacture it in this country. The home competition has developed the steel plants and steel industry in this country to such a degree that we can make steel equal in quality and in many ways superior in finish to any that is imported. We do not ask any favor at all from anybody anywhere in the world in these matters, and the whole question is simply reduced to one of wages. There is no more to be said about it on our part so far as the manufacturers are concerned. If we had a prohibitory tariff the price of steel could not advance on account of exceedingly sharp competition among ourselves, and if we had no tariff at all we Would not care about the competition of foreigners, except as to the question of wages we pay in this country. 1 can not give the com- mittee any information on this point, because I know they are much more familiar with the labor of Europe than I am. The Chairman. Do you happen to have any figures t Mr. Metcalf. I have the figures, but they are all in the consular reports sent me, which I have read with great interest for years, and we certainly know that wages are from 30 to 50 per cent, lower than they are here. As to the quality of the work, I will just give you an illustration in regard to the iron which is used in Mr. Fisher's manufacture of anvils. They said it could not be made. We got him to try ours, and they are using our steel to-day, and they admit that it is as good as the best English steel. This is an illustration of mechanical work. We will not take a back seat for anybody in the world in regard to material used in steel. When we first began business in this country there was no suitable iron ore in the country to produce finished steel and for making iron. The finished steel was made exclusively from imported Swedish and Russian bars. To-day we are making iron in this country which is very cloa6 to the finest iron produced in the world, and it has advanced largely in regard to purity. Take the most iierfect iron imported into this country and compare the difference in quality in steel made now entirely of American materia] and the iinest imported Swedish material. To-day we are entirely independent of the foreign market. I do not know that I have anytliiug more to say. Mr. Carlisle. You say you have been engaged in the manufacture of crucible steel for about twenty-one years? Mr. Metcalp. Yes, sir. Mr. Carlisle. I understood you to say that since you began the price had fallen from 30 to 40 per cent. ? Mr, Metcalf. From 30 to 50 per cent. Mr. CjCbubiji, This la the price on the kind of steel yoa make f -10^ REVISION -OP*THE«TAltirP. Mr. Metcalf. Yes, sir. Mr. Carlisle. And you mate the kind of steel Mr. Fisher uses in the manofacture of anvils ? Mr. Metcalf. Yes, sir. Mr. Carlisle. Did you hear his statement this morning that his father and him- self (he succeeded his father) had been engaged in this business for forty-seven years, aud there had been no materia! reduction-in the price of steel he was compelled to use ? Do you concur in that statement ? Mr. Metcalf. I did not hear his statement ; but he told me, and it still remains a fact, that the steel he is getting from us to-day is just as good as the best English steel imported into this country, and for less money. Mr. Carlisle. Which can make it the cheaper of the two t Mr. Metcalf. I believe they can. Mr. Carlisle. You stated this fact, that the character of steel he uses has fallen 30 to 50 per cent. Mr. Metcalf. In the general market, yes, sir. Mr. Breckinridge. You spoke of the rate of wages there being 30 to 50 per cent, lower than here. Mr. Metcalf. It is somewhere about that average. Mr. Breckinridge. Do you speak of the daily wage ? Mr. Metcalf. I speak of the daily earnings, whether paid in daily wages or weekly. Mr. Breckinridge. Have you figured upon that so as to show how many dollars yon pay to turn out a ton of steel, and how many dollars they pay? Mr. Metcalf. I have iu our own business; so far as I have been able to get the facts of the cost at SbefBeld, and so far as I have gathered thom from consular reports, the average difference in wages among the steel workers of Sheffield and this country is 30 to 50 per cent. Mr. Breckinridge. That is not an answer to my question. My question was whether that related to the cost of the product and volume of the wage per unit of article. Mr. Metcalf. Of course, it affects the cost of production. Mr. Breckinridge. I think it does, but I am trying to get some information from you on this subject. Mr. Metcalf. It affects it entirely, except iu so far as the comparison of plant might come. If they have a superior organization and plant than ours in Sheffield, then with lower wages we would bo beaten all the time. If our plant is superior to theirs, with oven our wages we could beat. I think with the same wages they pay in Shetheld we could beat them Mr. Breckinridge. Then your statement is you pay 30 to 50 per cent, more on our wage account per ton than they do, also the same amouut per day ? Mr. Metcalf. Yes, sir. Mr. Breckinridge. That distinction is not generally observed in the statement of wages. Mr. Metcalf. I know it to be so in our own particular business. Mr. Breckinridge. Can you conveniently refer to these statements in the foreign reports or otherwise, showing the difference iu the payment per ton, aud furnish it to the committee? Mr. Metcalf. I can hunt it up. I do not know that I can give the exact authors now, as there have been several. Mr. Breckinridge. I am not asking for it now; I am simply asking if you can find it. Mr. Metcalf. Yes, sir. Mr. Breckinridge. I wish you would furnish it to the committee, and it will be incorporated in your remarks. Mr. Metcalf. Yes, sir, Mr. Breckinridge. You spoke of reducing the price of steel to the consumers of this country. Has there been any corresponding decline in the price of steel in other countries ? Mr. Metcalf. No, sir; I think not. Mr. Breckinridge. lias the price been maintained iu other countries? Mr. Metcalf. So far as I know the simi)le fact is, when the English had this mar- ket they kept np the price of liest ax steel in this market, and it was not sold in this country in any quantity for hiss than 14 or 15 cents before 1860. Just as good steel sells to-day at 7 cents or less. This is one illustratiou. If we did not have the ad- vantage of the tariff wo would be paying from 14 to 20 cents to-day. Mr. Carlisle. What is it worth in New England? Mr. Metcalf. About 7 cents; but if we had no steel-works it would cost from 15 to 20 cents. Ml. BATirB,.Will you state .what has been thei general trend of the market in ref- EEVISION OF THE TARIFF. 103 erence to iron and steel t Yon lia-ve been in tbe business twenty-one years. What has been the trend of prices f Mr. Mbtcalf. It has been down all the time, and the quality has been improving ■when the trend of prices has been downward all the time. Mr. Gear. Thirty years ago I recollect paying $16 a dozen for axes, and now you can buy these axes for |6.50 to $7, and you get a better ax. That is owing to the fact that in your marJiet you have reduced the price for steel and thereby reduced the price to the consumer. Mr. Metcau. Yes, sir ; and largely to competition among the makers ; so if there ■was a prohibitory tariff we could not give you higher prices in this country, owing to this competition. Mr. Bkbckinkidge. Do you make steel used in agricultural implements t Mr. Metcalf. Some, but not very largely. It is made in Pittsburgh and I think three, four, or five of the Eastern States; probably a dozen altogether. Mr. BRECKlNRrDGE. I have seen it stated upon the authority of some manufactur- ers of plows a year or two ago, and I think about St. Paul, that there ■was a pretty close agreement among the manufacturers of steel to move np the scale of prices. Is that true I Mr. Metcaip. As far as I know there is no association making steel that has gone into it, and has not been for years. I think it is a fallacy. The fact is to-day, al- ^ough there is a boom in England and here, the price of steel has gone do^wn in this country rather thai: up, because the competition is so sharp ve are not able to main- tain the prices. Mr. McKenna. Has there been a corresponding decline in England t Mr. Metcau. It has been going up there. Mr. Breckinridge. Do you make steel directljf from ere T Mr. Metcalp. We start ■with pig-iron. Mr. Breckinridge. And what kind of pig-iron do you use ? Bessemer ? Mr. Metcalf. We usually consume the Bessemer grade and some finer grades. We grade ores according to the quality of the material we wish to produce in the end. Mr. Breckinridge. Do you produce billet steel? Mr. Metcalf. Yes, sir. I should mention as a fact that there is a grade of steel in this country that is not protected by the tariff at all. There is a tariff on it, but it is not protected. It is not in any large bulk, so it is not so serious an amount, and that is fine drill rods and wire and fine wire steel used for making clock springs and watch springs. On this the tariff is no protection at all, and very little of that steel is made in this country now for this reason. The Chairman. Is it almost ■wholly imported f Mr. Metcalf. Yes, sir. We have made some of it in a small way. Mr. Gear. Ho^w many workmen did you have in that plant ? Mr. Metcalf. About thirty. It was especially fine work, and it is something in the nature of cold rolled work done on tin-plate, but only finer. There is a very large demand for it at every small manufacturers, such as sewing-machine work and that sort of thing. That branch of the steel trade is not protected at all. When you get a tariff on it of IJ or li cents a