graph 267; Schedule J, flax, paragraph 287; Schedule K, wool, para graph 301; Schedule L, silk, paragraph 324.

The Leolastic folk are manufacturers of merchandise covered by the above paragraphs. We know of no trust engaged in the man facture of any articles covered by the said paragraphs. On the con trary, the competition is keen, even fierce. There are no other para graphs in the bill covering articles of merchandise on which the work is so individual or where there is a greater mob of competitors Under the paragraphs in question there are no less than 1,000 con cerns engaged in legitimate business" of manufacture in 27 States of the Union whose business will be "injured or destroyed "1 if the rates shall be fixed as proposed. Besides the plants engaged in the manufacture of the articles covered are those furnishing them with materials, supplies, tools, machinery, buildings, etc., to say nothing of those who furnish the tens of thousands of employees of such plants with shelter, food, and furnishings.

Notwithstanding the duties imposed by the present tariff law which are much higher than the proposed rates of duty, there are large importations of Eurasian-made goods of the kind under con sideration. While the Chinese, Japanese, and Hindus are prohibited by our laws from further immigration, yet they produce the good in question in large quantities and, under the proposed bill, they can flood this country with goods made in mills which work in some case the entire 24 hours and for 7 days in the week. We are limited by law in this country to 6 days' work of 8 or 9 hours each. How can we meet such competition without a fully protective tariff?

Under the tariff act of 1894 there were very large importations of the merchandise covered by the above paragraphs from Eurasian countries, which were the product of the plants in operation at the time of the passage of the act. Had the rates of that act been mad permanent, Europeans and orientals would, with new plants, hav gotten the bulk of the American work and wages. They surely wil under the rates of the proposed bill.

2

The proposed bill does not correspondingly reduce the duty of yarns, cotton, flax, wool, and silk. The Europeans and Asiatics hav their yarn free, while their American competitors, otherwise handi capped, have higher cost yarns, materials, buildings, machinery, an tools. Eurasian existing plants will all run full time maximum prod uct and therefore minimum cost, and send their surplus to the Unite States to bury American workers, working one-half time, one-fourt time, or minimum product at maximum cost. There is no joy fo workers on one-half time or one-half rations, and for the tool-owning workers no wages at all, and pawn of the tools ending in loss eve of the tools after working without wages.

The proposed bill will make it no longer prudent for individual or corporations to sink their money in expensive plants without the organize on a sufficiently large scale to also have plants abroad so a to be prepared to salvage the wrecks caused by jerks of downwar jumps in tariff rates. Internationally equipped concerns can stan up under these circumstances, as they can do the work abroad or i

1 President Wilson promised that no "legitimate business" should be "injured destroyed."

2 New York Sun, May 4, 1913, p. 16, quotes from Japanese Government records, averag wages of weavers, males, 22 cents a day; females. 18 cents a day.

the United States of America, as the proposed rates make it economically necessary. There are no such international concerns working under these paragraphs at this time and all are unprepared, bewildered, trending to panic.

Under the existing rates of duty the workers of the United States are brought into keen and active competition with Eurasian workers, showing most conclusively that the present rates are not too high. Should the rates be materially lowered, the manufacture of this class of merchandise will be taken from the workers of America and transferred to Eurasian workers, while American workers go one-half unemployed. We earnestly urge that the present rates be maintained, or at least a more moderate reduction than the one proposed.

Par. 267.-COTTON BANDINGS, BELTINGS, ETC.

B. & J. DICK (LTD.), PASSAIC, N. J., BY J. F. LINN, MANAGER; E. H. GRIFFITH, SALES MANAGER; AND LOUIS KAUER, AUDITOR.

Hon. CHARLES F. JOHNSON,

JUNE 5, 1913.

Chairman, United States Senate, Washington, D. C.

DEAR SIR: We respectfully submit the following facts for your committee's consideration, with the hope that you may make such recommendation as may be necessary to obtain a new classification for our product of manufacture.

BALATA BELTING.

Under the present tariff a duty of 30 per cent ad valorem is paid on balata belting. (See par. 267.)

Under the proposed new tariff bill a duty of 15 per cent ad valorem is to be paid on balata belting (see p. 68, par. 271, lines 22, 23, 24, and p. 69, line 1), reading as follows:

Belting for machinery made of cotton or other vegetable fiber and india rubber, or of which cotton or other vegetable fiber is the component material of chief value, 15 per cent ad valorem.

In the manufacture of our balata belting there is no india rubber used whatsoever.

We use exclusively balata and cotton.

Balata is the gum of the boele tree and is an entirely different material from india rubber. As a matter of fact, we are in active competition with india-rubber belting.

From reading the above paragraph No. 271 in the proposed new tariff bill we understand that the article, whether balata belting or other material, must be composed of materials of which cotton or other vegetable fiber is the component material of chief value.

We therefore respectfully submit the statement that in the manufacture of our balata belting, cotton or other vegetable fiber is not the component material of chief value, for the reason that in the manufacture of our balata belting we use cotton duck and pure balata, and that the balata is by far the component material of chief value. In explanation of this would say that our balata belt is com

973-VOL 2-13-10

posed approximately of two-thirds weight of cotton duck and approximately one-third weight pure balata. (Balata is used for frictioning and solidifying purposes as well as waterproofing.)

Taking the present market price on the two materials used in our belting, a pound of cotton duck, such as we use, is worth approximately 26 cents. A pound of pure balata after it is impregnated into the cotton duck is worth approximately $1.05 per pound. The result would be as follows:

of 1 pound cotton....

of 1 pound pure balata....

$0.173

.35

Which clearly shows that the component material of chief value is balata, or twice as much as the value of the cotton.

