UNITED STATES[TARIFF COMMISSION WASHINGTON INFORMATION CONCERNING The Magnesite Industry PRINTED FOR USE OF COMMITTEE ON WAYS AND MEANS HOUSE OF REPRESENTATIVES WASHINGTON GOVERNMENT PRINTING OFFICE 1919 UNITED STATES TARIFF COMMISSION WASHINGTON INFORMATION CONCERNING The Magnesite Industry PRINTED FOR USE OF COMMITTEE ON WAYS AND MEANS HOUSE OF REPRESENTATIVES WASHINGTON GOVERNMENT PRINTING OFFICE 1919 UNITED STATES TARIFF COMMISSION. Office : 1322 New York Avenue, Washington. D. C. COMMISSIONERS. F. W. TAUSSIG, Chairman. THOMAS WALKER PAGE, Vice Chairman. DAVID J. LEWIS. WILLIAM KENT. WILLIAM S. CULBERTSON. EDWARD P. COSTIGAN. WILLIAM M. STEUART, Secretary. LETTER OF TRANSMITTAL. UNITED STATES TARIFF COMMISSION, Washington, June 11, 1919. The Committee on Ways and Means of the House of Representatives: I have the honor to transmit herewith, in accordance with your request, information compiled by the United States Tariff Commis- sion on magnesite, crude and calcined. Very respectfully, THOMAS WALKER PAGE, Acting Chairman. CONTENTS. Page. Introduction 7 Summary of the domestic situation 7 Market grades and uses 8 Substitutes 9 Tariff classifications 10 Domestic production 10 Domestic resources and localities of production 10 Industrial development 11 Domestic consumption 13 Sources of domestic supply 13 Domestic cost of production 13 Foreign production 14 Foreign resources and countries of largest production 15 Austria-Hungary 15 Greece 16 Canada 16 Mexico 17 Venezuela 17 Competitive conditions 17 Dependence on transportation 17 Quality of product 18 Imports 19 Countries of origin 19 Quantities 20 Revenue 20 Prices .' 21 Tariff history 22 Court and Treasury decisions .*. 22 Bibliography 23 Producers in 1918 and character of product 23 5 THE MAGNESITE INDUSTRY. INTRODUCTION. Magnesite is a natural carbonate of magnesium. When pure it contains 52.4 per cent carbon dioxide (CO 2 ) and 47.6 per cent mag- nesia (magnesium oxide MgO). It is harder and header than lime- stone which it most nearly resembles. Two markedly different natural varieties are distinguished, crystalline and massive. The massive is a ohalk-wnite, compact, fine-grained variety usually found in veins or masses in serpentine rocks, while the crystalline is blue, red, and gray, medium or coarse grained, and occurs only as masses in altered limestone. The only important crystalline deposits are found in Austria-Hungary (Styria), Quebec, and Washington. Massive magnesite is widely distributed. Magnesitc when calcined forms a highly refractory material which has no thoroughly satisfactory substitute in the open-hearth process for making steel. About 82 per cent of the domestic consumption is used in refractories, 15 per cent in the plastic trade, and the remainder is required in minor uses in chemical industries and medicines. SUMMARY OF THE DOMESTIC SITUATION. The United States is the largest consumer of magnesite in the world. Its consumption in 1913 was 50 per cent of the total output of the world. Before the war, fully 90 per cent of the domestic supply was imported. Austria-Hungary furnished the bulk of the material required by the steel industry, while Grecian deposits sup- plied most of the requirements for other purposes. The only do- mestic production was in California, where it was consumed locally. With the outbreak of the war, supplies from Austria were at once cut off and, after 1916, those from Greece were greatly curtailed. At the same time the domestic requirements increased greatly. In 1917, the domestic consumption was over 355,000 tons, valued at more than $3,700,000. Nearly 90 per cent of the supply was of do- mestic origin. A great new industry was developed in Washington while the existing industry in California was greatly expanded. Simi- larly fostered by the restriction of ocean shipment, a magnesite in- dustry sprang up in Quebec and, in spite of the inferior quality of the product, was a strong competitor of the western magnesite be- cause of its relative cheapness at the eastern steel furnaces. The chief handicap of the domestic magnesite producer is the long railroad haul from the mines to eastern markets, where it is chiefly consumed. Domestic reserves are ample, especiallv in Washington, 8 THE MAGNESITE INDUSTRY. where more than 7,000,000 short tons are indicated or in sight, and they have been actively exploited by two or three strong companies and several small operators. The American magnesite is purer than the Austrian material, which, by virtue of its content of a small amount of iron in just the proper amount, is better suited by nature for use in the steel