Nearly $2,000,000 have been spent in this country in perfecting a number of processes for the manufacture of artificial silk and horsehair, but owing to the high cost of labor in this country to that compared in Europe, it has been a difficult matter to interest capital to a great extent, as it is principally hand labor entering into the manufacture of this product and labor being by far the largest item in the cost of production. After spending a great deal of money in perfecting our process, we are making a better product than that made in Europe, our product being stronger and more elastic, therefore to encourage the investment of a greater amount of capital and giving employment to many more people and to be able to compete with the European manufacturers, we earnestly request to raise the present tariff on artificial horsehair to 50 cents per pound and artificial silk in the form of singles or tram to 60 cents per pound, and artificial silk in the form of organzine to 70 cents per pound, making an average increase of tariff of about 10 cents per pound. If the increase of tariff asked for is granted, the tariff then would just about be equal to the difference of the amount paid for labor and overhead charges in this country to that paid in Europe. Our present average cost and to market artificial silk is $1.70 per pound, made up of the following items: Material 52 cents, labor 74 cents, overhead charges 20 cents, general expenses 14 cents, and selling expense 10 cents, and in order to make a fair profit we should sell this product to the trade for $2.12 per pound, but the foreignmade artificial silk is sold for about $2 per pound, including the tariff, which compels us to sell for the same price. We also recommend to change the expression of classification of Schedule L, paragraph 401, which is not specific enough, namely, if in the form of singles, to read, if in the form of horsehair; if in the form of tram, to read, if in the form of singles or tram; if in the form of organzine, to read the same as now. The reason we recommend the above-mentioned changes is because there has been some trouble in the past to determine the difference between singles and tram artificial silk. The matter of fact is that artificial horsehair should not be classified as singles, because it is not artificial silk but it is artificial horsehair, and artificial silk singles and tram are one and the same; but to avoid future trouble it is good policy to use both words for said classification. CLEVELAND ART SILK Co., 1920 West Seventy-seventh Street, Cleveland, Ohio. Mr. UNDERWOOD, COMITÉ DE DÉFENSE DES INTÉRÊTS LYONNAIS AUX ÉTATS-UNIS DE L'AMÉRIQUE Du Nord, Committee on Ways and Means, Washington: We have been informed that a hearing concerning the schedule for silk duties would take place in Washington before a Committee of the Ways and Means department on January 13, 1913, and we solicit herewith the favor to produce a short statement of facts. In former years Lyon used to export big quantities of silk goods to the States, the largest proportion being by far cheap articles, cotton and silk, or silk and schappe mixtures. At that the United States of America were the best customer of our district. Under the present tariff regulations exports from here have fallen down considerably, have been totally annihilated, especially in the cheap articles, which are necessities for all poorer or medium classes of people. Customhouse figures clearly ascertain it. This is a proof that the actual tariff is not a law of protection, but a prohibition of competition, going directly against the interests of the consumers, as it has been so strikingly put in light by the broad and high-minded President Wilson. The argument that silks are luxuries can not be earnestly maintained when silk and cotton or silk and schappe mixtures are in question-goods sold in the States at prices from 20 cents to 55 cents per yard. Luxuries are the silks sold at and above $3 per yard. These pay now 45 per cent ad valorem, whilst the silks for the poor above mentioned pay specific duties ranging from 80 to 113 per cent are consequently prohibited. We believe that it had never been in the intentions of American legislators to vote such prohibitive duties. This result was obtained by means of the specific schedules which a few interested domestic manufacturers managed to have adopted in order to be masters and absolute regulators of the selling prices, for their benefit against all democratic principles. We are aware that before an American committee we necessarily must more or less be suspected to defend our own interests, but, on the other hand, we are so convinced of the spirit of truth and public welfare which animates that body that we feel sure these real true facts will find due consideration. We are at the disposal of the committee for any information or explanations which may be desired. Respectfully, Pour le president un de vice president. BERTRAM. MEMORIAL OF THE ITALIAN CHAMBER OF COMMERCE IN NEW YORK TO THE COMMITTEE ON WAYS AND MEANS ON THE REVISION OF SCHEDULE L (SILK AND