own trade names. There seems, however, to be no valid objection to the adoption of this generic term, as it does not represent any particular process or any particular manufacturer. This committee has therefore concluded to adopt this name, "rayon," as the generic term to apply to all of these processes or manufactures and to that end a definition has been developed and inserted in paragraph 1313 to be used for the purposes of the tariff act. If no such generic term is definitely fixed in the act, it will be necessary to try to cover all of the various processes and manufactures by names or descriptions wherever the item occurs in the law. Of course, the adoption of the generic term and the definition therefor is not intended to affect the use of trade names for the various processes of production by manufacturers and others. The duties on rayon (as now defined) were all fixed in the Tariff Act of 1922 in paragraph 1213 of the silk schedule. Considerable general language was used in this paragraph and most of the manufactured articles have since been classified by customs officers under the general phraseology of the paragraph. In the opinion of the committee, this industry should have a separate schedule in the new law, not only because it represents a new and different type of manufacture than what might be termed the natural textile industries but also because of its increasing importance in the United States as well as throughout the world. In this new schedule the various items, such as yarns, waste, fabrics, and manufactured articles have been grouped in different paragraphs. Statistics on this new industry are somewhat difficult to obtain. At the present time the total capital invested in the United States in this industry is upwards of $150,000,000. In 1927 the total domestic production of all kinds amounted to $109,888,336, while the total duty paid value of imports was $20,997,517. Of these imports yarns and yarn waste alone, including duty, totaled $20,643,027, while the total production of like articles was $106,811,501. The following tables show the details as to such imports and production: Comparison of value of imports and domestic production of rayon yarns, waste, and allied products, 1927 1 In addition there was imported in 1927 by similitude to inedible gelatin at 25 per cent ad valorem, under par. 42, also a large quantity of Fenestra" which is cellulose in sheet form. The imports of Fenestra" are not separately segregated from the aggregate imports of manufactures of inedible gelatin which amounted in value (plus duty) to $504,840 in 1927. 50785°-H. Doc. 15, 71-1————21 In 1922 the production of rayon yarns in the United States amounted to about 24,406,000 pounds, or about 30 per cent of the world production, which then constituted 80,894,000 pounds. Five years later (1927) the domestic production of rayon yarns increased to 75,550,000 pounds, as compared with the world total of 265,000,000 pounds. The 1928 production in the United States totaled about 98,000,000 pounds, which exceeds by a considerable margin the entire world production in the year of the enactment of the present tariff law. During the life of the present Act imports have increased from 2,116,000 pounds in 1922 to 12,158,000 pounds in 1928. The world output of rayon yarn now exceeds that of natural silk, and in this industry the United States ranks not only as the largest producer but also as the largest consumer. In enlarging paragraph 1213 of the 1922 Act into a new schedule, separate enumeration is given under paragraph 1302 for rayon filaments (other than waste), known by the name of staple fiber, which has been dutiable under paragraph 1459 of the 1922 Act at 20 per cent ad valorem as an unenumerated manufactured article. Provision is also made for rayon yarns put up for handwork and for rayon sewing thread. Separate paragraphs for sundry categories of manufactures are included to correspond with paragraphs 1205–1211, inclusive, of the silk schedule. Acetate cellulose rayon waste is excluded from paragraph 1302 (rayon waste), since this waste is adaptable for the manufacture of plastics, films, lacquers, etc., and is now included in paragraph 31 of the chemical schedule. In paragraph 1305 rayon in bands and strips is limited to the narrow form not exceeding 1 inch in width, suitable for use in the manufacture of textiles. Cellophane in sheet form falls under the provisions of the chemical schedule in paragraph 31. In the readjustment of the rates in Schedule 13, the combined specific and ad valorem rates have been eliminated and equivalent ad valorem rates have been substituted, except as hereinafter shown. The rates appear to have been fixed, generally speaking, upon a sufficiently high level in the 1922 Act. The new rates are based upon the experience of the application of the rates of the 1922 law upon actual importations. There are as yet many uncertain elements in the relation of the industry to foreign imports. In the case of waste, for instance, the domestic supply has been found inadequate for the manufacture of spun rayon, yarns and importations have been necessary not only of waste as such but of staple fiber to supplement the requirements. The various paragraphs follow substantially the classification in the silk schedule, with reference to the character of the groups of articles. The important changes in the rates of duty are embodied in the proposed new Schedule 13 and are substantially as follows: 1. Decreases: On rayon in bands and strips (visca and cellophane) provided for in paragraph 1305, the proposed duty is 40 per cent ad valorem, as compared with the minimum ad valorem rate of 45 per cent now in force. The duty of 65 per cent ad valorem, which is proposed for plain fabrics under paragraph 1306, for plain-woven fabrics with fast edges under 12 inches in width, and other small wares, under paragraph 1308, for knit fabrics under paragraph 1309 and for unhemmed handkerchiefs and woven mufflers under paragraph 1310, is substituted for the present compound duties, which have amounted to approximately 70 per cent ad valorem under the 1922 Act. The elimination of specific duties on partially manufactured rayon, not further advanced than roving, under paragraph 1302, and the substitution of a flat ad valorem duty of 30 per cent therefor is a decrease in the 50 per cent ad valorem equivalent of the present specific rates, but is an increase of 5 per cent ad valorem over the minimum ad valorem rate of 25 per cent in the Act of 1922. 