pound it is no protection. In main-springs of watches and hair springs, where the steel is worth |315 a pound, that mainly represents labor. Mr. Gear. Where does that come from t Mr. Metcalf. We sell the manufacturers some wire and cold-rolled steel ; but it is imported largely. We simply make it because we can still supply and sell it at cost. It is a mere matter of pride with us. The tariff does not protect this at all. WIRE RODS AND WIRE. STATEMENT OF GEORGE T. OLIVER. Mr. George T. Oliver, of Pittsburgh, manufacturer of ■wire rods and wire, next addressed the committee. He said : Mr. Chairman and gentleman of the committee : I appear before you to-day as representing the manufacturers of wire rods and wire, which also includes barbed- ■wire fences and wire nails. I come more for tbe purpose of answering any questions and giving any information I may have on this subject than for the purpose of mak- ing a studied address. Our people were heard at great length last year by the Sen- ate Finance Committee, and at the same time and on the same day the gentlemen who were interested in a certain line of our goods were heard, and you will find in the testimony taken before that committee a very full report of the arguments on 104 REVISION OP THE TARIFF. both sides, and some very valuable statistics furnished pro and con. We are vel^ well satisfied with the existing tariff arrangement on everything except npon what we assume is raw material — that is, wire rods. As matters stand now we are very fairly protected on that. There have been times in the last five years in which we practically had no protection at all. In regard to wire rods we would like to be placed exactly where the act of 1882 intended to leave us, that is, with a spe- cific duty upon all rods not smaller than No. 5 wire gauge. That is a little smaller than this lead pencil, and the specific duty is six-tenths of a cent per ponnd. On wire smaller than 5 gauge we would like to have a duty imposed upon wire of like gauge down to No. 9 at about 1 cent a ponnd. The wire-rod industry, gentlemen, Is one that I think peculiarly appeals to yon, from the fact that to a great extent, almost altogether, it is the legitimate oflfspring of recent tariff legislation. Prior to 1883 wire rods used in this country were pro- cured almost altogether in Germany. Under authority of decisions of the Treasury Department wire rods before 1883 were admitted at an ad valorem duty of 30 per cent., which made it impossible for the mills of this country to manufacture against such a duty as that; and what little mcnufacturing there had been was practically discontinued, and the tariff act of 1883 found us entirely dependent upon a market 3,000 miles away from our raw material, and this material is very bulky, considering it is made of steel and hard to handle, and subjected us to almost endless inconve- nience in the matter of importations. In the mean time the wire business, which was practically a small thing, received an impetus by the invention of the barbed fencing ; so perhaps 50,000 tons would cover the manufacture of wire up to about 1876. That amount has gradually arisen with the amount of the barbed fence busi- ness and the more recent growth of wire nails, until I am not mistaken in saying that during the year 1890 we will manufacture in this country not less than 500,000 tons of wire. For all this wire, which amounted in 1863 to about 150,000 tons, we were dependent upon Germany for our supplies. When the tariff commission made its report in 1883 it recommended a duty of a cent a pound upon wire rods, and that was a small duty in comparison with other articles in the iron and steel schedule, and when the matter came before the House some Representatives, who thought they were doing their duty to their constituents by getting them cheap fencing, insisted upon reducing it to six-tenths, about 3 per cent. less. Mr. Carlisle. This was in the Senate. Mr. Oliver. I beg your pardon ; I have the original motion of the House. Mr. Carlisle. The House bill was never passed at all. Mr. Oliver. The original motion for a reduction came from the House. In the conleience committee the House occupied that position, and insisted upon six-tenths, while the Senate was willing to grant 1 cent a pound. The Chairman. We passed that in the House. Mr. Carlisle. We never passed that bill at all. The Chairman. That was simply an expression on the part of the House. Mr. Oliver. We got the price at six-tenths of a cent, and we felt very blue in conse- quence, as we supposed increased importations would have to come with an increase 'of business. But some manufacturers (first the Cleveland Rolling Mill Company and afterward the Hart Steel Company, of Pittsburgh, and some other concerns) figured the thing down closely, and rather than submit to the exactions of the importers and to depend npon Germany for our material we decided we would buy all our materials here, and we did it. The result was that where the price of No. 5 wire rods in 1883 was, as I recollect it, about $54 a ton, when we started our mill in the winter of 1884, about February, it was about the same. When we were ready to begin operat- ing the mill in the summer of that year it had fallen to |45 very suddenly, because they were beginning to feel the competition of the home mills, and as the mills in- creased the price fell, until in the summer of 1886, with five or six mills running and supplying nearly half the wire used in this country, they brought the price down to |35 a ton. That lasted for nearly a year, until the German manufacturers finally began a syn- dicate for their own protection, and advanced the price to $40 a ton. In ttie mean- time, owing to the importers succeeding in getting the customs duties admitting rods smaller than No. 5 at a duty of 45 per cent, ad valorem, it is a grave question as to whether it was a good law or not. I do not believe it was ; but, however, they im- ported it at 45 per cent, ad valorem, and No. 6 rods were for a great part of the time at $1, $2, and $3 a ton below the six-tenths of a cent a pound which was imposed by the act of 1883 upon No. 5 rods; so the rods imported during most of the time were No. 6 rods, and these were what we had to compete against. It has been all uphill work, gentlemen, for us to build up this business, but we have done it. We do not want any other conditions except that we want you to give us the same duty you gave in 1883, when we had no mills. I promised the Senate committee in behalf of the manufacturers that if this be done at the time we appeared before the Senate committee we would supply about two-thirds of the wire in this country and 6er> REVISION Of THE TARlft'. 105 matiy would supply the other third. At that time, about a year ago, I promised the Senate committee that there would not only be no advance in the price of wire rods, except, perhaps, an advance in the price of raw material, but that mills enough would be built to supply the whole country. That promise has been fulfilled to-day. We have to-day in operation, or in course of construction, enough mills running to supply 519,000 tons of wire rods. . We estimate the basis upon previous years. The demand for barbed fencing the next year will be about 250,000 tons. For wire nails it will be about 150,000 tons, and we think for other kinds of wire it will be something less than 100,000, making half a million in all. It is an enormous business. It has been the growth of a very few years. In the matter of wire nails alone they have grown since 1B83. In 1883 wire nails were imported by two or three manufact- urers in the country and sold at a quarter a pound. To-day the wire nail has al- most superseded cut nails. We supplied about 2,000,000 kegs to the country this year, and the prospects for next year are that it will not be less than 3,000,000 kegs. Simply at the request of one man a duty of 4 cents a pound was levied upon wire nails by the act of 1883. Mr. Gbak. They are supplanting cut nails entirely f Mr. Olivbk. Entirely; and it is all owing to that duty of 4 cents a pound. The man never anticipated it — did not expect it. He wanted to manufacture wire nails for the consumers here which were imported from Germany, but he found when he got to manufacturing them in quantity that he could manufacture them as cheaply as cut nails. Mr, Baynb. How are they selling now? Mr. Oliver. Cheaper than cut nails, the same nails to the pound. I do not say this because I am interested in the wire-nail business, but looking at it I can not see any way other than in five years the wire nail will run the cut nail out of the business. Mr. Gear. What is the price of the wire nail now ? Mr. Olivek. To-day the lowest price is $2.80. The lowest sale was $2.10 last summer. Mr. Carlisle. Was that the lowest price? Mr. Oliver. That was the lowest price. That was $2.10, and the present price is $2.80. Mr. Gbas. At the time the selling price of the wire nails was $2.10 the selling price of the cut nails was $1.80. Mr. Oliver. Something like that. One dollar and eighty cents was about the lowest price at Wheeling, I believe. Mr. Batne. How is barbed wire as to price ? Mr. Oliver. When we went into the barbed-wire business first, in 1881, the farmers of the country were getting the cheapest fences they ever had or expect to have for9 cents a pound for barbed-wire fence. I sold this last summer at $2.55, de- livered in Chicago. Mr. Burrows. Two dollars and fifty-five cents per 100 pounds? Mr. Oliver. Yes, sir ; $2.55 per ICO pounds. I do not claim, gentlemen, that this reduction has been altogether the result of protection. It has been brought