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England, 12 drums to each winder.

United States, 18 to 24 drums to each winder.

Production, piece rates, and earnings.

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SELF-ACTING SPOOLERS.

(Winding from a supply spool to spool ready for the trade.)

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CLARK THREAD CO., NEWARK, N. J., BY A. H. GRAVE.

REASONS WHY THE PROPOSED TARIFF ON 200-YARD SPOOL COTTON SHOULD NOT PREVAIL.

WASHINGTON, D. C., April, 1913.

The COMMITTEE ON FINANCE, United States Senate:

The present tariff on spool cotton (par. 314) reads as follows:

Spool thread of cotton, crochet, darning, and embroidery cottons, on spools, reels, or balls, containing on each spool, reel, or ball, not exceeding one hundred yards of thread, six cents per dozen; exceeding one hundred yards on each spool, reel, or ball, for every additional hundred yards or fractional part thereof in excess of one hundred, six cents per dozen spools, reels, or balls; if in skeins, cones, or tubes, containing less than six hundred yards each, one-half of one cent for each one hundred yards or fractional part thereof: Provided, That in no case shall the duty be assessed upon a less number of yards than is marked on the spools, reels, cones, tubes, skeins, or balls: And provided further, That none of the foregoing shall pay a less rate of duty than twenty per centum ad valorem.

Which is briefly a duty of 6 cents per dozen of 100-yard spools, or 12 cents per dozen of 200-yard spools, the universal length used in the United States.

The statistics prepared by the Treasury Department (see Tariff Handbook, p. 209, par. 260) show that the tariff is only 22.95 per cent, this percentage being reached by taking the value of the importations and the duty paid. This, however, is most misleading, as the importations consisted almost entirely of coarse crochet and embroidery cottons upon which a duty of 20 per cent was levied, as per the last clause of the section.

To show that the figures are erroneous it would be necessary for 200-yard spool cotton to be sold abroad in the neighborhood of 55 cents a dozen to make the duty at the rate of 22.95 per cent reach the present rate of 12 cents per dozen. Of course the price of 55 cents is far beyond the price obtained abroad and is very considerably higher than the price now ruling in the United States.

As can be readily seen from the following table which represents the net wholesale price-not consumer's price-of five of the popular brands 200-yard spool cotton of England, Ireland, Belgium, and German manufacture, and from which you will observe that the average wholesale price is about 29 cents per dozen, and that the present duty of 12 cents per dozen on 200-yard spool thread of cotton is equivalent to about 42 per cent of the foreign wholesale selling price, as follows:

The English Sewing Cotton Co.. (Ltd.), Manchester, England: "Arkwright" best 6 200 yards, soft finish 18/-per gross, less 15 per cent and 3 per

cent=net

Cents.

.per dozen.. 29.862 Present duty.. .do.... 12 Alost Thread Co., United Spinning & Thread Manufacturing Co., (Ltd.), Alost, Belgium: "F & F. R." best 6/200 yards, 16/-per gross, less 10 per cent and 4 per cent=net..

per dozen.. 28 Present duty... ..do.... 12 Hicks, Bulloch & Co. (Ltd.). Sackville Thread Works, Belfast, Ireland: "Shamrock" best 6/200 yards, 18/-per gross, less 10 per cent and 4 per cent=

net..

Present duty..

.per dozen.. 31.54 ..do.... 12

Jonas Brook & Bros. (Ltd.), Meltham, England, Brook's Glace 200 yards, 1/44
per dozen, less 144 per cent=net..
Present duty..

.per dozen.. 29 ..do.... 12

Zwirnerei & Nahfadenfabrik, Goggingen, Germany: Patent 6/200 yards, 14.25
marks per gross, less 10 per cent and 4 per cent=net
Present duty....

The average of the above prices shows:

.per dozen.. 24. 40 ..do.... 12

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Equivalent to an average wholesale price of 28.68 cents per dozen; average duty of 12 cents per dozen. Equivalent to 41.85 per cent duty.

There are many more cheaper brands made by the above and other foreign manufacturers.

It should also be noted that if the proposed rate of 15 per cent ad valorem becomes a law the duty on 200-yard spool cotton will be reduced from 12 cents per dozen to about 4 cents per dozen, a reduction of 663 per cent from the present rate.

The new tariff, too, is unfair in the way that it taxes yarns, the basic or raw material from which spool cotton is manufactured. The duty proposed on yarns, in the principal numbers used for thread making being 20 and 25 per cent (representing over 90 per cent of sales of 200-yard spool cotton). In other words the single yarn upon which a large amount of labor and capital has to be expended to bring it to its finished state for spool cotton, is more favored than the finished article. Thus, the tariff, if passed in its present form, is inconsistent and unjust, and will give undue advantage to foreign compe

tition, as in the proposed tariff the finished marketable product 200yard spool cotton has a protection of but 15 per cent, whereas the single yarns receive a protection of 20 per cent and 25 per cent.

