combed, twisted, bleached, and yarn in colors to one-third of a cent per pound per number instead of having rate as now given apply to both carded and other qualities of yarn, which is an unjust discrimination against the higher cost yarns.

Our worst fears have been more than realized. The Wilson-Gorman tariff was enacted August, 1894, and went into operation, so far as the above schedule was concerned, upon its passage, and its effects were at once apparent.

The imports of cotton yarns, which during the year 1894 amounted to 747,838 pounds, valued at $326,324, increased in 1895 to 1,784,854 pounds, valued at $658,702, and for the present year, 1896, the imports of cotton yarns have reached the enormous total of 2,431,855 pounds, valued at $872,067.

It is of importance to call the attention of your honorable committee to the fact that during the present year, while the importation of cotton yarns has greatly increased, the ills represented by our association have been compelled to shut down considerable part of the time, and our employees as well as ourselves have suffered heavily in consequence.

Upon examination of the importations of cotton yarns we find from the report of the United States consul at Manchester, England, that during the six months ending June 30, 1896, there were exported from that one port alone over 500,000 pounds of fine cotton yarns, exclusive of 292,372 pounds in the form of rovings to be spun into the finest yarns used in this country.

Upon analyzing above report we find the exports of the principal counts were as follows:

The above figures demonstrate without further argument that the Wilson Gorman act, with its ad valorem provisos, does not protect the spinners of fine yarns in this country.

We therefore respectfully request that the present schedule be adopted with the provisos stricken out and with the addition thereto of the clause referring to other cotton manufacturers, including rovings, etc.

COTTON ROVING.

The above article, not having been specifically mentioned in the present cotton-yarn schedule, has been imported in large quantities, not upon its value, but as ordinary yarn of No. 20's and under. As a No. 20's roving, after undergoing the comparatively simple operation of spinning, becomes a No. 100's yarn, this is not only a serious menace to the American laborer and manufacturer alike, but results indirectly in this Government being deprived of a large part of its legitimate revenue. This, if permitted to continue, as at present, would prove disastrous to the finecotton industry of this country, and the unintentional oversight in the present schedule should be promptly remedied by a specified duty of not less than 40 per cent ad valorem as recommended in our proposed amendment.

THE COTTON YARN SPINNER'S ASSOCIATION.
ARNOLD B. SANFORD,

The CHAIRMAN. You have in your written statement covered the difficulties in the existing tariff, making suggestions, and giving the reasons therefor?

Mr. SANFORD. Yes, sir.

The CHAIRMAN. What are the difficulties in the existing tariff in reference to yarns?

Mr. SANFORD. The principle of the Wilson-Gorman act is all right— that is, specific duties-but the riders attached to the bill have simply made it an ad valorem tariff, so it is impossible for us to do any business in

The CHAIRMAN. In regard to undervaluations?

Mr. SANFORD. Undervaluations. There are no yarns imported now at the rate of over 40 cents per pound; that is brought in at 25 and 40 so as to get it in at 8 and 15 cents duty; so it makes this bill inoperative for the fine cotton-spinning industry.

The CHAIRMAN. So there is a temptation for undervaluation where it can be done?

Mr. SANFORD. Yes, sir.

The CHAIRMAN. Do you make any suggestions as to the change of numbers in that statement?

Mr. SANFORD. Yes, sir; we have simply gone over that matter in this way. We are willing to accept of the present schedule with the provisos eliminated; that is, stricken out.

The CHAIRMAN. The two provisos are what you complain of?

Mr. SANFORD. Yes, sir; and we would say, furthermore, we have had two years' experience under this Wilson-Gorman act, and we know what we have asked for is just as little as we can get along with. We have tried to be moderate in our request.

The CHAIRMAN. Do you mean to say if the two provisos of paragraph 250 were eliminated that the paragraph then would be satisfactory as to yarns?

Mr. SANFORD. The schedule itself would be satisfactory.

The CHAIRMAN. Your complaint is that the provisos practically make the duties ad valorem and permit extensive undervaluations?

Mr. SANFORD. Yes, sir; and I would say, Mr. Chairman, at the time when this act was adopted that we, as spinners, saw the danger and made an appeal to Senator Aldrich saying, that if that measure was adopted the fine-spinning industry of this country would be practically blotted out, and if these provisos were to remain in the bill we could not do business, and our experience has demonstrated that we were right. We have lost the fine-spinning industry entirely; that belongs to our foreign competitors.