about by competition; but I do say if you had not given us in the act of 1883 duty enough to enable us to manufacture wire rods in this country we would have been paying to-day $50 and $60 a ton to Germany for rods, because the volume would have been so great we could not possibly handle it, and we could not supply this country with the articles of barbed wire and wire nails. Mr. Gear. Do you sell rods ? Mr. Oliver. We do not, but their manufactures. Mr. Gear. What is their market value ? Mr. Oliver. It is about $50 a ton. Mr. Gear. What is the price of steel billets ? Mr. Oliver. Thirty-seven dollars in Pittsburgh. Rods are a little high, as they have gone up lately, but there are three very large mills just about to start up. Steel billets have gone up at least $10 a ton, and billets we bought last May are $27 a ton at Pittsburgh ; we could not buy for $37 a ton now. That means an equivalent of $12 or $13 in wire rods, taking the waste into account. Mr. Gear. You do not make billets ? Mr. Oliver We buy our billets. I think, gentlemen, I can safely say that any reduction in the duty on wire rods will cripple and hamper the mills now in opera- tion, because a falling off in their manufacture would turn some not so well fixed to other uses, and it would inevitably advance the pricefor barbed- wire fence and nails rather than reduce it. We are to-day giving the country the cheapest nails and the cheapest fencing they ever have known, and I think it will be cheaper in tbe future. It is so shaped that I made a statement to the Senate committee that on the basis on which I figure, allowing a jobber's profit and a dealer's profit, it would be something like 3 cents a pound to the consumer. It enables a man to fence 160 acres of land with a fence four strands high for something like $94. I have the statement here. 106 EEVISION OP THE TAEIPP. Mr. Carlisle. This is ontside fencing. Mr. Oliver. This ia for around the farm. Mr. Borrows. Your goods are delivered at Chicago ! Mr. Olivbk. The wire nails are sold at the factory, and the fence is sold delivera- ble at Chicago. Mr. Breckinridgi. What countries are competitors in your lines of goods J Mr. Olivkr. We have no competitors now. Mr. Breckinridge. Do any other countries manufacture them T Mr. Oliver. No other country manufactures harbed wire. There is one license in England and one in Germany, but they are barred from selling in this country. Mr. Breckinridge. England is also manufacturing wire rodsf Mr. Oliver. But England can not manufacture them as cheaply as Germany, and we are not afraid of England. Mr. Brickinridqe. The point I am referring to more particularly is not their ability to compete, but that they do manufacture. Now it is manufactured there f Mr. Oliver. Yes, sir. Mr. Breckinridge. And in Germany also t Mr. Oliver. Yes, sir. Mr. Breckinridge. In France T Mr. Oliver. France is not manufacturing any, but Belgium is. Mr. Breckinridge. Is this line of manufacture engaged in in any other countries of which you know t Mr. Oliver. No, sir; Sweden manufactures some, but generally Swedish manufact- ure is higher. Mr. Breckinridge. The barbed fence is still controlled, I believe, by patents T Mr. Oliver. Yes, sir. Mr. Breckinridge. How long have those patents to run? Mr. Oliver. They have about two years to run. That is, the main patents expire November, 1891. Mr. Breckinridge. At the end of that time the manufacturing of what we ordi- narily understand as barbed wire fence would be an open industry f Mr. Oliver. It ia practically open now, because almost anyljody who wants a license can get it as tlie royalty is only f 1 a ton, which is 5 cents a hundred, and it does not trouble the manufacturer at all. In fact in Governor Gear's state the patent has been declared invalid. We continue, however, to pay a royalty. It is one of those things which does not hurt us, and which our customers appreciate, so we pay it. Another reason why we want to manufacture our supply here and buy what we use here is the fact that it enables men with smaller capital to engage in the business. Where we have to depend upon the basis of supply across the sea, it is necessary to have much larger capital because you have to buy your supplies so far in advauce of your wants in order to secure a constant supply, and yon have to have an enormous amount of money locked up in it, and that is why men have been able to build works in this country and engage in the business of manufacturing wire since the rod mills have started up in this country. Mr. Bayne. Would that apply to other industries? Mr. Oliver. That would apply to steel-billots, to pig-iron and everything. Mr. Carlisle. I did not understand whether you were asking for a higher duty on wire or not ? Mr. Oliver. No, sir. Mr. Carlisle. You are asking that no reduction be made on wire rods? Mr. Oliver. We do not ask a reduction on wire rods. Wire rod is lower to-day in proportion than any other article of its class. Mr. Carlisle. What size wire rod do you roll f Mr. Oliver. No. 5. Mr. Carlisle. From what size rod do you make wire fence? Mr. Oliver. From No. 5. Perhaps some of you gentlemen of the committee do not understand what a rod is. The wire rod yon naturally suppose is a straight rod of iron. It originally was, but with the improvement in the manufacture it comes first in the form of a billet. A billet is a large square, and that is rolled down to a coil about 1,000 feet long, a little smaller than this lead pencil which I hold in my hand. This is done in about 18 passes. Mr. Gear. And in what rolls ? Mr. Oliver. About 125. We find more economy in rolling large coils. That is rolled, heated, and taken to the wire-mill and there treated with acids, etc., and then it is drawn cold to the diiferout size of wire. So a wire rod is really a piece of wire. Mr. Carlisle. It is drawn to the size needed for actual use ? Mr. Oliver. Yes, sir. What we wish to say is that the Senate bill of last session, with the exception of one or two amendments which some people engaged in the fine wire ■business would like to have made, embodies what we think we are entitled to. Th» REVISION OF THE TARIFF. 107 Finance Committee of the Senate went over the matter very oarefnlly, and they thoughtthey dealt with us fairly. If you in your wisdom see ft to do something on the same line for us we will he very well satisfied. Mr. Gear. Do you use the same rod for wire of 9, 10, and higher gauges T Mr. Oliver. The making of the wire of the finer sort is done by annealing after a certain number of drawings. The wire becomes so hard we can not draw it further without annealing. We put it in the annealing pit and then we draw it down. We draw it as far as Nos. 33 and 34, where the wire is as fine as a hair. Mr. McMiLLiK. I believe you said your competition came from Germany rather than England ? Mr. Oliver. Yes, sir ; what competition we did have. ARGUMENT OP THE NEW HAVEN -WTIRE COMPANY. New Haven, Conn., August 6, 1888. To the Committee on Finance, United States Senate : On behalf of the New Haven Wire Company, which is compelled to buy its raw material in the shape of wire rods either of American or foreign mills, and of about twenty other wire mills similarly situated, I respectfully ask that the duty on fence and rivet wire rods of either iron or steel, when valued at 1| cents per pound or less, be fixed at four-tenths cent per pound. The larger wire mills roll their own rods, but prefer to sell the product of their rod trains in the shape rather of finished wire than of rods; so that those wire mills which have no rod trains are forced to pay high prices for their American rods or use the foreign. In either case the price is deter- mined by the cost of the foreign rods here, so that a reduction in duty would inure to the benefit of all these wire mills, whether they use foreign or domestic material. These mills employ more labor than all the rod trains in the country, and have a ca- pacity to produce more than half of the wire which the country consumes. Under the tariff of 1883 their business has continually suffered at the hands of the mills rolling their own rods, and they now need protection not against foreign competition, but against the high charges of the American rod mills. By the act of 1883 the duty on steel rods was fixed at six-tenths cent per pound on No. 5 and larger sizes. Although there had been some rods smaller than No. .5 im- ported, yet the bulk of the rods were No. 5 and larger, and no specific provision was made for any smaller size. Such sizes, therefore, came in under the " omnibus clause," as "manufactures of steel not otherwise provided for," at 4.5 per cent, ad valorem. Prior to the act of 1883 all steel rods had come in under the omnibus clause at 30 per cent. The specific duty of six-tenths cent per pound was fixed by Congress after a carefal hearing of all the parties in interest, and was then the equivalent of 35 per cent. Soon after the passage of the act, however, the foreign values of Bessemer material fell so that the ad valorem equivalent of six-tenths has never been less than 45 per cent., but has at times equaled 60 per cent., and is now about 55 per cent. Coinci- dent with this fall in values came an improvement in the processes of rolling rods abroad, by which a No. 6 rod could be furnished at about the same cost as a No.'5, and the bulk of the importations for the past four years have been of No. 6. These have, as stated above, come in at 45 per cent., which is at the present time about one-half cent per pound. The request of Mr. George T. Oliver, of Pittsburgh, speaking on behalf of his com- pany and other-American rod-makers, that the duty