The collapse of exchange rates makes it impossible to apply the ordinary principles of political economy or financial theory to the present situation. When a dollar has to one seller the same value that a 5-cent piece has to another seller, no ordinary form of competition is taking place, and yet this is exactly the position in the case of some European exchanges. Obviously no amount of skill or efficiency on the part of American manufacturers can enable them to reduce costs in this proposition. Consequently, in so far as this form of competition becomes effective, it becomes a direct question for the Government to consider and regulate, for if not regulated it will inevitably cause the closing of American shops and consequent unemployment. This brings us to the labor factor. The longer hours and lower wages sustained by foreign labor is very keenly felt in our industry in the United States. Therefore, as a protection to American labor and a growing and promising American industry that is very vital and necessary to all of the industries mentioned in the first paragraph of this brief, we respectfully petition you to levy and place upon rolls, or bowls, made of or containing as their principal materials or features, cotton, paper, husk, cocoa-fiber or mixtures thereof, and stone rolls, or bowls, of any nature or formation, and intended for use as a part of any machine used in any manufacturing process, such import duties and customs necessary to bring the prices of our foreign competitors up to the level of prices prevailing among American manufacturers for similar goods. The capacities of American plants making these goods are ample to supply the demand. Therefore, no hardship can be wrought upon the users of rolls by curtailing importations. IMPORTANCE OF THE INDUSTRY. The importance of the industry can hardly be over-estimated, as these rolls are an absolutely essential part of machines and equipment of the above-mentioned industries. The roll-making industry has slowly developed for the past fifty or more years, but has been given greatly accelerated development during the past six years through war conditions shutting out foreign competition. Also, each year brings new uses for these rolls and sees their application to new industries. For instance, the two largest American manufacturers of photographic papers have within a very few years installed their own finishing plants, which work was formerly done in Germany and Belgium. The principal American manufacturers of these rolls are B. F. Perkins & Son (Inc.), Holyoke, Mass.; H. W. Butterworth & Son, Philadelphia, Pa.; Textile Finishing Machinery Co., Providence, R. I.; Holyoke Machine Co., Holyoke, Mass.; Rice, Barton & Fales Machine & Iron Co., Worcester, Mass.; John Waldron Co., New Brunswick, N. J.; Appleton Machine Co., Appleton, Wis.; John J. Cavagnaro, Harrison, N. J. There are a few other producers, but they are small and their production very limited. We wish to make special mention of stone rolls and explain that they have been in common use in European paper mills for many years past, but American paper makers are only beginning to realize the advantages gained by their use, which accounts for the comparatively few in use in the United States at present, but the demand is increasing fast, and promises a good future to domestic manufacturers if properly protected by suitable customs duties. COMPARISON OF COSTS. It is impossible for us to give here a comparison of bare factory costs, because such figures, except those of our own corporation, are not available, but the following table will show some of the selling prices of one of the best-known German concerns as compared with the lowest prices we are able to quote to date. In computing the German price the value of the mark is taken at 0.0142 cent, which is quoted on to-day's exchange. The original quotation is on file in our office, and is available to the Committee on Ways and Means at their pleasure. A true copy of this letter, sworn to before a notary public, is attached to this brief. The names of the addressor and addressee and the date of the communication are omitted from the copy, but will be furnished upon application. While prices on paper and cotton rolls only are given above, the prices on husk combination mixtures or cocoa-fiber rolls would be in direct proportion. In further substantiation of our petition, we give the following comparison of prices on stone rolls. Bona fide copy of quotation of a British agent for a Belgian manufacturer is attached herewith. The original quotation is on file in our office and is available to the Committee on Ways and Means at their pleasure. A true copy of this letter, sworn to before a notary public, is attached to this brief. The names of the addressor and addressee and the date of the communication are omitted from the copy but will be furnished upon application. As a further comparison, we give here a table showing the importer's price as compared with the cost to use of the stonework alone without the expensive forgings and machine work required upon which to build the roll and without any factory burden. The stonework is a raw material to us and is furnished by the quarries in a more or less unfinished state. The prevailing wages at the quarries is $1 per hour for skilled labor, and the unskilled work involved is rather of a negligible quantity. In our own shops we are paying 65 cents to $1 per hour for skilled labor and from 46 cents to 63 cents for unskilled labor. Of course, very little unskilled work enters into the construction of these rolls. There is little need of rehearsing here the much-talked-of