The New York herald., 1922-07-10
HOT TINE PROMISED
TO ASBESTOS TRUST
Senate Debate to Show Tariff
Rates Would Mean Many
Millions Profit.
1T ALREADY FLOURISHES
Now Able to Sell Product
Abroad Much Cheaper
Than in America.

Than in America.
Special Dispotch to THE NEW folK HERALD.
New York Herald Bureau.
Washington, ID. c., July 8.
As a sample of the tremendous SUBJ
sides granted to special interests In the
Fordney McCumber tariK bill the case
Of the asbestos industry will be brought
to the attention Of the public within
the next few days In the Senate debate.
Under the rates proposed tho so-called
asbestos trust will be able to Increase
its tariff profits by many million dollars
year. although with the present duties
the industry has fourished remarkably
and Is able to compete with rival man
ufacturers the world over at prices
much lower than those In force In Amer
lea.
The growing use Of asbestos In Amer
lean every day life makes the matter
OF tariff duties vital to virtually every
one. Asbestos Is coming into use more
and more for roofing. particularly for
small houses. for pipe coverings and for
many other purposes.
Tile amount OF protection received by
the asbestos manufacturers In 1919 un-
der the Underwood tariff law was $4.-
100000. which cost consumers at retail
not less than Ss,000.o00. Against this
IS. 100000 tho Government collected in
revenue only $50. 900 In 1919. and $780,
900 In 1920. being $1.35 for each 500
that consumers were made liable for un-
der the tariff.
The Fordney- McCumber bill proposes
to eliminate these petty Government re-
ceipts by such imports and increase the
tax on the consumer by raising the
prices from this $s.o0O.0o0 to a little less
than double that amount. but not less
than $12.000.000 At present the tariff
rates on asbestos average l7.S per cent.
and tariff experts estimate the rates in
the Fordney- -McCumber bill will bring
this average to 30 per cent.
Growth of Industry.
The production Of asbestos in the
United States is dominated by one con-
cern. Johns Manville. which, with a cap
itai of $2.500,0 900 and total assets appli-
cable to stock IN 1910 of $4.10s,21
after making ample dividends annually.
increased this net value to $21.167,635,
In the ten years ended with 1890. The
competitors of this concern are similarly
prosperous but are few and relatively
small. .ts.
The asbestos industry in this country
has grown since 1883 from a capitalize
tion of few hundred thousand dollars
and employing not more than 100 men.
to the industry Of to-day. with capital
and surplus of between $4,000, 900 and
$75.000,000 and employing in normal
times more than $4,000 men, with a
yearly business turnover of 500, 900, 900.
The imports for consumption In the
United States have averaged about $225,-
900 since 1910, while our domestic ex-
ports increased from $2a3.000 in 1910 to
s4,443.000 In 1920. In the normal pre-
war year Of 1914 the exports amounted
to 24.4 per cent. Of the production and
in 1920 the exports amounted to 1875
per cent Of the production. Under the
Underwood tariff the imports have been
only IL per cent. Of the consumption in
1919 and 2.5 per cent. In 1920.
Asbestos as crude material comes
largely from Canada and is on the free
list. It is figured by the opponents Of
the rate proposed that so per cent. of
tho cost of producing manufactured as
whatever protection is allowed is Just
twice what appears on the surface. The
cost Of crude asbestos is the same the
world over.
For 80 Per Cent. Duty.
I'm the foce of these facts" Senator
Simmons IN. CO., said to-day. 'the Sem
ate Finance Committee proposes a 80
per cent. duty on total cost against a
total wage cost Of 1871 per cent. for the
conversion Of the raw material into the
finished product.
Practically the only foreign manu-
facturers Who have sold any consider
able quantity OF asbestos products In
the United States arc those in England
and Germany. The methods Of manu-
facture In the United States and Eng
land are nearly the same. but American
the output of each operator Is greater in
this country.
British manufacturers express the
opinion that they cannot compete with
NJ manufacturers In the United States un-
der the present rates of duty, but may
sell certain products in the United
States provided domestic manufacturers
maintain prices at levels which bear no
relation to cost Of production. British
prices are from two and a half to three
times higher than they were before the
war"
The situation with the rates on as.
b. stos. opponents of the Fordney-Mc-
bill insist. will be round in many |
other items in the BILL and/ one by one
they will be brought out Ii the debate
John r. Adams, chairman Of the Re-
publican National Committee, issued a |
statement tonight defending the tariff |
bill.
THE complete resumption Of pros
perity is halted" he said. while tariff |
measure fulnlling Republican pledges Is |
delayed by a Democratic hlibuster IN |
The Senate which violates the principle |
public opinion"
TACNA-ARICA DISPUTE