on all sizes of rods should be fixed at six-tenths cent per pound is therefore in substance a request that the present rates of duty should be advanced on the bulk of the importations from 45 per cent, to 55 per cent., an increase of about nearly 25 per cent. The consumers of wire rods, on the other hand, maintain that not only is there no propriety of making any such advance, or, indeed, any advance, but that the present rate of duty might be reduced without in any way crippling the American rod mills. The present cost of American billets in Pittsburgh is $28 to $28..50 per tou ; of wire rods $41 to $41.50. It is not disputed that a modern Garrett train employing 25 or 30 men has turned out 75 tons of rods in 11 hours, and at a cost, making all proper allowances, of not exceeding $8 per ton. Assuming that its annual production was only half that (or 75 tons daily when running double time), the margin of profit w,onld exceed $100,000 per annum ; so that the train would nearly pay for itself dur- ing the first year. This clear margin of $5 per ton is due to the present tariff; for while the American mills now sell the greatc^r part of the rods used in the country, they hold the price just below the cost of foreign rods with duty and inland freight added, and the cost to the consumer is thus dependent closely on the duty, As the 108 ftteVtSION of THE tAttrPP. labor cost of each ton of rods thus rolled is less than $3, the need of any incfease of the duty in order to protect the laborer is not clearly seen. It is not necessary, however, to base any argnment on estimates of the cost of rolling rods in this country. While all such estimates may be disputed, it cannot be denied that the great increase in the number and capacity of rod mills in this country since the enactment of the tariff of 1883 would not have taken place if there was not a handsome margin in the business, and a margin furthermore that was large enongh to stand some reduction in the tariff rate. In 1883 steel rods were rolled at not more than five or six mills, and the total capacity did not greatly ex- ceed 50,000 tons annually. There are now nine rod miUs in operation, and another building, with an aggregate capacity of about 250,000 tons per annum. The proportion of their product to the imports has steadily increased, so that it to- day is more than half of the entire consumption of the conntry. (The importations of wire rods during the first six months of 1887 were 69,432 tons; of 1888, 38,916 tons.) Surely an industry that has made such rapid strides under the present tariff does not need any further legislative help, nor is it in a position where reasonable reduction of the duty will inflict irreparable disaster on i t. If the present duty on wire rods were halved, while the duty on billets is unchanged the Pittsburgh rod mills could still sell their rods at a profit and keep foreign rods out of that market ; while at the same time the sea-board wire mills, which are pre- vented by inland freights from using American rods and are compelled to pay the present duty on their foreign rods, would have some hope of life. It does not seem unreasonable, therefore, to ask that a beginning in the reduction of duty should be made, and four-tenths cent per pound is certainly an ample protection for the Amer- ican rod mill. The fluctuations in the price of rods have resulted in such variations of the ad valorem rate of any specific duty that such a method of fixing the tariff should not be longer followed. No one will pretend to say that Congress, when it fixed the dnty in 1883 at the specific equivalent of 35 per cent., contemplated that within four years that specific duty would by the mere fall in prices ri«e to 60 per cent. The market values of these rods are well known both abroad and here. There is no chance for any evasion of the tariff, as the records of the custom-houses show ; and it is sub- mitted, therefore, that the will of Congress will be better observed throughout aU future fluctuations by making the duty ad valorem than by adhering to a specific duty. If the latter method is, however, preferred, it is suggested that ample protec- tion to the American rod mills and some share of the necessary reduction demanded by the condition of the American wire mills will be secured by making the duty fonr- tenths cent per pound on all sizes of wire rods. This is a higher rate ad valorem than was contemplated by Congress in fixing the act of 1883, and leaves the American rod mills with about one-half of their present margin of profit. All of which is respectfully submitted. The New Haven Wire Company, By Samuel A. Galpik, Beceiver. SLABS AND BILLETS FOR NAILS. STATEMENT OP MR. A. W. CAMPBELL. Mr. A. W. Campbell, of Wheeling, W. Va., next addressed the committee. He said : Mr. Chairman and gentlemen of the committee, I have no set line of remarks to make before the committee on the especial business that interests our people at Wheel- ing. Several members of this committee who were members of the previous commit- tee of ways and means will remember that the Ohio Valley Steel Association sent representatives here two years ago to ask that in the formulating of a new tariff bill what is known as soft steel should be classed as hard steel. They ask this for tie reason there was no cause for the difference in the price. They pointed you to the fact in English quotations of steel slabs and billets ; they were quoted as low or lower than steel rails. In other words, it costs as much to make the kind of steel weengags in manufacturing as steel rails, and therefore whatever measure of protection which is given by Congress to the one steel should be given to the other. While steel rails have $17 a ton protection, the makers of soft steel have 45 per cent., which at that time was equivalent to about $8, and by reason of the undervaluation process not more than $7. You will observe the year preceding as a result of that there was an enormous importation of soft steel into this country. Now, we believe that Titl BEVISION OP THE TARIFF. 109 onr existing plants we could make all the soft steel required, whioh is now imported from Germauy and other parts of Europe. Wheeling has the largest cut nails manufactory in the country, where the bulk of the cut nails used are produced. They are sold remarkably low, as was indicated to you by Mr. Oliver. They are sold much less than wire nai^s ; and I wish to correct a statement of Mr. Oliver's, where he said that the wire nail was a relatively cheaper nail than the cut nail. That was because for the last year the gauge of the cut uail was changed. In other words we give as many nails to the pound now as the wire nail people, and we sell them at 50 cents to 75 cents cheaper. Now, Mr. Chairman, making as we do one of the cheapest productions in the world, of course we should have the advantages of raw material so far as proper legislation of Congress can give it to us. We are always obliged to follow the steel-rail makers of this country. They set the price and the time at which contracts shall be made and we follow them. TA hen we go to the Lake Superior mine owners and buy ores, we are told that the price is so and so, and that if we do not want it it will be taken by the rail-makers. They fix the price for us and we have to bear it because of the excessive competition which exists to-day in our production. The fact is, we have sold our product for the last three years at less than cost. I do not believe there is to-day a nail mill within my knowledge that has made any amount of money worth speaking of in that time, Mr McKknna. Is that due to competition ? Mr. Campbell. That is due to competition of the nail men in one form or another; the competition \\'ith the wire nail and the competition with our own cut naU estab- lishments. Mr. McKenna. You say you reduce the gauge of the nail ; that has not reduced the excellence of it f Mr. Campbell. A test was made by the United States Government, at Watervliet Arsenal, and they decided that the cut nail had a greater holding power than the wire nail, and that it was a better nail so far as the holding power was concerned. Mr. Carlisle. Was a test made between nails of the same grade f Mr. Campbell. No, sir ; I can not say it was, but I believe that was made before the gauge was changed. Butstill we have tested it for ourselves since. We take the same gauge of wire nails and cut nails and we know as a matter of fact and experi- ence and testing that the holding power of the cut nail is greater than the wire nail. These are the nails used in this country, although the wire nail has made very great inroads on the cut nail. There is nothing cheaper than nails. They are sold very cheaply notwithstanding the different prices of slabs and billets. Slabs are the arti- cle out of which these nails are made. The price of cut nails to-day is very weak and very low in this country , so much so that, as I said, very few nail-makers within my knowledge have realized the cost of production in the last three or four years. The Chairman. What do you say about the Senate provision f Mr. Campbell. Providing five-tenths of a cent a pound costing $11.20. That would he entirely proper if you made it specific. I do not see any reason why we should not have the same measure of protection that is given to steel, that costs no more to man- ufacture. Mr. Bayne. That is a specific dutyt Mr. Campbell. That would not be a specific duty. Mr. Baynb. I thought you said the Senate bill provided specifically five-tenths ol a cent a pound. Mr. Campbell. It was a specific duty of five-tenths. In the last session of Con- gress, when this