G. F, Doriot, Harvard Graduate School of Business tration, and Elvin H. Killheffer, SOCMA
Adminispresident
Stewart Cïrajf, new secreta.ry of SOCMA9 conferring with Eric C. fCuns, Givaud€in-ÎPdatvanna, Inc., vice president
Chemical Manufacturers Warned of New Attack on Tariff A S T A F F REPORT JL HE a n n u a l meeting of the Synthetic Organic Chemical Manufacturers Association in N e w York City, D e c . 8, was warned t h a t new efforts would be made a t the coming session of Congress to wipe out basic tariff protection under which the chemical industry in this country was able t o develop since World W a r I. A bill will undoubtedly be introduced to abolish section 402 of t h e 1930 Tariff Act which applies almost entirely t o coal-tar products, said John G. Lerch, counsel for t h e association, but is actually the subsection which establishes the American selling price as a basis for the assessment of ad valorem duties on foreign chemicals. Much capital will be m a d e of the fact t h a t this was a pledge m a d e in the course of negotiations with 18 other nations and t h a t it h a d great weight in securing trade concessions for the United States, the speaker stated. " W h e n you contact members of Congress on a question of tariff," he added, " i t will alarm you to find t h a t our present Congress h a s little s t o m a c h for protection a n d u n d e r s t a n d s practically nothing of the method or details of h o w i t is accomplished." " T h e International T r a d e Organization bill will also be submitted t o this Congress for approval. All t h a t I h a v e said is p a r t and parcel of one g r a n d international scheme fostered by our Government to surrender our sovereignty or control over exports a n d imports t o a committee of t h e United Nations. I can suggest b u t one way t o p r e v e n t its accomplishment and t h a t is b y defeat of these two bills. This can only be done by an intensive effort to educate t h e Congress of their effect on our economy a n d our century-and-a-half tariff policy." Specific tariff disputes in which t h e S O C M A is interested were discussed. One involves imported vitamin capsules containing heptuna a n d darthronol and which were held dutiable at 7 cents per pound a n d 4 5 % a d valorem. T h e importer claimed, however, t h a t they were
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dutiable as drugs at a rate of 2 5 % , and the case is still pending. T h e importation of a product called sapamine K W C also is a matter of dispute as t o proper duties u n d e r the law. I t was contended t h a t in the manufacture of sapamine the materials used included 5 3 % stearic acid, from beef tallow, a n d a certain q u a n t i t y of a n additional raateriaj which could not be disclosed. A s nearly as t h e SOCMA representatives could ascertain, t h e starting material was aniline or one of its homologs, combined with a fatty acid. I t was also sulfonated so that the sulfonation took place on the benzene ring. Still another case involves a product described as dimethyllaurophenorie, m a d e from xylene by t r e a t m e n t with lauric acid chloride. Involved in the dispute is the specific d u t y on xylene and all products which are either similar to it or which are obtained, derived, o r manufactured from the coal-tar chemical. A question of the proper appraisal of β-naphthol arose with the appraiser of merchandise at New York. As it is in limited supply, the question arose as t o the existence of an American selling price under t h e law. After argument and pres entation of evidence of domestic t r a n s actions, the imports were appraised on the basis of the American selling price. Referring to the I T O charter drafted a t the recent H a v a n a Conference of Nations, E. H. Killheffer of thé Ε. Ι. du P o n t de Nemours & Co., the as sociation president, indi cated that a SOCMA committee would present for action next m o n t h a reso lution proposing a stand
o n the I T O charter by t h e association. The world-wide conflict between the principles of freedom and those of statism a n d socialism, with the United States sacri fice of the former and concessions t o and acceptance of the latter, is imbedded in the I T O charter, Dr. Killheffer asserted. The association head said t h a t a t the recent meeting of the National Association of [Manufacturers in New York, the former Assistant Secretary of State a n d Ambassa d o r Spruille Braden had emphasized this dangerous fact as present in t h e activities of international agencies. Dr. Killheffer announced a t t h e business meeting t h a t S. Stewart Graff had been appointed secretary of the association t o succeed Charles A. Mace, who has been secretary of the S O C M A since about 1926. M r . Mace in the meantime will serve as consultant to t h e association. A gradu a t e of Massachusetts Institute of Tech nology, the former secretary worked in both European and American chemical plants before taking u p his duties with the SOCMA. Mr. Graff is a graduate of Harvard Law School, and was formerly associated with t h e law firm of Brown, Cross, and Hamilton, New York. The speaker a t the association's annual dinner was Georges F. Doriot, professor of Industrial M a n a g e m e n t and Manufactur ing, H a r v a r d Graduate School of Business Administration.
August Mer ζ of Ameri can Cyanamid Co., who was made an Jionorary member of the SOCMA board of governors; T. W. Delahanty, Office of International Trade; and Β. Μ. Van Cleve, Sher win-Williams Co»
51»»DECEMBER
2 0,
1948
3751
