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Proposed emergency tariff cost of white chatons from Gablonz, Czechoslovakia: Cost, 180 Czechoslovakia kronen per mass at 1} cents per Czechoslovakia kronen.....
$2. 40 180 Czechoslovakia kronen at 64 cents, proposed rate, $12.15; 20 per cent ad valorem on proposed rate..
New total cost under proposed rate.....
4. 83 MORRIS GOLDBERG's Sons, By John L. GOLDBERG.
(Wimelbacher & Rice, Now York.]
Duty payable on cotton gloves at the present market price abroad, duty based on current rate
of exchange and duty payable on same gloves at prewar prices, duty based on Government prewar standard for erchange.
$2.80 marks.. 9.00
$0.7497 $40.00 $14.00
Present market price....
Present market price......
Present market price......
$2.2512 .marks.. 9.20
$0.76636 $32.16 $11.256
$0.896 .marks.. 4.60
$0.38318 $12.80 $4.48
STATEMENT OF WALTER S. HILLBORN, ATTORNEY AT LAW,
NEW YORK CITY, N. Y.
The CHAIRMAN. What is your business?
Mr. HILLBORN. I represent 24 importers of novelty jewelry and beads.
The CHAIRMAN. From what country?
Mr. HILLBORN. They import their beads and their novelty jewels from Czechoslovakia and Germany. I have a list of the names of the persons I represent.
(The list of names represented by Mr. Hillborn is as follows:) Lippmann, Spier & Hahn.
Emerich & Schorsch. D. Lisner & Co.
Jules Schwab & Co. Cohen & Rosenberger.
L. Mendelson Co. Samstag & Hilder Bros.
Lewy & Co. A. Steinhardt & Bro.
Guthman Solomons Co. Ben Felsenthal & Co. (Inc.).
H. Wolf & Co. Royal Jewelry Manufacturing Co.
L. Heller & Son (Inc.). Wm. E. Flory & Co.
Royal Jewelry Co. Fred & Ben Lewenthal Co,
Wertheimer, Plehn & Levy (Inc.). M. Guggenheim (Inc.).
F. Hoffman & Co. W. Reichart & Co.
A. Miltenberg & Co. The CHAIRMAN. What do you desire to add ? Mr. HILLBORN. I simply want to add two additional samples, with the prewar prices and the present prices.
Here is a string of pearl beads which cost $15.99 per gross, prewar price; present price $22.66 per gross—150 per cent.
The CHAIRMAN. The committee has had that, has it not?
This is a beaded bag, the prewar price of which was $1.31 and the present price of which is $2.56.
Senator SMOOT. And the retail price of which is $20.
The CHAIRMAN. Dr. Herty is here, who was introduced by Senator Spencer and who represents Mr. Levi Cooke. We will hear these gentlemen briefly. I think we have covered the ground pretty thoroughly, however.
Mr. COOKE. Dr. Herty will speak, and then at the conclusion of his remarks I would like to be heard also.
The CHAIRMAN. We want to hear only one person.
STATEMENTS OF DR. CHARLES H. HERTY, EDITOR JOURNAL
OF INDUSTRIAL AND ENGINEERING CHEMISTRY, NEW YORK, N. Y., AND MR. LEVI COOKE, ATTORNEY AT LAW, WASHINGTON D. C.
The CHAIRMAN. Please state your name.
Dr. HERTY. Charles H. Herty. I am editor of the Journal of Industrial and Engineering Chemistry, published by the American Chemical Society.
The CHAIRMAN. Where do you live?
Mr. Chairman, through my connection as an editor I am in very close touch with matters in the chemical industry, and the announcement that the peace resolution will soon be passed has thrown consternation into the industry. There was an occasion exactly similar to this in November, 1919, when it seemed that peace would be declared, and Congress at that time adopted legislation, regardless of the termination of the war, which would protect the chemical industry until January 15, at which time Congress was reconvened.
The question comes again. Legislation has been under discussion since that time. It has not yet become a law, and we are up against exactly the same question to-day as we were in November, 1919.
The question is, What can be done? Is there necessity for doing anything? That depends upon what products should be dumped upon this market.
In answer to that question I would like to call attention to the statement made by Mr. Jacobi, the representative of the Textile Alliance. He has been representing the State Department in Paris. He states in his report which has been published and which I have here that the German dyestuff policy has changed recently, emphasizing less those dyes which we need in those countries, accentuating those which we make in this country. That has rather serious import.
In the next place Mr. Jacobi, who is just back from Paris, representing the State Department in connection with the reparation dyes, stated to our committee in connection with the question of exchange of some dyes which had come to this country through its share in the reparation that the Germans have dyes which were needed in this country and that the Germans do not want to take those dyes in exchange because their warehouses were so clogged up with supplies that it was a question of storage space as to those dyes. That statement was made not less than two weeks
He also stated that when it was apparent that England was about to adopt restrictive legislation Germany dumped into England more than $2,000,000 worth of dyes. He also stated that in anticipation of a high tariff in Spain that they had stocked up. Spain. In spite of those efforts their warehouses are clogged with supplies. That is how he states it to us, coming straight from the German factory.
The question comes, Will present legislation take care of this industry?