SILK GOODS) of the Tariff Act of AUGUST 5, 1909. RAW SILK AND SILK WASTE-SILK MANUFACTURES. Hon. O. W. UNDERWOOD, Chairman of the Ways and Means Committee, Washington, D. C. SIR: The Italian Chamber of Commerce in New York, in line with the study undertaken on the revision of the present tariff, according to the criteria of a proper adjustment of the rates on the various commodities, consistent with the necessities of American industry, the stimulus of trade, both domestic and with foreign countries, the avoidance of privileged class legislation, the encouragement of American labor, and the needs of providing revenue without fiscalism, the necessity of maintaining healthy competition and preventing monopoly, and above all the protection of consumers and the amelioration of their condition by reducing the high cost of living, respectfully submits the following recommendations regarding articles included in Schedule L, silk and silk manufactures, which it hopes will be favorably considered by this honorable committee. Raw silk and silk waste.-The United States is now the largest silk-consuming country in the world and is also one of the largest manufacturing centers, especially for the cheaper silk productions, the use of which American silk manufacturers have helped to make in our country more popular than in any other. The value represented by silk manufacturers, according to the census of 1909, was of $196,911,667 against $133,288,072 in 1904. Establishments numbering to 852, representing an invested capital of $152,158,002, using materials for a total cost of $107,766,916, employing between salaried and wage-earning labor 105,238 men, receiving in wages and salaries $46,097,361, using 97,947 of primary horsepower and 17,472,204 pounds of raw silk, give an idea of the importance of this industry in the United States, whose wonderful development, even in comparison with only five years ago, with an increase of about 48 per cent in the total value of products, of 37 per cent in the number of establishments; of about 39 per cent in the capital invested; of about 42 per cent in the cost of materials used; of about 25 per cent in the number of wage earners, and of about 51 per cent in the amount of raw silk used. is another evidence of American industrial progressiveness, the more remarkable because of the fact that this industry depends for its raw material entirely upon foreign supply. There is, in fact, no production of raw silk in the United States. The experiments undertaken at various times by the Department of Agriculture in order to introduce sericulture in this country have invariably met with failure. It is a safe assumption that the United States will never become a silk-producing country so long as it can draw its material from countries like Japan, China, and southern Europe, where conditions of environment and labor are more favorable to this production than in the United States. The reason why silk raising never acquired a foothold in this country is mainly one of cost of labor, being here too expensive. Climatic conditions in this country are not altogether favorable to the raising of the silk worm, and the fact that mulberries, whose foliage furnishes the necessary food for the silk worm, are not found to any great extent, is a further and serious difficulty. From the above-stated reasons the United States will continue to draw its supply of raw silk from the countries which have specialized in the production of this material and which are, in order of importance in supplying the American market, Japan, China, Italy, and France. The importations of this indispensable raw material for one of the most conspicuous American industries show a constant tendency to increase, having amounted in the fiscal year 1911 to 22,379,998 pounds, valued at $72,713,984, against 16,722,207 pounds, valued at $70,229,518, in 1907. To these figures the importations of silk waste should be added, which from 1,950,474 pounds, valued at $1,158,574, in 1907, increased to 4,122,226 pounds, valued at $2,210,020, in 1911. Both raw silk and silk waste are admitted in this country in exemption of duty and have always been on the free list for obvious reasons. Being the raw material indispensable to a great and growing industry, it is almost superfluous for this chamber to recommend, as it does, that it be maintained on the free list, where it has always been in the past. Silk manufactures. The prevailing idea that silk goods are luxuries accounts to a great extent for the high protective tariff maintained by this country on silk manufactures. While it is an undeniable fact that silks are not, as a rule, as indispensable to the masses as cotton or woolen manufactures, and that they represent mostly expensive articles, which can bear a reasonable amount of duty, it must nevertheless be recognized that certain lines of silk manufactures are not necessarily luxuries. Among these is, for instance, the silk fabric used as covers for umbrellas, which no one will refute is a necessity. Silk is preferable to any other material in the manufacture of this