NOTES ON TARIFF REVISION, 1913.

AN ACT To reduce tariff duties and to provide revenue for the Government, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That on and after the day following the passage of this act, except as otherwise specially provided for in this act, there shall be levied, collected, and paid upon all articles when imported from any foreign country into the United States or into any of its possessions (except the Philippine Islands and the islands of Guam and Tutuila) the rates of duty which are by the schedules and paragraphs of the dutiable list of this section prescribed, namely:

SCHEDULE A-CHEMICALS, OILS, AND PAINTS.

1. Acids: Boracic acid, cent per pound; citric acid, 5 cents per pound; formic acid, 1 cents per pound; gallic acid, 4 cents per pound; lactic acid, 14 cents per pound; oxalic acid, 2 cents per pound; pyrogallic acid, 10 cents per pound; salicylic acid, 2 cents per pound; tannic acid and tannin, 4 cents per pound; tartaric acid, 33 cents per pound; all other acids and acid anhydrides not specially provided for in this section, 15 per centum ad valorem.

397. Acids: Acetic or pyroligneous, arsenic or arsenious, carbolic, chromic, fluoric, hydrofluoric, hydrochloric or muriatic, nitric, phosphoric, phthalic, prussic, silicic, sulphuric or oil of vitriol, and valerianic. [Free].

1909-Paragraphs 1, 482: Acetic or pyroligneous, chromic, and sulphuric acids are transferred to the free list.

Benzoic and picric or nitropicric acids, being dropped from the free list and not mentioned elsewhere, become dutiable at 15 per cent as acids n. s. p. f.

Formic and pyrogallic acids, now dutiable as acids n. s. p. f. at 25 per cent are separately provided for in H. R. 3321 at 13 cents per pound and 10 cents per pound, respectively. Acetic anhydrid is made the subject of a separate paragraph, 2, without change in the rate of duty. A provision for acid anhydrides n. s. p. f. is incorporated in paragraph 1, H. R. 3321, at the duty of 15 per cent. Attention is called to the variance of spelling of the word "anhydrid" in paragraphs 1 and 2.

Benzoic acid, the original source of which was from gum benzoin, is now produced most largely from toluene, a coal-tar derivative, although there are still other sources of it. It is used as a mordant in calico printing and in the manufacture of aniline blue. It is also

used in medicine, the particular variety being that derived from gum benzoin.

Picric or nitropicric acid is formed by action of nitric acid upon carbolic acid and also from the action of nitric acid upon a number of other substances. It is used in dyeing and also in the manufacture of explosives.

Formic acid has many different natural sources of production and is also produced artificially. The acid and its salts are used as preservatives and disinfectants.

Pyrogallic acid, which is obtained chiefly from gallic acid, is used most extensively as a developer in photography. One of its derivatives, gallein, which is much used in calico printing, is produced from pyrogallic acid by the action of phthalic anhydride.

In connection with the reduction of duty on citric acid from the present rate of 7 cents per pound to the new rate of 5 cents, attention is invited to the circumstance that citrate of lime, the raw material from which citric acid is produced, which has heretofore been free, is made dutiable by H. R. 3321 (par. 42) at 1 cent per pound.

In connection with the reduction of duty on tannic acid from the present rate of 35 cents per pound to 4 cents, attention is invited to the circumstance that H. R. 3321 places extract of nutgalls on the free list (par. 627) as a tanning material. Extract of nutgalls is but a solution of tannic acid and water, and with the water evaporated becomes tannic acid.

Referring to the new provision, in paragraph 1 of H. R. 3321, for anhydrides, not specifically provided for, it is interesting to note that the effect of it is to make some substances dutiable which are now admitted free; for example, phthalic anhydride. This article, which is prepared from phthalic acid, is free of duty under the present law by virtue of a decision made in 1900 (T. D. 22664, G. A. 4824). The decision was based upon the ground that phthalic anhydride was commercially known as phthalic acid.

2. Acetic anhydrid, 2 cents per pound.

This article is enumerated in paragraph 1 of the present law at the same rate of duty.

3. Acetone, 1 cent per pound.

This article, which is derived from acetates and other sources, is classified under the present law as a chemical compound at 25 per cent, paragraph 3. It is used in the manufacture of chloroform and synthetic indigo, and is extensively used in chemistry as a solvent. Imports of acetone are not separately reported. Technical acetone is listed at 17 cents and acetone United States Pharmacopoeia standard at 24 cents per pound. These are foreign values.

