from England to Liberia almost weekly. But if the duty of 30 per cent. is removed from American-made bottles, I shall continue to get them and send them to my refinery in Liberia. If it remains as it is, it will be cheaper to buy them in England. The collectors of the ports of New York and Philadelphia said they would join me in protesting against paying a duty on American-made bottles. As I have said, if a cask can come in free of duty, why cannot an American bottle? I think it is well to have a duty placed upon bottles made in foreign countries but not on bottles made in America. By Commissioner MCMAHON: Q. Did you know when you sent out your American-made empty bottles that there would be a duty on them on their return?-A. Not when I made my first consignment, but I did when I made my second consignment. Q. Did you know when you made your second consignment that you could get bottles cheaper from England?-A. I did; but I hoped that the protest, that the collector of the port asked me to write, would be listened to, and that I would get them in free on my importation of 1882. Q. Paragraph No. 1468 of Heyl's Digest reads: American manufactures of casks, barrels, or carboys and other vessels, and grain bags, if exported containing American produce, and declaration be made of intent to return the same empty, under such regulations as shall be prescribed by the Secretary of the Treasury. These are admitted free of duty. They are to be exported containing American produce and to be returned empty. It was held in this case that they were not returned in the same condition as when exported.-A. If I had brought them back empty, having sent them out empty, there would have been no duty upon them, of course. Commissioner OLIVER. I believe that petroleum barrels come back free of duty. Commissioner MCMAHON. Yes; that is under a special act. Paragraph 1487, Heyl's Digest, says: Barrels of American manufacture, exported filled with domestic petroleum and returned empty, under such regulations as the Secretary of Treasury may prescribe, and without requiring the filing of a declaration at time of export of intent to return the same empty. They are upon the free list. There has been some mistake in the codification of the law. Commissioner UNDERWOOD. A bottle sent out empty and returned empty is admitted free of duty; but when filled with palm oil, which is free of duty, the bottles are charged with a duty. Commissioner MCMAHON. That is done under paragraph 953, Heyl's Digest, which reads as follows: Glass bottles or jars filled with articles not otherwise provided for, thirty per centum ad valorem. Palm oil is otherwise provided for. We held in New York that that clause did not cover anything that was provided for, but they held in Washington that it covered everything that was not provided for in a bottle. Commissioner GARLAND. It is under a construction of the law, then, rather than a special provision of the law itself. The PRESIDENT. The law does not seem to be clear. The WITNESS. Nevertheless, I have to pay the duty. The collector of the port said that the simple insertion there of the words "Americaumade bottles" would cover the difficulty. WILLIAM F. ROCKWELL. LONG BRANCH, N. J., August 14, 1882. Mr. WILLIAM F. ROCKWELL, treasurer of the Miller Brothers Cutlery Company, of Meriden, Conn., and president of the American Pocket Cutlery Association, made the following statement: Our story is not a very long one, and will not occupy much of your valuable time. At a meeting of the American Pocket Cutlery Association, held in New York, August 2, 1882, it was unanimously agreed to respectfully submit for your consideration such changes in the tariff as our experience suggests as more equitable than the present ad valorem duty of 50 per cent. The average cost of material used by us is 20 per cent. of our production, and the balance, 80 per cent., is made up of labor. Our foreign competition comes from both England and Germany. The work in both foreign countries is done largely on the family plan, the cutlery being simply inspected and packed in the warehouse, the workmen usually furnishing such power, tools, and supplies as are needed. The variety manufactured both here and abroad is very large, but we submit a printed statement giving a sufficient example of the cost of the leading grades to illustrate the request that you will investigate the propriety of recommending a specific duty of 50 cents per dozen blades, instruments or erasers, and 30 per cent. ad valorem duty. As many foreign manufacturers have a resident partner in this country, it is obvious and admitted that many goods are invoiced and duty paid at the cost of labor and material, while the profit is added in this country. The amount of goods imported during the last year was about $2,000,000, an increase of 50 per cent. in the last three years. The amount manufactured here was about $1,350,000, an increase of not over 25 per cent. during the same time. While the quality of genuine American goods is almost