industry. The early difficulties encountered in the use of domestic material, however, have been quite satisfactorily overcome. The lack of the desired amount of iron in Washington magnesite is made up by adding iron synthetically. With the return of normal shipping conditions, the American mag- nesite industrj" faces the prospect of a serious relapse almost to the prewar level. Recently developed deposits in Venezuela may be expected to furnish some material to the eastern markets in com- petition with that from Greece and Canada, but Austrian magnesite will dominate the market if delivered at anything like prewar prices, which were as low at the Atlantic seaboard, practically the point of consumption, as quotations of the domestic product on the Pacific coast. Under these conditions, the domestic output would be restricted to the markets west of the Mississippi where the consump- tion is comparatively small. The precise location of the definitive line is dependent upon the balance of ocean freight from foreign countries and domestic rail tariffs from the Pacific coast, but the advantage lies with the foreign producer, due to the concentration of the steel industry in Pennsylvania, Illinois, and neighboring localities. Summary table. Calendar year. Domestic produc- tion (short tons). Imports f or con- sumption (short tons). 1 Domestic exports. Ratio of imports to domestic produc- tion, (percent) Value (imports for consumption). 1 Amount of duty. Value per unit of quan- tity.z 1910 12,443 323, 654 None... 2,610 $1,542,800.00 Free... $6.25 1911 9,375 257, 124 .do 2,740 1,185,867.00 ...do 5.86 1912 10 512 268 408 do . 2,550 1,369 665.00 do... 5.83 1913 9 032 347, 426 do... 4,020 1,757,476.00 .do.... 6.40 1914 11,293 2.56,987 .do.... 2,280 1,377,871.00 ...do 4.10 1915 30 499 102 913 do 337 487,211.00 .do... 5.12 1916 154,974 93,885 ...do 61 838,630.00 ...do 8.42 1917 316, &38 38, 208 . .do.... 12 464,706.00 ...do 7.66 1918 225 000 41 148 do 18 927,255.00 19.60 1 Quantity of imports of calcined have been doubled (assuming a 50 per cent loss in weight because of the calcining operation) and added to quantity of crude.. Values of calcined simply added to those of crude n this table. 2 Based on imports of crude only. MARKET GRADES AND USES. Magnesite is marketed either (1) crude or (2) calcined. Crude magnesite is the material as mined except that it may be sorted or undergo a simple cleaning operation to remove admixed rock waste. A very small use of the crude material is as a substitute for barite in paint manufacture. Some is made into magnesium salts; but practically all the product is calcined; yielding, according to the temperature, either caustic or clead-burnecl magnesia. () Caustic maqnesia (moderate temperatures) in which most of the Carbon dioxide is driven off, but from 3 to 8 per cent is inten- THE MAGNESITE INDUSTKY. 9 tionally loft in the residue. In this form the residual magnesia reacts readily with water and carbon dioxide in the air (compare quicklime) and readily combines with various acids for the manu- facture of salts. Mixed with magnesium chloride (which may be made from magnosite and muriatic acid, but which is generally derived as a by-product in salt manufacture), caustic magnesia is made into Sorel (" oxy chloride ") cement. This mixture, generally modified by the addition of various filler materials (wood-flour, cork, talc, silica, asbestos, clay, marble dust, sand, etc.) together with suitable coloring matter is sold under various trade names. It is one of the best floorings. The use of magnesite cement in floors and as stucco and wall or outside plaster is gaining importance. It sets much quicker than Portland cement and has the peculiar advantage of great resiliency. As the determining factor in ordi- nary floors is the deflection under load, the large deflections possible with this material permit lighter and cheaper building frame con- struction. Calcined magnesia is also used in making magnesium bisulphite for disintegrating wood pulp in paper making. (6) Dead-burned magnesia (heated to incipient fusion) in which the last traces of carbon dioxide have been removed and the material heated to the point of incipient fusion. In this state, it will not slake or combine with chemicals. It is largely used for basic open- hearth steel furnaces, converters, and kilns for sulphuric acid (pyrites) burning, and in electric furnaces. Dead-burned magnesia comes in the form of brick and grains. (c) Carbon dioxide may be saved, but only when caustic product is to be made. The character of the calcination for the production of dead-burned magnesite is not suited to the recovery of gas. (d) Metallic magnesium, magnesium oxide and sails are rarely made from magnesite. In most cases a supply of by-product magnesium chloride is more cheaply available and the use of magnesite for these purposes is exceptional. Magnesia for chemical and medicinal use as well as pipe covering material, light carbonate and other products come in this class. SUBSTITUTES. 