The CHAIRMAN. The two provisos read:

That in no case shall the duty levied exceed eight cents per pound on yarns valued at not exceeding twenty-five cents per pound, nor exceed fifteen cents per pound on yarns valued at over twenty-five cents per pound and not exceeding forty cents per pound: And provided further, That on all yarns valued at more than forty cents per pound there shall be levied, collected, and paid a duty of forty-five per centum ad valorem.

Do I understand you to say that makes that paragraph an ad valorem duty all through?

Mr. SANFORD. Yes, sir.

The CHAIRMAN. Although it purports to make them specific?

Mr. SANFORD. These provisos make the entire bill strictly an ad valorem bill, and there is one evil which has crept in it I wish to speak of. As an association we have had to be on the defensive for the last two years, and a very serious evil has crept in. After finding they could not bring in the finer numbers, such as they would like to, they have been importing cotton roving and it has taken the place of the yarn. They put that in the spinning frame and spin fine numbers out of it; that is, No. 20 hank roving

The CHAIRMAN. And it is worked to your detriment as a manufacturer and has deprived the Government of revenue?

Mr. SANFORD. Yes, it has deprived the Government of a large amount of revenue. That you will find clearly set forth in this statement,

Mr. Chairman.

The CHAIRMAN. Are the coarse numbers of yarns imported to any material extent?

Mr. SANFORD. No, sir; not to a great extent.

The CHAIRMAN. At what number does the importation begin?

Mr. SANFORD. In fine spinning we take about 50's. Up to No. 50 we have been able to do business, but beyond that we have lost the market entirely and there have been some very fine mills built in the last five years purposely for the fine spinning industry.

The CHAIRMAN. That is because the finer yarns involve so much larger proportion of labor?

Mr. SANFORD. Yes, sir; and very costly machinery, too. These mills have had to be set back to making the coarse yarns, and they are not fitted up for it at all.

The CHAIRMAN. That has driven the mills from fine yarns to coarse yarns?

Mr. SANFORD. Yes, sir; making a strong competition for the market in the coarse yarn business, too.

Mr. PAYNE. I see there are no provisos in paragraphs 251 and 252; are those satisfactory!

Mr. SANFORD. Just read that, please.

Mr. PAYNE. "Paragraph 251. Spool thread cotton, containing on each spool".

Mr. SANFORD. In regard to that question, I say we do not have anything to do with thread. We confine ourselves to cotton yarns.

Mr. PAYNE. You confine yourself to yarns under paragraph 250? Mr. SANFORD. Yes, sir. The cotton thread people will take up that question.

Mr. PAYNE. I see the importations were very small for 1895 as compared with 1893.

Mr. SANFORD. That was thread, I think.

Mr. PAYNE. What do you say in regard to the importation under that paragraph for 1896?

Mr. SANFORD. We would say, in answer to that question, that the importation of cotton yarns for the year 1896-if you would like to have the statistics we have them right here.

Mr. PAYNE. Have you those statistics in your statement which you wish to submit?

Mr. SANFORD. Yes, sir. They are compiled from 1894 to 1896, inclusive.

Mr. WHEELER. Will you explain why it has fallen off so greatly? This statement shows that in 1893 the imports were 92,000 and in 1895 9,000 pounds.

What number is that?

Mr. SANFORD. That does not apply to us. Mr. WHEELER. This is the 25 cents per pound. Mr. SANFORD. I think you have got some wrong statistics there. I can not understand that. I would just like to say here that in the year 1894 the importation of cotton yarns was 747,838 pounds; in 1895, 1,784,854 pounds, and in 1896 the imports of cotton yarn reached a total of 2,431,855 pounds.

Mr. WHEELER. That is of all kinds; but here is a schedule of one of the grades.

Mr. SANFORD. I could not explain that. I do not know what number of yarn is referred to.

Mr. PAYNE. The classification is entirely different in 1894 from what it was in 1890.

The CHAIRMAN. That arises from the fact that in the fiscal year 1895 we were three months under the tariff of 1890 and nine months under the tariff of 1893.

Mr. SANFORD. The increase in yarns was simply enormous in 1896, and then again you must not forget the values are nearly 25 per cent lower than the year previous. Here is the amount of 2,431,855 pounds with a value of $872,000 in 1896, and during that time our mills were shut down part of the time waiting for business and our employees were out on the streets. We give in this table the importations for six months in 1896, giving the numbers of yarn imported.

The CHAIRMAN. We have the same thing here.

Mr. WHEELER. I would like to ask one question. In Mr. Blaine's cotton goods report of the world, which, of course, you have read, the statement is made there that all coarse cotton goods can be made cheaper in America than anywhere else. Is that your experience?

