Mr. CHANDLER. I move to strike out lines 7 and 8 of section7, on page 25, and in lieu of them to insert: On old metalscrap iron, 4 dollars perton. On old wrought scrapiron, 8 dollars per ton. I am satisfied that there is a misapprehension on the part of the ComFinance and its chairman in regard to this subject. The Senfrom Maine, in his remarks the other day, said: “Then theother iron manufacturers said this is not to be considered at all, with reference to the price of iron; in reality the pig iron that is imported oes not come in competition with any of our iron that we manufacture.The pig imported is the soft Scotchpig metal that is not to be found in try, this counis not made in this country, it does not come into competition; but so far as we are concernedwe would just as lief you should put the pig metal down to 3 dollars if you choose, but that was put up for the purpose of particular reason. revenueand was kept up for that “Under these circumstances, with that object, it thought best was to P; old scrap iron at what they said was enough, and that is 3 dollars per top on descriptions. They said another thing, that tbhoetrhe are a great many rolling mills established on the Atlantic border, in NewYork and Massachusettsand ome in Maine I believe one or perhapstwo. They have to bring their iron to the mills and pay freight on it, whereasthe manufacturers of iron in jo vania and other placeshave their iron and their coal at their door. They came to the conclusion, and they said that was the foundation of theresolution of the Iron and Steel Association sent to us, that it was no more than fair that it should come in at rate, the same that it is put sufficientlyguardedby the proviso we in. That old iron has to be remanufactured.” I think the chairman of the ComFinance would never have made that argument if he had really understood the workings of the proposition. I hold in my hand a letter addressed to the Senfrom NewJersey by a gentleman largely interested in the manufacture of iron, which I will read: OFFICE HUNTINGpox AND BROADTop MoUNTAIN RAILRoad CoMPANY., PHILADELPHIA, January 28, 1867. Dr.An Sir: Excuse mefor calling your attention to the low duty in the tariff bill now beforethe Senate own rosucgrhatpscirroanp, 3 dollars per ton on cast and This will be disastrous to the manufacture of pig iron, in which this State and NewJersey have a largeinterest. Cast scrapshouldnot pay a lessduty than 6 dollars per ton and wrought scrap from 9 to 12 dollars. The rail mills are the greatbuyers of pig iron now, but under this bill theywould import English scrap nearly entirely for their mills. Iloping that you will seethe necessity of protectin the great Pennsylvania interests, iron and coal, remain Yours truly, o L. T. WATTSON, President. Hon. A. G. CATTELL. It is not true as was stated by the Senfrom Maine, he is mistaken as to the fact, that the iron and coal are together even in Pennsylvania. The State of Pennsylvania takes about 300,000 tons of Lake Superior ore to mix with her inferior ore, and transports it by water some 7 or 800 miles and afterward by land carriage, a very expensive carriage, from 50 to 300 miles. This ore is mixed with the Pennsylvania ores and transported there a long distance at a very great expense. Today the great demand for pig iron is for rolling. It costs the manufacturers a ton of scrap iron to take the ore and the coal from the mine: calling the material nothing it costs today 60 dollars a ton every cent of which is labor to make a ton of scrap iron. To make a ton of pig costs just about half as thuch. Pig iron has gone through one process; it has been put into the blast furnace and gone through one process; but, before it is fit for rolling it has to be puddled and go through another process yet more expensive than manufacturing it into pig. After this 2nd process, which actually costs on an average throughout the U.S. today 60 dollars per ton in labor, counting the material nothing, you propose to give a protection of 3 dollars or 5%. 5%. on scrap. There is another way of manufacturing this iron, and that is by what is called blooming it. That has to be done with charcoal, which is a very expensive fuel; and while it makes the best iron, it goes through but one single process and comes out in the form of blooms, and then is ready for the rollers; and that costs even more than this other double measure which costs 60 dollars. The wrought iron, the Senator says, has to go through a process of manufacture, and that he thinks is a suf. ficient protection. Now, what is that process of manufacture through which wrought scrap iron has to go? They take little boxes holding what is called a bloom, heat an oven to the requisite degree, shove these boxes of bloom into that oven until they have reached not a white heat but a welding heat; they are then brought out and put under the trip ham mer, and are ready for the jiao. In other words, I can take wrought scrap, and in 1/2 hour, and without scarcely any expense, prepare it for the rollers, for they are not obliged even to use fuel in this preparation where the blast furnace is in operation, for they use the heated gas from the blast furnace to heat the oven, and the labor is scarcely, anything. In other words, this wrought iron is just prepared for the rolling mills with no expense save the heating of the iron to the requisite extent to enable it to pass through the rollers. It, in point of fact, is worth 28 dollars a ton for rolling mill purposes more than pig metal, for you have to put the pig metal through the puddling process, which costs 28 dollars a ton to put it in the same shape and form which the wrought scrap is in when it is landed upon your shores. I do not think it possible that the ComFinance could have understood the operation of their amendment on this point, or they never would have offered it. The Senfrom Maine says that this is a very small item, that only 14,000 tons were imported last year. The reason why only 14,000 tons were imported last year was because we had a duty that kept it out. It was profitable to import 14,000 tons last year at a duty of 8 dollars a ton; but if you reduce it to 3 dollars the result will be to make this country the grand receptacle of all the scrap iron in the world. Now, sir, look at the figures and see whether this is an insignificant matter. There are in the world today 100,000 miles of railroad, of which 36,000 miles are in the U.S and 64,000 miles in the rest of the world. These railroads are laid, on an average, with rails weighing 56 pounds to the yard, and use 49,000 tons net to the mile. The 64,000 miles of railroad abroad have consumed 3, 136,000 tons or 6, 272,000,000 of pounds of iron. This has to be rerolled on an average once in ten years; consequently there is one 10th of that amount of scrap iron let loose upon some country every year. That would give the amount of railroad scrap alone at 313, 600 tons per annum or 6, 272,000 pounds, which you propose to admit at a duty of 3 dollars a ton, and which costs today to put it in the form of scrap iron 60 dollars a ton in the U.S. Sir, this is free trade in the broadest sense; and it is worse than that. I call the attention of the Senfrom Maine to the fact that if you admit this vast amount of scrap iron at a low duty you will receive no duties on iron except what you receive on the scrap; nothing but scrap will be imported. This is gotten up by the rolling mills for their special benefit, and the ComFinance have been fooled I beg leave to be respectful; I will not use so strong a word; I will say deceived by these rolling mill men. It is the most judicious andingenious thing I have ever seen in my life for the interests of the rolling mills. I have been told that there was a combination formed of some 6 or 8, or perhaps more, rolling mills on the Atlantic coast to have free trade so far as their interests were concerned; and the Senators from Massachusetts during the last week have been Pressing you to carry out the views of this combination in regard to coal. They propose to bring coal into Massachusetts from the British Provinces at a nom inal duty. That has been voted down, and I hope this scrap part of the committee's bill will be too, for it is part of the same scheme. Both propositions together bring in foreign coal and foreign iron almost free; and for the benefit of whom? Of the rolling mills, and to the sac rifice of your revenue and to the sacrifice of every other iron interest in the U.S. Look for a moment at this bill, for the Senfrom Maine admits that the committee changed it at the request of the rolling mills. They had agreed on 8 dollars a ton, just what I propose to place it at, which is not enough but at the request of these highly pat riotic rolling mill men they made the change. Now let us see what the effect of that change is.