PRICES. Prices of domestic pencils are available, but there are scarcely any quotations available on foreign pencils, since almost none are being imported. The price of good quality imported pencils from Denmark is about the same as or a little higher to the dealer than American pencils of equal quality. German and Japanese pencils do not compare in quality with American, and are not being bought at the prices quoted. German pencils at the present time are made mainly of white woods and are not to be compared with her prewar pencils. It is stated by an American manufacturer, who returned from Germany about the end of the year 1919, that prices in Germany have advanced 300 to 600 per cent. Wholesale prices of American pencils have increased about 25 to 40 per cent over the prewar price. TARIFF HISTORY. Pencil leads have been assessed for duty since 1883 at 10 per cent ad valorem, except under the act of 1909. They were made dutiable at specific rates by that act at three-fourths of 1 cent per ounce for black lead, 14 cents for colored lead, and 2 cents for copying lead. Lead pencils were assesssed for duty by the acts of 1883 and 1890 at 50 cents per gross and 30 per cent ad valorem. The act of 1894 omitted the specific rate of 50 cents per gross and assessed imports at 50 per cent ad valorem. The acts of 1897 and 1909 changed the rate to 45 cents per gross and 25 per cent ad valorem. The act of 1913 imposed a duty of 36 cents per gross, but in no case less than 25 per cent ad valorem. COMPETITIVE CONDITIONS AND TARIFF CONSIDERATIONS. The present situation appears to be quite favorable to the American pencil manufacturer. Imports for the calendar year 1919 were valued at $35,118, while exports reached a total value of $3,565,347. Before the war imports. and exports practically balanced, with imports in excess of exports. The American export business has expanded remarkably since the beginning of the war, due no doubt to the fact that German exports to foreign markets were cut off. German competition was the most serious prior to the war. At present the best information obtainable from Germany in December, 1919, leads to the conclusion that it will be quite a long time before German pencil makers can recover from the effects of the war. Prices have increased on pencils from 300 to 600 per cent, and orders are taken only on the basis of prices which may prevail at the time of shipment. The principal causes for the enormous increase in prices for German pencils are given as follows: Stocks of cedar, which come from the United States, are depleted and the necessary import license to obtain new supplies is difficult to secure. The fuel situation has permitted plants to operate only part time. Wages have increased enormously, and hours of work have been reduced to eight a day, with a half day on Saturday, and the output per hour has decreased. Alder and pine are being used in place of cedar and these make a poorer quality pencil. Japan has begun the manufacture of pencils, but so far the quality of the product has not been such as to offer serious competition in the American market. Danish pencils of good quality are imported, but the price is not favorable. "Kohinoor" pencils, made by L. & C. Hardtmuth, now of Czechoslovakia, are not now being imported in large quantities. They compete directly with the highest grade pencils, but not so much with the common pencils which make up the bulk of the trade. They sell on the basis of quality and established reputation. The Pencil Manufacturers' Association has submitted a statement to the Tariff Commission containing proposed revisions of the paragraphs relating to pencils and pencil leads, of which the following are here noted: PARAGRAPH 378, PENCILS. (1) Pencils "not metal" should be omitted, and if lumber crayons or carpenters' pencils are intended by this term, they should be so specified or stated as mechanics' pencils. The suggested wording for the first part of the paragraph is: "Pencils of paper, wood, or other material, filled with lead or other material, and mechanics' pencils, * (2) The words "slate pencils" are not necessary if pencils in wood or paper are intended, since they would be included in the wording as it now stands.ˆ Îf slate pencils not in wood are intended, they should be so stated. It is suggested that slate pencils be included in paragraph 379. (3) In addition to rates on pencils, the statement suggests that there should be levied certain cumulative duties: Caps or protectors whether separate or attached to pencils, pencils prepared for caps or protectors, and pencils stamped with names other than the manufacturer's. Just what is meant by a name other than the manufacturer's is not stated, but it would appear to prohibit the use of trade names on pencils, substituting therefor the maker's name. Concrete evidence that such increases in duty are required is not available and has not been submitted upon request of the Tariff Commission by the Pencil Manufacturers' Association. (4) Substitute for paragraph 379: "Slate pencils not in wood, valorem; pencil leads, if colored or black, per ounce and valorem; copying per ounce and per centum ad valorem.' per centum ad per centum ad The argument presented by that association in support of a higher rate on pencil leads is that the duty on pencil leads ought to be increased in proportion to the duty on aniline, milori blue, vermilion, etc. The present rate on leads is 10 per cent ad valorem. The highest duty ever assessed on pencil leads was by the act of 1909 as follows: Black, three-fourths cent per ounce; colored, 14 cents per ounce; and copying, 2 cents per ounce. The specific duties of the act of 1909 were objected to on the ground that they resulted in an exorbitant equivalent ad valorem duty, many times the former duty of 10 per cent ad valorem, and that it was an attempt to stifle the pencil makers who imported their leads. Pencils and pencil leads-Imports by countries (fiscal years). Pencils and pencil leads (including slate pencils)—Total imports for consumption—Revenue. Pencil leads, not in wood or other material—Imports for consumption—Revenue.1 |