PARAGRAPHS 333-336-FLAX,

this protection at least is required to prevent importation of sizes to compete with heavier numbers.

Ramie sliver or roving should remain as it is-35 per cent--as it is not a raw material, but is advanced in the process of manufacture. The argument for specific duty on linen thread does not hold in single yarns in the grey as these are sold just as they are produced by the spinning frame without any finishing, and they are a standard commercial article in the manufacturing centers of Europe and are quoted regularly on the exchanges. The difference in appearance is quite marked between the different qualities and can be determined by anyone familiar with the trade. For this reason I believe an ad valorem duty is equitable, just, and satisfactory to everyone.

All of these recommendations as to reductions in the tariff on the finished goods are based wholly on the supposition that the duty is removed from raw flax, tow and dressed line; otherwise these paragraphs should be left as they are, as I can see no chance of reduction with fairness to the industry.

I have here a short statement giving a comparison between the present tariff and the proposed reduction, showing the amount of the present ad valorem rate and the amount under the new specific rate, and how they would work out ad valorem.

The CHAIRMAN. You may file that and we will examine that in the record.

Comparison between present tariff and proposed reduction if raw material is admitted free, in connection with brief submitted by J. E. Barbour, Lake View Mills, Paterson, Ñ. J.

Mr. BARBOUR. The second portion of my remarks, Mr. Chairman, have reference to Schedule J, paragraphs 338 and 578.

Single yarns made of jute, not finer than 5 lea or number, 1 cent per pound and 10 per cent ad valorem; if finer than 5 lea or number, 35 per cent ad valorem; yarns made of jute not otherwise specially provided for in this section, 35 per cent ad

valorem.

Most of the importations from abroad, I believe, would come under the first portion of this paragraph; that is, not finer than 5 lea or number.

PARAGRAPHS 333-336-FLAX.

The average foreign prices for the last three years, from customhouse records, have been as follows: 1910, 4 cents; 1911, 4.6 cents; 1912, 5.9 cents; and the quotations from Dundee dated December 12 on 15 pounds carpet yarn, which is the basis size manufactured here, are equivalent to 8 cents, taking the tariff of 1 cent per pound and 10 per cent ad valorem, we get 1.81 protection, which is about 22 per cent. This is a very low rate of duty.

More than 95 per cent of our machinery must be imported from abroad, on which we have paid 45 per cent duty. The present tariff bill has reduced the rate of duty to 30 per cent, which just depreciates our individual plant in the neighborhood of $50,000.

Not a new plant, wholly for the manufacture of jute yarns, has been started in this country for the last 10 years, showing that the protection is not sufficient.

A plant in this country costs from 50 to 60 per cent more than abroad.

The average of the wages paid in this country over Great Britain and eastern Germany is as follows:

Great Britain: Rovers, 264 per cent; spinners, 280 per cent; reelers, 321 per cent.

Eastern Germany: Rovers, 288 per cent; spinners, 311 per cent; reelers, 400 per cent.

Our coal and transportation charges are continually advancing.

I recommend that the first portion of paragraph 338 be changed to read: "Single yarns not finer than five lea or number, one and one-half cents per pound and 10 per centum ad valorem," and the balance of this paragraph be allowed to remain as at present, that is, 35 per centum ad valorem.

Paragraph 578, free raw jute, remain free as at present.

The only advantage we have over foreign competition is being on the spot and able to make quicker deliveries, satisfy our customers by calling on them or talking to them over the telephone, but with the very large trade, who carry large stocks, it pays them to buy yarn abroad.

I believe that the one-half cent per pound that I have asked for will not increase the cost to the consumer the slightest, for the following reasons:

The jute trade in this country is most unstable and unsettled. Raw jute advances or declines 50 to 80 per cent one year over the other. When trade is poor abroad and raw material very cheap, our protection here is reduced on account of the ad valorem rate of duty.

