The COMMITTEE ON WAYS AND MEANS, House of Representatives, Washington, D. C.: This brief respectfully represents the views of Rogers Screw Co., of Providence, R. I. Number of companies making wood screws.-There are 27 companies making wood screws in the United States. Overproduction of screws. These 27 companies, located in five different States, will show a capacity for production of about 50 per cent over normal consumption. Character of product. Wood screws of steel, brass, and bronze are a highly organized product, in that from the wire to the finished screws they have to go through some 18 handlings or operations. Value of product. It is common knowledge that the machinery for producing wood screws is so expensive and the product sells so cheap that it takes two years to turn the capital required. Quantity of product per annum.-It is estimated that from thirty to twirty-two million gross represents the present consumptive demand. Staple article.-Screws are an absolutely staple article, in that they do not deteriorate through age or fashion; i. e., a common flat-head screw, made in the late forties, at the time of the reintroduction of the gimlet-pointed screws, is as usable to-day as a similar screw made yesterday. Selling price of wood screws.-The chart herewith shows the average net selling price to the maker of the average size of wood screw during the past 72 years. The accompanying diagram has been prepared by the Rogers Screw Co., Providence, R. I., and shows the net price per gross of the average size of flat-head wood screws during the past 71 years. When examined in connection with the information given below, the apparently hazardous character of the business is shown. This company has a list of 120 concerns who at one time or another manufactured wood screws in this country. Of this number about 20 have survived. The early struggle. The period from 1840 to 1849 properly represents the struggle of the various domestic screw companies in attempting to get a foothold in the market. The recovery in 1852 was due to the lessened number of manufacturers and their control of automatic machinery in place of the hand machinery available to others. In 1863 to 1867, the war period, prices in general ranged very high. The reaction in the latter year was due to new competition following the expiration of patents on automatic machinery. The boom in business which was reflected in the price of screws from 1870 to 1873 was followed by the panic and a number of disastrous years. the period from 1876 to 1879 there was sharp competition, and during 1878 the auction sale of screws took place. This was followed by the manufacturers' association, Omitted. Will be printed in revised edition. In which maintained prices and led to fresh competition, with the extreme depression shown in 1885. Subsequent to 1895, through open and ruinous competition, such as now prevails in this industry, many screw companies abandoned the business. Production 50 per cent greater than consumption.-The capacity for production of wood screws in this country at present is at least 50 per cent greater than the normal consumption. Domestic net prices are considerably less here than in England, in which country a substantial monopoly is enjoyed by one or two manufacturers. Number of workmen employed. It is estimated that about 4,000 workmen are employed in the production of wood screws in the United States. Proposed rate in Underwood bill (H. R. 18642) passed by the House of Representatives.— The raw material (wire) is taxed (Schedule 13) 20 per cent while the finished product (screws) (Schedule 38) bears an ad valorem duty of 25 per cent or a net protection of less than 20 per cent on screws, which is insufficient, and is less than the difference in labor cost between this country and Germany, our keenest competitors. Why should the screw makers be discriminated against by not having free raw material? The cotton and silk manufacturers expect it; and if the raw material of screw makers (wire) is to be subject to a duty, then in all fairness, a compensatory duty should be allowed them of at least 40 per cent. A specific duty is preferable in that it will give less occasion for undervaluations, and we recommend the following rates per pound as fair if specific rates are imposed: STATEMENT OF THE NATIONAL EXECUTIVE BOARD OF THE AMERICAN WIRE WEAVERS' PROTECTIVE ASSOCIATION. WAYS AND MEANS COMMITTEE, NEW YORK CITY, N. Y., January 7, 1913. House of Representatives, Washington, D. C. GENTLEMEN: We beg to file this statement with your honorable body in the name of the iron, bronze, copper and brass, and other kinds of wire-cloth weavers of the United States. Understanding it to be the intention of the incoming Congress to revise the tariff schedules, we wish to urge for your consideration whatever claims our industry may have, if not to an increase, at least, to a retention of the present duty. We do not think it possible that there can be any reduction in the tariff on iron, bronze, copper and brass, and other kinds of wire cloth if your honorable body is made acquainted with the facts of this industry as we know them. Any reduction at this time will be detrimental to the interests of every wire weaver in this country as well as to the interests of the large number of workers in the allied branches of the trade. While the cost of living has increased, the wages of the wire weavers of America are lower to-day than they have been for 30 years, lower in fact than they have been since the establishment of this industry in the United States; as a direct result of the importation of wire cloth from abroad a reduction of wages amounting to 20 per cent has been made necessary within the past year. Even under the present tariff many American wire weavers have been thrown out of employment by reason of German manufacturers finding a market for iron, bronze, copper and brass, and other kinds of wire cloth in the United States. There has been a considerable increase in these importations within the past year, making employment in some American factories less certain than formerly. The wire weavers in Germany work 60 hours per week. This is 10 hours per week longer than the American is required