1 High magnesian dolomite is a material that has proved to be a fairly satisfactory substitute for magnesite in many classes of metal- lurgical work. It is much cheaper and far more widely distributed, but is not so refractory. Slight changes (high lime slags) in furnace processes are often necessary in using this material. Locally, sor 7 pentino rocks are possible sources of magnesium and its compounds while magnesium salts are by-products of the common salt and potash salt industries. Bauxite is another basic refractory material and may take the place of magnesite in certain classes of metallurgi- cal work. Patented products consisting of dolomite treated with furnace dust and roasted -"kendymag," "syndolag," and "magni- brent" have come into more or less satisfactory use at steel plants. 1 In 1913, 178,530 tons of calcined magnesite were consumed in the United States; in 1917, 177,524. For the large increase in steel made in 1917 over 1913, the difference was largely made up by use of dolomite. 12889519 2 10 THE MAGNESITE INDUSTRY. TARIFF CLASSIFICATIONS. Both causticjanddead-burned magnesite are included as "calcined" not purified and are classed with crude magnesite under paragraph 539 on the free list (act of 1913). Similar materials are magnesite brick (par. 71) which comes under other refractories and differs from dead-burned magnesite only in having been molded into definite forms subsequent to calcination. In the chemical schedule (par. 42) "magnesia: Calcined, and car- bonate of, precipitated" are listed as dutiable, while conceivably these products accord closely in chemical composition with calcined and crude magnesite. The intent of the act is clear in that they are (generally purer) products produced by chemical processes from magnesium salts, especially those from Stassfurt, Germany. DOMESTIC PRODUCTION. The maximum|domestic production of magnesite was in 1917 when the total output amounted to 316,838 short tons and was valued at $2,899,818 at the mines. The 1918 production was on a somewhat reduced scale due to competition from Canada, and a more general use of substitutes (notably burnt dolomite in some of the eastern metallurgical plants and even in the paper trade). Magnesite has been produced in the United States since 1891. Prior to the outbreak of the European war, California was the only producing State. The total output, averaging less than 10,000 tons, was consumed locally, chiefly in the manufacture of paper. In 1913 and 1914 a small amount was taken by makers of stucco and Sorel cement, especially for use in the buildings of the Panama Pacific Exposition. The first magnesite produced in the State of Washington was 715 tons mined in December, 1916. In 1917 the State yielded 105,000 tons and the estimated production for 1918 indicates that this State will' show a larger output than California. Production in United States. 1 [From Mineral Resources, U. S. Geological Surrey .1 Quantity | (short tons). : Value. Quantity (short tons). Value. 1900 2,252 j S19, 333 1913. . . 9,632 $77, 056 1904 2,850 1 9,298 i 1914 11,293 124,223 1909 9, 4fi.5 37, 860 1915 30,499 274,491 1910 12,^43 74, 658 1916 154,97! 1,393,693 1911 9,375 75,000 ! 1917 316, 83S 2,899,818 1912 10 512 81,096 1 1918 2 225,000 i 1 Prior to December, 1916, California was the only producing State. 2 Estimated. DOMESTIC RESOURCES AND LOCALITIES OF PRODUCTION. Magnesite occurs in commercial quantities in California, Nevada, and Washington. Reports of workable deposits in other States have not been verified. THE MAGXESITE INDUSTKY. 11 Domestic production by Stolen. [From Mineral Resources, U. S. Geological Survey.] MAGNESITE, CRUDE OR CALCINED, NOT PURIFIED.i 18 16 18 17 States. Quantity (short tons). Value. Quantity (short tons). Value. California . . . 154 259 $1 388 331 211 603 $2 116 f,30 Washington 715 5, 302 105, 175 783,188 Total 154, 974 1,393,693 316,838 2, 899, 818 ! Prior to 1916 California was the only producer. California. 