article, because of its lasting qualities, as well as for other advantages, such as lightness, etc. No one will contend that a silk umbrella is not a luxury, but an article of common use. At present this fabric is taxed at the rate of 70 per cent, which is practically prohibitive, and should therefore be reduced in the interest of revenue, as well as in order to secure to the consumers in this country the advantage of better quality. This would be a good opportunity for Congress to do something for the protectionof the people against "rainy days." While it is certain that the imported silk manufactures represent, as a rule, articles of higher cost than the domestic, the former being the product of particular workmanship, in which the ability of the workman is a factor of primary importance, this should not constitute a reason why they should be burdened with duties which puts them beyond the means of the middle classes, and confines their use to the more fortuThat prohibitive duties should be levied on all articles of value is not always a fair principle to be followed in the indirect taxation of the people, which taxation the tariff represents. nate. This principle is adhered to too strictly in the present rates assessed on silk manufactures, without regard to the usual exceptions to every rule. The fact that the importations of silk manufactures show a visible tendency to decrease, having diminished from a value of $38,903,040 in fiscal year 1907 to $28,858,008 in 1911, is an evidence of the necessity of an adjustment of the silk goods schedule to prevent the inevitable loss to revenue that indiscriminately high rates have caused, and to secure to the consumer the advantages of those improvements that may be attained in foreign manufactures before they appear in the domestic. The last tariff revision radically altered the method of levying duty in many of the paragraphs of the silk schedule by substituting whenever possible specific for ad valorem rates, a principle which should be further extended. If the rates on certain silk manufactures of more popular use, such as cravats, etc., were lightened, considerable increase would be brought in revenue without appreciable prejudice to American manufacture, which, firmly established and specialized as it is in the production of the cheaper lines of silk goods, does not need at present the same measure of protection that it needed in its infancy, especially in view of the fact that the cost of production abroad has considerably increased of late years through higher wages, so that the difference under this item is not nearly so great now as it has been in the past. In conclusion, this chamber, for the above reasons, recommends that the rates of duty on silk manufactures used especially in certain lines of popular consumption, and subject at present to the exorbitant duty of 70 per cent, which prohibits importation, be reduced to a more reasonable level. Respectfully submitted. [SEAL.] 72318-No. 7—13—11 LUIGI SOLIANI, President. BRIEF SUBMITTED BY AMERICAN VISCOSE Co. This brief refers to artificial silk yarn, Schedule L, paragraph 405. The attempts to establish an artificial silk industry in this country have, up to two years ago, resulted only in failures. Probably $1,500,000 was spent in these various futile efforts. Even after the tariff bill of 1909 was passed nothing lasting could be accomplished until the cost of manufacture was further materially reduced, which results were first achieved in European factories. About two years ago the most successful of these processes was introduced into the United States, and a factory was built on a large scale at Marcus Hook, Pa., for the production of this yarn in this country. There is now a cash investment in this factory of about $900,000 in plant, machinery, and buildings, and over 1,000 people are employed. The production of silk during the past year (Jan. 1 to Dec. 31, 1912) in this country was 1,200,000 pounds. The importations during the last fiscal year were 1,451,440 pounds; that is, the domestic makers produced 45.2 per cent of the total consumption. From July 1 to September 30, 1912, the imports were 415,000 pounds. Since then they have increased heavily. There is no exportation whatever of this yarn, and it is not conceivable that there will ever be any. I believe that the importation for the present year (1913) will be not less than 2,500,000 pounds, which would, therefore, at the present rate of duty, give a revenue of $1,125,000. This estimate is based on the increased importations during the last half of 1912, as compared with the first six months of the same year, and also as compared with the last six months of 1911, and is furthermore based on the rapid introduction of this yarn into new lines. Artificial silk has now been so perfected that it is used for a great variety of purposes, either alone or in combination with other materials to produce special effects. Articles made of artificial silk can be regarded only as articles of luxury. In view of the short time which this industry has been successfully established in this