committee was hearing this case as individuals (there were no formal hearings), several others and myself were here presenting to the individual members of this committee the facts in this case, and in the majority report made by that com- mittee we were given the same average protection as was given to steel rails, which was $11. Mr. Carlisle. What is the difference between a slab and a billet t Mr. Campbell. A slab is a flat piece of steel, and a billet is a certain square length. It is different. Mr. Carlisle. The difference is in shape only t Mr. Campbell. It is different in shape somewhat from the steel. We use our slab for making nails. We make our own pig-iron, and out of the pig-iron we make our slabs. Mr. Bayne. If wire nails should come in and prevent your making the cut nails, you could convert your establishment into a wire-nail factory. Mr. Campbell. No, sir; not except by putting in an entire outfit. If we com- mence a nail plant in this way, it would have to be an entire change of business. Mr. Gear. Are there establishments where all this machinery is made in Germany t Mr. Campbell. I am not familiar with that, but there are German machines used in this country. There are various kinds of machines used. The Chairman. But it is mostly American now. 110 EEVISION OF THE TAELFP. Mr. Campbell. The majority report of the last Ways and Means Committee con ceded the justice of onr plea. Mr. Carlisle. They conceded that whatever rate was granted to steel-makers should be accorded to you ? Mr. Campbell. Yes/sir; that is what we asked, and there was no division of senti- ment among the members of that committee. The majority report of that committee was in favor of it. There were a great many questions asked by the committee, I was interrogated by Mr. Breckinridge and others here, and there was no division of opinion at all as to the changes of this equalization and they thought we were entitled to have it. The Chairman. That is what you want nowf Mr. Campbell. That is what we ask and then we will be entirely satisfied. Mr. McKenna. You say that will be satisfactory to you ? Mr. Campbell. Yes, sir ; we are not asking for any change in it unless the duty on rails is changed. Mr. McKenna. You refer only to the slabs t Mr. Campbell. Only on the slabs. All we ask is an equalization on that. Mr. Cahlislb. Do you sell slabs and billets to other people or consume them your- self? Mr. Campbell. We consume our own slabs. Mr. Carlisle. Do you make them for sale f Mr. Campbell. No, sir. I represent mills that own steel works and that make their own slabs, and that concern is mostly kept pushed in order to furnish slabs. Mr. Cablisle. Then you desire to have the duty raised on slabs and billets, because if it is not done your competitors in the manufacture of nails can procure their mate- rial from abroad cheaper than you can make it yourself? Mr. Campbell. We think not only that, but as I stated before, we feel that the price of ores is re^iulated by other people than ourselves. Mr. Carlisle. This does not touch ores. Mr. Campbell, The question of discriminating between the mines touches ores. Mr. Baynb. How? Mr. Campbell. We are not strong enough financially. Mr. Bayne. Do steel-rail makers convert ore directly into rails without going through any other form ? Mr. Campbell. It goes through the process of steel, and takes the rail shape as the finished shape ; but while that is a rail it costs no more t6 make than a slab or billet. Mr. Bayne. Does it go through the form first of a slab or billet before it is converted into a rail f Mr. Campbell. It is converted from the blooms into a rail. The bloom is a billet, hut in one sense the billet is a move further on. Mr. Bayne. The bloom does not advance to the stage a billet does ? Mr. Campbell. No, sir. Mr. Gear, If you had a specific duty instead of an ad valorem duty, what would be the etfect of increasing the tariflf ? Mr. Campbell. We were given |ill by the majority report of the last Ways and Means Committee. Mr. Gear. The result will be to increase the tariff $3 ? Mr. Campbell. Yes, sir, as the price is steady. Mr. Carlisle. Not so much now? Mr. Campbell. The price of slabs and billets in March, 1888, was 317 shillings, as against 318 shillings for rails. Mr. Breckinridge. What is the weight and shape of a bloom ? Mr. Campbell. The bloom is a round piece of steel in a formative state ready to be rolled down into a billet or any other shape. Mr. Breckinridge. About how much would a bloom weigh ? Mr. Campbell. I am not preparing it, but they have different sizes of blooms as well as billets. Mr. Breckinridge. Is it in what is called pig-iron ? Mr. Campbell. No, sir. The Chairman. And it is of different length and size and weight t Mr. Campbell. Yes, sir. Mr. Breckinridge. Wliat is the diameter of a bloom ordinarily? Mr. Campbell. I really could not tell you, but the bloom is made 8 inches in diam- eter, and many of them 12 or 10 inches in length. Mr. Breckinridge. Varying in that way? Mr. Campbell. Yes, sir. Mr. Gear. They make the blooms for these rails 30 feet long. Mr. Breckinridge. What is about the weight and sh.ape of ahillet? Mr. Campbell. At our works we do not make many billets ; we make mostly slabs. A billet runs anywhere from two feet to two feet and a half, and as much in length) and it runi from 4 to 5 inches in diameter. REVISION OP THE TAEIPP. Ill Mr. BRECKrNRlDGB. It is something like a bloom, only on a smaller scalet Mr. Campbeli.. The bloom is round, and they are rolled down. Mr. Breckinridgk. Billets are made from blooms ? Mr. Campbell. Yes, sir ; we roll down the ingot to the billets and slabs. Mr. Breckinrldge. Describe an ingot; what is the size and shape of itt Mr. Campbell. The ingot is the material which first comes from the converter, when it is poured into the flask. It is taken out and put into the reducing-rolls and rolled down to a slab or billet. Mr. Breckinridge. Do you use the pig-iron T Mr. Campbell. We put the pig-iron into the converter and turn the converter into the flasks which gives the ingot. Mr. Carlisle. Do you make pig-iron at all in the ordinary form of pig-iron in your business t Mr. Campbell. Yes, sir; we buy the ore to make the pig-iron. Mr. Carlisle. You make the slab and billet from the pig-iron? Mr. Campbell. Yes, sir. Mr. La Foixettb moved that the committee take a recess until half-past 1, which was agreed to and the committee accordingly took a recess. STRUCTURAL SHAPES OF IRON OR STEEL. STATEMENT OF MR. F. J. BLADE. Mr. F. J. Slade, of Trenton, N. J., next addressed the committee. He said : Mr. Chairman and gentlemen of the committee, I wish to speak to you not of any proposed change in the duty on the material in which I am interested other than that contained in the Senate substitute, but to call attention to a method of evasion of the present duty which can be easily corrected. I speak with reference to the clause in paragraph 130 of this bill : " Beams, girders, joists, angles, car-truck chan- nels, TT) columns and posts, or parts or sections of columns and posts, deck and bulb beams, and building forms, together with all structural ihapes of iron or steel, 1 cent per pound." The Chairman. What page are you reading from t Mr. Slade. Page 114, section 130. Formerly these shapes were not specially designated in the tariff act. They came in under the same rate of duty as is now charged on iron not otherwise provided for, and many years ago, perhaps ten years ago, they were especially mentioned and a duty provided and collected until quite recently, when the question suggested itself to those interested in the importation of them that they would do a little work on them and then bring them in as manu- factures of iron not otherwise specified. Of course the committee are well aware that where iron beams are used, such as a beam which carries a floor and used in the construction of a building, that a few holes are required to bolt the beams in place. It is not a manufacture to any extent, but it is simply made ready for use. The collector of customs in a lot of beams imported at Boston collected, very prop- erly, the duty provided by the act. The importer brought the case to the United States court, and, to the surprise of everybody familiar with the use of these beams, the decision of the collector was reversed and the articles were admitted as manu- factures of iron at 45 per cent. The case has been taken to the Supreme Court, but it may be years before it is reached. Now, it seems to me it is the manifest intention of this section here to protect those articles. They are clearly enough defined, and the mere fact that a man can punch a hole in a thing and bring it in at 45 per cent, and then saw the hole »S if he does not want it, would amount to a little more than five-eighths of a cent a pound, while the duty provided by this bill is 1 cent a pound. It is a mere method of evading the duty, and what I have to suggest is simply this : At the end of this paragraph to insert some such words as these: AJter the word "steel," line 451, insert "whether any of the foregoing are plain, or have holes or other work thereon." Evidently the intention of imposing a duty was on the belief that the manufact- ured article would be more valuable than the material unmanufactured, therefore the ad valorem duty would be high enough on such a manufactured article. But in this case the article is not increased in value, not more than one-tenth of a cent u pound ; therefore, by rating it as a manufactured article, the duty is virtually set aside. You might just as well strike out the other section, because there will never be any such thing imported. They would simply come in as manufactures. 