4. Egg albumen, 3 cents per pound.

This provision has been transferred from Schedule G, paragraph 257, of the present law without change of rate. Blood albumen is made free. (Par. 402).

5. Alkalies, alkaloids, and all chemical and medicinal compounds, preparations, mixtures, and salts, and combinations thereof not specially provided for in this section, 15 per centum ad valorem.

1909-Paragraphs 3, 65: This paragraph segregates from the mass of articles covered by paragraph 3 of the present law all alkalies, alkaloids, and nonalcoholic chemical compounds, mixtures, and salts n. s. p. f. and adds thereto all medicinal compounds, preparations, mixtures, and salts n. s. p. f. The rate of duty on these articles under the present law is 25 per cent. A number of articles which are dutiable under paragraph 3 of the present law and would fall within the terms of paragraph 5, H. R. 3321, have been separately provided for in various paragraphs, and will be discussed in their proper order.

6. Alizarin, natural or synthetic, dry or suspended in water, 10 per centum ad valorem.

This article, which is a coal-tar product, is free of duty under present law, paragraph 487, and has been on the free list since the act of February 8, 1875. The provision for "dyes derived from alizarin or from anthracin" has been dropped altogether, so that these dyes will pay a duty of 30 per cent under paragraph 21, H. R. 3321.

In connection with this imposition of a duty on alizarin at 10 per cent, and of the imposition of a duty of 30 per cent (par. 21) on dyes derived from alizarin or from anthracin, attention is invited to the circumstance that these materials enter very largely into the composition of the colors that are covered by paragraph 64, H. R. 3321, the duty on which has been reduced from the 30 per cent of the present law to 15 per cent. That is to say, under the present law the raw materials for the colors of paragraph 64 are free of duty and the colors are dutiable at 30 per cent. Under H. R. 3321 the raw materials are transferred from the free list and made dutiable, some at 10 per cent and some at 30 per cent, while the rate of duty on the finished colors is reduced from 30 to 15 per cent.

7. Alumina, hydrate of, or refined bauxite; alum, alum cake, patent alum, sulphate of alumina, and aluminous cake, and all other manufactured compounds of alumina, not specially provided for in this section, 15 per centum ad valorem.

1909-Paragraph 4: The classifications of the present law based upon the content of alumina, which is what makes these products valuable, and upon the percentage of iron oxide, which is an impurity, are abolished and the entire paragraph carries an ad valorem duty of 15 per cent.

8. Ammonia, carbonate of, and muriate of, of 1 cent per pound; phosphate of, 1 cent per pound; liquid anhydrous, 24 cents per pound; ammoniacal gas liquor, 10 per centum ad valorem.

1909-Paragraph 5: The separate provision herein for phosphate of ammonia is new, the article being now provided under paragraph 3 as a chemical compound. The provision for ammoniacal gas liquor is likewise new, the article being now classified as an unenumerated manufactured article at 20 per cent.

Phosphate of ammonia is used most largely in sugar refining; also for fireproofing lumber; also as a fertilizer, and in medicine. It is obtained by treating phosphoric acid with ammonia.

Ammoniacal gas liquor is a by-product in the manufacture of illuminating gas and is one of the sources of ammonia.

9. Argols or crude tartar or wine lees crude or partly refined, containing not more than 90 per centum of potassium bitartrate, 5 per centum ad valorem; containing more than 90 per centum of potassium bitartrate, cream of tartar, and Rochelle salts or tartrate of soda and potassa, 2 cents per pound; calcium tartrate crude, 5 per centum ad valorem.

1909 Paragraph 6: The effect of the change in language here is to abolish the distinction between crude argols and those partly refined, but the classification thereof based upon the percentage of potassium bitartrate is retained. There is a new provision for calcium tartrate crude, a by-product in the refining of these argols.

The crude argols or crude tartar or wine lees crude are the raw materials. The rate on them remains the same as it is in the present law-5 per cent-while the rates on the remaining articles in the paragraph, which are the products made from crude argols, are reduced.