Quantities of goods are sent to this market, which compels the mills here to run two-thirds to three-quarters of their production, as they can not compete in price. If this foreign competition was largely eliminated the mills here could make a living and profit without increasing their prices, due to the fact of running steadily.

There has never been the slightest combination or trust in the jute trade in this country, but always the keenest competition.

We do not need this slightly increased protection asked for when trade is good, but when trade is bad we do not get protection under the present tariff law, the very time when it is most needed.

PARAGRAPHS 333-336-FLAX,

Thank you, Mr. Chairman.

The CHAIRMAN. Are there any questions, gentlemen?
Apparently not; you may be excused, Mr. Barbour.

TESTIMONY OF J. SIDNEY STARLING, ON BEHALF OF THE FLAXEN FIBER-DOWN CO. (INC.), OF LOCKPORT AND NORTH TONAWANDA, N. Y.

Mr. Starling was duly sworn by the chairman.

The CHAIRMAN. Proceed, Mr. Starling.

Mr. STARLING. I beg to appear before you as representing the Flaxen Fiber-Down Co. (Inc.), of Lockport and North Tonawanda, N. Y., of which I am president and manager.

In view of the pending tariff hearing and the probability of changes thereto, we beg to submit the following suggestions in connection with Schedule J, especially referring to paragraphs 333 and 334 of the tariff of 1909.

Paragraph 333 places $5 per ton on flax straw but does not stipulate whether this straw shall be green, unimproved, just as it is gathered from the virgin soil (see Exhibit A), or whether retted as per Exhibit B, in which condition its value has been improved twofold commer cially, as this process of retting whether by the dew method or water process is both laborious and lengthy, consequently the flax straw in the retted condition is much more valuable than the green straw, so called, which heretofore has been considered of but little value in this condition for fiber purposes. However, there are some new industries like ourselves who are using considerable quantities of this green straw for fiber and yarns, but we are put to a great disadvantage when importing same in this crude and unimproved condition in competition with the commercially improved retted straw, so called, both of which are classed at $5 per ton.

Now, therefore, in view of the above facts we respectfully ask that green flax straw, unimproved, whether straight or broken (see Exhibit C) so as to be baled for transit more conveniently, be admitted free of duty.

In fact we would respectfully ask your committee to seriously consider the advisability of placing all green-flax products, whether straw or fiber to be used for spinning purposes, on the free or favored list. If this is done it will greatly encourage and assist the spinning of linen yarns and the weaving of same in this country thereby not only aid to build up some of the Nation's infant industries but also be the means of placing before the public a line of crashes, towels, coarse linens, etc., such as are now most used in the majority of households at a lower price than at present. See Exhibits D, E, F, and G, all of which are made by us and kindred industries. Our company has recently acquired considerable properties at North Tonawanda, N. Y., and we are equipping a plant there for the purpose of making these goods from the green-flax straw in question.

To further encourage and assist such industries as ours we would beg that your committee does not seriously disturb the present and existing duties now levied on yarns made from flax, hemp, or ramie, or the mixture of any of them and more especially the coarser ones

PARAGRAPHS 333-336-FLAX.

up to and not finer than 18 lea or number, as these are the ones most manufactured in the United States and are also the numbers which come in for the keenest competition from abroad, as we can not compete with these foreign-made yarns if admitted free owing to wellknown conditions which exist regarding foreign labor versus home labor. Another factor that works to our disadvantage is the fact that we have to go abroad for nearly all of our machinery, as but very little of it is made in this country but may be as the linen industries of this country flourish.

We believe statistics show that linen industries are suffering more from foreign competition than any other textile industry in this country, and we respectfully suggest that all reasonable assistance and protection be given these industries.

The CHAIRMAN. Is that all?

Mr. FORDNEY. I would like to ask the gentleman a question. You are a manufacturer of these goods in this country?

Mr. STARLING. Yes, sir; experimentally.

Mr. FORDNEY. Are you asking for a lower rate of duty on your finished product?

Mr. STARLING. I beg your pardon?

Mr. FORDNEY. Are you asking for a lower rate of duty to be fixed on your finished product?