1 Magnesite deposits occur in numerous localities throughout the Coast Range and on the west slope of the Sierras, from Mendocino and Placer Counties on the north to Riverside County on the south. In nine counties the deposits are large \vhile in four counties only small deposits have been found. In 1917, 63 per cent of the crude magnesite produced in the State came from Tulare County. The rest of the production came from widely separated deposits. With one exception (Bissell, Kern County) all the California magnesite deposits occur as irregular veins, lenses, masses, or stock work in serpentine rock. In a few places the veins or masses are 20 feet or more in width but more generally the veins are narrow and separate lenses are irregularly disposed. Washington. 2 Deposits of crystalline magnesite have been found in several sections in the northeastern part of Washington (Stevens County) about 60 miles north of Spokane. The Washington magne- site differs markedly in character from the California material and is found in large masses. The larger deposits are 200 or more feet thick and 1,000 or more feet long. Estimates of 1,000,000 tons, each within 100 feet of the surface, are reasonable for at least three of the deposits. Most of the Washington magnesite is colored, generally rather dark, and its grade must be determined by chemical analysis, as it can not be judged by its appearance. 3 It is considered better for refractory purposes than the California grade, but the latter is pre- ferred for building purposes. A plant for making magnesite brick was built in Washington in 1917. INDUSTRIAL DEVELOPMENT. At the outbreak of the war the California industry was established quite firmly on the basis of medium-scale production and simple marketing systems, largely contractual. Since the freight rate on calcined magnesite is the same as that on crude and the product weighs only about one-half as much, practically all the ore was calcined at the mine. Various types of kilns were in operation. 1 For further description see Bull. 355, Mapnesite Deposits of California, F. I.. Hess 191S; Bull. 540-s. Late Developments of Mapnesiie Deposits in California, by II. S. Gale; and recent chapters of Mineral Resources, t". S. Geological Survey. 2 A description of mau'nesitc deposits in Washington was published in the Kng. and Min. Jour., Apr. 13, 1918: also in Mineral Resources (1J17), U. S. Geolosri'-al Survey. 8 Letter from H. F. Wiorum (Aux. File) states "Washington caustic" cream-white. 12 THE MAGNESITE INDTJSTEY. Most of them were of the vertical type, similar to those used for making quicklime inexpensive to build, but rather wasteful of fuel. Crude oil was used at many plants, but in the more isolated sections wood was cheaper. The character of the California deposits was such that extensive installation of equipment was not warranted. Single mines rarely remained in steady operation for any great length of time and no very large reserves were proved in advance of mining. At the end of 1913 there was only one producing company; in the whole year only three companies had operated. Early in 1914, however, several old mines were reopened and a few new producers came in. The only large producer at any time before the war was the Tulare Mining Co., and almost its entire product was contracted for by the Crown Willamette Paper Co. Only a few hundred tons surplus came on the open market. This was sold to grinders in San Francisco, who retailed it to consumers. The more or less sporadic output of the smaller organizations none of whom could have guaranteed an output of 500 tons a month came on the market almost wholly in granular form ('' caustic") and in bulk. War stimulation of the industry came in the latter part of 1914. It affected the larger properties first, but soon there was a rapid development of new producers. Mines, 20 miles from the railroad, that had never been commercially considered, were opened up and contributed to the output. One producer installed one and later another large rotary kiln similar to those employed for cement burning and improved its equipment generally. Broadly speaking, however, the California industry responded to the increased demand for its product by multiplying the number of producers 16 of whom reported production in 1915 1 rather than by greatly expand- ing individual operations. In Washington, however, the somewhat greater inaccessibility of the deposits and their much greater indicated extent offered more attractions to large capital than to individual operations. The larg- est producer in the field is the Northwest Magnesite Co., which claims to have expended about $1,000,000 on equipment and devel- oping work. Only four companies, but two of which are now (1918-19) operat- ing, took part in the development of the Washington industry. The extraordinary progress made in the