Previous to about July, 1909, there was very little balata belting imported into the United States. About July, 1909, we imported all of our balata belting, and up until the time when our factory at Passaic, N. J., was completed and ready for operation, which was approximately March, 1911, we imported our balata belting to the amount of $306,532, and on this amount we paid duty to the extent of $91,959.60.

Since July, 1909, to February 28, 1913, we have spent here for our land and buildings, machinery, furniture, salaries, and factory wages, general expenses, rent, and raw material, $1,164,797.71. We pay high wages to our factory workmen, our average wage being $18 per week; 64 per cent receive $20 per week or over, 36 per cent receiving $12 per week or over.

Since July, 1909, and during the period that we imported our balata belting, we eliminated, so far as the user of belting is concerned, the duty or tariff which we paid, hoping that in later years our volume of business would increase to such an extent that we would be remunerated and gradually enabled to show a profit. We find ourselves to-day in the position of a net loss, approximately the amount that we paid the United States for duty.

We attach hereto a statement showing the expenses to which we have been put in endeavoring to introduce our article and the income derived therefrom, showing that during the period from 1909 to the present time, we have operated our business at a net loss of $83,116.40. We use exclusively in our manufacture cotton duck of American manufacture.

The raw balata which we use is imported mostly from South American countries.

The brown cover on our belt is of no real value, so far as the belt is concerned, and is simply put on to make a finished appearance. We are inclosing a piece of raw material in what is known as "sheet" form, also a piece cut from what is known as "block.”

We also inclose a sample showing the general makeup of our belt, also showing the brown covering.

In view of the above statements and the fact that the manufacture of balata belting in the United States is in its infancy (established March, 1911), we seek protection, and respectfully ask that if in the judgment of Congress it should be wise to reduce the tariff upon machinery belting made of cotton duck, or other vegetable fiber and India rubber, that a separate provision and classification be made of balata belting and that the tariff duty thereon be maintained at its present rate, 30 per cent, which rate never had and does

not now afford such protection or special privilege as either to create a monopoly or to render the profits of the American manufacturer large or excessive, or to create a burden upon the American factory owners who use Balata belting.

[Inclosure.]

Statement of expenditures of R. & J. Dick (Ltd.), Passaic, N. J., from July 1, 1909, to Feb. 28, 1913.

Average wages, $18 per week; 64 per cent receiving $20 or over; 36 per cent, $12

or over.

JOSEPH L. PORTER CO. (INC.), 61-63 LEONARD STREET, NEW YORK, PER CHARLES S. KING, TREASURER.

Senator SIMMONS,

NEW YORK, May 3, 1913.

Chairman Senate Finance Committee, Washington, D. C.

DEAR SIR: Referring to the new tariff, a copy of which I have before me, I respectfully call your attention to what perhaps are oversights and omissions in the wording of the paragraphs enumerated, as follows:

Schedule I, paragraph 271:

Bandings, belting, bindings, etc., not embroidered by hand or machinery.

I would suggest, after the word "embroidered," inserting the words "or figured," so that the paragraph would read:

Bandings, beltings, bindings, etc., not embroidered or figured by hand or machinery.

For, as you will see per the inclosed exhibit and the notations thereon, fancy narrow fabrics and trimmings as a rule are not embroidered; the figure effects are produced in a loom by shuttles or warp threads.

Schedule L, paragraph 328:

Ribbons, bandings, etc., not embroidered by hand or machinery.

I would suggest the words "or figured" be inserted, after the word "embroidered," so that the paragraph will read:

Ribbons, bandings, etc.,not embroidered or figured in any manner.

Paragraph 329. I would suggest inserting the word "trimmings.' which seems to have been omitted.

Schedule N, paragraph 347:

Braids-Featherstitch braids, fringes, etc.

I would suggest inserting the word "trimmings" also, so that the paragraph would read:

Braids-Featherstitch braids, trimmings, fringes, etc.

The word "trimmings" I do not seem to find in any of the sched ules, and unless this word is inserted there is liable to be some con fusion in the application of the new tariff, for in the old tariff prio to 1909 the importers sued the Government, and the case was carried to the Supreme Court, because the articles referred to on the inclosed exhibit were not more clearly enumerated. I was a witness for the Government at that time, and the suit was finally won in the Supreme Court, for we clearly proved that these goods were trimmings and not bindings and bandings in the sense that the importers contended All of these fancy articles are essentially luxuries and particularly on the cotton end of the line, the difference between the foreign and the domestic labor cost is greatly in favor of the imported goods, and as a matter of fact, even at the present rate of duty (60 per cent) it is impossible for the domestic manufacturers to compete on many lines even though they use a great deal of southern cotton yarn, which i the cheapest yarn they have access to.

I should be very glad indeed to come to Washington and go over these or any other items in the tape, binding, or trimming schedules with you if you would care to have me, for I feel competent to speak authoritatively on most all these articles, as I have quite an intimate acquaintance with both the foreign and domestic manufacturing end

J. ARTHUR Adamson, PHILADELPHIA, PA.

The FINANCE COMMITTEE,

United States Senate, Washington, D. C.

GENTLEMEN: I would respectfully call your attention to the drastic reductions made in the duties of the proposed new tarif on the class of cotton goods embraced in Schedule I, section 267 known as bandings, beltings, bindings, bone casings, cords, garters ribbons, tire fabrics, suspenders and braces, tapes, bindings, webs or webbing and the same class of goods in linens contained in Schedule J, section 287.

These goods both in cotton and linen are now subject to a duty of 60 per cent and it is proposed to change this to 25 per cent for cotton and 30 per cent for linen.

I would also direct your attention to the wording of Schedule I, section 271, H. R. bill 10, lines 11, 12, 13, 17, 18, 19, in which the pre