country, and in view of the fact that notwithstanding of an actual cash investment of about $900,000, one dividend only of 7 per cent on the capitalization of $837,000 has been paid so far, I respectfully submit that the duty remain unchanged, namely: 45 cents per pound on singles; 50 cents per pound on organzine; 60 cents per pound on twists. I especially recommend that a specific duty be maintained, as there is little difference in the price of the current sizes used; the conditions, therefore, are especially suited for levying a specific duty. Respectfully submitted. STATE OF PENNSYLVANIA, County of Delaware, ss. CHARLES A. ERNST, For the American Viscose Co., Marcus Hook, Pa. I, Charles A. Ernst, general manager of the American Viscose Co., Marcus Hook, Pa., being duly affirmed according to law doth depose and say that the facts in the attached statement are true and correct to the best of my knowledge and belief. CHARLES A. ERNST. Affirmed and subscribed before me this 11th day of January, A. D. 1913. [SEAL.] Commission expires March 10, 1913. ANDREW A. CLARK, BRIEF. BUCKEYE Powder Co, Peoria, Ill., January 8, 1913. CHAIRMAN WAYS AND MEANS COMMITTEE, DEAR SIR: I desire to file the following brief on the chemical schedule: I respectfully protest against any tariff on chlorate of potash, because it will not produce an adequate revenue to justify a protective tariff." There are three plants in the United States manufacturing this chemical by the electrolytic process, located at Niagara Falls, in Vermont, and in the Saginaw-Bay City, Mich., fields. The entire output of these plants is controlled by J. L. and D. S. Riker, 46 Cedar Street, New York City, who, because of such monopoly, require the public to pay exorbitant profits. The present tariff of 2 cents a pound enabled J. L. and D. S. Riker to make an agreement with the chemical pool of Europe by the terms of which the said American monopolists shall not export any chlorate of potash to foreign countries and the foreigners shall not sell or quote prices to the American trade. This agreement prohibits a revenue from all the large manufacturers of Europe and nullifies the tariff laws of this country. Will Congress legislate to create and foster this conspiracy by continuing the tariff on which it is founded? Remove the tariff and there would remain no inducement for foreigners to enter into an agreement to close the markets of this country to themselves. Chlorate of potash costs to manufacture abroad 3 cents per pound in Sweden, 3% cents per pound in France and on the Continent. The Rikers sell at 94 cents and it costs less than 4 to manufacture it. The Rikers are not innocent violaters of the law. John L. Riker was the largest stockholder of the Laflin & Rand Powder Co., and took part in the conspiracy that formed the Du Pont Powder Trust, and his successors will profit by the dissolution that the court has just entered. From one little distribution of the usufruct in that case I extract the following from the record: Delaware investment stock (exchanged) issued to: The record in The Government v. Du Pont Powder Trust shows that the Laflin & Rand Powder Co., of which John L. Riker was a director, was a party to the "world agreement," dividing the markets of the world between the American and foreign trusts. That agreement prohibited foreign manufacturers from quoting or selling powder to "the Government of the United States of America." I urgently recommend that the tariff law contain a provision that if it be proved to the satisfaction of the President that should any individual, firm, or corporation, protected on any article by a tariff, enter into a conspiracy or agreement dividing markets, or otherwise defeating this Government in the collection of the revenue provided by the act, or shall make an agreement with foreigners to manufacture foreign brands in this country, then, in either case, the President shall place such article on the free list. I suggest this as a rebuke to those who, for private gain and to create a monopoly to rob the public, deprive the National Treasury of its just dues. Soliciting the kind consideration of your committee, I remain, Very respectfully, Hon. Mr. UNDERWOOD, House of Representatives, Washington, D. C. ROBERT S. WADDELL. NEW YORK, January 8, 1913. DEAR SIR: Paragraph 56 of tariff act of 1909: Under this paragraph of paints, colors, and pigments, etc., a duty of 30 per cent is paid. Paragraph 117: Under this, iron ore pays duty of 15 cents per ton. Under Treasury Summary 29074 (119 Fed. Rep., 470, and 162 Fed. Rep., 880), oxide of iron in lump form is permitted to enter the United States on duty as iron ore at 15 cents per ton. Not a particle of this iron ore is used for smelting purposes but solely to make powdered oxide of iron. On oxide of iron we pay duty of 30 per cent, or $6 per ton, while the importer of crude material pays only 15 cents per ton. We respectfully ask that in some manner importations of iron ore, used in paints, be assessed at the same rate as the powdered iron ore. Very respectfully, yours, J. W. COULSTON & Co. |