May 1, 1913.] 



THE INDIA RUBBER WORLD 



403 



The Proposed New Tariff. 



IN two important points the rubber industry has reason to be 

 satislicd with the proposed new tariff. The idea which had 

 been put forward of a duty on crude rubber did not I'lnd favor 

 with the authors of the new measure, as according to its pro- 

 visions, rubber continues on the free list, where it remains in spite 

 of efforts made since the introduction of the bill to impose a 10 

 per cent. duty. The waste trade has succeeded in getting the 

 objectionable clause withdrawn, which has in the past limited 

 free entry to waste rubber worn out by use. 



A much more serious point, in which the industry is deeply 

 interested, is that of the sweeping reduction made by the new 

 tariff upon the rates hitherto in force on rubber manufactures. 



From the 35 per cent, to which manufactures of rubber are 

 subject under the Payne bill, a reduction has been proposed to 

 10 per cent, on manufactures of rubber not specially provided 

 ■for; the rate of hard rubber being, however, placed at 25 per 

 ■cent. 



On goods not strictly manufactures of rubber, but into the 

 •composition of which rubber enters, radical changes are pro- 

 posed. Thus cables would, under the proposed tariff', pay 20 

 per cent., as against about 52 per cent, at present under a com- 

 posite rate. Belting of cotton and rubber is reduced from 30 

 per cent, to IS per cent. 



With the view of offsetting these reductions in duties on manu- 

 "factures of rubber, cuts have been made in various semi-manu- 

 factured and other articles used by rubber manufacturers, with 

 the object of lowering the cost of production. The "basket" 

 •clause under which machinery has paid 45 per cent, has been 

 replaced by one on a 25 per cent, basis. In the chemical sched- 

 ule important reductions have been proposed in ground chalk, 

 fuller's earth, calcined magnesia, castor oil, barytes, litharge, 

 •oxide of zinc, lithopone and other articles. Sulphuric acid, 

 which now pays a duty of Yn cent per pound (equalling 8.63 per 

 •cent.) would be on the free list. The changes affecting rubber 

 •chemicals are dealt with in another column. 



Owing to the extent to which cotton goods are used by rubber 

 manufacturers, their requirements are represented under various 

 paragraphs, but the general character of the changes proposed 

 may be inferred from the duty on cotton goods not specially 

 provided for (now standing at 45 per cent.) being placed in the 

 new measure at 30 per cent. Waterproof cotton cloth, which 

 has paid a compound duty equalling a fraction over 50 per cent., 

 is prospectively reduced to 25 per cent., while tire fabrics 

 -would be reduced from 45 per cent, to 25 per cent. 



While finished automobiles are retained at 45 per cent., fin- 

 ished parts (not including tires) are reduced from 45 per cent. 

 "to 20 per cent. There being no special provision for tires, they 

 would apparently come under the "basket" clause at 10 per cent. 



The new tariff has still to be subjected to much discus- 

 sion, and rubber goods, coming under section X, are near to the 

 close of the dutiable portion 



Two tables are subjoined. One gives the principal changes 

 proposed affecting the rubber trade, and another deals with the 

 rates on rubber chemicals. The first includes extracts from the 

 latest statistics of imports and exports, of which an advance 

 •copy was published in the March issue of the Indi.\ Rubber 

 World (page 316), showing the distribution of imports and ex- 

 ports among the various countries of origin and consumption. 

 From tlie table it will be seen that in the fiscal year, 1912. the 

 imports of unmanufactured rubber represented $105,034,556, 

 against which there were exports to the value of $6,646,950; the 

 tiet consumption having thus represented slightly under $100,- 

 ■000,000. 



The imports of manufactures, strictly classified as being "chief 



value rubber," amounted to $998,722, while the exports under the 

 same category represented $11,167,289. The imports as recorded 

 do not include such goods as cables and cotton belting, which 

 are shown separately; nor waterproof cloth and tire fabrics; 

 while any exports under the last three heads are included in the 

 "all other" classification. 



It is thus difficult to indicate the proportion of manufactures 

 containing more or less rubber, which are included in the 

 statistical returns of imports and exports. 



No finality is to be expected until the new tariff is signed, but 

 the details on the subject published in this issue may facilitate 

 its provisions being understood by tliosc whom it affects. 



ASBESTOS IN THE NEW TARIFF. 

 From the table published in atiother column, it will be seen 

 I that it is proposed to reduce the duties on both woven asbestos 

 fabrics and other manufactures of the article. Under the pres- 

 ent tariff woven fabrics, wholly or in chief value, of asbestos, 

 pay 40 per cent. ; that rate being prospectively reduced to 20 per 

 cent. Other manufactures of asbestos now paying 25 per cent., 

 it is proposed to reduce to 10 per cent. 



At the hearings before the Committee on Ways and Means 

 arguments were adduced by Mr. R. G. Rhett, of the General 

 .•\sbestos and Ruljber Co., Charleston, S. C, in favor of making 

 the duty on asbestos manufactures generally 40 per cent., thus 

 covering both yarns and cloths. Testimony was also given by 

 other representatives of asbestos manufacturing interests. From 

 the measure as introduced it would seem that reductions are pro- 

 posed in both cases dealt with at the hearings. 



THE WASTE TRADE WINS AT WASHINGTON. 



Since the new tariff has been in preparation the waste rubber 

 trade has been active in efforts to get the final clause of par. 591 

 in the tariff of 1909 struck out. This clause limits the free im- 

 portation of rubber scrap to such as has been worn out by use. 



The official report of the hearings before the Committee on 

 Ways and Means with respect to this clause, contains on page 

 5863 the testimony of Mr. Herman Muehlstein, of New York, as 

 representing the American dealers in waste rubber. He pre- 

 sented the brief of the scrap rubber dealers asking the with- 

 drawal from clause 591 of the words "which has been worn out 

 by use." Useless ends and clippings of factory waste have been 

 paying a duty of 10 per cent., although not available for any pur- 

 pose other than scrap. In his testimony, Mr. Muehlstein em- 

 phasized the arguments of the brief. 



Letters on the subject were addressed to the Committee by the 

 Philadelphia Rubber Works Co., Trenton Scrap Supply Co. and 

 United States Rubber Co., of Naugatuck, Conn., which are em- 

 bodied in the official records of the hearings. 



The clause appears in the proposed new tariff with the omis- 

 sion of the objectionable w'ords. 



NO DUTY ON CRUDE RUBBER. 



Since the rubber industry has every reason to be congratu- 

 lated at the failure of the attempt to impose a duty on crude 

 rubber, it may be appropriate to recall the efforts made with a 

 view to that result. One of the principal features of this oppo- 

 sition was the brief of the Rubber Club of America, addressed to 

 the Committee on Ways and Means, on March 28, 1912, and 

 supported by telegrams from many men prominent in the trade. 



These efforts were reinforced by renewed representations dur- 

 ing the past winter on the part of various rubber companies and 

 their officials, made not only to the members of the Ways and 

 Means Committee, but to the representatives in Congress of the 

 rubber manufacturing centers. 