10. Balsams: Copaiba, fir or Canada, Peru, tolu, and all other balsams, which are natural and uncompounded and not suitable for the manufacture of perfumery and cosmetics, if in a crude state, not advanced in value or condition by any process or treatment whatever beyond that essential to the proper packing of the balsams and the prevention of decay or deterioration pending manufacture, all the foregoing not specially provided for in this section, 10 per centum ad valorem; if advanced in value or condition by any process or treatment whatever beyond that essential to the proper packing of the balsams and the prevention of decay or deterioration pending manufacture, all the foregoing not specially provided for in this section, 15 per centum ad valorem: Provided, That no article containing alcohol shall be classified for duty under this paragraph.

1909 Paragraphs 20, 559: This is a new paragraph, having for its subject matter balsams, hitherto grouped with a number of other substances of vegetable origin. Under this paragraph balsams in a crude state, free of duty under paragraph 559 of the present law, are made dutiable at 10 per cent, while those which are advanced in value or condition, dutiable under present law, paragraph 20, at cent per pound plus 10 per cent, are charged with a duty of 15 per cent. The paragraph is restricted to balsams which are not suitable for the manufacture of perfumery and cosmetics, those being apparently covered by paragraph 50. Among the balsams affected is storax or styrax, enumerated in paragraph 684 of the act of 1909, free of duty.

These balsams are largely used in the manufacture of medicinal preparations. As a result of the changes made by H. R. 3321 the duty on the finished products, medicinal preparations, is cut from the present rate of 25 to 15 per cent; the crude balsams now free are made dutiable at 10 per cent, and the balsams advanced in value or condition-a sort of intermediate stage between the crude balsams and the finished medicinal preparations-are dutiable at the same rate as the finished articles.

11. Barium, chloride of, cent per pound; dioxide of, 1 cents per pound; carbonate of, precipitated, 15 per centum ad valorem.

This is a new paragraph separately enumerating compounds of barium which are classified under the present law, paragraph 3, as chemical compounds.

Barium chloride of the highest quality is used in medicine. Other barium chloride is used in the preparation of other barium salts and for preventing boiler incrustations and as a rat poison. Barium dioxide is used principally for making solutions of hydrogen pyroxide and also for bleaching purposes. Barium carbonate is used in paper manufacture and also as a rat poison.

12. Blacking of all kinds, polishing powders, and all creams and preparations for cleaning or polishing, not specially provided for in this section, 15 per centum ad valorem: Provided, That no preparations containing alcohol shall be classified for duty under this paragraph.

1909-Paragraph 7: This provision differs from the present law in that it adds thereto polishing powders and broadens the provision for creams and preparations for cleaning and polishing so that they are no longer limited to boots and shoes. Under the present law some polishing powders have been held to be dutiable by similitude, as whiting, at one-fourth cent per pound, paragraph 54, and others as nonenumerated manufactured articles at 20 per cent.

cent per pound.

13. Bleaching powder, or chloride of lime,
1909-Paragraph 8: No change in phraseology.

14. Caffein, $1 per pound; impure tea, tea waste, tea siftings or sweepings, for manufacturing purposes in bond, pursuant to the provisions of the act of May sixteenth, nineteen hundred and eight, 1 cent per pound.

This is a new paragraph. It imposes a duty of $1 a pound on caffein, which is a considerable increase over the rate of 25 per cent under the present law, paragraph 3. It also imposes a duty of 1 cent per pound on tea sweepings for manufacturing purposes which are free under the present law and which are the raw materials for the manufacture of caffein.

15. Calomel, corrosive sublimate, and other mercurial preparations, 15 per centum ad valorem.

1909-Paragraph 65: The word "medicinal" has been omitted from this provision, thus extending it to all mercurial preparations, medicinal or other. Inasmuch as the rate of duty levied, 15 per cent, is the same as that imposed on chemical and medicinal preparations generally, there seems no reason for continuing this provision.

The present rate of duty on these preparations is 25 per cent, and the new rate represents a cut of 57 per cent. Quicksilver (par. 161), of which these preparations are made in major part, is reduced from 7 cents per pound, the equivalent ad valorem of which is 13.50 per cent, to 10 per cent. As there is a duty also on the containers of quicksilver, the rates in H. R. 3321 do not seem to be properly balanced.

16. Chalk, precipitated, suitable for medicinal or toilet purposes; chalk put up in the form of cubes, blocks, sticks, or disks, or otherwise, including tailors', billiard, red, and other manufactures of chalk not specially provided for in this section, 25 per centum ad valorem.