TABLE G.-Statement of annual exports from each United States port. The "Other ports" are Laredo, Eagle Pass, and Port Arthur, Tex.; Portland, Me.; San Francisco; T As this issue was about to go to press, we received the following quotations on rep resentative qualities of white cotton yarn, packed in cases f. o. b. Liverpool, fro one of the leading spinners of Lancashire. We have reduced the prices to America money, and annexed the American prices for corresponding grades and size. Th English terms are net cash 45 days. The American terms will average net cash 2 NORTH CAROLINA COTTON MANUFACTURERS' ASSOCIATION, BY C. E. [Submitted May 26, 1913.] To Senator Charles F. Johnson, chairman, and Senators Hoke Smith Yarns of commerce, however, are just as much a finished article of Second, as to the cost of producing yarns in the United States as One of the leading elements entering into this high cost is labor, The "Other ports" are Laredo, Eagle Pass, and Port Arthur, Tex.; Portland, Me.; San Francisco; Ta- coma, Seattle; Portland, Oreg.; San Diego, Cal.; Fernandina, etc. As this issue was about to go to press, we received the following quotations on rep- resentative qualities of white cotton yarn, packed in cases f. o. b. Liverpool, from one of the leading spinners of Lancashire. We have reduced the prices to American money, and annexed the American prices for corresponding grades and size. The English terms are net cash 45 days. The American terms will average net cash 20 NORTH CAROLINA COTTON MANUFACTURERS' ASSOCIATION, BY C. E. HUTCHISON, PRESIDENT. (NO ADDRESS GIVEN.) [Submitted May 26, 1913.] To Senator Charles F. Johnson, chairman, and Senators Hoke Smith and Hughes, Senate Finance Subcommittee, Washington, D. C. GENTLEMEN: I wish to call your attention briefly to the yarn section of Schedule I. First, I wish to state that there is an impression with some that yarns are not exactly a finished article of manufacture, inasmuch as they are mostly used for weaving and knitting fabrics, and also from the fact that many cotton mills in this country both spin and weave or knit, as the case may be. Yarns of commerce, however, are just as much a finished article of manufacture as finished woven cloth, hosiery, underwear, etc., and, as Mr. Cramer has pointed out to you in one of his briefs, yarns are subject to even more critical examination than woven fabrics, and any slight imperfections are more easily observed than in the woven or knitted fabrics, and they are therefore entitled to as much consideration in the framing of tariff laws. Second, as to the cost of producing yarns in the United States as compared with the cost in foreign countries, I will say that, owing to the very nature of the policy of our Government, which for so many years has fostered the high cost of living, it is almost impossible for us to manufacture goods in the United States as cheaply as they can be made in foreign countries. One of the leading elements entering into this high cost is labor, and none of us begrudge the laborer his hire. As a matter of fact this high-priced labor has produced in the United States a higher standard of citizenship among the working classes than in any other country in the world, and any considerable reduction in the price of labor we would seriously deprecate. While on this labor subject I wish to bring out a point that I am not sure has been brought to your attention in connection with the textile industry, and that is the question of "efficiency," a subject that so many delight to dwell upon, and rightly, too. It has been charged that the way to meet the reduced cost of manufacturing cotton goods so that we can compete with Europe Japan, etc., in making yarns is to teach our operatives greater effi ciency. We do not doubt for a moment the sincerity of those making this statement, but when it is applied to the manufacture of cotton yarns it is not altogether tenable, but in some lines of manufacture where skill and physical endurance_enter largely into the cost their contention is absolutely correct. In a mill spinning and twisting yarns in all their different processes this question of increased effi ciency will not apply, for the reason that all the machinery in cotton mill is regulated to run at uniform speeds to obtain the best results; that is, each machine is set to run so many revolutions, and production is based on these speeds, and the operative, having so many machines, owing to the process, to tend, can do just so much and no more, and necessarily can not turn out more work than the speed of the machines will produce, for instance, a spinning frame the spindles of which make, say, 10,000 revolutions per minute, wil produce so many ounces or pounds of yarn in a given number of hours. It may be said, Why not let the operative become more effi cient and tend more machines? I will answer this by saying that whenever a man, woman, boy, or girl working in a cotton mill be comes familiar with their work they soon find that the maximum limi of the machinery they can operate, and inasmuch as the speeds car not be increased or reduced at will their efficiency stops at that point This is the situation in the textile industry, which makes it very dif ferent from other lines of labor where skill and physical endurance play an important part. Now, as to the proposed duty on yarns, will say that as this is to be an ad valorem duty, which as applied to yarns, cloth, knit goods etc., made from yarns, as a matter of fact works to a great exten automatically, the duty on yarns should be practically the sam percentage as on cloth in which given numbers of yarn are used in the construction thereof, as the increased value of the cloth make the actual duty on the cloth just so much more per pound. The schedule on yarns as proposed by the American Cotton Manufac turers' Association, which was 10 per cent on Nos. 1 to 9, inclusive 12 per cent on 10's, inclusive, etc., is considered by all competen mill men to be as low as the mills can stand at the present time in competition with the foreign manufacturers, and we sincerely hop that you can see your way clear to adopt rates not lower than tha schedule. Referring to the brief recently filed with you by Mr. L. W Parker, asking that the duty on yarns as named in the bill passed by the House be raised 24 points, will say that Mr. Parker, who is pri marily a cloth manufacturer, has repeatedly pointed out that the duty on yarns as named in the House bill is too low, particularly o the coarser counts, and when he made the recommendation to rais this 2 points he no doubt had in mind that this was probably the best that could be obtained at this time. This, however, should b 5 points over the bill as passed by the House. We all realize that this whole proposition is an experiment, as n one can foretell with any degree of accuracy just what the actua result to the manufacturers will be, but if we are to err at all as t what is the proper reduction to be made at this time it is better to |