'That ia all I have to suggest. Mr. Carlisle. Forty-five jier cent, ad valorem is the rate of duty imposed upon all manufactured steel not otherwise provided for. Do you not have a high enough dnty upon this article of structural iron f 112 REVISION OF THE TARIFF. Mr. Slade. No, sir. And that ia tlie reason that in the specific dnty provided on the manufacturing I spoke of it virtually only applies to beams. It is no rate for the other at all. Mr. Carlisle. What are these made oft Mr. Slade. Rolled iron. Mr. Carlisle. What remains to be done in this article which you say is now being brought in under that general clause ? Mr. Slade. The beams are fitted with holes so as to be bolted together. Then it is completed by bolting. Mr. Carlisle. Now, this article which you say was brought to Boston at 45 per cent, ad valorem, what was its condition? Mr. Slade. It had holes punched in it, and where one beam fitted into another the end of the beam was cut and ready to be joined so it would be supported. Mr. Carlisle. What remained to be done on that article before it was a finished production f Mr. Slade. Nothing. Mr. Carlisle. I mean on these imported articles that came into the United States! Mr. Slade. Nothing ; it is ready to go into the building. Mr. Carlisle. Upon what ground would it be covered by the 45 per cent. ? Mr. Slade. I do not know. It is held not to be a beam, as specifically described here, or flooring, but it was a beam just as well as any other ; it had not changed a particle. Mr. Carlisle. What is the use for which that particular article was to be applied t Mr. Slade . To put into a Government building at Boston — I do not recollect whether it was the custom-house or post-ofBce — for floor purposes. Mr. Flower. Do you manufacture structural iron ? Mr. Slade. Yes, sir. Mr. Flower. I noticed in New York that the Potter building imported their iron from Belgium, and I think it cost about $12,000 or 113,000 dollars alone to import that structural iron. Mr. Slade. Yes, sir. Mr. Flower. Do you not thinkyour combination, with all the other structural iron- makers in the country, tends to increase the imports? Mr. Slade. The imports are not much. Mr. Flower. But the price of structural iron is very high. Mr. Slade. No, sir. Mr. Flower. How much ? Mr. Slade. The present price is three-tenths of a cent per pound. Mr. Flower. How much does It cost more than the steel rail before manufactured f Mr. Slade. I can illustrate that best by just calling attention to the diflfereuce in the two. The steel rail is the cheapest article of manufacture there is, simply for the reasou that it is manufactured in enormous quantities. The article is precisely the same. The difference is there are thousands of tons of rails manufactured at one time, and when the rolls are put in they can stay for a week, or at any rate for a long time, and they roll a large quantity. The production of a steel-rail mill would not be much at 200,000 tons a year. Our mill, which is about the largest in the United States, has never produced 100,000 tons a year. I will show you the difference. In the steel-rail business every thing is different ; they manufacture only that one article, and so do that most economically. Mr. Flower. There are no steel rails imported but what is the difference in the set of rolls? That is all you have to have in your structural irou. Mr. Slade. The steel rail is a bar of reasonable size. We have to use the largest machinery and the most expensive machinery that is required in iron manufacture. I do not think there is any exception to that. We have to run at times a beam of 24 inches. That has to go through the rolls with enormous pressure, necessary to roll it out, and the pressure is enormously great as compared with the steel rail. There is uo comparison between the two. But that is not the point alone. Then the orders we get for these beams are little trifles — merely trifles; the order may be for 1 ton, or even less than 1 ton. An order for 1,000 tons is .in extremely rare order. We can not roll it in the same way we roll rails. A thousand tons of rails can be put into the mill and rolled out without a change. But an order for a thonsaud tons of beams to go in a building is different. They will take them only a little at a time, and probably it ■« ill take six months to get rid of the one order. Not only that, but there are so many different sizes. It is a retail business, done with the most expensive machinery. Mr. Flower. But take a building like the World building, or the Potter build- ing, or the Times building, those would not be retail orders ? Mr. Slade. The trouble is, in a building like this you are likely to have a number of different sizes and different lengths, and when it comes to rolling different sizes you llivy* to change the rolls, and they come to you with a long list of the different si^ej EEVISION OP THE TARIFF. 113 and lengths required. We think an order for a large building is no better than a small one. Mr. Gear. If you have different lengths and widths, you have to change the rolls every time ? Mr. Slade. Yes, sir. The only way is to combine one man's order with another's, and make them all at the same time. Mr. Gear. You can roll but one width and length of iron with one set of rolls t Mr. Sladb. No, sir ; we can not. Mr. Bayne. You have to change the rolls t Mr. Slade. Yes, sir. Mr. Flower. I know that this summer I found it pretty hard to get the stuff when I wanted it, as you do not keep stock on band. Mr. Slade. I suppose we carry one or two thousand tons, always more than one thousand ; yet you can not find what you want and you have to keep cutting. Mr. Flower. Do you meaa to say they cost more to manufacture ? Mr. Slade. I mean to say more than double. Mr. Flower. Does it cost treble f Mr. Slade. No Mr. Flower. If it costs treble you have got a pretty good profit on it. Mr. Slade. Certainly we get fair prices, but not high prices. The steel-rail men think they should have a measure of protection of $5 a ton on rails. We would not ask you for anything better. Mr. (iBAR. \Vhat are the size of your rolls? Mr. Slade. Our largest trains are 26 inches in diameter. We can roll to-day the largest size on that train. Mr. Gear. How long does it take to change a train of rolls T Mr. Slade. About a day. Mr. Carlisle. What do you say the present prices are ? Mr. Slade. The present price of beams — angles are sold at less — is 3^ cents a pound. When I first engaged in the business twenty years ago it was more than double that. We have reduced the price very much. Mr. Breckinridge. You mean in the net ? Mr. Slade. Yes. Mr. Flower. This combination of mills now enables you to keep one price all over the country? Mr. Slade. All the mills are not in it. The Chairman. What do you mean by " combination," Mr. Flower? Mr. Flower. It has been charged that a combination kept the price up for that structural iron last year. I will not say this year, because I know these beams went down some parts as low as 2f . Mr. Slade. Two and eight-tenths Before that it was 3.3 in New York. And that was reduced to 2.8. Mr. Flower. I supposed from what I heard that there was a combination last year by which they agreed to charge a certain price ? Mr. Slade. There is not. Mr. Flower. The reason I ask this question is I want to know if there is any extra profit on this compared with the steel-rail business ? Mr. Slade. It is a mere bagatelle in comparison with it. We do not feel the least hesitancy in doing business. I have had more to do with that than any other man. There is no reason why anybody should not go into a legitimate manufacture and make a profit with his business. The whole question is whether the profit we get is exorbitant or not. I have made up the results of our business for twenty years, and it has not exceeded on an average 8 per cent, for that time. We are not paid 8 per cent, this year. These are the exorbitant profits. Mr. Flower. How many mills co-operate in this T Mr. Slade. About twelve. Mr. Flower. Any west of Chicago? Mr. Slade. Not west of Chicago. There is one in Chicago. There are about twelve millgnow. Originally there were fou'r. There is no dissatisfaction with the combination. It is simply intended to secure a fair jjrofit, which we think we ought to have. Let me just give the reason why a combination in a certain thing is justifiable. People say the natural competition would fix the price at a fair profit. It would do nothing of the kind, I can assure you. I can show you why it would not. That is nothing but what people say. It is ridiculous. When a man who is engaged in the manu- facture of an article has put his money into that plant be is subject to a large amount of expense. There are repairs to the building, taxes, salaries, to enable him to keep up the organization. Now, we will compete for work whether we get any part of our money or not, and that is the best we can do. In other words, suppose an article costs 2 cents a pound simply for coal and iron ; now, of course we will not sell below that 2 cents, because we wowJd simply be giving our ^la'te^if^} away; we bad better 485 8 114 REVISION OF THE TAEIFF. keep it. We are entitled to have our expenses paid, but at any price between two and two and a half cents, we will compete for work, and my experience is we compete more eagerly for it under those circumstances than any other time, simply because we would say we are going to try to reduce the loss of last year. Therefore it it not a true but a misdirected competition. This thing is going on all through the country. I know perfectly well that it has been