PARAGRAPH 338 JUTE YARNS. A reasonable rate of duty on linens will benefit every household in the country and many industries using linen as the raw material in their manufactures. The Stevens Linen Works, established in 1846, has existed through several lower tariffs than the present one, and this proves it does not need the present high rates. It is the only manufacturer of linen goods in this country of any size. The enormous rates of duty charged on linen goods in the present tariff have failed to establish any important linen industries manufacturing linen goods. A few have imported linen yarns and used them in conjunction with cotton yarns to manufacture a few goods. It is probable that the Oxford Linen Co., which has occupied a prominent position in the newspapers recently, is still fresh in the minds of your members. We ask that you give earnest attention to our moderate requests. Our reasons for making above statements are based on the experience of houses belonging to this association, one of which has been in the linen business since 1845, and others nearly as long. This reduced duty should increase the revenue, as at present the importation of many grades of linens has almost ceased owing to prohibitory rates. Â moderate tariff will undoubtedly greatly increase the revenue in these articles and will also cause a larger revenue from those goods which are imported at present only in moderate quantities because of high rates. Very respectfully, yours, HENRY D. Cooper, President Linen Association of New York. Address: Henry D. Cooper, care of James F. White & Co., 54 and 56 Worth Street, New York City. DANIEL C. ROPER, Esq., Committee on Ways and Means, House of Representatives, Washington, D. C. NEW YORK, January 14, 1913. DEAR SIR: In reply to your favor of January 11 I would say that I scarcely feel that it will be necessary to make any address before you, but I do wish that you would put my statement before the committee to the effect that a great many varieties of linen goods paying a high rate of interest as assessed have been reduced in volume of import to a very great extent. Reducing them to a fair rate of duty as suggested in my brief, will increase the importation of these goods very largely and will increase the revenue. In other cases, as in the case of cheap damasks, cheap towels, cheap napkins, these goods have been largely prohibited through the higher duties imposed at the present time and the rates as suggested by us will once more reestablish the importation of these goods in considerable volume and will increase the revenue of the country to a very marked extent. If you would be good enough to add this letter to my brief I would be obliged to you. The statements made about the increased importation of these goods are based entirely upon our past experience when we and others in our line of business brought large quantities of the goods under discussion into this market, but during the existence of the present law and the law immediately preceding the present law the rates of duty were so large that the quantities of goods were greatly reduced in many cases, and in other cases absolutely ceased to be brought into the country, the rate of duty being so high that the cost of the cloth was beyond the means of the consumer. Therefore, establishing rates as suggested in my brief will definitely and certainly cause a very considerable increase in the revenue. Yours, respectfully, H. D. COOPER, President Linen Association of New York. BRIEF SUBMITTED BY DOLPHIN JUTE MILLS, PATERSON, N. J. GENTLEMEN: The Dolphin Jute Mills at Paterson, N. J., is one of the oldest mills in the country. It was established in 1850 and has been operated with varying results ever since. It manufactures jute yarns and twines, and is now employing about 600 people. It earnestly protests against any lowering of the present duty on jute yarns, for the reason that yarns manufactured abroad, chiefly at Dundee, Scotland, are now being imported under the present rate of duty in direct competition with its yarns, and if there be any lowering of the duty, it will be compelled to close its mill and discharge its hands. This competition of imported yarns at the present duty is made possible by the difference in rate of wages paid in Dundee and in America. PARAGRAPH 338-JUTE YARNS. The present rate of duty on jute yarns not finer than 5 lea or number is 1 cent per pound and 10 per cent ad valorem; if finer than 5 lea, 35 per cent ad valorem; and on jute yarn not otherwise specially provided for, 35 per cent ad valorem. The wages paid in Dundee, as reported by the Department of Commerce and Labor, plus 5 per cent increase since the report was made, in comparison with the wages paid in this country in manufacturing jute yarn are as follows: As shown by the above table, the average wages in this country are 260 per cent of the Dundee wages. The difference in the cost of production of 14 pounds of jute yarn (3) lea and basis size) between Dundee mills and American mills is about 13 cents per pound, and the average duty paid during the past three years from customhouse records has been: 1910, $0.0148 per pound; 1911, $0.0150 per pound; 1912, $0.0160 per pound. Never in the last three years has the duty equaled the difference in cost of production, and the competition from abroad works harm to the American spinner. We have no advantage over our foreign competitors; the hours of labor are the same; the production is limited to the speed of the machinery; the spindles can run no faster here than they do in Dundee. The importations of jute yarn during the past three years have been 10,041,010 pounds. This will indicate to you the seriousness of the foreign competition. It is because the difference in cost of production between Dundee and America is greater than the duty as shown