I want to call your attention to the fact that the Tariff Commision is giving the present legislation very careful study. It has reported to the Congress and it has shown severe defects in it. It was drawn at a time when we were all green at the business in legislating for the coal-tar chemical industry.
In the next place, those recommendations of the Tariff Commission I should say were all embodied in the bill which your committee recommended to the Senate at the last session.
In the next place the industry has been protected by the War Trade Board since the armistice. The statistics of the Department of Commerce show this interesting fact, and it answers, I think, a question that may have important bearing on a remark made a little while ago. That is, that imports are coming into this country now through neutral countries which have no dye industries. For instance, during the year 1920, there came into this country from Norway, which has no dye industry, 13,200 pounds; from Belgium, 236,697 pounds; from Japan, 1,000 pounds; from Italy, 76,000 pounds from Holland, 350,000 pounds; from France, 471,000 pounds; from England, 389,000 pounds.
What that means, is simply two things. In the first place, German goods
Senator Smoot. Do you know what class of dyestuffs those were ? Dr. HERTY. Yes, sir. Everything except natural indigo.
Senator SIMMONS. Do you mean to say that neither England nor France has any dye industry at all ?
Dr. HERTY. Oh, no. I mean Holland. There are great quantities come in from Switzerland.
The CHAIRMAN. Are these articles supposed to come from Germany originally? Are they of German manufacture?
Dr. HERTY. That I have no evidence of, Senator, except that these countries have no dye industries.
The CHAIRMAN. No; but England and France have very large dye industries.
Dr. HERTY. France? Not yet, sir.
The CHAIRMAN. England has. Have you any evidence that those articles are not of English manufacture
Dr. HERTY. I have none at all. The invoices would show that. The goods, as they are appearing on the market, as I am told by the men in the trade in New York, bear German labels.
Senator SIMMONS. Do the goods that come from England to this market come at a lower rate than the German rate?
Dr. HERTY. You mean, at the same price?
Senator SIMMONS. Yes. How does the price of the English importations of dyestuff compare with the German price?
Dr. HERTY. On account of exchange they are a good deal higher.
Senator Smoot. You have no doubt but what under the exchange depreciation German dyes are higher than the American dyes?
Dr. HERTY. It depends upon whether they are competitive or noncompetitive, Senator.
Senator SIMMONS. Let me ask you this
Senator SIMMONS. You have indicated in your statement here to this committee that in your opinion a large part of these dyes, especially those coming from countries that have no dye industries, are German dyes shipped into those countries and transshipped here. Notwithstanding this license system against German importation of dyes into this country, is there any reason, if Germany wanted to sell their dyes in this market, she could not do so! In other words, if Germany can send us through Holland or through Belgium the small' amount of dyes that you indicate here, can she not send as large an amount as she desires to send ?
Dr. HERTY. Just as large; yes, sir.
Senator SIMMONS. Therefore you are right now and have been for some time in the same jeopardy as you stated you would be in as soon as peace was declared with Germany.
Dr. HERTY. I think Mr. Cooke, here, who is going through some of these experiences right now, to-day, can answer that question.
The CHAIRMAN. Is Mr. Cooke in the dye business?
Mr. COOKE. I have represented other clients, but I am very much concerned with the chemical business now. I have been counsel for Monsanto Chemical Works at St. Louis, which is the operation to which Senator Spencer referred, and I am familiar entirely with its operations. They started in 1901 and made coal-tar medicinal and fine chemicals out of German intermediates. To buy those German intermediates they had to go as far away from Germany as Ceylon, India, and had brokers there to purchase those intermediates, because the German syndicate would make every effort to destroy their actual business at St. Louis by preventing Monsanto's securing its supply of intermediates.
The plant started in a factory no bigger than this room in 1901. A year ago it employed 1,800 men and had over $10,000,000 invested, much of it put in during the war to meet Government exigencies, on borrowed capital, very largely. It reinvested every dollar it earned in the business. To-day the plant is employing only 200 men, and the reason for that is this—I do not know so much about dyes as I do about fine medicinal chemicals and other fine chemicals made by Monsanto, but the whole American trade is anticipating that the protection of the American chemical industry will break down, due to the interim between
The CHAIRMAN. That horrible picture has been painted to us for a year and a half. The ships are waiting outside the 3-mile zone to come in here with cargoes the moment the armistice is signed. The ships have not yet appeared in sight, and there is no evidence that any German article is coming here.
Mr. COOKE. I can explain that, Senator Penrose. There has been a war-trade section of the Department of State which, under the authority of the trading with the enemy act, is refusing to admit German chemicals unless there is not a sufficient domestic supply in grade, price, and quantity.
T'he CHAIRMAN. I am not going to get into an argument, but we can not prevent these importations from Sweden and other places of German origin. We have had those nightmares before.
Mr. COOKE. If the chairman please, I can say that it is not a nightmare now. It is a present actual thing.
Paratoluolsulfamide is a product manufactured in the Monsanto Chemical Works. From it they manufacture chloramine-T; 22,000 pounds of paratoluolsulfamide is a very large shipment, enough to break down any factory in this country that manufactures it. Such a shipment from Switzerland has just been authorized by the war-trade section. It is absolutely impossible for American manufacturers to meet the competition, and nothing in the present antidumping provision of this act or in any provision of the act will save the chemical industry, on account of its peculiar and distinct character.