advantageous to the trade. They do not make the slightest complaint. Mr. Flower. Do you advise coal men to go into a combination T Mr. Slade. I advise them to look after their own interests. The Chairman. How many firms are in this combination f Mr. Sladb. Twelve. The Chairman. Can you give the names of them ? Mr. Sladb. Yes, sir. The Chairman. "What are they t Mr. Sladb. Carnegie, Phipps & Co., Phoenix Iron Company, the Pittsburgh Steel and Iron Company, of Trenton The Chairman. That is your concern t Mr. Sladb. Yes, sir. Mr. Carlisle. Names are sometimes very hard to get, so call those over slowly to the stenographer. Mr. Slade. Jones & Lackland, limited, Pittsburgh ; A. B. Roberts & Co., Philadel- phia ; the Illinois Steel Company, of Chicago ; the Colmnbia Iron and Steel Company, of Pittsburgh; Passaic Eolling Mill Company, of Passaic, N. J. Then there are two others, Springfield Iron Company and New Albany KoUing Mill Company. Now, there are some mills not in the combination. Mr. Baynb. One at Youngstown, Pa.? Mr. Slade. I should have added there are works at Cleveland and Pittsburgh, Mr. Oliver's, I think— the gentleman who spoke this morniug. Mr. Bayne. Are there any mills not now in it? Mr. Slade. I have just mentioned two. They are coming up all the time. We make no effort to stop new mills at all. We simply say to one another, let us charge a fair price on this production. That is all the combination says, and we take the consequence of a rise ot new works in compeiition. We never make any attempt to put an individual off or keep anybody out. Mr. Oliver can tell you whether we have done anything to prevent him from coming in. Mr. Gear. You did not make any combination to reduce the price? Mr. Sladb. Last year we reduced the price half a cent a ton. This year we have advanced the price, but not as much as the raw material has advanced. Mr. Gear. You have no combination to crush out other mills ? Mr. Slade. Not in the slightest. Mr. Bayne. You could not crush them out if yon wanted to? Mr. Slade. No, sir; we would simply crush ourselves. Mr. Bayne. Have you undertaken to put the price up yet ? Mr. Sladb. No, because the otlicrs would come in. Capital is always seeking a profitable investment and to do a profitable business, and if we did, it would cer- tainly come in. Mr. Gear. When you change your rolls, how many men does it take ? Mr. Slade. I do not know how many men it takes, but perhaps it takes half a dozen to change the rolls. Mr. McKenna. Have you any interest in limiting the production ? Mr. Slade. No, not the slightest. Mr. Flower. Are you afraid that a change in the tariff' duty would affect you in- juriously 1 Mr. Sladb. We would die of starvation ; and we prefer to live and do this work we have been doing fur the last twenty years, in increasing our mills and increasing the product of this country. We do not expect to control the business ; we are simply fighting to live. Other mills are coming in all the time. Those mentioned last are getting ready to come in. We will go on with that and let things take care of themselves. The Chairman. Does the Senate bill propqse to reduce the duty V Mr. Slade. It does. We had a consultation with the Senate committee last year, and we were enabled here to get a reduction of a quarter of a cent a pound, which was more than we thought we ought to have on foreign beams. Foreign beams can come in under this duty. The Chairman. It was IJ cents, and now it is 1 cent ? Mr. Slade. Yes, sir. On the first draft of this Ijill it was 1.1 cents, and it is now left at 1 cent. Mr. Gear. What is the freight on a ton of beams ? Mr. Slade. I do not know anything about that. That is all I have to say. I niiri'ly want to show the paragraph which was clearly designed to cover these Bhapcs. REVISION OF THE TARIFF. 115 Senate substitute for H. R. 9051, section 198, insert after line 841: "Provided, That the amount of duty levied and collected upon any such manufactured iirticle or ware shall not be less than would have been collected upon the material or mate- rials from which such article or ware is manufactured if it had been imported pre- vious to being so manufactured." COAL. STATEMENT OF HON. GALPSHA A. GROW. Hon. Galusha A. Grow, of Pennsylvania, next addressed the committee. He said: Mr. Chairman and gentlemen of the committee, as I may fail to make myseh. clearly understood, I give you this statement, which' contains the conclusion to which I aim, and which probably would be more interesting for you to consider than anything I could say. The Senate's amendment last year to the House bill relative to bituminous coal reads: "Coal, bituminous and shale, 75 cents per ton of '28 bushels, HO pounds to the bushel ; coal, slack or culm, such as will pass through a half-inch screen, 30 cents per ton of 28 bushels, 80 pounds to the bushel." Slack is the line part of bituminous coal, and culm is the fine dust of anthracite coal ; both kinds are mentioned, but the culm is of no consequence, as all kinds of anthracite coal is free of duty here and in Canada. The Canada duty on bituminous coal is 60 cents net ton of 2,000 pounds. The American duty is 75 cents gross ton of 2,240 pounds. So our duty is 7^ cents greater than the Canadian duty on a gross ton. What is aimed at by the proviso I give you is that whatever reduction shall be made in the duty on any kind of coal shall be on condition that Canada shall receive our coal at the same rate of duty. The Chaikman. Have, you read your proviso? Mr. Grow. The proviso is this: " Provided, That in case any foreign country shall impose any greater duty on bi- tuminous coal when imported into said country from the United States than the duty herein speciiied, then the duty on coal, when imported from such country, shall re- main the same as fixed by the law in force at the date of the passage of this act." The Chairman. What duty would you assess on coal ? Mr. Grow. It would greatly benefit the coal industry of western Pennsylvania and Ohio, and I do not think it would injure it in any other part of the country, to make the duty about as follows in the proviso that I have indicated : "Coal^ bituminous and shale, such as will not pass through a screen of IJ-inch mesh, called lump coal, 45 cents per ton of 2,240 pounds. Eua of raiues, that is, lump, nut, and slack together as taken from the mine, and slack, 30 cents per ton of 2,240 pounds." Whatever duty is made less than the present some such proviso should be at- tached. Its practical effect of course could apply only to Canada, and but for treaties with the most favored nations the proviso could be specifically applied to Canada. Mr. Bayne. Is it your aim to increase the export to Canada or the import from Canada? Mr. Grow. To increase our export to Canada. Last year we exported to Canada almost three times as much bituminous coal as we imported from all other countries. The export to Canada of bituminous coal was 1,226,211 net tons, and we imported from Canada 374,833 gross tons, of which 69,857 was from Nova Scotia and New Brunswick; the balance was from British Columbia. In Canada, east of the Rocky Mountains to about 100 miles west of Montreal, Pennsylvania, Ohio, Indiana, and Illinois supply the entire country with bituminous coal. East of that the supply is mostly from Nova Scotia district. Three years ago the Grand Trunk supply at Portland, in Maine, was furnished by the Cumberland and West Virginia mines iu competition with Nova Scotia. If the duty was what I indicate, or thereabouts, the States mentioned would supply all the country in Canada west of Montreal with bituminous co.al, and Nova Scotia would supply all east of Montreal and most of the State of Maine and probably some in Boston. The American mines would supply all points where the cost of transportation from the mine to the market is not greater than the cost from the Nova Scotia mines to the same point. Canadian labor in Nova Scotia is paid less than the labor in American mines, but they have more expensive mines to work, which compensates in part for that. Mr. Carlislh. How much difference is there in the price of labor? Mr. Grow. About 25 or 30 per cent., I think. The duty should be high enough to meet that, and that is all that is required. 