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decided in my favor, giving me paragraph 96, with 55 per cent ad valorem.
Now, if you consider the position I am in to-day with this particular line of manufacture, you will understand it is a very close proposition, and my business depends pretty much on " fill-ins” and “short ends." Where a buyer can anticipate his wants by six months I am not in with the price by 30 per cent. During the past year, when the times were pretty close and where the domestic buyer did not anticipate his wants very far ahead, my business was pretty good; but if he could have anticipated his wants, my business would probably not have been so good.
I would like to have you consider me in this position, that I would like to have a place in the schedule where I would not be thrown into such a position that I would be confused with any other line of manufacture, and that I might be given a position that would classify me and specify my particular line in such a way that I would be distinctly classified, and where it would not be hard to identify me.
Mr. Griggs. What do you call that ware?
The CHAIRMAN. Would " Guernsey " cover that?
Mr. Casey. Yes, sir. There are lines being imported, such as Sarreguemine, Luxemburg, and others. Some other foreign factories and houses, as I understand, are manufacturing and importing similar lines.
The CHAIRMAN. You think that would be entirely safe to describe the article, so that they could not bring it in here by some German name?
Mr. Casey. I don't know. It might be brought in in that way. I know it has been imported as common brown earthenware, at 25 per cent duty.
Mr. DalZELL. You get 55 per cent now?
The CHAIRMAN. How long have you been getting 55 per cent duty ? Mr. Casey. Possibly two years. I can not remember exactly.
Mr. Griggs. You mean to say that you use the term Guernsey," and that covers all imitations that might compete with that?
Mr. Casey. I think it would be better to place the lines that compete with mine in that paragraph.
Mr. Griggs. Will you file a statement?
Mr. Casey. I will file a statement, yes, sir; if I can have that pleasure.
Mr. COCKRAN. I did not quite understand what you meant by saying you could not anticipate.
Mr. CASEY. In case the buyer should anticipate his wants for six months, in that way he could place his order abroad for his quantities that can be brought in, say, six months or four months later on. That is anticipating your wants.
Mr. COCKRAN. Did you develop that manufacture yourself?
Mr. CASEY. Yes, sir. I am the only one in this country who manufactures it successfully.
Mr. COCKRAN. Is it made in Germany?
Mr. COCKRAN. And all you want is a distinction in the paragraph such a distinction as will insure to you the existing rates of duty ?
Mr. CASEY. Yes, sir.
Mr. CASEY. I should imagine about $120,000 of it is used in this country, of which we are now supplying about $45,000 worth.
Mr. Pou. You do not want a reduction of the duty ?
The CHAIRMAN. What can the foreigner lay it down in New York for, duty paid?
Mr. CASEY. How is that?
The CHAIRMAN. At what price can the foreigner lay it down in New York, duty paid?
Mr. Casey. At from 10 to 20 per cent lower than I can.
THE CAMBRIDGE ART POTTERY COMPANY, OF CAMBRIDGE,
OHIO, ASKS THAT SPECIAL DESIGNATION BE MADE OF GUERNSEY COOKING WARE.
WASHINGTON, November 23, 1908. COMMITTEE ON WAYS AND MEANS,
Washington, D. C. GENTLEMEN: Our plant is at Cambridge, Guernsey County, Ohio, and is equipped to manufacture a general line of pottery. We have made and marketed several standard lines, but the present memorandum has reference especially to a distinctive line of earthenware cooking utensils made from Ohio clays and other domestic materials and which has been marketed and is now on sale under the name of Guernsey cooking ware. This line, a practical specialty as distinguished from the decorative and general lines, is essentially and originally a continental European product. Wares of this nature have as yet hardly become well known to the American trade, though used and latterly much improved in France, Germany, and Austria. Our factory is the only domestic competitor of very successful German producers and exporters.
It is to be noted as a special characteristic of our manufacture that, despite all modern advance in science and practical mechanics, the primitive potter's wheel still limits the production. Labor-saving machinery has little part in any improvements susceptible of introduction. We must hire trained men or train them to do most of the labor by hand. Our machine, the wheel, has a capacity which in all events is limited to the productive skill of the labor employed, and no improvement in device or plant can possibly eliminate the human hand or substantially increase the individual artisan's output. For this reason we can not hope to reduce the proportion of our labor cost below 55 per cent, and it is almost certain to become even larger. 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.
$5. 40 Pudding, No. 8, per gross.. Oval casserole, No. 5, dozen.
6. 25 (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_
7. 131 Pudding, No. 2 (Exhibit 2, C. A. P. Co.), per gross_
11. 62 Oval casserole, No. 94 (Exhibit 3, C. A. P. Co.), dozen..
7. 731 (See Exbibit AA, pp. 2, 4, and 7.) 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 nuiscellaneous 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
THE CAMBRIDGE ART POTTERY COMPANY,
CAMBRIDGE ART POTTERY CO., CAMBRIDGE, OHIO, SUBMITS
LETTERS RELATIVE TO FREIGHT RATES FOR CROCKERY.
CAMBRIDGE, Ohio, January 12, 1909.
House of Representatives, Washington, D. C.
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 711 cents and in car lots 411 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 411 cents in car lots and 714 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 $2.464, 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