first two years of operation is ample evidence of their enterprise and financial strength. A large part of the work done by these companies was purely development. The deposits are several miles from a railroad and the early opera- tions involved hauling by wagon and motor truck. A year after opening their major deposits the largest producer completed a 5-mile aerial tram from the quarry to its new calcining plant, where three rotary cement kilns, 125 feet long by 7^ feet diameter, are installed. Both quarrying and calcining operations are fully equipped with modern machinery and labor-saving devices. The management is evidently able and aggressive, and backed by ample capital. The latest development is the addition of iron ore, in correct proportions, at the calcining plant for the production of "ferromagnesite," of similar composition to the Austrian material, and that is claimed to be quite as satisfactory as the Aust.ian product for refractory purposes. Sixtv-fivc in 1917. THE MAGNESITE INDUSTRY. 13 DOMESTIC CONSUMPTION. The consumption of magnesite shows a marked increase, and there is promise of a still further development in the next few years. In 1917 the apparent consumption, expressed as crude, was over 355,000 short tons, or about 25 per cent more than the consumption just before the war. The United States is the largest consumer of mag- nesite, and in 1913 its requirements amounted to over 65 percent of the total world consumption, if 500,000 tons * is considered as the world output for 1913. This quantity includes only exports from Austria-Hungary, and it is presumed that Germany, the second larg- est steel producer, must have used 150,000 to 200,000 tons of magne- site, and that the world's output was nearer 700,000 tons. If this is true, the United States used about 50 per cent of the world's pro- duction of magnesite. A recent estimate of the character of the consumption is that 82 per cent is used, as refractory, 15 per cent in the plastic trac'e, and 3 per cent for chemical and medicinal purposes. The open-hearth steel industry is the most important factor in the magnesite situation. "While this industry is not wholly dependent on magnesite supplies, it is largely so. Ihe partial substitution of dolomite, however, has come to stay and the amount of magnesite consumed per ton of basic open-hearth steel, which formerly was 6 to 14 pounds (dead burned), has lately been cut almost in half. The total amount used by the steel industry has not decreased on account of the much greater output of basic open-hearth steel. The use of magnesite in building trades has also increased to a marked extent. SOURCES OF DOMESTIC SUPPLY. Over 90 per cent of the domestic supply of magnesite before the war was imported. The preponderant supply and practically all that used in steel manufacture was derived from Austria-Hungary. No other foreign sources of large supply of a satisfactory quality of material existed. The Grecian deposits furnished only "caustic" for use in plastic grades and in the manufacture of chemicals and heat-insulating material. In 1917, however, the proportions were reversed and over 90 per cent of the domestic supply came from American deposits. The tendency in 1918, however, was toward largely increased importa- tions of Canadian material. If there had been no restrictions on ocean shipments of this material (in the interest of ship saving), there would also have been large importations fiom Venezuela. DOMESTIC COSTS OF PRODUCTION. 2 Crude. At present in the State of California, magnesite of superior quality can not be delivered f. o. b. railroad point for less than $8 a ton and allow any margin of profit to the operator. Average cost of mining is $5 a ton, delivery costs $1, and when royalties, overhead and general expense, equipment, etc., are considered, the margin of profit is low at the above figure. Washington crude is offered f. o. b. railroad cars, 1919, at 84.50 per ton. 1 Private communication from I". S. Geological Survey.. 2 About September, 191$. 14 THE MAGNESITE INDUSTET. Calcined. In former years the bulk of shipments from California, have been crude, but now there are a number of up-to-date calcining plants in California that are sending finished product to eastern market. Cost of calcining at present price of oil and labor was about $4.50, using rotary kilns. In upright or vertical kilns using coke or oil, the cost ranges from $6 to $7 per ton calcined. 