116 REVISION OF THE TARIFF. Mr. McMiLLiN. Yon make a new classification and say, "run of mines, slack, and culm." Mr. Grow. Yes ; there are three kinds of bituminous coal, of different market value, having the commercial names of lump, lump and nut, and slack. Run of mines em- braces all three of these and is the coal just in the shape that it is taken out of the mine. Mr. McMiLLiN. Do I understand yon to say there is now a duty on dust coal f Mr. Grow. There is no duty on dust coal, which is the same as culm, for that is anthracite, but ou slack there is, for that is bituminous coal. Mr. McMiLLiN. But still the miner does not get pay for this coal at all. _ Mr. Grow. In the anthracite region the miner is paid by the car, which is the same as paying him for run of mines. In the bituminous region he is paid in some districts for run of mines, in others for lump coal only, but his pay is really the same thing, either way. Sixty cents per ton for lump coal is just the same, and is counted as the equivalent of 45 cents per ton run of mines. It is the same thing to the miner either way. In soft-coal mining the miner loads his own coal into mine cars. Hard coal is mined run of mines and the miner is paid for a helper, who loads the coal. Mr. Carlisle. That is anthracite, which is now freeT Mr. Grow. Yes, sir. A duty would make no difference, for there is no other coal to compete with it. Mr. Carlisle. Except so far as soft coal comes in competition with it f Mr. Grow. A duty would not affect that. Mr. Bayne. You say that the Grand Trunk Railway bought coal at Portland? Do you know what they paid for that f Mr. Grow. I do not remember now. It was three years ago. Mr. Bayne. Was it as much as 75 cents difference ? Mr. Grow. I do not recollect what the price was. The Grand Trunk takes its sup- ply for the eastern end of its road at Portland, and from the Nova Scotia region. Along the line west of Montreal it takes mostly from Buffalo over the International and Suspension Bridge, and for the western end at Detroit. Slack coal admitted at a lower rate of duty would take the place of other coal to a certain extent. I would make the duty on run of mines and slack 15 or 20 cents less than lump coal, for that would be about the difference in market price, with the proviso that Canada must take our coal at the same rate we charge on theirs. The Nova Scotia producers would not probably want a reduction of the present duty. Mr. Bayne. Canada would not be apt to reduce the duty on coal. Mr. Grow. Then the duty would continue the same as it is now. My proviso would make the duty the same in both countries if there is any reduction. Mr. McKenna. Do I understand you that we mine coal cheaper in the United States than in Canada ? . Mr. Grow. In western Pennsylvania and Ohio we do, if you count all the expense of the mine. Mr. McKenna. Why, then, do we want a duty on it t Mr. Grow. On account of transportation. Mr. McKenna. Is the cost of produi;tion in the United States cheaper f Mr. Grow. The points I have mentioned mine cheaper than in Nova Scotia, and the coal at the mouth of the mine sells for less than it sells for in Nova Scotia. The distance from the mine to the market adds to the selling price for both. Mr. McKenna. That is not an inducement to put a tariff on their coal, because they have the longer distance to go. Mr. Grow. The distance, however, affects the selling price, and I would not admit their coal unless they took ours at the same rate of duty. Mr. McKenna. That is a reason for putting the tariff on coal up so they can not come in. Mr. Grow. If we put up our tariff to keep them out, they could put their tariff up to keep us out and we should be the loser, for we export to them more than we im- port. If their miners work for less wages than ours I would make the duty to meet that difference. Mr. McMiLLiN At least their miners must be more inefficient, for you say we mine cheaper than they do. Mr. Grow. TUey have more difficult mines to work. Mr. McKenna. The only object of putting on the tariff is to compensate th» in- creased cost in the United States. Mr. Grow. Yes, and to secure a larger market. Mr. McKenna. If the American has loss cost of production can he not afford to pay higher wages than the Canada man ? Mr. Grow. Yes; if both have the same cost of transportation to their gelling market. Mr. McMiLLiN. I understand you want to pnt a duty on coal for the purpose of meeting the cUtt'ereiice between tJie cost of labor here aati in Canada ; that is iox Hm REVISION OP THE TAEIPI'. lit pnrpose of keeping up the price of labor in this cotmtry, and at the same time yon B»y the labor in Canada will come here. Mr. Grow. Yes; and if we have a aufifloient market to supply we can employ him at our higher wages. But if the Canadian has only 100 miles of transportation to market and the American has 500 miles, though tbe cost of mining was the same to both at the mine, the Canadian would take the market. Mr. McKbnna. You do not mean to say the cost of transportation here and in Canada has anything to do with putting a tariff on coal that remains here t Mr. Grow. It has to do with the market price of the coal. The larger the market for a product the cheaper it can be sold by reason of the greater quantity produced. Mr. McKbnna. Do you want the Canadian tariff reduced on coal ? Mr. Grow. Yes, sir ; for by that we should have a larger area of territory to sup- ply. But they will not reduce unless we do, and that is what my proviso is for. Mr. McKbnna. Why not throw off all the tariff and induce them to throw it off? Mr. Grow. It is doubtful whether that could be done ; but so far as eastern Canada and this country is concerned it would not hurt this country. But so far as impor- tatious from other countries are concerned it might hurt our coal interest in other States than Pennsylvania and Ohio. The Chairman. How would it affect coal T Mr. Grow. If there was no duty on coal between Canada and the United States I think the Nova Scotia region would supply Canadian territory east of Montreal and most of the State of Maine and perhaps some in Boston ; and Pennsylvania, Ohio, and Indiana would supply all the territory west of Montreal to the Eocky Mountains, We should supply 10 miles of territory to their 1. Mr. McMiLLiN. You say we should take 10 miles of their territory to 1 of ours T Mr. Grow. I think so, as far as the supply from Nova Scotia region is concerned. Mr. Flower. How is it with British Columbia mines ? Mr. Grow. They have large producing mines. How they compare with the Seattle minesi do not know ; but a duty of about half the present duty, if reciprocal, would, I think, be no injury to the soft-coal industry of the whole country. Mr. Flowkr. You want the proviso so as to force them to give us as good terms as we give them ? Mr. Grow. Exactly so ; then a lower duty is just as well. Mr. Breckinridge. You say if we had free trade in coal we should occupy 10 square miles of their territory to their occupying 1 of ours? Mr. Grow. Yes ; on the Atlantic coast. Mr. Breckinridge. Do you embrace the Washington trade in your statement about the exchange ? Mr. Grow. No, sir; I don't think that would be the case on the Pacific side. For that reason, and also as to our importation from other countries, I think it well to have a duty on coal, but less than the present if coupled with the proviso that I pro- pose. But the proviso would be of no consequence unless the present duty is re- duced. I will not take up the time of rhe committee further, but will furuish you the statement as to the wages of labor and importation of coal as soon as I can pre- pare the tables. The following is the statement furnished by Mr. Grow after the hearing before the committee: Situminoua coal imported into Canada, hy their custom-house reports, for the year endifng June 30, 1888, from the United States. Provinces. Quantity. Valuation. Ontario i , Tons. 1, 212, 632 6,127 3,504 1,019 2,219 700 $3, 400, 618 21,110 Nova Scotia 10 199 New Bmnswick 6,703 5,356 British Columbia - -- - 5 981 Total ), 226, 211 3, 448, 965 118 REVISION OF THE TARIFF. Bituminous coal imported into the XXnited States year ending June 30, 1888. From— Quantity. Valnation. Nova Scotia, New Brnnswick, and Prince Edward Island Tons. 65, 368 4,489 $73, 825 16, 916 Total 69, 857 304, 976 90,741 1, 335, 308 Total . 1, 426 049 332, 130 138, 722 29, 649 228, 961 354, 354 129,373 England . Total 400, 501 1,412,688 Total from all countries ..... ., 877, 504 2,846,741 Nova Scotia. Northwest Pennsylvania. Miners' pay for rnn of mine Mnle drivers, per day Track men, per day Laborers, per day Gross ton. $0. 45 to $0. 55 . 70 to 1. 00 I. 00 to 1.25 1. 10 to 1. 35 Net ton. $0.45 $1. 50 to 1. 75 1. 60 to 1. 65 1.30 to 1.60 Cape Breton miners' pay some less than I^ova Scotia; have not been able to get precise figures. Average valuation at custom-house of hituminous coal. From the United States into Canada net ton.. $2.80 From Canada into the United States gross ton.. 3.80 From all countries into the United States do 3.24 Bituminons coal imported under reciprocity treaty from Nova Scotia, year ending Jane 30, 1863, 282,774 tons, $757,094 ; year ending June 30, 1870, 243,683 tons; duty, $1.25 ; year ending Juno 30, 1888, 69,857 tons ; duty, 75 cents. Anthracite coal imported into Canada year ending June 30, 1889, 1,281,771 tons ; valuation, $5,175,207. REVISION OF THE TARIFF. Importation of hituminous coal. 119- Ports at wMoli mostly received. Tear ending Jane 30, 1860; duty $1 per ton (C. & N. No. 9, page 430). Te.1T ending Jane 30, 1868; duty $1.25 per ton (C. & N. No. 10, page 60). Tear ending Jane 30, 1888; duty 75 cents per ton (C. & N. No. 4, page 174). Tons. Valnation. Tons. Tal nation. Tone. Talaation, 157 22, 666 26 4,904 $234 92, 107 76 14,283 85 98, 870 30 2,460 366 615 $295 291, 454 222 7,929 719 1,470 85 27, 974 174 107 $153 72, 225 575 211 Fairfield FallEiver 2,247 49 Mobile . 1,728 842 7,168 1,207 308 3,602 164, 631 634 110 4,290 307 2,742 2,017 632 6,889 6,629 13, 405 1,888 699 14, 288 638, 692 805 662 8,906 631 4,474 3,655 895 323 1,364 5,105 1,712 583 1,712 145, 471 407 1,386 16, 201 4,052 12, 201 191 2,113 3,120 20, 373 8,313 1,169 8,313 466, 992 675 9, 253 51, 027 11,743 30, 467 374 97 New Bedford 831 438 JTew London Jitev Orleans 299 22, 920 4 1,916 30,538 1,227 709 110, 250 « 7,110 51, 021 839 Norfolk Oregon Portsmouth . - Providence Philadelphia 5,724 21, 822 Kichmond 81, 279 1,527 6,408 14,613 129, 134 12,084 523, 005 243,547 4,603 459 11,788 958 7,946 6,048 20,626 11, 278 Salem 3 286 ■Willamette 45, 518 413, 7U 24, 675 1,787,867 2,575 25, 575 7,748 108, 801 1,335 75, 102 6,393 298, 563 Total from all ports in the United States 240, 697 839,334 396,128 1, 280, 824 877, 504 2, 846, 741 EeceiTed at Boston in 1888, 28,000 tons agaiast 99,«ee te»s in 1868. KeeeiTei at Neir Tort in 18S8, 23,000 toi^ against 145,000 tons in 1868. Importation of bitumin*u4 coal. Countries from which mostly receiTed. Tear ending Jane 30, I860; daty $1 (C. & N. No. 5, page 198). Fear ending Jane 30, 1868; duty $1.26