PARAGRAPH 351-NOTTINGHAM LACES.

ART. 6. All time lost putting up threads to be paid for. This applies only to machines which have been narrowed down.

ART. 7. Time-work to be paid for at the rate of $0.286 per hour. Men on time-work to make 50 hours per week.

Putting in comb leads, trick leads, and jack leads to be paid as time-work by the firm unless done by the company machinists.

In extraordinary circumstances the company is willing to pay time-work if company considers same a just claim.

ART. 8. All spooling to be done by the firm.

ART. 9. If by accident the weaver in going forward or backward should make a short length over 14 yards long, he shall be paid the rack price for same.

This in no way to vitiate the rule already in force of not paying for curtains made otherwise than called for by the order ticket.

ART. 10. Where in making nets or curtains the firm requires the use of an extra bar for draw threads, in order to get a perfect selvage, one-fourth cent to be paid on the existing rack price.

This will apply in all cases where bar is at work.

ART. 11. All nets to be paid on the same basis as punched-through curtain patterns. ART. 12. When beams are entered at back of bar, 50 cents extra will be paid.

ART. 13. All curtain machines to be cleaned Saturday morning, and while being cleaned must be stopped.

Price for warps and beams as follows: Six points-256 inches, $1.50; 300 inches, $1.50; 324 inches, $1.75; 360 inches, $1.75.

For all other warps and beams we will adopt the following plan, paying on a basis of $1 per warp, with 3 cents per hundred or portion of hundred threads for entering the warp, and in addition a price of 5 cents per hundred or portion of hundred threads for sleying the warp.

The basis for Madras beams will be 50 cents, and as these are all sleyed 8 cents per hundred or portion of hundred threads additional.

The basis for bar ground beams will be 75 cents, and as these are all sleyed 8 cents per hundred or portion of hundred threads in addition, making the prices as follows:

PARAGRAPH 351-NOTTINGHAM LACES.

EXHIBIT C.

Memorandum of English curtains bought in Canada from R. J. Whitla & Co. (Ltd.), as per attached bill.

[Prices on same are Canadian cost after they had paid a 25 per cent Canadian duty, from which the English cost, as stated, can be ascertained. Samples themselves are submitted under separate cover.]

PARAGRAPH 351-NOTTINGHAM LACES.

Of above yarn, valued at $103,852.82, $32,807.12 was imported yarn, on which we paid the various Payne-Aldrich duties. The same yarn, under the proposed Underwood bill, would cost us $27,767.90, a saving of $5,000.

So that:

Any ordinary change in soaps, starches, etc., comprising "Other materials," would practically make no appreciable difference.

Above figures have been taken from records dating from October 1, 1912, to January 1, 1913, during which time there were no abnormal factors.

Mr. HARRISON. Bearing upon one of the arguments that you have just made, Mr. Dimmick, you will probably recollect that the metal schedule which is proposed by this committee and which has passed the House, reduced the rate on machinery from 45 to 25 per cent ad

valorem.

Mr. DIMMICK. I have not followed it. I myself am perfectly willing to admit the general proposition that we have reached the maximum of tariff protection, and that we should tend in that direction; but it seems to me that our first move should be in the direction of getting our plants, at least, on the same basis as our foreign competitors would be, namely, by the elimination of the duty which is now naturally a part of our plant assets.

Mr. HARRISON. It has been the endeavor of this committee in handling such schedules as they have already framed bills upon to recognize those facts, and if possible, consistent with revenue, balance those very features, and I just pointed out to you one respect in which it might affect your business.

Mr. DIMMICK. That is to say, the duty has been reduced how much, sir?

Mr. HARRISON. From 45 to 25 per cent on machinery.

Mr. DIMMICK. That would be a move, in my judgment, in the proper direction.

The CHAIRMAN. You are a manufacturer of curtains?

Mr. DIMMICK. Yes, sir.

The CHAIRMAN. Do you manufacture them both out of linen and cotton?

Mr. DIMMICK. Only cotton.

The CHAIRMAN. Do you know what is the total production of lace curtains in this country?

Mr. DIMMICK. As I understand, this past year it has been approximately eight and a half million dollars.

The CHAIRMAN. That includes cotton and linen?

Mr. DIMMICK. No; just cotton.

The CHAIRMAN. Eight and a half million dollars?
Mr. DIMMICK. Yes.

PARAGRAPH 351-NOTTINGHAM LACES.

The CHAIRMAN. Do you know how much linen was used?

Mr. DIMMICK. No; I could not tell you that. I might say that I am not by profession a manufacturer. I am handling largely the financial end of this, and information of that sort would be rather difficult for me to give.