above, and the competition very keen, that we respectfully request that the rates be not lowered. During the continuance of the Wilson bill, 1894, 1895, 1896, and 1897, when the duty on jute yarn was 20 per cent ad valorem, the business was very unprofitable. This was entirely due to the competition from abroad, for during that time our yarn sales fell off 35 per cent in spite of the fact that we sold some yarn for less than cost in order to meet foreign competition and hold our customers. We did our best to reduce cost by reducing wages and all salaries, and practicing rigid economy, but in spite of this were shut down, and compelled to run short time a great deal during 1894, 1895, and 1896. The jute-yarn business in this country is absolutely dependent on a protective duty equal to the difference in cost, and we trust you will help this long-established industry to keep its employees at work and earn a fair return on our investment. Respectfully submitted. DOLPHIN JUTE MILLS, SUBMITTED IN BEHALF OF SUMMERS LINEN CO., PORT HURON, MICH., AND MILFORD, N. H. WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. GENTLEMEN: Relative to Schedule J, covering flax, hemp, jute, etc., we beg to submit the following brief: The committee is undoubtedly aware that nearly all linen yarns and woven goods manufactured in America are made from foreign-grown flax. This company's position is somewhat unique, as they are concerned with the American-grown flax. The utilization of American-grown flax has recently received very serious attention. There is every reason to believe that the industry will thrive if given proper protection. While it is true that most of the American flax is inferior in quality to PARAGRAPH 338–JUTE YARNS. the foreign, there are some parts of the country that have produced flax of a quality fully equal to the foreign. It is, furthermore, quite certain that as the American farmer is induced to bestow upon the crop more care and foreign methods of cultivation with fertilizers are utilized nearly the whole range of household linens can be manufactured from the nativegrown plant. The American manufacturer is at a serious disadvantage compared with his foreign competitor. This is equally true whether he spins his yarns out of imported or nativegrown fiber. This disadvantage is present in the three main considerations governing the cost of production, i. e., labor, machinery, and material. LABOR. The American labor is not only much more costly, but owing to the pecularities of the industry, it is in most cases, not as productive. It is true that the American operator is more efficient in certain lines of work, but in most of the operations having to do with the production of linen goods this is not true. The foreign operator enters the linen mill when he or she is quite young, and becomes skilled in the particular operation they are concerned with at a period of their lives when expertness is easily acquired. This is impossible in America, not only on account of the restlessness of labor, but also owing to severe labor laws. In Michigan, where we are now spinning our flax, we are not permitted to hire either girl or boy under 16 years of age. This labor comes to us entirely unskilled and is very high priced. Where we pay from 12 to 14 cents an hour for female help, in some parts of Russia the same class of help is paid from 2 to 4 cents, and in the foreign countries paying the highest wages the scale is seldom over 50 per cent of our wage. The quality of the work is such that the operator has no great opportunity for initiative, such as usually gives preference to American labor, but must keep the machinery to full operation by manual dexterity. In this, the foreign labor excells our native help. We are therefore at a double disadvantage as regards the item of labor. MACHINERY. The machinery concerned in the manufacture of linen goods is almost wholly foreign built. This is particularly true of the spinning machines, practically none of which are built in this country. Nearly all the improvements in this class of machinery has been of foreign origin, and if any advantage lies in the machinery, that advantage is with the foreign manufacturer. It is true that with weaving machinery, the American manufacturer is able to supply some, at least, of his needs with the Americanmade looms, but these looms are more adaptable to cotton than linen. MATERIAL. In the way of material, the American manufacturer who does not utilize imported flax is apt to be at a particular disadvantage, and even though he imports his fiber he is at a disadvantage owing to the cost of importation and the need of obtaining material of the proper quality. The mills nearer the source of supply have naturally the advantage of selection, unless the American manufacturer's business is sufficiently large to permit him to have an agent on the ground. NATIVE GROWN FIBER. The incentive for endeavoring to utilize American grown flax in this art is due to the fact that the flax straw itself can be grown cheaper than abroad. The serious aspect of the case, however, has to do with the cost of converting the flax straw into spinning fiber. Here again the labor item is excessive. The main operation of conversion has to do with an operation called scutching. These operators are difficult to get, and when obtained earn about $2 per day. The foreign operator concerned with this operation is much more efficient and in many cases earns but a third of this sum. There is, however, every reason to believe that if this native industry is encouraged, machinery will be found to overcome this disadvantage. Undoubtedly the importers and towel mills that buy their yarns abroad will make representation before your committee looking toward a reduction of the duty on coarse flax yarns. If such reduction were made it