1 Sworn statements of domestic costs appear in auxiliary file. Freight. Present transcontinental freight rate on magnesite is the same for crude or calcined material. To Chicago or group D points (roughly all the territory west of the Mississippi and inclusive of the States of Illinois and Indiana) is $10 per ton in carload lots. To Pitts- burgh, Philadelphia, and neighboring territory the rate is $11, 2 while to New York and far eastern points, S12.50. 2 On account of the low value of the material it is probable that freights will be reduced if it shall be found necessary to meet European competition. FOREIGN PRODUCTION. Developed magnesite deposits outside of the United States that have been productive are located in Quebec and British Columbia (Canada); Santa Margarita Island, Lower California; Venezuela; Austria-Hungary; Greece; Norway; Spain; Germany; Russia; Mace- donia ; Transvaal ; and India. Deposits, some of which have produced small amounts, are located in Ontario and New Brunswick, Canada; Cedros Island, Lower California; Asia Minor; Sweden; Rhodesia; Portuguese Wesi Africa; Australia; China; Japan; Tasmania; and New Caledonia. The largest foreign producer has been Austria- Hungary, with Greece second. The production of other countries was of minor importance until the war resulted in cutting off the Austrian supplies from all but the Central Powers. The cutting off of these supplies caused stimulation chiefly in the North American output. There is little reason to expect that there will be any marked shift in the important sources of supply although the relative import- ance of the major producers may undergo considerable readjustment. Magnesite reserves of the world. [Communication from Mineral Resources Division, United States Geological Survey.] Short tons. Austria-Hungary 120, 000, 000 Greece ^. 5, 500, 000 Washington 7, 000, 000 California 750, 000 Venezuela (Margarita Island; 3 3, 200, 000 The indicated reserves of the two American producing States are included for comparison. The reserves in other -countries have not been measured and no even approximately accurate estimate can be made as to the total resources of the world. i Burning $9 to $10 per ton, American Mineral Products Co., cost, 1919 (Washington). >*ew rates, June 25, 1918, $15.60+47 cents per short ton, Spokane to Atlantic points; S13.SO+41 cents to Pittsburgh. 3 Caracristi, Chas. F. Z., Eng. and Mg. Jl., 107 (1919), p. 645. THE MAGNESITE INDUSTRY. 15 FOREIGN RESOURCES AND COUNTRIES OF LARGEST PRODUCTION. 1 The foreign countries that enter into the American magnesite situation are Canada, Austria-Hungary, Greece, Mexico, and Vene- zuela. Small exports have been made from countries other than those named, notably Norway (via Scotland) but they are not of sufficient importance to warrant discussion with reference to the United States. The production of the more important countries are given in the following table : Production in principal foreign countries. 1 [In metric tons.] Austria-Hungary. 2 Greece. India. Spain.* Crude. Calcined. Crude. Calcined. Crude. 1903... 69,058 53, 781 92,359 87, 765 113,695 87,049 125,666 182,911 < 182, 911 171,196 200,947 28,415 9,133 37,063 40,584 55,816 63,079 56, 797 18,073 86,956 106,338 98,517 136, 701 159,981 199,484 838 1,193 1904 1905 2,645 1,861 188 7,655 199 5,264 3,546 15,626 16,468 1,706 7,570 17,924 1,446 1,335 1,954 1906 1907 452 212 1,027 341 77 1908 1909 16,609 19,982 27, 530 33,848 31,815 28, 563 < 28, 563 27, 548 69,837 1910 1911 . . . 1912 1,480 958 583 1,400 1913 . . . 1914 1915 1916 1917 i i 1 Mineral Industry. 2 Exports. 8 Redlich. Fortsche d. Min. 4, pp. 9-42. 1914. Estad. Mineraria de Espana 1912-1915. 8 9,448,817 182,037 | 23,499,789 549, 727 20 THE MAGNESITE INDUSTRY. QUANTITIES. The proportion of magnesite imported raw showed a gradual falling off from more than one-half the weight of the magnesite imported as calcined in 1902 (the first year for which separate sta- tistics are published) to about one-twelfth the weight of calcines imported in the years immediately preceding the war a natural result of established routes and the tendency to ship in the lightest possible form. The amount of calcined magnesite imported in 1914 was nearly 150,000 tons, valued at $1,500,000, or more than five times the quantity imported in 1904. On the other hand, the 11,000 tons of raw magnesite imported in that year was an actual reduction from the annual importation a decade before. When the war first cut off the importation of Austrian calcines, a much larger proportion of raw material was imported, since no other country had sufficient calcining facilities to immediately take care of the sudden demand. Even some of the Grecian magnesite that ordinarily would have been calcined in Europe en route was