We would therefore respectfully urge that we should have a slightly higher rate of duty, say 10 per cent on spool cotton, than that given to fine yarns on account of its being the finished product. This has been recognized in the case of bleached cotton cloths which have been given under the new tariff, a duty of 5 per cent over yarns, also their raw material, and not as highly a finished product as 200-yard spool cotton.

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Spool thread of cotton, crochet, darning, and embroidery cottons on spools, reels, or balls, or in skeins, cones, or tubes, or in any other form, 15 per cent ad valorem.

Payne law.

Gray cotton thread and yarn, specific duties:

Nos. 1's to 15's, 2 cents per pound.

Nos. 16's to 30's, cent per number per pound additional.

Nos. 31's and above, cent per number per pound additional provided that no number pay less than 15 cents.

Calculated equivalent ad valorem rates:

Nos. 1's to 15's, 19 per cent.
Nos. 21's to 30's, 16.05 per cent.
Nos. 31's to 40's, 29.98 per cent.

Nos. 41's to 50's, 29.54 per cent.
Nos. 51's to 60's, 26.37 per cent.
Nos. 71's to 80's, 29.33 per cent.

Nos. 91's to 100's, 36.15 per cent.

Par. 257.-BLEACHED COTTON, ETC.

WINDSOR PRINT WORKS, 65 AND 67 WORTH STREET, NEW YORK CITY, BY CHARLES MARVIN HOWARD, VICE PRESIDENT.

NEW YORK, May 19, 1913.

To the Honorable Senators, Charles F. Johnson, chairman; Hoke Smith and William Hughes, members of the subcommittee of the Finance Committee:

COTTON PRINTING INDUSTRY.

According to the latest figures available (1911), it was estimated that there are in the United States about 392 printing machines, capable of a daily consumption of cloth of 98,000 pieces, or, per workng year of 300 working days, 29,400,000 pieces; or, figuring 50

yards to the piece, 1,470,000,000 yards. This is of printed material alone and does not include dyed fabrics. The industry has been progressive and has developed from a low quality of goods ranging from 44 cents to 6 cents per yard, to the finer and higher grades selling up to 60 cents or more. We can now produce workmanship equal to that of any country in the world, but the drastic reduction of tariff will undoubtedly bring in an unfair foreign competition, particularly on the finer grades, and would discourage the progress already made. The important point of domestic competition must not be lost sight of; it is most active and persistent and keeps prices down to the lowest point. This is in direct contrast to the English field where the industry is practically controlled by a trust called "The Calico Printers Association," they controlling, it is estimated, 80 per cent of the production, and can, therefore, control prices. The American printer keeps the cost of printing down only by efficiency of organization, large runs per pattern, and consequent greater production per machine.

The fact must not be overlooked that the foreigner has and is seeking the markets of the world and can handle them, owing, aside from manufacturing advantages, to better shipping and banking connections.

Our labor is more highly paid. To our general help, the lowest grade of employee, we pay wages 50 per cent greater than those paid in Great Britain. On eight other positions in a print works, the only English data available, we pay wages ranging from 80 to 250 per cent greater; and as labor, we estimate, is 55 per cent of our cost of production, this item alone must be appreciated.

It may not be out of place to state also that Canada has a tariff of 25 per cent on gray and bleached cotton and 35 per cent on printed cotton goods, which shows that Canada appreciates the distinction between goods that are only bleached and those that are gone through the later processes of finishing.

In accordance with my suggestion accepted by you, I present herewith certain amendments I would suggest be made to Bill H. R.

3321.

These amendments are based upon the bill as passed by the House May 8, 1913, and deal with the cloth schedule in only so far as it affects cotton cloth when bleached, dyed, printed, etc., as appearing in paragraph 257, page 66, lines 19, 20, 21, and 22.

OBJECTS.

I. We feel the duties prescribed on gray cloths in the bill H. R. 3321, as passed, are so low that in view of the additional low duties placed on finished material, an extra tariff is absolutely necessary on the finished goods to enable the American printer to overcome the low tariff fixed on gray cloth, with other considerations hereafter outlined, and exist. This is particularly necessary on fine wash fabrics-i.e., printed, dyed, and mercerized fabrics of fine yarns-which fabrics are being developed by American printers and require greater protection to perfect this development.

II. As dyeing, printing, and mercerizing and other processes are many steps in advance of bleaching, a substantial distinction should be made between goods bleached only and those otherwise finished.

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