The CHAIRMAN. Under this paragraph No. 351, which bears a rate ranging from about 50 to 52 per cent ad valorem, in 1910 there were two hundred and nineteen millions of imports, and in 1912 there were two hundred and seventy-eight millions of imports, which covers the entire schedule, both linen lace and cotton lace. That looks as though there was evidently a block in the schedule and that the importations were small, if these Treasury figures are right, as compared with the American consumption. Can you tell me where the most competitive point in the schedule is?

Mr. DIMMICK. The most competitive point is in the high grades, 10 points and up.

The CHAIRMAN. Both for cotton and linen?

.Mr. DIMMICK. I can not speak at all about linen.

The CHAIRMAN. In the lower grades of lace curtains there are practically no importations, are there?

Mr. DIMMICK. There are practically no importations, but I believe from the figures which are shown in our exhibit as to the English curtains that are obtained through Canada, in our endeavor to sell goods there, it is very equally balanced. Out of four low-grade curtains, that schedule shows that two, after allowing for our duty, were slightly above our selling price and two were slightly below. They were taken haphazard a year ago and not with reference to this hearing or on this subject, but simply with reference to whether or not we could extend our trade, and our selling force felt that they were fairly representative of the line, but, of course, they only cover four specific curtains.

The CHAIRMAN. Of course, there are some grades of lace curtains that are luxuries of the highest class, and if they are reasonably competitive there would be no objection to having a pretty high rate of duty on them. There are lower grades of curtains that come closer to a necessity, and the committee would be disposed to put a rate on them where they can be reasonably obtained. Of course, they are all under one paragraph. Can you make a suggestion to the committee from a practical standpoint as to how we could differentiate between the low grades of these goods so that we could put a lower tax on the lower goods and bring in some importations, and yet get a better revenue from the higher grades of goods, which are strictly luxuries?

Mr. DIMMICK. I should want to think that over. I could not off-hand. I would like to say this, that the total domestic output in the last three or four years has fallen off. It has decreased from somewhere about $12,000,000 to $8,000,000, while our capacity of output has been increasing, and the decrease is due, in my judgment, largely to the fact that Nottingham lace curtains are in competition from time to time with curtains of a different type. During the past summer the consumption of Nottingham curtains, as such, not against the patterns themselves, but against other makes, has fallen off almost 50 per cent.

PARAGRAPH 351-NOTTINGHAM LACES.

The CHAIRMAN. That is due to the physical fact that there are a number of Nottingham lace machines allowed to come in here free, and an industry was started in this country?

Mr. DIMMICK. No; I think not, sir. The Lever lace machines have been permitted, but I do not think any Nottingham machines, at least not since I have had anything to do with this company, have ever been imported without a tariff.

The CHAIRMAN. Do not the Lever laces compete, in a way, with the Nottingham laces?

Mr. DIMMICK. Not at all. They are entirely separate and distinct, and we think it is only fair to state that the lace-curtain industry, which is separate and distinct, and which we represent, never having gone into the other, should be treated absolutely separately and apart.

The CHAIRMAN. That is the point I am making. You say you are not able to differentiate now. If you have a view of your own, the committee may not adopt it when you suggest it

Mr. DIMMICK. Yes.

The CHAIRMAN. But, as you are a practical manufacturer, and they are the men whose views we want about the classification, probably, after reading the classification, you will be able to arrange a classification that would differentiate between these various grades, and I would be pleased if you would do that at your leisure. Mr. DIMMICK. I will be very glad to do it, indeed.

The CHAIRMAN. Are there any further questions, gentlenen? [After a pause.] That is all, Mr. Dimmick.

STATEMENT OF WILLIAM L. TURNER.

Mr. Turner was duly sworn by the chairman.

The CHAIRMAN. Proceed, Mr. Turner.

Mr. TURNER. We beg to present our views in regard to paragraphs 351 and 350 of the existing tariff law, relating to Nottingham lace curtains and Lever laces. We call attention to the fact that these articles are distinct from each other, made on different machines, to meet different classes of demand, and are imported and distributed under different conditions. Each of them also is quite distinct from embroideries, although the latter are provided for in paragraph 349, along with certain classes of laces. Some misapprehension has apparently arisen at hearings in previous Congresses, owing to confounding together statements relating to these three differing classes of articles.

The Nottingham lace-curtain industry has been established on comparatively firm foundations since about 1897, and now supplies more than 90 per cent of the American demand for these articles. The business of manufacturing lace on the Lever and Gothrough lace machines, although attempted on a small scale a generation ago, has attained its present development only since the enactment of the tariff of 1909. The two industries stand, therefore, upon somewhat different footing and will be discussed separately in this brief. The Nottingham lace-curtain industry has vindicated its right to exist by reducing retail prices to the consumer; the Lever lace industry