Mr. SANFORD. I should think they could be made just about as cheap-say the coarse grades from 10 to 20-can be made in the South as cheap as anywhere else, but not as cheap in our section of the country. The labor is very much higher per day with us. They have longer hours in the South than we do, and it does not require the skill in that coarse work that we put in the finer work. These men have been devoting their attention for a good many years to the building up on the finer grades. You take a coarse fabric and it does not require a great deal of skill to put it together. It is simply the prod uct thrown together. We have put a great deal of capital in these fine mills.

Mr. MCMILLIN. Have you any statistics concerning the exportation of cotton not in bale form?

Mr. SANFORD. That would come more particularly under cloth. There is no yarn exported, not to any extent. There have been some attempts, for we have had inquiries from commission men asking what we thought of trying to export a few yarns to Turkey or South America, but we found it was impossible to do any business in those sections; that is, the competition was a little too severe for us. That may come around, but it has not come yet. But you take piece-woven goods, and they are sent over in quite large quantities. This information you would get from the cloth manufacturers.

Mr. MCMILLIN. Is there any loss in the processes of preparing cotton for the mill by reason of the fact that it has been baled or compressed, as against cotton that is manufactured directly from the field without baling or compressing?

Mr. SANFORD. There has been considerable said in that respect by manufacturers. Some say they would rather have unpressed cotton than a pressed bale. I think myself there is a little advantage, but not very much.

Mr. MCMILLIN. Is there any cost attached to the method of separating so as to get it in the form it was before it was baled? Mr. SANFORD. Any difference in the cost, you say? Mr. MCMILLIN. Is there any cost attached to that? separate machinery?

Does it require

Mr. SANFORD. No; it does not require any separate machinery. You take the unpressed bale and the pressed bale and you put it through the same machinery. That is, we would simply open the compressed bale and let it lie and air out a little while there for two or three days when it will work better; whereas if you take the uncompressed bale

you can shove it into the machinery right off, but you can not get out any more product. The advantage is that the storage and transportation, of course, are in favor of the compressed bale, and I do not think it would make any difference in the cost of the product.

Mr. WHEELER. The reports show some $380,000,000 of cotton goods is exported by England. How much of that do you say is of this character which you state can be made cheaper in this country?

Mr. SANFORD. I did not make that statement that it can be made cheaper in this country.

Mr. WHEELER. Well, some do?

Mr. SANFORD. Some say so, but I do not say it. I say there are some goods that might be made as cheaply as these coarse goods made in England and some other points, but I do not say they can be made cheaper.

Mr. WHEELER. What proportion of the $380,000,000 would you say was of the coarse character of the goods?

Mr. SANFORD. You ask question I could not very well answer.
Mr. WHEELER. You can give a rough idea?

Mr. SANFORD. No, sir; I could not. I could not say in regard to that. Somebody here might do that. Have you those figures, Mr. Chase?

Mr. CHASE. No, not tabulated; but I have a general idea about it, hat is all.

Mr. RUSSELL. You can manufacture as cheaply here as in England? Mr. SANFORD. Some manufacturers of cotton claim they can manufacture these coarse goods as cheaply as they can abroad.

Mr. RUSSELL. To say nothing about the cost of the transportation of the cotton?

Mr. SANFORD. I meant they can make as cheaply at the mill as abroad. If you are manufacturing, say, in Georgia, and you are making sheeting requiring about No. 10 yarn, I think possibly with your long hours and cheap labor you could make them at about the same cost as in England.

The CHAIRMAN. You refer to the coarse goods?

Mr. SANFORD. To the very coarse goods. I do not make the statement, but I say it is claimed by some manufacturers they can.

Mr. MCMILLIN. Are there any climatic reasons why the finer grades of goods can not be made there when they have the capital to construct the machinery?

Mr. SANFORD. In the South?

Mr. MCMILLIN. Yes, sir.

Mr. SANFORD. Yes, sir; I think there are localities in the South where the climate is all right.

Mr. MCMILLIN. As to the class of goods which is manufactured here, from your observation would you conclude that England or any other country can compete successfully in the markets which they supply here with the factories which are run by water in a genial climate where the cotton fields are and the cost of all transportation is saved, or even one transportation saved?

Mr. SANFORD. I think, sir, it is pretty even as conditions exist to-day. I do not think the English manufacturer would come over here and try to supply the coarse cotton goods.

The CHAIRMAN. You mean even as to the coarse goods, but when you come to the finer

Mr. SANFORD. I confine myself to the coarse goods. When you make the fiue goods, that requires experience and skill which it takes years to get.