labor situation, except to say that this company, like most other concerns, is not inclined to tamper with the problem, and hesitates to make any attempt to cut wages. Furthermore, any reasonable cut that we would put into effect would not permit us to compete with foreign prices. Furthermore, the machinery required for roll making is very heavy and expensive and not suitable for any other industries, and our equipment and machines are in the nature of single-purpose tools. (Copy.) P. W. BIDWELL, General Manager. GERMANY, November, 1920. Terms: Goods delivered at our works, packing extra. Payment: One-half with the order, balance on advice of goods being ready to be forwarded. Time of delivery: Paper bowls, about 6 weeks; cotton bowls, about 8 weeks. Paper bowls, made of best woolen paper, free from foreign substances, with strong forged steel centers and wrought-iron side disks; the bowls pressed in our powerful hydraulic presses, with eight of which our workshop is fitted, and one alone giving a pressure of 4,000 tons: 12 inches diameter by 42 inches wide (310 mm. by 1,067 mm.) each_‒‒‒‒‒ 12 inches diameter by 46 inches wide (310 mm. by 1,169 mm.) each_--- 12 inches diameter by 57 inches wide (310 mm. by 1,448 mm.) each. 13 inches diameter by 46 inches wide (335 mm. by 1,169 mm.) each_ Approximate weight: Net, 430 kilos=84 hundredweight. Gross, 500 kilos=94 hundredweight. Marks. 7,700 8,200 9, 600 10, 900 13 inches diameter by 57 inches wide (335 mm. by 1,448 mm.) each______ 13, 000 Approximate weight: Net, 510 kilos-10 hundredweight. Gross, 600 kilos=11 hundredweight. Cotton bowls, made of best Egyptian cotton, otherwise as above: 16 inches diameter by 50 inches wide (410 mm. by 1,270 mm.) each Approximate weight: Net, 630 kilos=1243 hundredweight. Gross, 750 kilos-14 hundredweight. 21, 000 16 inches diameter by 72 inches wide (410 mm. by 1,829 mm.) each...‒‒‒‒‒ 28, 600 Approximate weight: Net, 840 kilos=16 hundredweight. Gross, 1,000 kilos=19 hundredweight. 18 inches diameter by 50 inches wide (460 mm. by 1,270 mm.) each. Approximate weight: Net, 790 kilos-15 hundredweight. Gross, 950 kilos-18 hundredweight. 26, 100 18 inches diameter by 84 inches wide (460 m. m. by 2,134 m. m.), each__ 39, 600 Approximate weight: Net, 1,200 kilos=23} hundredweight. Gross, 1,440 kilos-28 hundredweight. 20 inches diameter by 36 inches wide (508 m. m. by 915 m. m.), each_--- 24.000 Approximate weight: Net 750 kilos=143 hundredweight. Gross 900 kilos=17 hundredweight. 20 inches diameter by 48 inches wide (408 m. m. by 1,220 m. m.), each_-_-29.200 Approximate weight: Net 910 kilos-18 hundredweight. Gross 1,100 kilos-21 hundredweight. 20 inches diameter by 60 inches wide (508 m. m. by 1,524 m. m.), each 34.450 Approximate weight: Net 1,060 kilos=21 hundredweight. Gross 1,270 kilos=25 hundredweight. Above prices raised by an additional 10 per cent will be considered fixed prices, not liable to any further rise. GENTLEMEN: We thank you for your kind inquiry of October 1, which has only just reached us. We have immediately cabled you as follows in reply: "Stone press rolls 15 by 50, $384; 18 by 72, $596; 20 by 100, $924 each; ex-Antwerp packing 4 per cent extra cash against documents; dispatch in 3 months." From this you will see that we shall be pleased to supply you with crystalline stone wet press rolls in the sizes you require at the following prices : 15 inches diameter by 50 inches on face, at $384 each. These prices are understood ex-Antwerp, packing 4 per cent extra, terms net cash against shipping documents. We have pleasure in inclosing herewith a leaflet descriptive of these rolls, of which there are well over 1,000 at work in all paper making countries, including a considerable number in the United States of America and Canada. You will thus see that we have a very wide experience in the construction of these rolls and in the selection of the exact grade of stone necessary to give the best results. Our rolls not only entirely obviate the sticking at the presses, but they also give no trouble in running. The stone does not chip, crack, or powder, the surface remains true for an indefinite period of time, in fact, there are many rolls running which have been at work for seven or eight years without being touched. The shaft is fitted to the roll in such a way that it is impossible for it to loosen, whichever way the roll is rotated, nor will the stone crack if the bearings are accidentally allowed to run hot. We could dispatch rolls in the sizes you require in about three months from receipt of order. You may rest assured that your valued orders will receive every care and attention at our hands, and we are looking forward to hearing from you further in this matter. Any further information you may desire is willingly at your disposal. As the mail is going very shortly, we propose to reply to your inquiry regarding calendars by next mail, and trust that this will be convenient to you. [Copy.] MILFORD, MASS., January 7, 1921. GENTLEMEN: In accordance with your verbal request, we are sending you our proposals for the three rolls, which we hope you will find satisfactory. In regard to our prices in relation to foreign competition, it is impossible for us under present conditions, of course, to compete with cheap foreign labor, which enters into both the production of the stock and also into the fabrication of the rolls after the stock is quarried. You can readily see that with stock which we use for these rolls standing us from $3.75 to $7 per cubic foot at the cutting shed and with all the labor entering into the rolls from that point until completion, which is on a $1 per hour minimum