Mr. STARLING. No, sir.

Mr. FORDNEY. But you are asking that your raw materials be put on the free list?

Mr. STARLING. In competition; there are two different fibers. This flax [indicating] is retted, and this flax [indicating] is not retted, and the flax that is retted has more labor on it and comes in at $5 a ton duty. That [indicating], when it comes here, is worth twice as much as that [indicating], because that is the condition where the fiber is taken off and it is more valuable than the green flax. Mr. FORDNEY. But it is your raw material?

Mr. STARLING. This [indicating] is the raw material.

Mr. FORDNEY. Yes.

Mr. STARLING. Of course, we are interested in raising flax in this country, and we are experimenting in raising a fiber flax. American farmers have been giving most of their attention to the raising of flax for seed, but we want a fiber flax.

Mr. FORDNEY. You would be at a decided disadvantage if Congress put your finished product on the free list and put your raw materials upon the protected list?

Mr. STARLING. We would be at a disadvantage?

Mr. FORDNEY. Yes; would you not?

Mr. STARLING. It would seem to be working doubly against us. Mr. FORDNEY. That is what the man raising flax would say about your argument, if you got what you want that you would be protected and he not protected. That is hardly consistent, my friend, to ask that you be protected but that your neighbors' finished product, which is your raw material, be either put on the free list or lowered.

Mr. STARLING. We would be glad to raise our own flax, and we are interesting ourselves in raising our own flax in this country.

PARAGRAPHS 333-336-FLAX,

Mr. FORDNEY. But you can not raise all the flax you put through your factories. You would look to the farmers to raise the flax for you, would you not?

Mr. STARLING. Yes, sir; we would look to the farmers to raise the flax on contract or rent their land.

Mr. FORDNEY. You are asking for an additional duty on your finished product, as I understand you?

Mr. STARLING. No, sir.

Mr. LONGWORTH. You have a certain protection here, a protection on the difference between the duty on raw flax and on this finished product. Now you are asking for additional protection on the raw material.

Mr. STARLING. This [indicating] is not our finished product at all. We do not use this.

Mr. FORDNEY. That is the finished product of the farmer, is it not? Mr. STARLING. Of the farmer?

Mr. FORDNEY. Yes; the man that raises the flax.

Mr. STARLING. No; this is the product of the man who retts the flax and ships it for fiber purposes. This is the product [indicating] before it has been treated. He treats it either in Europe or in Canada; they treat it and make it more valuable by retting it in water or on the land.

Mr. FORDNEY. When it leaves the farmer it is not further advanced by the farmer than this green flax?

Mr. STARLING. No; not as a rule.

Mr. FORDNEY. Therefore it is his finished product and he puts all his labor and money into it, and whatever state it is in when it leaves him it is his finished product. I will tell you that I am a protectionist; I want to see your industry protected, but I declare I do not like to vote to protect your industry and destroy the other fellow.

Mr. STARLING. No; I think I am not understood. I do not think I made myself plain, because that is not the condition. If you will permit me

Mr. FORDNEY. Well, I thank you. I hope I have misunderstood you.

Mr. STARLING. Yes. We use green flax, sir.

Mr. FORDNEY. That is, flax straw?

Mr. STARLING. Green flax straw. We use it.
Mr. FORDNEY. Yes.

Mr. STARLING. The green flax straw, just as it comes from the farmer, after he has taken the seed off, and it is broken in that condition and the fiber taken out and these yarns [indicating] we make right here.

Mr. FORDNEY. Yes.

Mr. STARLING. And they are finished up to this [indicating]. This is our finished yarn, made from green flax straw in this country. Mr. FORDNEY. One is bleached and the other is not.

Mr. STARLING. Those are processes. We take them green and process it in the yarn. That is the way we get it. It is our new way Mr. FORDNEY. You bleach it by the new process?

Mr. STARLING. A process which we have; yes, sir; and those materials are made from it and have been submitted to the public and are claimed to be very satisfactory for use.