2. Increases: On fine-sized single yarns weighing less than 150 deniers, the new proposed rate of 50 per cent ad valorem is a 5 per cent ad valorem increase over the present minimum ad valorem rate for all single rayon yarns irrespective of size. On the plied yarns weighing less than 150 deniers, which are given a 5 per cent ad valorem differential under the proposed law, the aggregate duty amounts to 55 per cent ad valorem, which is a net increase of 10 per cent ad valorem over the present level. On spun rayon yarns in the plied condition, there is an increase of 5 per cent ad valorem over the minimum ad valorem proviso of the present Act. The 10 per cent ad valorem increase on Jacquard-figured woven fabrics in paragraph 1306, and on ribbons and narrow small wares with fast edges under paragraph 1308, brings the duty on these articles in these two paragraphs to 75 per cent ad valorem. This is, in effect, an increase of about 5 per cent ad valorem over the equivalent ad valorem rate in force on such goods under the present act. In paragraph 1307 an increase of 5 per cent ad valorem is given on pile fabrics, including pile ribbons, if partly cut. 3. Unchanged duties: No change was made in the rate of duty on rayon waste, or on the cut rayon filaments, which were formerly classified under paragraph 1459 (now paragraph 1559) at 20 per cent ad valorem. On pile fabrics and articles thereof in paragraph 1307, on knit and crocheted articles in paragraph 1309, on wearing apparel in paragraph 1311, and on the articles in the basket paragraph 1312, the proposed rate of 70 per cent ad valorem is substantially the same as the equivalent ad valorem of the compound rates operative under the present law. The elimination of specific rates in paragraphs 1301 and 1303 operates to make the ad valorem rates, which were substituted therefor, identical with the minimum ad valorem provisos under the present Act on medium size and coarse rayon yarns, single and plied, over 150 deniers in count, and also on single spun rayon yarns. Definition: Paragraph 1313 contains the definition of rayon, to which reference has previously been made, and which is applicable throughout the proposed Act. SCHEDULE 14.-PAPERS AND BOOKS REPORT BY THE SUBCOMMITTEE FREDERICK M. Davenport, Chairman CARL R. CHINDBLOM 1 The paper industry is prosperous. It is a large exporting industry. It employs much skilled labor and pays reasonable wages. Tariff changes required are few, and they relate to certain kinds of paper and certain specialties in production. Due to placing of standard newsprint on the free list and the use of it for a growing variety of purposes other than the manufacture of newspapers, and also because of the fear that the newspapers and others may stretch the term "standard newsprint" beyond the intent of Congress and create a large twilight zone of nondutiable paper, the "book-paper" producers who manufacture all other kinds of paper except newsprint, have wished for a scientific formula in the tariff act, defining newsprint closely and laying a duty upon all other kinds of paper. Such a formula is in substance in use by the Customs Service and may readily be improved upon administratively, and therefore it has seemed to the committee that a stated formula in the act is not necessary. A suggestion was made at the hearings of a definition of "standard newsprint" paper which would limit its nondutiable use to the manufacture of newspapers. The present law is not construed or administered in this limited sense by the Customs Service. Also it appears that much standard newsprint has long been used for purposes other than newspaper manufacture, and neither the debates, the reports, nor the proceedings in connection with the adoption of the free-list provision indicate any definite purpose closely to limit its use to newspaper manufacture. It is important, however, that care should be exercised by the Customs. Service that there be no encroachment upon the intent of Congress with respect to the actual meaning of "standard newsprint" at the time it was placed on the free list. Paragraph 1401 has been changed so as to provide specifically for uncoated book or printing papers. Coated papers, because they have undergone a secondary process and have therefore incurred an additional cost in their production, are especially provided for in paragraph 1405. The rate of duty in the Tariff Act of 1922 remains unaltered. Only one change of importance is made in paragraph 1402. Pulpboard in rolls for the manufacture of wall board has been coming in at a lower rate of duty than pulpboard in other forms. There seems to be no good reason for this and so all users of pulpboard are in this bill put upon the same basis. The line of demarcation between paper and paper board has been raised from nine to twelve one-thousandths of an inch, to conform more nearly to trade usage. In paragraph 1404 a reasonable increase of duty has been granted upon the tissue papers of exceptional thinness. The imports of the very thin tissues, such as condenser paper used in the electrical and radio industries, are giving domestic manufacturers keen competition, and the rapidly increasing use of these papers furnishes a fair field for American enterprise. In paragraph 1405 there are slight increases on the lighter-weight decorative papers and on the simplex decalcomania papers, in line with the curve of importations. The manufacture of simplex decalcomania paper is a relatively new industry in the United States and the paper is produced by few mills. The imports are not large, but are heavy when compared with the output of the few mills which manufacture such paper. In this paragraph occurs under the old Act a real inequality, and the effect of the present tariff duty is to penalize the small competitors of a powerful and prosperous corporation without performing the function for which tariff protection is properly employed. Plain basic paper for photographic purposes is not produced in the United States at all, except by the Eastman Corporation for its own uses. The Eastman sells none to its competitors, and there is no reason why it should. The competitors import from Belgium, France, and |