November 1, 1913.] 



THE INDIA RUBBER WORLD 



65 



Rubber in the New Tariff. 



SINCE the introduction of the new tariff measure, the por- 

 tions affecting rubber have been subjected to only slight 

 modifications, its original provisions having been in gen- 

 eral adopted in the final passage of the bill on October 3. 

 Hence the remarks on the subject of The India Rubber World 

 in the issue of May 1, page 403, are still to a large extent ap- 

 plicable, while the revised details of the rates in another column 

 bring the information up to date. 



That much preliminary work had been done in committee is 

 evident from the fact that two important points affecting crude 

 and waste rubber were provided for by the new measure in 

 accordance with the desires of the rubber trade. 



CRUDE RUBHER .^ND GUTTA PERCH.\. 

 The attempts which had recently been made in France — with- 

 out success — to impose a duty on crude rubber tended to support 

 the arguments of American manufacturers on tlie subject. One 

 of the most effective weapons in this struggle was the brief of 

 the Rubber Club of America, submitted on March 29, 1912, to 

 the Committee of Ways and Means, which was supported by 

 telegrams from various important rubber manufacturers. Op- 

 position to the suggested duty on rubber was still actively car- 

 ried on, with the result that the bill as presented to the House 

 on April 8, 1913. retained crude rubber and gutta percha in the 

 free list. 



SCRAP RUBBER. 

 In accordance with the representations of the waste trade, the 

 new measure omitted the clause which restricted the free entry 

 of scrap to such as had been worn out by use. 



MATERIALS FOR RUBBER MANUFACTURE. 

 With the desire to let rubber manufacturers share in the general 

 reduction of duties on materials, the rates on many important 

 articles had been reduced in committee. A further cut was in 

 various cases made during the discussion of the bill, which, in its 

 final shape, displays marked reductions in various leading lines, 

 as compared with the Payne tariff ; all of which are shown in de- 

 tail by the annexed table. Prominent among these changes is the 

 transfer to the free list of sulphuric acid and flowers of sulphur, 

 which have hitherto paid duties equal to 8.63 per cent., and 13.73 

 per cent. Of course, the exact benefit whicli .Kmerican makers 

 will derive from these reduced duties depends upon the extent 

 to which they are reflected in the quotations of chemical manu- 

 facturers and dealers. 



COTTON' FABRICS. 



Textile goods constitute such an important part of the purchases 

 of rubber manufacturers, that the sweeping reductions in this 

 schedule require careful study as to their special application to 

 individual requirements. The item of most interest to manufac- 

 turers will doubtless be paragraph 262. by which tire fabrics are 

 cut from 45 per cent, to 25 per cent., while cotton fabrics not 

 otherwise specified are reduced by paragraph 266 to 30 per 

 cent. Here the special needs of individual makers will in each 

 case govern the amount of benefit they will derive from tariff 

 changes in such cotton articles as are employed in the further 

 manufacture of their goods. 



Those manufacturers who contemplate weaving their own tire 

 fabrics will be interested in paragraph 250, dealing with cotton 

 yarns in various counts. 



Belting of cotton and rubber is reduced by paragraph 262 from 



30 per cent, to 15 per cent., while waterproof cotton cloth contain- 

 ing rubber now pays, under paragraph 254, 25 per cent, instead of 

 the compound duty equaling about SO per cent. 



CABLES. 

 By paragraph 114, telegraph, telephone and other wire composed 

 of metal and rubber, is subjected to 15 per cent., while the com- 

 pound duty hitherto levied has equalled 52 per cent. 



ASBESTOS. 

 Crude asbestos remains upon the free list. Efforts were made 

 during the hearings before the committee to obtain a uniform 

 rate of 40 per cent, on asbestos yarns and woven cloths. The 

 principle of a uniform rate has been conceded, but only to the 

 extent of 20 per cent, instead of 40 per cent., as previously. Man- 

 ufactures of asbestos not specially provided for pay 10 per cent. 

 instead of 25 per cent., as hitherto. 



AUTOMOBILE TIRES AND BICYCLE TIRES. 

 These being specially excepted from the higher duty on parts 

 of automobiles, would apparently fall into the "basket" clause of 

 unspecified rubber goods at 10 per cent. 



RUBBER MANUFACTURES. 



The satisfaction experienced by rubber manufacturers at the 

 lower rates on materials, diminishing cost of production, has been 

 qualified by the sweeping reduction made in the duties on rubber 

 goods, wliich now stand (instead of 35 per cent, and 40 per cent.) 

 at 15 per cent, for druggists' sundries, 25 per cent, for hard rub- 

 ber goods, and 10 per cent, for articles not otherwise specified. 

 To what extent this reduction will be offset by lower costs result- 

 ing from the operation of the tariff on materials, can only be de- 

 termined by the maker's calculations in each particular instance. 

 Economy in cost of production must now, more than ever, be the 

 watchword of the rubber manufacturer. 



In view of the reduction in duties of rubber manufactures hav- 

 ing only been made public on the introduction of the bill, these 

 provisions have not had the opportunity of being subjected to the 

 same amount of detailed criticism as other portions of the 

 measure. Still the new tariff is in operation and the actual results 

 of its working have yet to be experienced. 



TARIFF TROUBLES. 

 Where there is a "])asket" clause, into which unspecified articles 

 automatically fall, watchfulness is required on the part of manu- 

 facturers to see that any competing goods pay duty under proper 

 classifications at the normal tariff rates. This involves of course 

 a good deal of detail, but such work would be repaid by the fair 

 adjustment of tariff rates. The application of a new tariff always 

 causes at first a little confusion until its provisions are in working 

 order and the right classifications established. For some time to 

 come the decisions of the inevital)le disputes between importers 

 and the government officials will form a series of precedents, of 

 value in future cases. When the present German tariff was inau- 

 gurated, a supplementary hand book giving the different classifica- 

 tions was issued for the guidance alike of government officials 

 and importers. Such a compendium will doubtless in time be 

 issued here, as the provisions of the tariff in many cases require 

 interpretation, and the gradual experience to be gathered by those 

 interested in the operation of the tariff will prove a valuable 

 guide in cases of difference of opinion as to the classification 

 of imported products entering into competition with those of 

 American manufacturers. 



