The Washington herald., 1921-03-24
lIUllVUM USERS I
AND PRODUCER IN
'BATTIEON TARIFF
Emerica's Sole Fabricator
Wants 2-Gent Rate In
creased to 2 Cents.
Is UP TO CONGRESS
Manufacturers Fear to Be
Placed at Complete Mercy
Of Monopoly.

be staged in Congress when the
work of framing new tariff legis-
iztion Is undertaken win be be-
tween the Aluminium Company of
America. sole producer OF aluminium
in the United States. and manufac-
turing interests which use alumni
mum as basic raw material in their
Industries.
The existing tariff on imported
aluminium IL . cents a pound. The
Aluminium Company Of America.
which has a monopoly In the alum
inum production field on this con-
tinent. Is seeking to have the alum
mum tariff rate increased to cents
a pound
Manufacturers who purchase their
raw material from the Aluminium
Company of America. as well as in
, dustrfes who purchase the finished
product from the manufacturers.
are urging that the raw material
either be placed on the free list or
that the existing tariff rate of .
cents a pound be left undisturbed-
Essential Product.
Aluminium now enters SO largely
household utensils. and of ANTONIO
biles. that most people in this coun-
try are acquainted with its appear
ance and uses, but few probably are
aware that the United States now
PRODUCES fully one-half of the world
supply of this valuable metal and
that one American company has
monopoly of the nations output.
This organization, the Aluminium
Company of America. according to
figures recently submitted to the
House Committee on Ways and
Means. has increased its Investments
out of earnings within the last seven
years. and under the present low
rate OF tariff duties. to the extent
OF over $4,000 900, or nearly 900 per
cent - -,.ie
Present Earnings sufncfent. Claim.
These great earnings are cited by
manufacturers as conclusive proof
that a higher tariff on aluminium is
not necessary to protect the Ameri-
.fsn producer of this basic metal and
the contention further is made that
a higher tariff would place the man
ufacturer and the ultimate con-
sumer at the complete mercy of the
producing monopoly.
Several elements. including the
makers of automobiles, have Joined
to block the efforts Of the Alumi- ;,
mum Company Of America to IN
crease the existing tariff. but the
principal advocate Of an open mar
ket is the National Aluminun
Founders Association. This or
gsnization is composed of indepehd-
emily owned and operated aluminium
Arfa In h. Uni
resenting an investment of approxi--
mately s9.00o,o00 and employing be-
tween 5000 and 10000 operatives
Founders Opposed to One Source.
The founders protest against be-
ing limited to one source of sup
ply for raw material. as they MAN
tain would be the case should a
high tariff wall be thrown around
the single producer of raw alumi-
mum in this country. These fnda-
pendent founders draw attention to
the fact that they. unlike the ~
nopolistic producer of the metal.
are engaged in sharp competition
within the country not only among
themselves. but against subsidiary
concerns controlled and operated by
the mon opols which produces the
metal. 81
The statement of the independent
founders Is corroborated by the
United States Tariff Commission,
which, in a recent report. surveyed
the aluminium industry in great de-
tail.
When II is realized that the Alu
minum Company Of America" says
this report. lis the sole producer In
the United states and supplies over
one-half of the worlds consumption,
and that. through its subsidiary
companies, II mines and purifies
its bauxite. reduces 1t to metal, is
the largest manufacturer Of semi
finished shapes, and large manu-
facturer of finished products. It Is
evident that the quotations on the
aluminium ingot are those Of this
one corporation and do no. repre-
sent market conditions governed
solely by the law Of supply ana ce-
mand-"
The independent founders remind
the tariff trainers that they must
compete for business in the Ameri-
can market. and unless Snev can
sell their castings and wares To
the consumer at reasonable prices
there IL a possibility that the con-
sumers will look for another metal
and go into iron. Some Of the
|makers Of cheaper grades OF auto
lpobiles already have done this. 1t
Is asserted.