shipped direct and the imports of raw magnesite from that country greatly increased as also did those from Canada later. In 1917 the importa- tion of crude magnesite was the largest on record, both as regards quantity and value, amounting to nearly 90,000 tons, valued at $750,000, or nearly nine times the amount and sixteen times the value of the 1914 imports. In the fiscal year the imports of calcine reached their minimum less than 5,000 tons, valued at only -$182,000, or less than one-thirtieth of the amount and about one-eighth the value of the 1914 imports. In 1918 the import restrictions of the United States Shipping Board cut down the amount of crude magne- site imported to one-tenth that imported in the previous year. Increased rail and lake boat shipments from Canada which had meanwhile increased its calcining capacity to keep up with the sudden increase in its mine output resulted in more than doubling the importation of calcined material. REVENUE. Since magnesite has always been on the free list, the Government has never gained any revenue from its importation. The imports for consumption since 1907 are as follows: Imports for consumption. MAGNESITE, CRUDE. Fiscal years. Rates of duty. Quantities (pounds). Values. T-, ,. Value 3- SSB- 1907 Free 44 648 557 $156, 722. 00 $0.004 1908 do 42, 722, 846 141, 992. 00 .003 1909 do 20 725 355 39 558.00 .002 1910 .. do 34, 175, 514 108, fi23. 25 .003 1911 do 37,951.190 127,344.00 i .003 1912 do . 29,415,095 88, 482. 00 i .003 1913 do 33,654 260 111,271). 00 ... .003 1914 1915 do . . do .... 21, 590, 605 37, 463, .509 46,611.00 80, 625. 00 .002 .002 1916 do 101 591,459 281,620.00 . 003 1917 do . . 179, 292, 638 748,951.00 .004 1918 do 18 532 767 104, 947. 00 .006 THE MAGNESITE INDUSTRY. Imports for consumption Continued. MAGNESITE, CALCINED, NOT PURIFIED. Fiscal years. Rates of duty. Quantities (pounds). Values. Duties collected. Value per unit of quantity. 1907... 1908 Free ...do... 143,891,572 140, 860, 775 $098, 715. 45 700, 088. 00 $0.005 .004 1909 do 186,901,370 871,383.80 .005 1910 do 225, 895, 904 1,020,982.00 .005 1911 ...do 290, 225, 507 1,302,120.00 .005 1912 . do.. . 204,997,478 990,241.00 .005 1913 ...do... 345,322,155 1,731,443.00 .005 1914 ...do 288, 989, 577 1,485,273.00 .005 1915 do 125, 893, 407 751,706.00 .000 191f> ...do 32, 372, 010 282, 708. 00 .009 1917 do 9,448,817 182,037.00 .019 1918 . do... 22,704,029 535, 202. 00 .024 PRICES. The price statistics for magnesite are somewhat complicated because of the variety of grades and methods of packing. Except for Austrian dead-burned material, the different products have not been well standardized and statistics for successive years are not comparative. Magnesite "raw" and "calcined" are the only two classes quoted in trade journals with any degree of regularity. But these quotations are nominal and rarely reflect even major fluctuations. Before the war, the lowest prices for dead-burned Austrian magne- site were $15.72 f. o. b. docks at Philadelphia, SI 5.60 f. o. b. New York, and $15.20 f. o. b. New Orleans. These figures represent the practical minimum prices that had been reached in 15 years. In rough figures the average price of calcined magnesite along the Atlantic seaboard was $16.25 per net ton. An approximately average freight rate from Atlantic points to Chicago was $2.40 a ton, yet the lowest f. o. b. Chicago price quoted for the material in 1914 was $26 per short ton. The minimum prewar price of raw magnesite was $8 per net ton or the Atlantic seaboard and was usually quoted higher. Material (Grecian) calcined for medicinal and otner uses ranged from $20 to $25 per ton according to its purity and the care that had been exer- cised in sorting. Fine ground calcined brought up to $35 and $40. Little information can be gained by a study of the import valuations except that they bear out the fact that shipments from Europe, except from the producing countries are of material especially ground and packed. Magnesite from the United Kingdom has the highest valuation ($49.40 per ton in 1914), while the Austrian material is valued at $9 to $10 and the Grecian imports were generally valued at slightly over $10. The only quotations for the domestic product before the war were in California. In general they did not differ greatly from the quota- tions for imported magnesite in the East. In the early years of the war, San Francisco became the dominant market. Quotations rose from $22 to $25 per ton for crude calcines in sacks and $40 to $55 for the ground product in paper lined barrels. 