The Supreme Court has recognized the protective feature of our tariff acts and it is an avowed policy of our Government. If any industry is entitled to direct or incidental protection it must be one which is (1) new in this country, "an infant industry;" (2) desirable to be established; (3) susceptible of development here; and (4) handicapped by foreign competition.

We are such an industry, and our chief specialty depends for success on an adequate protection. A "world power" certainly ought to make its own stewpans, and they ought to be the very best. France is reputed to have the best cooks, but it is not so generally known to what extent the casserole has contributed to the excellence of the French cuisine.

During our experimental and earlier periods the importers kept the prices high, because it was thought we should not succeed in establishing the industry here. As soon, however, as we had solved the many technical problems and made a demonstration-of at least equal excellence the importing houses cut prices 25 per cent and we were hard hit just as our trade was opened up. We had worked to make a market and the foreigners seized it. Large domestic buyers, able to anticipate their needs, now buy abroad, and we must be content with supplemental and interval orders ("fill ins" and "short ends "). We can not further develop our business or even maintain our ground with no better support than this irregular and unreliable market. If we were placed on barely equal footing with the foreign competition, we should be satisfied with a mere even chance to supply the regular market which we have done so much to create. As things are now, our energies go largely into making and supporting a propaganda for a good article which is then supplied from abroad at a cut price to shut us out of our own market. If we are granted enough protection to equalize cost during one reasonable tariff period (and this would not at all increase the retail prices), we should be able to establish ourselves and so increase our facilities as to hold the market against all foreign competition. If we can but get a volume of business, we shall not need to, and shall not, advance our wholesale selling prices.

We accept the Government's theory that the protective element in the tariff should only equalize labor cost and the freight-rate differential favoring import shipments to domestic points and leave a fair, even modest, margin of profits.

As to profit, we neither have made nor are we now making any

at all.

We have risked nearly $100,000 of actual investment, and during several years of struggle we have had no return on our investment. Labor is the chief element in our production cost, being now in excess of 55 per cent, a substantial part of the balance being the cost of assembling other materials.

In employing labor and receiving apprentices we compete with the steel and iron industries, which pay high wages under ample protection.

We employ skilled labor, and are for the most part obliged to educate and train it.

Nothing but the disadvantage of our position in competition with the cheaper labor markets of Europe and the freight differential

favoring the importer prevents a rapid increase in the number of skilled laborers employed by us.

Presumably, the existing schedules took cognizance of the difference in labor cost between America and Europe, but the act of 1897 took the English wage scale as a basis. Our foreign competitors are primarily German, and the continental scale is recognizedly much lower than the English. The success of our industry in the United States is flatly conditioned on our ability to exclude German products, or at least have them admitted on an equal basis as to labor cost. England produces similar goods and, but for the keen German competition here, could doubtless undersell us, for the present schedules do not in fact adequately protect us even against the prevailing British labor scale.

Unless we are enabled to offer these higher wages (the tendency being upward) we can not man our factory and establish our industry against the foreign competition. We are paying about double the wages paid in our line in Great Britain, and about three times the wages paid in Germany. (See Daily Consular Report No. 3304, Oct. 14, 1908.)

To illustrate the way it works on three of the most popular shapes note the following:

Prices at New York City, importer paying transportation, duty, and packing, domestic maker paying freight and cost of package; duty, 55 per cent.

Saarguemines or Carmelite, imported from Germany:
Custard (Exhibit 4, C. A. P. Co.), per gross..
Pudding, No. 8, per gross__

Oval casserole, No. 5, dozen___.

(See Exhibit AAA, C. A. P. Co., pp. 1, 10, and 12.) Guernsey cooking ware, made in Cambridge, Ohio:

Custard, No. 2 (Exhibit 1, C. A. P. Co.), per gross..
Pudding, No. 2 (Exhibit 2, C. A. P. Co.), per gross.
Oval casserole, No. 94 (Exhibit 3, C. A. P. Co.), dozen__

(See Exhibit AA, pp. 2, 4, and 7.)

$5.40

9.00

6.25

7.131 11.62

7.731

This cut under our prices amounts to the following: Custards, $1.73 per gross, or 32 per cent. Puddings, $2.62 per gross, or 29 per cent. Casseroles, $1.48 per dozen, or 23 per cent. Over 20 per cent against us.

New definition and new rate.

The importance of adequate definition and the prevailing tendency to decide all ambiguities in favor of the importer make it necessary that our goods be specifically and accurately scheduled. Without such designation and description we are swept into a general classification of a lower grade to our great disadvantage. The articles being relatively new, there is no such established trade usage in the domestic market as would make it easy to distinguish our goods by mere name from other wares of the ordinary cheaper sorts. We are therefore entitled to a definite description of our specialty to supplement such trade names as are now in use. For a time we had to contend with an interpretation of the schedules which classed our products with common brown earthenware (sec. 94), and even now we are only temporarily saved by a more or less strained construction which places them in a miscellaneous group under section 96.

We respectfully suggest a new section or clause in words or effect as follows:

Carmelite, Saarguemines, Luxemburg, and like wares, including all glazed earthenwares of similar character, specially composed or prepared for the direct cooking and serving of food (ad valorem), 65 per cent.

With the importer paying 55 per cent ad valorem the handicap against us is still more than 20 per cent. We need equalization of not only the difference in labor cost, but of the freight differential also, both of which favor the importer. It is therefore evident that a duty of 65 per cent ad valorem is less than would be warranted, and yet it is all that we ask.