universally conceded to be far superior to the average German and lower grades of English wares, and perhaps equal to the best imported, still the American good name has been greatly compromised by foreign manufacturers of low-grade cutlery adopting American patterns and American names, thus bringing an unfair competition on our cutlery that has made the trade devoid of profit. While we have many specially skilled workmen who can earn much more, the average wages paid by us is $2 per day, and we find it difficult to retain good men at that rate, as other branches of industry offer better remuneration. The average wages paid in England is less than one-half, and in Germany less than one-fourth the amount paid by us for the same class of labor. In the table referred to we have given the cost of material, labor, and incidental or factory expenses on American goods. We have deducted 35 per cent. (average duty) from the material on foreign imports. We have estimated English skill at one-half, and German labor at one-fourth the rate of our own. I have had printed a statement embodying these facts, which I will be happy to furnish to the Commission. It is signed by myself as president of the American Pocket Cutlery Association, by Mr. F. H. Catlin, president Northfield Knife Company, Northfield, Conn., and secretary of the association, and by Mr. Thomas W. Bradley, president of the New York Knife Company, Walden, N. Y., chairman of our executive committee. The following table shows the relative cost prices of American, English, and German pocket cutlery, with 50 cents per dozen blades specific, and 20 per cent. ad valorem duty added to the foreign goods: GERMAN. Description. 48-inch cap pruner, one blade, iron lined, wood covering.. Description. ENGLISH. 4-inch cap pruner, one blade, iron lined, wood covering.. 31-inch penknife, four blades, brass lined, pearl covering 47-inch cap pruner, one blade, iron lined, wood covering. I have also the honor of submitting to you a printed statement on this subject, which is entitled "pocket cutlery notes," in which a few additional facts are stated. It says: "The average price of pocket cutlery in this country is one-third less than it was ten years ago. Such companies as have made a moderato profit have done so by selling to the smaller trade, or by combining some other branch of industry with the manufacture of pocket cutlery. "The sale of American fine knives is greatly disproportionate to the whole amount of pocket cutlery consumed. As the labor account increases on fine knives, the difference in cost between American and foreign goods becomes more apparent. Fifty per cent. ad valorem duty upon wages 75 per cent. less than ours, helps but little to lessen the competition between us. “Our workmen are mostly imported. Necessity compels them to buy cheapest food at home; opportunity enables them to procure the best in this country. Their relative value to American farmers, whether in this country or in Europe, may be fairly represented by the relative prices of the staple items of consumption which are largely exported, to say nothing of the meat, vegetables, milk, &c., which they buy at good prices. "The prices paid in the New York wholesale markets for leading articles of food are as follows: "Showing a difference of 250 per cent. to encourage the farmer to raise good products for home consumption, and to favor the immigration of well paid mechanics to consume them." The following is the name and address of companies engaged in the manufacture of pocket cutlery in the United States, August, 1882: AMERICAN KNIFE COMPANY, Thomaston, Conn. EMPIRE KNIFE COMPANY, West Winsted, Conn. GARDNER MANUFACTURING COMPANY, Shelburne Falls, Mass. HUMASON & BECKLEY MANUFACTURING COMPANY, New Britain, Conn. JOHN RUSSELL CUTLERY COMPANY, Turner's Falls, Mass. WATERBURY KNIFE COMPANY, Waterbury, Conn. BEAVER FALLS CUTLERY COMPANY, Beaver Falls, Pa. The amount of capital invested in the business is $1,600,000; the value of goods produced last year was $1,350,000; the number of persons employed about 1,800, and the average wages paid per day was $2. I should be glad to answer any questions that any member of the Commission desires to put to me. By Commissioner MCMAHON: Question. You have stated that many foreign manufacturers have a resident partner in this country, and that goods are invoiced and the duty paid at the cost of labor and material, and the profit added in this country. Will you give the names of some of those manufacturers?-Answer. They have been given to me at different times in a confidential manner. Q. Are they leading manufacturers?-A. Yes, sir, they are. Q. Are the manufacturers you refer to English manufacturers-Rogers & Co.?-A. No, sir; I think not. Q. Or George Wostenholm?—No, sir. Q. Are they manufacturers who make a good many goods for this market-A. Yes, sir; they make many goods for this market. Q. Did the custom-house officers, who are bound by their oaths and by the law to appraise goods at the actual wholesale cost or market |