22 THE MAGNESITE INDUSTRY. Prices of magnetite, 1913. [Wholesale, per short ton.] NEW YORK MARKET. Gresian, Euboean, calcined "caustic," fine ground Cin paper-lined barrels) $25. 00 to $35.00 Grecian, E ubosan, calcined "caustic," not ground (in sacks) 17. 50 to 20. 00 Grecian, Euhnean, crude (hulk) 7. 00 to 8.00 Austrian, calcined, dead-burned, crushed or fine ground (bulk) 16. 15 to 16. 25 PACIFIC COAST MARKETS (SAN FRANCISCO OR LOS ANGELES). Domestic, calcined, "caustic," fine ground fin paper-lined barrels) $30. 00 to ?35. 00 Domestic, calcined, not ground, dead-burned (in sacks) 20. 00 to 25. 00 Norwegian, calcined , dead-burned, crushed or fine ground 22. 50 TARIFF HISTORY. Magnesite, both crude and calcined, has been free since 1883. tariff history may be tabulated as follows: The Act of Para- graph. Tariff classification or description. Rates of duty, specific and ad valorem. 1883 620 Magnesitc or native mineral carbonate of magnesia Free 1890. .. 640 do Do. 1894 513 do Do. 1897. i 605 Magnesite, crude or calcined not purified Do 1909 618 do. Do. 1913 539 do Do. 1 As passed by the House of Representatives the provision read: " Magnesite, or native mineral carbonate of magnesia, all not medicinal." The change to the wording as enacted was made in the Senate. COURT AND TREASURY DECISIONS. In a decision in 1876, ground magnesite, or native carbonate of magnesia, composed of magnesia 47.6 and carbonic acid 52.4, was classified as carbonate of magnesia, although differing in some respects from the more common article known by that name. (Dept. Order, T. D. 2875.) Calcined magnesite, declared to have all the characteristic prop- erties of cement and to be used as a mortar in cementing magnesite bricks, was classified as cement under the act of 1883. (T. D. 9375.) An importation described as "calcined magnesite, or magnesite which has been reduced to pulverization by heat and then ground," and chiefly used as a cement for lining furnaces, was held not within the provision in the act of 1894 for "magnesite, or native mineral carbonate of magnesia," nor gypsum ground or calcined, but dutiable as cement other than Roman, rortland, or hydraulic. (G. A. 3370, T. D. 16851.) A similar importation was classified as cement by the customs officers under the act of 1897, but the Board of General Appraisers held it exempt from duty as "magnesite, crude or calcined, not purified," a broader provision than that in the former law. (G. A. 5003, T. D. 23316.) THE MAGNESITE INDUSTRY. 23 BIBLIOGRAPHY. Mineral Industry. Mineral Resources: United States Geological Survey. Political and Commercial Control of the Mineral Resources of the World. No. 3. Confidential Report on Magnesite. Also contains a good bibliography. Commerce and Navigation. Engineering and Mining Journal. Mining and Scientific Press. Canadian Mining Journal. Magnesite in 1917. Reports and Data collected by F. B. Hyder for Northwest Magnesite Co. (B. L. Thane). Copy in U. S. Tariff Commission file. PRODUCERS IN 1918 AND CHARACTER OF PRODUCT. CALIFORNIA: Piedra Magnesite Co., Fresno (calcined). J. H. Plattner, Livermore (crude). Sinclair Bros. & Ferguson, Piedra (calcined). Bay Cities Water Co., Coyote (crude). Western Magnesite Development Co., 519 California Street, San Francisco (crude and calcined). Gustine Magnesite Co., Ingomar (crude). Red Mountain Magnesite Co., Marine Building, San Francisco (crude and cal- cined). Standard Magnesite Co. of California, 244 California Street, San Francisco (crude). E. Duryee, 1205 Hollingsworth Building, Los Angeles (crude). H. T. Had en, Dinuba (crude). Oakland Magnesite Co., Realty Syndicate Building, Oakland (crude). Harker Magnesite Co., Guerneville (calcined). Fred Leigh ton, Cloverdale (crude). Nichelini & McKenzie, Chiles (crude). J. D. Hoff Asbestos Co., Monadnock Building, San Francisco (calcined). R. Schiffman, Pasadena (crude). C. G. Gphlin, St. Helena (crude). Hugo Fischl, Hollister (crude). H. Sherlock, Madrone (crude). The following were believed to be operating at the end of 1918: Frank R. Sweasy (White Rock mine), Humboldt Bank Building, San Francisco (crude and calcined). Wellman-Lewis, 901 Hibernian Building, Los Angeles (crude and calcined). Sonoma Magnesite Co., Humboldt Bank Building, San Francisco (crude and calcined). Tulare Mining Co., 310 Sansome Street, San Francisco (crude and calcined). Porterville Magnesite Co. of California, Porterville (crude and calcined). WASHINGTON: American Mineral Production Co., 622 Insurance Exchange Building, Chicago, 111. Northwest Magnesite Co., Hutton Building, Spokane. (Both these companies are operating February, 1919 and produce both crude and calcined). o A 001 274 556