Respectfully submitted.

THE CAMBRIDGE ART POTTERY COMPANY, By CHARLES L. CASEY, President.

CAMBRIDGE ART POTTERY CO., CAMBRIDGE, OHIO, SUBMITS LETTERS RELATIVE TO FREIGHT RATES FOR CROCKERY.

Mr. WILLIAM K. PAYNE,

CAMBRIDGE, OHIO, January 12, 1909.

Clerk of Committee on Ways and Means,

House of Representatives, Washington, D. C.

MY DEAR SIR: Regarding the conversation the writer had with you about freight rates at the time he appeared before the Ways and Means Committee on November 23, we wish to say that we are inclosing herewith three copies of letters which we have received regarding freight rates on crockery and earthenware. If this information will be of any value to you, we are very glad that we have been able to favor you with the same.

For instance, we wish to call your attention to the freight rate on crockery from Philadelphia to Omaha in any quantities, either car lots or less car lots, being 42 cents per 100, while our rate from Cambridge to Omaha over the Pennsylvania lines in less car lots is 713 cents and in car lots 413 cents. There is a difference there in favor of Philadelphia of about 30 cents. We can not understand why this discrimination should be made.

And then, for instance, from Philadelphia to Kansas City in any quantities, either car lots or less car lots, 42 cents, while our rate from Cambridge to Kansas City over the Pennsylvania is 41 cents in car lots and 713 cents in less car lots.

Then, for instance, our rate from Cambridge to Salt Lake City by the Pennsylvania in car lots is $1.47, in less car lots $2.463, while from New York, Boston, Philadelphia, and Baltimore to Salt Lake City, ocean and rail, $1.46 car lots and $2.37 less car lots. Of course this rate applies to all that surrounding territory, and is discriminating against us considerably when it comes to placing our goods on the market.

We can give you further information regarding our local rates if you so wish them. This is about as much information as we have been able to gather up during the last three months regarding foreign and domestic rates. This discrimination in favor of the im

porter is quite an advantage in their favor when it comes to marketing their wares of similar manufacture to ours. We remain,

Yours, very truly,

THE CAMBRIDGE ART POTTERY CO.,
C. L. CASEY, President.

Mr. CHAS. L. CASEY,

EXHIBIT A.

JANUARY 2, 1909.

President of The Cambridge Art Pottery Co.,

Cambridge, Ohio.

MY DEAR CASEY: Our New York representative has secured the following rates, which I am pleased to hand you herewith for your information, and would be glad if you will advise us if the quotation is lacking in completeness.

The ocean rates on ordinary crockery in casks, hogsheads, or slatted boxes is as follows: From Hamburg and Antwerp to New York, $3 per c. m.; to Boston, 30 cents per 100 pounds; to Philadelphia, 30 cents per 100 pounds; to Baltimore, 30 cents per 100 pounds. These are all pool rates and constant.

From Liverpool to New York, no crockery moves that way; to Baltimore, Philadelphia, and Boston, 8 cents per 100 pounds. This rate can be shaded one-half cent to 1 cent per hundred pounds.

From Havre to New York, 20 francs per c. m.; to Boston, Baltimore, and Philadelphia, no service.

From Rotterdam to New York, $3 per c. m.; to Boston, no service; to Philadelphia, 30 cents per 100 pounds; to Baltimore, 18 cents per 100 pounds.

From New York, Boston, Philadelphia, or Baltimore to Seattle, per 100 pounds: Carload, 95 cents; less than carload, $1.50.

To San Francisco from New York, Philadelphia, and Baltimore, same as to Seattle.

From New York, Boston, Philadelphia, and Baltimore to Salt Lake, ocean and rail, $1.46 carload and $2.37 less than carload.

From New York, Boston, Philadelphia, and Baltimore to Denver, ocean and rail, 93 cents carload; $1.62 less than carloads.

All rail crockery, n. o. s., crates, boxes, tierces, barrels, casks, or hogshead, less than carloads, rule 26. Carload, 24,000 minimum, fifth class.

Rule 26, New York to Chicago, 40 cents per 100 pounds; New York to Mississippi River, 47 cents per 100 pounds.

Fifth class, New York to Chicago, 30 cents per 100 pounds; New York to Mississippi River, 35 cents per 100 pounds.

Western classification is as follows:

Chinaware and porcelain ware in boxes, barrels, kegs, casks, hogshead, tierces, less than carloads, first class; earthenware, barrels, boxes, or kegs, second class; in stave baskets with covers, second class; in barrels with cloth tops, first class; in bent-wood crockery crates or casks, third class. All of above in carloads, fifth class, minimum 24,000 pounds.

Crockery does not move from France. It is china from France, and all moves via New York.

DEAR SIR: Further with reference to rates on pottery. We have been quoted the following:

Crockery, Liverpool to Boston or Philadelphia, 8 cents per 100 pounds. Antwerp, Belgian, and French crockery to Boston, Philadelphia, or Baltimore, 22 cents per 100 pounds; earthenware to Boston, Philadelphia, or Baltimore, 25 cents per 100 pounds; German crockery and earthenware to Boston, Philadelphia, or Baltimore, 30 cents per 100 pounds; New York, $3 per cubic meter.

Please note our previous quotations should all be figured as hundred pounds rather than hundredweight, which I am advised is accounted at 112 pounds, instead of 100 pounds, in this country.

Yours, truly,

General Agent F. D.