would greatly retard flax spinning in America. It is largely such yarns that would be made on this side, either from PARAGRAPH 338-JUTE YARNS. foreign or domestic flax, for weaving purposes. Indeed, the only spinning that would be done would be at those large mills equipped to produce fine yarns. In view of the above facts, we ask the duties relative to flax yarns and linen goods remain undisturbed. We would, however, call the committee's attention to the duty of $5 put on flax straw. This duty we do not consider necessary for the protection of the American farmer. American grown flax straw costs less than Canadian. Canadian straw is the only straw it would be possible to import on account of cost. The Canadian straw would only therefore be imported when the American crop was deficient, either in quantity or in quality. If, therefore, this duty were removed, it would help the industry through bad seasons, without working to the detriment of the farmer. SUMMERS LINEN Co., By BERTRAND S. SUMMERS, Vice President. BRIEF SUBMITTED BY LUDLOW MANUFACTURING ASSOCIATES. In view of the proposed revision of the tariff, the Ludlow Manufacturing Associates present this statement why the jute industry should receive special consideration. Jute is a long vegetable fiber, the cheapest commercial fiber in the world. It is grown in India only. The chief products of jute manufactured by the Ludlow Manufacturing Associates, and the duties levied on each under the present United States tariff, are as follows: JUTE YARN (USED IN THE MANUFACTURE OF CARPETS). Jute yarns are made from free raw material, and the duty on the manufactured product under Schedule J, paragraph 338, of the present tariff law is as follows: "Single yarns made of jute, not finer than five lea or number, 1 cent per pound and 10 per cent ad valorem; if finer than five 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." Jute yarn is used principally in the manufacture of carpets, and the duties levied do not afford a large measure of protection against Dundee, the principal competitor, or Calcutta, the prospective and ultimate one, as shown by the tabulation of wages given in the following pages. BAGGING FOR COVERING COTTON. It is This bagging is used exclusively for covering the American cotton crop. made from free raw material, and is dutiable under Schedule J, paragraph 355, of the present tariff law, as follows: "Bagging for cotton, gunny cloth, and similar fabrics, suitable for covering cotton, composed of single yarns made of jute, jute butts or hemp, not bleached, dyed, colored, stained, painted, or printed, not exceeding 16 threads to the square inch counting the warp and filling, and weighing not less than 15 ounces per square yard, sixtenths of 1 cent per square yard.' As nearly all bagging used for covering cotton is made 45 inches in width, the above duty is equivalent to three-quarters of 1 cent per running yard. We give below a table compiled from the United States Treasury statistics showing for the years 1903-1912 the amount of bagging imported, the value, duties paid, price per running yard, and the equivalent ad valorem rate of duty assessed. PARAGRAPH 338-JUTE YARNS. Importations of bagging under duty of six-tenths cent per square yard, 1903–1912. The fabrication of jute was first begun in Dundee, which for many years held a monopoly of this form of manufacture, and is still the largest center of manufacture with the exception of Calcutta. According to Consular and Trade Report No. 3302, October 12, 1908, the great manufacturing centers of the jute industry are Calcutta, Dundee, Dunkirk, Hamburg, Vienna, Turin, Brooklyn, and Ludlow, Mass. Calcutta, however, overshadows them all, and it is against the competition from this source that the American jute mills most need tariff protection. The American mills have in Dundee a competitor paying less than one-half the American rate of wages. The machinery used in the American mills is from the same English shops as the Dundee machinery, but the machinery and machine supplies imported into the United States have to pay a duty of 30 per cent. This Dundee competition is similar to that met by other American industries, and against which others have a protection of from 35 per cent ad valorem upward, as compared with an average of 11.65 per cent ad valorem protection to American manufacturers of jute bagging for covering cotton. In Calcutta, now the greatest jute manufacturing center of the world, the American mills compete with a rival much more dangerous than Dundee. The Calcutta mills are situated alongside the exporting press houses, on tide water, at the port of shipment. They can buy their jute as it is received loose from the upcountry farms, thus saving the cost of export packing. The Calcutta manufacturers can also buy from week to week as their needs require and can select their jute most carefully. The following table shows the remarkable growth of the Indian mills, especially since 1900. A list of the mills, with the number of looms in each, is given at the end of this pamphlet: Jan. 1 Looms in mills in and around Calcutta. 1870. 1880. 1890. 1901. 1902. 1903. 1904. 1905. In addition to the looms given above, mills are now being built to be equipped with 1,300 looms additional, and it is generally understood in Calcutta that the total number of looms in that section will be increased in the course of the next two years by fully 10 per cent. The Calcutta mills are now employing about 250,000 operatives. These mills are largely owned by Dundee manufacturers, who find their Calcutta mills more profitable than those of Dundee, and in consequence Calcutta has grown at the expense of Dundee. The Calcutta mills are of the very best construction and are equipped with the best English machinery, imported free of duty. They are managed by the most |