to work in the same line. There can be no comparison between the wages paid to the German wire weavers, a statement of which is herewith appended (Appendix No. 1), and those received by the weavers in this country for the same grade and class of work. Even taking into consideration any possible difference in the cost of living in Germany, as compared with the United States, the German wire weaver works for a wage so low that his standard of living can not approximate to that deemed necessary for the American mechanic. Under the present tariff, the German wire-cloth manufacturer is able to place his finished product in the American market at a price lower than his American competitor. We think any reduction in the tariff would give the German an unfair advantage. We believe it would mean discrimination against American labor, and tend to discourage the investment of capital in home enterprise. Again, we may cite the condition of the British wire-cloth manufacturer. While they have not been of any great injury to the American wire-cloth manufacturer, this possibly being due to the present rate of 45 per cent duty, and also to their higher rate of wages paid the British weaver over that of their German competitor, yet they, too, may become as serious a menace to the American manufacturer should a reduction of the tariff take place. We submit, herewith, a statement (Appendix No. 2) showing the rate of wages paid by the British manufacturer as compared with the American manufacturer. We know that you will not purposely retard the growth of any legitimate interest in our country, but as our product does not seem to be specifically classified under the present law it has seemed to us necessary to draw it to your attention in this way We think you would be encouraging American labor as well as American capital in this case by protecting us against unfair foreign competition. If such encouragement is to be given we urge you, if you do not recommend an increase in the duty, to see that the present tariff is maintained. We would not ask that this statement be filed if we were not fully convinced that a reduction in the tariff on iron, bronze, copper, and brass, and other kinds of wire cloth, would be detrimental to the workers in whose interests we write and tend to interfere with the growth of a legitimate American industry. We have been given repeated assurances that no reduction in the tariff will be made by Congress if it can be shown that such a change will discourage the normal growth of legitimate business enterprises. We do not know, of course, that any change is contemplated in the case of iron, bronze, copper, and brass and other kinds of wire cloth. If any such change may be contemplated, we beg your honorable committee to give us an opportunity of acquainting you with whatever facts we possess when the schedule is taken up. Thanking you in anticipation of a careful perusal of the statements herein set forth, we beg to remain, Yours, very respectfully, AMERICAN WIRE WEAVERS' PROTECTIVE ASSOCIATION. Secretary-Treasurer, 27 Woodland Avenue, Woodhaven, N. Y. NOTE.-The above are the principal meshes woven in Germany, but we can, at a later date, submit figures for all other meshes. 72318-No. 5-13- -2 NOTE. The daily average wage of the American wire weaver is, approximately, $4 per day. HINGES. Referring to section 144 of the present tariff, "Iron or steel hinges" and "Hinge blanks," on which the duty is 1 cents per pound, this rate is illogical because of the wide range of sizes and weights of hinges. The kinds of iron or steel hinges which follow American models are known as butt hinges or butts, made in sizes ranging from one-half inch (length of joint) to 8 inches, and are generally packed in paper cartons. Foreign makers are using machinery similar to American and (eliminating profits) the duty should represent the difference in labor cost. The costs (as made in this country) show an average of 60 per cent material and 40 per cent labor. The foreign rate of wages for labor is practically one-half the American rate and therefore butt hinges would cost here $1 compared with 80 cents in foreign countries. It would seem that an ad valorem duty of 25 per cent on the foreign valuation would equalize the difference in labor costs and that any lower rate than that would transfer some employment to foreign countries or require scaling down American costs. Other kinds of iron or steel hinges are of larger and heavier patterns and are used mostly out of doors. These are known in the trade as strap and T hinges, screw and strap hinges, and plate hinges, and are what were probably intended to be covered by the present rate of 13 cents per pound. These hinges have a smaller proportion of labor cost, and 15 per cent would probably equalize the labor element in the cost here and abroad. If butt hinges were rated at 30 per cent the first year and 25 per cent the second year and thereafter, and strap, T, and plate hinges at 20 per cent the first year and 15 per cent the second year and thereafter, manufacturers could better prepare themselves to meet the new conditions. NEW BRITAIN, CONN., January 9, 1913. THE STANLEY WORKS. STATEMENT OF LUKENS IRON & STEEL CO. COATESVILLE, PA., January 9, 1913. The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. DEAR SIRS: In the manufacture of open-hearth steel a certain percentage of ferromanganese is necessary in order to make the steel merchantable, or even possible to roll it into plates or other forms. Unfortunately, this country produces very little manganese, and the only smelting done in this country is by one large interest; even it has to import a large part of its needs, we believe. Under the present tariff ferromanganese comes in with the duty the same as pig iron, which has been the rule for years past under various tariff bills. At present it is $2.50 per ton. We understand it is proposed in the new bill to make this 15 per cent ad valorem, which would result in a duty of $11.25 per ton, or four and one-half times what we have to pay now, with ferromanganese commanding $75 per ton for prompt deliveries. This would be a hardship to the steel manufacturers of this country-those who manufacture high |