basis, that the final cost is bound to be high. The lowest rate of wages that we pay in the quarries at the present time is $6 per eight-hour day. The amount of unskilled labor which enters into the production of granite is, of course, very small and in normal times would make very little difference in the cost of the completed roll. The indirect cost, of course, at the present time is probably higher than it will be when things are adjusted to normal, as you are well aware that coal or electric power at the present time is very high, that the price of steel is also, with what reductions have been made, very much above normal, and the majority of supplies which we use in our line of work depend upon high-priced labor in the production, and consequently we do not look for much advantage to accrue in the matter of supplies until labor takes a decided drop. Of course, you are well aware that freight rates are bound to be high, and we do not see any possibility of their being reduced with the condition of the majority of railroads being as it is. We trust with the above explanation that you will realize that our prices for press rolls are bound to be high and above foreign rolls unless some protection is given to the industry, which practically began with the entering into war of these foreign countries, which had been able, on account of low labor cost, to send rolls to this country. THE MILFORD PINK-VICTORIA WHITE GRANITE CO. [Copy.] MILFORD, MASS., January 7, 1921. GENTLEMEN: Complying with your verbal request of January 6, we propose to furnish you the following as per specifications: One press roll 15 inches in diameter, 50 inches long, for the sum of $350, f. o. b. cars Stony Creek, Conn. Roll to be turned, bored, and ironwork affixed according to your latest model without bolts, you to furnish this ironwork together with suitable box for reshipment of roll when completed, freight prepaid to Stony Creek. Confirming our wire of even date as follows: "15-inch roll, $350; 18-inch, $480; 20-inch, $650," for the sum of $350 f. o. b. Stony Creek, Conn., delivered with the following conditions: That this proposal is subject to acceptance within 30 days from date. Terms of payment: From date of invoice 3 per cent discount in 15 days, net cash 30 days, or 60 days trade acceptance. Performance of this proposal is contingent upon strikes, fires, accidents, and other causes beyond our control. It shall be understood and agreed that the articles herein described become the property of the purchaser on delivery as above specified and at his risk in transit, and that no claims for damage or excess charges will be allowed. All claims for errors or defects must be made within five days from receipt of goods. Date of such claims to be determined by date of receipted freight bill. THE MILFORD PINK VICTORIA WHITE GRANITE Co. [Copy.] MILFORD, MASS., January 7, 1921. GENTLEMEN: Complying with your verbal request of January 6, we propose to furnish you the following as per specifications: One press roll 18 inches in diameter, 72 inches long, for the sum of $480, f. o. b. cars Stony Creek, Conn. Roll to be turned, bored, and ironwork affixed according to your latest model without bolts, you to furnish this ironwork, together with suitable box for reshipment of roll when completed, freight prepaid to Stony Creek. Confirming our wire of even date as follows: "15-inch roll, $350; 18-inch, $480; 20-inch, $650," for the sum of $650 f. o. b. cars Stony Creek, Conn., delivered with the following conditions: That this proposal is subject to acceptance within 30 days from date. Terms of payment: From date of invoice 3 per cent discount in 15 days, net cash 30 days, or 60 days trade acceptance. Performance of this proposal is contingent upon strikes, fires, accidents, and other causes beyond our control. It shall be understood and agreed that the articles herein described become the property of the purchaser on delivery as above specified and at his risk in transit, and that no claims for damage or excess charges will be allowed. All claims for errors or defects mst be made within five days from receipt of goods. Date of such claims to be determined by date of receipted freight bill. THE MILFORD PINK-VICTORIA WHITE GRANITE Co. [Copy.] MILFORD, MASS., January 7, 1921. GENTLEMEN: Complying with your verbal request of January 6, we propose to furnish you the following as per specifications: One press roll 20-inch diameter, 100 inches long, for the sum of $650, f. o. b. cars Stony Creek, Conn. Roll to be turned, bored, and ironwork affixed according to your latest model without bolts, you to furnish this ironwork together with suitable box for reshipment of roll when completed, freight prepaid to Stony Creek. Confirming our wire of even date as follows: "15-inch roll, $350; 18-inch, $480; 20-inch, $650;" for the sum $650 f. o. b. cars Stony Creek Conn., delivered with the following conditions: That this proposal is subject to acceptance within 30 days from date. Terms of payment: From date of invoice 3 per cent discount in 15 days, net cash 30 days, or 60 days' trade acceptance. Performance of this proposal is contingent upon strikes, fires, accidents, and other causes beyond our control. It shall be understood and agreed that the articles herein described become the property of the purchaser on delivery as above specified and at his risk in transit, and that no claims for damage or excess charges will be allowed. All claims for errors or defects must be made within five days from receipt of goods. Date of such claims to be determined by date of receipted freight bills. THE MILFORD PINK-VICTORIA WHITE GRANITE Co. |